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Examines a struggling IT outsourcing project from the perspective of the IT services provider--Hrad Technika. When used in conjunction with Tegan c.c.c. (9-609-038), it provides an opportunity to see both sides of the issue. When Hrad enters into a contract to create a new accounts payable system for Welsh toy distributor, Tegan, the outsourcing firm from the Czech Republic views the project as another step in its progression towards delivering higher value services. Unfortunately the project goes poorly, and Hrad is left with the decision of how to rescue the relationship and avoid a similar problem in the future. The case allows the examination of how to manage an outsourcing project and permits a general discussion about IT outsourcing.

Examines a struggling IT outsourcing project from the perspective of the customer--Tegan. It should be used in conjunction with Hrad Technika (9-609-039), which illustrates the supplier's point of view. When Tegan, a Welsh toy distributor, outsources the development of a new accounts payable system to Hrad Technika, a growing outsourcing firm from the Czech Republic, Tegan believes they are getting a problem off their hands. Unfortunately the project goes poorly, and Tegan is left with the decision of how to prevent a failure in accounts payable from halting the entire company's operations. The case allows the examination of how to manage an outsourcing project and permits a general discussion about IT outsourcing.

Tata Consultancy Services (TCS), a leading outsourced software services provider based in India, must decide whether to bid on a high-profile government project within India. The project, if completed successfully, would mark another step in TCS'progression from a provider of low-cost technical resources to their goal of becoming an end-to-end technology enabled services provider. However, the project was not only complex but also presented considerable hazards to the firm. The case permits the exploration of how and when companies in developing countries can leverage their domestic markets to build capabilities to serve global customers, by using their home market as a base for learning. The case is also designed to examine strategies (more generally) for such organizations to climb the value chain, and access higher-margin businesses with powerful incumbents.

Explores the journey of aggressive learning and capability building in the operations of a major Korean Shipbuilder. While DSHM had once used its superior learning capability to topple its Japanese competition, it now faced the potential for a similar attack from new Chinese competitors. Without outsourcing some of its work to China, DSHM would become uncompetitive. However, in outsourcing the work, some skills would necessarily have to be transferred, potentially teaching the future competition and providing them with a platform to attack DSHM's core markets.

Codelco was a Chilean copper-mining company, widely considered to be one of the most professionally managed firms in South America in spite of the fact that it was 100% government-owned. A $10.5 billion company in 2005, Codelco faced the challenge of incorporating information technology into its production processes, which had historically been very manual in nature. CEO Juan Villarzu's initial turnaround attempts introduced a customer-centric corporate culture to his ranks, but he was still challenged by how to create an outsourcing strategy given his location and the traditionally low IT-to-total-spending ratio in the mining industry. Villarzu envisioned moving to a robust IT architecture, enhancing the solutions that were available, identifying further needs in the company and deciding how to fix them, and working together with Codelco's business processes to assess, plan, and build new IT projects.

Describes a highly successful effort by an Indian Charity to feed poor schoolchildren at lunchtime. This provides two significant benefits. It improves nutrition for the children, and helps keep them in school since the provided meal is occasionally the only meal they will have in the day. The organization has had great success in an urban environment, but now seeks a wholly different operations strategy as it stretches out to rural India.

Wipro Technologies, a rapidly growing software services firm based in India, decided to use principles from the Toyota Production System (also known as lean) to fundamentally change their operating model. Looks at why Wipro chose to use lean and how they went about implementing it in a novel context such as this. Provides detail of Wipro's internal and external environment, which was necessitating the change (shift from delivering a low-cost product to providing a business solution). Also, explores whether this new approach can lead to a substantial competitive advantage.

Shinsei Bank was rebuilt from the ashes of a failed predecessor, and pioneered new levels of customer service in retail banking in Japan. The bank's information technology, however, was vestigial at best and not well suited to the new service models Shinsei was offering. The bank's charismatic CIO, experienced in technological change, developed a modular, flexible infrastructure based on simplicity and parity. Describes the formation of Shinsei's new IT system, and raises questions as to Shinsei's potential in selling the IT design further down the road.

Tech Data is a global supplier of logistics management services and one of the world's largest distributors of information technology equipment. Operational execution is key for the company, which has gross margins in the 5% range. At the end of 2005, the company had survived the boom period of the 1980s and 1990s, subsequent industry consolidation, and the bust that accompanied the bursting of the Internet bubble. The industry was maturing and Tech Data faced substantial competition from a Chinese-based, low-cost competitor. With this backdrop, Steve Raymund, chairman and CEO of Tech Data, prepared for a discussion with his board of continued areas for operational improvements and overall growth opportunities.

Based in Bangalore, Wipro Technologies is a rapidly growing software services company. Wipro is experimenting with a new software service delivery model that draws on the principles of the Toyota production system and'lean'manufacturing. Addresses the advantages and disadvantages of software outsourcing and how to mitigate the effects of, for example, lock-in and hijacking. Explores how Wipro has helped its customers deal with these issues and looks at the changing competitive role of Indian outsourcers (from low-cost, to high-quality/rapid turnaround). Specifically explores Wipro's experimental use of lean principles as a source of new competitive advantage in software services. Also addresses the issue of standardization in information technology, examining why companies progressively develop so many standards and how companies like Wipro can help them standardize, thus limiting one of the primary drivers of companies'IT costs.

Supplements the (A) case.

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.

Describes the rocky transition from an outdated, nonintegrated information system to a new customized system built by programmers in a small, IT-dependent foliage company that distributes plant material. 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 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.

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.

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.

A paper company is unable to compete on cost as a result of the installation of three very efficient paper machines by competitors. Prices for its products are falling by the day, and the company is making a loss. In the face of such competition, management feels that the only course of action is to improve'flexibility'and/or take advantage of the flexibility they already have. The problem is that no one knows quite what flexibility is, let alone how to implement an improvement plan. The case describes four improvement paths, each of which might be considered to improve'flexibility.'The conflicts between these plans are also considered by the company. In addition, the sales force gives a look at the flexibility requirements of the company from the customer's viewpoint.

U.S. Robotics (USR) is a fast-growing $80 million computer communications company with the aggressive growth target of becoming a $500 million company by 1995. It is widely accepted as the technology leader in its market, and relies strongly on its ability to bring products to market quickly. Much of USR's continued success relies on the advantages of being on a single site. However, with the growth of the firm, they are confronted with the prospect of becoming a multi-site organization. The entrepreneurial foundations of the company are threatened: their'single-site'operation has helped them thrive and be nimble, while other, similar companies have perished. USR has avoided problems in the past by growing very opportunistically and adapting with the times. It is becoming clear that management needs to consciously develop an operations strategy in order to grow, and perhaps commit themselves in ways which will inhibit their flexibility in the future.

Updates the (A) and (B) cases.

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 in order to maintain growth. Now, new competitors threaten to beat McDonald's at its own, original game. In addition, McDonald's faces unprecedented challenges in its environmental policy. The case teaches approaches and dangers arising from flexibility, and the identification of capabilities that support different types of flexibility. The integration of environmental concerns with operations strategy is also addressed.

Describes the Puerto Rican manufacturing plant of a transnational company. The award-winning plant has dramatically improved the quality of flexibility of its operations, by taking a radical approach to manufacturing. The methods center on the use of specific techniques along with a building of trust with the workforce. This generates broad participation and creates a strong commitment to continuous improvement throughout the plant. In 1987, the plant was held responsible for quality problems which marred the launch of an important product. Four years later, a new product is to be launched and the plant must develop a plan to ensure that this launch is a success, as well as develop a strategy for the future. Examines, in detail, the development of a manufacturing infrastructure for quality and flexibility and introduces students to the challenges of managing manufacturing in a transnational environment.

Describes the outcome of the (A) case.

Describes events that occur after the decision point in Australian Paper Manufacturers (A). With these facts and more detailed market projections, this case intensifies the long-term financial, strategic, and ethical decisions confronting the invader.

Describes a company which has broken an unwritten cordial agreement amongst the three Australian paper manufacturers to split the 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.

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. The teaching objectives are to provide an understanding of computer techniques available in modern small-batch manufacture, sources of manufacturing improvement, and the implementation of computer-integrated manufacturing.

Describes a fictitious situation in which the standard economic order quantity equation is developed. Provides an example application, as well as opportunities for discussion of the use of this method. The objectives are to provide students with an understanding of the source and use of the equation, along with its limitations.

Describes the application of statistical process control in a service industry. In this case, Annette Kluck must decide how to adopt manufacturing-based principles to a service process ranging from customer account setup to legal services.

Volkswagen and Shanghai Sedan, have developed a joint venture to build western-quality autos in China. Having developed a supplier network capable of delivering quality components, the company now faces a need to expand capacity (demanding rapid expansion of their supplier network). In addition, Volkswagen is under pressure to bring more of the design activity over to China. A rewritten version of an earlier case.

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.

A paper mill's paper machines are a bottleneck in the operation. The causes include poor scheduling, lack of investment, and ineffective process control. The plant manager is charged with improving this situation fairly rapidly and has a number of proposals for change from which to choose.

AeroTech Service Group uses Internet protocols and other advanced computing technologies to interconnect the IS networks of McDonnell-Douglas Aerospace with many of its customers, suppliers, and other partners. The case discusses AeroTech's product and explores options for growing the firm.

Explores the management of technical disasters in which time plays a central role. Uses the experience of HMS Thetis and Apollo 13 to look at both successful and unsuccessful approaches.

Examines two dilemmas often faced by an operations consultant. First, the dual responsibility to both client and consulting firm. Second, the management of the often competing pressure to deliver immediate results, at the same time laying the foundation for long-term performance improvement.

Explores issues around the formulation and implementation of an appropriate operations strategy for a large organization that must react to an environment characterized by greater customization and slower growth.

A high-technology manufacturing company was recently given profit-and-loss'stand-alone'status by its parent. No longer a captive supplier, it must seek new markets for its technology and products on the outside world. Describes a benchmarking study by a group of consultants to determine future operations improvement.

Rotron has recently entered the commercial motor market, after many years of servicing government military contracts. Faced with fierce commercial competition, Rotron has attacked its costs and reduced its delivery times and its plants. A new crisis, however, is causing it to rethink its just-in-time production system, and the plant manager must decide whether to re-introduce inventory for key production.

Supplement to the (A) case.

Allows students to use an alternative method to analyze the case.

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.

Describes the development and exploitation of a radical new computer-integrated technology in the largely manual meat-processing industry. The technology has been developed by the meat industry's research organization over a period of 15 years and is now ready for commercial exploitation. Unfortunately, it is not clear how the industry can use the technology because its scale demands larger firms than currently exist and its operation requires expertise that the industry does not have. The commercializing firm is also under pressure to break the system into smaller modules, losing some of the benefits of computer integration, but gaining a dissemination path. There is another model for improvement in the industry, relying on incremental improvement, rather than radical technology change, and many have said that the project is doomed, because it might not provide the best path to improvement in the industry.

Describes the predicament of an overworked Western plant manager in a Chinese joint venture. The fourth in a line of such managers, he must deal with the combined problems of an inability to delegate, different customs and practices, and difficulties in information technology and plant control.

Daewoo Shipbuilding and Heavy Machinery rescued its plant from the labor riots of 1987 to make it the fastest improving shipyard in the world by 1994. 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.

FASTech Integration builds software that allows firms to build computer Integrated Manufacturing Systems easily and quickly. It's suite of software had gained an outstanding reputation from ease of use and its ability to integrate machines such as robots, conveyors, and PLCs (programmable logic controllers) from a wide variety of suppliers. However, FASTech prices its product based on the number of computers that are running the software, causing its best customer to cram all its applications onto a few, overloaded machines, degrading the performance of the system. This is a serious matter for FASTech since major customers provide product showcases for new prospective customers. FASTech must develop a new pricing scheme that reflects the value of their product more appropriately and does not promote poor technological decisions. Teaching Purpose: While the case is superficially about pricing, it is critical to understand how the product is used and what the benefits of it are to be able to make a good decision. In addition to considering some fundamentals of computer integration techniques, the case explores the value of integration in Computer Integrated Manufacturing.

Describes a poorly performing insurance operation that improves dramatically as a result of an'at-risk'arrangement with a consulting team. The company must decide how to exploit its new-found capabilities. Teaching Purpose: Examines implementation of operations improvement strategies and exploitation of operating capabilities and development of service operations.

Provides a framework for maximizing the value of a plant tour, or a single visit to an operation. There are three principal types of plant tours within this framework tht can provide information about four broad types of operational performance.