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Josh Williams is a Student at the NAU who has driven buses on campus and wants to improve the transportation on campus. He is convinced that purchasing a new type of bus that is more fuel efficient, has larger capacity, better designed for boarding, and has a longer life is worth the higher purchase cost. He sets out to prove it by creating a discounted cash flow (DCF) analysis. Since many of the estimates for the DCF analysis are uncertain, he decides to perform a Monte Carlo simulation (MCS) analysis. Students are asked to step into Josh’s role and perform the analysis.

Josh Williams was a Student in the authors’ MBA program. Both authors teach in this program and one author was the Advisor for Net Impact and worked with Josh to present his idea to the university administration. The authors have changed a name or two but otherwise, the case describes a real situation in a real organization without disguise.

The authors have used this case in a first semester MBA-Applied Management course, Decision Modeling and Simulation. Students already have experience with DCF analysis and have been introduced to MCS. With this case, students apply MCS at the conclusion of a three-week module on predictive analytics. Students have run at least two MCS models and have become comfortable with the software. The case would also be appropriate for a senior-level undergraduate course such as business analytics or management science. It might also be useful for other courses that include the MCS modeling technique learning objectives such as project management.

This case provides an opportunity for students to perform an MCS analysis. MCS is useful when many of the inputs to a DCF analysis (or any model) have been estimated and the modeler is concerned that the estimates are uncertain and could perhaps be a range of values. MCS can be used to understand the effect of this uncertainty on NPV which in turn may affect the decision. The case could also be used without MCS focusing just on the DCF analysis with deterministic sensitivity analysis.

Students should be able to: identify the elements of business processes; analyze efficiency measures; identify and define causes of poor efficiency in business process; analyze the results of a simulation model; propose process redesign alternatives based on the analysis; and acknowledge the challenges for improving public service processes.

The process to get a passport seems to be very simple, but Jose Hernandez, a Manufacturing Plant Director, has had bad experiences the past three times he has visited the passport office. He and his family have spent more than 3 h to get the passport for his little daughter, Maria. In this case, the authors illustrate the process analysis performed by Jose to find effective and efficient solutions to the problems that he found. The case study guides students through the analysis of a business process in public service from the perspective of the users. The students participating in the case analysis will not only learn to diagnose and describe the process but also to redesign it to achieve significant improvements. Furthermore, the students will realize that adding more resources to the process may not solve the fundamental issues, but analytical and creative skills are needed. In addition, the teaching notes provide a discussion about the existing challenges to improve public service processes.

Management and engineering undergraduate programs, operations management and business process design in Master of Business Administration programs.

Teaching Notes are available for educators only.

CSS 9: Operations and Logistics.

A regional director of a consulting firm must decide how to compete for a major consulting contract. Appshop can take a level payment contract, a lower level payment with a prospective bonus given high performance, or bid on an RFP where a significant reward is given contingent on the client's savings. The case can be used to introduce Monte Carlo simulation modeling and to build skills in structuring a decision tree in a spreadsheet. It affords an opportunity to simulate alternative risk profiles and to discuss their comparative advantages.

Operations management.

Undergraduate and MBA OM courses.

Kiwanis International is a global service organization dedicated to improving the world by helping children. The Durant, Oklahoma chapter holds its primary annual fundraiser the first Tuesday of November, which is also Election Day. The chapter sells and serves fresh pancakes throughout the day; therefore, the event is the Kiwanis Pancake Day. While serving in his first Pancake Day, Robert Howard, a new Kiwanian, notices service operations management issues such as long lines, spiky demand, and customers leaving before being served. Based on his management experience in the grocery business and his academic training in queuing systems, Robert performs an analysis of the system with the purpose of improving service operations.

Perform queuing analysis., Understand demand management., Explain the psychology of waiting.

Teaching notes and spreadsheet–based multiple–server simulator.

This paper looks at logistics and supply chain strategy.

The paper is appropriate for undergraduate and graduate management students.

By November 2009, realising the competitive pressures created by the regional and global players, Mr Khalid Ahmed, SVP, Economic Zones World (EZW), decided to strategically re-position EZW in the global supply chain map. He knew it would be very challenging in view of changing landscape of international business and he was eager to start formulating his plans.

This case can be used to teach logistics and supply chain strategy as well as the understanding of the development of country level strategy. A better understanding of the demographics and geography of UAE is required.

A teaching note is available on request.

Risk literacy matters for business students. A significant aspect of decision-making is accurately evaluating the risks involved in a decision. Research shows that many people are challenged to understand simple, health-relevant risk rates and probabilities. It also shows that many people are functionally innumerate, even educated people like doctors. While there is much academic work in health aimed at understanding how to communicate health risks to patients, an important personal area for business students, there are many industries and organizations where understanding risk is important for business students’ careers. This case provides opportunities for business students to practice these skills.

This is a secondary-data, compact case. The impetus for the case was a blog and the data gathered is primarily from Aviation Safety Net, Worldbank, Airlines.org, International Air Transport Association and Statista.com.

Coming across a blog headline, a professor is dismayed at the message: 2018 saw a sharp increase in air crash deaths. Questioning that the headline is appropriate and that the number of fatalities is an appropriate measure, the professor sets out to analyze airline safety data.

This case is intended for undergraduate or graduate students in an introductory business analytics course. The focus is on using and communicating risk rates and visualization.

This case tackles the diaper industry in a developing country and can be applied to three different undergraduate or graduate level courses, including Marketing Management, Strategic Management, and Operations and Supply Chain Management. The case describes the industry, the manufacturing process, along with detailed information about Novatis Group's business and functions and the overall improving economic environment in Morocco.

The Novatis Group case has several objectives that can be applied to three different courses within undergraduate and graduate studies including Marketing Management, Strategic Management, and Operations and Supply Chain Management.

The case focuses on Novatis Group, a diaper manufacturing company located in Morocco which competes against multinational companies (MNCs) such as Procter and Gamble and Kimberly Clark in order to satisfy the rising diaper needs of the country. Morocco is a developing country that is strengthening its manufacturing industries. The rising economic conditions have given way to a growing middle class and an increased demand for disposable baby diapers. Novatis uses two distribution channels for the diapers: the multi-tiered distribution channel and the streamlined (straight to retailer) channel. Novatis Group is producing diapers at full capacity; still demand has exceeded supply.

Students will understand the business processes in a developing country and how a small, local company can compete against large MNCs.

Teaching notes are available, please consult your Librarian to access.

One of the major reasons of layout-related difficulties faced by manufacturing industries is non-value-adding and redundant work. Plant layout study aims at economic production with larger volumes and variety as well. Method studies focus on the effectiveness with efficiency by a systematic critical scrutiny of work being done. The intention is to identify logical sequence of activities highlighting and eliminating the unnecessary mudas. Time and motion study is a combination of time study and motion study analysing and eliminating any unnecessary movement for productivity optimization of that job or process. Thus, through the elimination of unnecessary motions, times for performing the processes may be reduced and productivity increased. The intention is to subdivide the different operations of a job or process into measurable elements. Hence this case has been developed based on the primary data. The primary data was collected using Industrial Engineering Studies like layout study, method study and time and motion study. This case has been classroom tested with MBA students in their Lean Management Course.

Arin Synthetics Ltd. (ASL) though had installed modern machinery in its facility, process efficiency and optimization were a concern. Top Brass at ASL believed that ASL was overstaffed and its processes had creep as far as efficiency is concerned. This case focuses on ways to improve the process efficiency to rationalize the manpower at ASL. Presence in large growing global markets put cost pressure on ASL, thus mandating improvement in the efficiency of its processes through manpower rationalization. This case, therefore, discusses one of the highly staffed process of waste collection. Could ASL achieve reduction in the manpower in waste reduction without affecting the overall process? Was there a strategic mistake in the thought process of disposing of the waste generated by the manufacturing complex?

Operations management, Productivity and performance, Quality management, Lean management.

The learning outcomes are as follows: introduce the concept of the decision-making process, decision-making unit and hierarchy of effects and marketing strategy; identify the critical aspect of segmentation, targeting and positioning; and highlight the critical element of pricing and communication media.

In early January 2017, Mr Ashish and Mr Rahul, co-founders of Biziga, a company engaged in training through simulation for management education, was at crossroads. Keeping in view the challenges of the emerging Indian market, Biziga envisioned creating participant-centric business learning simulations. The initial responses and feedback received from several top B-schools were promising. However, the euphoria did not last long. Biziga retained only a few of its initial clients from the Tier-1 B-schools who had adopted the product. But the response received from other categories of B-schools was not very encouraging. Acquiring new clients from these institutes was the major challenge. The founders of Biziga had differences in their thought about the strategic path they should pursue to achieve future growth. There were several options to achieve the goal of a target revenue of INR 1bn in the next five years and be known as a virtual gamification company with a complete bundle of business simulation products. They had to finalize for the financial year 2017-18 the most feasible and promising option/s that would have a long-term impact on the company’s future growth and success in the upcoming meeting scheduled in the last week of February 2017.

Postgraduate students and executive students.

Teaching notes are available for educators only.

CSS 8: Marketing.

Upon completion of the case study, the students will be able to find the challenges and underlying structures that cause the problem; the students will be able to identify the dynamic variables and develop the interconnection and interlinkages among the time-delayed variables to build the story of the business case; the students could develop the block diagram and could build the system dynamics model using the simulation software STELLA, and if they do not have the simulation software, even then they could have a mental model to understand the problem well; the system dynamics students can design the policies to make the system better behaved and recommend solutions; and the students could make mind maps and develop the mental model and could recommend solutions and way forward to overcome the challenges and solve the issues.

Tradeasia is a small-scale manufacturing firm that had started its business activities near Sundar Industrial Estate, Raiwind, in September 2007. The company’s prime focus was to buy the potato starch from chips manufacturing companies and, then, extract the potato starch from the waste potato using its own machinery and sell it as a sizing agent to textile mills. Quality characteristics in terms of better millage and enhanced gullibility made it compatible with Rafhan corn-based starch. The major challenge linked to potato starch was its degree of wetness; the potato starch either extracted from rotten potato or procured from the potato chips manufacturing companies had a high degree of wetness and moisture content. Wet potato starch sometimes had more than 60% moisture content, which was really a challenge. Owing to the high degree of wetness, the wet starch was prone to fungus growth, and within hours, the fungus created toxins if it was not dried immediately, and then after 24 h, toxins acquired a black colour, and they became hardened like pebbles. The starch then was unusable even for sizing purposes for textile products. Reduction in the degree of wetness was really a big challenge and demanded prompt action and high productivity of the operational staff to make that product dry for sale purposes. This was the biggest challenge that ended up in huge inventories of wet starch. Capacity constraints and operational inefficiency killed the company’s productivity and affected the company’s profit.

This case study is written and developed for MBA and MS-level supply chain students of the system dynamics course or those studying management of supply chain complexities. This case study discusses the operational challenges while running the business; huge inventories, capacity constraints and inefficiency in production operations were the challenges associated with almost all manufacturing industries. This case study discussed not only why such challenges are appearing in the business but also the solution that resided in the wisdom shared by the employees in the board meeting. An integrated system dynamics model could be used to design the policies to overcome such challenges. Even the block diagram of the model and causal loop diagram could help to conceptualize the problem and explore the way forward.

Teaching notes are available for educators only.

CSS 7: Management science.