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CRP Products
Bruce Ballantyne had recently joined CRP Products (CRP) of Stratford, Ontario, to help review the company's operations and assess what changes were necessary to keep up with demand. Although it was early 2011, and the peak season was still four months away, Ballantyne knew that he would have to determine what equipment was needed over the next three weeks to ensure it was delivered and installed before the peak season. Jamie Bailey, the owner of CRP, had also concluded that CRP did not have the financing available for both the new equipment needed to make its unique design of outdoor furniture and the seasonal working capital required to support inventory and accounts receivable. He had turned to Ballantyne to develop a solution that would keep up with demand, keep inventory low and work within the available financing. -
Uncle Coco's Magic Shop: A Negotiation Exercise
A toy retailer plans to order a new product from an untested supplier for the winter holiday season. This exercise provides an opportunity for students to construct a model to determine optimal order quantity when demand is not known. Profits are calculated based on wholesale pricing, revenue-sharing, profit-sharing, and buyback contracts. -
Lowell General Physician Hospital Organization
This case focuses on the Alternative Quality Contract (AQC), a novel payment program designed to incentivize providers to deliver less costly, high quality health care. Under the AQC, offered by Blue Cross Blue Shield of Massachusetts, providers received a fixed-dollar budget to cover all care provided to a specific patient population, as well as incentive payments for quality. The AQC was piloted in 2009 by a handful of provider organizations, including a group of physicians belonging to the Lowell General Physician Hospital Organization (LGPHO). The case describes the LGPHO physicians' experience during their first two years under the AQC, allowing students to assess the group's performance as well as potential challenges in the remaining three years of the contract and future contracts and the AQC's value as part of the solution to untenably high U.S. health care costs. -
Managing Inventories: The Newsvendor Model
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Shanghai Interior Automotive Door System: Running a Manufacturing Operation in China
Shanghai Inteva Automotive Door System Co. Ltd (formerly Shanghai Delphi) was a leading player in China's automotive component industry with a 30%market share. Nonetheless, between 2007 and 2009, it failed to meet its profit targets for three consecutive years. A number of factors contributed to this failure, some internal and some associated with the challenges of working in an emerging economy. If Shanghai Inteva is to stay competitive, it has to start making its targets. -
Supply Chain Management at International Automotive
Paul Salinas had just finished moving into his new office in Reynosa, Mexico. He closed the door and sat down, taking a moment to remember how his career had started with International Automotive Company. As he was finishing his engineering studies, Salinas had received a job opportunity as a trainee in the summer of 1995. That was in the company's Querétaro plant, in his hometown. This initial position as an administrative assistant was not necessarily exciting but he held on, knowing there was great potential for him to build his career within the company. During this time, Salinas was trained internally (six months of initial training followed by several specific training sessions per year) and sent to the company's headquarters in Germany before spending some time in the plant in Detroit as well. In Germany, he received a six months long training, which was followed by annual training sessions that lasted several weeks each time. Training in Detroit took places about three times a year, and lasted a few weeks at a time as well. He was familiarized with the technical and business aspects of running a manufacturing plant as he moved from promotion to promotion, and had held the position of operations manager for five years in Querétaro before moving to Reynosa. Apart from his remarkable career track, Salinas had the advantage of speaking Spanish, English and German. All of these qualities made him the perfect candidate to rebuild the entire supply chain in the plant that the company had just acquired from Motor Company II in Reynosa, Mexico in 2009. -
Supply Chain Management at International Automotive
In 2008, International Automotive Company (IAC), a German manufacturer of automotive parts, acquired a plant in Reynosa, Mexico. This plant produced various types of motors for power windows, heating, ventilating, air conditioning, and wipers. At the time of acquisition, the plant was showing record losses. Because the acquisition was internally financed, it was crucial to make the plant profitable quickly. After conducting a deep analysis, the company discovered that a lack of proper management in the supply chain system was leading to a large amount of wasted resources. As a result, managers looked for opportunities to save money and facilitate improvements mainly in areas such as packaging, warehousing, and transportation. One of the greatest obstacles involved IAC’s employees, who were falling short in terms of knowledge and motivation. -
Digital Extremes Ltd.
In March 2005, the president of Digital Extremes in London, Ontario, had just received the latest industry data. The new Xbox 360 was a success and the president knew that Digital Extremes would have to add significant resources and fundamentally change its operations in order to focus on the growing console market rather than on PC gaming. However, given only three months before game development would begin for the next new console, the Playstation 3, the president was unsure of what changes would be possible. -
Digital Extremes Ltd.
In March 2005, the president of Digital Extremes in London, Ontario, had just received the latest industry data. The new Xbox 360 was a success and the president knew that Digital Extremes would have to add significant resources and fundamentally change its operations in order to focus on the growing console market rather than on PC gaming. However, given only three months before game development would begin for the next new console, the PS3, the president was unsure of what changes would be possible. -
A Project Dilemma at Canadian Shield Insurance
In market-leading firms, software development was often undertaken by an in-house team to address specific IS needs - in part because nothing that fit these specific needs was commercially available. These projects often ended up taking longer than planned and exceeding ever-growing budgets. In this case, in-house software development was finally nearing completion (over budget and behind schedule) and the beta testing phase, along with some initial 'train-the-trainer' sessions, had begun. Not all the first impressions were positive, so when the director became aware of a recently introduced commercial offering that seemed like a very attractive alternative he faced a dilemma: should he abandon the developed project, which amounted to five years of work and over $1 million for a system that may be a better option? The protagonist in the case had done a preliminary functional comparison of the in-house information system and the commercial offering; he recognized that the new alternative might have held some significant advantages for the firm. The potential negative implications for his career and the careers of the people he worked alongside during the development project caused him to think about whether or not he should be informing others within the firm about the commercial alternative and, if he did, what position he should take. -
Total's Carbon Capture and Storage Project at LACQ (A): Risk Opportunity in Public Engagement
This case series outlines the strategic choices facing Jean-Michel Gires, Total E&P France's (TEPF) VP sustainable development, in designing and implementing a community engagement strategy. Case A begins with the approval of a pilot Carbon Capture and Storage (CCS) system at TEPF's Lacq facility in France, and outlines the strategic context for the community engagement process. Case B is positioned three years later as the CCS plant comes online, and Gires looks back at the successes and failures of the completed community engagement strategy. The case includes a range of issues impacting the decision-making context, including: the role of CCS in mitigating climate change; an outline of CCS technology; TEPF's climate change strategy; the history of TEPF's operations in the Lacq gasfield, and interactions with local communities; the E.U. climate change regulatory environment (including carbon pricing and CCS) and CCS regulatory uncertainty in France. -
Total's Carbon Capture and Storage Project at LACQ (B): Gaining Public Acceptance of New Technology
This case series outlines the strategic choices facing Jean-Michel Gires, Total E&P France's (TEPF) VP sustainable development, in designing and implementing a community engagement strategy. Case A begins with the approval of a pilot Carbon Capture and Storage (CCS) system at TEPF's Lacq facility in France, and outlines the strategic context for the community engagement process. Case B is positioned three years later as the CCS plant comes online, and Gires looks back at the successes and failures of the completed community engagement strategy. The case includes a range of issues impacting the decision-making context, including: the role of CCS in mitigating climate change; an outline of CCS technology; TEPF's climate change strategy; the history of TEPF's operations in the Lacq gasfield, and interactions with local communities; the E.U. climate change regulatory environment (including carbon pricing and CCS) and CCS regulatory uncertainty in France. -
Total’s Carbon Capture and Storage Project at LACQ (A): Risk Opportunity in Public Engagement
This case series outlines the strategic choices facing Jean-Michel Gires, Total E&P France’s (TEPF) vice president of sustainable development, in designing and implementing a community engagement strategy. Case (A) begins with the approval of a pilot carbon capture and storage (CCS) system at TEPF’s Lacq facility in France, and outlines the strategic context for the community engagement process. Case (B) is positioned three years later.<br><br>The case includes a range of issues impacting the decision-making context, including the role of CCS in mitigating climate change; an outline of CCS technology; TEPF’s climate change strategy; the history of TEPF’s operations in the Lacq gas field, and interactions with local communities; the E.U. climate change regulatory environment (including carbon pricing and CCS); and CCS regulatory uncertainty in France. -
Total’s Carbon Capture and Storage Project at LACQ (B): Gaining Public Acceptance of New Technology
This case is a supplement to Total’s Carbon Capture and Storage Project at LACQ (A). -
Improving Customer Engagement
Bill Casey had a suspicion the sporting goods chain he managed was losing sales because of inconsistent customer service. To quantify customer engagement issues, Casey decided to work with a start-up that analyzed interactions between customers and employees based on security video footage. While Casey realized that statistical process control is used in manufacturing and engineering to identify variation in a process, he wondered if the method would work for a retail business. In this case students learn how statistical process control studies are built and applied, and consider Casey's analysis to determine how his business might improve its customer engagement, as well as the risks in implementing the methodology. -
Improving Customer Engagement, Spreadsheet Supplement
Spreadsheet supplement for case CU224. -
Husk Power Systems: Scaling Up a Start-Up
Husk Power Systems (HPS) provides technologies that generate and distribute electrical power to rural villages in India. Since 2007, HPS has installed 60 mini power plants that power 25,000 households in more than 250 villages, impacting the lives of approximately 150,000 people in rural India. This case details the operational and strategic challenges associated with scaling up HPS, and provides details related to technology development, suppliers, operational capabilities, costs, and market adoption. -
CRP Products
Bruce Ballantyne had recently joined C.R.P. Products (CRP), a furniture manufacturer in Stratford, Ontario, to help review the company’s operations and assess what changes were necessary to keep up with demand. Although it was early 2011 and the peak season was still four months away, Ballantyne knew that he would have to determine what equipment was needed over the next three weeks to ensure it was delivered and installed before the peak season. Jamie Bailey, the owner of CRP, had also concluded that CRP did not have the financing available for both the new equipment needed to make its unique design of outdoor furniture and the seasonal working capital required to support inventory and accounts receivable. He had turned to Ballantyne to develop a solution that would keep up with demand, keep inventory low, and work within the available financing. -
The United States Air Force and IBM: Transformation Through Partnership
A partner in the public sector operations strategy practice of International Business Machines Corporation (IBM) must prepare for a briefing for United States Air Force (USAF) senior leadership proposing ways for the USAF to recognize significant cost savings and continuous process improvements in its Financial Services offices (FSO). Presently, each of the approximately 100 USAF bases around the world has its own local FSO that provides pay and travel processing and customer support. Similar processes are performed at each location. Staffing and quality assurance are managed locally, and legacy systems have been modified over time in response to local preferences. The IBM team has collected a vast amount of base-level process data and conducted focus groups with USAF financial management leadership, FSO personnel, and FSO customers; the partner's team must analyze the Current State and deliver a comprehensive set of cost savings' recommendations to maintain the current level of services proficiency. -
Fleet Sales Pricing at Fjord Motor
While Fjord Motor Company (a fictitious company) has been successful in fleet sales, winning almost 70 of its 4,000 bids each year, the company has become concerned about inconsistent and inaccurate bidding. Worried that its fleet sales staff hasn't maximized profits on its Coronet Elizabeth, the model favored by police departments and corporate fleets, Fjord hires a consultant to examine its pricing data. In this case students are asked to develop pricing strategies by creating a two-parameter logistic model and to consider how additional factors, such as the size of an order, affects pricing.