Tag Archives: operations management

A Case Study on Global Leadership Operational Plan: Boeing Company

Boeing has experienced operational problems due to lack of understanding of personnel issues and unethical conduct. As an international management consultant called in to advise the Boeing Company about issues affecting its ability to optimize operations in today’s economy, this author offers a prospectus on these unique issues facing Boeing; how these issues may affect optimizing key operational elements and changes needed to enhance operations management in the future.

The Boeing Company is a well established American icon of the aeronautical industry, having started business in 1916, not long after the Wright Brothers flew the first plane in 1903 (Boeing History, First Flight). Since those early beginnings, Boeing has expanded across the United States and the world, holding major contracts with many governments and as a primary builder of the International Space Station (Integrated Defense Systems). Click here to read more…

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Business Case Studies in Operations Management

This case study presents an opportunity to identify and discuss operational management strategies pursued by Credit Union Otago in particular, and the credit union industry in general, in their bid to survive and grow, whilst aiming to achieve both their economic and social objectives.

Credit Unions are financial services co-operatives, and are its purest form, as they deal exclusively with their members. They are the real ‘people’s bank’, and have their roots in Germany in the mid nineteenth century. Two types of movement evolved from this period. The secular Schulze-Delitzsch type espoused self-help, and concentrated on urban areas with a large economic base, whilst Raiffeisen focused more on Christian ethics as the basis for forming a loan society, and restricted membership to rural workers Nevertheless common principles held for both models. Click here to read more…

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Case Study on Production and Operations Management

You have the opportunity to invest INR 100 billion for your company to develop a jet engine for commercial aircrafts. Development will span 5 years. The final product costing Rs. 500 million / unit could reach a sales potential, eventually of Rs. 2500 billion. The new engine can be placed in service 5 years from now, but only if it qualifies four years from now for certification clearing commercial use and only if it meets America’s Federal Aviation Administration’s (FAA) ever tightening standards for noise reduction.






Certification also has to be obtained from India’s Director General of Civil Aviation (DGCA). There is competition from world-class manufacturers like Pratt and Whitney and Rolls Royce who are developing competing engines. If you decide to proceed with the project, you must also determine where the new engines will be produced and develop the manufacturing facilities. If you decline to proceed, your company could invest its resources elsewhere and based on its track record, get attractive returns. Click here to read more…



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A Case Study on Production and Operations Management

Study about Production and Operations Management 

Production is the process of using people and machinery to convert materials into finished goods and services. Although the term production is sometimes used interchangeably with manufacturing, production is a broader term and includes a number of non-manufacturing processes. For example, production encompasses such extractive industries as fishing, lumber, and mining. Production also applies to the creation of services. Services are intangible outputs of the production system.

They include outputs as diverse as trash hauling, education, haircuts, tax accounting, health delivery systems, mail services, transportation, and lodging. Table 14.1 lists five examples of production systems for a variety of goods and services. Whether production results in a tangible good or an intangible service, both are created by the conversion of inputs into outputs. The conversion process may involve major changes in raw materials or a simple combining of finished parts. The butcher performs a production function by cutting up a side of beef into ground beef, steaks, chuck roasts, and other cuts of meat. General Motors combines tires, spark plugs, a battery, and thousands of other components to complete a new Saturn. These processes result in the creation of form utility. Keep reading…

A Case Study of Sales and Operations Planning

Case Study on Sales and Operations Planning

Abstract: In most organizations, supply chain planning is a cross-functional effort. Functional areas such as sales, marketing, finance, and operations traditionally specialize in portions of the planning activities, which results in conflicts over expectations, preferences, and priorities. We report findings from a detailed case analysis of a successful supply chain planning process. In contrast to traditional research on this area, which focuses on incentives, responsibilities, and structures, we adopt a process perspective and find that integration was achieved despite an incentive landscape that did not support it. By drawing a distinction between the incentive landscape and the planning process, we identify process as an additional mediator beyond the incentive landscape that can affect organizational outcomes. Thus, organizations may be capable of integration while different functions retain different incentives to maintain focus on their stakeholders’ needs.

Introduction: In most organizations, supply chain planning the administration of supply-facing and demand-facing activities to minimize mismatches and thus create and capture value is a cross-functional effort. In most cases, this means that each functional area, such as sales, marketing, finance, and operations, tends to specialize in its own portion of the planning activities. Such specialization is notorious for generating conflicts over differing expectations, preferences, and priorities with respect to how the matching of demand and supply should be accomplished (Shapiro, 1977). The reconciliation of these conflicts is generally referred to as coordination. Coordination in the operations management literatures generally assumes some agreement in the assessment of the firm’s environment and on the options available for an organizational response: the challenge centers on the details of the organizational response. keep reading..

A Case Study on Cross-Functional Alignment in Supply Chain Planning: Sales and Operations Planning

Study about Cross-Functional Alignment in Supply Chain Planning: Sales and Operations Planning

Abstract: In most organizations, supply chain planning is a cross-functional effort. Functional areas such as sales, marketing, finance, and operations traditionally specialize in portions of the planning activities, which results in conflicts over expectations, preferences, and priorities. We report findings from a detailed case analysis of a successful supply chain planning process. In contrast to traditional research on this area, which focuses on incentives, responsibilities, and structures, we adopt a process perspective and find that integration was achieved despite an incentive landscape that did not support it. By drawing a distinction between the incentive landscape and the planning process, we identify process as an additional mediator beyond the incentive landscape that can affect organizational outcomes.

Introduction: In most organizations, supply chain planning—the administration of supply-facing and demand-facing activities to minimize mismatches and thus create and capture value—is a cross-functional effort. In most cases, this means that each functional area, such as sales, marketing, finance, and operations, tends to specialize in its own portion of the planning activities. Such specialization is notorious for generating conflicts over differing expectations, preferences, and priorities with respect to how the matching of demand and supply should be accomplished (Shapiro, 1977). The reconciliation of these conflicts is generally referred to as coordination. Coordination in the operations management literatures generally assumes some agreement in the assessment of the firm’s environment and on the options available for an organizational response: the challenge centers on the details of the organizational response. Keep reading…

A Case Study of Consensus Forecasting in Supply Chain Planning

A Case Study about Consensus Forecasting in Supply Chain Planning: Managing Functional Biases in Organizational Forecasts

Abstract: To date, little research has been done on managing the organizational and political dimensions of generating and improving forecasts in corporate settings. We examine the implementation of a supply chain planning process at a consumer electronics company, concentrating on the forecasting approach around which the process revolves. Our analysis focuses on the forecasting process and how it mediates and accommodates the functional biases that can impair the forecast accuracy. We categorize the sources of functional bias into intentional, driven by misalignment of incentives and the disposition of power within the organization, and unintentional, resulting from informational and procedural blind spots. We show that the forecasting process, together with the supporting mechanisms of information exchange and elicitation of assumptions, is capable of managing the potential political conflict and the informational and procedural shortcomings.

Introduction: The importance of forecasting for operations management cannot be overstated. Within the firm, forecast generation and sharing is used by managers to guide the distribution of resources, to provide targets for organizational efforts, and to integrate the operations management function with the marketing , sales, and product development (Griffin and Hauser, 1996; Wheelwright and Clark, 1992) functions. Errors in forecasting often cross the organizational boundary and translate into misallocation of resources that can impact shareholders’ return on investment, and affect customers’ perception of service quality. Across the supply chain, forecast sharing is a prevalent practice for proactively aligning capacity and managing supply (Cachon and Lariviere, 2001; Terwiesch et al., 2005). Over the past five years, demand/supply planning processes for planning horizons in the intermediate range have been receiving increasing attention. Keep reading…

Case Study Operations Management: the Wincanton


Wincanton: the nature of the business

Wincanton’s mission is ‘delivering supply chain solutions across Europe’. The company is customer focussed: its aim is to help its customers become more efficient and more successful by enabling them to set up facilities and systems that guarantee them the supplies they require, when they need them.


Wincanton is one of the leading logistics firms in Europe and it is the UK’s second largest logistics company with 13% of the overall market. It is the UK market leader in grocery distribution, automated warehousing and petrochemical distribution. Click here to read more…

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A Case Study on Lean Planning in the Semi-Process Industry

A Case Study about Lean Planning in the Semi-Process Industry

Abstract: The lean approach is an idealizing improvement approach that has an enormous impact in the field of Operations Management. The approach is basically very process oriented and there was less attention first for planning and control, this being the profession of dealing with all kind of non-ideal manufacturing and supply-chain restrictions. During the last years, however, planning and control have been integrated in the lean approach, leading to the concept of lean planning. Cyclic schedules form an important element of lean planning, certainly in the (semi-) process industry.





Introduction: During the last years, planning and control has been integrated rather well in the lean approach. Lean planning has an important impact in practice already. This paper describes a lean planning case study in a semi-process production plant. The case study is interesting in itself and illustrates well how lean planning can be developed in practice. It is also used, however, to show how context dependent the mechanisms are that are coupled with lean planning. That makes the results of lean interventions difficult to predict. The case study stresses in this way the complexity of developing the lean approach into theory.

Click here to read more on Semi-Process Industry