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The director of Camp Lakeview, an organization affiliated with a religious group was reviewing the camp's operations. Although it had been successful over the past four years, the enterprise was reaching a capacity crossroads. The director realized that changes were required to avoid having to turn campers away. The director was considering three options: adding new facilities and cabins to the current campground, building a new campground nearby or sending some campers to an alternative facility. The magnitude of the potential changes required a decision soon if they were to be in place before the camp season arrived.

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Considers whether New Balance, one of the world's five largest manufacturers of athletic footwear, should respond to Adidas' planned acquisition of Reebok--a transaction that would join the second- and third-largest companies in the industry. Highlights the unique aspects of New Balance's strategy--focusing on fit and performance by offering long-lived shoes in a wide variety of widths and eschewing celebrity endorsement of its products--and discusses New Balance's operations decisions to support that strategy. These include significant use of domestic manufacturing at a time when nearly all other competitors sourced finished shoes from Asian suppliers and an emphasis on improving inventory management for its network of small and large retailers. Set just after the announcement of the Adidas-Reebok transaction in 2005, with New Balance having recently initiated a companywide effort to improve operational performance through the application of concepts from lean manufacturing and the Toyota Production System. Asks students to consider whether New Balance should change aspects of its operations strategy in light of the consolidation among its competitors or whether the Adidas-Reebok transaction represents an opportunity for New Balance to emphasize the importance of moving forward with its current approach.

Tom Jenkins, manager of the filling line for Amore Frozen Foods' beef-noodle-casserole product, must determine the proper fill rate and production rate for three filling machines. An on-line simulation requires the student to perform a number of tests using statistical design of experiments to determine the proper allocation of product to machine and the optimal settings for each machine.

Considers whether BYD Co., Ltd., the largest Chinese maker of rechargeable batteries, should enter the Chinese automobile industry by acquiring Qinchuan Auto, a state-owned car manufacturer. Set just after BYD's initial public offering on the Hong Kong Stock Exchange in 2002, it describes the development of BYD's labor-intensive approach to battery manufacturing--an approach decidedly different from its more capital-intensive Japanese competitors and one that took advantage of the abundant supply of low-cost labor in China. Highlights the unique benefits and challenges created by BYD's operations strategy and asks students to determine whether the capabilities developed by the company in battery manufacturing can productively be applied to the automobile sector. Asks students to consider which, if any, aspects of BYD's operations constitute sources of sustainable competitive advantage for the company.

This case (1834.0 and related epilogue 1834.1 and abridged case 1834.3) tells the story of Major General David Petraeus and the US Army's 101st Airborne Division in the months following the March 2003 invasion of Iraq, the fall of Baghdad, and collapse of Saddam Hussein's government. Having completed their combat mission, and with just a few days notice, the 101st is ordered to Mosul, Iraq's third largest city and the capital of Nineveh province. Their orders were spare - get up to Mosul and Nineveh Province and get things under control. The case details the development and implementation of the 101st strategy to bring stability to Mosul and the surrounding area and provides insight into General David Petraeus and his approach to leadership. While set in a military organization in wartime, the case is not about military operations. Petraeus and his division, with little notice or preparation, undertake traditionally civilian tasks associated with reconstruction and governance. HKS Case Number 1834.0

This case (1834.0 and related epilogue 1834.1 and abridged case 1834.3) tells the story of Major General David Petraeus and the US Army's 101st Airborne Division in the months following the March 2003 invasion of Iraq, the fall of Baghdad, and collapse of Saddam Hussein's government. Having completed their combat mission, and with just a few days notice, the 101st is ordered to Mosul, Iraq's third largest city and the capital of Nineveh province. Their orders were spare - get up to Mosul and Nineveh Province and get things under control. The case details the development and implementation of the 101st strategy to bring stability to Mosul and the surrounding area and provides insight into General David Petraeus and his approach to leadership. While set in a military organization in wartime, the case is not about military operations. Petraeus and his division, with little notice or preparation, undertake traditionally civilian tasks associated with reconstruction and governance. HKS Case Number 1834.0

The owner/operator of a tanning salon is reviewing recommendations from a tanning distribution consultant regarding the business he had recently purchased. The owner knew that the salon needed improvements when he purchased it, but he was unsure how he wanted to proceed in doing so. The tanning consultant had presented the owner with a number of options. The owner must decide if he wants to simply upgrade the current tanning equipment or purchase new units. Students will be introduced to operational issues in service business, and will understand the importance of considering customer needs when purchasing new equipment in a service business. They will also perform a trade-off analysis based on qualitative and quantitive factors.

This brief note describes the kanban system of inventory control. It discusses the rules for its use, techniques for calculating the number of cards, and the difference between push and pull systems.

Spreadsheet for case UV1448

A significant part of the long-term economic growth in developed economies depends on the translation of scientific research into new products and processes. Focuses on the front end of this value creation stream. The laboratory of George Whitesides has a 30-year history of outstanding chemistry research as reflected by the quality and quantity of journal papers, paper citations, successful graduates, breakthrough ideas and concepts, and new companies. Details the research philosophy and processes for selecting research problems and forming teams. Whitesides guides students to choose challenging research topics rather than safe, incremental research, and problems that require interdisciplinary teams. Allows discussion of: the principles for operating a creative and productive lab; the role of the leader in creating the infrastructure and systems for discovery and learning; the issues of resource allocation and the appurtenant wasted effort as researchers seek academic research support; and the scale and scope limits for highly successful labs. Also discusses applying the Whitesides lab principles and processes to nonscience organizations and teams.

The first in a three-part series on Competitive Cost Analysis, this note provides an introduction to cost drivers and a conceptual framework for thinking about the different types. It also provides some general guidance on developing cost models.

Greg Jamison, the head of global sourcing at USTech, has a complicated situation on his hands. The U.S. consumer electronics giant has long outsourced much of the design and production of its branded offerings to TaiSource, an original design manufacturer, or ODM, in Taiwan. TaiSource, in turn, has moved most of its manufacturing to Beijing, giving USTech many of the cost benefits--and none of the hassles--of sourcing in China. But commodity producers are squeezing USTech's margins, and higher end rivals are gaining market share, forcing the company to rethink its sales strategy in China and its relationship with TaiSource. Greg values the close bond his firm has forged with the ODM, but he knows the sole-source model has become an anomaly in the industry. And other USTech executives want to explore direct sourcing in China and learn about other Taiwanese ODMs, known for their high quality. When Greg hires a longtime TaiSource employee to get a feel for the fast-growing China market and scout out other suppliers in China and Taiwan, relations between the two companies start to fray. Moreover, there are signs that TaiSource plans to market its own branded goods in China. Will TaiSource and USTech end up as competitors? How can USTech protect its relationship with TaiSource while it explores sourcing and sales opportunities in Asia? Commenting on this fictional case study in R0603A and R0603Z are Bruce K. Riggs, the senior vice-president for operations and customer care at Gateway in Irvine, California; Barry C. Lynn, a senior fellow at the New America Foundation in Washington, D.C.; Wang Dongsheng, the chairman and CEO of BOE Technology Group in Beijing; and Paul Gaffney, the executive vice-president for supply chain at Staples in Framingham, Massachusetts.

Greg Jamison, the head of global sourcing at USTech, has a complicated situation on his hands. The U.S. consumer electronics giant has long outsourced much of the design and production of its branded offerings to TaiSource, an original design manufacturer, or ODM, in Taiwan. TaiSource, in turn, has moved most of its manufacturing to Beijing, giving USTech many of the cost benefits--and none of the hassles--of sourcing in China. But commodity producers are squeezing USTech's margins, and higher end rivals are gaining market share, forcing the company to rethink its sales strategy in China and its relationship with TaiSource. Greg values the close bond his firm has forged with the ODM, but he knows the sole-source model has become an anomaly in the industry. And other USTech executives want to explore direct sourcing in China and learn about other Taiwanese ODMs, known for their high quality. When Greg hires a longtime TaiSource employee to get a feel for the fast-growing China market and scout out other suppliers in China and Taiwan, relations between the two companies start to fray. Moreover, there are signs that TaiSource plans to market its own branded goods in China. Will TaiSource and USTech end up as competitors? How can USTech protect its relationship with TaiSource while it explores sourcing and sales opportunities in Asia? Commenting on this fictional case study in R0603A and R0603Z are Bruce K. Riggs, the senior vice-president for operations and customer care at Gateway in Irvine, California; Barry C. Lynn, a senior fellow at the New America Foundation in Washington, D.C.; Wang Dongsheng, the chairman and CEO of BOE Technology Group in Beijing; and Paul Gaffney, the executive vice-president for supply chain at Staples in Framingham, Massachusetts.

Greg Jamison, the head of global sourcing at USTech, has a complicated situation on his hands. The U.S. consumer electronics giant has long outsourced much of the design and production of its branded offerings to TaiSource, an original design manufacturer, or ODM, in Taiwan. TaiSource, in turn, has moved most of its manufacturing to Beijing, giving USTech many of the cost benefits--and none of the hassles--of sourcing in China. But commodity producers are squeezing USTech's margins, and higher end rivals are gaining market share, forcing the company to rethink its sales strategy in China and its relationship with TaiSource. Greg values the close bond his firm has forged with the ODM, but he knows the sole-source model has become an anomaly in the industry. And other USTech executives want to explore direct sourcing in China and learn about other Taiwanese ODMs, known for their high quality. When Greg hires a longtime TaiSource employee to get a feel for the fast-growing China market and scout out other suppliers in China and Taiwan, relations between the two companies start to fray. Moreover, there are signs that TaiSource plans to market its own branded goods in China. Will TaiSource and USTech end up as competitors? How can USTech protect its relationship with TaiSource while it explores sourcing and sales opportunities in Asia? Commenting on this fictional case study in R0603A and R0603Z are Bruce K. Riggs, the senior vice-president for operations and customer care at Gateway in Irvine, California; Barry C. Lynn, a senior fellow at the New America Foundation in Washington, D.C.; Wang Dongsheng, the chairman and CEO of BOE Technology Group in Beijing; and Paul Gaffney, the executive vice-president for supply chain at Staples in Framingham, Massachusetts.

In 2005, Erez Meltzer, the president and CEO of Netafim (the world's leading manufacturer of drip irrigation equipment), was wondering whether Netafim's supply chain was strong enough to support the change in strategy he was planning for the company: migrating from selling products to selling solutions. When Meltzer stepped into office three years earlier, the company was struggling with flat sales, an out-of-date supply chain, and no global synergies. In just three years, Meltzer turned around the company, restructured its supply chain, and reinvigorated its growth. The question was whether the newly restructured supply chain would support the new strategy--one that would require new supply chain-related competencies from the organization.

Lianhua Supermarket Holdings Co., Ltd. was a modern-day legend in China. Starting with 41 stores in 1995 and reporting a loss of 5 million Renminbi, it had grown into the largest chain store conglomerate in China by the end of 2004. This success was attributed to its adoption of IT applications. However, with China's accession to the World Trade Organization and the subsequent entry of a large number of international players, the competitive landscape is changing. Compared with global leaders, Lianhua still lags behind in terms of profitability and management. Once more, IT applications are playing a critical role in helping Lianhua to meet the new challenges and retain its market leadership position in China.

Brandon Fogg must solve two seemingly unrelated problems in his management of creative R&D professionals. First, despite having hired brilliant research professionals, his firm is having problems commercializing their ideas. Second, his most brilliant engineer has invented a breakthrough, but refuses to assign the intellectual property to the firm, despite having agreed to do so in his employment contract. Fogg must choose from a variety of options, including prosecution of a noncompete agreement.

This case allows course participants to use a graphical simulation tool to explore several key factors that lead to customer response delays in service systems. A high-level discussion can then ensue on process flow management, including tools like segmentation, process standardization and scheduling, and resource utilization planning. The case requires the ProModel simulation software tool (not included, to be purchased separately), and computer simulation input files (available free from the author's website: http://faculty.insead.edu/stephen-chick/simulations ).