123456789101112131415161718Course Outline Introduction Course Introduction Trial by Fire, powerpoint on Ops Strat Product Dev Dreamcast/Sega Chap 8 in Clkspd on 3-DCE, ABC's of CPM Operations Burger King Types of Processes, EOQ, Newsvendor Strategy Inventory Mgmt Inven probs, Relevant costs, Whirlwind/Web, Dell/Conqueror, Laptop KingProcess Alaska Airlines Levitt Technology Webvan They've got mail. Cisco MRP note, ERP Technology Note Process Process Flow Models Queueing Note & Inventory Buildup Analysis National Cranberry Univ Health Service Process Quality Mgmt Deming, Juran, Crosby; 6sig, Berwick, Memory Jogger Quality Toyota Lean Production, Karmarkar The Goal Bank of America Hammer & Cole Articles Supply Hewlett-Packard SMR paper Chain Barilla SPA Sport Obermeyer Wrap-Up Wrap-up15.760: 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 Description Duration (weeks Precedence A Market Study 14 B External Developer Focus Group 10 C Feature Selection 4 A,B D Hardware Engineering 25 C E Operating System Devlpt. 16 D,B F Advertising Campaign 20 D,M,N G Supplier Selection & Negotiation 20 D H Component Inventory Buildup 45 G I Assembly Facility Setup 18 D J Finished Good Inventory Buildup 7 I,H K Library & Programmer Toolkit Devlpt. 12 E L External Development Support Setup 5 K M Internal Game Devlpt. 30 K N External Game Devlpt. 32 L,O O Platform Promotion 6 K P Publisher Selection & Negotiation 5 M Q Website Setup 20 M R Release Promotion Material Design 3 D,M,N S Distribution Channels Devlpt. & Negotiation 9 R T Carrier Selection & Negotiation 4 S U Launch Event Organization & PR 5 R V Hardware & Software Shipment 1 J,T,P,N W Launch! 0 V,U,Q,F15.760: 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?B 10 C 4 E 16 D 25 G 20 I 18 H 45 J 7 K 12 M 30 P 5 N 32 L 5 O 6 R 3 S 9 T 4 U 5 F 20 Q 20 V 1 W 0 A 14 Ext Dev Focus Grp Mkt Study Features HW Eng O/S Dev Advert Plan Supp Sel & Neg Comps Inv Setup Factory FG Inv Build SW Dev Kit Dev Supp Int Dev Ext DevPlatform Mktg Publisher Sel & Neg Setup Website Release Promo Distr Neg Carrier Neg Plan Launch Event Ship HW & SW GO!B 10 C 4 E 16 D 25 G 20 I 18 H 45 J 7 K 12 M 30 P 5 N 32 L 5 O 6 R 3 S 9 T 4 U 5 F 20 Q 20 V 1 W 0 A 14 0, 10 4,14 ES, EF LS, LF 0, 14 0,14 14, 18 14,18 43, 59 43, 59 18, 43 18, 43 59, 71 59, 71 43, 61 103,121 43, 63 56,76 108, 115 121,128 63, 108 76, 121 71, 77 71, 77 71, 101 79, 109 71, 76 72, 77 101, 121 109,129 101, 106 123,128 77, 109 77, 109 109, 129 109, 129 108, 111 112,115 111, 116 124,129 124, 125 128, 129 111, 120 115,124 120, 124 124,128 129, 129 129, 129B 10 C 4 E 16 D 25 G 20 I 18 H 45 J 7 K 12 M 30 P 5 N 32 L 5 O 6 R 3 S 9 T 4 U 5 F 20 Q 20 V 1 W 0 A 14 0, 10 4,14 ES, EF LS, LF 0, 14 0,14 14, 18 14,18 43, 59 43, 59 18, 43 18, 43 59, 71 59, 71 43, 61 103,121 43, 63 56,76 108, 115 121,128 63, 108 76, 121 71, 77 71, 77 71, 101 79, 109 71, 76 72, 77 101, 121 109,129 101, 106 123,128 77, 109 77, 109 109, 129 109, 129 108, 111 112,115 111, 116 124,129 124, 125 128, 129 111, 120 115,124 120, 124 124,128 129, 129 129, 129Effects on Relationships NECrecovers NEClate NECverylate Corporate Decision Supplier Performance Market Dynamics DemandH DemandL DemandH DemandL DemandH DemandL d elayedlaunch launch Exhaus tivelyseeka productionfix NECrecovers 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 organizationMobile Phone SystemCLOCKSPEED is a mix of Transmission Standards, Software and Handsets Mobile Phone System TRANSMISSION STANDARD SOFTWARE APPLICATIONS HAND SETslow clockspeed medium clockspeed fast clockspeedOPERATING SERVICES SYSTEM fast clockspeedslow 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. Process Unit Mfg.Syst Processes Functnl Tech. Cellular. & Equip. Supply Chain S.C. Logistics Architect. &Coord Orgs Set System & Alloc. Auton vs. of Tasks Integrated - Focus -Architecture - Technology A 3-D CE decision model illustrating the imperative of