OIDD 680 Operations Strategy Practicum Semester in San ... · 6/30/2016 · and Europe and into...

OIDD‐680

OperationsStrategyPracticum

SemesterinSanFrancisco

(RevisedJune30,2016)Location:WhartonWestCampusandvariouscompanysitesintheUSandMexicoDates:FallSemester2016

‐ Lectures,CaseDiscussions‐ VisitstoUSandMexicanmanufacturingplantsandserviceproviderfacilities‐ Presentationsbyseniormanagers

Credit:1.0CreditUnitCourseInstructorMorrisA.CohenPanasonicProfessorofManufacturingandLogisticsOIDDepartment546JonM.HuntsmanHallTel:215‐898‐6431(office)

E‐mail:cohen@wharton.upenn.eduCourseTAsAndrewGrossmanLucasPaulCourseAdministrationRamonJonesOIDDepartment500JonM.HuntsmanHallTel:215‐573‐0505

E‐mail:[email protected]

OperationsStrategyPracticum‐SemesterinSanFrancisco OPIM680‐Fall2016

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CourseOverviewandLearningGoalsThiscoursewillfocusonthemanagementofoperationsatmanufacturingandservicefacilitieslocatedwithintheUSandMexico,thatareusedeitherbydomesticcorporationsorbyforeignmultinationalcompaniesthatoperateintheUS.Ouremphasiswillbeontheevolvingpatternsofoperationsstrategiesadoptedbyfirmsforsourcingmanufacturing,distributingproducts,deliveringservicesandmanagingproductdesignaswellasonprogramsforenhancingquality,productivityandflexibility.Wewillfocusontheformulationandexecutionofsuchstrategiesforacollectionoffirmsinthecontextofthecurrentdynamicsofglobalcompetition.Thecoursewillconsistofasetofsitevisitsandin‐classsessionswhichincludelectures,casediscussionsandmanagementspeakerswhowilldescribetheircompany’scurrentstrategy.Ourcourseismotivatedbythefactthatmanymanufacturingandserviceproducingfirmsarere‐examiningthestructureoftheirglobalsupplychains,internalprocessesandsourcingstrategyinresponsetotheuncertaintiesandriskstheyfaceintheseturbulenttimes.Theseadjustmentsareoccurringagainstabackdropoffundamentalchangetotheenvironmentinwhichcompaniesoperate.Fordecadesadominantstrategyinmanufacturinghasbeentooutsourcetolowcostglobalsuppliers.ThishasledtothetransferofmillionsofmanufacturingjobsanddevelopmentactivitiesoutoftheUS,JapanandEuropeandintolowlaborcostcountriessuchasChina,IndiaandVietnam.Todaythistrendisbeingchallengedbyamovementbysomecompaniesto“re‐shore”theirmanufacturingbybringingitbackoratleastmovingitclosertotheirdevelopedcountrymarket,i.e.by“near‐shoring”tolocationssuchasMexicoorEasternEurope.Atthesametimemanyfirmscontinuetoselectoffshorelocationsforoutsourcingofmaterialinputsandservices.Similarargumentsforglobalsourcingandre‐shoringcanalsobemadeforfirmsthatactassuppliersofservicessuchasBusinessProcessOutsourcing,CustomerServiceSupport,ProductDesignandSoftwareDevelopment.Moreover,therehavebeenmajortechnologydevelopmentsaffectingproductionautomationandproductdesignwhicharecontributingtothisre‐structuring.Thiscoursewillconsiderthecurrentstatusofoperationsstrategyandprocessmanagementprimarilyfromtheperspectiveofmajormulti‐nationalfirms,althoughwewillalsointeractwithstartupcompanies.Thegoalistoprovidetheclasswiththeopportunitytointeractwithseniorexecutivesfromthesecompanies,whichareheadquarteredand/oroperatingintheUSandMexico,toexplorecurrentthinkingandstate‐of‐the‐artpracticesconcerningtheirglobaloperations.Learningwillbefacilitatedbyprovidingstudentswiththeopportunitytoobservecompanyoperationsinactionundertheguidanceofcompanymanagement.Theseinteractionswillfacilitateanexchangeofideasthatwillidentifymanagerialchallengesandconcerns.Itwillalsoascertaincurrentpracticesandintentionsofparticipatingcompanies.Moreover,thecoursewillconsidervariousmodelsandframeworksthathavebeendevelopedintheeconomics,publicpolicy,operationsandmanagementliteraturesfordealingwithstrategiesforglobalsupplychainsourcing,technologymanagementandprocessimprovement.Wewill,inparticular,reviewtheunderlyingprinciplesofsomeofthekeyoperationsstrategiesthatarewidelyadoptedinindustry.Wewillalsoconsiderhowtechnologydevelopmentsareimpactingcurrentoperationsstrategy(e.g.automation,E‐commerce,InternetofThings).Finally,we


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willexplorehowsupplychainsandoperationsprocessesarebeingdesignedandmanagedbystartupcompanies.Ourobjectiveistodevelopanunderstandingofthedriversofoperationsstrategydecisions,atpresentandinthefuture,inordertoidentifyopportunitiesforimprovementandbarrierstoimplementation.

Wewillexploretheseissuesthroughthelensofvisitstoaspecificgroupofmultinationalandemergingcompanieslocatedonthewestcoast.Thecompanieswillbechosentocoverarangeofmanufacturingandserviceindustrieswhereglobalsourcing,productivityandcoordinationarekeyissuese.g.aerospaceanddefense,automotive,consumerelectronicsandcomputers,consumerproducts,entertainment,healthcare,logistics,e‐commerceandsemiconductor.ThiscoursewillbuildoffofthelearningbasedonaGlobalModularCourseonthistopicthathasbeenofferedinJapanoverthepastthreeyearsandfrompriorversionsofthecoursethathavebeenofferedtostudentsparticipatingintheWhartonSiSF(SemesterinSanFrancisco)programwithafocusonthewestcoastandtoregularMBAstudentswithafocusonGermanyandeastcoastfirms.CourseOrganizationandRequirementsThecoursewillincludesessionsattheWhartonWestfacilitythatincludelectures,corporatemanagervisitsandcasediscussionsaswellasanumberofroadtripstovariouscompanysitesthatareaccessiblefromtheBayareaorarewithinseveralhourstraveltime(i.e.SeattleandSanDiego/Tijuana).StudentswillberesponsibleforexpensesforthosevisitsrequiringtravelawayfromtheBayarea.Theestimatefortheseexpensesare$1,910(singleoccupancy)and$1,220(doubleoccupancy)forthecourse,notincludingairfarefromSanFranciscotoSeattleandtoSanDiego.Theexpensefeewillcoverhotels,landtravelandsomemeals.

Pre‐requisitesStudentstakingthiscourseshouldhavecompletedeitherthecorecourse,OID611,“ManagingtheProductiveCoreoftheFirm:QualityandProductivity”,orOID615,“ManagingtheProductiveCoreoftheFirm:OperationsStrategy”,oranequivalentcourse.GradingandassignmentsGradesarebasedon(1)classparticipation(20%);(2)analysisanddiscussionofthreeassignedcases.Thecaseswillbediscussedinclasssessionswithcompanymanagersand/oratthecompanieswherethecasestakeplace.A750wordwrittenreportisrequiredfortwoofthecases,(i.e.BoeingandCisco)andashort,(500word)reportisrequiredforthethirdcase,(i.e.Angaza)(allindividualassignments)(25%);(3)analysisofarecentexampleofsupplychainrestructuringinaglobalcompany,selectedfromanindustryinwhichoneourcompaniestobevisitedbelongs(teamassignment)(20%);(4)Abackgroundreportconcerningoneofthecompanies/industriesthatwewillvisitandasitevisitreportforthatcompany(teamassignment)(20%);and(5)afinalpaperofferingreflectionsonwhatyouobservedandlearnedduringthesitevisits(individualassignment)(15%).Seebelowforfurtherdetailsontheseassignments.

Thefollowingscheduleissubjecttochange.CompanyvisitswilltakeplaceinSeattle,SanDiego/TijuanaandvariouslocationsintheBayArea.Casediscussions,lecturesandguestspeakerswillbescheduledatWhartonWest.

Session Date TopicandReadings1‐A September7

(WhartonWest)

10:00am‐11:30amPacific

CourseIntroduction–OperationsStrategyThissessionwillpresentthegoalsandrequirementsforthecourse.Wewillthenreviewthecourseschedule.Finally,wewillintroduceaframeworkforoperationsstrategythathighlightsthefollowingconceptsthatwillbecoveredinthecourseeitherinclasssessionsorthroughcompanyvisits:

o GlobalManufacturingSourcingo SupplierRelationshipsandCoordinationo LogisticsandDistributiono TechnologyandCapacityPlanningo SupplyChainRiskManagemento Agility,FlexibilityStrategieso EnvironmentandSustainabilityo Leanoperationsandcontinuousimprovement

Readingso M.Fisher,“WhatistheRightSupplyChainforYourProducts”,

HarvardBusinessReview,1997.o H.Lee,“TripleASupplyChain”,HarvardBusinessReview,2004.

1‐B September7

(WhartonWest)

11:30am‐12:00pmPacific

PlantToursandIndustryBackgroundThissessionwillintroducethePlantTourAnalysistoolthatwillbeappliedinoursitevisitsbythestudentteams.Wewillalsodiscusstheindustrybackgroundreportsthateachteamwillprepare.Eachteamwillberequiredtodistributetheirbackgroundreportpriortothesitevisitandasummaryofthesitereportaftereachvisit. Reading

o R. E. Goodson, “Read a Plant – Fast”, HBR, May 2002.2 September8

(WhartonWest)

1:30pm–3:00pmPacific

SupplyChainRiskManagement–CiscoCaseDiscussionGuestSpeaker,JamesSteele,GlobalSupplyChainManager,CiscoThissessionwillintroducetheconceptofsupplychainriskmanagement.WewilldosobydiscussingthecasewhichdescribestheCiscoprocessandhowitreactedtotheTohokuearthquakeinJapan.JamesSteele,whowasdirectorofCisco’sSupplyChainRiskManagementprogramatthetimeofthequake,willbejoiningusinclasstodiscussCisco’sresponse. Readings


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o R.Anupindi,“CiscoSupplyChainRiskManagement(SCRM)inAction:2011TohokuEarthquake”,(U.MichiganCase1‐429‐284,2013)

o R.Anupindi,“SupplyChainRiskManagementatCisco:ResponsetoH1N1(U.ofMichigancase1‐428‐881),–readpages2throughtopofpage9.

o Simchi‐Levi,W.SchmidtandY.Wei,“FromSuperStormstoFactoryFires:UnpredictableSupply‐ChainDisruptions”,HBRJan‐Feb,2014.

o D.Reynolds,“LessonsFromTohoku”,WhartonMagazine,Winter2012.A.PollackandS.Lohr,"AJapanesePlantStrugglestoProduceaCriticalAutoPart",NewYorkTimes,April278,2011.

3 September9

(TraceyCA)

8:30am–4:00pmPacific

VisittoAmazonFulfillmentCenter

This session will expose us to the technology and processes used at the San Francisco area (Tracey) distribution center for Amazon. Our agenda at the site is to gain an understanding of how Amazon manages fulfillment and logistics. We will have the opportunity to continue our discussion of Amazon strategies for supply chain, logistics and technology management at their headquarters in Seattle later on in the course.

This will be our first site tour and the team assigned to this facility will have the opportunity to use the plant tour assessment tool.

4 September19

(WhartonWest)


AzagnaCaseDiscussion–LightingupAfrica&ServicizationandProduct‐ServiceSystems

WewilldiscussAzagna,astart‐upthatisprovidinganinnovativebusinessmodelforvaluedeliverythatenablesthedistributionofelectricityinAfricatothosenotconnectedtothepowergrid.

Wewillbegintheclasswithadiscussionofthecase.Wewillconcludetheclasswithabriefover‐viewoftheProduct‐Servicesystemsbusinessmodel.

Readingo N.Agrawal,"Azagna:LightingUpAfrica",SantaClaraUniversity

Case,2014.o J.Guajardo,“Pay‐As‐You‐GoBusinessModelsinDeveloping

Economies:ConsumerBehaviorandRepaymentPerformance”,HaasSchoolofBusiness,2016


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5 September20

(WhartonWest)


SupplyChainStrategyforE‐CommerceJimMiller,VPGlobalCapacityDelivery(GCD),Google

JimwilldiscussthesupplychainoftheextensiveinfrastructureusedbyGoogletodelivercapacitytoitsusers.HewillalsodiscusscurrenttrendsandstrategiesatGoogle.

6 September21

(WhartonWest)

12:00pm‐1:30pmPacific

ToyotaProductionSystem,Lean

WewilldiscusstheToyotaProductionSystemandintroducetheconceptofleanproduction.Wewillalsodiscusssomeapplicationsofleanintheautoandhealthcareindustries.

Inaddition,wewillheartheAmazonvisitteamdelivertheirsitereport.Wewillalsofinalizeindustry/companygroupassignments.

ReadtheToyotacaseandconsiderhowtheAndonprocedureworksandwhatareitscostsandbenefitsanditsimpactonquality.Also,thinkaboutrecenteventsintheautoindustrythatrelatetoqualityproblems.

Readingso K.Mishina,“ToyotaMotorManufacturing,U.S.A.,Inc.”,HBScase

9‐693‐019,1995.o JunichiEndo,“DiscussionpaperofNissan’sGlobalSupplyChain

ManagementRolesofMotherPlantsandtheGlobalProductionEngineeringCenterinJapan,RevisedFebruary16,2015(M.Cohen)

7 October13

Philadelphia

(remoteaccesstoWhartonWest)


CaseDiscussion‐Boeing:TheFightforFasteners

WewilldiscusschallengesassociatedwithsourcingandsuppliercoordinationencounteredbyBoeinginits787supplychain.WewillalsoconsiderquestionsthatyouwillwanttoposetotheBoeingmanagementwhenwevisittheEverettplantanddiscussthecurrentstatusofthe787program.

Readingso M.LeeandR.Anupindi,“Boeing:TheFightforFasteners”,by(U.

ofMichigancase1‐428‐787,2009)o ChrisTang,andJoshZimmerman,“MitigatingNewProduct

DevelopmentRisks–TheCaseoftheBoeing787Dreamliner”,Chapter11inM.S.SodhiandC.S.Tang.ManagingSupplyChainRisk.Springer.2012


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8 October20

Philadelphia



GlobalSupplyPlanning–SourcingandLocationDecisions

Wewillreviewthecurrentsituationconcerningglobalmanufacturingsourcing,includingtheresultsofarecentBenchmarkstudy.

Readings

o “WhatItTakestoRe‐ShoreManufacturingSuccessfully”,WillyC.Shih,SloanManagementReview,Fall,2014.

o “ShiftsinCostCompetitivenessReshapeGlobalManufacturing”,SourcingJournal,September05,2014.

o “Yen’sShiftingValueHelpsJapaneseCarmakersMeetNewChallenges”,Knowledge@Wharton,April01,2014.

o “BenchmarkingGlobalProductionSourcingDecisions:WhereandWhyFirmsOffshoreandRe‐shore”,MorrisA.Cohen,ShiliangCui,RicardoErnst,ArndHuchzermeier,PanosKouvelis,HauL.Lee,HirofumiMatsuo,MarcSteuber,AndyA.Tsay,OIDWorkingPaper,2016.

o 9 November3



LogisticsSystemsandDistributionStrategyInthefirsthalfofthissessionwewilldiscussthemanagementofdistributionandlogisticswithinaglobalsupplychain.Wewillfocusonissuesassociatedwithriskpooling,coordinationandtechnology.Wealsowillpresentinsightsderivedfromanalyticalmodelsandcurrentpracticesformaterialsmanagement,cross‐docking,andwarehouseautomation.Inthesecondhalfofthesessionthegroupswillpresenttheirindustryreportsforthecompaniesthatwewillbevisiting. Readings

o G.CachonandC.Terwiesch,“Risk‐PoolingStrategiestoReduceandHedgeUncertainty”,Chapter15“MatchingSupplywithDemand:AnIntroductiontoOperationsManagement”,3rdedition,McGrawHill,2011.

10 November8

(SanDiego)


VisitUSNavyWewillhavetheopportunitytoobservelogistics,maintenanceandfleetsupportprocesses.

o AircraftCarrierVisitanddiscussAVCAL(logisticsprocess)o NavalAirStation–Logistics,MaintenanceandRepair

Operations


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11 November9

(SanDiego)


VisittoTaylorGuitarCompany

o GlobalSupplyChainStrategyo Sustainment

Reading

o YLinandM.Han,“SustainableWoodSourcingatTaylorGuitars”,UniversityofSanDiego

12 November10

(Tijuana)


VisitmaquiladorafactoriesinTijuana

Wewillvisitseveralfactoriesintheareaoveratwo‐dayperiod.Thefollowingcompanieshavebeenscheduled:

WelchAllyn Medtronics

13 November11

(Tijuana)


VisitmaquiladorafactoriesinTijuana–continued

TBD–AerospaceandDefensecompany Plantronics

14 November14

WhartonWest


SupplyChainStrategy–GarrettvanRyzin,Uber

GarrettvanRyzinisaprofessorattheColumbiaBusinessSchool.HehasbeenworkingwithUberasavisitingscholarforseveralyears.Hewilldiscussissuesthatincludepricingandrevenuemanagement.

15 November16

(Seattle)


BoeingEverettPlantVisitOuragendawillinclude:

o VIPplanttouro ProductionIntegrationCenter(suppliermanagementand

coordination)o EverettDeliveryCentero MeetingwithBoeingmanagers,includingmanagerswhowere

involvedtheFastenerscase‐continuethecasediscussiono Overviewofcurrentstrategiesforglobalsourcingandproduct

developmentforinthe787Dreamlinerprogram.


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16 November17

(Seattle)


VisitCostco

WewillvisitthemainCostcoDepotinSumnerandobservetheroleofcross‐docking.WewillthenvisitthefirstCostcoWarehousestore.WewillhavetheopportunitytomeetwithCostcomanagersatbothlocationsandlearnabouttheuniqueCostcobusinessmodel.

17 November17

(Seattle)


VisitAmazonHeadquarters

WewillmeetwithseniorOperationsmanagerstodiscusssupplychainandlogisticsstrategy

18 December5

(WhartonWest)

10am–12:00pmPacific

Logistics/DistributionStrategy–GuestSpeaker,BrianDoyle,Sr.Director,LeanSixSigma,McKessonCorporationCompanyexecutiveswillpresentanoverviewofMcKesson’sstrategyfordrugandmedicalsupplydistribution.

19 December5

(WhartonWest)


LogisticsSupportSystems–GuestSpeaker,RyanPeterson,CEO,FlexportFounder/CEOwillpresentanoverviewofhowtheirproductandservicessupportglobalsupplychainmaterialmanagement.

20 December6

(WhartonWest)

10am–12:00pmPacific

AnalyticPaper–GroupPresentations

Eachgroupwillhave15minutestopresentanoverviewoftheirAnalyticpaperfindings.


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21 December7

(WhartonWest))


DebriefsessionEachstudentwillhavetheopportunitytocommentonlessonslearnedfromthecourse.

22 December7

(WhartonWest))


FinalsessionandReceptionWewillreviewhighlightsofthecompanyvisitsanddiscusskeylessonslearned.Wewillconcludethecoursewithaninformalreception.


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CaseAssignments(Individualassignments‐25%ofyouroverallgrade)

FirstCaseAssignment‐CiscoOnMarch11,2011amajorearthquakestruckTohokuJapan.Ithadadevastatingimpactonglobalsupplychains.Readthecase,CiscoSCRMinAction:2011TohokuEarthquake,byRaviAnupindi(TauberInstitute,U.ofMichigancase1‐429‐284,2013) andalsoreadSupplyChainRiskManagementatCisco:ResponsetoH1N1(U.ofMichigancase1‐428‐881),–readpages2throughtopofpage9foradescriptionofCisco’sapproachtoriskmanagement.Preparea750wordpaper(plusorminus5%;double‐spaced;putwordcountandyournameatthetop)thataddressesthefollowingquestions:

1. WhatarethemajorchallengesfacingCiscoasresultofsupplychaindisruptionscausedbytheearthquake?

2. HowshouldCiscomanagethecrisis?3. WhatmetricsshouldbeusedbyCiscotosupportSupplyChainRiskManagement?

Whatdatawouldyouneedtoestimatethesemetrics?Atwhatorganizationallevel(plant,product,supplychain,businessunit)woulditbeappropriatetoapplythesemetrics?Whatmaybetypicalusesofthesemetrics?

4. HowshouldCiscomitigatetheimpactofthedisruptiontotheirsupplychain?Whattradeoffsandrisksshouldtheyconsiderandhowaretheserelatedtothemetrics?Inparticular,howcantheTTRmetricbeused?

5. CommentonCisco’sSCRMprocessandhowtheydealtwiththeTohokucrisis.Whatareitsmajorstrengths?Doyouseeanyweaknesses?

Youshouldalsoreadthefollowingarticles(postedonCanvas)asyouprepareyouranswerstothecase:

1. D.Reynolds,“LessonsFromTohoku”,WhartonMagazine,January26th,2012,2. D.SimchiLevi,“FromSuperStormstoFactoryFires:ManagingUnpredictable

Supply‐ChainDisruptions”,HarvardBusinessReview,Jan‐Feb2014.3. A.PollackandS.Lohr,"AJapanesePlantStrugglestoProduceaCriticalAutoPart",

NewYorkTimes,April278,2011.

Readthecaseandthinkabouttheassignmentquestions.WewilldiscussthiscaseinclassatWhartonWestonSept.8.JamesSteele,whowasdirectorofCisco’sSCRMprogramatthetimeofthequake,willbejoiningusinclassonSept.8.YourpaperisdueonSept.15,postedonCanvas.SecondCaseAssignment‐AzagnaReadtheAzagnacasestudyandbepreparedtoofferyourrecommendationstotheminourclassdiscussionofthecase.Preparea500wordpaper(plusorminus5%;double‐spaced;putwordcountandyournameatthetop)thataddressesthefollowingquestions:

1. WhatshorttermrecommendationswouldyoumaketoLesley?


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2. WhatlongtermrecommendationswouldyoumaketoAzagnatobettercompeteinthemarketforlightingsolutionsinAfrica?Thinkcomprehensivelyaboutyourrecommendations.

WewilldiscussthecaseinclassonSept.19atWhartonWest.YourreportisdueonSept.26postedonCanvas.

ThirdCaseAssignment‐BoeingBoeingencounteredanunusualsupplychainproblemduringits787Dreamlinerproductdevelopmentandmanufacturingprocess,relatedtoasmallandunlikelysourceofdifficulty,namelyshortagesanddelaysinthesupplyoffastenersneededtoholdtheairframetogether.Readthecase,Boeing:TheFightforFasteners,byMosesLeeandRaviAnupindi(TauberInstitute,U.ofMichigancase1‐428‐787,2009)andpreparea750wordpaper(plusorminus5%;double‐spaced;putwordcountandyournameatthetop)thataddressesthefollowingquestions:

1. WhatwerethecausesofthefastenercrisisatBoeing?Howwastheproblemignoredforsolong?Whateffectdidthe787Dreamlinerprojecthaveonfastenersupply?

2. WhatarethekeyelementsoftheFastenerProcurementModel(FPM)?3. Describethematerial,information,andfinancialflowsbetweenBoeing,fastener

manufacturers(suppliers)andTier‐1partnersunderFPM.4. EvaluateFPMfromtheperspectiveofBoeing,fastenermanufacturers,Tier‐1partners,

andotherstakeholders.5. CritiquetheapproachtakenbyBoeinginimplementingFPM.Whatproblemshas

BoeingencounteredinrollingouttheFPM?6. Whataresomeofthecosts,benefitsandrisksassociatedwitha“customermanaged

inventory”strategysuchasFPM.

YoushouldalsoreadthearticlebyChrisTang,andJoshZimmerman,MitigatingNewProductDevelopmentRisks–TheCaseoftheBoeing787Dreamliner,Chapter11inM.S.SodhiandC.S.Tang.ManagingSupplyChainRisk.Springer.2012,asyouprepareyouranswerstothecase.Readthecaseandthinkaboutthefirst4assignmentquestions.Wewilldiscussthiscaseinclass,(remotesession)atWhartonWestonOct.13,andalsoduringourvisittoBoeing’sheadquartersinSeattleonNov.16,wherewewillhavetheopportunitytodiscussthecasewithBoeingmanagers.Yourpaper,whichincludesanswerstoall5questions,isdueonNov.25,postedonCanvas.IndustryBackgroundandSiteVisitReport(Teamassignment‐20%ofyouroverallgrade)Eachteamwillbeassignedtoacompanythatwewillbevisitingduringthesemester.Priortothevisit,theteamwillprepareandpresentordistributeareportthatprovidesbackgroundinformationconcerningtheindustryandthecompanythatwewillbevisiting.Topicsthatcouldbeincludedinthisreportinclude:currentcompetitivetrends,technology


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developmentsaffectingboththeproductandprocesses,theregulatoryenvironment,etc.Theteamwillthenusetheplanttourassessmenttool(i.e.“ReadaPlantFast”byGoodson)toprepareareportbasedonthevisit.Thereportswillbepresentedand/orsharedwiththefullclassafterthevisits.GroupformationsaredueonSept.7,(andonegroupwillbeassignedtodotheSept.9Applevisitreport).Thesamegroupswillbeusedfortheanalyticpaper.Eachgroupwillpresenttheirindustry/companybackgroundreporttotheclassonNov.3.Analyticpaper(Teamassignment‐20%ofyouroverallgrade)Prepareananalyticalpaperthatidentifiesacompanythathasrecentlyadjustedormodifieditsoperationsstrategyconcerningissuessuchassupplychaindesignandmanagement,globalsourcing,useoftechnology,productdesign,etc.andaddressesthequestionslistedbelow.Youwillproposeyourchoiceoffocalfirmtothefacultyforapproval;wewilltrytoavoidduplicationsincethesepaperswillbearesourcefortheentireclassoncecompleted.Papersshouldbewrittenbyagroupconsistingof3or4students,therequiredlengthis2,250words(plusorminus5%;double‐spaced;putwordcountandyournameatthetop).Youranalysisshouldaddressthefollowingquestions:

1. Whatisthecurrentdesignandmanagementofthecompany’ssupplychainandhowhasthisdesignandmanagementbeenaffectedbytherecentstrategychange?

2. Whatarethereasonsthatthecompanyhasofferedformakingthechangestoitsoperationsstrategy?

3. Whatisyourassessmentofthereasonsthatthesechangeshavebeenmade?4. Whatistheexpected(orobserved)impactofthestrategychangeoncompetitive

position,financialperformanceandoperationperformance?5. Compareandcontrasttowhatothercompaniesinthesameindustryaredoing,i.e.

haveothercompaniesintheindustrymadeoperationsstrategychanges?Arethedecisionsoftheothercompaniesthesameordifferent?Why?Aretheretrendsfortheindustry?

6. Whatarethekeychallengesfacingtheindustrywithrespecttosupplychainsourcing,technologyandcompetition?

Werecommendthatyouconsideracompanyfromoneoftheindustries,whichwewillbeinteractingwiththroughcompanyvisitsandguestspeakersessions,(butnotoneofthecompanieswevisitorfromwhomwehostaspeaker).Pleaseindicateyourfirstandsecondchoicesforacompany/industryinadvance,(dueSept.20),sothatwecaninsurethatawiderangeofissuesandsettingsiscovered.Totheextentpossible,theindustrybackgroundandsitevisitreportgroupassignmentswillbemadetocomplementtheanalyticpapercompanytopicselected.Groupassignmentsfortheanalyticpaperandindustry/visitreportwillbefinalizedonSept.21.


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RecommendedIndustries:AerospaceandDefense;Apparel;Appliances;Automobiles;Computers/InformationandCommunicationTechnologies(ICT);ConsumerElectronics;Entertainment;Gaming;LogisticsandDistribution;HealthCare;Retail;SemiconductorManufacturingandSemiconductorEquipment;Toys.

ThispaperisdueonDec.2,postedonCanvas,andwillbediscussedonDec.6atWhartonWest.Eachteamwillberequiredtopresentabrief(10minute)presentationdescribingthefindingsoftheiranalyticpaper.Finalreflectionpaper(Individualassignment‐15%ofyouroverallgrade)Thisindividualassignmentisanopportunitytoreflectonwhatyouhavelearnedinthecourseandthroughthesitevisits.Itisworth30%ofyourgradeandisdueonDec.15,postedonCanvas.Youshouldgiveyourthoughtson1)thecurrentstatus,2)futuretrendsand3)keydriversofoperationsstrategyandsourcingdecisionsintheindustrieswevisited.Ourguidelineforlengthis750words,roughlythreepages,althoughthisisarecommended,butnotrequired,length;yourpapercanbeeithershorterorlonger,aslongasitcapturesyourthoughtfulreflectionsonyourexperienceinthecourse.


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DetailedSchedule

Dates Session Location Assignment8/15 ‐‐‐ ‐‐‐ Courseapplicationdue

8/26 ‐‐‐ ‐‐‐ Coursetravelexpensepaymentdue

9/07/201610:00am‐11:30pm

1‐A:OpeningclassandOperationsStrategylecture

WhartonWest ReadtheFisherandLeearticles.Thinkofsomecurrentexamplesofthevariousoperationsstrategyconcepts.

9/07/201611:30am‐12:00pm

1‐B:PlantTours&IndustryReports

WhartonWest Formgroupsforgroupassignments

9/08/20161:30pm‐3:00pm

2:SupplyChainRiskManagementVisitor:JamesSteele,GlobalSupplyChainManager,Cisco

WhartonWest ReadtheTohukucaseandthefirst9pagesoftheHIN!Case.Thinkabouttheassignmentquestionsandpreparequestionsforourvisitor,JamesSteeleofCisco.Otherreadingsareforbackground.

9/09/2016‐8:30am‐4:00pm

3:CorporateVisittoAmazonFulfillmentCenter,inTracey,CA.

BoardbusatWhartonWestTraveltoTraceyCA.ReturntoWhartonWest

ReviewtheplanttourarticlebyGoodson.Noteinparticularhowmaterial,peopleandtechnologyaremanaged.

9/15 ‐‐‐ ‐‐‐ Ciscocasereportisdue

9/19/20161:30pm‐3:30pm

4:AzaganaCaseDiscussionVisitor:Tobeintroducedinclass

WhartonWest Readthecaseandbepreparedtodiscusstheassignmentquestions.Guajardopaperisforbackground.

9/20/20161:30pm‐3:30pm

5.SupplyChainStrategyforE‐CommerceVisitor:JimMiller,VPGlobalCapacityDelivery,Google

WhartonWest ComepreparedwithquestionsconcerningcurrentstrategydevelopmentsatGoogle.


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9/21/201612:00pm‐1:30pm

6.ToyotaProductionsSystem,Lean

WhartonWest ReadtheToyotacaseandtheNissanpaperbyEndo.ConsiderhowtheAndonprocedureworksandwhatareitscostsandbenefitsanditsimpactonquality.Also,thinkaboutrecenteventsintheautoindustrythatrelatetoqualityproblems.Thereisnoreportrequiredforthiscase.TheAmazonFulfillmentCentergrouptourreportwillbepresented.Wewillalsofinalizeothergroupcompany/industryassignments.

9/26 ‐‐‐ ‐‐‐ Azagnacasereportdue.

10/13/201612:00pm‐2:00pm

7:BoeingFastenersCaseDiscussion

RemoteClassroom(WhartonWestandWhartonPHL)

Readthecaseandpreparethefirst4assignmentquestionsfordiscussion.

10/20/20161:30pm‐3:30pm

8:GlobalSupplyPlanning–Sourcing&LocationDecisions


ReadthearticlesbyShihandbyCohenetal.Theotherarticlesareforbackground.

11/03/201612:00pm‐2:00pm

9:LogisticsSystemsandDistributionStrategy


ReadthetextchapterbyCachonandTerwiesch.GroupswillpresenttheirindustryreportsforourSeattleandSanDiego/Tijuanavisits.

11/08/2016‐7:30am‐5:00pm

10:VisittoUSNavy SanDiegoCA Wewilltheopportunitytoobserverecenttechnologydevelopments,visitaship(carrierwehope)andvisittheSealstrainingfacilitytolearnabouttheirsupplychainmanagementchallenges.


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11/09/2016‐7:30am‐3:00pm

11:VisittoTaylorGuitarCompany

SanDiegoCA Readthebackgroundreadingsandwatchthevideo.

11/10/2016‐7:30am‐5:00pm

12:Visittotwomaquiladorafactories.PlanistovisitWelchAllynandMedtronics

Tijuana,Mexico Thiswillgiveusanopportunitytoseehow“near‐shoring”worksinpractice.

11/11/2016‐7:30am‐5:00pm

13:Visittotwomaquiladorafactories.PlanistovisitandA&DcompanyandPlantronics

Tijuana,Mexico Thiswillgiveusanopportunitytoseehow“near‐shoring”worksinpractice.

11/14/2016‐10:00am‐12:00pm

14:SupplyChainStrategyatUberVisitor:GarrettvanRyzin

WhartonWest ProfessorRyzinisavisitingscholaratUber.Hewilldiscusstheirpricingandrevenuemanagementstrategies

11/16/2016‐7:00am‐5:00pm

15:VisittoBoeingEverettWaplant

Seattle,Wa OurvisitwillincludeaVIPtourofthe787factory,theDeliveryCenter(wherecustomerstakedeliveryoftheiraircraft)andtheProductionIntegrationCenter(whichhandlessupplychainriskandcoordination).

11/17/2016‐8:00am‐1:00pm

16:VisitCostcodepotandwarehousestore

Seattle,Wa WewilllearnabouttheCostcobusinessmodelandhowitissupportedbytheirlogisticsandsupplychainpolicies.

11/17/2016‐2:00pm‐4:30pm

17:AmazonHeadquarters Seattle,Wa Wewillmeetwithmanagerstodiscusssupplychainandlogisticsstrategydevelopments.

11/25 ‐‐‐ ‐‐‐ Boeingcasereportdue

12/2 ‐‐‐ ‐‐‐ Analyticpaperdue

12/05/2016‐10:00am‐12:00pm

18:LogisticsandDistributionstrategyinthePharmaindustryVisitor:BrianDoyle,Sr.Director,6Sigman,Mckesson

WhartonWest Wewilllearnaboutthedistributionstrategyatoneoftheleadingdistributorsofdrugsandmedicalproducts.


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12/05/2016‐2:00pm‐4:30pm

19:LogisticsSupportTechnologySystemsVisitor:RyanPeterson,CEO,Flexport

WhartonWest Wewillhearabouttechnologytosupportglobalshipping.

12/05/2016‐10:00am‐12:00pm

20:AnalyticPaper–GroupPresentations

WhartonWest Eachgroupwillpresentasummaryoftheiranalyticpaper

12/05/2016‐4:00pm‐5:00pm

21:DebriefSession WhartonWest Individualcommentsonthecourse

12/05/2016‐5:00pm–6:30pm

21:FinalSession&Reception

WhartonWest Reviewhighlightsofthecourse.Informalreception.

12/15 ‐‐‐ ‐‐‐ Reflectionpaperdue


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OptionalReadingList

Note:Requiredreadingsareassignedforthelectureclassesandthewrittenassignments.AllrequiredreadingswillbepostedonthecourseCanvassite.AsubsetoftheoptionalreadingswillalsobepostedontheCanvassiteandwillbeupdatedthroughoutthesemester.Studentsareencouragedtosuggestcurrentreadingstobesharedwiththeclass.

Optionalreadingsprovide:1)recentexamplesofreshoring/nearshoringandinsourcing,ascounter‐trendstooffshoringandoutsourcing,inavarietyoffirms,industries,andcountries,fromthebusinesspress;2)comprehensivereportsbythink‐tanks,consultingfirms,andgovernmentagenciesontheeconomicandpolicyissuessurroundingmanufacturinginadvancedeconomycountriessuchastheU.S.andJapan;3)examplesofresearcharticlesbyfacultythatconveytheirinterestsandprovidecontextforthiscourse.Suggestedbooksarelistedaswell.

1) Recentexamplesofreshoring/nearshoringandinsourcingfromthebusinesspressa) “Mexico’smaquiladoras:Bigmaqattack”,TheEconomist,Oct26th,2013.b) “Yen’sShiftingValueHelpsJapaneseCarmakersMeetNewChallenges”,

Knowledge@Wharton,April01,2014.c) “ReshoringCouldCreate200,000jobsovernextdecade”,FinancialTimes,March

11,2014.d) “UKReshoringFacesBattleIndustrialistsWar”,FinancialTimes,January24,

2014.e) “FewUSReshoringsGoAhead,StudyFinds”,FinancialTimes,September7,

2014.f) “ReshoringDrivenbyQuality,NotCosts,SayUKManufacturers”,Financial

Times,March3,2014.g) "TheTopSupplyChainDisastersofAllTime",SupplyChainDigest,D.Gilmore,

May7,2009h) “RebalancingYourSourcingStrategy”,McKinsey&Co.,July2014.i) A.PollackandS.Lohr,"AJapanesePlantStrugglestoProduceaCriticalAuto

Part",NewYorkTimes,April278,2011.j) “JapanRe‐EmergesintheAerospaceArenaWithaNewJet”,H.Tabuchi,New

YorkTimes,April9,2013.k) “RequiemforaDreamliner,”JamesSurowiecki,TheNewYorker,Feb.4,2013.l) “NewProblemswithBoeing787,”C.DrewandJ.Mouawad,NYTimes,Dec.10,

2012.m) “DoesAmericaReallyNeedManufacturing?”GaryP.PisanoandWillyC.Shih.

HarvardBusinessReview,March2012.n) “MakingItinAmerica.”AdamDavidson.TheAtlantic,Jan‐Feb.2012.


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o) “WinningtheRacewithEver‐SmarterMachines.”EricBrynjolfssonandAndrewMcAfee.SloanManagementReview,Winter2012.

p) “Offshoring,Onshoring,andtheRebirthofAmericanManufacturing.”MichaelDolega.TDEconomics,October2012.

q) “InShiftofJobs,AppleWillMakeSomeMacsinU.S.,”C.RampallandN.Wingfield,NYTimes,Dec.6,2012.

r) “FlextronicsCEOSeesHopeforU.S.TechProduction,”J.Hagerty,WallStreetJournal,January4,2013.

s) “HondaBolstersItsProductioninNorthAmerica,”M.Ramsey,WallStreetJournal,Aug.12,2012.

t) “ToyotaSaysNoFullProductionUntilYear’sEnd,”H.Tabuchi,NYTimes,April22,2011.

u) “JapaneseManufacturersHelpSaveChipMakerRenesas,”H.Tabuchi,NYTimes,December10,2012.

v) “NissantoInvest$358millioninThaiPlant,”YahooNews,Nov.9,2012.w) “ToshibaTurnsOverseastoReduceProcurementCosts,”J.Osawa,WallStreet

Journal,Aug.16,2010.x) “Hitachi’sRevivalIsn’tSoGoodfortheCityofHitachi,”NYTimes,Dec.28,2012.y) “ChinaLosesEdgeAsWorld’sFactoryFloor,”WallStreetJournal,Jan.17,2013.z) “HedgingChinaRisks,JapanFirmsTurntoBoomingSoutheastAsia,”S.

Grudgings,Reuters,Nov.5,2012.aa) “TheInsourcingBoom,”CharlesFishman,TheAtlantic,Dec.2012.bb) “Mr.ChinaComestoAmerica,”JamesFallows,TheAtlantic,Dec.2012.cc) “ShouldManufacturingJobsBe‘Reshored’totheU.S.?”Knowledge@Wharton,

Sept.26,2012.dd) “AmericanIndustryIsOntheMove,”S.Mallaby,FinancialTimes,Jan.8,2013.

2) In‐depthreportsfromthink‐tanks,consultingfirms,governments

a) “ManufacturingFootprints:GettingtoPlantX”,K.O’MarahandH.Lee,SCMWorld,2013.

b) “U.S.ManufacturinginInternationalPerspective.”MarcLevinson.CongressionalResearchService,Feb.2013.

c) “U.S.ManufacturingNearsaTippingPoint,”BostonConsultingGroup,2012.d) “LocatingAmericanManufacturing:TrendsintheGeographyofProduction,”

BrookingsInstitute,April2012.e) “Tradingmyths:AddressingMisconceptionsaboutTrade,Jobs,and

Competitiveness,”McKinseyGlobalInstitute,May2012.f) “ManufacturingtheFuture:TheNextEraofGlobalGrowthandInnovation,”

McKinseyGlobalInstitute,November2012.


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g) “Manufacturing’sNewEra:AConversationwithTimkenCEOJamesGriffith,”McKinseyandCompany,December2012.

h) “Offshoring(OffshoreOutsourcing)andJobLossamongU.S.Workers,”CongressionalResearchService,December2012.

i) “RebalancingyoursourcingstrategyOffshoringisaliveandwell,butit’snolongertheonlyanswer,”byConradinMerk,JonathanSilver,andFabioD.Torrisi,McKinseyandCompany,July2014.

3) Faculty‐authoredarticlesa) “WinningintheAftermarket,”MorrisA.Cohen,NarendraAgrawal,andVipul

Agrawal,HarvardBusinessReview,May2006.b) “ValuingOperationalFlexibilityunderExchangeRateRisk,”ArndHuchzermeier

andMorrisA.Cohen,OperationsResearch,Vol.44,No.1,Jan.‐Feb.1996.c) “LessonsfromProductArchitectureInitiativesintheGlobalAutomotive

Industry,”JohnPaulMacDuffie,GlobalStrategyJournal,Vol.3,No.1,2013.d) “GetReadyfortheComplexityRevolution,”JohnPaulMacDuffieandTakahiro

Fujimoto,HarvardBusinessReview,June2010.e) “CollaborationinSupplyChains:WithandWithoutTrust,”JohnPaulMacDuffie

andSusanHelper,chapter10inTheCorporationasaCollaborativeCommunity,PaulAdlerandCharlesHeckscher(editors),OxfordUniversityPress,2007.

f) “SupplyChainCompetitivenessandRobustness:ALessonfromthe2011TohokuEarthquake,”TakahiroFujimoto,DiscussionPaper#362,ManufacturingManagementResearchCenter,UniversityofTokyo,September2011.

g) H.Matsuo,“ImplicationsoftheTohokuEarthquakeforToyota’sCoordinationMechanism:SupplyChaindisruptionofAutomotiveSemiconductors”,2014.

h) “CreatingtheNewGlobalEnterprise:TransportationPanel”,summaryfromWhartonconferenceonUS‐JapaneseManufacturingAlliances,April7‐8,1993.

4)SuggestedBooksa) ProducingProsperity:WhyAmericaNeedsaManufacturingRenaissance.GaryP.

PisanoandWillyC.Shih.Boston,MA:HarvardBusinessSchoolPress.b) RaceAgainsttheMachine:HowtheDigitalRevolutionisAcceleratingInnovation,

DrivingProductivity,andIrreversiblyTransformingEmploymentandtheEconomy.EricBrynjolfssonandAndrewMcAfee.Lexington:DigitalFrontierPress,2011.

c) TheNewIndustrialRevolution:Consumers,GlobalizationandtheEndofMassProduction.PeterMarch.NewHaven:YaleUniversityPress,2012.

OIDD 680 Operations Strategy Practicum Semester in San ... · 6/30/2016 · and Europe and into...

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