Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2011. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 43-44). / In any process, complexity has the potential to decrease processing rates of the operation. Mass production has driven up operator efficiency by removing complexity to create a standardized and simplified process. However, removing complexity from a process reduces the operator's ability to customize their products and remain flexible to variations in demand. Businesses need to decide the appropriate level of process standardization that allows their operators to work as efficiently as possible while remaining flexible enough to satisfy customer demand. The goal of this research is to analyze the standardization of the least efficient process in an outbound order fulfillment system at Amazon.com. Various tests were performed during a six-month internship at Amazon's Lexington, KY facility to determine if this process could benefit from standardization. The testing showed that Amazon's processes must maintain a high level of flexibility to satisfy the variations in customer demand and the diverse mix of products that they ship. This research ends with a proposed process improvement that will improve the efficiency of the baseline scenario while providing flexibility to handle variation in order flow. During the internship, the per-order cycle time at the packing operation has been reduced by 9.7% and another improvement was tested which reduced cycle times by 10.9% when implemented. When the final improvement is implemented the total cycle time reduction will be 20.6%. / by Rob Jackson. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2011. / Cataloged from PDF version of thesis. Vita. / Includes bibliographical references (p. 78-80). / Traditionally, in Raytheon's Integrated Defense System Product Development Engineering Group, lean initiatives have not been fully adopted. Though the lean tools are useful, the engineering group is looking for more effective deployment methods to implement lean. The conventional push approach is to have management communicate some strategic objective which generates a project. Historically, a useful lean tool is developed and introduced, but is under-utilized months later. We focused on implementing a push-pull hybrid approach. The purpose is to merge the strategic objectives with stakeholder values to generate a project that addresses needs from both ends. Organizations (such as Toyota) that are effective with change management typically spend 80 percent of their time and resources on people engagement and organizational architecture. The remaining 20 percent is spent on lean tool utilization. Raytheon emulated this model and generated initial people engagement. We discovered that successful change management embodies three factors: 1) Engaging Stakeholders 2) Engaging Leaders 3) and Ensuring Alignment of Organizational Architecture. / by Steven Lee. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2012. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 54-55). / Companies that utilize multiple facilities to satisfy customer demand are faced with the same basic question - where should inventory be held? This thesis presents a method for answering this question, specifically for a company that allocates multiple units across multiple facilities, where any facility can fulfill an order to any customer, though with differing shipping costs. The model presented is a simulation of the shipping costs of various allocation strategies across a range of allocated inventory quantities, where the strategies simulated include consolidating all inventory in a central facility, constraining inventory to regional hubs, and spreading inventory throughout the network. The simulated results are then compared to find the low cost allocation strategy at a given level of allocated inventory. With this comparison, product groupings with the same low cost allocation strategy are identified, and are defined as "Slow", "Medium-A", "Medium-B", and "Fast" products. These groups can then be used to manage the allocation process, where "Slow" inventory is held centrally, "Medium-A" inventory held regionally, and "Fast" inventory spread throughout the network. "Medium-B" items serve as a costmitigating flexible option, where they are spread throughout the network when possible but consolidated when necessary to avoid changing the allocation for "Fast" items. At a broad level, the model presented is applicable to any company that can fulfill demand to a single customer from multiple facilities. / by Braden Ball. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2012. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 116-118). / This thesis describes a proposed risk identification process that is intended to systematically identify potential risks that could materialize within a company's supply chain that would affect component supply. The process is based on a specific situation at Nokia though is intended to extend to other companies that rely extensively on outsourced component manufacturing. An analysis of the current risk identification process at Nokia revealed three areas of potential improvement: the lack of full upstream visibility, the supplier-centric nature of the process and risk reports not fully conveying desired information. Based on a review of existing literature on supply chain risk management and other risk prediction techniques, as well an analysis of the specific situation at Nokia, which has a complex and rapidly-changing supply chain, a new risk identification process was developed. This process consists of two steps: first, mapping out the network structure of the company's supply chain; second, identifying and tracking certain data that could be used as factors to identify potential supply risks. The process proposes a model based on fuzzy logic to aggregate and map the data to highlight potential risks. The thesis also contains a discussion of implementation of the proposed approach, including software requirements as well as organizational roles and responsibilities. / by Amil Mody. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2012. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 62). / Many companies have implemented lean and six sigma programs over the past twenty years. Lean has been a proven system that has eliminated waste and created value at many companies throughout the world. Raytheon IDS's lean program, "Raytheon Six Sigma" became a top priority in the past ten years at the Integrated Air Defense Center (IADC) in Andover, MA. However, as Raytheon's corporate goals state, they want to take this further and bring "Raytheon Six Sigma" to the next level, fully engaging customers and partners. A focus of this continuous improvement effort was the Electronics Assembly Rack manufacturing cell, which was experiencing high levels of cycle time variability. To help reduce cycle times within the cell, a continuous improvement project was undertaken to improve the material flow process. A current state analysis of the process showed an opportunity to improve process standardization and prioritization while lowering inventory levels. In addition to working with managers from EA to evaluate the material flow process, a kitting cart was developed with a cross functional project team to serve as a tool to help improve the process. Although the improvements were not rolled out to the entire cell during the project, a successful pilot was conducted that helped improve engagement with operators and create a path for future success. / by Paul Millerd. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2012. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 52). / In the current healthcare environment, the cost of delivering patient care is an important concern for hospitals. As a result, healthcare organizations are being driven to maximize their existing resources, both in terms of infrastructure and human capital. Using a data-driven approach with analytical techniques from operations management can contribute towards this goal. More specifically, this thesis shows, drawing from a recent project at Beth Israel Deaconess Medical Center (BIDMC), that predictive modeling can be applied to operating room (OR) scheduling in order to effectively increase capacity. By examining the current usage of the existing block schedule system at BIDMC and developing a linear regression model, OR time that is expected to go unused can be instead identified in advance and freed for use. Sample model results show that it is expected to be operationally effective by capturing a large enough portion of OR time for a pooled set of blocks to be useful for advanced scheduling purposes. This analytically determined free time represents an improvement in how the current block system is employed, especially in terms of the nominal block release time. This thesis makes the argument that such a model can integrate into a scheduling system with more efficient and flexible processes, ultimately resulting in more effective usage of existing resources. / by Gregory C. Sham. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2012. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 97-99). / From June to December 2011, the impact of rapid international expansion on the Global Supply Chain organization at Amgen - one of the world's leading human therapeutics companies in the biotechnology industry - was investigated and a strategy was developed to mitigate the major challenges associated with globalization. Amgen is transitioning from predominantly high-volume low-mix manufacturing and a "one size fits all" Operations mentality; the company is challenged to not only now effectively and efficiently accommodate high-mix low-volume markets, but to also increase its overall market responsiveness and flexibility. To mitigate the challenges, an end-to-end depiction of a specific product's supply chain was developed and an inventory supermarket strategy supported by an Excel macro was developed. We believe the strategy mitigates the challenges, specifically by decreasing manufacturing lead time, buffering against supply chain variability, improving demand signaling and sustaining on-time deliveries. The Excel macro described in this thesis serves as a stepping-stone for the development of a future, more sustainable solution for Amgen's enterprise-wide systems. / by Sally A. Smith. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Global Operations Program at MIT, 2012. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 72-76). / Today, approximately 90% of Intel notebook processors are packaged in PGA (Pin Grid Array) and 10% are packaged in BGA (Ball Grid Array). Intel has recently made a decision to transform the notebook industry by creating a new system size category called Ultrabook TM . In order to create such a thin form factor, PGA (Pin Grid Array) CPUs must now be offered as BGA (Ball Grid Array) CPUs to reduce the height of one of the taller items of the system. With the increased number of Ultrabooks [TM] being offered, the overall volume of BGA CPUs shipped by Intel is expected to increase. BGA CPUs can be shipped in one of two mediums: tape and reel or trays. By making tape and reel available, customers would be able to utilize the benefit of a more efficient pick and place process on their surface mount technology (SMT) lines compared to when using trays. However, from Intel's standpoint, BGA CPUs have a very high product mix, and shipping BGA CPUs in trays allows Intel to ship in smaller order quantities to customers. Intel currently ships its BGA CPUs in trays. Because BGA processors used in Ultrabook m and other systems will become the majority of processor volume, some customers have made a request to have BGA CPUs delivered in tape and reel in addition to trays. The objective of the thesis is to determine if packaging CPUs in tape and reel in conjunction with tray packaging will improve overall CPU supply chain performance. Based on the analysis, we conclude that tape and reel should not be offered due to the minimal savings received by its ODM customers, and the expense that would be incurred by Intel based on current market conditions. Key drivers that influence this decision on the Intel side include SKU management issues, lack of shipping efficiency, and capital equipment purchase costs. From the customer point of view, it was identified that the request came from ODM Surface Mount Technology line managers and did not take into consideration procurement or inventory holding issues. / by Pamela Chuang. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Global Operations Program at MIT, 2012. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. [104]). / Mobile device companies typically manage supply and pricing for components that are used in production by their Vertical Integrators (VIs). By controlling the component pricing and supply chain, mobile device companies are able to increase their pricing and supply chain leverage over smaller component suppliers. Maintaining this leverage is crucial in ensuring that mobile device companies can mass-produce high quality products at efficient costs. However these advantages require that companies incur additional operational expenses associated with supply chain management. To reduce costs and improve lead times, OEM companies should consider having 1st Tier suppliers directly manage 2 nd Tier suppliers. This project will investigate VI capabilities to manage quality, design, and cost across the entire range of hardware used in Nokia phones. Alternatively, we will also identify specific program and commodity areas which may benefit from having a more integrated supply chain. We will also investigate how Nokia can reduce supply chain management costs to meet future business needs related to cash flow.' By analyzing Nokia's historical supply chain performance, we will develop a model to quantify Nokia's "level of control" over its supply chain. We define this "level of control" in terms of the Operational Expenses and Investment which Nokia incurs in managing its supply chain. With this model, we will assess how future business constraints will affect Nokia's supply chain control. By evaluating key parameters which influence supply chain control, we can recommend how Nokia can allocate control across its supply chain. Finally, we will apply this model to recommend how Nokia should outsource supply chain management responsibility. / by Ethan Y. Xu. / S.M. / M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Global Operations Program at MIT, 2013. / Cataloged from PDF version of thesis. / Includes bibliographical references (p. 44-46). / Smart Phone Ecosystems revolve around developers, applications and users. One of Nokia's own platforms, the S40, targets the low end of the smart phone market. Nokia's Content & Ecosystem Sourcing group is constantly looking for ways to help its developers of the S40 platform create more successful applications. This paper attempts to do so by examining the different monetization approaches for different application categories across all regions. While paid applications still constitute a majority of the revenue generating applications, the S40 marketplace has experienced a significant increase in the number of Try & Buy and In-App-Purchase applications in recent years. Try & Buy has been proven to be a dominant force in gaming categories, albeit with some differences across the regions. In-App- Purchase has also shown promise within games and some other categories, but the acceptance of this monetization approach varies greatly by region. Two new metrics, Revenue per Product View and Downloads per Product View, are proposed to evaluate application performance independent of download volume and monetization approach. Utilizing these new metrics, we found the applications utilize the Try & Buy approach to perform equally as well, if not better than, the applications utilizing the paid approach. The new metrics will enable the group to track the performance of applications from a holistic perspective and more easily identify those developers who have created successful applications. Additionally, the Downloads per Product View metric enables tracking of the reach of the applications, an indicator of the health of the overall ecosystem. The specific knowledge will enable Nokia's Content & Ecosystem Sourcing group to provide more input to developers on monetization approaches during the early stages of development, thereby increasing their chances of launching successful applications, ultimately helping the entire S40 ecosystem. / by Chengran Chai. / S.M. / M.B.A.