Category Archives: Operations Management

New Flu vaccine manufacturing process and impact

A New York Times article (February 20, 2011) reports on a faster manufacturing process for flu vaccines – using animal cells vs using chicken eggs. The new manufacturing process is reported to be faster by six weeks and with lower … Continue reading

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The “value of a human life” and Supply Chain Choices

A New York Times article (February 20, 2011) describes estimates of the value of a human life across US government agencies – $ 9.1 million by the EPA, $ 7.9 million by the FDA, $ 6 million by DOT, and … Continue reading

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Operational Hedging vs Currency Hedging

An article in the Wall Street Journal (February 19, 2011) describes the move towards operational hedging – by shifting production across a global network of plants rather than pay for currency hedging. The article lists Nissan, Autoliv (seatbelt and airbag … Continue reading

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Grocery Co-ops of small stores competing with Supermarkets

The Economist (January 29, 2011, pg 64) describes how a collection of small stores are uniting as a co-op to develop customer loyalty cards, negotiate with branded manufacturers and offer electronic discounts to preferred customers.  The article comments on the … Continue reading

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Adjusting Runway designs to new material cost realities

A Wall Street Journal article (February 17, 2011, D1) describes changes in runway designs to accommodate the rising prices of cotton, silk etc.  One designer describes changes in material (leather to crinkled satin), length of the dress, number of bows … Continue reading

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Differential inspection of generic manufacturing facilities

An article in the Wall Street Journal (February 16, 2011, B1-3) describes the fact that FDA inspection of US pharmaceutical manufacturing facilities is usually once every two years but foreign plants are inspected less frequently, with 64 % of the … Continue reading

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Political Risk and Global Supply Chain Impact

An article in the Economist (Schumpeter, February 12, 2011, pg 75) describes the impact of political risk on the supply chain. It starts with the abrupt impact of the changes in Egypt on the company that controlled 67 % of … Continue reading

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Speeding up Medical Device Review and possible Quality Impact

A Wall Street Journal article (15 February 2011) describes a study of medical devices that received quick approval – if the device to be similar to others in the market and is intended for low to moderate risk patients.  The … Continue reading

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Neiman Marcus Assortment changes and potential impact

A Wall Street Journal article (15 February 2011) describes the past strategy at Neiman Marcus and changes to respond to the 30 % sales drop in December 2008.   The article describes that 50 % of its sales were generated … Continue reading

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Commodity price increases, margin impact and choices

A Wall Street Journal article (14 February 2011) describes the impact of commodity price increases have driven down average operating margins – by $ 500 million for Kraft and $ 1 billion for Proctor & Gamble.  The focus on productivity … Continue reading

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