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GE is considering introducing a "just-in-time" production system to reduce inventory in its thermocouple manufacturing area. The case presents students with a description of the present inventory management system, the production process, and the perspectives of different individuals in the plant. The issue is how GE should proceed with introducing this system.

A multi-year study of production operations of virtually all the producers of room air conditioners in the United States and in Japan reveals a failure rate of products from the lowest quality manufacturers some 500 to 1000 times greater than that of products from the highest quality manufacturers. Quality is measured by the incidence of internal and external failures. Internal failures include all defects observed, either during fabrication or along the assembly line, before the product leaves the factory. External failures include all problems incurred in the field after the unit has been installed. Measured by either criterion, Japanese companies were far superior to the U.S. counterparts.

Management has the power and the responsibility to achieve a high-quality product by improving the manufacturing process. Managers can distinguish between normal and abnormal variation statistically by constructing a control chart that shows the process average and the upper and lower control limits. Top management should stop expecting inspection to solve the quality problem; stop awarding business to the lowest bidder; eliminate targets, numerical goals, slogans, and posters that urge people who lack the power to make changes to increase productivity; eliminate work quotas; and institute training programs in statistics for managers and supervisors.

Threats of resource depletion and raw materials scarcity, political turbulence and government intervention in supply markets, intensified competition, and accelerating technological change can upset supply and demand patterns suddenly. Companies must shift their perspective from purchasing (an operating function) to supply management (a strategic one) to ensure continued supply of materials. Companies must integrate purchasing with other elements of the business system.

Introduction to basic notions of EDQ, reorder points, periodic review systems, and ABC Analysis.

Two competitors in the Northeast steel service center industry have made very different choices with regards to logistics and operating strategy. One distributes from a large central location; the other operates seven widely scattered warehouses. Students can diagnose and discuss the significant impacts of these choices, especially in an economic downturn.

Ellis finds itself in a weakening competitive position largely due to the lack of rationalization in its plants. Driven by a strong traditionally decentralized sales organization, Ellis finds that all plants want control over all product lines. As a result, overall economics of scale are not achieved, and duplication of resources has weakened Ellis' cost position. Case gives enough data for students to make specific recommendations.

Martin Trailers Limited, which has grown rapidly, produces a line of camping trailers, which have a pronounced seasonal sales pattern. Details for the previous year's planning process, staffing levels, production outputs and costs are reviewed by the owner, with the objective of improving the management of materials in the year ahead. Sufficient information is available to perform a quantitative analysis of the aggregate planning decision and its relationship to material requirements planning.

The plant manager for Noram Foods was considering the impact of changing Noram's policy on package weight. Noram Foods in Canada had an enviable record of sound financial performance, although there had been a period of declining profits when the Canadian economy suffered under conditions of high unemployment, high interest rates, and high inflation. Leo Marsden believed the weight control issue represented a major opportunity for re-evaluation and increased performance.

On August 20, 1982, Leo Marsden, plant manager for Noram Foods of Toronto, Ontario, was considering the impact of changing Noram's policy on package weight. Noram Foods in Canada has an enviable record of sound financial performance, although the 1981-82 period had seen declining profits as the Canadian economy as a whole was suffering under conditions of high unemployment, high interest rates, and high inflation. Leo Marsden believed the weight control issue represented a major opportunity for reevaluation and increased performance.

Considers whether Steinway should reintroduce a long-discontinued product line to meet competition from the Japanese. Raises the issue of just how quality is defined in this market. Looks closely at a production process relying on craft skills. Students have the opportunity to consider issues of quality.

Provides a general introduction to the major types of production processes, their differences, and the implications that those differences have for management.

Provides some hints and tips to students who encounter difficulty in performing quantitative analyses of case studies. Describes how to approach the numbers and suggests devices they can use to overcome their problems.

Contrary to popular opinion, the secret of Japanese manufacturing success lies not in the use of futuristic techniques but in an emphasis on manufacturing basics. First-hand observation of six Japanese companies reveals that the Japanese direct special attention to several areas: maintenance of an orderly workspace, minimization of inventory, solution of problems before they reach the plant floor, prevention of machine overload, the use of comprehensive equipment monitoring and early warning systems, and creation of a no-crisis atmosphere. Japanese managers achieve high quality by regarding all problems as important. McKinsey Award Winner.

Spreadsheet supplement for case 681095.

Describes the decision faced by a rapidly growing firm in the merchandise security systems business on whether it should integrate backward into the injection molding of plastic parts. Financial analysis, comparative economics, and manufacturing strategy in an industry with rapid technological change are all important elements in the analysis.

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.

Designed to introduce the systemic nature of product quality and the complexity of quality problems. Uses a new director, quality assurance, and the discovery of a quality problem. The new director has to decide if it is a real problem, what to do about it, and how to go about orienting an organization toward a better quality attitude.

Describes the operating system of McDonald's, the world's most successful fast food chain. The case does not have a decision focus; it is designed for use with Burger King Corp. Students are asked to compare the operating systems of these two fast food hamburger chains. Careful analysis will detect the subtle and not so subtle differences between the two operating systems selected by these two firms.

Describes the operating system of a Burger King unit. The case does not have a decision focus; it is designed for use with McDonald's Corp. Students are asked to compare the operating systems of these two fast food hamburger chains. Careful analysis will detect the subtle and not so subtle differences between the two operating systems selected by these two firms.