Case Study: CRU Computer Rentals
The objective of this case is to illustrate how a business’s process flows can be analyzed to identify the key drivers of revenue and cost. As learners analyze the case, the key operational performance measures will be identified as flow time, throughput, inventory, and process cost.
The first three are linked through Little’s Law. This effectively leaves a manager with three independent process measures to consider. This case provides a setting in which these questions are answered.
- Which performance measures need improvement?
- Where to focus on?
- What will be the impact of the improvement on the bottom line of business?
This case analysis is composed of three sections. Learners should complete a template written in MS Excel spreadsheet after conducting a thorough review of the case scenario. Throughout the case analysis, learners should complete 10 sub tasks which facilitate the analysis and integration of the whole case study.
Section 1: Learners will capture the details of scenario and prepare the flow chart and metrics tables. Then, determine the profitability of the current process based on revenues earned and costs incurred. (Due by 3/20)
Section 2: Learners repeat the similar analysis in case demand drops and evaluate profitability of targeting the short-term market. (Due by 4/10)
Section 3: Learners will determine which options suggested by vice president of sales would be most profitable followed by overall analysis and integration of lessons learned. (Due by 5/1)
Learners will be presented with three separate templates. After analyzing and completing assigned tasks in each template, learners will submit three assignments.
Learners need to purchase the case article published by Kellogg School of Management. Current price is $4.25. Go to the link provided in this module and obtain the access to the article.