OXO, a kitchen tools and gadgets company, was started by a businessman who had 30 years of experience in the housewares industry. With his wife and son as founders, he creates a new niche in the gadgets industry for high-end gourmet stores. The company has headquarters in New York City, but it outsources product design to a NYC industrial design firm, manufacturing to Asia, and warehousing to a site in Connecticut in order to manage start-up costs and growth. Because of the veteran businessman's reputation and industry sense, the company grows quickly and in 1992 is sold for $6.2 million to a large housewares distributor, General Housewares. The original owners stay on as consultants to the parent company and decide to turn over management of the company to a Harvard MBA who also has extensive industrial design experience. Innovative product design is the key to OXO's success, and the company has worked exclusively with one design firm based on royalties of sold products. The new managing director initiates new product category programs for the bathroom, the garden, and home baking. He must coordinate the outsourcing of the design and development function.
Two recent MBA graduates acquire a small and ailing metal-machining company that had manufactured small aerospace components. Through clever application of state-of-the-art manufacturing, engineering, and marketing/sales concepts, they turned the company into a growing and profitable business. The owners must now decide what new business opportunities to undertake given that they have achieved market share leadership in their niche.
Documents two problems in the product development process of Northern Telecom's new Greenwich key systems product line. These problems are due to the conflicting goals of the marketing, design, and manufacturing groups in the product development team. A rewritten version of an earlier case.
In 1995, Toshiba was the market leader in portable computer sales worldwide. This case describes the assembly of portable notebook computers in Toshiba's Ome factory in Ome, Japan, providing insights into some of the reasons for Toshiba's success. In addition to describing production techniques such as dynamic line balancing, this case probes the nature of the Japanese workforce and the unique problems faced by Japanese businesses.
Pratt & Whitney is a leader in the development and manufacturing of gas turbine engines for commercial and military aircraft. Economic conditions for the airline and defense industries are forcing the airplane engine builders to restructure. Ed Northern, a new general manager of one of Pratt & Whitney's largest plants, is determined to transform the North Haven plant into a world-class manufacturing organization.
As part of the restructuring effort underway at the Pratt & Whitney North Haven plant, Ed Northern and a group of Japanese consultants are transforming the manufacturing process from a batch process to a single-piece flow, and are organizing the machines and workers in product cells. Vane Cell 6 is the first cell to be created at North Haven. Business Unit Manager Garrett Mikits is faced with a challenge as the creation of Vane Cell 6 nears completion. A new order, which represents a large volume increase, challenges Mikita and his workers to find a way to increase production.
As part of the Pratt & Whitney North Haven restructuring effort, Ed Northern and his business unit managers are encouraging workers to make decisions and take an active role in improving the manufacturing process at North Haven. Business Unit Manager Tom Hutton has empowered a group of hourly workers to purchase grit blast equipment for two cells. The capital purchase decision runs into some problems when the two cells, the vapor coat and pack coat cells, fail to reach an agreement about which equipment to purchase.
Because of conflicts between the vapor coat and pack coat cells over the decision to purchase new grit blast equipment, Business Unit Manager Tom Hutton has decided to form a second capital purchase team that will represent the pack coat cell. Meanwhile, the first capital purchase team has decided to purchase MacCormick equipment, traditionally considered less reliable than other equipment. Hutton is having misgivings about his decision to empower workers to purchase equipment, and wonders whether he should approve the purchase.
Mike Ennis, general manager of Northern Telecom's Business Products Division, recommends a new solution for replacing Vantage, an unsuccessful product for Northern Telecom. The case documents in detail the voice of the customer. Students are required to discuss the merits of Ennis's proposal.
The Executive Shirt Co. is contemplating a move into custom-made shirts. The company's general manager has charged two of his managers to come up with plans for incorporating production of custom shirts into the existing manufacturing process.