• Finding the Path to Operational Excellence at ZENI

    The forestry industry unit (UFI) of ZENI, an important business area that carried out its own felling operation and featured high levels of investment in timber processing equipment and technology was run by one of the Founder son Patricio Zeni. Despite strong growth in recent years, UFI's profitability had gradually declined, partly due to the domestic economic situation which was marked by cost increases as a consequence of inflation between 15% to 20% annually, with an almost fixed exchange rate and, partly because the industry was becoming more globally competitive, prices in the USA market were set by two major competitors. Although internal operations seemed to run smoothly, General Manager of UFI -Patricio- was sure that better results in terms of profits could be achieved with more accurate diagnosis especially focus in production balance. The case explores whether UFI should implement a pull-based production planning system to improve company commercial performance and meet future demand or a push-based production system to maximize operational efficiency. Also, the case looks into the feasibility of implementing a control and monitoring system with operational indicators to reduce production problems. Finally, the case introduces the concern about the current organizational structure and how to reorganize the planning management function, possibly turning it into an independent area.
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  • Rethinking Distribution Logistics at VASA, Pilkington

    By 2008, this rapid growth, compounded by limited installed glass manufacturing capacity at regional levels, had caused local supply shortages. Over the last several years, VASA's progressively deteriorating service had damaged its former reputation for excellent service. The case explores how to reverse a disappointing delivery service that led to angry customers complaining about unfulfilled orders, late deliveries, and accusations from transportation companies that held VASA responsible for these delays. Also these accusations resulted in deterioration in relationships with transportation companies that had done business with VASA for more than 25 years. VASA's CEO, evaluated the following options to recover its reputation: 1) take total control of distribution to customers by developing a VASA-owned delivery service; 2) reverse the situation with transportation companies by requiring them to develop delivery service management capabilities; or 3) replace these transportation companies, partially or totally, with more sophisticated logistic service providers.
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  • Ophthalmic Consultants of Boston and Dr. Bradford J. Shingleton (2004)

    Dr. Bradford Shingleton has developed some of the highest quality eye surgery techniques in the industry. He involves his nurses and technicians in creating a surgical service that is constantly improving. The case has many details about how Dr. Shingleton works with his staff and patients, and how the provider team focuses on patient care. A key measure of productivity for the surgery center is the time required in the operating room. Shingleton's numbers are impressive as they decrease each year. The business context relates to the particular patients, mostly require cataract or glaucoma surgery and the payer is Medicare/Medicaid, which regulates the price. Yearly decreasing prices make it more difficult for doctors to earn a good income unless they improve their productivity. Other surgeons in the practice do not copy Dr. Shingleton's practices nor use his trained surgical team. The dilemma relates to why his methods do not spread to other doctors and other clinics.
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