Question Description
Prepare an ‘integrated’ analysis of the two business situations? How are the two similar/different? How do DONNER and EIIC compete in their respective markets? What businesses are they in? Do they produce ‘goods’ or ‘services’? Are they ‘Factory’ or ‘Service ‘Operations??? Job Shops or Production Lines or? Who is their customer? What problem do they solve for the customer? How well are they doing? What are the major trends in their Industries?
Analyze and discuss the key managerial, organizational, operations, and strategic problems and choices at each. How are they ‘organized’ to execute their operating system? What are the most important short-term operations actions to take? What should EIIC and DONNER management do over the long term to position their companies for further growth and success? (Hint: For each case; Map the process. Analyze the layout/organization of resources. Calculate cycle time & Lead time & capacity and productivity? Where are the bottlenecks? What are the causes of the bottlenecks?)
WHAT ARE THE GENERALIZABLE LESSONS TO TAKE AWAY FROM THE ANALYSIS OF THESE TWO CASES? (HINT: pull back a take a high level General Management point of view after you have mastered the operational and organizational details.) What do we learn from the similarities/differences of their ‘problems’ and appropriate solutions?
MAX LIMIT: 4 Pages + Exhibits
- 1. DONNER COMPANY – Analyze and “map” the Process: materials and information flows, bottleneck, cycle and lead times, etc. and determine the underlying ‘problems’ (as compared to observed ‘symptoms’) facing Donner and suggest specific actions to Mr. Plummer.(Hints: Pay special attention to the distributions of events, orders, and materials, etc. as shown in the exhibits.)Is Donner a job shop or a production line? (Or something else?) Is it a ‘Factory’ or a ‘Service’ operation? Why?What is the impact of batch/order size on capacity/bottlenecks? What business is Donner in?What do they have to do well for success in that business? Why?How does this affect the design of the operating system? NOTE: Stay with technology available at the time of the case.
- 2. ENGINEERING INSPECTION and INSURANCE COMPANY– What are the most critical underlying “problems” faced by EIIC at the time of the case?How serious are they?What should Ernest Cole do?Why?In what sequence? Compare and contrast EIIC with Donner Corp. Same questions apply.Is EIIC a job shop or a production line?Batch or continuous flow?Factory or Service operation?
Hint:Analyze and Map the process. Calculate the cycle time/capacity, identify the bottleneck, and calculate the lead-time.How should they measure productivity?Where is the bottleneck?Is this a continuous or a batch flow shop?Are they organized as a “production line” or a “job” shop/process?Why? What is their ‘capacity’: a. For underwriting Policies?B. For performing Inspections?
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