Faculty
Professor David F. Pyke
Objectives
In this course, we formulate a framework for developing and implementing a manufacturing strategy. The main focus of the course is designed to provide students with simple, powerful approaches for improving operations, particularly at smaller companies.
The objectives of the course may be stated as follows:
To equip future general managers, consultants and manufacturing managers with the perspectives and skills to effectively use manufacturing as a competitive weapon.
To develop a framework for the strategic management of manufacturing.
To develop facility with simple technical tools and frameworks that directly apply to operational decisions and that can be useful in adding value to manufacturing firms.
Requirements
Everyone is expected to attend and to prepare fully for each day. Failure to attend class can adversely affect your grade. If you plan on missing a class, let the professor know in advance in writing. If you miss class, you must hand in a one-page memo on the key lessons of the day. This allows your instructor to verify that you have captured the important issues from that session. The memo is due one week after the class you missed. At the beginning of the term, find someone who will pick up materials for you in case you do miss class. If you are unprepared for class, let the instructor know before class begins.
Due Dates:
All assignments are due in class at the beginning of the class session on the date given in the syllabus unless otherwise noted.
Homework:
You will have several homework assignments that can be done in groups of two. These are designed to exercise the skills introduced in class. One assignment asks for your case analysis prior to the class discussion.
Final Exam:
You will be given a final exam based on the assignments and content of the class. It will be a three-hour, take-home exam.
Class Participation:
You will be required to attend one of several tours of local factories. Details on times and locations will be provided.
Materials
Manufacturing Strategy: How to Formulate and Implement a Winning Plan, by J. Miltenburg, is a good overview of Manufacturing Strategy. It is not required but could be a helpful resource and is on reserve at Feldberg Library.
Other readings will be provided in class sessions.
Honor Code Guidelines
The following guidelines are intended to supplement your understanding of the Tuck MBA Honor Code for this course.
- As you prepare for class, you may work in groups and exchange ideas and recommendations. However, each student is expected to prepare each case fully and to contribute to the group discussion. Only those who contribute approximately equally to the preparation of a group homework assignment may take full credit for it. This does not mean that everyone's ideas must be included. It means that everyone should contribute about equally to the overall process.
- During class discussions, students should acknowledge the source of their comments. For instance, if a student contributes someone else's idea to the class discussion, the student should mention the source, such as: "Our group thought . . ."
- Homework assignments may be done in pairs.
- No late assignments will be accepted. In other words, late assignments receive a failing grade.
- The final exam should be done individually.
- In preparing for class or exams you may not use notes from any previous offering of this, or a similar, course or discuss the material with students who have already taken the course. This restriction extends to case-related information obtained from other sources.
- If you wish to use them during exams, keep a copy of all group assignments. Sharing of such material during exams is not permitted.
- Laptops may be used in class only when required for the class session. You should never check email or surf the internet during class. In other words, the Tuck Laptop policy applies in all respects to this course.
The Honor Principle provides a crucial element of trust in the Tuck Community. Please see Professor Pyke if you have any questions regarding its application to this course.
Grading
Homework 30%
Final Exam 50%
Class Participation 20%
Schedule
Wednesday 01/05
Case: Cummins Engine Company: Starting up "B" Crankshaft Manufacturing at the San Luis Potosi Plant.
After years of intense competition, during which it lost millions of dollars in a successful attempt to hold onto its share of the world diesel engine market against low-cost foreign competitors, the Cummins Engine Company is finally beginning to experience renewed growth and profitability. In particular, the demand for its "B" series engines is threatening to outstrip the company's production capacity. In resolving the case issues, we will introduce a framework for operations strategy and a number of the topics we will address in this course.
Read: A Framework for Operations Strategy
Questions:
Using the Framework for Operations Strategy, audit Cummins Manufacturing Strategy. What are their targets for cost, quality, delivery, and flexibility? What are their policies in each of the ten management levers (to the extent the case provides information)?
As Joe Panella, how would you deal with the center drive lathe decision? (Is this a "big deal" or not?) If you were at Cummins' corporate office, how would you view this issue?
Does the choice of the gauging system represent a similar issue? (If not, in what respects is it different?)
Which elements of the Cummins Production Systems (CPS) are primarily responsible for the improved performance of the S.L.P. plant? Is the CPS likely to be more effective or less effective in Mexico than it would be in the U.S. or other developed countries?
What are the strategic issues raised by these two "tactical" decisions? What role should the San Luis Potosi plant play within Cummins' worldwide network? Does it make sense to move the engine rebuild operation there as well?
Thursday 01/06
Read Sections 7.1 - 7.6 of Silver, Pyke and Peterson. You may skim the material for background; we will explain the details in class and provide you with some examples.
Friday 01/07
This class will focus on a particular aspect of new product development-design for manufacturability.
Your only assignment is to bring a VHS videotape that you are willing to sacrifice to the pursuit of knowledge. You should also bring a small philips head screwdriver, if possible.
Wednesday 01/12
Hand In Inventory Exercise
Case: The Boeing 767: From Concept to Production (A)
The Boeing case illustrates how this company performs project management and new product development. Unfortunately, their structured approach has been invaded by a change in FAA regulations and they now face a decision about how to retrofit new cockpits. The case deals with a previous generation product but more recent products, such as the 777, followed a very similar project management approach.
Questions:
How would you describe Boeing's approach to project management? What are its basic elements? Its strengths and weaknesses?
What is your evaluation of the company's parametric estimating technique?
How does Boeing manage risk? (Please consider all of the following: financial risk, market risk, technological risk and production risk.)
Which method should Boeing use to convert the first thirty 767s from three-person to two-person cockpits? Why?
Thursday 01/13
Case: Applichem (A) Abridged
Applichem is a global company with a network of manufacturing facilities worldwide. The case considers the allocation of manufacturing orders among the plants using information about productivity and about exchange, inflation and duty rates. Your task is to compare the plants and make recommendations for allocating orders and evaluating plant managers.
Questions:
Compare the performance (productivity, costs...) of Applichem's Release-ease plants. Show all calculations.
Why were some plants "better" performers than others?
How would you advise Joe Spadaro to configure his worldwide manufacturing system?
Thursday 01/20
Hand in Learning Curve Exercise
Case: American Connector
The last case examined benchmarking within a global firm. American Connector examines benchmarking of one firm against another. American Connector and DJC Corporation are two companies in the electrical connector market that have chosen two different competitive and operating strategies. DJC, the Japanese company, has configured its operations to emphasize low cost. American Connector, the US company, has a strategy that emphasizes a broad product range and customization. In 1992, there were rumors that DJC was planning to build a plant in the United States. The case provides benchmarking data and raises the question of how American Connector should respond to the potential threat. You will notice that the data are quite sparse. Nevertheless, please use the available data to learn as much as possible about the DJC threat.
Questions:
How serious is the threat of DJC to American Connector Company?
How big are the cost differences between DJC's performance in Kawasaki and its potential in the United States?
What accounts for these differences? How much of the difference is inherent in the way each of the two companies competes? How much is due strictly to differences in the efficiency of the operations?
What should American Connector's management at Sunnyvale plant do?
Friday 01/21
Hand in Gary Plant Exercise
Preparation necessary for this class session will likely be a case reading that will be handed out several days prior to class.
Thursday 01/27
Hand in McLean-Fogg Analysis
Case: MacLean-Fogg
Choose an inventory and production control system for M-F. For the parts listed in the exhibits, attempt to compute the values for the inventory policy that you choose. What recommendations would you give to Dave Trendler and to the consultants?
Due Thursday January 27th Hand in MacLean-Fogg analysis. This should be a two-page description of the inventory and production control system you are recommending for M-F. Bullet point format is fine. I am interested in the essential ideas, rather than a carefully written strategic analysis.
Wednesday 02/02
This class will provide you with tools for production scheduling, particularly for small manufacturing companies.
Take Home Final Exam will be handed out in class.
Due at 9:00am on Feb 8 in Tuck 309b.
Exam
