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1. Altoona Corp.

: Computer Products Division


by Robert H. Hayes, Roger E. Bohn Source: Harvard Business School 17 pages. Publication date: Jul 31, 1987. Prod. #: 688010-PDF-ENG A relatively small manufacturer of computer memory disks has achieved a major market position through the use of its statistical quality control (SQC) program. It is now expanding the production of a new line of disks and is encountering problems getting the process yield to improve as rapidly as it has with previous products. Invites the student to grapple with such issues as: 1) What can the plant manager do to eliminate the apparent "stickiness" in the yield? 2) What changes should be made in the way the SQC program is managed? and 3) Is an SQC program ultimately viable in an industry which is changing (products and processes) so rapidly?

2. American Electric Power: Investing in Forest Conservation


by Erica Plambeck, Gretchen Daily, Sara Gaviser Leslie Source: Stanford Graduate School of Business 18 pages. Publication date: Mar 09, 2010. Prod. #: OIT96-PDF-ENG This case focuses on an opportunity that American Electric Power (AEP) has to invest, with The Nature Conservancy (TNC), in one of the world's first projects for Reducing Emissions from Deforestation and Forest Degradation (REDD). The proposed plan was to protect 812,000 hectares of rich, biologically diverse forest land, known as Bosque Rojo, in central Peru. This project would address the two issues targeted by REDD by ending both deforestation from the local communities' conversion of land from forest to farmland and forest degradation from commercial logging. REDD projects offered a substantial opportunity to mitigate climate change, as deforestation and forest degradation contributed approximately 15-20 percent of global greenhouse gas (GHG) emissions. Protecting Bosque Rojo could prevent the release of millions of tons of carbon dioxide (CO2). The project partners and investors would obtain certified offset credits equivalent to the reduction in emissions over the 30-year project lifetime. Among U.S. power companies, AEP had one of the highest levels of CO2 emissions. It estimated its 2009 emissions would reach 150M metric tonnes. With climate change legislation on the horizon, it wanted to set an example for Congress to show that REDD offsets could lead to cost-effective reduction in GHG emissions, and also gain experience in the international REDD scene. AEP expected to have to substantially reduce its own emissions (e.g. by substituting wind power for coal in electricity generation) or obtain offset credits either on the open market or through direct participation in external emission reduction projects. AEP believed that REDD projects would be much cheaper than any of its other options to obtain offset credits. To confirm this belief, the company needed to calculate a net present value (NPV) for the project, understand the project's risks, and determine if Bosque Rojo was, indeed, the best use of company funds.

3. Cool Moose Creamery

by Elizabeth M.A. Grasby, Ian Dunn Source: Richard Ivey School of Business Foundation 7 pages. Publication date: Nov 22, 2010. Prod. #: 910B13-PDF-ENG The owner/operator of an ice cream store has an opportunity to expand his product line to include soft-serve ice cream. He needs to analyze the costs and benefits of purchasing either a new or used single-head or triple-head soft-serve ice cream machine. He also wants to continue growing the business and he wonders about the best way of going about it. Students are asked to (1) perform a business size-up; (2) analyze the addition of soft-serve ice cream from a qualitative standpoint; (3) determine which of the cash flows associated with the opportunity are relevant and which are recurring costs versus one-time costs; (4) perform a differential analysis to determine the ROI and payback period for the purchase of both new machines; (5) determine the ROI and payback period changes if a used machine is purchased; and (6) decide whether to purchase a soft-serve ice cream machine and, if so, which one.

4. Decision-making at A-Cat Corp.


by Jitendra R. Sharma Source: Richard Ivey School of Business Foundation 5 pages. Publication date: Sep 19, 2011. Prod. #: W11179-PDF-ENG The case describes the situation faced by the vice-president of A-CAT Corp. The company was a mid-sized manufacturer and distributor of domestic electrical appliances, largely catering to the price sensitive rural population. The firm operated two medium-sized facilities in one of the remote districts in Vidarbha. A-CAT's manufacturing units had been in operation since 1986. A-CAT manufactured a wide range of electrical appliances including TV signal boosters, transformers, FM radio kits, electronic ballasts, battery chargers and voltage regulators. The focus was on their flagship product, the VR500 voltage regulator. The challenge was to select suppliers without offending the stakeholders involved in the process. The core issue was to come to a correct decision -- one that best suited company needs. The plan set by the team was to identify potential suppliers/vendors with their attendant strengths and weaknesses and to do so in a well-documented and structured manner.

5. Elizabeth's Country Wares


by John S. Haywood-Farmer, Andrew Hines Source: Richard Ivey School of Business Foundation 9 pages. Publication date: Oct 21, 2009. Prod. #: 909D09-PDF-ENG The owner and operator of Elizabeth's Country Wares (ECW), a decorative country housewares and ceramic pottery business based in Woodstock, Ontario, was trying to find a way to increase capacity. Because ECW was her primary occupation and source of income, the owner was eager to take advantage of the growing interest in one of her product lines from some of her primary customers member stores of a national pharmacy chain. She was unsure whether she should purchase new equipment or outsource part or all of the production of these pieces. The owner was uncertain whether ECW could meet the forecasted demand of 3, 000 units for the coming year, and she did not want to miss out on selling more of the line. However, she also believed there was more earnings potential if she could focus her attention elsewhere in the business.

6. Estonia Air's Big Buy


by Karen Popovich, D Lander, Robert Letovsky Source: North American Case Research Association (NACRA) 16 pages. Publication date: Dec 01, 2011. Prod. #: NA0135-PDF-ENG Rait Kalda, vice president of operations for AS Estonian Air, faced a challenge: how should Estonian Air address projected increases in intra-European flight demand in light of high fuel costs, competitive challenges, economic uncertainty, and last year's net loss? If Kalda's assessment led to expanding Estonian Air's fleet, he had to decide which plane model would achieve operational efficiencies, satisfy load factor requirements, and meet various other performance and financial metrics. In order to fully comprehend Kalda's challenge, the case first presents the reader with a brief synopsis of Estonia's economy; the airline industry; and the three types of competitive airline industry groupslegacy carriers, low cost carriers, and regional carriers. This is followed by an overview of Estonian Air's competitors and its opportunities for growth. The case provides detailed information regarding the advantages and disadvantages of the Boeing 737 Jet, the Bombardier Q400 Turboprop, and a used Saab 340A turboprop. Finally, the case summarizes Estonian Air's internal analysis and growth strategy, with pertinent input from conversations between Rait Kalda and the vice president of finance and administration, Andrus Aljas. Students are required to complete an operational analysis on factors such as capacity, fuel savings, and utilization rates. If Estonian Air does indeed decide to expand, the case states that the airline will continue with its past practice of leasing the aircraft. Using current financial statements, as well as information presented in the case, students can also prepare a basic net present value (NPV) model and scenario analysis for leasing each of the aircraft alternatives. Finally, students have the opportunity to combine both qualitative and quantitative factors to support their analysis.

7. Process Control at Polaroid (A)


by Steven C. Wheelwright, H. Kent Bowen, Brian Elliott Source: Harvard Business School 17 pages. Publication date: Nov 05, 1992. Prod. #: 693047-PDF-ENG Describes the initial efforts at a film production plant to shift from a traditional QC inspection mentality to a worker-based process control mentality. Students can prepare SPC charts, propose actions needed, and combine steps into an overall action plan.

8. Sullivan's Flooring Concept


by John S. Haywood-Farmer, Julie Harvey Source: Richard Ivey School of Business Foundation 5 pages. Publication date: Jul 21, 2008. Prod. #: 907D10-PDF-ENG A carpenter is considering options for improving the manufacturing process of his custom woodflooring concept. He started the business as a part-time venture and wanted to increase production efficiency to accommodate the growing interest for his pine flooring design. The carpenter was unsure whether he should invest in new equipment or hire part-time labor, but he knew that either way, he would have to change the current process to ensure that capacity would meet the upcoming year's forecasted demand.

This is part of the subset of Ivey cases and technical notes written for Introductory-Level courses.

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