MBA 8503 Operations and Supply Chain Management
Spring 2011
Revised: 4/27/11 Matt Liberatore 610-519-4390 mliberat@villanova.edu
Wednesday, April 27:
Outside Speaker, George Diehl, VSB Business Fellow, and retired executive Air Products and Chemicals presentation
Harvard Global Supply Chain Simulation – Final Results
McDonald’s Corporation: Managing a Sustainable Supply Chain case due – G4 presents, G2 questions, each student in G1 hands in report
Note: The final case is eliminated, and there will be a take-home examination instead
presenting team evaluation form questioning team evaluation form
Syllabus student teams - revised assignment schedule - revised 3/31/11
Class 1: Introduction to Operations and Supply Chain Management
Class 2: Project Management
Class 2 PowerPoint MS Project PowerPoint
Project Management Homework Assignment Please submit solutions to problems 2 and 3 -- do these problems by hand by using MS Project. Each group should hand in a hardcopy solution of the two problems and email me MS Project files for each problem. The MS Project file should display the schedule chart and the detail Gantt Chart.
MS Project file for problem 2 MS Project file for problem 3 Project Management Homework Solutions
Second Project Management Homework Assignment: Please submit solutions to problems 11 and 13. In doing crashing, you need not do the detailed calculations for ES, EF, LS, LF and Slack. Use path enumeration to find the critical path, then crash the critical path activity that has the cheapest cost per unit time to expedite. Reduce the time of the crashed activity, and then re-compute all path lengths. To crash the project further, make sure ALL critical paths are reduced. Figures for both problems
XYZ Case Assignment -- one submission per group. Hand in written report and email MS project files to me as indicated.
MS Project Construction example
MS Project Great Valley example (from PowerPoint)
Class 3: Process Management
Process Homework Problems Figure for problem 7 Process Management Homework Solutions
Kristen's Cookie Company (A): Provide a written case report that includes a brief case summary (250 words maximum) and written answers for the following questions:
Here are some suggestions for analyzing Kristen's Cookie Case.
Class 4 Quality Management
Class 4 PowerPoint REVISED - slide 56
X Bar and R chart spreadsheet from the PowerPoint
Quality Homework problems quality homework solutions
Note that the interpretation of control charts can follow the 1 - 2 - 5 - 7 rule: if one of the following occurs, the process should be investigated to see if there is an assignable cause of the variation:
1 point outside the control limits
2 consecutive points near a control limit
5 consecutive increasing or decreasing points
7 consecutive points either above or below the center line of the control chart
Six Sigma Implementation at Maple Leaf Foods
After providing a case summary, please address the following questions:
1. If you were in the position of Anthony Scire, how would you respond to Louann Hulsman's request to implement Six Sigma @ the Edge at the Rivermede plant? What criteria would you use to evaluate the readiness of the Rivermede plant to proceed with implementation? What resources would be needed?
2. If you proceed, how would Six Sigma @ the Edge affect the managers, supervisors and plant workforce?
Class 5 Lean Management
Eagle Services Asia Case
After providing a case summary, please address the following questions:
1. Which three organizational or cultural aspects of ESA contributed the most to the CAAS shutdown and made the turnaound a particularly difficult challenge for Guiliano and his team?
2. Which of the "human elements" of lean management were particularly well demonstrated by the actions of the new management team at ESA? Cite specific examples.
3. What are some elements used at ESA that would be appropriate for Guiliano to rollout to other engine centers within the Global Service Partner (GSP) group?
4. Will it be
difficult for Guiliano's successor to sustain the gains and Majulah spirit
developed over the last five years? What actions could he take to increase
the chances for success? What advice would you offer to him going forward?
Class 6: Guest speaker's presentation
Guest Speaker: Steve Desirey, LinearLogistics, "Blended Project Management Methodology," A Case Study; handouts
Class 7 Resource Management
Class Excel Solver files: lego example trans_bal.xls trans_cap.xls trans_dem.xls warehouse_location.xls manuf.xls text example.xls
math programming homework problems: Note that the first homework problem (Panelpine) is a product mix problem related to the sensitivity analysis example found in the PowerPoint and solved in the Excel file manuf.xls. This problem is due Wednesday, March 16. The second homework problem (Zendir) is related to the warehouse location problem found in the PowerPoint file as discussed in class and solved in the Excel file warehouse_location.xls. This problem is due Wednesday, March 23. Please hand in a written document with your answers and email me the two supporting spreadsheets.
Math programming homework
solutions -
Word file
panelpine spreadsheet
zendir spreadsheet
Class 8: Forecasting
Excel files: forecast_1 forecast_2 forecast_3 forecast_4
Wachovia Case - found in WebCT To be discussed in class.
Wachovia data Using the data in the Wachovia spreadsheet, forecast deseasonalized demand for period 67 using the following methods: naive (this period's forecast is last period's actual); a constant forecast of 733; moving average forecasts using 3 and 5 terms, respectively; exponential smoothing, using the alpha that minimizes MAPE For each method compute MAPE over all the historical data. Decide on your deseasonalized forecast, reseasonalize it using the factor given in the case (by multiplying your forecasts by the seasonal index), then determine the number of part-time workers needed in TERMS OF HOURS.
Forecasting Homework Assignment
Forecasting Homework Solutions
Class 9: Inventory Management and Risk Pooling
Acme Inventory Calculations Single Period Model Calculations
Inventory Exercise - Word file Inventory Exercise - Excel file
Inventory-transportation homework problem - inventory-transportation problem solution - Excel file
Questions for the Sport Obermeyer case
1. Using the sample data given in Exhibit 10, make a recommendation for how many units of each style Wally Obermeyer should order during the initial phase of production. Assume all ten styles in the sample problem are made in Hong Kong, and that Obermeyer's initial production commitment must be 10,000 units (ignore price differences among styles in your initial analysis).
2. Same as in question 1 above, but now assume all styles are made in China.
3. What operational changes would you recommend to Wally to improve performance?
4. How should Obermeyer management think (both short term and long term) about sourcing in Hong Kong versus China?
Hints:
The data available are subjective forecasts given by each of the buying committee members shown in Exhibit 10. Forecasting methods such as exponential smoothing or moving average cannot be applied since we do not have time series data. However, combining the individual forecasts, we see as shown in Exhibit 11 that the forecasted demand for each style can be represented by a normal distribution with a mean equal to the average of the individual forecasts, and a standard deviation equal to twice the standard deviation of the individual forecasts. Therefore, what is the measure of risk associated with these forecasts? The problem is how to allocate an order of 10,000 units across the various styles using the normal distributions associated with each of the forecasts.
Consider the 10,000 units of production that has to be allocated across the various styles. Would it make sense to allocate across styles using your measure of risk? Should the risk be set at the same level for all styles? Once this allocation is made, then the issue of order minimums must be addressed. For Hong Kong, the minimum order size is 600, so the results from the analysis using the measure of risk must be adjusted to reflect this. For China, the minimum order size is 1,200 units, also requiring adjustments.
Class 10: The Value of Information
Class 10 PowerPoint Note: PowerPoint is relevant to the Barilla Case
Questions for the Barilla Case
• 1. What exactly is causing the fluctuations in the distributor’s order pattern faced by Barilla? What are the underlying drivers of the fluctuations?
• 2. What are the most significant internal barriers to JITD implementation?
• 3. As a customer why would JITD be disconcerting?
• 4. Is JITD feasible for Barilla?
Beer Game Results team 1
charts team 2 charts
team 3 charts
Class 11: Procurement and Outsourcing and Supply Chain Integration
Class 11 PowerPoint - procurement and outsourcing Chapter 11 PowerPoint - supply chain integration
Questions for the Zara Case
1. 1. Describe Zara’s current sourcing strategy. How is it a competitive advantage for the firm?
2. 2. What specific challenges are a result of Zara’s rapid inventory turnover? What portions of Zara’s replenishment strategy makes it easier to manage?
3. 3. Will Zara’s current sourcing strategy be useful as it expands? How should this strategy change? What are the risks associated with this new strategy?
T
The Questions for the Dell Case are contained in the case itself.
Cl
Class 12: Coordinating Product and Supply Chain Design
Class 12 PowerPoint
C Harvard Global Supply Chain Simulation -- review Sport Obermeyer and Fisher (1994) in preparation
Questions for the HP Desk Jet Case
1. 1. What problems is HP facing relative to DeskJet sales in Europe? What are the causes of these problems?
2. 2. What are HP’s options to address these problems? How would you evaluate each of these options? Note that these options include distribution center (DC) localization, where the power supply would be added to the printer body in the European distribution center. What are the benefits and implementation issues associated with DC localization?
3.
3.Which
option would you recommend?
Class 13: Wrap Up
Harvard Global Supply Chain Simulation Results
McDonald's Corp. Managing a Sustainable Supply Chain: class discussion (questions at the end of the case)
Guest
Speaker, George Diehl, VSB Business Fellow, and
retired executive, Air Products and Chemicals
Class 14: Take-home Examination: no formal class meeting
Examination
Part 1 is worth 50 points, consists of 8 short-answer questions, and has a two-hour time limit. It is closed book, but you can prepare two sides of notes to use. All answers are placed in the Word document and emailed to me as LASTNAME1.DOC.
Part 2 is also worth 50 points, and contains four problems, and has a two-hour time limit. It is open book, open notes, and open computer. All answers must be place in the Word document and emailed to me as LASTNAME2.DOC. A supporting Excel file is required for one problem, and is optional for the others.
READINGS:
All readings available in WebCT exept Plotkin (found on Harvard Business School Publishing)
Ferdows, K., Lewis, M. A., and Machura, J. A. D., “Rapid-Fire Fulfillment,” Harvard Business Review, November 2004, 104 - 109.
Fisher, M. L., “What is the Right Supply Chain for Your Product?” Harvard Business Review, March – April 1997, 105 – 117.
Fisher, M., J. Hammond, W. Obermeyer, and A. Raman, “Making Supply Meet Demand in an Uncertain World,” Harvard Business Review, May-June 1994, 83-92.
Gale, S., “Building Frameworks for Six Sigma Success,” Workforce, May 2003, 64 – 69.
Hammer, M., “Reengineering Work: Don’t Automate, Obliterate,” Harvard Business Review, July – August 1990, 104 – 112.
Hammer, M., “Deep Change: How Operational Innovation Can Transform Your Company,” Harvard Business Review, April 2004, pp. 85 - 93.
Kahn, G., “Made to Measure: Invisible Supplier Has Penney’s Shirts All Buttoned Up,” Wall Street Journal, September 11, 2003, A1.
Kahn, G., “Style & Substance: Tiger’s New Threads,” Wall Street Journal, March 26, 2004, B1.
Lee, H., P. Padmanabhan, and S. Wang, “The Bullwhip Effect in Supply Chains,” Sloan Management Review, Spring 1997, 93 – 102.
Liberatore, M., Stout, D., and Robbins, J., “Key Project Management (PM) Concepts for Accountants,” Management Accounting Quarterly, Vol. 8, No. 2 (Winter 2007), 15 – 23. Awarded a Certificate of Merit, Institute of Management Accountants, 2007
Narayanan, V.G., and Raman, A., “Aligning Incentives in Supply Chain,” Harvard Business Review, November 2004, 94 – 101.
Plotkin, H., “Six Sigma: What It Is and How To Use It,” Harvard Management Update, Boston: Harvard Business Publishing, 1999.*
Spear, S., and Bover, H., “Decoding the DNA of the Toyota Production System,” Harvard Business Review, September - October 1999, 96 – 106.
Swank, C. K, “The Lean Service Machine,” Harvard Business Review, September – October 2003, 123-29.
Womack, J., and Jones, D. "Beyond Toyota: How to Root Out Waste and Pursue Perfection." Harvard Business Review, 74(5), 140-158, 1996.
Cases:
XYZ Corporation**
Process Performance Measures**
H. R. Anna**
Kristin’s Cookie Case (A)**
Six Sigma Implementation at Maple Leaf Foods*
Eagle Services Asia*
Wachovia**
Sport Obermeyer*
Barilla SpA*
Zara**
Dell Inc.: Improving the Flexibility of the Desktop PC Supply Chain**
H-P Network Printer Design*
McDonald’s Corporation: Managing a Sustainable Supply Chain*
*available through Harvard publishing
**available on WebCT