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Vitreon Corp.: The Hyalite Project
Considers decisions facing the leader of a manufacturing staff project team assigned to a plant where yields have deteriorated sharply. The process is complex: the plant organization is not cooperative, and there are deep disagreements about what is wrong and how to fix it. Provides an opportunity to analyze yields and productivity, as well as the organizational and personal challenges inherent in line-staff interaction. -
Understanding the Dynamics of Value-Driven Variety Management
This is an MIT Sloan Management Review article. As businesses add more and more products to their portfolios, they face diminishing returns on variety and greater costs in bringing their products to market. As a result, managers must balance the costs and benefits of variety in determining their product lineups. The authors worked with a wide range of businesses and discovered that a widespread approach, whereby low-volume products are cut first, is often ineffective. As an alternative, the authors discuss five critical lessons for maximizing the value and effectiveness of variety management, and present a process for making value-driven variety management successful. First, all products are not created equal. Both complexity costs and benefits may vary considerably for different types of product variants. Second, be exhaustive. The impact on any one cost area may be insignificant. It is the compound effect of the impact that creates the complexity monster. Third, take a return on investment view. A business case for adding variety should consider impact of both one-time and recurring costs over the whole product life cycle and balance this against the incremental benefits over the product life cycle. Fourth, tailor the variety-management strategy to the type of complexity cost. Fifth, reduce product complexity costs without reducing product complexity. -
World Wide Technology and ClearOrbit: Enabling Supply Chain Collaboration
Covers inter-firm, IT-enabled supply chain collaboration and focuses on supplier-manufacturer collaboration. To assess collaboration from a holistic point of view, the case describes the distinct role played by the various parties involved in the collaborative effort: the manufacturer and its supply base, as well as a consulting firm, a supply chain process outsourcing company, and a software provider. Centers on the two latter companies--World Wide Technology (WWT), a $2 billion supply chain process outsourcing company based in St. Louis, and ClearOrbit, a rapidly growing software company based in Austin, Texas. Presents the story of a world-class automotive original equipment manufacturer (OEM) whose purchasing operations for maintenance, repair, and operations material had grown complex, costly, and error prone. In mid-2004, WWT, along with a consulting firm, proposed an outsourcing program to the OEM: the consulting firm would perform strategic sourcing and WWT would manage the entire fulfillment cycle. A critical feature of this program was that it would be collaborative. Early on in the program, however, it became apparent to WWT that delivering on the collaborative requirements of the program demanded the aid of specialized technological capabilities. WWT decided to partner with ClearOrbit, a company that had recently developed an Internet-based solution for companies to manage POs, deliveries, and invoices with a supply base regardless of size and technological resources available at each supplier. Describes the challenges of design, implementation, and growth of the program. -
Yo Wear, Inc.
A Charlottesville-based manufacturer of "kooky" active-wear clothing must decide whether to outsource some of its shirts to a manufacturer in Hong Kong. While providing lower costs, the supplier reduces Yo Wear's flexibility to respond to changes in demand volume. Students must determine the relevant costs of sourcing in Hong Kong and making to order in house. A newsvendor-type model is required to determine the optimal order size from Hong Kong. -
Shad Process Flow Design (A)
Provides detailed instructions to prepare for factory demonstration day. A rewritten version of an earlier exercise. -
Wilkins, A Zurn Company: Aggregate Production Planning
The general manager of the Wilkins plant in Paso Robles, California has received instructions from the head office to reduce inventory by 30% in the next quarter. Although inventory had been accumulating over the past years, this had been seen as a benefit to the company for a couple of reasons. One is that the cost of raw materials has risen in the past year. The second is that the company has a policy of no layoffs, so having inventory in stock allows the company to minimize the use of overtime and temporary workers. The general manager wondered whether revising the production planning process would be enough to solve Wilkins' inventory problems. -
Procurement as Strategy
Procurement has increasingly become central to companies' strategies--and even drives innovation. -
Fleet Forum: Rethinking Humanitarian Vehicle Management
Fleet Management is the second largest spending in the humanitarian sector, preceded by staffing. Aware of the fact and concerned for the increased need for efficiency, a group of humanitarian professionals manage to raise awareness in their community and bring to the discussion table the members of the different organizations concerned. The turnout is unexpected, the willingness to improve is high, yet the challenge remains how to bring about change in a sector that is so fragemented, without control or command, and where fleet management has long been viewed as the job of those people "with grease under their nails". -
Bang & Olufsen: Design Driven Innovation
A successful company, recognized worldwide for exquisite design of consumer electronics products, strives to better integrate software design into its traditional physical product design processes to meet the demands of a post-iPod world. Details the Bang & Olufsen "design driven innovation" process, that works very differently than many companies' product development processes, but allows this company to produce very high profit margin products that retain their margins for a very long time in an industry in which products come and go very quickly. The case helps students understand processes and practices that support the creation of highly differentiated products. It also deals with issues of change in an already successful context, and of managing highly creative staff who are vital to a company's business model. -
Istituto Clinico Humanitas (C): Pronto Soccorso
Follows on from the cases Istituto Clinico Humanitas (A) and (B). Describes the design and running of the new Humanitas Emergency Department. Istituto Clinico Humanitas has developed a very efficient operating system for dealing with elective (largely surgical) patients. By opening an emergency room, however, the institution is now called upon to care for complex and highly variable medical patients. Asks if the previous operating system is appropriate for this new patient population and in what ways might it require modification to meet these patients' unique needs. The concept of hospital-within-a-hospital is central to Humnitas' new design, and the case examines if this is feasible in this setting. -
Summerwood Outdoors Inc.
The head of logistics has received a number of customer complaints regarding various aspects of the company's product delivery policy. She must decide what can be done to increase customer satisfaction with its pricing, delivery service and customer relations. The head of logistics is not sure if it's a problem with communications or internal problems with the delivery process. She will have to assess customer feedback and examine the sales process. -
RSM Richter LLP
The human resources manager of the Toronto office of RSM Richter LLP, reflected upon the company's efforts and outcomes in relation to recruiting junior accountants from the Richard Ivey School of Business at The University of Western Ontario. Although Richter had similar salary and benefits to those of the Big Four accounting firms, it offered a unique environment in which employees were able to get to know one another personally and junior accountants were likely to become exposed to different aspects of auditing that they would not encounter in larger firms. Yet, Ivey students seemed more likely to accept offers from one of the Big Four. The human resources manager considered various alternatives. -
Boman Communications
The owner and founder of Boman Communications, was proud of the company's business concept which utilized technology to allow flexibility and efficiency in the production of marketing materials. However, despite this strategic advantage, the company had been unable to attract more than one large client. More importantly, recent events had led the owner to believe that many of his own employees did not understand the company's business concept. If they did not understand the company's business concept, how could they sell it to customers? Bowman knew he had to address these issues soon but was unsure how to do so. -
Wilkins, A Zurn Company: Demand Forecasting
The newly promoted inventory manager wonders if there is an easier, more reliable means of forecasting the sales demand. Currently forecasts are based on the plant manager, sales/marketing manager and inventory manager's knowledge of industry trends, competitive strategies and sales history. He must decide if using statistical forecasting methods would ease the forecasting process and make the forecast more reliable. Students are exposed to different forecasting techniques, including executive opinion, linear regression and time series. The data characteristics include seasonality, trend and random fluctuations. -
Technology Adoption in Developing Countries: The Case of Pakistan State Oil
The managing director of Pakistan State Oil (PSO) must oversee the most significant transformation in the company's 29-year history, from a lumbering bureaucracy-laden state enterprise to the most technologically sophisticated oil marketing company in Pakistan. The company had recently embarked on a New Vision marketing program, which included loyalty cards, a 24 hour toll-free customer relations line, and renovated state-of-the-art service stations replete with convenience stores and Internet kiosks. However, at the time of the case, only about one in four service stations had been renovated under the New Vision program. A more recent proposal involved automating the company's retail outlets by linking online tracking of fuel deliveries to retail outlets, where specially designed sensors could monitor gasoline inventory and automatically place orders when stocks were low. Retail automation would allow PSO to know its exact inventory at any given time and thereby more efficiently manage its supply chain and logistics. To keep capital expenditure costs within limits, the managing director must decide whether or not to invest in retail automation or expand the company's New Vision program. At the same time, deregulation of Pakistan's oil industry was expected to result in increased levels of competition. -
Mozilla Foundation: Launching Firefox 1.0 (A)
Explores the Mozilla Foundation's decisions leading up to the launch of Firefox 1.0, including its default browser, managing corporate partnerships, managing product development, and moving toward a revenue-based model. Mitchell Baker, president of the Mozilla Foundation, is faced with a crucial question in the impending hours of the Firefox 1.0 launch. Firefox, the reincarnation of the Netscape Mozilla browser, has had tremendous success despite Mozilla's loss of the Browser Wars to Internet Explorer years before. After AOL acquired Netscape, the Mozilla team had been unsure of their future, but they recently gained their independence with a new independent, nonprofit foundation. What partners should Firefox include as their default search partners? Should this relationship be commercial? -
Mozilla Foundation: Launching Firefox 1.0 (B)
An abstract is not available for this product. -
Role and Relevance of Refocused Inventory: Supply Chain Management Solutions
Practitioners and academics continue to note that there is no shortage of inventory in many, if not most, supply chains. Rather, the historical notion holds true: the right product is not in the right place at the right time to meet demand. For positive supply chain performance, it is necessary to re-address inventory's role and relevance with respect to the development, maintenance, and control of product flows. Suggests that examining such flows from a three-fold perspective can provide a framework to assess efforts to achieve lowest total cost and meet customer service expectations. -
Unaxis (A): Going Asia
Unaxis Data Storage, a branch of a large European high tech company, is facing a difficult choice. Since most of its customer base is in Asia, the management has to come up with a solution to manufacture some of its products in Asia and generate some cost saving. Yet, the company wants to keep control of its supply chain and its intellectual property. -
Unaxis (B): Going Asia
Unaxis Data Storage, a branch of a large European high tech company, is facing a difficult choice. Since most of its customer base is in Asia, the management has to come up with a solution to manufacture some of its product in Asia and generate some cost saving. Yet, the company wants to keep control of its supply chain and its intellectual property.