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This technical note defines and provides example calculations for certain process analysis concepts-capacity, bottleneck, cycle time, throughput time, Little's Law-relating inventory, throughput time, and throughput rate.

This case presents an operating challenge: how does an organization sustain the initial progress achieved through its new quality-improvement system. Nurses and other clinical staff feel that the culture does not support the acknowledgment of mistakes, and the operations manager is trying to ascertain whether this "blame-game" environment is the cause of the improvement slowdown or whether there are other factors. Students are asked to apply systems-thinking tools to reveal their hypotheses of the causes of the improvement problem and to create a stock-flow map of the system structure. A systems-dynamics model can be used in class or as a preparation assignment. The simulation model enables students to develop a deeper understanding of the systems-dynamics behavior. The subsequent cases in the series UV3506 and UV3507; UV3508 is an abridgment of the A, B, and C cases) provide students with opportunities to practice the quantification of systems relationships (dominated by soft variables) and to develop a simulation model.

The B case provides information that permits students to quantify the human-factor relationships that may be causing some of the improvement slowdown outlined in the A case (UV3505) and to develop a systems-dynamics simulation model. The C case (UV3507) provides students with additional opportunities to practice the quantification of systems relationships (dominated by soft variables) and to develop a simulation model. See also the D case (UV3508), an abridgment of the A, B, and C cases).

This case presents a firsthand account of a flying experience on Southwest Airlines in June 2004. The narrative reports on the cross-country flying experience of one passenger. See also "Marlene's Marvelous Adventure: JetBlue Airways" (UV0126).

This technical note describes a technique, F(X) Cascade, for determining the potential benefits of implementing a six-sigma improvement project. An integral part of the "define" stage in the DMAIC methodology is quantifying the sources of costs of defects and variability. The F(X) Cascade is one structured approach to this analysis.

For five weeks, Michael "Mac" Ling had been at the Lexington, Virginia, plant of Darden Motor Works (DMW), interviewing production supervisors, quality experts, maintenance supervisors, and repair personnel. He was investigating a puzzling problem: how dirt was infiltrating the paint on trucks assembled at the facility--and how to stop it. Small particles were causing a big, and expensive, problem. Nearly one out of three trucks had to be reworked owing to dirty paint, at a cost of a few dollars to a few hundred dollars per vehicle. The student must develop some hypotheses regarding the causes of the problems.

This story offers students the opportunity to practice systems thinking, including the analysis of behavior over time graphs, the application of systems archetypes, and the design of system interventions.

The San Francisco Symphony (SFS) is a major U.S. orchestra that took on ancillary activities as part of its mission to bring the best in music to the Bay Area. Despite increasing costs, SFS posted surpluses for 15 consecutive years. However, by the end of 1993, SFS faced a shift in its financial fortunes: forecasts indicated annual budget shortfalls of $25 million in total deficits by the end of the 1999-2000 season. In 1994, SFS had just signed a "superstar" music director to lead SFS into the 21st century whose ambitions for the orchestra were boundless. Students will step into the role of an executive committee member attending a strategy retreat to develop a strategy for SFS that balances its financial needs and its artistic commitments and aspirations. Key issues for a financial plan and supporting operations are: 1) relationships with orchestra musicians and their union contract, 2) buyers' capacity for accepting continued increases in ticket prices, 3) the likelihood of substantial increases in annual contributions, 4) local responses to changes in the orchestra's community activities, and 5) the new music director's expectations for support of his artistic aspirations.

Spreadsheet supplement for case SM63.

Examines the strategic position of Rambus, Inc. The company designs, develops, and licenses high-speed chip connection technology to enhance the performance and cost-effectiveness of computers, consumer electronics, and communication systems. The company's technology is integrated into dynamic random access memory (DRAM) chips and the logic devices that control them. Because Rambus did not manufacture chips, it was directly influenced by chip suppliers (such as Intel), who controlled the price and supply of DRAM chips and stood between Rambus and the OEMs that used these chips. A further complication for Rambus stemmed from the company's involvement in several costly legal battles with much larger competitors over the ownership of prevailing DRAM standards. Looks at the challenges facing Rambus in 2001 as it seeks to balance its interests with those of its business partners (including an increasingly strained relationship with its major partner, Intel) while maintaining a technological lead over its competitors and defending its intellectual property from legal attacks.

Many of the pioneers of Internet business, both dot-coms and established companies, have competed in ways that violate nearly every precept of good strategy. Rather than focus on profits, they have chased customers indiscriminately through discounting, channel incentives, and advertising. Rather than concentrate on delivering value that earns an attractive price from customers, they have pursued indirect revenues such as advertising and click-through fees. Rather than make trade-offs, they have rushed to offer every conceivable product or service. It did not have to be this way--and it does not have to be in the future. When it comes to reinforcing a distinctive strategy, Michael Porter argues, the Internet provides a better technological platform than previous generations of IT. Gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy. Porter argues that, contrary to recent thought, the Internet is not disruptive to most existing industries and established companies. It rarely nullifies important sources of competitive advantage in an industry; it often makes them even more valuable. And as all companies embrace Internet technology, the Internet itself will be neutralized as a source of advantage. Robust competitive advantages will arise instead from traditional strengths such as unique products, proprietary content, and distinctive physical activities. Internet technology may be able to fortify those advantages, but it is unlikely to supplant them.

Despite all that's been written about mergers and acquisitions, even the experts know surprisingly little about them. The author recently headed up a year-long study sponsored by Harvard Business School on the subject of M&A activity. In-depth findings will emerge over the next few years, but the research has already revealed some interesting results. Most intriguing is the notion that, although academics, consultants, and businesspeople lump M&As together, they represent very different strategic activities. Acquisitions occur for the following reasons: to deal with overcapacity through consolidation in mature industries; to roll up competitors in geographically fragmented industries; to extend into new products and markets; as a substitute for R&D; and to exploit eroding industry boundaries by inventing an industry. The author explores each type of M&A--its strategic intent and the integration challenges created by that intent. He underscores the importance of the acquiring company's assessment of the acquired group's culture. Depending on the type of M&A, approaches to the culture in place must vary, as will the level to which culture interferes with integration. He draws from the experiences of such companies as Cisco, Viacom, and BancOne to exemplify the different kinds of M&As.

A revolution in pricing is occurring, courtesy of the Internet. Scott McNealy, CEO of Sun Microsystems, discusses how new pricing models are making the supply chain more efficient by providing rich information and driving down costs. Get ready for the demise of the price list.

Since Blockbuster began sharing rental revenues with its suppliers, both parties have seen increased profits. The authors say revenue sharing will work for many products and services.

Before taking competitive action, managers must anticipate the actions of their competitors. This can only be accomplished by performing thorough competitor analysis.

ICICI was the first Indian company to be listed on the New York Stock Exchange. This case is set in 1998, when the company had to decide whether to enter the retail credit segment of the Indian financial market. Although the retail credit sector presents attractive growth opportunities, ICICI lacked many of the capabilities needed to succeed in this space and would have to compete against a host of established domestic and foreign banks. Describes how ICICI, under the visionary leadership of K.V. Kamath, has transformed itself, against all odds, from a development financial institution into a commercially competitive organization.

The management of PlanetFeedback in proposes a merger with Intelliseek. Their goal is to create a comprehensive C2B and B2B business focused on the generation and analysis for business clients of consumer feedback data via the Internet, Planet Feedback's board of directors insists that management decide between two basic business strategies: corporate customer service and market analysis support or information generation and analysis.

Outlines the events leading up to the Sega's launch of its 32-bit console named Saturn.

Tells the story of Nintendo's revival of the home video game industry in the mid-1980s and its dominance of the market in the late 1980s and early 1990s. Strategic issues addressed include the creation of value by sparking dormant demand and the capture of value relative to other players in the industry including competitors, buyers, suppliers, and complementors. This is part of a case series examining the competitive dynamics in the home video game industry from 1970 into the new millennium. A rewritten version of an earlier case.

Tells the story of the rise and fall of Atari Corp., the dominant player in arcade and home video games in the 1970s and early 1980s. During this period, Atari grew from a $500 initial investment into a $2 billion in revenues per year enterprise, becoming the fastest growing company in the history of the United States. The wild ride came to a crashing halt in 1983, however, when the bottom dropped out of the video game market, partly as a result of Atari's actions (or inaction). This is part of a case series examining the competitive dynamics in the home video game industry from 1970 into the new millennium. A rewritten version of an earlier case.