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Case Studies by Ludo Van der Heyden

22 case studies

by Publication Date
published: 02 Jan 2006

  • Topic: Operations
  • Industry: Computers manufacturers
  • Region: Asia

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Abstract:
Compaq Computer Corp., like many manufacturers, faces operational choices that strongly influence the cost of capital engaged in inventory, customer response time, and potential product obsolescence. This case describes some key operations strategy choices regarding two types of inventory: operation inventory (e.g., flow) and tactical inventory (e.g., finished goods). Tradeoffs in inventory management and customer response time are explored in the context of a firm that is changing from a push manufacturing to a customer-oriented pull system. Optional computer simulations (B case) visually display the dynamics of push and pull systems, kanban squares, and their effect on inventory requirements and customer response times. The simulations require the ProModel simulation software tool (not included, to be purchased separately) and computer simulation model files (available from the authors' website: http://faculty.insead.edu/chick/chick-teaching.htm).

Pedagogical Objectives:
The pedagogical objectives of the A case are to convey the importance of manufacturing strategies and inventory management in the value creation processes of a business. A simplified manufacturing model allows the ideas of operational (e.g., flow) inventory and tactical (e.g., finished goods) inventory to be explored. Build-to-forecast and build-to-order approaches can be described, and the challenges of switching from a push system to a pull manufacturing system can be explored. The case describes tradeoffs in production decisions that relate inventory assets and customer response times. The B case is an optional add-on that describes computer simulation models that visually demonstrate the ideas of push and pull systems, kanban squares, blocking and starving of production in kanban systems, and the effects of manufacturing choices on customer response times.

Keywords:
Manufacturing Strategy, Pull System, Operational Inventory, Tactical Inventory, Build-To-Forecast, Build-To-Order, Computer Simulation

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published: 02 Jan 2006

  • Topic: Operations
  • Industry: Computers manufacturers
  • Region: Asia

Show details ...

Abstract:
Compaq Computer Corp., like many manufacturers, faces operational choices that strongly influence the cost of capital engaged in inventory, customer response time, and potential product obsolescence. This case describes some key operations strategy choices regarding two types of inventory: operation inventory (e.g., flow) and tactical inventory (e.g., finished goods). Tradeoffs in inventory management and customer response time are explored in the context of a firm that is changing from a push manufacturing to a customer-oriented pull system. Optional computer simulations (B case) visually display the dynamics of push and pull systems, kanban squares, and their effect on inventory requirements and customer response times. The simulations require the ProModel simulation software tool (not included, to be purchased separately) and computer simulation model files (available from the authors' website: http://faculty.insead.edu/stephen-chick/simulations).

Keywords:
Manufacturing Strategy, Pull System, Operational Inventory, Tactical Inventory, Build-To-Forecast, Build-To-Order, Computer Simulation

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published: 01 Jul 2005

  • Topic: Family Business
  • Industry: Food Industry
  • Region: Europe

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Abstract:
Trouble begins in this Tuscany family business as repercussions of traumas suffered by first and second generation family members affect the third generation. The Baldinis had always worked together in their olive groves to produce the finest quality olive oil, but now, old wounds of which younger family members were barely aware, threatened the future of the business. Using genograms as a tool to help understand family dynamics and relationships, this case challenges students to find solutions to a potential succession crisis in the Baldini family.

Pedagogical Objectives:
Applying learning from genograms to family businesses, addressing issues of: -conflict avoidance -sibling or family competition -difficulties with change or loss -gender stereotypes -power concentration -succession in family business

Keywords:
Genograms, Family Systems, Family Dynamics, Family Relationships, Business Families, Succession Planning, Wicfe, Succession, Next Generation, Fair Process, Communication, Psychology, Gender

published: 28 Feb 2005

  • Topic: Operations
  • Industry: Retail – Textile Apparel
  • Region: Global

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Abstract:
This case was written to illustrate the importance of business process design as a basis for competition in the textile industry. The case illustrates the impressive performance of Zara, the new fashion player from Spain, which has innovated in process design so as to deliver new collections in its stores with a lead-time of 5 to 7 days. The more traditional approach in textile retailing is illustrated here by Marks and Spencer (M&S), the well-known UK retailer. Notwithstanding M&S's current problems, the case does not fall into an overly simple comparison between a young, innovative competitor and an ageing glory. The authors have taught this case both in executive education and in the MBA core class on process and operations management.

Pedagogical Objectives:
There are four important concepts that are stressed, more or less, depending on pedagogical objectives: (1) newsvendor losses in the textile industry; (2) the role of postponement in final design; (3) the 'lean enterprise' aspect of Zara; and (4) process competition and innovation, embedded in technology evolution.

Keywords:
Process Competition, Operations Management, Supply Chain, Retail Apparel, Delayed Customisation, Time-Based Competition, Newsboy Model, Innovation

Related:

published: 04 Jan 2003

  • Topic: Family Business
  • Industry: General Mechanics
  • Region: Other Regions

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Abstract:
The case describes the dilemma faced by a young MBA participant, Niraj, regarding the decision to join his family’s business in India. Niraj already spent a few years abroad, and feels some pressure to join the business, while uncertain of his wishes. The case also describes foundation and evolution of business and family relationships.

Pedagogical Objectives:
The objective of the case is to foster discussion on the topic of joining the family firm. It is of particular relevance for classes with potential successors, e.g. MBA classes on family firms. The case also demonstrates the need for increased family communication.

Keywords:
Family Business, Family Enterprise, Family Firms, Succession, Communication, Career Choices, Successor Dilemma, Family Relationships

published: 01 Dec 2002

  • Topic: Operations
  • Industry: Retail – Textile Apparel
  • Region: Global

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Abstract:
El caso fue redactado para mostrar la importancia del diseño de los procesos de negocio como base para la competencia en el sector textil. El caso muestra los magníficos resultados de Zara, el nuevo actor de la moda en España, que ha innovado de tal forma el diseño de procesos que llega a exponer nuevas colecciones en sus tiendas en un tiempo máximo de 5 a 7 días. El enfoque tradicional en la distribución textil está representado por Marks & Spencer (M&S), la conocida empresa británica. A pesar de los problemas por los que está pasando M&S, el caso va más allá de una simple comparación entre el competidor joven e innovador y la vieja gloria.

Pedagogical Objectives:
Los autores han analizado este caso tanto en educación ejecutiva como en la asignatura común sobre gestión de procesos y operaciones del MBA. Hay cuatro conceptos importantes en los que hacemos hincapié, en mayor o menor medida, dependiendo de los objetivos pedagógicos: - Las pérdidas “del vendedor de periódicos” (Newsvendor problem) en el sector textil - El papel del aplazamiento en el diseño final - La cualidad de Zara como “empresa ágil” - Competencia e innovación de procesos, integradas en la evolución tecnológica

Keywords:
Competencia De Procesos, Gestión De Las Operaciones, Cadena De Aprovisionamiento, Venta De Ropa, Personalización Retrasada, Competencia Por Tiempo, Modelo De Vendedor De Periódicos, Innovación

Prizes won:
- 2016 Case Centre Best-selling Case in Production and Operations Management
- 2015 Case Centre Best-selling Case in Production and Operations Management
- 2014 Case Centre Best Selling Case in Production and Operations Management
- 2013 Case Centre Best Selling Case in Production and Operations Management
- 2012 ecch Best Selling Case in Production and Operations Management

Related:

published: 02 Jul 2002

  • Topic: Operations
  • Industry: Retail – Textile Apparel
  • Region: Global

Show details ...

Abstract:
The case was written to illustrate the importance of business process design as a basis for competition in the textile industry. The case illustrates the impressive performance of Zara, the new fashion player from Spain, which has innovated in process design so as to deliver new collections in its stores with a lead-time of 5 to 7 days. The more traditional approach in textile retailing is illustrated here by Marks & Spencer (M&S), the well-known UK retailer. Notwithstanding M&S’s current problems, the case does not fall into an overly simple comparison between a young, innovative competitor and an aging glory.

Pedagogical Objectives:
The authors have taught this case both in executive education and in the MBA core class on process and operations management. There are four important concepts that we typically stress, more or less, depending on pedagogical objectives: - Newsvendor losses in the textile industry - The role of postponement in final design - The "lean enterprise" aspect of Zara - Process competition and innovation, embedded in technology evolution

Keywords:
Singapore, Process Competition, Operations Management, Supply Chain, Retail Apparel, Delayed Customisation, Delayed Customization, Time-Based Competition, Newsboy Model, Innovation, Services, Disruptive Technologies

Prizes won:
- 2018 Case Centre Best-selling Case in Production and Operations Management
- 2017 Case Centre Best-selling Case in Production and Operations Management
- 2016 Best Selling Cases In France, Production / Logistique
- 2016 Case Centre Best-selling Case in Production and Operations Management
- 2015 Case Centre Best-selling Case in Production and Operations Management
- 2014 Case Centre Best Selling Case in Production and Operations Management
- 2013 Case Centre Best Selling Case in Production and Operations Management
- 2012 ecch Best Selling Case in Production and Operations Management
- 2011 ecch Best Selling Case in Production and Operations Management
- 2010 ecch Best Selling Case in Production and Operations Management

Related:

published: 15 Mar 2002

  • Topic: Operations
  • Industry: Heavy Equipment
  • Region: Europe

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Abstract:
This exercise is designed to introduce students to (Q,R) inventory reorder policies, where Q is the order size and R the reorder point. The exercise is motivated by the issues faced by Caterpillar (CAT) in managing its parts warehouse in Europe. The Caterpillar example is based on information obtained from their website, but the numbers utilized in the exercises and assignment are fabricated to achieve the pedagogical objective.

Pedagogical Objectives:
At the end of this exercise, the student should have an understanding of: The issues faced by organizations such as Caterpillar in trying to manage independent-demand inventory systems Continuous-review inventory policies The Economic Order Quantity (EOQ) model (Q,R) inventory reorder policies

Keywords:
Inventory Reorder Policies, Continuous Review Inventory Policies, Economic Order Quantity, Spare Parts Management

published: 15 Mar 2002

  • Topic: Operations
  • Industry: Heavy Equipment
  • Region: Europe

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Abstract:
Laurence & Ralph (L&R) is not a case, per se, but a note on the classical Newsboy Problem. This type of problem is exemplary in capacity or inventory economics. It occurs every time a product needs to be ordered or service capacity needs to be set when demand in the forthcoming sales or service period is uncertain. Fundamentally, the inventory decision is equivalent with a capacity decision, as inventory represents a capacity to sell product in the future, while capacity is a form of inventory for future service.

Pedagogical Objectives:
Although the topic is classical, the authors' approach is less so. They do not present the classic newsboy formula utilizing underage and overage costs (Cu and Co, respectively). Instead, they present a mathematically equivalent formula based on a real-option logic, where the cost of the option (C) is the amount that cannot be recovered if the unit is left unsold, (cost ( salvage). This is the capital "at risk" when the option is purchased "that is, when inventory is added. The value from exercising the option (V) is the revenue gained from the sale (revenue) less the exercise price of the option" that is, the salvage value forgone by selling the unit (salvage).

Keywords:
Newsboy Model, Newsperson Model, Independent Demand Inventory, Capacity, Inventory

published: 01 Nov 1999

  • Topic: Strategy
  • Industry: Iron & Steel
  • Region: Europe

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Abstract:
The Wendel and CGIP cases tell the story of a business family, the Wendel, over a period of nearly three centuries. The CGIP case (B) shows how Ernest-Antoine Seillière, succeeded in building a strong holding company out of the family’s non-core businesses, left after the steel nationalisation. The case describes several key business decisions and deals, including with other family firms. It illustrates the governance structure and processes with the decision to sell a stake in packaging to purchase a stake in a automobile contractor, Valeo.

Pedagogical Objectives:
The case is written for use in classes on Family Firms with MBA students. Its main objective is to illustrate the role of a family in the development and perpetuation of a business and to identify the differences between a family business and a publicly-owned business. The CGIP case illustrates how a family can decide to stay in business together without staying in the same business; how the family can support the manager’s decisions; governance structures and processes; how a family can have a privileged access to deals with other family firms.

Keywords:
Family Firms, Family Business, (factors Of) Continuity, Governance, Wendel / Marine-Wendel, Cgip, Valeo, Crow-Cork & Seal

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