Harvard Business School Publishing Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge (Wiley, 2004) Harvard Business School Publishing 800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]www.hbsp.harvard.edu/educators This case map is unusual in that many of the cases were suggested by the textbook authors; other cases (designated “*”) were identified by an experienced editor at HBS Publishing. Faculty at Harvard Business School were not involved in analyzing the textbook or selected the cases. Every case map provides only a partial list of relevant items from HBS Publishing. To explore alternatives, or for more information on the cases listed below, visit: www.hbsp.harvard.edu/educators Case Title Institution, HBSP Product Number, Length, Teaching Note Geographical and Industry Setting, Company Size, Time Frame Abstract Chapter 1 Operations Management Confronts a New Millennium Mass Production and the Beginnings of Scientific Management HBS 391255 17p N/A Examines the coming of mass production (continuous and large-batch processes and those involving fabricating and assembling of interchangeable parts), and relates the beginnings of modern factory management to the needs and opportunities created by the new technology. Besides focusing on the interrelation of technology and management, it examines issues created by the responses of management and labor to the new machines and methods. Subjects: Automation; Business history; Labor relations; Management of change; Manufacturing; Production planning; Technological change Chapter 2 Operations Strategy: Origins and New Directions Southwest Airlines--1993 (A) HBS 694023 29p B case available Dallas, TX; airlines; 1993 Southwest Airlines, the only major U.S. airline to be profitable in 1992, makes a decision as to which of two new cities to open, or to add a new long-haul route. Provides windows into Southwest's strategy, operations, marketing, and culture. Teaching Purpose: Illustrates how an airline can simultaneously be low-cost leader, service leader, and profit leader. Subjects: Airlines; Corporate strategy; Operations research; Service management Australian Paper Manufacturers (A) HBS 691041 22p Australia; pulp and paper; $500 million; 1987 Describes a company which has broken an unwritten cordial agreement amongst the three Australian paper manufacturers to split the
Transcript
Harvard Business School Publishing
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
This case map is unusual in that many of the cases were suggested by the textbook authors; other cases (designated “*”) were identified by an experienced editor at HBS Publishing. Faculty at Harvard Business School were not involved in analyzing the textbook or selected the cases. Every case map provides only a partial list of relevant items from HBS Publishing. To explore alternatives, or for more information on the cases listed below, visit: www.hbsp.harvard.edu/educators Case Title Institution,
HBSP Product Number, Length,
Teaching Note
Geographical and Industry Setting, Company Size, Time Frame
Abstract
Chapter 1 Operations Management Confronts a New Millennium
Mass Production and the Beginnings of Scientific Management
HBS 391255 17p
N/A Examines the coming of mass production (continuous and large-batch processes and those involving fabricating and assembling of interchangeable parts), and relates the beginnings of modern factory management to the needs and opportunities created by the new technology. Besides focusing on the interrelation of technology and management, it examines issues created by the responses of management and labor to the new machines and methods. Subjects: Automation; Business history; Labor relations; Management of change; Manufacturing; Production planning; Technological change
Chapter 2 Operations Strategy: Origins and New Directions
Southwest Airlines--1993 (A)
HBS 694023 29p B case available
Dallas, TX; airlines; 1993 Southwest Airlines, the only major U.S. airline to be profitable in 1992, makes a decision as to which of two new cities to open, or to add a new long-haul route. Provides windows into Southwest's strategy, operations, marketing, and culture. Teaching Purpose: Illustrates how an airline can simultaneously be low-cost leader, service leader, and profit leader. Subjects: Airlines; Corporate strategy; Operations research; Service management
Australian Paper Manufacturers (A)
HBS 691041 22p
Australia; pulp and paper; $500 million; 1987
Describes a company which has broken an unwritten cordial agreement amongst the three Australian paper manufacturers to split the
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
B case available TN 692026
domestic market three ways by market segment. The company invades another's "territory" with advanced technology, quality, and, importantly, by using the other company's poor environmental record to protect itself against retaliation. The defender finds itself unable to respond by adding capacity as public pressure denies it the ability to add capacity and upgrade the technology. Having won a large share of the market, and having successfully introduced a new recycled paper product, the invader is now considering the financial, strategic, and ethical issues of further expansion. Subjects: Australia; Environmental protection; Ethics; Manufacturing strategy; Operations management; Paper industry; Pollution; Technological change
Crown Equipment Corp.: Design Services Strategy
Design Manage- Ment Institute 991031 18p B case available TN 696042
Ohio; industrial products, machinery & equipment; $450 million revenues; 1957-1989
Chronicles three decades of a forklift truck company's industrial design strategy. Having grown rapidly from a small, pioneering niche-company to a leading, full-range, global producer, Crown is reevaluating its design services strategy. Discusses the company's long-term relationship with its design consultants and the pros and cons of establishing an in-house design department at this point in its history. Students need to decide whether Crown should opt for in-house design services, stay with its former design consultants, or look for new consultants. Subjects: Centralization; Corporate strategy; Design management; Industrial goods; Industrial markets; Machinery; Organizational structure; Product design; Service management
Wal-Mart Stores, Inc.
HBS 794024 22 TN 395225
US; retailing; $68 billion; 1994
Focuses on the evolution of Wal-Mart's remarkably successful discount operations and describes the company's more recent attempts to diversify into other businesses. The company has entered the warehouse club industry with its Sam's Clubs and the grocery business with its Supercenters, a combination supermarket and discount store. Wal-Mart experienced a drop in the value of its stock price in early 1993, which it still has not made up. Teaching Purpose: Explores the issue of sustaining competitive advantage. Wal-Mart has advantages over its competitors in areas such as distribution, information technology, and merchandising, to name a few. How sustainable are these, and what
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
are the threats to Wal-Mart's continued success? Subjects: Competition; Discount department stores; Industry structure; Retailing; Strategy formulation; Strategy implementation
American Connector Co. (A)
HBS 693035 18p B case available TN 695014
California and Japan; electrical connectors; $800 million revenues; 1991
American Connector Co. is forced to reexamine operations at its Sunnyvale plant when a Japanese competitor announces plans to build an "ultimate" plant in the United States. Case examines issues related to benchmarking a competitor's manufacturing capabilities and productivity. Allows students to compare two companies' manufacturing strategies and their implications for productivity and flexibility. Subjects: Competition; Electronics; Manufacturing strategy; Plant management; Productivity
Allegheny Ludlum Steel Corp. (Abridged)
HBS 695023 21p TN 695055
Pittsburgh, PA; steel; $800 million; 1984
Describes a decision facing Allegheny Ludlum Steel Corp. in June 1985: whether to continue to compete in the silicon steel business in the face of stiff competition from imports. Includes a complete description of the company's productivity improvement systems and procedures (its chief competitive strengths) and shows how they have become a tool for steady and continuous improvement. Subjects: Capacity planning; Continuous improvement; Imports; Japan; Operations management; Productivity; Steel
*Engineering Inspection & Insurance Co.
HBS 695009 11p TN 696050
US; insurance; $65 million revenues; 1991
Engineering Inspection & Insurance Co. (EIIC) is a small but highly successful company that offers machinery and boiler inspection and insurance services. After years of above-average growth and profits, both are retreating toward the industry average, policy delivery times are excessive, and employee morale is low. There is increasing concern that the company's current strategy and organization are no longer working. The problem appears to be that, while the company initially was organized to provide inspection and insurance services for complex equipment, most of its premium revenue in 1991 comes from relatively simple, low-premium objects for which inspection probably is unnecessary. Reconciling the conflicting demands of these two types of businesses with the company's existing structure and value system is the essential issue. Teaching Purpose: To illustrate the basic operations strategy framework in the context of a service company,
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
and to engage students in a discussion of the advantages and disadvantages of different methods for refocusing operations. Subjects: Branches; Insurance; Interdepartmental relations; Interpersonal relations; Organizational design; Organizational problems
*Lincoln Electric Co
HBS 376028 30p TN 395230
Cleveland, OH; welding; $275 revenues; 1975
Covers the strategy and management practices of the world’s largest manufacturer of welding equipment. Discusses the compensation system and company culture, and the leadership style of management. Subjects: Bonuses; Business policy; Corporate culture; Corporate strategy; Electric industries; Incentives; Management styles; Values
United States, Mexico, Pakistan; medical products; $50 million revenues; 1,000 employees; 2001
Align Technology is a four-year-old medical products company that has invented a new product that requires new manufacturing processes. Demand for the new product has grown more slowly than initial forecasts predicted, and the cost structure is preventing the company from becoming profitable. The manufacturing process involves six different operations, located in California, Pakistan, and Mexico. The first dilemma requires downsizing the capacity until the demand grows. Increasing capacity in the future requires consideration of the time lags, costs, and incremental units of added capacity inherent in each of the six processes. Given the uncertainty of accurate sales forecasts as the company carries out new marketing initiatives, the manufacturing organization has been challenged to create a capacity plan to meet demand while lowering its fixed costs. Teaching Purpose: Analyzing and planning production capacity for a multiprocess and multilocation operation. Subjects: Business process, Capacity planning, Equipment, Manufacturing, medical supplies, Mexico, Middle East, Operations management, Pharmaceuticals industry, Process analysis, Production planning, Technology
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
Alden Products, Inc.: European Manufacturing
HBS 697099 11p TN 699122
Europe, Holland; personal care products; $500 million revenues; 1989
The European organization of Alden Products, Inc. is contemplating a doubling of unit sales over the next ten years. Their largest plant, located in Holland, was set up 25 years earlier to supply all demands of the EEC countries on the continent. It has since expanded six times. Should it expand again? Should it build a new plant in Southern Europe? Or should it increase subcontracting? Subjects: Capacity planning; Consumer goods; Europe; Expansion; Location of industry; Manufacturing strategy
Unicon Concrete Products (H.K.) Ltd.
Ivey School/ UWO 98D006 15p TN 898D06
Hong Kong; concrete; 1997
Unicon supplies pre-cast concrete products to the flourishing construction market in Hong Kong. Mr. Li, the deputy managing director, is evaluating an opportunity to pursue a "blanket" regulatory approval for Unicon's custom-designed concrete products with its largest customer, the Hong Kong Housing Authority. This opportunity promised to offer cost savings to both Unicon and this customer, although questions remain about the broader implications for Unicon's manufacturing operations and other customers. At the same time, management must develop a plan to expand its manufacturing capacity if Unicon hopes to capitalize on the rapidly expanding market and fend off new competitors from mainland China. Subjects: Building materials industry; Capacity planning; International business; Manufacturing strategy; Product life cycle; Regulation; Southeast Asia
Samsung Heavy Industries: The Koje Shipyard
HBS 695032 16p TN 697102
Korea, shipbuilding, 1994 Describes the steps taken by Samsung Shipbuilding to develop its manufacturing capabilities using externally developed technologies. Having assimilated those technologies, it is now faced with a huge capacity expansion, in the form of a 1-million-ton dry dock, that threatens to overwhelm its systems and managerial methods. Teaching Purpose: Explores issues related to manufacturing improvement and “Murphy’s Law”—the phenomenon of performance falling after major capital addition in manufacturing. Subjects: Capacity planning; Facilities; Korea; Manufacturing; Shipbuilding
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
Chapter 4 Determining Organizational Boundaries Vallourec’s Venture into Metal Injection Molding
HBS 697001 18p TN 698002
France; metal injection molding (steel); $40 million revenues; 150 employees; 1991-1995
Vallourec, a leading maker of seamless tubing, developed a radically new technology that used steel powders to create the tubes. To ensure a supply source, Vallourec ultimately had to acquire its supplier of metal powder, and then, to build the volume required to reduce its cost, Vallourec had to create other markets for its powders. One of these was the injection molding of powdered metal parts. Vallourec first sought licensees for its process, and finding none, had to integrate into making molded parts themselves. The case describes how Vallourec developed its technology and then built a business to explain it. Teaching Purpose: To help students learn how to think about the question of whether they can outsource certain pieces of the puzzle when managing innovation, or whether they will need to perform the activity in-house. Subjects: Diversification, Europe, France, General management, Industry analysis, Innovation, Intangible assets, Licensing, Management of change, Manufacturing industry, Metals, Organizational structure, Technological change, Technology, Vertical integration.
Nucleon is a small biotechnology company whose first potential product is about to enter clinical testing. Before Nucleon can begin clinical trials, however, its management must decide how and where to manufacture the product. Three options are being contemplated: 1) build an in-house pilot plant, 2) contract production to a third-party, 3) license the development, manufacturing, and marketing rights to a corporate partner. Allows discussion of a number of manufacturing strategy issues relevant to R&D-intensive entrepreneurial firms. A key issue is the strategic value of in-house manufacturing to a company who competes largely on very distinctive and specialized R&D capabilities. Subjects: Biotechnology, Entrepreneurship, High technology, Industry analysis, Intangible assets, Licensing, Manufacturing strategy, Organizational structure, Vertical integration.
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
Tombow Pencil Co. Ltd.
HBS 692011 20p TN 693027
Tokyo, Japan; writing instruments; mid-size; $116 million revenues; 600 employees; 1991
Tombow Pencil Co. Ltd., one of Japan's two premier pencil manufacturers, has been using a subcontractor network. The system faces a new challenge as Tombow moves to address a volatile business market for promotional pencils: an expanding market demanding novel products, short delivery lead time, and large quantities. To overcome growing stockouts and inventory problems, the company's new president must evaluate the performance of Tombow's subcontractor-based production system and formulate a plan of action. Introduces students to the subcontractor-based production system, a system prevalent in certain parts of the world outside the United States, and allows them to analyze its performance for simple products with which they are all familiar. The analysis poses profound questions about ways to manage the system more effectively. Subjects: Asia, Control systems, Industry analysis, Japan, Operations management, Organizational structure, Product lines, Product management, Production controls, Suppliers, Vertical integration.
Dell Computers: Field Service for Corporate Clients
HBS 603067 13p
US; computer hardware; $31 billion revenues; 2002
Explores the PC and low-end server manufacturer's entry into the large-scale server market in the US. A key difference of this new market is the intense service element required to support the larger hardware; the industry standard is to have a technician on site with the required part within four hours of problem diagnosis. This type of service presents a problem for Dell as its potential customers are widely dispersed around the US. The dilemma is whether Dell should create an in-house field service team or outsource the service to a third-party provider. Complicating the issue is the presence of IBM as the largest and most highly regarded third-party provider of field services. If Dell were to outsource field service, it would have to choose between providing the best service to its customers and protecting itself by not outsourcing to a direct competitor. Teaching Purpose: Provides an opportunity to explore the role of actual customer contact in the overall customer relationship. A framework is developed that considers how and under what circumstances a third party can be inserted
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
between the firm and its customers. Subjects: Customer relations; Outsourcing; Personal computers; Service management; Technology
Supplier Management at Sun Microsystems (A): Managing the Supplier Relationship
Stanford GSB OIT16A 17p B case available
Silicon Valley, CA; computers; Fortune 500; $6 billion revenues; 1995
Sun’s strategy is to identify 2-3 key leading edge differentiators for its products and standardized elsewhere, leading it to outsource the bulk of its manufacturing. Issues surrounding this strategy include: 1) selecting responsibilities within the purchasing function; 2) organizing and assigning responsibilities within the purchasing function; 3) developing long-term relationships with suppliers; and 4) developing management tools that appropriately motivate suppliers. In particular, the “Scorecard” that Sun uses as a supplier management took is presented. Subjects: Competitive strategy, Computer industry, Corporate strategy, High technology, Industry analysis, Manufacturing industry, Operations management, Organizational structure, Partnerships, Purchasing, Silicon Valley, Strategy formulation, Suppliers, Vertical integration.
*Intel-Ped (A)
HBS 693056 22p B case: 693057 TN 696006
Global; semiconductors; $4.8 billion; 1985-92
Describes Intel Corp.'s changing strategy for selecting and developing process equipment in the context of rapidly changing technology, intense competition, increasing cost of semiconductor manufacturing equipment, and a supplier base that is largely overseas. The evolution of a centralized process equipment development department is examined. The equipment selection process is followed through the selection of a supplier and system to meet the next generation of process technology at Intel. Provides an opportunity for analysis of the impact of short technology life cycles in a technology-intensive, process-based manufacturing environment. Permits analysis of the process and equipment strategy of a leading IC manufacturer. The issues of centralization of process equipment development activities and equipment selection methodology can be examined. The pros and cons of a single-supplier versus a multiple-supplier scenario can be discussed. Subjects: Electronics; Manufacturing strategy; Semiconductors; Sourcing; Suppliers; Technological change
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
*Intel Corp.--1968-97
HBS 797137 26p TN 699032
US; semiconductors; 1968-97
Traces Intel's history and strategy from 1968 to 1997. Examines the company's decision to exit DRAMS and its entry into microprocessors. Focuses on how the company managed to achieve and sustain its competitive advantage in microprocessors, and the threats it faces in the future. Teaching Purpose: Introduction to competitive strategy, industry analysis, and competitive dynamics. Subjects: Competition; Computer industry; Semiconductors; Strategic planning
*Discovering the Future: R&D Strategy at Merck
HBS 603137 18p TN 603137
US; pharmaceuticals; $18 billion revenues; 2000
Given explosive growth in technologies for drug discovery, how does Merck remain competitive in an industry that is fragmented and continues to consolidate? Teaching Purpose: Provides insight into how R&D strategy is developed at a major pharmaceutical firm. Subjects: Outsourcing; Pharmaceuticals; Product development; Research & development
Chapter 5 Designing and Managing Operating Networks Copeland Corp.: Evolution of a Manufacturing Strategy--1975-82 (A)
HBS 686088 20p B, C, and D cases available TN 688074
Ohio, N. Carolina, Alabama, Indiana; compressor manufacturing; 1975-1982
Describes the evolution of a company's manufacturing strategy over an eight-year period. Copeland had pursued a strategy of building freestanding focused plants devoted to single processes or product lines, and then moving products from the home plant at Sidney, Ohio to the new facility. Sidney is now left with a jumble of unrelated products and processes, and management must decide whether it should be reorganized by product line or manufacturing processes. HBR reprint number 85117 "Competing Through Manufacturing," January-February 1985, by S.C. Wheelwright and R.H. Hayes may be taught with these cases. Subjects: Corporate strategy, Facilities, Facilities planning, Manufacturing strategy, Plant location, Strategy implementation.
International Sourcing in Athletic Footwear: Nike and Reebok
Nike and Reebok, the two largest athletic footwear companies, look to contractors in Asia to manufacture their shoes. Sourcing from Asia offers advantages of low cost and flexibility, but raises questions about human rights and corporate responsibility. How Nike and Reebok have addressed these questions is the focus of this case. Teaching Purpose: Examines the responsibilities of multinational firms with regard to human rights in overseas plants. Subjects: Clothing industry, Ethics, Footwear, General management, Global business, Human
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
resources management, International business, Operations management, Organizational development, Sourcing.
Li & Fung (Trading) Ltd.
HBS 396075 23p TN 396386
East Asia, Hong Kong, China; trading; $780 million revenues; 1,000 employees; 1995
Li & Fung, one of the largest export trading companies in Asia, works primarily as an agent to connect U.S. and European manufacturers and retailers of nondurable, mass-market consumer goods with suppliers located all over East Asia who manufacture products according to customer designs. Li & Fung's network of 2,000 suppliers in over a dozen countries is one of its most important competitive assets. This network consists of relationships with suppliers and knowledge of their capabilities and strengths. The network provides a number of benefits to customers, the most important being a wide variety of manufacturing options that differ by price, quality, and delivery time. Subjects: Developing countries, Human resources management, International business, International operations, Operations management, Organization, Organizational development, Organizational structure, Service management, Sourcing, Southeast Asia, Technology & operations.
Alden Products, Inc.: European Manufacturing
HBS 697099 11p TN 699122
Europe, Holland; personal care products; $500 million revenues; 1989
The European organization of Alden Products, Inc. is contemplating a doubling of unit sales over the next ten years. Their largest plant, located in Holland, was set up 25 years earlier to supply all demands of the EEC countries on the continent. It has since expanded six times. Should it expand again? Should it build a new plant in Southern Europe? Or should it increase subcontracting? Subjects: Capacity planning; Consumer goods; Europe; Expansion; Location of industry; Manufacturing strategy
John Crane UK Ltd.: The CAD-CAM Link
HBS 691021 24p TN 692100
United Kingdom; engineering; 500 employees; 1990
Describes the improvement of manufacturing performance in a job shop through the application of a variety of techniques such as group technology, manufacturing cells, and CAD-CAM. As well as exploring the limitations and merits of these methods, the case explores the conflict between computer-integration and shop-floor autonomy. Teaching objectives: to provide an understanding of computer techniques available in small-batch manufacture, sources of manufacturing improvement, and the implementation of
Barilla SpA, an Italian manufacturer that sells to its retailers largely through third-party distributors, experienced widely fluctuating demand patterns from its distributors during the late 1980s. This case describes a proposal to address the problem by implementing a continuous replenishment program, under which the responsibility for determining shipment quantities to the distributors would shift from the distributors to Barilla. Describes support and resistance within Barilla's different functional areas and within the distributors Barilla approached with the proposal. Teaching Purpose: Allows students to analyze how a company can effectively implement a continuous replenishment system to both reduce channel costs and improve service levels. Subjects: Distribution planning, Europe, Industry analysis, Italy, Logistics, Operations management, Order processing, Retailing, Supermarkets, Suppliers.
*Cummins Engine Co.: Starting Up "B" Crankshaft Manufacturing at the San Luis Potosi Plant
HBS 693121 16p TN 696008
Mexico; automotive components; $100 million revenues; 1992
Cummins Engine Co. is starting up production of diesel engine crankshafts in its plant in central Mexico. This operation requires much tighter tolerances than any product previously produced at the plant, and the young (recent MBA) manager who is in charge of the start-up is faced with several difficult decisions regarding the equipment to be used for crankshaft machining in Mexico. On the one hand, some of the equipment used for this purpose in Cummins' U.S. plant is inappropriate in the Mexican context. On the other, he has to operate under severe budgetary and supplier constraints. A subsidiary issue has to do with the long-term strategy for the Mexican plant, which has developed into one of the best in Cummins' worldwide network but risks being fragmented by the many opportunities for adding products that are available to it. Teaching Purpose: To illustrate problems of transferring production of a highly sophisticated machined product from a developed country (the U.S.) to a developing country (Mexico).
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
Subjects: Automotive supplies; Industrial development; International operations; Manufacturing strategy; Mexico; New process; Project management
*Medical Products Co.
HBS 694065 15p TN 696010
Europe; health care; $350 million revenues; 1990
In early 1990 the company is contemplating changes in its European plant network for producing hypodermic products, including the total production capacity to be provided, the number and location of plants over which to spread this capacity, and which products should be allocated to various plants (and countries). After years of having too much capacity, the latest sales forecasts indicate that it will soon be running out of capacity, and the company has to decide how to react. In analyzing this decision, students are invited to review the decision-making processes that the company has followed in the past--and that have resulted in too much capacity and high manufacturing costs--and asked to propose changes in the way it approaches such decisions in the future. Teaching Purpose: By observing a sequence of decisions over time, students are encouraged to understand how a company's basic assumptions and competitive philosophy can undermine its manufacturing effectiveness. Then they are challenged to propose both corrective measures and a new decision-making process that will avoid similar problems in the future. Subjects: Europe; Manufacturing strategy; Pharmaceuticals; Plant location; Shutdowns; Strategic planning
*Wriston Manufacturing Corp.
HBS 698049 15p
Michigan; automotive; $17 million; 1988
Wriston Manufacturing is a broad-line maker of components for the automotive industry. It has developed a network of nine plants as its product line has grown. Newer, higher-volume products tend to be made in newer, focused, high-volume plants, while older product lines tend to be assigned to the Detroit plant, the oldest one in the system. Because Detroit produces such a wide variety of products, its overhead costs are very high. Management needs to decide whether to close the Detroit plant, or find a way to make it profitable. Teaching Purpose: Helps students see that the cost structure of a plant is driven primarily by its mission--by the complexity or breadth of the product line it is asked to produce. Conventional accounting measures of profitability mask the
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
reasons why complex plants have high costs. A rewritten version of an earlier case. Subjects: Automotive supplies; Cost accounting; Facilities; Manufacturing strategy; Operations management; Shutdowns
Chapter 6: Information Technology and Operations *The ITC eChoupal Initiative
Soybean farmers in India have traditionally sold their product through ineffective and frequently dishonest physical marketplaces (mandi). Farmers are generally poor and often illiterate and are forced to be "price-takers" after an arduous journey to the mandi. They also have very limited access to information and education on farming techniques. Describes the use of Internet technologies to reach these farmers and, in particular, examines a new system called the eChoupal, developed by the Indian conglomerate ITC. The eChoupal has reengineered the antiquated soybean export supply chain using digital technology in rural farm villages. Based on a clever understanding of technology, sociology, and the incentives of the various players involved, the eChoupal provides farmers with effective methods of price discovery, honest trading, and information sharing to the benefit of all in the channel. Discusses the achievement, opportunities, and challenges of the managers of the new supply chain. Subjects: Agribusiness, Asia, Commodity markets, Developing countries, Electronic commerce, Finance, India, Information age, Information technology, Internet, Operations management, Securities markets, Social enterprise, Social enterprise & ethics, Supply Chain.
John Crane UK Ltd.: The CAD-CAM Link
HBS 691021 24p TN 692100
United Kingdom; engineering; 500 employees; 1990
Describes the improvement of manufacturing performance in a job shop through the application of a variety of techniques such as group technology, manufacturing cells, and CAD-CAM. As well as exploring the limitations and merits of these methods, the case explores the conflict between computer-integration and shop-floor autonomy. Teaching objectives: to provide an understanding of computer techniques available in small-batch manufacture, sources of manufacturing improvement, and the implementation of computer-integrated manufacturing.
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
Subjects: Automation, Computer systems, Europe, Information systems, Operations management, Technology & operations, United Kingdom.
Tektronix, Inc.: Global ERP Implementation
HBS 699043 22p TN 602078
Pacific Northwest, electronics, 1993-1998
Reviews Tektronix's implementation of an Enterprise Resource Planning (ERP) solution in its three global business divisions. This case tells the story of three implementations, each with its own character and requirements. Tektronix managers needed to synchronize the requirements of each division with the company's overall need to standardize business practices and its desire to adhere to a common business model across the enterprise. Details the difficulty of major business change in a mature business and technical environment.
Vandelay Industries, Inc.
HBS 697037 16p TN 697063
United States, heavy equipment/software, 30,000 employees, 1996
An ICS consultant considers issues at the start of a full-scale implementation of SAP software for a large client. The Enterprise Resource Planning (ERP) software will integrate previously fragmented business processes, and so must be supported by the entire client organization. Discusses ERP basics, pros and cons of process reengineering and standardization, and change management issues.
Moore Medical Corp.
HBS 601142 21p TN 603030
Connecticut, medical supplies, $124 million, 2001
Moore Medical, a distributor of medical supplies to practitioners, has relied on traditional customer channels such as catalogs, phones, and faxes to communicate product offerings, promotions, and availability, and to take orders. Attempting now to become a "bricks and clicks" distributor with a strong Internet presence, it has already made substantial investments in an eCommerce web site and in "back office" ERP software to improve the fulfillment performance of its four distribution centers. The ERP software has not lived up to expectations in all areas, and the company must decide whether to invest in more modules for this system that might address its shortcomings. It must also decide whether to make an additional investment in customer relationship management software. Teaching Purpose: Examines the factors underpinning IT investment decisions. At the time of the case, Moore must decide whether it has "enough" of the "right kind" of IT. The decision is complicated by the fact that the company has recently made substantial IT investments that
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
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have impacted financial performance and caused organizational disruption. In addition, it is not clear that all of Moore's known issues related to customer retention and satisfaction will be addressed by the Customer Relationship Management (CRM) under consideration. Students preparing the case must understand this environment and formulate an IT investment program that makes sense within it. Subjects: Electronic commerce, Equipment, ERP, Information age, Information technology, Internet, Medical supplies, Operations management, Order processing, Pharmaceuticals industry, Planning, Resource allocation, Supply chain, Technology & operations.
Anti-trust and Competitive Issues in B2B Trading Exchanges: Covisint, Inc.
University of Hong Kong HKU205 3p TN: HKU206
US; 2000 In February 2000, DaimlerChrysler, Ford Motor Co., and General Motors Co. jointly announced plans to combine efforts and form a global online business-to-business (B2B) exchange. The goal of the exchange was to provide original equipment manufacturers and suppliers with the ability to reduce costs in their respective supply chains and bring efficiencies to their business operations. A few months after the announcement, Renault S.A., Nissan Japan, and several top-tier automotive parts suppliers voiced their support and planned to join the exchange. The founders coined the name "Covisint" for the exchange. In July 2000, the Federal Trade Commission (FTC) in Washington, DC launched an investigation into Covisint's structure and mission, to explore any possible antitrust implications. The FTC was aware that Covisint's founders represented a large share of the automotive market. Given the influence of the big players, the FTC feared that small companies could be excluded from the market and that the exchange could provide a channel for the improper transfer of sensitive information among the participants. Covisint was the first B2B venture to be reviewed by the FTC. The outcome of the case and the issues raised sparked widespread debate about how, or whether, the B2B industry should be regulated by antitrust provisions. The case also raised concerns from companies that intend to invest or participate in B2B trading platforms. Subjects: Antitrust laws, Automobile industry, Business models, Business to business,
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
Electronic commerce, Information age, Legal aspects of business, Legislation, Liability, Manufacturing industry, Operations management, Supply chain.
Delivery Problems at Arrow Electronics, Inc. (A)
HBS 601131 17p B case available
Long Island, NY; electronics; $1 billion revenues; 1993
Describes a dramatic decrease in service levels (on-time shipments) from the warehouse network of a large electronics distributor. Students need to analyze the root cause of the problem and propose actions. Teaching Purpose: To reinforce basic tools of operations analysis in a warehouse setting (process flow, cycle time, bottlenecks, throughput times, manpower loading, etc.) and teach students the need for root cause analysis. A rewritten version of an earlier case. Subjects: Distribution, Electronics, High technology, Information systems, Manufacturing industry, Materials management, Operations management, Sales & marketing, Technology & operations.
*The iPremier Co.: Denial of Service Attack (A)
HBS 601114 12p B case: 601114 TN 602033
Seattle, WA; web retail; $30 million; 2001
Describes a new CIO trying to manage a denial of service (DOS) attack against his e-retailing business. The attack and its aftermath provide students an opportunity to discuss the business issues that are interwoven with computer security issues. Teaching Purpose: Introduces students to the complex business and legal issues involved in making an e-business secure against breeches in security. Subjects: Computer security; Information management; Information technology; Internet; Legal aspects of business; Management of crises; Retailing
*Foremostco, Inc. (A)
HBS 604017 11p
Miami, FL; horticulture; $4 million; 2000
Describes the rocky transition from an outdated, nonintegrated information system to a new customized system built by programmers in the small, IT-dependent foliage company in which the case takes place. The old system has increasingly become a "burning platform," but the project to build the new system is plagued by delays, the idiosyncrasies of the business, and lack of IT knowledge on the part of senior managers. The transition threatens to put the company out of business and the crisis forces the COO to take charge of the project personally. After the new system goes live, however, it proves to be buggy and unreliable. The company comes even closer to collapse, and
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
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COO Penny Roberts must rally the team around an unpopular project whose success no one can guarantee. Teaching points include IT systems transition, IT management in small companies, and how to deal with an IT-based, business-interrupting disaster. Teaching Purpose: To teach methods for managing IT system transition and the management of potential crises in such situations. Subjects: Agribusiness; Information systems; Information technology; Management of change; Management of crises; Supply chain; Technological change
Chapter 7 Creating an Edge Through New Process Development
Pilkington Float Glass--1955
HBS 695024 15p TN 697030
United Kingdom; glass; large; 1955
Examines the development of the float glass process at Pilkington in the mid-1950s. Pilkington has pursued the development of a radically new process for flat glass production, but has experienced serious problems at each stage of development. The senior management must now decide whether to scale up to commercial production. Teaching Purpose: Introduces the process that lies behind radical innovation, and highlights powerful principles of effective technical innovation, particularly where science and technology are closely linked. A rewritten version of an earlier case. Subjects: Glass & glassware industry; Innovation; New process; Product development; Technological change; Technology; United Kingdom
Plus Development Corp. (A)
HBS 687001 17p B and C cases available TN 690093
California; computers; small--100 employees; 1984
Plus Development Corp. is designing a new hard disk drive for personal computers. They chose to have a Japanese firm do the manufacturing. The case highlights the background for that decision and is situated at the time when Japanese engineers are on site at Plus to work on the product's development. Teaching objectives are to emphasize and explore the difference in development styles between the Japanese and Plus engineers. A delay occurs in the schedule due, in part, to these differences. The case decision for students is how to respond to the schedule slippage. Subjects: Competitive strategy, Finance, Innovation & entrepreneurship, Joint ventures, Manufacturing strategy, Marketing, Operations management, Partnerships, Product
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
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development, Product introduction, Product life cycle, Product management, Silicon Valley, Technology, Technology & operations.
Design for Manufactur-ability at Midwest Industries
HBS 690066 18p TN 693007
IL, NC, Scotland; self-service retailing; $4.0 billion revenues; 1984-1990
Deals with the difficulties of developing, promoting, and implementing the concept of Design for Manufacturing (DFM) as part of a corporate operations strategy. Describes the efforts of three different plants toward their goals of using DFM. Each of the three plants chose quite different approaches to DFM, yielding a variety of results--successes and failures. Subjects: Manufacturing strategy; Organizational change; Product design; Product development
McDonald's Corp. (Abridged)
HBS 603041 12p
Global; fast food; large; 1992
McDonald's has over many years built an operating strategy based on consistency and quality through a limited product range. Competitive forces have drawn the company into a much wider variety of foods and services to maintain growth. Now, new competitors threaten to beat McDonald's at its own, original game. Teaching Purpose: Teaches approaches and dangers arising from flexibility and the identification of capabilities that support different types of flexibility. Demonstrates conflicts between scalability and the prevention of imitation. Subjects: Competition, Competitive strategy, Corporate strategy, Environmental protection, Fast food industry, Operations management, Service industry, Services, Strategy implementation, Technology & operations.
BMW: The 7-Series Project (A)
HBS 692083 20p TN 692094
Germany, automobiles, 1990
Explores BMW's decision about how to manufacture prototype vehicles. Historically, BMW's prototypes were handcrafted by highly skilled artisans in the company's shop. A proposal has been made to alter the process so that prototypes are made in a way that can better uncover potential problems that may arise during final production. While the new approach is expected to make production start-up of new models smoother and reduce quality problems, there is some concern within the company that it will lead to less flexibility to change (and improve) designs during the development cycle. Explores different ways of competing on quality in a luxury product segment and how the product development process affects each of
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
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these. A second objective is to examine the notion of a prototyping strategy and the role prototyping plays in linking development strategy and manufacturing strategy. Subjects: Automobile industry, Automobiles, Design management, Europe, Germany, Innovation, Innovation & entrepreneurship, Manufacturing, Manufacturing industry, Manufacturing strategy, Marketing, Operations management, Product design, Product development, Product life cycle, Production, Prototypes, Quality control, Total quality.
Product Development at Dell Computer Corp.
HBS 699010 21p TN 699134
N/A Describes how Dell redesigned its new-product-development process after experiencing a major product setback and a significant decline in firm profits in 1993. Dell's new process is challenged during the development of a new line of portable computers when the incoming head of portables has to manage the risk of using a new technology. This case focuses on: 1) product development process design, 2) the costs and benefits of flexibility and structure in uncertain environments, and 3) managing development risk during and after a financial and market setback. Explores managerial issues in product development found in uncertain and risky environments. Allows students to discuss and quantify the cost and benefits of process flexibility. Subjects: Computer industry, Economic theory, Economics, Finance, High technology, Innovation & entrepreneurship, Management of change, Manufacturing industry, Marketing, Operations management, Product development, Product life cycle, Risk, Uncertainty.
*Intel-Ped (A)
HBS 693056 22p B case: 693057 TN 696006
Global; semiconductors; $4.8 billion; 1985-92
Describes Intel Corp.'s changing strategy for selecting and developing process equipment in the context of rapidly changing technology, intense competition, increasing cost of semiconductor manufacturing equipment, and a supplier base that is largely overseas. The evolution of a centralized process equipment development department is examined. The equipment selection process is followed through the selection of a supplier and system to meet the next generation of process technology at Intel. Provides an opportunity for analysis of the impact of short technology life cycles in a technology-intensive, process-based
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
manufacturing environment. Permits analysis of the process and equipment strategy of a leading IC manufacturer. The issues of centralization of process equipment development activities and equipment selection methodology can be examined. The pros and cons of a single-supplier versus a multiple-supplier scenario can be discussed. Subjects: Electronics; Manufacturing strategy; Semiconductors; Sourcing; Suppliers; Technological change
*ITT Automotive: Global Manufacturing Strategy--1994
HBS 695002 23p TN 696040
Germany; automotive; $2 billion revenues; 1994
ITT Automotive is in the process of developing a new generation anti-lock brake system (ABS), designated the MK-20. The case focuses on the level of automation to be used in the production of this new system, and whether all plants should use the same process technology. Due to intensifying cost pressure and rapidly growing demand for lower-cost ABS, the development team and senior management (based in Frankfurt, Germany) strongly favor using a single, highly automated production process in the four plants scheduled to produce the MK-20 (located in Germany, Belgium, and the United States). Managers at the company's two plants in the United States favor using less automation technology in order to allow greater flexibility for improving process technology over time. Teaching Purpose: Can be used to explore two issues: 1) the choice of process technology; in particular, the relationship between the level of automation and opportunities for process improvement and 2) the strategic management of process technology in the global plant network. Subjects: Automation; Automotive supplies; International operations; Manufacturing strategy; Product development; Production processes; Productivity
Chapter 8 Creating an Edge Through Superior Project Execution
Project Management Manual
HBS 697034 39p
N/A A descriptive manual of how to manage the process of project management. Major sections are: 1) define and organize the project, 2) plan the project, and 3) track and manage the project. 12 processes are described in detail. Teaching Purpose: To teach students that structured project planning is necessary for successful project outcome.
Philips-Taiwan has been embarked on a comprehensive quality improvement program for over three years, and has set for itself the goal of becoming the first Asian company outside of Japan to win Japan's prestigious Deming Prize (for outstanding improvement in quality and productivity). Now, in mid-1988, it is extending its quality improvement efforts to all parts of its operations, including new product development, called Quality Function Deployment, to the development of its next major product, but is beginning to encounter resistance from its engineering group. Subjects: Computer systems; Operations management; Organizational change; Product development; Quality control; Southeast Asia
We've Got Rhythm! Medtronic Corp.'s Cardiac Pacemaker Business
HBS 698004 18p TN 698056
US; health care; $2 billion; 1997
Illustrates how a new management team at Medtronic's Cardiac Pacemaker business reversed a steep decline in market share through adoption of certain management principles for new product development: clarity of strategy, aggregate project planning, reducing the number of projects to match development capacity, a platform/derivative product architecture, and others. Teaching Purpose: A good summary case for use in MBA courses on managing innovation, managing new product development, and managing change. Also useful in executive programs. Subjects: Innovation; Management of change; Medical supplies; Product development; Product planning & policy; Technology
Microsoft Office 2000 (Multimedia Case)
HBS 600023 CD-ROM TN 602034
Seattle, WA; software; large; 2000
Describes the history of Microsoft's Office product suite. Discusses evolution of the Office 2000 project. Set at the end of the project when Steven Sinofsky, Office vice president, must decide upon the direction for the next version of Office, as well as make changes to the process. Teaching Purpose: Product development in software, Microsoft's "milestone" development process, resolving the "fuzzy front end," and responding to uncertain environments and radical incremental change. Teaching faculty call 1-800-545-7685 for sampling information. Windows-only CD-ROM product includes text, video clips of interviews with key project team
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
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members, and links to relevant websites. Subjects: Innovation; Product development; Project management; Software; Technology
Boeing 767: From Concept to Production (A)
HBS 688040 19p B case available TN available
Seattle, WA airplane manufacturing $9 billion revenues 1970-1981
Describes the evolution of the Boeing 767 from the conception of the project to the start of manufacturing. Shows how the company manages an enormously complex and risky project and introduces students to a variety of estimating and management tools. The decision issue involves the shift from three-person to two-person cockpits and whether rework should be done in-line (without removing planes from the flow of production) or off-line (after initial assembly has been completed). Subjects: Aircraft; Learning curves; Manufacturing; Operations management; Project management
Biogen, Inc.: rBeta Interferon Manufacturing Process Development
HBS 696083 18p
Cambridge, MA biotechnology $135 million revenues 1992-1993
Biogen, Inc., a Cambridge, MA-based biotechnology company, is wrapping up a project to develop a new manufacturing process for a new drug product that will reposition the company from a purely research-oriented company to a fully integrated pharmaceutical manufacturing organization. Morris Rosenburg, a senior scientist at Biogen, has been asked to perform a major evaluation of the project in order to report on lessons learned as well as to make recommendations on how to improve project management moving forward. Subjects: Biotechnology; Product development; Production processes; Project management
*Eli Lilly: The Evista Project
HBS 699016 24p TN 600027
Indianapolis, IN; pharmaceuticals
Describes the creation and operation of the initial two heavyweight teams for new drug development and launch. The primary focus is on one of those two teams, Evista, although comparisons to the other team, Zyprexa, are included. Lilly must decide the next phase (post launch) for managing Evista's rollout. Teaching Purpose: Operational realities of heavyweight development teams and their transition following product launch. Subjects: Pharmaceuticals; Product development; Teams
Chapter 9 Evaluating and Justifying Capital Investments Alden Products, Inc.: European Manufacturing
HBS 697099 11p TN 699122
Europe/Holland; personal care products; $500 million revenues; 1989
The European organization of Alden Products, Inc. is contemplating a doubling of unit sales over the next ten years. Their largest plant, located in Holland, was set up 25 years earlier to supply all demands of the EEC countries on the
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
www.hbsp.harvard.edu/educators
continent. It has since expanded six times. Should it expand again? Should it build a new plant in Southern Europe? Or should it increase subcontracting? Subjects: Capacity planning; Consumer goods; Europe; Expansion; Location of industry; Manufacturing strategy
Applichem (A) (Abridged)
HBS 694030 13p TN available
International specialty chemicals $75 million revenues 1982
Applichem manufactures the same chemical product in four plants, each of which is located in a different country. The company has completed a major study comparing the productivity and performance of these plants. Using the data from the study, students must decide which, if any, plants to close. The case requires students to think about the relevant metrics for comparing the performance of plants that operate very differently and in different countries. An important issue is the distinction between physical measures of productivity and financial measures of performance. Finally, the case allows students to think about what management might do to ensure that productivity improvements are shared across the plant network. Subjects: Business conditions; Chemicals; Multinational corporations; Operations management; Performance measurement; Plastics; Productivity
Mitel Semiconductor
Ivey School/ UWO 99D009 14p TN 899D09
Quebec, Canada; Semiconductors; large; 1995
The vice president and general manager of Mitel's semiconductor division is faced with a rapidly growing market for the company's business communication chips, but has limited capacity at the semiconductor plant. There is little industry capacity to outsource production. He must determine how to pursue the growing market and how to secure additional capacity. Options include modifications to the current facility, construction of a new facility, or the acquisition of a plant from another company. Subjects: Canada; Capacity analysis; Capital investments; Production capacity; Production controls; Semiconductors
Nucor at a Crossroads
HBS 793039 22p TN 795021
Charlotte, NC; steel; Fortune 500; 1987
Nucor is a minimill deciding whether to spend a significant fraction of its net worth on a commercially unproven technology in order to penetrate a large but hitherto inaccessible segment of the steel market. This case is an integrative one designed to facilitate full-blown analysis of a strategic investment decision.
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
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Subjects: Capital investments; Competition; Economic analysis; Expansion; Steel; Technological change
All American Pipeline
HBS 292040 16p 295063
Southwest US; oil pipeline and tires; $10 billion revenues; 1984
Goodyear is nearing its first major capital commitments for the largest investment project in its history, the All American Pipeline. The pipeline will transport heavy crude oil from California to Texas. It is the centerpiece of a major program by Goodyear to diversify away from its core tire business. Goodyear estimates construction cost at just under $1 billion, while outside observers believe the cost could be twice as high. Students are asked to evaluate the project by analyzing data on the supply and demand for heavy crude oil and the economics of transporting it, and by computing and discounting the cash flows the pipeline can be expected to generate. Subjects: Capital investments; Diversification; Petroleum; Present value; Supply & demand; Tire industry; Valuation
Chapter 10 Sharpening the Edge: Driving Operations Improvement
Daewoo Shipbuilding and Heavy Machinery
HBS 695001 18p TN 696053
Korea; shipbuilding; 1994 Daewoo Shipbuilding and Heavy Machinery rescued its plant from the labor riots of 1987 to make it, by 1994, to be the fastest improving shipyard in the world. With its competition in Korea making huge investments in additional capacity in anticipation of the end of the recession, Daewoo instead has to decide if its strategy of continuous investment can provide the needed capacity. Teaching Purpose: Addresses manufacturing improvement strategies and plant management. In addition, it looks at the interaction between "step-change" improvement and continuous improvement. Subjects: Continuous improvement; Facilities; Labor relations; Manufacturing strategy; Production capacity; Shipbuilding
Samsung Heavy Industries: The Koje Shipyard
HBS 695032 16p TN 697102
Korea; shipbuilding; 1994 Describes the steps taken by Samsung Shipbuilding to develop its manufacturing capabilities using externally developed technologies. Having assimilated those technologies, it is now faced with a huge capacity expansion, in the form of a 1-million-ton dry dock, that threatens to overwhelm its systems and managerial methods. Teaching Purpose: Explores issues related to manufacturing improvement and "Murphy's
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
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Law"--the phenomenon of performance falling after major capital addition in manufacturing. Subjects: Capacity planning; Facilities; Korea; Manufacturing; Shipbuilding
Toyota Motor Manufacturing, U.S.A., Inc.
HBS 693019 22p TN 693046
Georgetown, KY; automobiles; large; 1992
On May 1, 1992, Doug Friesen, manager of assembly for Toyota's Georgetown, Kentucky, plant, faces a problem with the seats installed in the plant's sole product--Camrys. A growing number of cars are sitting off-line with defective seats or are missing them entirely. This situation is one of several causes of recent overtime, yet neither the reason for the problem nor a solution to it is readily apparent. As the plant is an exemplar of Toyota's famed production system (TPS), Friesen is determined that, if possible, the situation will be resolved using TPS principles and tools. Students are asked to suggest what action(s) Friesen should take and to analyze whether Georgetown's current handling of the seat problem fits within the TPS philosophy. Teaching Purpose: 1) Provide comprehensive knowledge on Toyota Production System, 2) Exercise advanced root cause analysis, and 3) Demonstrate the totality of manufacturing, especially the link between production control and quality control. Subjects: Automobiles; International operations; Process analysis; Production controls; Quality control; Suppliers
Reengineering a Business Process (HBS background note)
HBS 396054 16p
N/a Describes the six steps included in most reengineering initiatives: selecting the processes for reengineering; identifying change enablers; developing a business vision of process objectives; understanding and measuring existing processes; designing and prototyping the new processes; and implementing the new processes. Subjects: Process analysis; Prototypes; Reengineering
Dairy Farm Group: Redesign of Business Systems and Processes
University of Hong Kong HKU049 20p TN HKU050
Hong Kong; retail; 1997-98
1997 marked the beginning of a slump in retail sales for the Dairy Farm Group of Companies (DFG), a major food retailer based in Hong Kong with operations in many major cities in Asia Pacific. The Asian economic crisis of 1997 was one cause. However, another major cause was increasing competition from aggressive European and U.S. retail chains that were preparing to gain a foothold in the growing Asian market. DFG realized that to combat
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
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Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
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competition and retain its dominant position in Asia Pacific, it had to change its business strategy from that of "buying and selling" to "sensing and responding." The case investigates DFG's existing business systems and processes and looks at the possibilities of gaining competitive advantage, either by acquiring state of the art systems and technical infrastructure or through radical redesign of its critical business processes supported by technology. Teaching Purpose: 1) How organizations gain competitive advantage through business process reengineering (BPR); 2) IT as a facilitator of BPR; and 3) Competitive advantage through supply chain integration and logistics management. Subjects: Asia; Business processes; Corporate strategy; Electronic commerce; Food; Information technology; Retailing; Supply chain
Romeo Engine Plant (Abridged)
HBS 197100 10p
Michigan; automobiles; 1993
A newly reopened automobile engine plant has been organized along total quality and teamwork principles. The employees' job is to solve problems and ensure quality, not to watch parts being produced. New operating and financial systems have been installed to promote continuous improvement, waste elimination, and cost reduction activities. Teaching Purpose: To illustrate employee empowerment and team problem-solving to achieve total quality management; and to contrast operational and actual costing systems with traditional labor and overhead variance reporting. Subjects: Automobiles; Continuous improvement; Cost control; Cost systems; Management accounting; Teams; Total quality; Variance analysis
*Deere & Co. (A): The Computer-Aided Manufacturing Services Division - A Window to the World (Abridged)
HBS 693051 16p TN 696007
Illinois; agricultural and industrial equipment; Fortune 500; 1986
The Computer-Aided Manufacturing (CAM) Services Division of John Deere has just received approval to sell their software and computer systems to external customers. These tools, initially developed for internal use, have been widely used throughout Deere. Still, selling software represents a major departure from the John Deere tradition of heavy equipment manufacturing. Can the technologically focused group adjust to the new demands of external customers without destroying its momentum in developing new products for internal use? What are the potential
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
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benefits and costs of this new venture, both for the division and the company as a whole? Subjects: Computer systems; Machinery and equipment; Marketing strategy; New products; Technological change
Chapter 11 Guiding the Pursuit of an Operations Edge Workplace Safety at Alcoa (A)
HBS 692042 22p TN 697128
Indiana, aluminum, 63,000 employees, 1991
Examines the challenge facing the managers of a large aluminum manufacturing plant in its drive to improve workplace safety. The CEO of the company has made safety a top priority. The plant has made good progress in reducing the injury rate, but now confronts the need to accelerate its improvement. Doing so requires the safety director to consider progress to date and analyze the opportunities for improvement, many of which involve fundamental changes in behavior at all levels of the organization. Progress has not been uniform throughout the plant and past approaches may not be adequate in meeting the challenge. As the case comes to a close, these issues come to a head because a superintendent wants to fire a supervisor who has failed to adhere to safety procedures. Designed to introduce students to the issues of safety in its operating context. Students have information available that allows them to analyze underlying causes and identify major opportunities for improvement. However, the interactions between safety and other dimensions of manufacturing performance are evident in developing and implementing a plan for improvement. Subjects: Aluminum industry, Health, Management of information systems, Manufacturing industry, Manufacturing strategy, Occupational safety, Operating systems, Operations management, Personnel policies, Technology & operations, Terminations.
Molding the Impossible: The NYPRO/ Vistakon Disposable Contact Lens Project
HBS 694062 18p TN 694081
Massachusetts and Florida, USA; medical/plastics; $150 million revenue; 1984-87
NYPRO, Inc., one of the world's leading manufacturers of plastic injection-molded products, is asked by the Vistakon Division of Johnson & Johnson to manufacture molds that Vistakon will use to produce disposable contact lenses. The required dimensional tolerances for NYPRO's molds are ten times tighter than it has ever achieved before. The case describes how engineering teams in these two companies attempt to work together to develop a capable
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
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process for making molds and lenses. Teaching Purpose: Provides a detailed description of the engineering problem-solving process. Especially focuses on why customers and vendors need to solve process development problems jointly, but illustrates the problems incurred when working in a cross-company team. Subjects: Customer relations; Medical supplies; Product development; Technological change; Technology
Measure of Delight: The Pursuit of Quality at AT&T Universal Card Services (A)
HBS 694047 23p B case available TN 696073
Florida, credit cards, 2,700 employees, 1989
AT&T's Universal Card Services has been extremely successful during its short lifetime. Dedicated to improving service quality and customer satisfaction, Chief Quality Officer Rob Davis and his Quality Team have designed and put into place an unusual measurement and compensation system based on more than 100 performance measures monitored and communicated daily. This case links performance measurement and compensation policies to precepts of quality management. Subjects: Customer relations; Employee compensation; Employee empowerment; Performance measurement; Service management; Total quality
GE: We Bring Good Things to Life (A)
HBS 899162 23p B case available TN 899222
Global; diversified; $80 billion revenues; 1995
Jack Welch and the Corporate Executive Council of GE are faced with a decision about whether and how to implement a six sigma quality improvement effort in the context of many other initiatives already undertaken at GE in recent years. Teaching Purpose: To illustrate the complexity of managing change and the momentum that related and integrated initiatives can provide. Subjects: Corporate culture; Decentralization; Leadership; Management of change; Total quality
Process Improvement Template (HBS background note)
HBS 601186 5p
N/a Managers are often confronted with the challenge of improving critical business processes in such a way that their efforts are not merely ad hoc. This note provides a template by which improvement efforts are converted from unstructured efforts to bona fide, hypothesis-testing experiments that not only lead to process improvement but to the creation of broader and deeper understanding of how the process works. In other words, this is a tool for system improvement, learning, and creation of learning systems. Teaching Purpose: Originally prepared
Case Map for Hayes/Pisano/Upton/Wheelwright: Pursuing the Operations Edge
(Wiley, 2004)
Harvard Business School Publishing
800-545-7685 (Outside the U.S. and Canada 617-783-7600) [email protected]
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for students in the Elective Curriculum course Running and Growing the Small Company to guide their field-based, team-project research efforts. It has been used since then to facilitate action research in manufacturing, administrative, and health care settings. Subjects: Business processes, Organization, Organizational behavior, Organizational development, Organizational learning, Process analysis.
