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Cases in Operations Management

third edition

Robert Johnston

Stuart Chambers

Christine Harland

Alan Harrison

Nigel Slack

Cases in

Operations Management

The third edition of this highly successful case book has been expanded a nd updated to reflect the increasing reliance upon comprehensive case mater ial in the teaching of operations management. The text begins with an introduction to analysing operations management cases. Each of the subsequent parts deals with a key area of operations management and begins with an expanded introduction, allowing the book to serve as a stand alone text for introductory operations management courses.

Features:

¥Structure of the case book reflects that of the companion text, Operations Management, third edition, by Slack, Chambers and Johnston ¥Contains over 50 cases. Includes coverage of new areas such as: operations strategy, interactive design, simultaneous engineering, supply chain reengineering, performance measurement, and TPM

¥Includes short, one and two page, cases

¥There is a Further Reading section in each part and every case study contains a Questions section ¥The book is supported by an Instructor's Manual

The author team

Robert Johnston is Professor of Operations Management, Warwick Business School, University of Warwick.

Stuart Chambers is Lecturer in Operations Management, Warwick Business School, University of Warwick.

Christine Harland is Professor of Supply Strategy, Centre for Research in Strategic Purchasing & Supply, School of

Management, University of Bath.

Alan Harrison is Professor of Operations and Logistics and Director of R esearch, Cranfield Centre for Logistics & Transportation, Cranfield School of Management, Cranfield University.

Nigel Slack is Professor of Operations Strategy, Warwick Business School, University of Warwick.Johnston Chambers Harland Harrison Slack

Johnston

Chambers

Harland

Harrison

Slack Cases in Operations Managementan imprint of www.pearsoneduc.com third edition third edition

Cases in

Operations Management

We work with leading authors to develop the strongest educational materials in operations management, bringing cutting-edge thinking and best learning practice to a global market.

Under a range of well-known imprints, including

Financial Times Prentice Hall, we craft high quality print and electronic publications which help readers to understand and apply their content, whether studying or at work.

To find out more about the complete range of our

publishing, please visit us on the World Wide Web at: www.pearsoneduc.com

THIRD EDITION

Cases in

Operations Management

Robert Johnston

Warwick Business School, University of Warwick

Stuart Chambers

Warwick Business School, University of Warwick

Christine Harland

School of Management, University of Bath

Alan Harrison

Cranfield School of Management, Cranfield University

Nigel Slack

Warwick Business School, University of Warwick

Pearson Education Limited

Edinburgh Gate

Harlow

Essex CM20 2JE

United Kingdom

and Associated Companies throughout the world

Visit us on the World Wide Web at:

www.pearsoned.co.uk

First published 1993

Second published 1997

Third Edition 2003

© Robert Johnston, Stuart Chambers, Christine Harland, Alan Harrison and Nigel Slack 1993, 2003 The rights of Robert Johnston, Stuart Chambers, Christine Harland, Alan

Harrison and Nigel Slack

to be identified as authors of this work have been asserted by them in a ccordance with the

Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stor ed in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, phot ocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensi ng Agency Ltd,

90 Tottenham Court Road, London W1T 4LP.

ISBN-10: 0-273-65531-0

ISBN-13: 978-0-273-65531-2

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Cases in operations management / Robert Johnston ... [et al.].-- 3rd ed. p. cm.

Includes index.

ISBN 0-273-65531-0 (pbk. : alk. paper)

1. Production management--Case studies. 2. Industrial management--Case s

tudies. I.

Johnston, Robert.

TS155 .C3158 2002

658.5--dc21

2002027876

10 9 8 7 6 5 4

10 09 08 07 06

Typeset in 9.5/12.5pt Stone Serif by 30

Printed and bound in Malaysia

The publisherÕs policy is to use paper manufactured from sustainable forests.

Contentsv

Contents

Contributorsviii

Prefacex

Acknowledgementsxii

Introduction to operations management case analysis1

Part 1 OPERATIONS MANAGEMENT13

Introduction to Part 115

Case 1Birmingham International Airport, Robert Johnston25

Case 2Hogsmeadow Garden Centre, Alan Betts28

Case 3A day in the life of Frederic GodŽ, Operations Manager, BonPain,

Stuart Chambers33

Case 4Wace Burgess, Stuart Chambers and Tammy Helander40 Case 5Concept Design Services, Stuart Chambers and Nigel Slack46

Part 2 OPERATIONS STRATEGY55

Introduction to Part 257

Case 6New supply chain strategies at old M&S, Alan Harrison and

Jane Pavitt64

Case 7The Norrkšping Plant (A), Nigel Slack69

Case 8 The Norrkšping Plant (B), Nigel Slack77

Case 9Jossey Menswear Ð the supply chain project, Nigel Slack82 Case 10Indian Metals Corporation, Sara Mountney, Kenneth Work and

Stuart Chambers91

Part 3 DESIGN99

Introduction to Part 3101

Case 11Cadbury World: Ten years of improvements, Stuart Chambers,

Colin Samways, Mark Robinson, and Adam Bates110

Case 12The development of the Hovis Crusty White Loaf, Adrian Watt and

Stuart Chambers140

Case 13Campaign planning for ÔRed Nose DayÕ, Alan Harrison and Jane Pavitt154

Contentsvi

Case 15The Reltex Project, Nigel Slack172

Case 16Benetton Group: The evolution of a network to face global competition, Arnaldo Camuffo, Pietro Romano and Andrea Vinelli179

Case 17Boys and Boden (A), Stuart Chambers192

Case 18Boys and Boden (B), Stuart Chambers195

Case 19Cadbury Ltd: A routine investment decision?, Stuart Chambers203

Case 20RAC Motoring Services,Stuart Chambers211

Case 21Denby Constabulary, Andrew Greasley219

Part 4 PLANNING AND CONTROL225

Introduction to Part 4227

Case 22AEB Mortgage Services, Nigel Slack239

Case 23IÕll Phone You Back!Stuart Chambers241

Case 24Holly Farm, Stuart Chambers244

Case 25Ice House Toys, Stuart Chambers and Graham Whittington249 Case 26Fresh Salads Ltd: The Iceberg lettuce harvest, Stuart Chambers255

Case 27Mandexor Memory, Nigel Slack259

Case 28Peas, Stuart Chambers and Tammy Helander269

Case 29Thompson Telescopes Ltd, Alan Harrison281

Case 30WFA (Water for Africa), Robert Johnston290

Case 31Aylesbury Pressings, John Bicheno292

Case 32The Royal Navy: JIT based ship spares provisioning, Alan Fowler300

Part 5 SUPPLY NETWORKING309

Introduction to Part 5311

Case 33The Smart Car and smart logistics, Remko van Hoek and Alan Harrison316 Case 34Chicken Run Ð the poultry supply chain, Stephan van Dijk,

Jack van der Vorst and Adrie Beulens327

Case 35Marsden Community Stores,Keith Moreton336

Case 36Supply chain relationships: Wheatco Ltd and Chemco Ltd (A), Marie Koulikoff-Souviron, Alan Harrison and Jaques Colin353 Case 37Supply chain relationships: Wheatco Ltd and Chemco Ltd (B), Marie Koulikoff-Souviron, Alan Harrison and Jaques Colin360 Case 38Supply chain redesign at Finnforest Corp., Paul Chapman,

Vinod Thayil and Alan Harrison363

Case 39E-commerce in the NHS, Roxanne Sutton, Eric Jackson and

Christine Harland369

Case 40NHS Supplies Ð supply for the National Health Service, Christine Harland, Roxanne Sutton and Terry Hunt376

Contentsvii

Part 6 QUALITY PLANNING AND CONTROL391

Introduction to Part 6393

Case 41SmithyÕs Brewery, Robert Johnston398

Case 42Executive Holloware, Kevan Scholes405

Case 43Valley District Council Cleansing Services, John Bicheno and

Alan Harrison409

Case 44Sun Products Company, Alan Harrison414

Case 45FastFlowers.com,Robert Johnston418

Part 7 IMPROVEMENT421

Introduction to Part 7423

Case 46Newtown Customer Service Centre, Carole Driver430

Case 47Prye, Byll and Runne, Robert Johnston432

Case 48Bristol & West Building Society, Robert Johnston440 Case 49London Zoo, Adrian Watt and Stuart Chambers442

Case 50Bulmers Cider, Stuart Chambers459

Case 51TPM at Filmco UK,Alan Harrison467

Case 52Eurocamp Travel, Stuart Chambers and Jim Crew475

Case 53E-Cab, Stuart Chambers 486

Index505

Contributorsviii

Contributors

Authors

Robert JohnstonProfessor of Operations Management, Warwick Business School,

University of Warwick

Stuart ChambersPrincipal Teaching Fellow in Operations Management, Warwick

Business School, University of Warwick

Christine HarlandProfessor of Supply Strategy and Director of the Centre forResearch in Strategic Purchasing and Supply, School ofManagement, University of Bath

Alan HarrisonProfessor of Operations and Logistics and Director of Research,Cranfield Centre for Logistics and Transportation, CranfieldSchool of Management, Cranfield University

Nigel SlackProfessor of Operations Strategy, Warwick Business School,University of Warwick

Associate contributors

Adam BatesStrategic Development Executive, British Tourist Authority Hilary BatesResearch Fellow, Warwick Business School, UK

Alan BettsPartner Bedford Falls Learning, UK

Adrie Beulens Professor of Information Systems and Computer Science,Wageningen University, The Netherlands

John BichenoReader in Operations Management, University of Buckingham

Arnaldo CamuffoProfessor, Department of Business Economics and Management,Ca' Foscari University of Venice, Italy

Paul Chapman Senior Research Fellow, Cranfield Centre for Logistics andTransportation, Cranfield School of Management, CranfieldUniversity

Jaques ColinProfessor and Director of the CretLog (Centre for Research on

Transport and Logistics), Aix en Provence

Jim CrewManaging Director, Eurocamp Travel Ltd

Carole DriverSenior Lecturer in Operations Management, Plymouth UniversityBusiness School Alan FowlerReader, School of Management, University of Newcastle onTyne, UK Andrew GreasleyLecturer in Operations Management, Aston Business School, UK

Tammy HelanderIndependent Consultant

Terry HuntNational Director/Chief Executive NHS Supplies 1991Ð2000

Contributorsix

Eric Jackson Director of Operations, NHS Purchasing and Supply Agency Marie Doctoral Fellow, Cranfield Centre for Logistics and Koulikoff-SouvironTransportation, Cranfield School of Management, Cranfield

University

Keith MoretonSenior Lecturer in Operations Management, StaffordshireUniversity, UK Sara MountneyResearch Associate, Warwick Business School

Jane Pavitt Research Fellow, Cranfield Centre for Logistics and Transportation,Cranfield School of Management, Cranfield University

Mark RobinsonDirector, Wates Estates Agency Services, London Pietro RomanoLecturer in Supply Chain Management, Department of Management and Engineering, University of Padova, Italy

Colin SamwaysMarketing Manager, Cadbury World

Kevan ScholesPrincipal Partner of Scholes Associates and Visiting Professor ofStrategic Management and formerly Director of SheffieldBusiness School, UK

Roxanne SuttonPrincipal Advisor, Office of Public Services Reform, CabinetOffice Vinod ThayilLogistics Business Analyst, Finnforest Corp.

Jack van der VorstAssistant Professor of Logistics and Supply Chain Management,Department of Management Research, Wageningen University,The Netherlands

Stephan van DijkResearcher, Social Sciences Department, Wageningen University,The Netherlands

Remko van Hoek Professor of Supply Chain Management, Cranfield Centre forLogistics and Transportation, Cranfield School of Management,Cranfield University

Andrea Vinelli Professor, Department of Management and Engineering,University of Padova, Italy Adrian WattSenior Lecturer in Operations Management, University of WestEngland, UK Graham WhittingtonMarketing Specialist, Lancashire Enterprises plc Stuart WicksHead of Marine Gas Turbine Support, Rolls-Royce plc, UK

Kenneth WorkI.S. Consultant, Logica UK

Prefacex

Preface

Case studies are essential to the teaching of practical and applied subj ects such as operations management. To make life easier for teachers and students we have gathered together, in this one volume, a collection of case studies whic h we and our colleagues use in our teaching. The cases cover a wide variety of operat ions manage- ment issues in many different settings. Furthermore, these cases can be successfully incorporated into operations management teaching programmes at undergrad uate and postgraduate levels and also in executive programmes. This third edition of our case book contains an expanded and updated col lection of over 50 cases. Before developing this edition we contacted many of ou r colleagues who we knew were using the book to ascertain their views. Although we wequotesdbs_dbs12.pdfusesText_18

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