ogistics 215 – Fall 201

SCM-630 Spring 2011 (Second Session)

GLOBAL SUPPLY OPERATIONS Syllabus

Created By Date

Doug Parkes March 30, 2011 Version 05

Table of Contents

1.0 General Information ............................................................................................................ 2

2.0 Individual Written Case Analyses ........................................................................................ 5

3.0 Written Exam ...................................................................................................................... 6

4.0 Discussion Board ................................................................................................................ 7

5.0 Learning Approach ............................................................................................................. 8

6.0 Biographical Sketch Of Faculty Member ............................................................................. 9

7.0 Learning Schedule by Week ............................................................................................. 10

INTRODUCTION – SETTING THE STAGE ............................................................................................ 10

PART I: SUPPLY CHAIN STRATEGY AND POLICY ........................................................................... 10

PART II: SUPPLY CHAIN GLOBALIZATION ....................................................................................... 11

PART III: SUPPLY CHAIN MANAGEMENT FOR SUSTAINABILITY .................................................. 11

PART IV: SUPPLY CHAIN MANAGEMENT IN SERVICE INDUSTRIES ............................................. 12

PART V: SUPPLY CHAIN RISK MANAGEMENT ................................................................................. 12

PART VI: SUPPLY CHAIN AGILITY & PERFORMANCE .................................................................... 13

FINAL EXAM ........................................................................................................................................... 13

8.0 Studying & Learning from Cases - Case Analysis Methodology ........................................ 14

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1.0 General Information

START Date: March14, 2011 PLACE AND TIME: This is an on-line ―blended learning‖ course. There are no regularly scheduled ―face-to-face‖ class sessions. However, if agreed, some face-to-face optional sessions may be offered for special purposes. The blended learning approach incorporates standard e learning with added Elluminate sessions on a regular weekly schedule. Duplicate Elluminate sessions will be held – one in the morning and one in the evening of one day per week. The day of the week will be determined by best fit for participants. Elluminate Sessions will be recorded to allow access by students unable to participate in ―live‖ sessions. Elluminate sessions will be used to present / clarify course concepts and allow opportunity for sharing and dialogue between the Professor and Participants. The professor can be contacted by e-mail or by telephone, or with a face-to-face conversation. Telephone and face-to-face conversations will be set up at mutually convenient times. FACULTY MEMBER: Doug Parkes E-Mail: dgparkes@uncg.edu or dgparkessr@triad.rr.com (Home Office)

6089 Windsor Farme Rd, Summerfield, NC (Home Office) Department of Information Systems and Operations Management Phone Numbers: (336) 643-7632 (Home Office) APPOINTMENT TIME: Office hours by appointment Please send an e-mail message or call to discuss any problems or suggestions concerning the course. BRIEF DESCRIPTION OF THE COURSE: This course presents resources and information relevant to creating and delivering products globally. Primary emphasis is placed on inter-firm systems, industry supply chains, transportation, global sourcing, and customs clearance issues.

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READING MATERIALS: Text Supply Chain Saves the World. Boston, MA: AMR Research (2006). A limited number of copies of the book are available from www.amazon.com. However, we have

placed two copies in the library and included chapter excerpts on eReserve in Blackboard: https://blackboard.uncg.edu/bbcswebdav/library/eReserves/SCM-630-11CMB-Spring2011

Case Studies VF Brands: Global Supply Chain Strategy. Harvard Business School Case Number 9-610-022. Gary P. Pisano; Pamela Adams (2009). British Petroleum (PLC) and John Browne: A Culture of Risk Beyond Petroleum (A). Harvard Business School Case Number 908M02. Murray J. Bryant; Trevor Hunter (2008) Novartis AG: Science-Based Business. Harvard Business School Case Number 9-608-136 H. Kent Bowen; Courtney Purrington (2008) The cases can be purchased from www.hbr.org.

Click the link below to order the SCM-630 Course Pack from Harvard Business Review

http://cb.hbsp.harvard.edu/cb/access/8556361 Additional articles will be posted on Blackboard as recommended reading for the course.

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WITHDRAWAL: April 8th, 2011 (Friday) is the last date to withdraw and receive a "W". PRE-REQUISITE COURSES AND REQUIREMENTS Pre-requisite: SCM 601 or MBA 607. Self-motivation and commitment to learning represent key requirements for success. Students can expect the faculty member to be equally motivated and supportive in this learning environment. Students should possess excellent written communication skills. Grammar and spelling should be thoroughly proofed prior to sending all written communications & assignments. GRADING The course grade is based on three written case analyses, an open-book / open-notes exam, and participation and contribution to the Discussion Board on Blackboard. Grades are based on the following "absolute" scale. Points / Date Due Individual Written Case Analysis #1 / 100 pts Individual Written Case Analysis #2 / 100 pts Individual Written Case Analysis #3 / 100 pts Open-Book Open-Notes Written Exam / 100 pts Discussion Board / 100 pts ----- TOTAL 500 ----- A 470; A- 455; B+ 439; B 419; B- 404; C+ 389; C 369; F > 369. Grading Template – Posted on Blackboard in Template Section

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2.0 Individual Written Case Analyses

Individual case analyses are designed to challenge the student’s analytical skills and highlight key learning elements from the course content. The following case studies have bee selected.

1) ―VF Brands: Global Supply Chain Strategy‖ 2) ―Novartis AG: Science-Based Business‖ 3) ―British Petroleum (PLC) and John Browne: A Culture of Risk Beyond Petroleum (A)‖

Specific issues to be covered for each case have been provided for the appropriate week(s) in this syllabus. The written analysis represents each student’s recommendations on the situation(s). Much of the grade beyond a "passing score" depends on the student's ability to go beyond the "average" solution and provide innovative approaches, solutions, and appropriate implementation. Please detail any assumptions made in your written analysis. Students should work on the written case analyses on an individual basis (not in groups). A Word Template will be provided on Blackboard for each student to use in the analysis. The template will include a section for attaching additional documents, spreadsheets, references a student deems appropriate. The analysis document should be created in such a form (grammar, spelling, etc.) that is appropriate for good business communication. Outside references should be clearly presented to allow follow-up if desired. No minimum or maximum length is specified. Individuals are requested to refrain from repeating the details provided in the case (just to fill up space) in their analysis. That is, individuals are requested to cover the topics thoroughly, but efficiently. Do not add verbiage for the sake of length. Feel free to include diagrams, films, photos, sketches, or other types of illustrations in the analysis. It should be noted that appropriate credit will be given for those individuals who are in a position to integrate their analysis with readings (text and articles) presented outside the case. The case analysis will be graded on organization, thoroughness, insight of analysis, and written communication skill. Students are expected to read and adhere to the suggestions made in the last section (―Studying and learning from Cases‖) of this syllabus.

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3.0 Written Exam

OPEN-BOOK OPEN-NOTES WRITTEN EXAM The open-book open-notes written exam will be available on Blackboard at 8:00 a.m. Sunday, two weeks prior to the end of the Session. Your can refer to all the materials (text book for the courses, articles posted on blackboard, and any other published books and journal articles from the UNCG’s on-line library resources) available at your disposal. Appropriate citations should be provided. A template will be provided via. Blackboard for use with the Final Exam. The Final Exam will be due before Sunday am just prior to end of the Session. RE-EXAMINATION POLICY As a rule, re-examinations will not be held. Inability to complete the written examination due to illness, summons to jury duty, or any other compelling reason should be backed by the appropriate documents (e.g., medical certificate, etc.) in order to qualify for a re-examination. If possible, meet / talk with the professor before missing the examination to discuss the circumstances.

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4.0 Discussion Board

DISCUSSION BOARD Each student should be prepared to provide comments (and responses) on a weekly basis on the aspects of the material assigned for each week session, be it text, articles, and/or cases. One or more discussion question(s) / issue(s) will be posted on Blackboard by Sunday morning (two weeks ahead of due date). The questions will be related to the material for each of the 6 chapters in the text (titled ―Supply Chain Saves the World‖). Each student is required to post a COMMENT (not exceeding 300 words) by 11:00 p.m. on Wednesday of the week due. The comment should be based on the reading from the textbook, articles posted in the appropriate section of Blackboard, comments and responses from previous weeks, or any other published source appropriately cited. Students should not refer to other responses for the week until after submitting their own. Then students should submit a RESPONSE (not exceeding 300 words) by 11:00 p.m. on the following Saturday. The response should be based on comments made by the other students, further reading of the textbook, articles posted in the Course documents section of Blackboard, comments and responses from previous weeks, or any other published source appropriately cited. Students should especially comment on key ideas / learning they gained from others sharing. The professor will provide his thoughts on each round of comments and responses by 11:00 p.m. each Monday. In all, each student is required to post 6 COMMENTS and 6 RESPONSES. Students could bring in their work experience into the comments and responses. Students will be evaluated on the quality of their comments and responses (not quantity) of their contribution. Discussion Board contribution points will be accumulated based on how perceptively a student analyzes the situation being studied, the usefulness of the observations and suggestions made by the student, and the student's ability to put across ideas with clarity and conviction in a succinct and cogent manner. Non-contribution to the Discussion Board will dramatically reflect in a student's contribution grade. The professor will provide a mid-module customized feedback to each of the students on the Discussion Board contribution, so that appropriate improvements can be made. Likewise, the professor will solicit feedback for his improvement by the students at the same time.

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5.0 Learning Approach

BLENDED (INTERACTIVE) LEARNING APPROACH The Professor will utilize a blended learning approach even though this is primarily an e-learning experience. This combines: self-learning (reading text / articles); business analysis (case studies, Discussion Board); presentations (Elluminate Sessions); and opportunities for group interaction (Discussion Board and Elluminate Sessions). The professor will facilitate learning through the venues mentioned above and is also available for individual or group consultation as required. The textbook, published articles, and cases will be used as primary reference materials. A list of pertinent topics is included in the ―learning schedule by week section‖ below. Note: the syllabus provides a general plan for the course; deviations / alterations may be necessary as the course progresses. However, the Professor will maintain a 2-week “frozen period” (no critical changes in assignments 2 weeks prior to due) to ensue stability in the program. COURSE OBJECTIVES Upon completing the course, the student should be able to:

Describe the state-of-the-art in managing global supply chains and operations.

Analyze global operations and logistics problems on a functional and organization-wide basis.

Use key criteria in making decisions related to site selection, global facilities configuration, and international sourcing networks’ development.

Elaborate on the complexities associated with implementing changes in global operations and logistics.

Identify and analyze risk factors in global supply operations.

Discuss the ethical issues as they related to global environments TECHNOLOGY APPLICATIONS There will be some coverage of technological advances relating to supply chain management in the course. ETHICAL PERSPECTIVES Ethical issues are fairly closely tied to supply chain management. There will be some coverage of these ethical issues as they relate to the course. GLOBAL PERSPECTIVES There will be a significant coverage of global perspectives in this course. POLITICAL, SOCIAL, LEGAL, AND REGULATORY ISSUES Political, social, legal, and regulatory issues, to the extent applicable, will be covered in this course. It is anticipated that there will be some coverage of these issues. IMPACT OF DEMOGRAPHIC DIVERSITY There will be some coverage of the impact of demographic diversity on supply chain management.

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6.0 Biographical Sketch Of Faculty Member

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7.0 Learning Schedule by Week

INTRODUCTION – SETTING THE STAGE

Week: 1 Date: March 14 Chapter VII - XII – Preface & Introduction Topics: 1) Discuss the major goals of supply chain management 2) Describe the impact of global supply chain management on key social and political issues 3) Elaborate on how supply chain functions have changed over the last century

Assignments: Submit Background Information on Discussion Board by Wednesday evening. Complete company analysis spreadsheet by Saturday evening.

PART I: SUPPLY CHAIN STRATEGY AND POLICY

Week: 2 Date: March 21 Chapter 1 - Strategy and Policy Learning Topics: 1) Discuss how the Demand Driven Supply Network (DDSN) model differs from the industrial-era supply chain model. 2) Describe how businesses are organized in the three domains of demand, supply, and product. 3) Elaborate on how the Supply Chain Top 25 organizations were identified. Discuss the salient features of the Supply Chain Top 25 firms

Assignments: Comment on Blackboard Question for “Strategy and Policy” by end of Wednesday. Respond to other comments on Discussion Board by end of Saturday. Complete written case analysis by end of Saturday evening.

Case: VF Brands: Global Supply Chain Strategy The written analysis on the ―VF Brands: Global Supply Chain Strategy‖ case should be carried out incorporating the following questions: 1) Evaluate the Global Supply Chain Strategy at VF Brands. Substantiate your response with a detailed analysis.

2) Take on the role of Chris Fraser (President, Supply Chain International for VF Brands) and elaborate on what should be done in the future. Substantiate your response in as much detail as possible.

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PART II: SUPPLY CHAIN GLOBALIZATION

Week: 3 Date: March 28 Chapter 2 – Supply Chain Globalization Learning Topics: 1) Discuss how supply chain globalization affects business strategy.

2) Describe the lessons learned on how companies organize to cope with global markets.

3) Elaborate on the unique risks in doing business in China (and India).

Assignments: Comment on Blackboard Question for “Supply Chain Globalization” by end of Wednesday. Respond to other comments on Discussion Board by end of Saturday.

PART III: SUPPLY CHAIN MANAGEMENT FOR SUSTAINABILITY

Week: 4 Date: April 4 Chapter 3 – The Greening of the Supply Chain Learning Topics: 1) Discuss the regulations (such as Restriction on hazardous Substances, Waste Electrical and Electronic Equipment, End-of-Life Vehicles, and Registration, Evaluation, and Authorization of Chemicals) and the AMR Research Model for Product Compliance. 2) Describe how companies are going beyond the regulations and turning ―green into gold‖. Substantiate on how the issue is becoming an executive- and board-level concern. 3) Elaborate on the green movement in the retail industry.

Assignments: Comment on Blackboard Question for “Greening of the Supply Chain” by end of Wednesday. Respond to other comments on Discussion Board by end of Saturday. Complete written case analysis by end of Saturday evening.

Case: Novartis AG: Science-Based Business The company faces a number of challenges, including generic drugs, patent infringements in developing countries, and pricing pressure from governments and health insurers in the United States. The written analysis on the ―Novartis AG: Science-Based Business‖ case should be carried out incorporating the following questions: 1) What strategy is best for Novartis regarding: how much to spend on R&D overall, how to arrive at the right mix between organic growth and external collaboration and in-licensing, and how to measure success when it takes so many years to develop and launch a successful drug. 2) How can Novartis develop breakthrough science and technology for their business advantage? What is a possible role of inter-company collaboration?

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PART IV: SUPPLY CHAIN MANAGEMENT IN SERVICE INDUSTRIES

Week: 5 Date: April 11 Chapter 4 – Supplying Health Learning Topics: 1) Elaborate on the supply chain issues in global healthcare.

2) Discuss the ethical considerations in global supply networks for healthcare and other sectors of the global economy.

3) Describe the role of supply network management in tackling crises such as the avian flu threat.

Assignments: Comment on Blackboard Question for “Supplying Health” by end of Wednesday. Respond to other comments on Discussion Board by end of Saturday. Complete follow-on analysis of prior case by end of Saturday evening.

PART V: SUPPLY CHAIN RISK MANAGEMENT

Week: 6 Date: April 18 Chapter 5 – Risk Management: The Supply Chain Responds Learning Topics: 1) Discuss the concept of risk management on a global scale and map the strategies that companies can put into place to moderate the unpredictable world. 2) Describe how companies have found ways to mitigate risk, and some cases, directly improve the bottom line. 3) Elaborate on the strategies that governments and businesses are working together to help secure both supply and people in the increasingly interdependent global economy.

Assignments: Comment on Blackboard Question for “Risk Management” by end of Wednesday. Respond to other comments on Discussion Board by end of Saturday. Complete written case analysis by end of Saturday evening.

Case: British Petroleum (PLC) and John Browne: A Culture of Risk Beyond Petroleum (A) The written analysis on the ―British Petroleum (PLC) and John Browne: A Culture of Risk Beyond Petroleum (A)‖ case should be carried out incorporating the following questions: 1) What is the role of a board with respect to risk management as well as with respect to its social responsibilities to various stakeholders? 2) Identify and discuss risk minimization strategies for the following types of risk and the role of the board in each: Environmental, Safety, Labor, Reputation/image, Legitimacy, Political, Country, Asset appropriation, Price of supply and Production Volatility.

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PART VI: SUPPLY CHAIN AGILITY & PERFORMANCE

Week: 7 Date: April 25 Chapter 6 – The Practitioners Guide Learning Topics: 1) Elaborate on the five essential strategies of demand driven supply networks.

2) Discuss the concept of supply chain agility.

3) Describe the specifics of performance measurement and financial considerations in global supply operations.

Assignments: Comment on Blackboard Question for “Practitioner’s Guide” by end of Wednesday. Respond to other comments on Discussion Board by end of Saturday.

FINAL EXAM

Week: 7 Date: May 2 Final Exam Learning Topics: 1) Identification of ways to improve this course

2) Completion of Final Exam.

Assignments: 5/02 COMMENT ON RECOMMENDATIONS FOR COURSE IMPROVEMENT 5/02 OPEN-BOOK OPEN-NOTES WRITTEN EXAM DUE (11: 00 P.M.) Case: B/E Aerospace Incorporated The written analysis on the ―B/E Aerospace Incorporated‖ case should be carried out incorporating the following questions: 1) What should the Commercial Aircraft Products Group (within the B/E Aerospace Incorporated) do in the next 5 years to create the 21st century global supply organization? 2) What specific steps will Ms. Brown take in the next one year that will enable the proposal to bear fruit? What are Ms. Brown’s expectations of Mr. Kenneth Rusterholz for the next one-year? That is, what does Ms. Brown expect (in terms of resources) from Mr. Rusterholz so that she can deliver on the proposal? 3) How do the senior managers, at the end of five years, know that the proposal was well executed? That is, elaborate on the performance measures that will be affected. How will the specific steps to be taken by Ms. Brown in the next one year affect the performance measures?

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8.0 Studying & Learning from Cases - Case Analysis Methodology

The cases featured in this course are representative of real-world problems that managers in different organizations have to face and resolve. Although designed principally for use in course discussions, many of these cases can offer valuable insights to the individual reader. The comments that follow are directed primarily at participants in courses and seminars who have been assigned one or more of these cases to prepare for subsequent class discussion. Unlike methods of instruction that use lectures (with PowerPoint slides) and textbooks, the case method of instruction does not present students with a body of tried and true knowledge about how to be a successful manager. Instead, it provides an opportunity for students to learn by doing. As a student, you may find that dealing with cases is very much like working with the actual problems that people encounter in their jobs as managers. In most instances, you’ll be identifying and clarifying problems facing the management of a company or non-business organization, analyzing qualitative information and quantitative data, evaluating alternative courses of action, and then making decisions about what strategy to pursue for the future. You may enjoy the process more—and will probably learn more—if you accept the role of an involved participant rather than that of a disinterested observer who has no stake, or interest, in resolving the problems in question. The goal of case analysis is not to develop a set of ―correct‖ facts but to learn to reason well with available data. Cases mirror the uncertainty of the real-world managerial environment in that the information they present is often imprecise and ambiguous. You may perhaps be frustrated that there is no one right answer or correct solution to any given case. Instead, there may be a number of feasible strategies management might adopt, each with somewhat different implications for the future of the organization, and each involving different trade-offs. In this course, you’ll be exposed to a wide range of different management situations within a relatively short time. As a result, the cases presented in this course will collectively provide a much broader exposure to global supply operations issues than most managers experience in many years on the job. PREPARING A CASE Just as there is no one right solution to a case, there is also no single correct way of preparing a case. However, the broad guidelines outlined in ―Preparing a Case‖ may help familiarize you with the job of case preparation. With practice, you should be able to establish a working style with which you feel comfortable. The guidelines on initial analysis and on developing recommendations should also serve you well for preparing written case reports or case-based exams. First, it’s important to gain a feel for the overall situation by skimming quickly through the case. Ask yourself:

What sort of organization does the case concern?

What problems does management appear to be facing?

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Preparing a Case: A Brief Outline _____________________________________________________________________ I. Initial fast reading

No notes

Get a feel for what’s going on

Think about major problems and forces present

II. A second careful reading

Make notes identifying: o Organizational objectives o Nature of problem(s) o Key facts o Key decisions

Evaluate and analyze case data

III. Development of specific issues

Identify alternative courses of action to meet objectives

Consider implications of each action

Provide recommendations, supported by analysis An initial fast reading, should provide a sense for what is going on and what information is being presented for analysis. Then you’ll be ready to make a very careful second reading of the case. This time, seek to identify key facts so that you can develop a situation analysis and clarify the nature of the problems facing management. Try to make notes in response to such questions as: What decisions need to be made, and who will be responsible for making them? What are the objectives of the organization itself and of each of the key players in the case? Are these objectives compatible? If not, can the problem be reconciled, or will it be necessary to redefine the objectives? What resources and constraints are present that may help or hinder attempts by the organization to meet its objectives? Make a particular effort to establish the significance of any quantitative data presented in the text of the case or, more often, in the exhibits. Combining and manipulating data presented in different parts of the case might provide new insights. Don’t accept the data blindly. In the cases, as in real life, not all information is equally reliable or equally relevant. On the other hand, case writers won’t deliberately misrepresent data or facts to trick you. You can use materials (about the organization or the particular industry relevant to the case) outside of the case; however, you should make sure that the materials are published before the publication year of the case. At this point in the analysis, you should be in a position to summarize your evaluation of the situation and to develop some recommendations for management. Identify the alternative courses of action that the organization might have and then consider the implications of each alternative, including possible undesirable outcomes, such as provoking responses from stronger competitors. Ask yourself how short-term tactics fit with longer-term strategies. Relate each alternative to the objectives of the organization (as defined or implied in the case, or as redefined by you). Then, develop a set of recommendations for future actions with particular attention to implementation: * What resources—human, financial, or other—will be required? * Who should be responsible for implementation? * What time frame should be established for the various actions proposed? * How should subsequent performance be measured?