by: Izak Duenyas

Publication Date: April 12, 2012
Length: 6 pages
Product ID#: 1-429-240

Core Disciplines: Operations Management/Supply Chain

Partner Collection:

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Teaching Note

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This year, television service provider Oz TV’s financial figures are troubling, despite steady demand. Is operational performance hurting financial performance? Oz customers rent a set-top box when they buy their programming package. Set-top boxes drive Oz’s key performance indicator: utilization. Students examine Oz’s box-return process in order to discover the link between financial performance and operational flow measures.

Teaching Objectives

After reading and discussing the material, students should:

  • Define the process measures of flow time, inventory, and throughput rate.
  • Explain the link between financial measures and operational measures.
  • Use Little’s law to conduct a process flow analysis.