Gerry Yemen, E. N. Weiss, Paul J. Simko, Marc Modica
{"title":"Factory #539: China Star Technology Electronics Ltd. (A)","authors":"Gerry Yemen, E. N. Weiss, Paul J. Simko, Marc Modica","doi":"10.2139/ssrn.2974985","DOIUrl":"https://doi.org/10.2139/ssrn.2974985","url":null,"abstract":"With a cross-disciplinary perspective, this field-based case series uses the purchase of a manufacturing company based in China to set the stage for an analysis of cost accounting, operational effectiveness, and cross-cultural communication. It offers a discussion about the strategy to purchase a Chinese firm to enter a promising business line for the Chinese market and provides an opportunity to introduce basic accounting, management communication, and operational terms that can be explored in following classes. The material includes an overview of a partnership between a Westerner and two Chinese executives, the issues they discovered through due diligence, plans to break into a new market, and their efforts to communicate lean manufacturing principles in another language and culture. If possible, inviting colleagues from accounting, communications, or operations to jointly teach the class enriches the discussion and provides an integrated learning experience.The A case opens with an overview of the capacitor factory in the province of Henan, China that Peer Nielsen, Baocheng Yang, and Zhihong Li are thinking about purchasing. They discovered several issues: workers' wages had gone unpaid for months, payroll taxes were years in arrears, one of the company's most profitable production lines had been “rented out.” Not only were local competitors using its technology, some were producing the same capacitors under the China Star brand. Then there were the production lines that lacked raw materials and the huge unexplained power bill. But the political brass in the region was eager to see new owners purchase the factory with intent to manufacture and would provide the necessary permits and support to get started. Should the group buy it? \u0000 \u0000Excerpt \u0000 \u0000UVA-OM-1473 \u0000 \u0000Rev. Mar. 19, 2013 \u0000 \u0000Factory #539: China Star Technology Electronics Ltd. (A) \u0000 \u0000There was nothing straightforward about transforming a company—a lot of ins, a lot of outs. Over the years, Peer Nielsen, a skilled management and operational improvement consultant, had helped build new businesses and turn around failing ones. He had lived in Beijing and worked all over Asia since 2003. At a breakfast meeting in 2009 with Baocheng Yang, an alumnus from his alma mater, Nielsen was invited to look at a capacitor factory, China Star Technology Electronics Ltd., more than 450 kilometers (280 miles) away in the province of Henan. The factory presented a means of entering the growing capacitor market, which included the new development of supercapacitors. \u0000 \u0000A few days into their due-diligence trip, a clearer picture of the business developed. Aside from issues common to neglected or collapsed companies—not making any money, for one—several not-so-common issues surfaced. Workers' wages had gone unpaid for months, and payroll taxes were years in arrears. One of the company's most profitable production lines had been “rented out.” Not only were local competitors using its technology, some were act","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127964630","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Lean Thinking: Better Living Through Setup Reduction","authors":"E. N. Weiss, R. Goldberg, John Leschke","doi":"10.2139/ssrn.2975004","DOIUrl":"https://doi.org/10.2139/ssrn.2975004","url":null,"abstract":"This note reviews the effect setup time, batch size, and throughput time have on each other by providing everyday examples. \u0000 \u0000Excerpt \u0000 \u0000UVA-OM-1501 \u0000 \u0000Jul. 29, 2013 \u0000 \u0000LEAN THINKING: BETTER LIVING THROUGH SETUP REDUCTION \u0000 \u0000Lean transformation typically involves the reduction or elimination of inventory. In a given system, inventory can function as a hedge against demand variability, quality variability, or equipment malfunction. Inventory can also take the form of batches of work in progress. The smaller the batch, the more flexible and responsive a business can be. The “ideal” batch size is a single unit, but in practice, such batching tends toward prohibitive setup costs and insufficient output capacity. So the size of an optimal batch is inversely proportional to the cost and duration of its required setup. \u0000 \u0000For almost 100 years, the economic order quantity (EOQ) formula has been used to calculate a given batch's tradeoff between holding and setup costs. But in the 1940s, Taiichi Ohno, founder of the Toyota Production System, realized that reducing setup times by changing the system achieved better results than optimizing a system that may be inherently inefficient. As setup costs decline, so does EOQ; that is, if the goal is to reduce rather than optimize inventory, setup reduction can be viewed as an investment. \u0000 \u0000To understand setup reduction, one must understand the interaction of setup time, batch size, and value delivery. \u0000 \u0000. . .","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128180978","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Living Lean: Jackson and Wyatt Learn to Share","authors":"R. Goldberg, E. N. Weiss","doi":"10.2139/ssrn.2974978","DOIUrl":"https://doi.org/10.2139/ssrn.2974978","url":null,"abstract":"This case is part of the \"Living Lean\" series, which presents accessible, everyday scenarios for a Lean process-improvement journey. In this episode on process analysis, a working mom helps her two boys devise a process for resolving disputes. \u0000 \u0000Excerpt \u0000 \u0000UVA-OM-1464 \u0000 \u0000Rev. Nov. 26, 2013 \u0000 \u0000Living Lean: JACKSON AND WYATT LEARN TO sharE \u0000 \u0000Rebecca, a 2003 graduate of the MBA program at the Darden School of Business, had two boys: Jackson, who was eight years old, and Wyatt, who was six years old. The two brothers were kids with tons of enthusiasm. They worked hard in school and played equally hard at home. After returning from after-school care in the evenings, they practiced various martial arts skills together for hours. \u0000 \u0000Often, the boys both wanted to do the same thing at the same time, whether it was resting in the hammock, playing with a basketball, or drawing with a particular green marker. After a few shouts of “Mine!” and “No, I want it!” one boy would escalate the altercation by practicing a martial arts skill a little too hard. As a result, Rebecca frequently found herself settling disputes that she felt they ought to resolve independently. \u0000 \u0000Illustrations by Michael Twery. \u0000 \u0000. . .","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121730067","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Commerce Tavern","authors":"Sherwood C. Frey, P. E. Pfeifer","doi":"10.2139/ssrn.2975071","DOIUrl":"https://doi.org/10.2139/ssrn.2975071","url":null,"abstract":"The owner of the Commerce Tavern is considering the possibility of changing his long-standing policy of not accepting credit-card charges from his clients. His decision is complicated by the presence of two key uncertainties: a contingent bank-fee schedule and several nonquantifiable effects. The case can serve to reinforce the tools of decision analysis, discounted cash flows, and sensitivity analysis and to explore the role of decision analysis in the decision-making process. \u0000Excerpt \u0000UVA-QA-0459 \u0000THE COMMERCE TAVERN \u0000H. Franklin Nilson sipped on a tankard of ale and surveyed the guests in the Lounge of the Commerce Tavern. As usual, the room was filled, and Nilson was pleased to see that everything was running smoothly. His staff had no particular problems in handling the full house—an empty table at the Commerce was a rarity. Ever since its opening in 1982, Nilson's establishment had enjoyed all the business it could handle. Even though it was mid-October, Nilson was content in the knowledge that the Commerce was booked solid, straight through the holiday season. The first available reservation was for mid-January. \u0000Nilson's thoughts this particular evening drifted to his recent conversation with Anne Hamlet of the Virginia Merchants Bank (VMB). Over the past several weeks, Hamlet had been providing Nilson with information regarding the potential acceptance of credit cards at the tavern. The Commerce Tavern had never accepted credit cards, personal checks, or house charges. Nilson often wondered if this cash-only policy hurt his business. He had been pleasantly surprised to learn that Hamlet and VMB were quite willing to authorize the Commerce to honor MasterCard and Visa credit cards. He also realized that, if this change in credit policy were to be attractive, the fees levied by VMB would have to be made up by increased business. Nilson always struggled with decisions like this one and, as he returned to his ale, he decided to think about it later. \u0000The Tavern \u0000For over a decade, the Commerce Tavern had enjoyed the reputation of being one of the finest colonial cuisine restaurants in Colonial Williamsburg. Located in Merchants Square, a business and shopping district at the west end of Duke of Gloucester Street, the tavern was adjacent to the Historic Area but technically outside it. Even so, Merchants Square was a stop on the free bus route through Colonial Williamsburg. \u0000. . .","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"16 7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134291203","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Connecting the Dots at Microsoft: Global Planning for a Local World (a)","authors":"Jeremy Hutchison-Krupat, Jenny Craddock","doi":"10.2139/ssrn.2975040","DOIUrl":"https://doi.org/10.2139/ssrn.2975040","url":null,"abstract":"This case is set on the verge of Microsoft initiating a TV white-space pilot in the Philippines in the summer of 2013; the uncertainty surrounding the new technology's performance in the region provides a view of the risks organizations face early on in the innovation process, particularly when decisions are decentralized and overseen at a local level. MS and its public partners in the Philippines were excited about the possibility of setting up the country's first TV white space-enabled broadband network in a remote area that required the connectivity for fisher registrations and government biodiversity initiatives. The technology had proven its success in a few other pilots in Singapore and the UK. In the Philippines, however, risks loomed. Unprecedented complications from an untested hardware supplier and a lack of an essential database arose as the launch date approached. A key decision MS had to make was whether to proceed with the pilot or focus on TV white space pilots elsewhere. The case introduces students to methods through which they can identify the sources and types of uncertainty associated with a project. Through this they can better evaluate the tradeoff between undertaking a project with a high risk of failure and the benefits that could be obtained through learning about unknown unknowns within such a setting despite the outcome. Moreover, students uncover the necessary conditions for projects to achieve their objectives within this setting. The public-private partnership setting allows students to analyze the type of uncertainty associated with a project; the project, product, and organizational complexity; stakeholder objectives; and discuss the role escalation of commitment could play when an organization seeks to pilot a new technology. \u0000 \u0000Excerpt \u0000 \u0000UVA-OM-1560 \u0000 \u0000Jan. 30, 2017 \u0000 \u0000Connecting the Dots at Microsoft: Global Planning for a Local World (A) \u0000 \u0000In the summer of 2013, Paul Garnett, then the director of the Technology Policy Group (TPG) at Microsoft (MS) Research at the company's headquarters in Redmond, Washington, was in the process of reviewing a TV white-space (TVWS) project in the archipelago country of the Philippines. Garnett and his entire team at MS had long been hopeful about the prospects of this groundbreaking technology as a means of creating affordable broadband networks, but their efforts to pilot the technology were anything but standardized. \u0000 \u0000Despite the excitement surrounding the potential to develop a broadband network in a largely unconnected country, a number of items remained open for MS. Garnett questioned whether MS was targeting the best opportunity to pilot the technology in the remote Western Pacific nation. Did the value it could gain outweigh the challenges? Beyond the prospect of an unknown radio supplier and a nonexistent database, Garnett was keenly aware of the criticality of testing the technology in various environments, with new partners, to foster the technology's global diffus","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"75 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133402334","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Corning Incorporated: Accelerating 160 Years of Innovation","authors":"Timothy M. Laseter","doi":"10.2139/ssrn.2975012","DOIUrl":"https://doi.org/10.2139/ssrn.2975012","url":null,"abstract":"Corning had just announced an across-the-board restructuring in anticipation of revenue and margin pressures in multiple segments. Corning's R&D budget clearly contained languishing projects that should be disbanded, but its portfolio undoubtedly also contained some blockbuster businesses that would allow the Fortune 500 company, founded in 1851, to flourish for another 160 years. \u0000 \u0000Excerpt \u0000 \u0000UVA-OM-1510 \u0000 \u0000Rev. May 19, 2014 \u0000 \u0000CORNING INCORPORATED: ACCELERATING 160 YEARS OF INNOVATION \u0000 \u0000Less than six months into his new role as innovation officer for Corning Incorporated, Marty Curran was worried. His previous role, as manager of Corning's global optical-fiber business, had been simple in comparison. He had taken the job well aware of the broad scope of Corning's technology expertise, but Curran found the sheer number of technologies in various stages of development disconcerting. \u0000 \u0000Corning had just announced an across-the-board restructuring in anticipation of revenue and margin pressures in multiple segments. Corning's R&D budget clearly contained languishing projects that should be disbanded, but its portfolio undoubtedly also contained some blockbuster businesses that would allow the Fortune 500 company, founded in 1851, to flourish for another 160 years (Exhibit 1). But despite Corning's history of breakthrough innovation, Wall Street still discounted investment in technology. Curran remembered a lesson he had learned many years ago: an invention must be commercialized to be an innovation. \u0000 \u0000As Curran thought about the challenges he faced, he also recalled his meeting six months earlier with Corning CEO Wendell Weeks. In appointing him to the new position, Weeks had tasked Curran to lead “an entrepreneurial-focused organization that would operate across all business segments to identify and develop near-term revenue opportunities.” Weeks also charged Curran with “streamlining the innovation process and creating faster product development and speed to market.” Cutting to the chase, Weeks said, “I don't need you to hit a bunch of home runs…but you do have to help our R&D investment in start-up programs stop hurting so much.” \u0000 \u0000. . .","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116165332","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Process Capability: Practice Problems","authors":"E. N. Weiss","doi":"10.2139/ssrn.2974998","DOIUrl":"https://doi.org/10.2139/ssrn.2974998","url":null,"abstract":"This case contains four practice problems to help develop student understanding of process capability. \u0000 \u0000Excerpt \u0000 \u0000UVA-OM-1492 \u0000 \u0000Rev. Mar. 18, 2013 \u0000 \u0000PROCESS CAPABILITY: PRACTICE PROBLEMS \u0000 \u00001. A supplier makes packaging cartons for a customer, with a length normally distributed around a mean of 150 mm. Due to the cavity in the filling machine, the carton must be no longer than 157 mm and no shorter than 143 mm. The process standard deviation is 2.5mm. \u0000 \u0000a. What is the process capability (Cp)? \u0000 \u0000b. Use NORMSDIST in Excel to calculate the percent defects of the process. \u0000 \u0000. . .","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"473 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128234724","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Living Lean: Peter Goes Shopping","authors":"E. N. Weiss, Peter Wilbert, R. Goldberg","doi":"10.2139/ssrn.2974976","DOIUrl":"https://doi.org/10.2139/ssrn.2974976","url":null,"abstract":"This case is part of the \"Living Lean\" series, which presents accessible, everyday scenarios for a Lean process-improvement journey. In this episode on optimal reorder quantities, an unemployed procurement manager enlists the support of a neighbor as he applies Lean principles to household purchasing habits. \u0000 \u0000Excerpt \u0000 \u0000UVA-OM-1462 \u0000 \u0000Rev. Nov. 15, 2013 \u0000 \u0000Living Lean: Peter Goes Shopping \u0000 \u0000Peter Orville was a Darden MBA for Executives student who was currently between roles. Previously, he had been an operations and logistics manager for a Dallas-based hardwood lumber, millwork, and flooring supplier. In this role, he had negotiated the procurement of a variety of resources. He enjoyed the process of establishing optimal reorder quantities as well as those aspects of his job that allowed him to establish and improve upon processes. His motto while on the job was always that of a gemba-walk proponent: “Go and see,” he'd say. He believed that it was only by personally observing and dissecting each aspect of a critical business process that he could truly eliminate wasteful or duplicative activities and optimize any given process in the service of a particular business goal. \u0000 \u0000Lately, Peter had been spending a good part of each day sending out his resume and communicating within his professional network, but he still had plenty of time to glance around at the workings of his own household. Due to the fact that he was between jobs, he and his wife, Mary, had shifted to cost-cutting mode in an effort to maintain their standard of living. Peter, therefore, had both the opportunity and the motivation to streamline and optimize the ways in which he and Mary purchased and used consumable goods. He considered this project not only necessary from a financial standpoint but also a way to exercise his professional skills. No sense in allowing my game to slip, he thought to himself. \u0000 \u0000One morning midweek, Peter was pulling several recycling containers out to the curb when he ran into his neighbor, Paul Wright, who was hauling his green bins out to the street at the same time. Paul was a consultant for a restructuring firm that helped streamline companies' operations while they were under bankruptcy protection. He didn't deal primarily with the financial underpinnings of a company; instead, he worked to improve operational efficiency where needed and appropriate for the bankruptcy workout plan. He was between assignments at the moment, as well, and preparing to head to Shanghai the following week to assist with a multinational-company project there. Today, however, he was simply carting his recycling out to the curb like every other suburbanite. \u0000 \u0000. . .","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"96 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128603654","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Business Process Mapping: The Darden School Mailroom","authors":"R. Landel, A. Snyder","doi":"10.2139/ssrn.2974963","DOIUrl":"https://doi.org/10.2139/ssrn.2974963","url":null,"abstract":"The Darden School mailroom and the activities of its manager are analyzed using process mapping and waste identification tools. The note illustrates how one can observe and analyze a process for which opportunities to create process maps, evaluate waste and savings potential, and create stakeholder buy-in for improvements are identified. Lean tools discussed include process flowcharts, SIPOC, seven waste analyses, and stakeholder engagement. Students who undertake their own process mapping projects should complete a report similar to what was created for the Darden School mailroom. \u0000Excerpt \u0000UVA-OM-1444 \u0000Jul. 12, 2011 \u0000BUSINESS PROCESS MAPPING: THE DARDEN SCHOOL MAILROOM \u0000The purpose of this technical note is to document and illustrate by way of a process map the daily responsibilities and tasks performed by David Davis, head of the Darden Graduate School of Business Administration mailroom. A process map allows us to observe and analyze a process in order to create process flowcharts for evaluating waste and savings potential and identifying the improvements needed to increase stakeholder buy-in. This note is appropriate for anyone undertaking a process mapping activity for the first time or who wants to learn from examples of good mapping practice. \u0000Process mapping is a visualization tool that is relatively easy to apply and can help multiple parties arrive at a common understanding of existing process flows while stimulating fact-based improvement conversations. The technical note “Business Process Mapping” (OM-1423) provides helpful instructions, guidelines, and examples of the mapping tools used in the Darden School mailroom study. This note includes five exhibits regarding the Darden School mailroom: \u0000· Process flowcharts (Exhibit 1) \u0000. . .","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131246490","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Pediatric Emergency Department at Lynchburg General Hospital","authors":"E. N. Weiss, R. Goldberg, C. Thomson","doi":"10.2139/ssrn.2975018","DOIUrl":"https://doi.org/10.2139/ssrn.2975018","url":null,"abstract":"The emergency department (ED) at Lynchburg General Hospital (LGH) was operating at well over its capacity, and too many patients were leaving without being seen by a doctor. Chris Thomson, chairman and medical director of the LGH-ED, was charged with bringing the numbers back on track, and he began by ramping up the ED's Lean program. Thomson and the ED's new process engineer, Jennifer Stowers, set out to enhance quality, service, and efficiency while standardizing and streamlining all processes to make the ED more efficient in every way. They also felt strongly that creating a new pediatric ED would be beneficial. But would the hospital as a whole be receptive to the changes Thomson and Stowers were proposing? This case has been used in Darden's course elective “Management of Service Operations.” \u0000Excerpt \u0000UVA-OM-1523 \u0000Jan. 27, 2015 \u0000A Pediatric Emergency Department at Lynchburg General Hospital \u0000The emergency department (ED) at Lynchburg General Hospital (LGH) was the primary site where Centra Emergency Services Group (CESG) practiced. CESG was an employed-physician group comprising roughly 40 emergency-medicine physicians and 15 advanced-practice professionals. In 2010, when he was promoted to chairman and medical director of the LGH-ED, Chris Thomson, MD, would oversee system-wide emergency services at both LGH and Southside Community Hospital (SCH) in Farmville, Virginia. \u0000The LGH-ED serviced around 95,000 patients per year, and SCH-ED around 30,000 patients, bringing the combined total to 125,000 ED visits per year. The two EDs recorded $ 217million in charges and $ 89 million in collections annually. Thomson was charged with enhancing quality, service, and efficiency while standardizing all processes during an important transition from a single-hospital practice to a multisite practice serving an integrated hospital system. Exhibit 1 provides details about LGH. \u0000Prior to 2007, CESG was a democratic, independent physician practice called Lynchburg Emergency Physicians (LEP), but in 2007, LEP was dissolved and the physicians became employees of Centra Health. CESG spent the years 2007 to 2010 transitioning to this new employment model. Once the model was stable, attention turned to developing the system-wide, multisite practice. Integrating the groups, processes, and physician standards was part of the challenge that Thomson took on in 2010. \u0000. . .","PeriodicalId":121773,"journal":{"name":"Darden Case: Business Communications (Topic)","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130022119","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}