The second Case Study is based on Carestream Health Inc.: When Disruption Hits a Lean Supply Chain, found in your HBSP Coursepack. You must purchase the case study. 1. Analyze the company using the information from the case study and also from online sources. 2. Review the companys business and competitors. Were other companies affected by the strike? 3. Was the company affected by the dock strikes last year? Has the company been affected by Covid-19? What happened? 4. What causes variation in the companys supply chain? 5. What were the managerial problems caused by the labor strike? What are the companys options? What is the feasibility of those options? Provide your reasoning. 6. If you were a manager in the meeting how would you decide when to use airfreight and how would you calculate the relative cost of airfreight vs. regular transport? I need answer of all quest by today please Operational management is my subject (MBA)

is there any option to add a PDF file?

M OPMT cases - Carestream He X Case Study 2 R X Document 5.d x namratha oil C The Second C= x Carestream-Sux G xiamen - Goo + ... C File C:/Users/WALMART/Downloads/7f7c199c-6e46-48d1-a74f-c272c537f76c.pdf Apps Smartphone addicti... Book Review: Nine... S Sanam Teri Kasam (... RM Constructivism Res... III. Convert HTML to P... S Test-Bank-for-Heize... Carestream Health Inc.: When Disruption Hits a Lean Supply Chain 1/6 In mid-October 2014, YJ Yang, Asia Pacific Lean Six Sigma director at Carestream Health Inc. (CHX) in Xiamen, was surprised when his colleague and long-time friend Yi Zheng, logistics manager, declared, We are in trouble now!" Zheng had just received an email from Carestream Health Inc.'s (Carestream) U.S. subsidiary indicating that wide rolls of film, a key material needed for CHX production, would not arrive on time due to a labour dispute in the U.S. West Coast ports. Such a delay would lead to a shortage of raw materials, which would turn into a backlog of CHX deliveries to its customers. We must look for some countermeasures immediately," said Zheng. Yang knew about the labour dispute and its disruptive impact to transportation out of the United States. He knew that this backlog would be a test for CHX's lean supply chain, something that he had never encountered before. CARESTREAM HEALTH INC. (CARESTREAM) Carestream was a medical devices manufacturer that was founded in 2007 by Onex Inc. after the acquisition of Eastman Kodak's Medical Imaging Group. With about 50 per cent market share, Carestream became the world leader in X-ray film production, a significant segment of the medical devices industry. CHX was a wholly-owned subsidiary of Carestream and mainly supplied the Asia-Pacific market, which was growing at a rate of 10 per cent per year. CHX's revenues were expected to exceed #2 billion in 2014 (see Exhibit 1). -- CHX had been vigorously implementing lean production since 2007. Yang, who was the head of Kodak's lean manufacturing office before his tenure at Carestream, had led his team in learning lean production principles from Taiwanese and Japanese experts. At that time, the outside lean consultants taught only some basic lean principles and were not providing solutions directly; instead, the consultants suggested Yang and his team look for the solutions by themselves with guidance from the experts. This approach raised more challenges for the team and also provided more opportunities for the team to be creative and innovative. + 1 * = RMB = China yuan renminbi; all currency amounts are in unless otherwise specified; 1 = CA$0.12 in October 2014. Type here to search ^ Da C) ENG 12:08 AM 2020-06-14 M OPMT cases - Carestream Hex Case Study 2 Document 5.d X namratha oil C The Second C= x Carestream-Sux G Xiamen - Good + ... C File C:/Users/WALMART/Downloads/7f7c199c-6e46-48d1-a74f-c272c537f76c.pdf Apps Smartphone addicti... Book Review: Nine... S Sanam Teri Kasam (... RM Constructivism Res... III. Convert HTML to P... S Test-Bank-for-Heize... Carestream Health Inc.: When Disruption Hits a Lean Supply Chain 2/6 Over the years, Yang and his team had accumulated a rich experience in lean production and established a lean production system for CHX. To achieve the operational objectives of zero-accident safety, zero-defect quality, lowest cost, 100 per cent on-time delivery, and 100 per cent staff participation, CHX conducted on-time and automated production through standardized operations, on-site improvement activities, six sigma activities, stabilized operations, and leveled operations. As a result of these lean management efforts, CHX operations received numerous accolades in 2013including a membership in top 10 industrial enterprises in Xiamen and the top 300 industrial enterprises in the province of Fujian. CARESTREAM HEALTH INC. (XIAMEN) (CHX) SUPPLY CHAIN Wide rolls of film were supplied by Carestream's U.S. facilities located in Rochester, New York; Windsor, Colorado, and White City, Oregon, each using a high quality patented film coating. CHX was a large buyer of the film produced in Carestream's U.S. facilitiesCHX's wide roll needs accounted for about 80 per cent of Carestream's U.S. production. Different sizes of wide rolls were shipped to Xiamen to be cut and finished into different dimensions of films ready for use in hospitals and clinics (see Exhibit 2). The finished goods were sold to the agents and end-user hospitals and clinics through an internal trade company Carestream Health Asia Pacific (see Exhibit 3). Due to the continuous improvements and creative solutions from lean management, CHX maintained the inventory of wide rolls at a low level; its "days in supply inventory (DSI) was less than 50 daysthat was the time spent by a wide roll in the entire supply chain. In other words, a wide roll leaving the U.S. supplier took 50 days to be received at CHX, processed, delivered, and paid for by customers. -- + To be specific, a wide roll leaving the Windsor, Colorado, facility took eight days of ground transportation (a mix of trucking and rail) to get to one of the West Coast ports. The maritime transportation portion of the supply chain (including the port's operations) was estimated at 17 days with an additional four days to clear all of the custom requirements in Xiamen. Overall, the time between Windsor, Colorado, and the CHX plant was estimated to be a minimum 22 days with an additional variation of seven days on average. Because of this variability, about two days' worth of supplies were kept as a buffer at CHX. To turn a wide into a packaged finished product, including the time in inventory, generally took about 10 days. The time to distribute the product and to receive the payment from the customers accounted for Type here to search gi ^ Da C) ENG 12:08 AM 2020-06-14 M OPMT cases - Carestream He X Case Study 2 RX Document 5.d x namratha oil C The Second CX Carestream-Sux G Xiamen - Goo + ... C File C:/Users/WALMART/Downloads/7f7c199c-6e46-48d1-a74f-c272c537f76c.pdf Apps Smartphone addicti... Book Review: Nine... S Sanam Teri Kasam (... RM Constructivism Res... III. Convert HTML to P... S Test-Bank-for-Heize... Carestream Health Inc.: When Disruption Hits a Lean Supply Chain 2/6 In recent years, CHX had extended its lean management expertise to its supply chain. Both raw material and product inventories were maintained at a low level. The movement of goods was stabilized through connecting flows, meaning that the orders to the U.S. facilities were leveled and coordinated with the CHX leveled production. Multiple visual cues related to the upstream flows were updated daily and allowed management to pinpoint problems quickly. In reality, CHX worked to smooth (or level) the production at its plant and established a pace with relatively constant order size, which helped the upstream U.S. facilities to avoid peaks and valleys in the wide rolls demand. As Zheng put it: Over recent years, we have established the leveling mechanism which is key for stabilization. The material flow has been pulled by using a kanban system, and the upstream and downstream fluctuations have been absorbed by a certain level of inventorythe buffer." Unfortunately, such a system was greatly affected by the labour dispute in the U.S. West Coast ports. 2 Kanban is an inventory scheduling management tool based on visuals that helps to replenish materials only when needed; consequently, this approach helps in the JIT efforts. This document is authorized for use only by Leo Joenoes in OPMT 620 Spring 2020 A taught by LARRY EARNHART, University Canada West from Apr 2020 to Oct 2020. For the exclusive use of L. Joenoes, 2020. -- Page 3 9B19D023 + LABOUR DISPUTE IN THE U.S. WEST COAST PORTS The labour dispute with the dock workers in October 2014 affected the ports on the U.S. West Coast, including Long Beach, Los Angeles, Seattle, Oakland, and 29 others. Those ports were handling half the U.S. business exporting and importing by sea, which represented more than 70 per cent of goods imported Type here to search ^ Da C) ENG 12:09 AM 2020-06-14 M OPMT cases - Carestream Hex Case Study 2 Document 5.d x namratha oil C The Second C= x Carestream-Sux G Xiamen - Good + ... C File C:/Users/WALMART/Downloads/7f7c199c-6e46-48d1-a74f-c272c537f76c.pdf Apps Smartphone addicti... Book Review: Nine... S Sanam Teri Kasam (... RM Constructivism Res... III. Convert HTML to P... S Test-Bank-for-Heize... Carestream Health Inc.: When Disruption Hits a Lean Supply Chain 3/6 the stable supply of wide rolls developed in recent years appeared to be uncertain (see Exhibit). In addition to the challenge brought on by the labour dispute in the United States, the timing was not ideal as it was coinciding with higher demand from external downstream supply chain entities such as the agents and the end users. Over the past years, Cold Spring Harbour (CSH) Asia (the distribution arm of Carestream in East Asia) experienced higher than normal demand for X-rays as agents tried to achieve their yearly goals. Agents and hospitals also wanted to build inventory before the Spring Festival holidays. If Carestream ran out of film supply, competitors like Fuji and Agfa would have an opportunity to increase their market share-a highly undesirable scenario for Carestream. As the shortage of raw materials had the most impact on production, WL Zhao, the production manager commented: We thought lean production was the right way for us in the past; however, I have a little bit [of] concern now. Is it the appropriate way to maintain such a low inventory, which has led the supply chain to be very weak in response to the external crisis? Do we shoot ourselves in the foot? Besides, the capacity of our production line has reached [a] maximum of 90 per cent; there's not much more potential for further development. What shall we do now? NT Luo, the quality manager proposed: "Can we transport the wide rolls by air? As far as I have known, we could get the wide rolls in no more than one week by airfreight." 3 Andrew Soergel, "Economy Still Reeling from West Coast Slowdown," U.S. News and World Report, February 23, 2016, accessed October 3, 2019, www.usnews.comews/articles/2016-02-23/a-year-later-west-coast-labor-disputes-cost-still- unresolved. -- This document is authorized for use only by Leo Joenoes in OPMT 620 Spring 2020 A taught by LARRY EARNHART, University Canada West from Apr 2020 to Oct 2020. + For the exclusive use of L. Joenoes, 2020. Type here to search AU () ENG 12:09 AM 2020-06-14 M OPMT cases - Carestream He X Case Study 2 R X Document 5.d x namratha oil C The Second C= x Carestream-Sux G xiamen - Goo + ... C File C:/Users/WALMART/Downloads/7f7c199c-6e46-48d1-a74f-c272c537f76c.pdf Apps Smartphone addicti... Book Review: Nine... S Sanam Teri Kasam (... RM Constructivism Res... III. Convert HTML to P... S Test-Bank-for-Heize... Carestream Health Inc.: When Disruption Hits a Lean Supply Chain 1/6 In mid-October 2014, YJ Yang, Asia Pacific Lean Six Sigma director at Carestream Health Inc. (CHX) in Xiamen, was surprised when his colleague and long-time friend Yi Zheng, logistics manager, declared, We are in trouble now!" Zheng had just received an email from Carestream Health Inc.'s (Carestream) U.S. subsidiary indicating that wide rolls of film, a key material needed for CHX production, would not arrive on time due to a labour dispute in the U.S. West Coast ports. Such a delay would lead to a shortage of raw materials, which would turn into a backlog of CHX deliveries to its customers. We must look for some countermeasures immediately," said Zheng. Yang knew about the labour dispute and its disruptive impact to transportation out of the United States. He knew that this backlog would be a test for CHX's lean supply chain, something that he had never encountered before. CARESTREAM HEALTH INC. (CARESTREAM) Carestream was a medical devices manufacturer that was founded in 2007 by Onex Inc. after the acquisition of Eastman Kodak's Medical Imaging Group. With about 50 per cent market share, Carestream became the world leader in X-ray film production, a significant segment of the medical devices industry. CHX was a wholly-owned subsidiary of Carestream and mainly supplied the Asia-Pacific market, which was growing at a rate of 10 per cent per year. CHX's revenues were expected to exceed #2 billion in 2014 (see Exhibit 1). -- CHX had been vigorously implementing lean production since 2007. Yang, who was the head of Kodak's lean manufacturing office before his tenure at Carestream, had led his team in learning lean production principles from Taiwanese and Japanese experts. At that time, the outside lean consultants taught only some basic lean principles and were not providing solutions directly; instead, the consultants suggested Yang and his team look for the solutions by themselves with guidance from the experts. This approach raised more challenges for the team and also provided more opportunities for the team to be creative and innovative. + 1 * = RMB = China yuan renminbi; all currency amounts are in unless otherwise specified; 1 = CA$0.12 in October 2014. Type here to search ^ Da C) ENG 12:08 AM 2020-06-14 M OPMT cases - Carestream Hex Case Study 2 Document 5.d X namratha oil C The Second C= x Carestream-Sux G Xiamen - Good + ... C File C:/Users/WALMART/Downloads/7f7c199c-6e46-48d1-a74f-c272c537f76c.pdf Apps Smartphone addicti... Book Review: Nine... S Sanam Teri Kasam (... RM Constructivism Res... III. Convert HTML to P... S Test-Bank-for-Heize... Carestream Health Inc.: When Disruption Hits a Lean Supply Chain 2/6 Over the years, Yang and his team had accumulated a rich experience in lean production and established a lean production system for CHX. To achieve the operational objectives of zero-accident safety, zero-defect quality, lowest cost, 100 per cent on-time delivery, and 100 per cent staff participation, CHX conducted on-time and automated production through standardized operations, on-site improvement activities, six sigma activities, stabilized operations, and leveled operations. As a result of these lean management efforts, CHX operations received numerous accolades in 2013including a membership in top 10 industrial enterprises in Xiamen and the top 300 industrial enterprises in the province of Fujian. CARESTREAM HEALTH INC. (XIAMEN) (CHX) SUPPLY CHAIN Wide rolls of film were supplied by Carestream's U.S. facilities located in Rochester, New York; Windsor, Colorado, and White City, Oregon, each using a high quality patented film coating. CHX was a large buyer of the film produced in Carestream's U.S. facilitiesCHX's wide roll needs accounted for about 80 per cent of Carestream's U.S. production. Different sizes of wide rolls were shipped to Xiamen to be cut and finished into different dimensions of films ready for use in hospitals and clinics (see Exhibit 2). The finished goods were sold to the agents and end-user hospitals and clinics through an internal trade company Carestream Health Asia Pacific (see Exhibit 3). Due to the continuous improvements and creative solutions from lean management, CHX maintained the inventory of wide rolls at a low level; its "days in supply inventory (DSI) was less than 50 daysthat was the time spent by a wide roll in the entire supply chain. In other words, a wide roll leaving the U.S. supplier took 50 days to be received at CHX, processed, delivered, and paid for by customers. -- + To be specific, a wide roll leaving the Windsor, Colorado, facility took eight days of ground transportation (a mix of trucking and rail) to get to one of the West Coast ports. The maritime transportation portion of the supply chain (including the port's operations) was estimated at 17 days with an additional four days to clear all of the custom requirements in Xiamen. Overall, the time between Windsor, Colorado, and the CHX plant was estimated to be a minimum 22 days with an additional variation of seven days on average. Because of this variability, about two days' worth of supplies were kept as a buffer at CHX. To turn a wide into a packaged finished product, including the time in inventory, generally took about 10 days. The time to distribute the product and to receive the payment from the customers accounted for Type here to search gi ^ Da C) ENG 12:08 AM 2020-06-14 M OPMT cases - Carestream He X Case Study 2 RX Document 5.d x namratha oil C The Second CX Carestream-Sux G Xiamen - Goo + ... C File C:/Users/WALMART/Downloads/7f7c199c-6e46-48d1-a74f-c272c537f76c.pdf Apps Smartphone addicti... Book Review: Nine... S Sanam Teri Kasam (... RM Constructivism Res... III. Convert HTML to P... S Test-Bank-for-Heize... Carestream Health Inc.: When Disruption Hits a Lean Supply Chain 2/6 In recent years, CHX had extended its lean management expertise to its supply chain. Both raw material and product inventories were maintained at a low level. The movement of goods was stabilized through connecting flows, meaning that the orders to the U.S. facilities were leveled and coordinated with the CHX leveled production. Multiple visual cues related to the upstream flows were updated daily and allowed management to pinpoint problems quickly. In reality, CHX worked to smooth (or level) the production at its plant and established a pace with relatively constant order size, which helped the upstream U.S. facilities to avoid peaks and valleys in the wide rolls demand. As Zheng put it: Over recent years, we have established the leveling mechanism which is key for stabilization. The material flow has been pulled by using a kanban system, and the upstream and downstream fluctuations have been absorbed by a certain level of inventorythe buffer." Unfortunately, such a system was greatly affected by the labour dispute in the U.S. West Coast ports. 2 Kanban is an inventory scheduling management tool based on visuals that helps to replenish materials only when needed; consequently, this approach helps in the JIT efforts. This document is authorized for use only by Leo Joenoes in OPMT 620 Spring 2020 A taught by LARRY EARNHART, University Canada West from Apr 2020 to Oct 2020. For the exclusive use of L. Joenoes, 2020. -- Page 3 9B19D023 + LABOUR DISPUTE IN THE U.S. WEST COAST PORTS The labour dispute with the dock workers in October 2014 affected the ports on the U.S. West Coast, including Long Beach, Los Angeles, Seattle, Oakland, and 29 others. Those ports were handling half the U.S. business exporting and importing by sea, which represented more than 70 per cent of goods imported Type here to search ^ Da C) ENG 12:09 AM 2020-06-14 M OPMT cases - Carestream Hex Case Study 2 Document 5.d x namratha oil C The Second C= x Carestream-Sux G Xiamen - Good + ... C File C:/Users/WALMART/Downloads/7f7c199c-6e46-48d1-a74f-c272c537f76c.pdf Apps Smartphone addicti... Book Review: Nine... S Sanam Teri Kasam (... RM Constructivism Res... III. Convert HTML to P... S Test-Bank-for-Heize... Carestream Health Inc.: When Disruption Hits a Lean Supply Chain 3/6 the stable supply of wide rolls developed in recent years appeared to be uncertain (see Exhibit). In addition to the challenge brought on by the labour dispute in the United States, the timing was not ideal as it was coinciding with higher demand from external downstream supply chain entities such as the agents and the end users. Over the past years, Cold Spring Harbour (CSH) Asia (the distribution arm of Carestream in East Asia) experienced higher than normal demand for X-rays as agents tried to achieve their yearly goals. Agents and hospitals also wanted to build inventory before the Spring Festival holidays. If Carestream ran out of film supply, competitors like Fuji and Agfa would have an opportunity to increase their market share-a highly undesirable scenario for Carestream. As the shortage of raw materials had the most impact on production, WL Zhao, the production manager commented: We thought lean production was the right way for us in the past; however, I have a little bit [of] concern now. Is it the appropriate way to maintain such a low inventory, which has led the supply chain to be very weak in response to the external crisis? Do we shoot ourselves in the foot? Besides, the capacity of our production line has reached [a] maximum of 90 per cent; there's not much more potential for further development. What shall we do now? NT Luo, the quality manager proposed: "Can we transport the wide rolls by air? As far as I have known, we could get the wide rolls in no more than one week by airfreight." 3 Andrew Soergel, "Economy Still Reeling from West Coast Slowdown," U.S. News and World Report, February 23, 2016, accessed October 3, 2019, www.usnews.comews/articles/2016-02-23/a-year-later-west-coast-labor-disputes-cost-still- unresolved. -- This document is authorized for use only by Leo Joenoes in OPMT 620 Spring 2020 A taught by LARRY EARNHART, University Canada West from Apr 2020 to Oct 2020. + For the exclusive use of L. Joenoes, 2020. Type here to search AU () ENG 12:09 AM 2020-06-14