Operations Management Cases
Achieving Organizational Control Through Surveillance
Abstract
Hope Health delivers quality care with compassion. The CEO, Else, is one of Europe’s foremost business leaders and most successful entrepreneurs with nearly three decades of experience in industries including health care, consulting, technology, outsourcing, education, and e-commerce. Hope Health brings world class health care to patients’ homes and aims to make primary health care not only more accessible, but also more affordable and accountable to their patients’ needs.
Hope Health makes it possible for patients to receive hospital-quality health care in the comfort of their homes. The company facilitates lab tests and health equipment rentals, making health care more accessible to their patients. The lab test aspect of the business is critical to determining the root cause of physical issues. This case relates to the lab part of the business. Hope Health offers lab packages, individual lab tests and prescribed diagnostic tests in the patient’s home. Expert phlebotomists collect the lab samples during a home visit and process the sample at a certified laboratory, the location for this case. Lab reports are shared with patients in less than 48 hours, and so specimens cannot be lost, incorrectly tested, or be damaged due to environmental conditions. In this case, surveillance and control tactics are used to find bottlenecks or risk-oriented conditions so that supervisors can mediate negative customer perceptions of the company.
Always On Strategy for the Big Box Store
Abstract
Shift schedules have been difficult for employees due to fatigue and sleep deprivation. When businesses want to use existing physical space and infrastructure for all the hours of the day, shifts, schedules are discussed. If there are hours in the day where the business is closed it is difficult to fill these shifts. Financially, the use of the sunk costs during the hours when they are not used allows for incremental revenue at minimal incremental cost, outside of labor. GDI decided to take the leap to 24-hour operations. To do this, a shift configuration would need to be chosen that would not reduce performance or increase turnover. In this case, a decision is made that would minimize the negative effects on the business.
Balancing Revenue, Volume, and Price
Abstract
Just Tents, Inc. specializes in large tents. They are manufactured in Wisconsin from fine materials manufactured in various parts of the U.S. The employees at Just Tents have worked with their vendors for many years and have been able to create several tent models using materials from their loyal vendors. Even though pricing pressures have been significant, the financial results from the company have been good as more people are taking their families out away from the cities for adventures and family vacations. Many families want to have a tent that meets their needs but needs vary, and most tent manufacturers are not accommodating. An online design tool has been integrated into the Just Tents website such that customers can build and order the tent that they want with the features that are interesting to them. Once they have virtually built their tent, they pay for it and it goes into production. Once the tent has been manufactured, it is sent to the purchaser’s house that submitted the order. This case discusses the financial results for Just Tents and relates the volume with the revenue and the price structure as represented on a financial scorecard. This information is used to make critical decisions in the company leading to growth strategies and operational performance.
Creating a Media Platform to Resolve Distribution Hurdles
Abstract
A successful investor wanted to help the community of independent filmmakers distribute their content. Unfortunately, the cost was a barrier and so the content remained unavailable to the public. Movie viewers were complaining that the major studios were producing content that was full of special effects but bland when it came to the storyline. Many viewers wanted to have a different experience. Independently produced titles were the answer to this unmet need. The solution was to establish a unique platform that carried content from various independent film distributors. A company was engaged to create the platform. They prepared all the assets and uploaded them onto a platform from which viewers could select the content that interested them. The user interface (UI) for the portal was attractive and intuitive. It was not overly complicated, but it separated the titles by genre for easy searching. Poster art was used for selection and a trailer gave the potential viewer the chance to see what they might purchase before doing so. Within three months the team was able to leverage the orders that Jamal routed to BPP resulting in a platform with 7000 titles (movie packages) that many viewers had not been able to see.
Data Storage Cost Optimization using a Tiered Data Taxonomy
Abstract
Storage is a significant cost in both physical and digital workflows. Marvin’s Marketing had a niche market in the infomercial market. They did the finishing work on productions that were made by infomercial production companies. The final versions were distributed in both high definition and standard definition. These assets were mastered to optimize their quality and then assembled in a package for delivery to broadcasters around the world. Their finished content included infomercials from car washing products to exercise equipment. The content did not matter. What mattered was that the package that included all the relevant files was of great quality and was delivered on time to broadcasters. Marvin’s Marketing had a reputation for both fine and fast work; however, in a high-volume business, the cost had to be managed. The files that were being processed consumed a significant amount of storage space. These costs had to be optimized.
Evolution in Hospitality to Scale Hotel Properties
Abstract
Hotels have evolved since the sixties. Chains have sprung up and had significant success while others have died off. New challenges have now emerged that may rock the foundation of hotels and motels as we know them. Technology has made it possible to stay at a house for the price of a motel room. This transaction can happen without seeing an attendant. While hotels are not the same as private houses, something can be learned from the drain of hotel customers in favor of more automated solutions. Technology needs to increasingly be considered as competitors become strong by enhancing the experience of their guests. Premier Stay Hotels is challenged with upgrading their properties and moving into new boutique-style properties that penetrate new markets. The Chief Strategy Officer uses McKinsey’s 7-Step change plan to enhance the health and future outlook of the company.
Hardening Processes for Growth: Regional Airways
Abstract
The economic indicators suggest that people will have more disposable income over the next four years than they had previously. This will result in more air travel. While there will be an increase in business travel, there will also be an increase in leisure travel. Business travelers are less reactive to price fluctuations than leisure travelers are. Regional Airways (RA) is poised to take advantage of these current trends by focusing on pre-flight and in-flight technologies. RA will add to their destinations popular and trending vacation locations in Canada and Central America.
Managing Property Risk While Building A Summer Camp
Abstract
Camps are typically viewed as very safe environments. Even so, they are not immune to violent acts and natural hazards. Many camps don’t consider the risks that are present on their properties. FBI data shows that 66% of active shooters, based on data collected from 1995 and 2013, are between the ages of 14 and 18. These criminals are the same age as the children that typically attend schools and camps. The data also shows that 60% of these situations are stopped by others and only 3% are stopped by police. This is just one area of risk at summer camps. Many other risks are identified in this case including natural threats. Camp Hope is being built to help chronically ill children. However, the camp is located 45 miles from capable medical facilities. Natural events, like blizzards that block roads, may cause a child to be delayed in arriving at a hospital. To deal with these risks, a method to assess the risk at the property is holistically put forward along with a way to assess if the risks have been mitigated. Proper planning is necessary to ensure that risk threats are dealt with. In this case, a camp is in the process of being prepared for campers. In preparation for successful camping experiences, a number of scenarios are considered based on threats that have happened in the area over a ten-year period. If the camp is able to mitigate the risks that are present the campers and all stakeholders can reduce the confusion and stress that would otherwise come from an overwhelming situation.
Proof of Delivery Download Cycle-Time Reduction
Abstract
MediaCorp was using 125 freight agents (think brokers) including 25 direct-to-customer (DTC) carriers to move freight across the U.S. Within this vendor pool only six agents and two DTC carriers consistently transmit their proof of delivery documents (POD’s) within 12 hrs. The goal, in this case, is to reduce the time between physical delivery and POD transmission such that all POD’s are delivered within 12 hours at a contractually obligated 95% success rate. This improvement will improve the company’s ability to provide customers with POD’s in a timely manner. In this case, the agents and the DTC’s performance will be measured. The current performance during the last 12 months was that only 4.8% of the agents used and 8% of the DTC carriers used transmitted their POD’s within 12 hours. If the POD’s are transmitted within contractual SLAs (service level agreements) then the cash flow is enhanced as all involved in the supply chain can be paid faster.
Reliability Improvement Through Operational Maturity
Abstract
ChipMax was growing, but this relatively old company needed to change the way it handled reliability in its processes. The old ways were just that, old. The company was able to improve its process reliability by using the Capability Maturity Model Integration scale to measure existing processes. Consequently, a roadmap that followed the maturity model could be created that resulted in better performance. A change model was used to manage the transition from an immature state to a mature state. The consequences were reduced material and labor costs and improved profits and cycle times. The best outcome was that trust was created between all stakeholders due to predictability in the supply chain.
Rental Car Congestion Mitigation
Abstract
Another branch was opened, and Easy Rent-a-Car was in business again in a new location. Fred, the site manager, was overseeing the branch and it was chaotic. This site office was placed in a town outside of a large city and there were many hotels in the area. This was also a great place for distribution centers and their suppliers as several critical interstate highways cross paths nearby. The universities in the area contributed to the workforce. Each of these aspects of the location would be driving up rental revenues. This branch might be the fastest growing site in the company. If Fred could manage the growth, he had a great chance of being the model site. He had an entrepreneurial spirit and was given some leeway to figure out how to handle the growth. This case reveals the tactical actions he took to increase productivity and manage the growth.
Resisting Caffeine is Futile at StarCafé
Abstract
Star Burger is one of the largest foodservice providers and quick-service restaurants on the planet. As competitors have risen and consumer preferences continue to shift, Star Burger is faced with the dilemma of how to maintain and grow its market share. As modern customers increasingly demand more personalized options, as well as health-conscious options, upper management must adapt the product offering to reflect these trends, as well as increase the quality of ingredients. Star Burger introduced the concept of the StarCafé. These developments represented a significant shift in the way Star Burger has operated. The training and development initiatives and their execution are of paramount importance. A critical aspect of the deployment plan is to understand resistance. Consequently, one of the best offensive strategies an organization being changed can develop is a resistance mitigation plan to help minimize the potential losses caused by unintended consequences or lost revenue due to an inability of the company to adapt.
Scanning the Mexican Food Business Environment
Abstract
MMG was a leading Mexican-style restaurant with big plans to expand worldwide. Mexican food is popular in many countries, it is easy to make, and it has healthy ingredients. The founder of MMG, Steve Martinez, started as a food stand owner near a manufacturing center. The company grew into an international organization with restaurants in many countries. It was time now to grow the company and saturate markets that did not have access to Steve’s cuisine. The founder decided to use environmental scans to help them with their strategic planning. The information from the scans exposed risks and opportunities. This was valuable information as decision-makers were deciding in which countries expansions should take place.
Using Squatters Rights to Drive Space Utilization
Abstract
A startup that was scaling quickly wanted to use its space as efficiently as possible while it grew. The activity level was very high, and they wanted to also make sure that their talent was effectively using their energy to push the company forward. At the same time, space was at a premium. The location had recently been acquired and a significant amount of money had been invested in infrastructure and the current setup of the facility. The physical space included both open areas and rooms on the perimeter of the building. SARA Scientific created tools for analytical devices. The algorithms in the software analyzed data produced by laboratory equipment about equipment performance and utilization. The overall equipment effectiveness (OEE) was critical to cost efficiencies in labs around the world. An increase in OEE could significantly boost productivity.
Alternative Bioenergy for the Energy Starved
Abstract
Algoil, LLC is an energy company. They create a variety of fuels from algae. A unique process, genetically modified algae, and plant design rigor enable Algoil to be profitable while helping the energy-starved population in South America and Africa. Algoil has used a scaling methodology to minimize processing plant design risk. This has enabled Algoil to duplicate facilities in two continents with three different capacity-related sizes to choose from. At the core of the endeavor is a technology that is both biological and process-related. These technologies are exploited in a commercial context leveraging country-specific development plans and vision-based initiatives. In this case, the development of a prototype facility and portfolio of products must be scalable. The case discusses methodologies used to scale biochemical processing facilities while minimizing the associated risk.
Business Development for Bioengineered Organs
Abstract
BioPrint had developed a new technology that made it possible to print human organs using cells from the person who would be the recipient. Patient-matched organs made it possible to eliminate the difficulties associated with organ rejection and significantly improved the short- and long-term mortality rate of transplant recipients. With this success came the need to monetize the research and development that was proven to be viable through human trials. This case explains how BioPrint, Inc. used a business development framework to help their sales prospects take the journey from awareness to revenue. The commercialization of BioPrint’s products helped patients have a better quality of life by reducing the cost of the transplant experience. BioPrint had a built-in market from the backlog of people who were waiting for an organ. Time was of the essence for all stakeholders.
Scalable Vertical Farms to Reduce Food Deserts
Abstract
Given the increase in population, there may be a situation in the near future where food shortages occur because of a shrinking supply of productive arable land and the increase in food demand. This case discusses a solution to the problem through the use of vertical scalable farming that significantly increases the supply of food by introducing efficiencies that are better for the environment than current agricultural methods. TrueFarm is introducing a vertical farming method that makes anyone an indoor farmer. The farm can be as big as the farmer wants it to be. The method and the economic benefits are discussed. In addition, the impact on quality of life and the environmental benefits of indoor vertical farming are discussed in the context of spatial economic theory.
Tracking Children to Stop Trafficking
Abstract
TreckID was a company with a mission. Their CEO had recently visited and become aware of human trafficking and wanted to make an impact at home and abroad. This case discusses how a product development team used product development and manufacturing methods to launch a product that was robust against the need and reliable not to fail. It was possible that this product will only be needed once. When the time comes, it will need to perform. Design for Manufacturability and Assembly is used to optimize both the reliability and the cost of manufacturing the product. A multi-disciplined design team was organized to launch this product with a purpose.
Building on a Humanitarian Legacy
Abstract
A company that was built on a legacy of humanitarian service decided to build its own plane based on its knowledge of operating requirements in remote areas. With many thousands of hours of experience, STOL Supreme Aircraft Company was able to map out opportunities in international markets. Their new plane, the Arava, was able to accommodate niche services in an expansive portfolio. With the prospect of expansion comes risk and reward. The company had to consider the opportunity in light of all the variables that needed consideration. Ultimately, they were able to manage significant expansion and growth while increasing profits per unit sold.
Competing to Reduce Congestion through Ridesharing
Abstract
Transportation Demand Management (TDM) has become more crucial with the megatrend of urbanization and the increase in economic activity around urban centers. Some smaller towns have grown without increasing the ability of their infrastructure to accommodate the increase in traffic. Employees and employers can benefit from enterprise-based ridesharing. How can this work? This case describes a company that developed an enterprise rideshare platform that benefitted all stakeholders. The results of the platform were a competitive advantage in a more crowded market. Rideshare solution providers are emerging with new services that are designed to accommodate niche markets.
Expanding through Financial and Portfolio Optimization
Abstract
Jack’s Burgers had grown significantly since its founding in the 1950s. A unique approach was taken with its international expansion in that Jack owned all of the real estate that the franchises operated on. Not only did Jack receive rent from the franchises but the company also dealt with cash flow and commodity purchasing in foreign currencies. Jack’s treasury department had to create a foreign exchange hedging policy that optimized profits. Failure in this area could easily eliminate sometimes thin profit margins. This case discusses the valuable exercise of dealing with foreign exchange risk in an international business scenario.
System Convergence at a University
Abstract
The physical network infrastructure in a network is essential for the university to function like a system of interconnected parts. The extent to which the parts of the university are connected through an ERP system indicates the efficiency of the university system. Data and access can be shared resulting in efficiencies and an improved user experience. When the growth of the university is considered then scaling adds new challenges. Not only are there more users but there are more services. IT managers need to think beyond the typical network topology and existing connected devices to include a social media atmosphere at the university. Information shortages hamper decision-making and increase the instability of the system.
Recruiting Leaders to Grow an Automobile Company
Abstract
A vintage car company wanted to expand its market share and become cash-flow positive. To do this they would have to change their organization’s design and include several Vice Presidents as part of the structure. Mr. Martin was not able to grow the company that manufactures handmade automobiles with a new strategy. The new strategy includes setting up new marketing channels and implementing automation that reduces cost. This case discusses the critical attributes of the company and describes a talent acquisition strategy that will allow the company to expand significantly.
Interactive Digital Signage using Digitally Addressable Surfaces
Abstract
A company has spent considerable effort figuring out how to paint displays on continuous surfaces. This technology has opened up a significant market for them in digital signage. A unique technological advance has made it possible to display advertising on these paint-on surfaces. While this challenge is behind them, the next one is daunting. Swansea Digital now needs to take the advertising content used in static and interactive displays and prepare the elements into an asset package that will be used by a centralized distribution system that will manage the content on each display at any location globally. The content is often localized to accommodate language, censorship, and cultural differences. These packages need to be prepared from a content library continuously curated for the advertising company's clients. The schedule must be adhered to for SD to be profitable in this market. Creating an optimized workflow with a suitable throughput will be essential. This case discusses their approach to leveraging the opportunity.
Recycling Large Electric Vehicle Batteries
Abstract
Electric vehicles (EVs) will likely have a market share in vehicle sales in less than 20 years. The lifespan of the batteries that propel these vehicles is about ten years, although this might change with new technologies. Batteries are already starting to pile up as many have achieved the end of life. The ability to recycle the lithium-ion batteries currently being used will keep them out of landfills and keep their toxic materials from polluting groundwater. Pyro-Recyclers has developed an economically feasible workflow that will reduce the need for both mining new raw materials and the use of landfills as the terminal location of spent batteries. A recycling process needs to be implemented in the battery supply chain that has the necessary recovery efficiency in returning critical materials to battery reconstruction at a cost less than the cost to make the battery using newly mined materials.
Abstract
Global supply chains are dependent on logistics constraints and manufacturing uptime. Disruptions in the transportation systems used to move raw materials used in manufacturing can be disrupted by several constraints and random events. Government policies can disrupt supply chains that are dependent on manufacturing production. Speedster Athletics is dependent on a global supply chain and has lost the ability to bring a product to distributors due to constraints. Supply chain issues have caused them to have a backlog of 10's of millions of shoes, leading to loyal customers leaving for other brands that can deal with supply issues. These constraints will need to be understood and mitigated to increase throughput to deal with the backlog. Throughput accounting can be used to measure the impact of the actions taken to achieve minimal inventories and consistent flow aligned with demand. A balanced scenario is the most profitable situation for Speedster Athletics.
Marketing an Integrated System of Products
Abstract
Product launches are fraught with risk. While the product's usefulness is essential, getting the product in front of potential purchasers and then acquiring the product at a price that makes everyone happy is complicated. In this case, a group of interactive products was invented. The product is an opportunity to solve whatever someone wants to hang from a surface (generally a vertical one). A variety of items could be hung, removed, and replaced quickly due to a proprietary snap design in each of the items in either male or female form. Snap Lights was working on launching this product, which had become mature through feedback from experts in a commercial context who used large quantities of related products and input obtained from individual users of similar products. The portfolio offered by Snap Lights made this type of work easier. Their marketing strategy for getting the product in front of consumers to make a purchase is discussed. Further discussion includes extending the lifecycle of the system of products through incremental additions to the system, creating additional value.
