Lille Letter December 2009

November 11, 2009

EIM STUDENTS Bonjour! My name is Dr. Vijay Kannan and I will be teaching the International Operations and Logistics Management course, December 14-18. So that you know something about me, I am Vernon and Maree Buehler Endowed Professor, Professor of Operations Management, and Director of International Programs in the Jon M. Huntsman School of Business, Utah State University, USA. Utah State University is located in Logan, Utah, 150 kilometers north east of Salt Lake City, site of the 2002 Winter Olympic Games. I hold graduate degrees in Operations Management (Ph.D.) and Finance and Decision Sciences (MBA), and a bachelors degree in Management Sciences (B.Sc) from the University of London (London School of Economics and Political Science). I have taught in the past at the IAE and in the EIM program since its inception. I have also taught at other universities in the U.S., India, and Vietnam. I am quite familiar with Europe having lived in England for over 20 years prior to moving to the U.S. The focus of our class will be on how operations/logistics can be used a source of sustainable competitive advantage for organizations, particularly those operating in a competitive global environment. Specific objectives include: • • •

Introducing you to the principles and concepts of operations management Demonstrating their application from a managerial decision making perspective Identifying the impact of operations/logistics decisions on other business functions and vice versa

In preparation for class, I have provided you with reading materials, both articles and cases. To help you prepare, here are a few suggestions: •

Read the articles and understand the key themes and relationships with the cases. We will discuss the articles in class. You are also required to submit two written papers based on the articles Paper 1: Summarize and integrate the key themes and messages drawn from the articles Challenge of Manufacturing Advantage, Beyond World Class, Putting the Service Profit Chain to Work, Fixing Health Care, and Decoding the DNA of the Toyota Production System Paper 2: Summarize and integrate the key themes and messages drawn from the articles Triple A Supply Chain, What is the Right Supply Chain, Strategic Sourcing, Getting Offshoring Right, Strategic Supplier Segmentation, and Building Deep Supplier Relationships The focus of these papers should be on what can be learnt from the articles that you might take to your next job. Each paper may be no more than 4 pages long. Papers

should be emailed to me no later than 09:00 Lille time Monday December 14. They should be submitted either as a Word document or as a .pdf file. •

Read the cases and understand the key issues that affect decision making. We will analyze the cases in detail in class and use the analysis to understand how one makes decisions in the scenarios described. I do not expect you to come to class with solutions or detailed written analyses.

As you read the cases, I suggest making notes that will enable you to participate in class discussions. Class time will be spent discussing cases and articles. Not only will I rely heavily on you to participate meaning you will need to come to class prepared, I will rely on you to share your experience as it relates to the discussions. We will also use class time to play some interactive simulations and exercises. I will assess your performance based on written cases analyses which you will complete following the conclusion of the class sessions, your performance on exercises we complete in class, the two assignments mentioned above, and your participation in class. I will provide more details at the beginning of class. If you have any questions prior to the start of class, feel free to send me an e-mail at [email protected]. I look forward to meeting you and working with you. Au revoir et a bientot! Vijay

EXECUTIVE INTERNATIONAL MANAGEMENT PROGRAM (EIM), DECEMBER 2009 INTERNATIONAL OPERATIONS AND LOGISTICS MANAGEMENT VIJAY R. KANNAN, PH.D. OBJECTIVES: This class examines the role of operations and logistics management in supporting value creation and organizational competitiveness in an international context. It will identify and discuss key concepts and principles, demonstrate their application from a decision making perspective, and identify their impact on other business functions and vice versa. By the end of the class, you should be able to 1. Understand the nature of operations and logistics management 2. Critically evaluate the relationship between operations processes and operations/logistics strategy 3. Understand how the external, and in particular, global environment, impacts decision making related to the design of processes and execution of strategy 4. Understand the role/impact of inter-firm dynamics within the supply chain FORMAT:

Class time will be used to discuss cases and related readings, and play interactive simulations that illustrate key principles. I will rely heavily on you to participate. You will therefore need to come to class prepared and be willing to share your experience as it relates to the discussions.

ASSESSMENT:Performance will be assessed based on the following: In class participation: 20%

Assignments: 40%

Final Exam: 40%

In class participation will be assessed based on the quality as well as frequency of your contributions. Out of class cases will be assessed based on the extent to which you have understood and critically evaluated the pertinent issues and variables, and how you use these in developing appropriate solutions. SCHEDULE: DATE 14/12

15/12

16/12

TOPIC Operations Strategy Operations Strategy Process Improvement Managing Uncertainty Supply Chain Design

17/12

Supply Chain Strategy

18/12

Supply Chain Dynamics

READING Challenge of Manufacturing Advantage Beyond World Class

CASES FOR CLASS DISCUSSION El Remache Pizza Hut Moscow

Putting the Service-Profit Chain to Work

Rapid Rewards at Southwest Airlines

Decoding the DNA Fixing Health Care

Triple A Supply Chain, Right Supply Chain Strategic Sourcing, Getting Off-shoring Right Strategic Supplier Segmentation Building Deep Supplier Relationships

Paper Puppets (no reading) Virginia Mason Medical Center Lamson Corporation LL Bean Supply Chain Management at World Corp. Bose Corporation Fastraq Corporation Laura Ashley & Federal Express Xbox

Bullwhip Effect in Supply Chains

Beer Game (no reading)

Making Supply Meet Demand

Points to focus on while reading/preparing articles/cases: El Remache: Misalignment between manufacturing processes and strategy Challenge of Manufacturing Advantage, Beyond World Class: How manufacturing can be used as a source of competitive advantage, challenges companies face in doing do Pizza Hut: Operations strategy and its connection to corporate/functional business strategies, challenges entering a new market Putting the Service Profit Chain to Work: Links between people factors in system design and profitability Rapid Rewards at Southwest Airlines: Design of a production system to meet a particular market segment, whether to change a system is response to customer expectations Decoding the DNA, Fixing Health Care: How to design effective production/service systems Making Supply Meet Demand: Implications of uncertainty, how to design/manage production processes for uncertainty LL Bean: Incorporating uncertainty in demand forecasting and production planning Triple A Supply Chain, What is the Right Supply Chain: Designing supply chains for competitive markets Supply Chain Management at World Corp.: How to design and manage a supply chain for fast response, uncertainty Strategic Sourcing, Getting Offshoring Right : How/when to leverage outsourcing Bose Corporation: Managing outsourcing relationships (purchasing) Fastraq Corporation: Supplier selection. We will do this exercise in class. Laura Ashley and Federal Express: Managing outsourcing relationships (logistics) Strategic Supplier Segmentation:, Building Deep Supplier Relationships: Relationship between purchase characteristics and buyer-supplier relationship, elements of close relationships Bullwhip Effect in Supply Chains: Challenges of managing material flows in supply chains