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Harvard Business Review Brief Cases — Operations Management
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   Eliminate the Middleman?
  Add   View  8 pp.  Case Study
Author(s): Huang, Ming-Hui
Publication Date: 03/01/2006
Product Type: Harvard Business Review Article
HBS Number: R0603X
Geographic Setting: China; Taiwan; United States Industry Setting: Consumer electronics
Subjects: Brief case; Cross cultural relations; Globalization; HBR case discussions; Outsourcing; Sales strategy; Sourcing; Suppliers; Supply chain
Academic Discipline: Operations management
Product Description: Greg Jamison, the head of global sourcing at USTech, has a complicated situation on his hands. The U.S. consumer electronics giant has long outsourced much of the design and production of its branded offerings to TaiSource, an original design manufacturer, or ODM, in Taiwan. TaiSource, in turn, has moved most of its manufacturing to Beijing, giving USTech many of the cost benefits — and none of the hassles — of sourcing in China. But commodity producers are squeezing USTech's margins, and higher end rivals are gaining market share, forcing the company to rethink its sales strategy in China and its relationship with TaiSource. Greg values the close bond his firm has forged with the ODM, but he knows the sole-source model has become an anomaly in the industry. And other USTech executives want to explore direct sourcing in China and learn about other Taiwanese ODMs, known for their high quality. When Greg hires a longtime TaiSource employee to get a feel for the fast-growing China market and scout out other suppliers in China and Taiwan, relations between the two companies start to fray. Moreover, there are signs that TaiSource plans to market its own branded goods in China. Will TaiSource and USTech end up as competitors? How can USTech protect its relationship with TaiSource while it explores sourcing and sales opportunities in Asia? May be used with: (R0603Z) Eliminate the Middleman? (Commentary for HBR Case Study).
  Add   View  12 pp.  Case Study and Commentary
Author(s): Huang, Ming-Hui; Riggs, Bruce K.; Lynn, Barry C.; Dongsheng, Wang; Gaffney, Paul
Publication Date: 03/01/2006
Product Type: Harvard Business Review Article
HBS Number: R0603A
Geographic Setting: China; Taiwan; United States Industry Setting: Consumer electronics
Subjects: Alliances; Brief case; Cross cultural relations; Globalization; HBR case discussions; Outsourcing; Sales strategy; Sourcing; Suppliers; Supply chain
Academic Discipline: Operations management
Product Description: Greg Jamison, the head of global sourcing at USTech, has a complicated situation on his hands. The U.S. consumer electronics giant has long outsourced much of the design and production of its branded offerings to TaiSource, an original design manufacturer, or ODM, in Taiwan. TaiSource, in turn, has moved most of its manufacturing to Beijing, giving USTech many of the cost benefits — and none of the hassles — of sourcing in China. But commodity producers are squeezing USTech's margins, and higher end rivals are gaining market share, forcing the company to rethink its sales strategy in China and its relationship with TaiSource. Greg values the close bond his firm has forged with the ODM, but he knows the sole-source model has become an anomaly in the industry. And other USTech executives want to explore direct sourcing in China and learn about other Taiwanese ODMs, known for their high quality. When Greg hires a longtime TaiSource employee to get a feel for the fast-growing China market and scout out other suppliers in China and Taiwan, relations between the two companies start to fray. Moreover, there are signs that TaiSource plans to market its own branded goods in China. Will TaiSource and USTech end up as competitors? How can USTech protect its relationship with TaiSource while it explores sourcing and sales opportunities in Asia?
   Just in Time for the Holidays
  Add   View  6 pp.  Case Study
Author(s): McNulty, Eric
Publication Date: 12/01/2005
Product Type: Harvard Business Review Article
HBS Number: R0512X
Industry Setting: Toy industry
Subjects: Brief case; Consumer behavior; Demand analysis; Forecasting; HBR case discussions; Supply & demand; Supply chain
Academic Discipline: Operations management
Product Description: It's the busiest time of year for North Pole Workshops. Production is in high gear, and the elves are on overtime in the sprint toward Christmas. But an unexpected spike in demand for one toy may leave children around the world disappointed on Christmas morning, whether they've been naughty or nice. At the same time, another toy's popularity threatens to plummet, leaving Santa and his elves faced with the prospect of millions of unloved playthings left in the warehouse. This is the third time in three years that Santa's elves have been caught off guard by a toy's sudden surge in popularity. Earlier in the season, even just a month ago, it would have been possible to find capacity, but now every line is running full tilt. “Oh, it used to be so simple,” Santa ruminates. “Wooden blocks, a train set, a doll...Now we have more than a million SKUs....Trends jump across the oceans in an instant. I've asked the elves in the field to go beyond reporting on kids' behavior and start trend spotting. I've invested in software. But still I can't help thinking that one of these days we're not going to be able to do it.” Santa and his staff are determined not to disappoint the children, but North Pole Workshops must find a way to improve its response to shifts in demand. Should Santa invest in better forecasting? Or does the answer lie in a more flexible supply chain? May be used with: (R0512Z) Just in Time for the Holidays (Commentary for HBR Case Study).
  Add   View  10 pp.  Case Study and Commentary
Author(s): McNulty, Eric; Johnson, M. Eric; Brandstatter, Horst; Hausman, Warren H.; Omrod, Anne
Publication Date: 12/01/2005
Product Type: Harvard Business Review Article
HBS Number: R0512A
Industry Setting: Toy industry
Subjects: Brief case; Consumer behavior; Demand analysis; Forecasting; HBR case discussions; Supply & demand; Supply chain
Academic Discipline: Operations management
Product Description: It's the busiest time of year for North Pole Workshops. Production is in high gear, and the elves are on overtime in the sprint toward Christmas. But an unexpected spike in demand for one toy may leave children around the world disappointed on Christmas morning, whether they've been naughty or nice. At the same time, another toy's popularity threatens to plummet, leaving Santa and his elves faced with the prospect of millions of unloved playthings left in the warehouse. This is the third time in three years that Santa's elves have been caught off guard by a toy's sudden surge in popularity. Earlier in the season, even just a month ago, it would have been possible to find capacity, but now every line is running full tilt. “Oh, it used to be so simple,” Santa ruminates. “Wooden blocks, a train set, a doll...Now we have more than a million SKUs....Trends jump across the oceans in an instant. I've asked the elves in the field to go beyond reporting on kids' behavior and start trend spotting. I've invested in software. But still I can't help thinking that one of these days we're not going to be able to do it.” Santa and his staff are determined not to disappoint the children, but North Pole Workshops must find a way to improve its response to shifts in demand. Should Santa invest in better forecasting? Or does the answer lie in a more flexible supply chain?
   The Tug-of-War
  Add   View  8 pp.  Case Study
Author(s): Sheffi, Yossi
Publication Date: 09/01/2005
Product Type: Harvard Business Review Article
HBS Number: R0509X
Industry Setting: Apparel industry
Subjects: Centralization; Change management; Leadership; Logistics; Operations management; Outsourcing; Supply chain
Academic Discipline: Operations management
Product Description: Jack Emmons, the CEO of Voici Brands, knew his apparel company needed a supply chain overhaul. Over the past couple of years, sales had dropped because of late deliveries, stock-outs, and other supply problems. Meanwhile, a major competitor had significantly reduced its time to market and boosted its bottom line by outsourcing all its product lines to a dazzlingly efficient “supply chain city” in Shanghai. Unfortunately, Jack's company was just too decentralized to use the supply chain city. Each of Voici's five units was like a subsidiary, with its own legacy, management, and suppliers. The unit heads (particularly Margie Rosen) wouldn't sit still for a supply chain consolidation; they had worked too hard to forge vendor relationships. Inspired by a magazine article, Jack decided to appoint a supply chain czar to oversee changes in logistics and procurement. He could hire Ravi Chandry, an aggressive outsider who had centralized supply chain operations for the world's second-largest snack food and beverage company. Or he could promote Tony Rini, a highly capable, trustworthy Voici veteran who had no experience consolidating supply operations but could win hearts and minds. Ravi told Jack that only a Rottweiler could do the job right. Tony lobbied for a more cautious approach: Start with low-hanging fruit, get a few quick wins, then move on to other areas. What kind of leadership will get Voici's units to pull together?
  Add   View  12 pp.  Case Study and Commentary
Author(s): Sheffi, Yossi; Mozaffar, Shakeel; Moffat, Robert W., Jr.; Blascovich, John D.; LaHowchic, Nick
Publication Date: 09/01/2005
Product Type: Harvard Business Review Article
HBS Number: R0509A
Industry Setting: Apparel industry
Subjects: Centralization; Change management; Leadership; Logistics; Operations management; Outsourcing; Supply chain
Academic Discipline: Operations management
Product Description: Jack Emmons, the CEO of Voici Brands, knew his apparel company needed a supply chain overhaul. Over the past couple of years, sales had dropped because of late deliveries, stock-outs, and other supply problems. Meanwhile, a major competitor had significantly reduced its time to market and boosted its bottom line by outsourcing all its product lines to a dazzlingly efficient “supply chain city” in Shanghai. Unfortunately, Jack's company was just too decentralized to use the supply chain city. Each of Voici's five units was like a subsidiary, with its own legacy, management, and suppliers. The unit heads (particularly Margie Rosen) wouldn't sit still for a supply chain consolidation; they had worked too hard to forge vendor relationships. Inspired by a magazine article, Jack decided to appoint a supply chain czar to oversee changes in logistics and procurement. He could hire Ravi Chandry, an aggressive outsider who had centralized supply chain operations for the world's second-largest snack food and beverage company. Or he could promote Tony Rini, a highly capable, trustworthy Voici veteran who had no experience consolidating supply operations but could win hearts and minds. Ravi told Jack that only a Rottweiler could do the job right. Tony lobbied for a more cautious approach: Start with low-hanging fruit, get a few quick wins, then move on to other areas. What kind of leadership will get Voici's units to pull together?
   They Bought In. Now They Want to Bail Out.
  Add   View  8 pp.  Case Study
Author(s): McNulty, Eric
Publication Date: 12/01/2003
Product Type: Harvard Business Review Article
Product Description: For teaching purposes, this is the case-only version of the HBR case study. The commentary-only version is Reprint R0312Z. The complete case study and commentary is Reprint R0312A. Chief Technology Officer Barry Golding is meeting with Mathews & Co.'s department heads to ask for another round of investment so he can begin implementing customer relationship management software at the menswear chain. For months, he has been the CRM project's cheerleader, and it is Barry whose reputation is at stake. He quickly loses control of the meeting. One department head is disappointed that so few of her wish list items are in Barry's latest plan. Another is sour on the project now that he's discovered he won't get any payback for two years. The CEO, who has given the project his blessing, isn't present to back up Barry. Barry can't see what he could have done to keep the department heads on his side. But a friend later tells him about what she calls the ``blue sky paradox: `` You have to get people to dream big to sell a project, but by doing that you set them up to be disappointed. What can Barry do to save the project? In R0312Z, commenting on this fictional case study are Nathaniel Leonard, the supply chain director of Goodyear's Engineered Products business; Andrew McAfee, an assistant professor at Harvard Business School; Barry J. Gilway, the executive vice-president of Zurich North America Services; and John Freeland, the managing partner of Accenture's CRM practice.
HBS Number: R0312X
Subjects: Customer relations; Customer retention; HBR Case Discussions; Information technology; Leadership; Loyalty; Market segmentation; Project management
Academic Discipline: Operations management
  Add   View  12 pp.  Case Study and Commentary
Author(s): McNulty, Eric
Publication Date: 12/01/2003
Product Type: Harvard Business Review Article
Product Description: Chief Technology Officer Barry Golding is meeting with Mathews & Co.'s department heads to ask for another round of investment so he can begin implementing customer relationship management software at the menswear chain. For months, he has been the CRM project's cheerleader, and it is Barry whose reputation is at stake. He quickly loses control of the meeting. One department head is disappointed that so few of her wish list items are in Barry's latest plan. Another is sour on the project now that he's discovered he won't get any payback for two years. The CEO, who has given the project his blessing, isn't present to back up Barry. Barry can't see what he could have done to keep the department heads on his side. But a friend later tells him about what she calls the ``blue sky paradox: `` You have to get people to dream big to sell a project, but by doing that you set them up to be disappointed. What can Barry do to save the project? Commenting on this fictional case study are Nathaniel Leonard, the supply chain director of Goodyear's Engineered Products business; Andrew McAfee, an assistant professor at Harvard Business School; Barry J. Gilway, the executive vice-president of Zurich North America Services; and John Freeland, the managing partner of Accenture's CRM practice. THIS HBR CASE STUDY INCLUDES BOTH THE CASE AND THE COMMENTARY. FOR TEACHING PURPOSES, THE REPRINT IS ALSO AVAILABLE IN TWO OTHER VERSIONS: CASE STUDY ONLY, REPRINT R0312X, AND COMMENTARY ONLY, REPRINT R0312Z.
HBS Number: R0312A
Subjects: Customer relations; Customer retention; HBR Case Discussions; Information technology; Leadership; Loyalty; Market segmentation; Project management
Academic Discipline: Operations management
   Too Far Ahead of the IT Curve?
  Add   View  8 pp.  Case Study
Author(s): Glaser, John P.
Publication Date: 07/01/2007
Product Type: Harvard Business Review Article
HBS Number: R0707X
Subjects: Customer service; Emerging technologies; HBR case discussions; IT infrastructure; Project strategy; Technological innovation; Technological planning
Academic Discipline: Operations management
Product Description: Peachtree Healthcare has major IT infrastructure problems, and CEO Max Berndt is struggling to find the right fix. He can go with a single set of systems and applications that will provide consistency across Peachtree's facilities but may not give doctors enough flexibility. Or he can choose service-oriented architecture (SOA), a modular design that will allow Peachtree to standardize incrementally and selectively but poses certain risks as a newer technology. What should he do? Four experts comment on this fictional case study in R0707A and R0707Z, authored by John P. Glaser, CIO for Partners HealthCare System. George C. Halvorson, the chairman and CEO of Kaiser Permanente, warns against using untested methodologies such as SOA in a health care environment, where lives are at stake. He says Peachtree's management must clarify its overall IT vision before devising a plan to achieve each of its objectives. Monte Ford, the chief information officer at American Airlines, says Peachtree can gradually replace its old systems with SOA. An incremental approach, he points out, would not only minimize risk but also enhance flexibility and control, and would allow IT to shift priorities along the way. Randy Heffner, a vice president at Forrester Research who focuses on technology architectures for computer-based business systems, thinks SOA's modular approach to business design would best meet Peachtree's need for flexibility. He says that Peachtree's CIO sees SOA as a new product category but should instead view it as a methodology. John A. Kastor, a professor at the Uni
  Add   View  12 pp.  Case Study and Commentary
Author(s): Glaser, John P.; Halvorson, George C.; Ford, Monte; Heffner, Randy; Kastor, John A.
Publication Date: 07/01/2007
Product Type: Harvard Business Review Article
HBS Number: R0707A
Subjects: Customer service; Emerging technologies; HBR case discussions; IT infrastructure; Project strategy; Technological innovation; Technological planning
Academic Discipline: Operations management
Product Description: Peachtree Healthcare has major IT infrastructure problems, and CEO Max Berndt is struggling to find the right fix. He can go with a single set of systems and applications that will provide consistency across Peachtree's facilities but may not give doctors enough flexibility. Or he can choose service-oriented architecture (SOA), a modular design that will allow Peachtree to standardize incrementally and selectively but poses certain risks as a newer technology. What should he do? Four experts comment on this fictional case study in R0707A and R0707Z, authored by John P. Glaser, CIO for Partners HealthCare System. George C. Halvorson, the chairman and CEO of Kaiser Permanente, warns against using untested methodologies such as SOA in a health care environment, where lives are at stake. He says Peachtree's management must clarify its overall IT vision before devising a plan to achieve each of its objectives. Monte Ford, the chief information officer at American Airlines, says Peachtree can gradually replace its old systems with SOA. An incremental approach, he points out, would not only minimize risk but also enhance flexibility and control, and would allow IT to shift priorities along the way. Randy Heffner, a vice president at Forrester Research who focuses on technology architectures for computer-based business systems, thinks SOA's modular approach to business design would best meet Peachtree's need for flexibility. He says that Peachtree's CIO sees SOA as a new product category but should inst