LSCM 315 Logistics and Supply Chain Management
Case Study Overview
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Case Study 4 & 5 – Real Life Case Study Project
At this point, you are fully aware that all companies need a supply chain to gain a
competitive advantage. To add value to their organizational system, companies need to
develop their internal and external supply chain, logistics, and operations strategies.
Evansville Association of the Blind (EAB) Industries - a real-life company, is concerned about
two main things: how the company can 1) improve their external supply chain (SC) network
and partnerships and customer retention rates and 2) improve their current internal process
structure. Now that you have researched and studied Toyota’s Production System. For the
final case study assignments, you will analyze EAB industries in comparison to Toyota and
past case study findings.
It will help if you have visited the Evansville Association of the Blind (EAB) Industries facility
to analyze the company in comparison to Toyota’s tour. Students should consider visiting
the facility on more occasions to analyse the case better.
By the given deadlines, teams will provide EAB with a professional business proposal that
has three main deliverables: 1) a short description/business development plan (10-15 pages)
about the company‘s supply chain, logistics, and operations issues with recommendations
for improvement, 2) a current value stream map (VSM), and 3) a future VSM.
By the end of case study 4 & 5, teams will provide these deliverables by May 6, 2020. The
final paper is due May 6, 2020, at 11:59 pm. The final proposal will be broken into two parts
to describe the company’s current state and the proposed - recommended state of the
company. Students will also present their findings to EAB’s senior management if time
permits. Presentations will occur on April 20. Teams will present the visualized current and
proposed future state of the company to EAB.
For the case study 4 deadline, teams are expected to analyze a current process/problem at
EAB. To start analyzing the company, teams start working on the required questions and
submit answers to the questions listed below due March 23, 2020, via BB. It would be best if
you were as strategic as possible with your time and the information that you have now
acquired this semester. These questions will help the teams to analyze the company.
1. Discuss EAB’s industry supply chain (SC):
a. Do an external supply chain audit on the company by answering these questions
i. Provide a brief bio and history of the company.
ii. Who and what is EAB as a company? What will be EAB’s position in a basic
iii. Identify what type of company EAB is in the general business/supply chain
iv. What is the overall corporate/business mission of the company? Do their
supply chain, logistics, and operations management align with their
v. Identify (if possible, all) the organizations, people, information, resources,
and activities involved in their supply chain. Which company will your team
say is critical to the success of the company? Why select the company?
vi. Who are EAB’s competitors in the business marketplace?
vii. What strengths are most valuable to the business marketplace? What sets
Perform an internal analysis of the company.
i. Who are EAB’s customers? How can they be developed and satisfied?
ii. Identify gaps in the market that EAB’s operations can fill or satisfy.
iii. What strategic part does EAB play to their suppliers and or customers’
iv. Perform market segmentation on their suppliers and customers? How can
these market segmentation help EAB to showcase their unique strength?
v. Describe EAB’s supply chain integration status.
Describe EAB’s LSCM and operations management functions
i. What are EAB’s main processes and nested processes?
ii. What logistics activities does EAB perform?
iii. What are their logistics value-added utility functions?
iv. Identify the key external and internal factors that influence EAB’s LSCM
v. Do you think Kaizen is utilized at EAB? Refer to pg.161 of the Toyota text.
vi. Does EAB have a “right process”? Refer to pg.151 in the Toyota text
vii. Did you notice any Kanban system at EAB? Explain
viii. Do EAB’s methods manage visibility using visual controls? What are your
thoughts on this question? E.g. why ask this question?
ix. What lean consideration does EAB utilize?
x. How can the lean methodology support its business mission?
Supply chain Network and potential
i. What are the main strengths the company has that can be appealing to
ii. What are the cost factors/centers for this company? That is the area you
think increases costs that can be unappealing to potential
suppliers/customers? Or, the cost factors of the company that can be
appealing to potential customers?
iii. What new supply chain partnerships can lead the company to greater
To visualize the team’s analysis, your team will make a visual representation of the
problem identified. You should first identify what types of problems are closely
related to EAB’s two main concerns. Make sure that you demonstrate that your
team has researched the mentioned problem(s) in this case study. Don’t state
them to discuss why you mention them.
f. Use one of these areas to describe a main problem of the company as it relates to
their two main concerns:
i. Supplier relationship management
ii. Logistics process management
iii. Process/facility plan and layout structure
g. Formulate a thesis statement about the main problem observed at EAB. (Make
sure this is the problem is explained and included in the final report due May 6).
i. For the thesis statement, identify ONE key problem at EAB. Make sure the
main problem falls within the three areas in question (f).
1. Was this one main problem observed at EAB during the tour?
2. Is this one main problem similar to any of the previous case studies
1 & 2 selected company’s supply chain issue?
ii. What are other key problems attached/related to the main problem?
1. Highlight relevant facts about the problem(s) related to the main
problem you mentioned
2. What are its causes? Why do they exist?
3. Who causes the problem?
4. Whom are the parties involved in the problem or making it worse?
5. Who is affected by the problem?
iii. From this analysis, can you determine what are the types of Muda that EAB
experiences? Expand on two main types of waste.
iv. Are these types of waste related to any of the supply chain issues
mentioned in chapter 1? What are the related SC issues? Are these
problems similar to Muda and the SC issues?
v. How do you think EAB should utilize strategic sourcing to solve the
problem? Expand on their strategic sourcing potential.
2. To visualize the current state of the company, use a value stream map (VSM) to determine
the value and non-value-added processes that contribute to the problem analysis and or
overall company strength.
a. First, determine the need for the situation you are analyzing.
i. What value process did your team notice as key to satisfying the customer?
That is what process do you think is the most critical to meeting their
customers’ needs? Brainstorm to analyze if this process is part of their
ii. Can the main process that is key to satisfying the customer be highlighted
in the current VSM, and can the process be expanded on the future VSM?
iii. For example, if you are looking at supplier relationship management, look
through the processes that EAB takes to meet the specific goal you are
analyzing, such as sourcing suppliers. Build on all the steps EAB uses to
accomplish this process.
b. Select the one need/process/problem and analyze the current state of this
process/problem using a VSM.
i. Visually identify what the nested processes of this selected need/process
ii. Identify the critical or central need/problem and the problems that cause
iii. In the diagram, consider showcasing the SCM view of the process by
breaking up the external and internal customers and suppliers to this
iv. Try to provide the takt time/cycle time for each of the nested processes
v. What do you think is EAB’s key value-added processes? What are the nonvalue-added processes in the company?
vi. Highlight what non-value added processes will be eliminated in the current
state map. Make sure it evident in the future VSM map?
vii. Explain why to use the value stream map to identify each process.
viii. Make sure you break down and analyze the one main problem you
identified in your answers above, and if possible, show how the main
problem identified relates to EAB’s two main concerns on the VSM?
For submission on BB, provide short answers to each question. Teams do not have to use the
written or APA template writing format for this case study. Only use the APA template/format
if to include citations. That is, only use the APA format to include answers from online sources.
Teams are expected to describe their first VSM maps in class on the Case Study 4 deadline
that is due, March 23. Teams should look out for case study 5, due April 20, 2020 – For Case
study 5, teams will provide the proposed future state of EABs and finalize the business
proposal for EAB. Note that students will need to use the APA template/format for case
study 5 to make the final paper look professional. Teams will then provide the final
deliverables for EAB’s management by May 6, 2020. Teams will provide this professional
proposal by April 20 for me to check for improvement before the final submission.
A STRATEGIC APPROACH
TO THE PRINCIPLES OF
TOYOTA’S RENOWNED SYSTEM
ANANTH V. IYER
New York Chicago San Francisco Lisbon London Madrid Mexico City
Milan New Delhi San Juan Seoul Singapore Sydney Toronto
To my wife Vidhya and daughters Apsara and Rani,
and in memory of my parents
To my wife Shubha, daughters Padmavati and Sharada,
and all my family
To my wife Audrey; daughters Jody and Neely; my mother Emma,
who at the time of this writing is 105; and all my family
All my love
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Foreword by Hau L. Lee
Chapter 1. Toyota Learning Principles and the v4L Framework
Chapter 2. Comprehensive Overview of Supply Chain
Chapter 3. Mix Planning
Chapter 4. Sales and Operations Planning
Chapter 5. Production Scheduling and Operations
Chapter 6. Parts Ordering
Chapter 7. Managing Suppliers
Chapter 8. Logistics
Chapter 9. Dealer and Demand Fulfillment
Chapter 10. Crisis Management
Chapter 11. The Toyota Way of Managing Supply Chains
Chapter 12. How to Apply Toyota Way Principles to
Nonautomotive Supply Chains
Chapter 13. The Beer Game and the Toyota Supply Chain
Chapter 14. Reflections of Supply Chain Participants
Chapter 15. Reflections
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or decades, Toyota’s success in the marketplace has been admired by business practitioners and executives alike. The automaker is the envy of
others within the automobile industry, but the company is also considered to be the symbol of excellence in business in general. The firm has been the
focus of research in academia.
The power of Toyota has been attributed to its two distinct core values: the
Toyota Way and the Toyota Production System (TPS). The Toyota Way has created a culture of respect for individuals, promoting innovation and fostering
cooperation. TPS has been the engine under which lean manufacturing, kanbans, quality systems, just-in-time, and continuous improvement practices have
been developed. Together, they have been the pillars for the foundation upon
which Toyota has become so successful.
But the Toyota Way and TPS are just foundational pillars. There is another
concrete secret to the success of Toyota: the way the company runs its supply
chain. The Toyota Way and TPS of course have been part of how Toyota has
developed its supply chain principles and how the company has applied such
principles to work with its suppliers, dealers, and manufacturers. Based on these
principles, Toyota has coordinated the plans across the supply chain—and it
has executed them well. Supply chain management excellence is the ultimate
way in which Toyota has built its superior efficiency in operations.
I am delighted to see this book about Toyota’s supply chain management
written by two leading academics and an experienced Toyota executive. This
book reveals the powerful way that Toyota runs its supply chain, and it shows
vividly how the Toyota Way and TPS have been ingrained in the processes used
by Toyota to run its supply chain. I submit that reading about Toyota Way and
TPS is only a starting point for really learning the innovativeness and effectiveness of Toyota’s operations. The current book completes the picture.
While TPS is the central theme of how Toyota runs its factories, the scope of
supply chain management is much greater. It spans suppliers to Toyota as well as
possibly the suppliers’ suppliers, the distribution channel, the dealers, and ultimately, the consumers. The coordination, planning, and control of this extensive
network are a daunting task. The current book well describes how Toyota has
been very smart in examining three dimensions of supply chain management:
geography, product, and time. This book gives us a treatment on how Toyota has
designed and operated supply chains to adapt to these three dimensions. For
example, the needs for the Japanese and U.S. markets, the Camry versus the
Lexus, and at different points in time of the product life cycle, are different, and
so different supply chain processes are needed.
I would urge the reader going through this book to keep two perspectives
in mind. First, it describes in great details how Toyota runs its supply chain. As
a result, there are many innovative ideas that Toyota uses, and many best practices described. So the reader can pick up a lot of useful tips and revelations.
Second, the structure of the book is extremely helpful to organize your thoughts
and evaluations of your own supply chain. The chapters that follow cover the
whole spectrum of what constitutes comprehensive supply chain management.
So, going through the chapters gives you a framework to follow. In that sense,
even if you extract the Toyota content out of the chapters, the book is a good
guideline to develop sound supply chain management practices.
One of the most useful conceptual frameworks in this book is the v4L construct. We see how Toyota manages its supply chain to ensure that the 4v’s—
variety, velocity, variability, and visibility—can be controlled. In every chapter,
for every supply chain operation, the authors describe how this can be done.
Again, seeing how Toyota has done it is valuable and informative. But I also
think that the reader can benefit from seeing how the authors developed the
thought process behind what Toyota did to accomplish the objectives of gaining
control of the 4v’s. That knowledge by itself is highly educational.
For anyone who wants to learn the true secret of Toyota’s operational excellence, this book is a must-read. In addition, while learning about Toyota’s supply
chain management, we also are given a journey of sound supply chain management in general.
In my personal research, I have come across Toyota’s supply chain management practices and have been very impressed by how thorough and innovative
the company has been since its inception in the 1930s. I must congratulate the
authors of this book, as they have done the most comprehensive, insightful, and
penetrating treatment of this subject.
Hau L. Lee
Thoma Professor of Operations, Information, and Technology
Graduate School of Business, Stanford University
he authors express their appreciation to the management of Toyota
Motor Engineering & Manufacturing North America, Inc., for providing access to their executives for interviews as well as for the tour of the
Georgetown manufacturing facility. Nancy Banks, manager external affairs, was
extremely helpful in coordinating the interviews and arranging for the plant
tour. Nancy also spent countless hours reviewing drafts of the book and providing excellent feedback.
The interviews with Toyota executives provided deep insights into Toyota’s
management of the supply chain. We would like to thank all of the interviewees
for taking precious time out of their busy schedules to speak with us. Gene
Tabor and Jamey Lykins, general managers in Toyota’s Purchasing Division, discussed how Toyota’s purchasing relationship with suppliers plays an important
role to ensure a strong partnership with suppliers at all levels. David Burbidge,
vice president of Production Control, provided an excellent overview of
Production Control’s role in managing the supply chain. Mike Botkin, general
manager of Logistics, shared with us his expertise of Toyota’s Logistics operation.
In addition, the interviews with executives from Toyota’s partners enlightened us on how the extended supply chain supports Toyota’s management philosophy. Jeffrey Smith, vice president and general manager for Toyota Business
Unit Johnson Controls, Inc., has several years of working with Toyota around
the world and was able to provide the supplier perspective. Gary Dodd, former
president of Tire & Wheel Assembly, also discussed the supplier’s role and
explained the process of becoming a new Toyota supplier. To round out the
supply chain we spoke with Steve Gates, dealer principal, Toyota South in
Richmond, Kentucky, to obtain an understanding of the dealer operations in
the Toyota environment. Steve is also a member of Toyota’s dealer council, so he
was able to provide a comprehensive view not only of the dealer’s operation but
also the Toyota dealer network. Achim Paechtner, former senior manager of
Toyota of Europe, provided a framework of how Toyota and other automobile
companies operate in Europe. Achim’s understanding of the European markets
was extremely helpful.
We thank the Toyota Motor Corporation for endowing the Term
Professorship at the Stern School of Business without which Sridhar Seshadri,
the first Toyota Motor Term professor, would never have met Roy Vasher and
this joint project would never have been undertaken. Ananth Iyer acknowledges
the support of the Krannert School of Management at Purdue University whose
Fall DCMME Manufacturing Conference, where Roy was a speaker in 2007,
provided a forum for the authors to meet face-to-face for the first time.
We thank Mayank Agarwal, MBA student at the Stern School of Business
for his extensive research into the automobile business. The research was used in
this book to confirm the benefits of Toyota’s supply chain management. The
final manuscript would not be complete without the assistance of Leslie
Culpepper, who helped copyedit this manuscript.
oyota uses unique processes to effectively manage and operate the
supply chain. These processes span the supply chain and have enabled
Toyota to deliver remarkably consistent performance over decades. The
authors, a retired Toyota senior executive with hands-on experience and two
senior academics, have pooled their combined experience to both describe existing processes as well as understand why they work. By combining the insights
of a practitioner with almost 20 years of Toyota’s execution and management
experience and two academics with decades of research experience, we hope to
provide a unique presentation of the topic that can influence supply cha ...
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