OIDD‐680

OperationsStrategyPracticum

Spring2017

(RevisedNovember06,2016)Locations:ScheduledsessionsatWhartonwillmeetinJMHH‐TBDonscheduleddatesandtimes.SpringBreakinGermanyandvariouscompanyvisitsreachablefromthePhiladelphiaCampusduringthesemester.Dates:SpringSemester2017

‐ Lectures,CaseDiscussions‐ VisitstoGerman,DutchandUSmanufacturingplants,logisticscentersandservice

providerfacilities‐ Presentationsbyseniormanagers

Credit:1.0CreditUnitCourseInstructorMorrisA.CohenPanasonicProfessorofManufacturingandLogisticsOPIMDepartment546JonM.HuntsmanHallTel:215‐898‐6431(office)cohen@wharton.upenn.eduParticipatingFacultyArndHuchzermeierProfessor,OttoBeisheimSchoolofManagement,WHUUniversityCourseTATBDCourseOverviewandLearningGoalsThiscoursewillfocusonthemanagementofoperationsatmanufacturingandservicefacilitieslocatedwithintheUS,Germany,andtheNetherlandsthatareusedeitherbydomesticcorporationsorbyforeignmultinationalcompanies.Ouremphasiswillbeontheevolvingpatternsofoperationsstrategiesadoptedbyfirmsforproducingproducts,sourcingmanufacturing,distributingproducts,deliveringservicesandmanagingproductdesignaswellasonprogramsforenhancingquality,productivityandflexibilityandmanagingtechnology.Wewillfocusontheformulationandexecutionofsuchstrategiesforacollectionoffirmsinthecontextofthecurrentdynamicsofglobalcompetition.Thecoursewillconsistofasetofsitevisitsandin‐classsessionswhichinclude

lectures,casediscussionsandmanagementspeakerswhowilldescribetheircompany’scurrentstrategy.Ourcourseismotivatedbythefactthatmanymanufacturingandserviceproducingfirmsarere‐examiningthestructureoftheirglobalsupplychains,internalprocessesandsourcingstrategyinresponsetotheuncertaintiesandriskstheyfaceintheseturbulenttimes.Theseadjustmentsareoccurringagainstabackdropoffundamentalchangetotheenvironmentinwhichcompaniesoperate.Fordecadesadominantstrategyinmanufacturinghasbeentooutsourcetolowcostglobalsuppliers.ThishasledtothetransferofmillionsofmanufacturingjobsanddevelopmentactivitiesoutoftheUS,JapanandEuropeandintolowlaborcostcountriessuchasChina,IndiaandVietnam.Todaythistrendisbeingchallengedbyamovementbysomecompaniesto“re‐shore”theirmanufacturingbybringingitbackoratleastmovingitclosertotheirdevelopedcountrymarket,i.e.by“near‐shoring”tolocationssuchasMexicoorEasternEurope.Atthesametimemanyfirmscontinuetoselectoffshorelocationsforoutsourcingofmaterialinputsandservices.Similarargumentsforglobalsourcingandre‐shoringcanalsobemadeforfirmsthatactassuppliersofservicessuchasBusinessProcessOutsourcing,CustomerServiceSupport,ProductDesignandSoftwareDevelopment.Moreovertherehavebeenmajortechnologydevelopmentsaffectingproductionautomation,logisticsandsmart,connectedproductdesignswhicharecontributingtothisre‐structuring.Againstthisbackdropofchange,wearecurrentlyinanerawheregovernmentpoliciesconcerningglobalizationanditsimpactondomesticemploymenthavebeenquestionedandchallenged.Thiscoursewillconsiderthecurrentstatusofoperationsstrategyandprocessmanagementprimarilyfromtheperspectiveofmajormulti‐nationalfirms,althoughwewillalsointeractwithstartupcompanies.Thegoalistoprovidetheclasswiththeopportunitytointeractwithseniorexecutivesfromthesecompanies,whichareheadquarteredand/oroperatingintheUS,Germany,andtheNetherlands,toexplorecurrentthinkingandstate‐of‐the‐artpracticesconcerningtheirglobaloperations.Experientiallearningwillbefacilitatedbyprovidingstudentswiththeopportunitytoobservecompanyoperationsinactionundertheguidanceofcompanymanagement.Theseinteractionswillfacilitateanexchangeofideasthatwillidentifymanagerialchallengesandconcerns.Itwillalsohighlightcurrentpracticesandintentionsofparticipatingcompanies.Moreover,thecoursewillconsidervariousmodelsandframeworksthathavebeendevelopedintheeconomics,publicpolicy,operationsandmanagementliteraturesfordealingwithstrategiesforglobalsupplychainsourcing,technologymanagementandprocessimprovement.Wewillalsoconsiderhowtechnologydevelopmentsareimpactingcurrentoperationsstrategy(e.g.automation,E‐commerce,InternetofThings).Ourobjectiveistodevelopanunderstandingofthedriversofoperationsstrategydecisions,atpresentandinthefuture,inordertoidentifyopportunitiesforimprovementandbarrierstoimplementation.

WewillexploretheseissuesthroughthelensofvisitstoaspecificgroupofmultinationalandemergingcompanieslocatedinGermany,theNetherlandsandinthemid‐AtlanticregionoftheUS.Thecompanieswillbechosentocoverarangeofmanufacturingandserviceindustrieswhereglobalsourcing,productivityandcoordinationarekeyissuese.g.aerospaceanddefense,automotive,consumerelectronicsandcomputers,consumerproducts,entertainment,healthcareproducts,medicalequipment,pharmaceuticals,logistics,andsemiconductor.ThiscoursewillbuildoffofthelearningbasedonaGlobalModularCourseonthistopicthathasbeenofferedinJapanandfromversionsofthecoursethathasbeenofferedtostudentsparticipatingintheWhartonSiSF(SemesterinSanFrancisco)programandtostudentsintheregularfulltimeprograminPhiladelphia.

CourseOrganizationandRequirementsThecoursewillincludeanintenseweekofcompanyvisitsinGermanyandtheNetherlandsduringthespringbreak(March5–March11,2017),severalUScompanyvisitsonFridays,andseveralclasssessionsatWharton.TheclasssessionstobeheldatWhartonwillincludelectures,casediscussionsandguestspeakers.Studentswillberesponsiblefortravelexpenses(flighttoGermanyandforthelandarrangementsinGermany,,theNetherlandsandtheUS).Weestimatethattheseexpenseswillbeabout$2,400forthecourse(forthefullsemester,sharedoccupancy,excludingthecostoftheflighttoGermany).Itwillbenecessarytoregisterforthecourse(asa1CUcourse),andpayadepositfeefortheexpensesinordertoreserveyourplaceinthecourse.Enrollmentwillbelimitedduetocapacityrestrictionsimposedbythecompaniesthatwewillbevisiting.

Pre‐requisites

StudentstakingthiscourseshouldhavecompletedatleastoneoftheOIDDcorecourses,i.e.OIDD611,“ManagingtheProductiveCoreoftheFirm:QualityandProductivity”orOIDD615,“ManagingtheProductiveCoreoftheFirm:OperationsStrategy”,oranequivalentcourse,orhavehadworkexperiencethatfocusesonoperationsandsupplychainmanagement.

GradingandassignmentsGradesarebasedon(1)classparticipationwhichincludesclassdiscussions,contributiontothegroupreportsandattendancetothecompanyvisits(20%);(2)analysisof2assignedcases,eachwithanindivual,writtenreport(20%);(3)analysisofarecentexampleofsupplychainrestructuringinaglobalcompany,selectedfromanindustrythatisrelevanttoourexplorationsofissuesintheUSand/orEurope(20%).Thiswillbeagroupreport;(4)Abackgroundreportconcerningoneofthecompanies/industriesthatwewillvisitandasitevisitreportforthatcompany(teamassignment)(20%)and(5)afinal,individualpaperofferingreflectionsonwhatyouobservedandlearnedduringthesitevisits(20%).Ifyoumissanyofthecompanyvisitsyourparticipationgradewillbereduced.PriorversionsofthiscoursehaveincludedvisitstoandspeakersfromavarietyofcompaniesintheUSJapanandEurope.

ThescheduleforthecourseincludesaseriesofcompanyvisitsinGermanyandtheNetherlandsduringtheweekofSpringbreak(March5toMarch11).ThetourwillbegintheGermansegmentinFrankfurtandwewillvisitaboutadozencompaniesasweworkourwaytoEindhovenandthentoHamburgduringtheweekofMarch5.Therewillalsobeseveralsitevisitstovariouscompanysites(onFridays),thatareaccessiblefromthePhiladelphiacampusthathavebeenscheduledthroughouttheSpringsemester,(seebelow).Thescheduleissubjecttochangebuthasbeenfullyconfirmed.Thecompaniestobevisitedduringthespringbreaktourlistedintheschedulebelow.Thecompaniestobevisitedlocallyare:

JanssenPharmaceuticals,Inc.andJohnson&Johnson AmerisourceBergen

Schedule:Whartonstudytour,GermanyandtheNetherlandsMarch6to11,2017

Monday:March6,201709.00a.m.:WirtgenGmbH‐Windhagen2.00p.m.:ZalandoLogistics‐Moenchengladbach

Tuesday:March7,201709.00a.m.:ASMLHQ‐Eindhoven2.00p.m.:SmartRobotics‐Eindhoven

Wednesday:March8,201709.00a.m.:SchmitzCargobull‐Vreden2.00p.m.:MeyerShipyard‐Papenburg

Thursday:March9,201709.00a.m.:Daimler‐Bremen(CarAssembly)2.00p.m.:AirbusHQ‐Hamburg(AirPlaneAssembly)

Friday:March10,201709.00a.m.:LufthansaTechnologyHQ‐Hamburg2.00p.m.:Kühne&Nagel‐HamburgSaturdayMarch11,2017(optional)HarborTour

CaseAssignments(Individualassignments‐20%ofyouroverallgrade)

FirstCaseAssignment‐CiscoOnMarch11,2011amajorearthquakestruckTohokuJapan.Ithadadevastatingimpactonglobalsupplychains.Readthecase,CiscoSCRMinAction:2011TohokuEarthquake,byRaviAnupindi(TauberInstitute,U.ofMichigancase1‐429‐284,2013) andalsoreadSupplyChainRiskManagementatCisco:ResponsetoH1N1(U.ofMichigancase1‐428‐881),–readpages2throughtopofpage9foradescriptionofCisco’sapproachtoriskmanagement.Preparea750wordpaper(plusorminus5%;double‐spaced;putwordcountandyournameatthetop)thataddressesthefollowingquestions:

1. WhatarethemajorchallengesfacingCiscoasresultofsupplychaindisruptionscausedbytheearthquake?

2. HowshouldCiscomanagethecrisis?3. WhatmetricsshouldbeusedbyCiscotosupportSupplyChainRiskManagement?Whatdata

wouldyouneedtoestimatethesemetrics?Atwhatorganizationallevel(plant,product,supplychain,businessunit)woulditbeappropriatetoapplythesemetrics?Whatmaybetypicalusesofthesemetrics?

4. HowshouldCiscomitigatetheimpactofthedisruptiontotheirsupplychain?Whattradeoffsandrisksshouldtheyconsiderandhowaretheserelatedtothemetrics?Inparticular,howcantheTTRmetricbeusedtodevelopamitigationstratgy?

5. CommentonCisco’sSCRMprocessandhowtheydealtwiththeTohokucrisis.Whatareitsmajorstrengths?Doyouseeanyweaknesses?

Youshouldalsoreadthefollowingarticles(postedonCanvas)asyouprepareyouranswerstothecase:

1. D.Reynolds,“LessonsFromTohoku”,WhartonMagazine,January26th,2012,2. D.SimchiLevi,“FromSuperStormstoFactoryFires:ManagingUnpredictableSupply‐Chain

Disruptions”,HarvardBusinessReview,Jan‐Feb2014.3. A.PollackandS.Lohr,"AJapanesePlantStrugglestoProduceaCriticalAutoPart",NewYork

Times,April278,2011.

Readthecaseandthinkabouttheassignmentquestions.WewilldiscussthiscaseinclassonTBD.JamesSteele,whowasdirectorofCisco’sSCRMprogramatthetimeofthequake,hasprovideduswithareportonhowCisco’sSCRMsystemactuallyoperatedduringthecrisis.Wewillreviewhiscommentsinourdiscussionofthecase.YourpaperisdueonTBD,postedonCanvas.

SecondCaseAssignment‐BoeingBoeingencounteredanunusualsupplychainproblemduringits787Dreamlinerproductdevelopmentandmanufacturingprocess,relatedtoasmallandunlikelysourceofdifficulty,namelyshortagesanddelaysinthesupplyoffastenersneededtoholdtheairframetogether.Readthecase,Boeing:TheFightforFasteners,byMosesLeeandRaviAnupindi(TauberInstitute,U.ofMichigancase1‐428‐787,2009)andpreparea750wordpaper(plusorminus5%;double‐spaced;putwordcountandyournameatthetop)thataddressesthefollowingquestions:

1. WhatwerethecausesofthefastenercrisisatBoeing?Howwastheproblemignoredforsolong?Whateffectdidthe787Dreamlinerprojecthaveonfastenersupply?

2. WhatarethekeyelementsoftheFastenerProcurementModel(FPM)?

3. Describethematerial,information,andfinancialflowsbetweenBoeing,fastenermanufacturers(suppliers)andTier‐1partnersunderFPM.

4. EvaluateFPMfromtheperspectiveofBoeing,fastenermanufacturers,Tier‐1partners,andotherstakeholders.

5. CritiquetheapproachtakenbyBoeinginimplementingFPM.WhatproblemshasBoeingencounteredinrollingouttheFPM?

6. Whataresomeofthecosts,benefitsandrisksassociatedwitha“customermanagedinventory”strategysuchasFPM.

YoushouldalsoreadthearticlebyChrisTang,andJoshZimmerman,MitigatingNewProductDevelopmentRisks–TheCaseoftheBoeing787Dreamliner,Chapter11inM.S.SodhiandC.S.Tang.ManagingSupplyChainRisk.Springer.2012,asyouprepareyouranswerstothecase.Readthecaseandthinkaboutthefirst4assignmentquestions.WewilldiscussthiscaseinclassonTBD.Yourpaper,whichincludesanswerstoall6questions,isdueonTBD,postedonCanvas.IndustryBackgroundandSiteVisitReport(Teamassignment‐20%ofyouroverallgrade)Eachteamwillbeassignedtoacompanythatwewillbevisitingduringthesemester.Priortothevisit,theteamwillprepareandpresentordistributeareportthatprovidesbackgroundinformationconcerningtheindustryandthecompanythatwewillbevisiting.Topicsthatcouldbeincludedinthisreportinclude:currentcompetitivetrends,technologydevelopmentsaffectingboththeproductandprocesses,theregulatoryenvironment,etc.Theteamwillthenusetheplanttourassessmenttool(i.e.“ReadaPlantFast”byGoodson)toprepareareportbasedonthevisit.Thereportswillbesharedwiththefullclassafterthevisits.GroupformationsaredueonTBD.Thesamegroupswillbeusedfortheanalyticpaper.Eachgroupwillpresenttheirindustry/companybackgroundreporttotheclassonTBD.Groupswillbeassignedforthecompanyvisitsfromthefollowinglist:

Airbus ASML KuhneNagel LufthansaTechnik MercedesBenz MeyerWerft SchmitzCargobull SmartRobotics Wirtgen Zalando

Analyticpaper(Teamassignment‐20%ofyouroverallgrade)Prepareananalyticalpaperthatidentifiesacompanythathasrecentlyadjustedormodifieditsoperationsstrategyconcerningissuessuchassupplychaindesignandmanagement,globalsourcing,useoftechnology,productdesign,etc.andaddressesthequestionslistedbelow.Youwillproposeyourchoiceoffocalfirmtothefacultyforapproval;wewilltrytoavoidduplicationsincethesepaperswillbearesourcefortheentireclassoncecompleted.Papersshouldbewrittenbyagroupconsistingof3or4students,therequiredlengthis2,250words(plusorminus5%;double‐spaced;putwordcountandyournameatthetop).

Youranalysisshouldaddressthefollowingquestions:

1. Whatisthecurrentdesignandmanagementofthecompany’ssupplychainandhowhasthisdesignandmanagementbeenaffectedbytherecentstrategychange?

2. Whatarethereasonsthatthecompanyhasofferedformakingthechangestoitsoperationsstrategy?

3. Whatisyourassessmentofthereasonsthatthesechangeshavebeenmade?4. Whatistheexpected(orobserved)impactofthestrategychangeoncompetitiveposition,

financialperformanceandoperationperformance?5. Compareandcontrasttowhatothercompaniesinthesameindustryaredoing,i.e.haveother

companiesintheindustrymadeoperationsstrategychanges?Arethedecisionsoftheothercompaniesthesameordifferent?Why?Aretheretrendsfortheindustry?

6. Whatarethekeychallengesfacingtheindustrywithrespecttosupplychainsourcing,technologyandcompetition?

Werecommendthatyouconsideracompanyfromoneoftheindustries,whichwewillbeinteractingwiththroughcompanyvisitsandguestspeakersessions,(butnotoneofthecompanieswevisitorfromwhomwehostaspeaker).Pleaseindicateyourfirstandsecondchoicesforacompany/industryinadvance,(dueTBD),sothatwecaninsurethatawiderangeofissuesandsettingsiscovered.Totheextentpossible,theindustrybackgroundandsitevisitreportgroupassignmentswillbemadetocomplementtheanalyticpapercompanytopicselected.Groupassignmentsfortheanalyticpaperandindustry/visitreportwillbefinalizedonTBD.

RecommendedIndustries:AerospaceandDefense;Apparel;Appliances;Automobiles;Computers/InformationandCommunicationTechnologies(ICT);ConsumerElectronics;Entertainment;Gaming;LogisticsandDistribution;HealthCare;Retail;Robotics;SemiconductorManufacturingandSemiconductorEquipment;Toys.

ThispaperisdueonTBD,postedonCanvas,andwillbediscussedonTBD.Eachteamwillberequiredtopresentabrief(10minute)presentationdescribingthefindingsoftheiranalyticpaper.Finalreflectionpaper(Individualassignment‐20%ofyouroverallgrade)Thisindividualassignmentisanopportunitytoreflectonwhatyouhavelearnedinthecourseandthroughthesitevisits.Itisworth30%ofyourgradeandisdueonTBD,postedonCanvas.Youshouldgiveyourthoughtson1)thecurrentstatus,2)futuretrendsand3)keydriversofoperationsstrategyandsourcingdecisionsintheindustrieswevisited.Ourguidelineforlengthis750words,roughlythreepages,althoughthisisarecommended,butnotrequired,length;yourpapercanbeeithershorterorlonger,aslongasitcapturesyourthoughtfulreflectionsonyourexperienceinthecourse.

CompanyProfiles(GermanyandtheNetherlands)

WIRTGENGmbH

WIRTGENsuppliesacompleterangeofmobilemachinesandhigh‐qualityservicesforallareasofroadconstructionandopen‐castmining.

Withitsinnovative,high‐performanceandcost‐efficientproductsandtechnologiesforcoldmilling,soilstabilization,hotandcoldrecycling,concretepavingandsurfacemining,WIRTGENleadstheworldmarketinroadconstructionandrepair,aswellasinminingnaturalrockandpayminerals.WIRTGENdevelopsboththemachinesandthetechnologies.

Today,market‐leadingandcutting‐edgeproductsfortheRoadandMineralTechnologiesbusinesssectorsareconstructedattheWIRTGENbrandheadquartersinWindhagen,Rhineland‐Palatinate.Over60differenttypesofmachinesfromthecompany'sextensiveproductdivisionsareproducedatthebrandheadquartersusingstate‐of‐the‐arttechniques.

ZalandoLogisticsMönchengladbachSE&Co.KG

ZalandoSEisamultinationale‐commercecompanythatspecializesinsellingshoes,clothingandotherfashionandlifestyleproductsonline.ThecompanywasfoundedinGermanyin2008byRobertGentzandDavidSchneider,initiallyunderthenameIfanshoandsincethenhasexpandedtoofferitsretailservicesinatotaloffourteenEuropeancountries.Currently,ZalandoisoperationallyactiveinGermany,Austria,Switzerland,France,Belgium,theNetherlands,Italy,Spain,Poland,Sweden,Denmark,Finland,NorwayandtheUK.Zalandoinitiallyspecializedinthesaleoffootwearbuthassincegrowntoencompassotherareasoffashion,lifestyleandsports.

ASML

In1984,PhilipsandAdvancedSemiconductorMaterialsInternational (ASMI)createdanewcompanytodeveloplithographysystems,calledASML.Today,ASLMistheworldbiggestsupplieroflithographysystemsforSemiconductorindustry.

Theproductsfocusonmakingtransistorsonachipsmaller,akeystepinmakingthembothfasterandcheaper.ThemachinesthatASMLmakesareessentiallyprojectionsystems,notunlikeaslideprojector.Laserlightisprojectedthroughaso‐calledmask(alsocalledareticle),whichcontainstheblueprintofthepatternthatwillbeprinted.Alensfocusesthepatternontothewafer,whichhasearlierbeencoatedwithalight‐sensitivechemical.Whentheunexposedpartsareetchedaway,thepatternisrevealed.

Becauselithographypatternsthestructuresonachip,itislithographythatdetermineshowsmallthefeaturesonthechipcanbe,andhowdenselychipmakerscanpacktransistorstogether.Inotherwords,lithographyiscrucialtofollowthepathdescribedbyMoore’sLaw.

SmartRobotics

SmartRobotics,theemploymentagencyforrobots,developsand placesmodularrobotsthatcanbeconfiguredforspecifictasks.Thecompany isspecializedinflexibleautomationformanufacturingandintralogistics.Inthemanufacturingindustrywehelpourclientsbydeployingourrobotsforassemblylinework,productsorting,machineloadingandunloading,butalsoforqualitycontrol,packagingandpalletizing.

Theintralogisticsmarketisoftenstronglylinkedtotheproductionandpackagingofmanufacturedproducts.Howeverthequicklyincreasingnumberofenterpriseswithwarehousingforonlineshoppingalsocontributetoourclientele.Extremelyflexibleautomationisessentialtorealizingthehighonlinedemandfor24/7orderfulfilment.Theirsolutionsarethereforefoundinprocessessuchasorderpicking,loadingandunloadingofvehicles,sorting,packagingandpalletizing.

SchmitzCargobull

Withanannualproductionofsome45,000*vehiclesandaround 4,900*employees,SchmitzCargobullAGisEurope'sleadingmanufacturerofsemi‐trailersandtrailersfortemperature‐controlledfreight,generalcargoandbulkgoods.

Thecompanyachievedsalesofapproximately€1.6*billioninthe2014/2015businessyear.Asapioneerintheindustry,theGermancompanydevelopedacomprehensivebrandstrategyearlyonandconsistentlyestablishedqualitystandardsspanningeverylevel:fromresearchanddevelopment,toproductionandspecialistservicessuchastrailertelematics,financing,usedvehicles,sparepartsandFullService.

*Figuresbasedonthe2014/2015businessyear

MEYERWERFT

MEYERWERFT,basedinPapenburg,wasfoundedin1795andisin itssixthgenerationoffamilyownership.

Ithasachievedanexcellentworldwidereputationoverthelastdecades.Thecompanyisespeciallyknownduetotheconstructionofhuge,modernandsophisticatedcruiseships.MEYERWERFTwasthefirstcompactshipyardinEuropeandisoneofthemostmodernshipyardsintheworld.Thetwocovereddocksaswellasthemodernmanufacturingplantsandtheconceptofshortdistancesensuretheshipyard’ssuccess.Innovationsandthenewesttechnologiescharacterizetheshipyard'sdailyroutine.

Moderncomputertechnologyisusedeverywhere,bethatthefirstlayoutorthedesignoftheshiportheproductionprocess.Constructiondrawingsarehardlyfound.Theyarereplacedbysimulationsbywhichtheshellplatingofashipisdesigned,tonamebutoneexample.Almostthewholeproductionprocesshasbeendigitized,whichsavestimeandmoney.Alotofprojectscanbeplannedandsavedinthevirtualworld,andassemblyprocessescanbetested.3‐Dsimulationsallowplanningwithahighdegreeofanticipation.Productionandproductionprocess

canbedevelopedatthesametime:Thissavestimeandeffortandleadstoabetterefficiency.The"DigitalFactory"isextremelyhelpfulinplanninganddesignsbecausetheengineerscanestimateatveryearlystageswhatcanbeimplementedandwhatcan't.Thisavoids"surprises"intheproductionprocess,andacceleratesconstruction.Mistakescanbeavoidedwellbeforetheycostalotofmoneywhentheshipisalreadyattheproductionstage.Thecomputer‐aidedlogisticssystemminimizesstoragespaceandthusoperatingcosts.Thematerial‐flowcontrolsystemTESScontrolsthewholematerialflowontheshipyardviadataradio.Eachstructuralcomponentiswiththerightpersonattherightplaceattherighttime.Shortesttransportroutes,minimalemptyrunsandprecisejust‐in‐time‐supplyareensured.MEYERWERFTisPapenpurg’sattraction,duetotheconstructionofluxurycruiseships.Everyyear,about 300,000touristscometoMEYERWERFTtoseeonsitehowstate‐ of‐the‐artshipbuildingworks.

Theshipyard’svisitorcenterprovidesyouwithacomprehensiveintroductionaboutMEYERWERFT’s worktodayandofthepreviousyears.Furthermorethereareunique exhibits,informativefilms,afullyequippedmock‐upcabinand otherhighlights.

Mercedes‐BenzPlant,Bremen

TheMercedes‐BenzPlantinBremenisworldwideoneofthebiggestcar factoriesofMercedes‐Benz.Morethan12,500employeesareworkinginBremensothatDaimlerisalsothebiggestprivateemployerinthatregion.Untiltoday,morethan7millioncarshavelefttheplant.In2014,morethan338,000vehicleswereproduced.Presently,8modelsareproducedatthesite:C‐ClassSaloon,Estates,Coupé,E‐ClassCoupéandCabriolet,thenewGLCaswellasbothSLKandSLroadsters.

Furthermore,theMercedes‐BenzplantinBremenisresponsibleasleadfactoryfortheC‐ClasspartnerfactoriesintheUS,inSouthAfricaandinChina.Inthe"futurevision",whichwasdeterminedbytheplantmanagementandtheworkcouncilinJune2015thefuturecoursewasset.Theplantreceivestwonew

modelsandwillbeequippedwiththelatesttechnologies.Especiallytheaspectsof“Industry4.0”willberealizedbythedigitalinterconnectionofproductionprocessesandman‐machinerelationshipinthefactory.In2017,thenumberofapprenticeshippositionswillbeincreasedaswellas500newstaffmembersemployed.TheDaimlergroupwillinvest750millioneurointotalinthesite.

Airbus,Hamburg

HamburgtheheadquartersofAirbusinGermanyandthelargestAirbussiteinGermanyemploysaround12,500peopleandplaysakeyroleinthedevelopmentandmanufacturingofallAirbusaircraft.Thecompanyisalsooneofthebiggestemployersintheregion.Over500apprenticesstarttheircareerseachyearatAirbusinHamburg.HamburgisthehomeoftheA320Familyprogrammanagement.FortheA320Family'sfourmembers,the A318,A319,A320andA321,structuralassemblyandequippingof fuselagesectionsaswellasfinalassemblytakeplacehere.Around halfofAirbus’annualproductionofA320familyaircraftare assembled,painted,anddeliveredtocustomersfromallaroundthe worldinHamburg(262in2015).

TheplantinHamburg‐FinkenwerderisalsohometoAirbus' A380majorcomponentassemblyhall,whichhousesthestructuralassemblyandtheequippingoftheforwardandcompleterearfuselagesectionsforthisnew‐generationverylargeaircraft.ThesefullyassembledandequippedfuselagesectionsareproducedhereandthenshippedtotheA380FinalAssemblyLinein

Toulouse,Franceonaspecially‐builtroll‐on,roll‐offseaship.

FollowingfinalassemblyinToulouse,theemptyandunpaintedA380sareflowntoHamburg.Theyarefittedwiththeircustomers’exclusivecabininteriorsandpaintedinoneofthetwohigh‐techA380paintshopsbeforefinaldelivery.FinalacceptanceanddeliveryofA380sforcustomersinEuropeandtheMiddleEasttakeplacefromthe“JürgenThomasDeliveryCentre”inHamburg.

HamburgalsoplaysakeyroleintheA330andA350XWBprograms.AsfortheA380,theforwardandtherearfuselagesectionsaremanufacturedandequippedinHamburg.Intheproductiondomain,Hamburg'smanyyearsofmanufacturingexperienceinfuselagestructuralassemblyandsystemsinstallationmakethissiteacenterofcompetenceforfuselageandcabin.

Intheengineeringdomain,keycompetencesinHamburgrevolvemainlyaroundthedevelopmentoffuselagestructureandthedesign,innovationandsystemsofthecabin.TheFinkenwerdersitealsohousesA320Familymaintenancetrainingfacilitiesthatreceivehundredsofairlinetraineeseveryyear.

ClosetothecommercialairportofHamburg‐Fuhlsbüttel,Airbusoperatesalargesparescenter‐whichholdssome120,000proprietaryparts,aswellasa24/7sparescallcenterforitscustomersfromaroundtheworld.

LufthansaTechnology

Astheworld'sbiggestprovideroftechnicalsupportservicesforaircraft, LufthansaTechnikismorethanjustamaintenanceandrepairorganization.Thecompanyisalsoanaviationauthority‐approveddevelopmentandproductionorganization.Thismultiplecompetencecontributessignificantlytothecompany'sleadingpositionandmakesitpossibletofulfilleventhemostcomplexcustomerrequirements.Morethan500engineersworkinthevariousbusinessunitsinHamburg,ateamofover120peopleis

responsiblesolelyforthedevelopmentofnewtechnologies,equipmentandsystems.LufthansaTechnik'stechnicalexpertiseintheconversionofaircraftforprivatecustomersisparticularlystriking.Theproblemsthattheteamisregularlyaskedtosolvecallforanunusuallywiderangeofdevelopmentcompetencies,ascustomers'requirementsvarywidely,forexample,fromthedesignofawatersupplysystemwithextra‐largetankvolumetoaverylarge‐formatplasmascreenfortheon‐boardaudioandvideosystemorcustom‐builtfurnitureforthecabin.

Althoughsomein‐housedevelopmentsweredesignedprimarilytomeettheneedsofprivatecustomers,othershavealsofoundtheirwayintocommercialairliners.OneexamplehereisGuideUColourCurve,afloorpathmarkingsystemforpassengeraircraftwhichhasbecomethestandardontheinternationalmarket.Thelightstripsworkwithoutelectricalpowerandhencecanbereliedontoindicatetheroutetotheemergencyexitsinadarkenedcabin,evenafteranelectricalfailure.Skypower®,asystemforsupplyingpowertoindividualpassengerseatstoenabletheuseoflaptops,wasalsodevelopedbyLufthansaTechnik.Anotherexampleofacustomer‐orientedproductdevelopedbyLufthansaTechnikistheCyclean®enginecleaningsystem.Cyclean®EngineWashisanewmethodforwashingengineinteriorsquicklyandeffectivelyusingwaterdeliveredunderhighpressure.Removingdepositsinthiswayenablesthehigh‐pressurecompressorofanenginetoworkmorecleanlyandefficiently,resultinginabetterflowofairandareductioninexhaustgastemperature.Improvingengineperformanceinthiswaynotonlycutsfuelconsumptionandemissionsofpollutants,butalsobringssavingsinmaintenancecoststhroughouttheservicelifeofanengine.AfurtherexampleofthecompetenceofLufthansaTechnikisthedevelopmentofasystemforhigh‐speedInternetaccessonboardcommercialaircraft.OriginallydevelopedforVIPcustomers,todaytheseproductsarealsoavailabletopassengersofcommercialairlines.Between2004and2006Lufthansaequippeditsentirelong‐haulfleetwithfastinternetaccessbasedonthissystem.ToconnectpassengerstotheInternetevenatcruisealtitude,LufthansaTechnikfittedaspecialantennatotheuppersideoftheaircraftfuselagewhichensuredconnectiontotheworldwidenetbysatellite.Evenatacruisespeedof900km/h,theantennamaintainssteadycontactwiththesatellites,thuspermittingtransmissionspeedssimilartothosethatpassengersareusedtoforconvenientonlineapplicationsathomeorintheoffice.Whenthethenpartner,ConnexionbyBoeing,discontinuedtheInternetaccessserviceLufthansastoppedtheproductandlookedforanalternativepartner,whichhasbeenfoundnow.ThenewcooperationwithPanasonicallowedLufthansatore‐launchtheserviceintheendof2010.LufthansaTechnikiscurrentlyfittingthecompletelong‐haulfleetofLufthansawiththenewsystem.

Kuehne+Nagel

Overour125yearhistory,Kuehne+Nagelhasevolvedfromatraditionalinternationalfreightforwardertoaleadingglobalproviderofinnovativeandfullyintegratedsupplychainsolutions.Since1890,whenthebusinesswasfoundedinBremen,Germany,byAugustKuehneandFriedrichNagel,Kuehne+Nagelhasgrownintooneoftheworld'sleadinglogisticsproviders.Today,theKuehne+NagelGrouphasmorethan1000officesinover100countries,withover66,000employees.Ourkeybusinessactivitiesandmarketpositionarebuiltonthecompany'strulyworldclasscapabilities:Seafreight:

Number1globalseafreightforwarder Sustainedyear‐on‐yeardoubledigitgrowthinmanagedfreight Solidpartnershipswithanextensiverangeofpreferredoceancarriers

Airfreight:

Number2globalaircargoforwarder Leaderininnovativecargomanagementconcepts GlobalCargo2000Phase2certification

ContractLogistics&IntegratedLogistics:

Number2globalcontractlogisticsprovider Worldwidenetworkofwarehouseanddistributionfacilities Number1globalleadlogisticsprovider

Overland:

EuropeanTop3provider Pan‐Europeanoverlandtransportationcapabilities,includingdedicatedandindividualdelivery

services Closepartnershipswithbest‐in‐classcarriers

Kuehne+Nagelisfinanciallystrong,stableandindependent.Itsgloballogisticsnetwork,cutting‐edgeITsystems,in‐houseexpertiseandexcellentcustomerserviceisproofofourdedicationtobethemarketleader.Theseattributeshaveplacedthemattheforefrontofourindustry,andpositionedustocontinueincreasingthescopeofourcustomersolutionsandservices.

CompanyProfiles(USA)

AmerisourceBergen

AmerisourceBergenisdrivinginnovativepartnershipswithglobalmanufacturers,providersandpharmaciestoimproveproductaccessandefficiencythroughoutthehealthcaresupplychain.Aspartofthelargestglobalgenericspurchasingorganization,theleadingspecialtypharmaceuticalservicesproviderandthepartnerwithmorecommunityandhealthsystempharmacyrelationshipsthananyother—we’rewellpositionedtohelpyoucapitalizeonthedynamicchangesinhealthcare.Fromproductcommercializationanddistributiontopharmacy,providerandmanufacturersolutions,we’reworkingwithyoueverydaytoenhancepatientcare.

JanssenPharmaceuticals

WhoisJanssen?We’remorethan30,000peopleworkinghardtoprevent,treat,cureandstopsomeofthemostdevastatingandcomplexdiseasesofourtime.FromheartdiseasetoHIV,Alzheimer’sdiseasetocancer,wearecommittedtoissuesthattoucheveryone’slives.

Ourmissionistotransformindividuallivesandfundamentallychangethewaydiseasesaremanaged,interpreted,andprevented.Webelievethatchallengingsomethingisthebestwaytochangeit.Soeveryday,inmorethan150countries,webringcutting‐edgescienceandthemostcreativemindsintheindustrytogethertothinkdifferentlyaboutdiseases.Weaimnotonlytoinnovatebutalsotoempowerpeoplewiththetoolstheyneedtomakeinformeddecisionsandachievethebestpossibleresultsfortheirhealth.

Wearelookingatafuturewheretheworldofhealthcarewillbechallengedbyinformedandempoweredpatients.Weworkforchangethatwillimproveaccesstomedicines:thebestavailabletreatmentatanaffordableprice.That’swhyweatJanssenstrivetoprovideaccesstoeffectiveandaffordablemedicinesandrelatedhealthcareservicestothepeoplewhoneed.

Ourfocusareasare:Cardiovascular&Metabolism,Immunology,InfectiousDiseases&Vaccines,NeuroscienceandOncology.

OptionalReadingList

Note:Requiredreadingsareassignedforthelectureclassesandthewrittenassignments.AllrequiredreadingswillbepostedonthecourseCanvassite.AsubsetoftheoptionalreadingswillalsobepostedontheCanvassiteandwillbeupdatedthroughoutthesemester.Studentsareencouragedtosuggestcurrentreadingstobesharedwiththeclass.

Optionalreadingsprovide:1)recentexamplesofreshoring/nearshoringandinsourcing,ascounter‐trendstooffshoringandoutsourcing,inavarietyoffirms,industries,andcountries,fromthebusinesspress;2)comprehensivereportsbythink‐tanks,consultingfirms,andgovernmentagenciesontheeconomicandpolicyissuessurroundingmanufacturinginadvancedeconomycountriessuchastheU.S.andJapan;3)examplesofresearcharticlesbyfacultythatconveytheirinterestsandprovidecontextforthiscourse.Suggestedbooksarelistedaswell.

1) Recentexamplesofreshoring/nearshoringandinsourcingfromthebusinesspressa) “SanDiego”,DestinationSanDiegoJune21,2016.b) “Mexico’smaquiladoras:Bigmaqattack”,TheEconomist,Oct26th,2013.c) “Yen’sShiftingValueHelpsJapaneseCarmakersMeetNewChallenges”,

Knowledge@Wharton,April01,2014.d) “ReshoringCouldCreate200,000jobsovernextdecade”,FinancialTimes,March

11,2014.e) “UKReshoringFacesBattleIndustrialistsWar”,FinancialTimes,January24,

2014.f) “FewUSReshoringsGoAhead,StudyFinds”,FinancialTimes,September7,

2014.g) “ReshoringDrivenbyQuality,NotCosts,SayUKManufacturers”,Financial

Times,March3,2014.h) "TheTopSupplyChainDisastersofAllTime",SupplyChainDigest,D.Gilmore,

May7,2009i) “RebalancingYourSourcingStrategy”,McKinsey&Co.,July2014.j) A.PollackandS.Lohr,"AJapanesePlantStrugglestoProduceaCriticalAuto

Part",NewYorkTimes,April278,2011.k) “JapanRe‐EmergesintheAerospaceArenaWithaNewJet”,H.Tabuchi,New

YorkTimes,April9,2013.l) “RequiemforaDreamliner,”JamesSurowiecki,TheNewYorker,Feb.4,2013.m) “NewProblemswithBoeing787,”C.DrewandJ.Mouawad,NYTimes,Dec.10,

2012.n) “DoesAmericaReallyNeedManufacturing?”GaryP.PisanoandWillyC.Shih.

HarvardBusinessReview,March2012.

o) “MakingItinAmerica.”AdamDavidson.TheAtlantic,Jan‐Feb.2012.p) “WinningtheRacewithEver‐SmarterMachines.”EricBrynjolfssonandAndrew

McAfee.SloanManagementReview,Winter2012.q) “Offshoring,Onshoring,andtheRebirthofAmericanManufacturing.”Michael

Dolega.TDEconomics,October2012.r) “InShiftofJobs,AppleWillMakeSomeMacsinU.S.,”C.RampallandN.

Wingfield,NYTimes,Dec.6,2012.s) “FlextronicsCEOSeesHopeforU.S.TechProduction,”J.Hagerty,WallStreet

Journal,January4,2013.t) “HondaBolstersItsProductioninNorthAmerica,”M.Ramsey,WallStreet

Journal,Aug.12,2012.u) “ToyotaSaysNoFullProductionUntilYear’sEnd,”H.Tabuchi,NYTimes,April

22,2011.v) “JapaneseManufacturersHelpSaveChipMakerRenesas,”H.Tabuchi,NYTimes,

December10,2012.w) “NissantoInvest$358millioninThaiPlant,”YahooNews,Nov.9,2012.x) “ToshibaTurnsOverseastoReduceProcurementCosts,”J.Osawa,WallStreet

Journal,Aug.16,2010.y) “Hitachi’sRevivalIsn’tSoGoodfortheCityofHitachi,”NYTimes,Dec.28,2012.z) “ChinaLosesEdgeAsWorld’sFactoryFloor,”WallStreetJournal,Jan.17,2013.aa) “HedgingChinaRisks,JapanFirmsTurntoBoomingSoutheastAsia,”S.

Grudgings,Reuters,Nov.5,2012.bb) “TheInsourcingBoom,”CharlesFishman,TheAtlantic,Dec.2012.cc) “Mr.ChinaComestoAmerica,”JamesFallows,TheAtlantic,Dec.2012.dd) “ShouldManufacturingJobsBe‘Reshored’totheU.S.?”Knowledge@Wharton,

Sept.26,2012.ee) “AmericanIndustryIsOntheMove,”S.Mallaby,FinancialTimes,Jan.8,2013.

2) In‐depthreportsfromthink‐tanks,consultingfirms,governments

a) “ManufacturingFootprints:GettingtoPlantX”,K.O’MarahandH.Lee,SCMWorld,2013.

b) “U.S.ManufacturinginInternationalPerspective.”MarcLevinson.CongressionalResearchService,Feb.2013.

c) “U.S.ManufacturingNearsaTippingPoint,”BostonConsultingGroup,2012.d) “LocatingAmericanManufacturing:TrendsintheGeographyofProduction,”

BrookingsInstitute,April2012.e) “Tradingmyths:AddressingMisconceptionsaboutTrade,Jobs,and

Competitiveness,”McKinseyGlobalInstitute,May2012.f) “ManufacturingtheFuture:TheNextEraofGlobalGrowthandInnovation,”

McKinseyGlobalInstitute,November2012.

g) “Manufacturing’sNewEra:AConversationwithTimkenCEOJamesGriffith,”McKinseyandCompany,December2012.

h) “Offshoring(OffshoreOutsourcing)andJobLossamongU.S.Workers,”CongressionalResearchService,December2012.

i) “RebalancingyoursourcingstrategyOffshoringisaliveandwell,butit’snolongertheonlyanswer,”byConradinMerk,JonathanSilver,andFabioD.Torrisi,McKinseyandCompany,July2014.

3) Faculty‐authoredarticlesa) “WinningintheAftermarket,”MorrisA.Cohen,NarendraAgrawal,andVipul

Agrawal,HarvardBusinessReview,May2006.b) “ValuingOperationalFlexibilityunderExchangeRateRisk,”ArndHuchzermeier

andMorrisA.Cohen,OperationsResearch,Vol.44,No.1,Jan.‐Feb.1996.c) “LessonsfromProductArchitectureInitiativesintheGlobalAutomotive

Industry,”JohnPaulMacDuffie,GlobalStrategyJournal,Vol.3,No.1,2013.d) “GetReadyfortheComplexityRevolution,”JohnPaulMacDuffieandTakahiro

Fujimoto,HarvardBusinessReview,June2010.e) “CollaborationinSupplyChains:WithandWithoutTrust,”JohnPaulMacDuffie

andSusanHelper,chapter10inTheCorporationasaCollaborativeCommunity,PaulAdlerandCharlesHeckscher(editors),OxfordUniversityPress,2007.

f) “SupplyChainCompetitivenessandRobustness:ALessonfromthe2011TohokuEarthquake,”TakahiroFujimoto,DiscussionPaper#362,ManufacturingManagementResearchCenter,UniversityofTokyo,September2011.

g) H.Matsuo,“ImplicationsoftheTohokuEarthquakeforToyota’sCoordinationMechanism:SupplyChaindisruptionofAutomotiveSemiconductors”,2014.

h) “CreatingtheNewGlobalEnterprise:TransportationPanel”,summaryfromWhartonconferenceonUS‐JapaneseManufacturingAlliances,April7‐8,1993.

4)SuggestedBooksa) ProducingProsperity:WhyAmericaNeedsaManufacturingRenaissance.GaryP.

PisanoandWillyC.Shih.Boston,MA:HarvardBusinessSchoolPress.b) RaceAgainsttheMachine:HowtheDigitalRevolutionisAcceleratingInnovation,

DrivingProductivity,andIrreversiblyTransformingEmploymentandtheEconomy.EricBrynjolfssonandAndrewMcAfee.Lexington:DigitalFrontierPress,2011.

c) TheNewIndustrialRevolution:Consumers,GlobalizationandtheEndofMassProduction.PeterMarch.NewHaven:YaleUniversityPress,2012.