Course Outline
1
Introduction
Course Introduction
Trial by Fire, powerpoint on Ops Strat
2
Product Dev
Dreamcast/Sega
Chap 8 in Clkspd on 3-DCE, ABC's of CPM
3
Operations
Burger King
4
Strategy
Inventory Mgmt
5
6
7
Process
Technology
Types of Processes, EOQ, Newsvendor
Inven probs, Relevant costs, Whirlwind/Web,
Dell/Conqueror, Laptop King
Levitt
8
9
Alaska Airlines
Webvan
They've got mail.
Cisco
MRP note, ERP Technology Note
Process
Process Flow Models
Queueing Note & Inventory Buildup
Analysis
National Cranberry
10
Univ Health Service
11 Process
Quality Mgmt
Deming, Juran, Crosby; 6sig, Berwick, Memory Jogger
12 Quality
13
Toyota
Lean Production, Karmarkar
The Goal
14
Bank of America
Hammer & Cole Articles
15 Supply
Hewlett-Packard
SMR paper
16 Chain
Barilla SPA
17
Sport Obermeyer
18 Wrap-Up
Wrap-up
15.760: Sega Dreamcast/CPM
1. What are the key elements of the value chain for the home video game business? 2. What are the possible failure modes for Sega and its Dreamcast product? 3. What capabilities does Sega require to succeed?
4. What’s the critical path for the CPM exercise?
5. Launch as scheduled or postpone? 6. What happened. Why?
7. Lessons learned.
15.760: CPM exercise
Task
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
Description
Duration (weeksPrecedence
Market Study
14
External Developer Focus Group
10
Feature Selection
4 A,B
Hardware Engineering
25 C
Operating System Devlpt.
16 D,B
Advertising Campaign
20 D,M,N
Supplier Selection & Negotiation
20 D
Component Inventory Buildup
45 G
Assembly Facility Setup
18 D
Finished Good Inventory Buildup
7 I,H
Library & Programmer Toolkit Devlpt.
12 E
External Development Support Setup
5 K
Internal Game Devlpt.
30 K
External Game Devlpt.
32 L,O
Platform Promotion
6 K
Publisher Selection & Negotiation
5 M
Website Setup
20 M
Release Promotion Material Design
3 D,M,N
Distribution Channels Devlpt. & Negotiation
9 R
Carrier Selection & Negotiation
4 S
Launch Event Organization & PR
5 R
Hardware & Software Shipment
1 J,T,P,N
Launch!
0 V,U,Q,F
15.760: CPM exercise
1. What is the critical path and total duration for this
project?
2. Suppose that a marketing study finds that the Advertising
Campaign can be shortened to 15 weeks without
significant impact reduction. What is the new CP and
total project duration?
3. Suppose we would like to reduce the time until launch to
28 months, what would you recommend?
4. Bonus: Suppose that the duration of the development
tasks E, M and N are now random variables following
exponential distributions with means 16, 30 and 32
respectively.
What is the probability that the total project duration
will be more than 135 weeks?
Setup Factory
I
FG Inv Build
18
G
14
Features
C
4
B
10
Ext Dev
Focus Grp
V
7
1
45
D
25
20
Plan Launch
Event
HW Eng
E
16
O/S Dev
GO!
Setup
Comps Website
H Inv
Q
20
A
0
Ship HW
& SW
J
Supp Sel & Neg
Mkt Study
W
U
Int Dev
SW Dev Kit M
K
5
30
Publisher
Sel & Neg
12
Dev Supp
O
6
Platform
Mktg
Distr Neg
R
L
5
5
P
3
N
32
Ext Dev
S
9
T
4
Release Carrier Neg
Promo
F
20
Advert Plan
129, 129
W
43, 61
I
18
103,121
J
G
A
14
0,14
14, 18
C
4
0, 10
14,18
B
10
4,14
18, 43
20
56,76
25
18, 43
1
128, 129
H
101, 121
45
76, 121
20
Q
109,129
111, 116
43, 59
16
43, 59
71, 101
59, 71
M
K
30
12
59, 71
79, 109
L
LS, LF
71, 77
O
6
71, 77
5
72, 77
U
101, 106
5
124,129
P
5
123,128
71, 76
ES, EF
129, 129
V
63, 108
D
E
124, 125
7
121,128
43, 63
0, 14
0
108, 115
77, 109
N
32
77, 109
111, 120
108, 111
S
120, 124
R
T
9
115,124 4
3
112,115
124,128
109, 129
F
20
109, 129
129, 129
W
43, 61
I
18
103,121
J
G
A
14
0,14
14, 18
C
4
0, 10
14,18
B
10
4,14
18, 43
20
56,76
25
18, 43
1
128, 129
H
101, 121
45
76, 121
20
Q
109,129
111, 116
43, 59
16
43, 59
71, 101
59, 71
M
K
30
12
59, 71
79, 109
L
LS, LF
71, 77
O
6
71, 77
5
72, 77
U
101, 106
5
124,129
P
5
123,128
71, 76
ES, EF
129, 129
V
63, 108
D
E
124, 125
7
121,128
43, 63
0, 14
0
108, 115
77, 109
N
32
77, 109
111, 120
108, 111
S
120, 124
R
T
9
115,124 4
3
112,115
124,128
109, 129
F
20
109, 129
Corporate
Decision
Supplier
Market
Performance Dynamics
lau
Ex
ha
nc
pr ust
h
od iv
e
uc l y
t io s e
n ek
fix a
NEC
NE
d
ye
la ch
de un
la
r
Cv
Deman
rs
e
v
eco
ery
Deman
dL
nd H
Dema
Cl
ate
NEC
NE
r
rs
e
v
eco
nd H
a
m
e
D
lat
e
dL
nd H
Dema
Deman
dL
Effects on
Relationships
Retailers increase dedicated space
Software development accelerate
Win-Win-Win !!!
Product is a dud
Reinvigorate or Exit.
Sales puts on the best face possible
Pressure/help NEC
Retailers unhappy with empty shelves
Disgruntled Customers
Software developers anxious
Need to stimulate demand & NEC
Product may be a dud
Software developers may quit
Production ramp-up crucial
Must maintain good communications
Slow start is overcome: win-win-win
Recrimination mode
Was product a dud or was lateness to
market the killer?
Deep trouble
Try to mend relationships and make new plan
or just exit.
INDUSTRY CLOCKSPEED IS A COMPOSITE:
OF PRODUCT, PROCESS, AND ORGANIZATIONAL CLOCKSPEEDS
Mobile Phone INDUSTRY CLOCKSPEED
THE
Mobile Phone
product technology
THE
Mobile Phone
PRODUCTION
PROCESS process technology
THE
Mobile Phone
MANUFACTURING COMPANY
organization
Mobile Phone System CLOCKSPEED is a mix of Transmission Standards, Software and Handsets
Mobile Phone System
TRANSMISSION
STANDARD
slow clockspeed
SOFTWARE
APPLICATIONS
HAND SET
medium clockspeed
OPERATING
SYSTEM
slow clockspeed
SERVICES
fast clockspeed
fast clockspeed
ISSUE: THE FIRMS THAT ARE FORCED
TO RUN AT THE FASTEST CLOCKSPEED
ARE THE MOST LIKELY TO STAY AHEAD
OF THE GAME.
Product
Design
Architect.
Detailed Modular
Perform.
vs.
Specs
Integral
& Funct.
- Focus
- Architecture
- Technology
Process
Unit
Processes
Tech.
& Equip.
Supply Chain
Logistics
Mfg.Syst
S.C.
Architect. & Coord
Functnl
System
Cellular. Orgs Set
& Alloc.
Auton vs.
of Tasks
Integrated
A 3-D CE decision model
illustrating the imperative
of concurrency