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    HBP - Value Champion - Information - 2

    Uploaded by

    Akshaya Lakshminarasimhan

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    HBP - Value Champion - Information - 2

    Uploaded by

    Akshaya Lakshminarasimhan
    542 views3 pages

    Original Title

    HBP - Value Champion_ Information_2

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    542 views3 pages

    HBP - Value Champion - Information - 2

    Uploaded by

    Akshaya Lakshminarasimhan

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    10/12/2020 HBP - Value Champion: Information

    Learn about your company and mission

    Special Instructions for This Round


    In this round, you will be able to make even more decisions about purchasing and delivery,
    enhancements to your production process, and additional features for the shoes. The profit
    you earn in this round will determine your standing relative to other project managers.

    About SmartShoe
    SmartShoe, a division of Modern Champion Apparel, is a medium-sized shoe manufacturer
    that makes a variety of private-label footwear. It sells its shoes to retail chains, which then
    place their own in-house brand name on them. SmartShoe specializes in technology-
    enabled shoes that track an athlete’s speed and overall performance using a microchip in
    the sole of each shoe. A few things to note about the company’s process:

    SmartShoe uses a labor-intensive, four-step shoe assembly process, in which the


    amount and quality of the shoes assembled depends on both the employees assigned
    to perform each step and the quality of the materials used. There is a $2,000 per week

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    10/12/2020 HBP - Value Champion: Information

    cost to use the factory equipment. The cost for each assigned employee varies based
    on their skill level and length of employment.
    SmartShoe can add di erent features to its shoes, such as appearance enhancements,
    personalized customizations, or accessories that improve the shoes’ wear-ability.
    After shoes are assembled and inspected, they are shipped to retail chains. SmartShoe
    can either ship orders to the chains in batches or ship entire orders all at once.

    Your Mission
    You have just earned a promotion and are now a special project manager at SmartShoe. One
    of your largest retail customers, AllStar Sports, is running a football (soccer) shoe promotion
    in three months and needs a very large order of technology-enabled football shoes delivered
    no later than 10 weeks from today. The factory will not produce any new shoes after the
    deadline; so any excess materials will be a sunk cost. The special order is so large that no
    one company can fill the order, so they asked several private-label shoe manufacturers,
    including SmartShoe, to deliver as many shoes as possible.

    The contract terms for the order have a variety of important specifications:

    The price paid per shoe is determined by the shoe’s quality and features, so better
    quality and more features will lead to a higher price paid per shoe.
    The price paid for any shoes received after the 10-week deadline will be reduced by
    20%. You must allow half a week for inventory delivery and another half a week for final
    product shipping, leaving nine weeks for SmartShoe to produce the order.
    The materials used to create shoes are not re-usable once a shoe style leaves
    production. Only order as much inventory as you can reasonably expect to use during
    your nine-week production period.

    Your goal is to maximize the profit SmartShoe will earn from this special order. You will
    make decisions regarding the number of shoes to produce for the special order, material
    quality, which employees will perform assembly steps, delivery frequency, and what features
    to include.

    As you are new to your role, you will have two opportunities to produce the special order.
    Round 1 is a practice round that allows you to learn about SmartShoe’s assembly and
    delivery processes; Round 2 provides more buying, delivery, and manufacturing choices.

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    10/12/2020 HBP - Value Champion: Information

    VISIT THE WAREHOUSE

    CAN'T SUBMIT DECISIONS YET

    You must complete worker assignments in the Factory before submitting.

    © 2018 Harvard Business Publishing Credits


    Developed in partnership with

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