Assignment 2: Supply Chain Management at Cruise International, Inc.

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Bob Bristol, your boss at Cruise International, Inc., just called to tell you that he was impressed with your progress thus far in familiarizing yourself with operations at CII-both the strategic details pertaining to its mission, competitive priorities, etc. and the specific details concerning its services and processes. He tells you that, with all the buzz about supply chain management (SCM) that you hear these days, CII is actively interested in exploring how different SCM concepts and techniques could be used in their operations.

Maintaining an adequate, assured supply of a variety of mechanical equipment, entertainment equipment, retail merchandise, food products, and supplies for maintaining the ship is critical to CII. Meghan Willoughby, Chief Purser aboard the Friendly Seas I, has a couple of specific assignments that you will work on later. But for now, Meghan would like a concise research report for the top management team addressing SCM issues relevant to CII.

"Leila Jensen liked your write-up on the CII service package and delivery system. Meghan Willoughby wants you to prepare a similar report addressing SCM issues relevant to CII. Senior Administrators at CII are actively involved in exploring how SCM concepts and techniques could be adopted in their operations.

Prepare a concise report addressing the specific questions that Meghan has put together for you. I look forward to receiving your report, which I am sure will provide insight for SC applications at CII." Assignment Questions for Chapter 4.

1. Describe the essential concepts of SCM and explain to what extent SCM is applicable to a service operation such as CII.

2. Describe the use of the Internet as a means to exchange information and explain how CII could benefit from using the Internet.
3. Describe how partnering with some of its suppliers could benefit CII. What issues should CII consider when developing partnerships?
4. Consider the different activities or services in CII's supply chain. Describe which activities might be better outsourced than done internally by CII. Describe the key issues to consider before outsourcing a service or activity.

5. Purchasing, a major function in SCM, is critical in the cruise line industry. Given your fresh-fromschool perspective, describe the potential conflicts of interest or ethical issues facing the purchasing function.

Assignment 2: Project Management at Cruise International, Inc.

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Cruise International, Inc. wants to launch a new onboard telemedicine procedure and the project is time-critical. You need to provide project management assistance tom Susan Petersen in CII's Marketing Department as well as to Dr. Janelle Black at Corporate Medical Services. Comments from your meeting with Susan follow.

"Hello, I'm Susan Petersen. Here's the project I have in mind for you. We have a new telemedicine procedure ready to be introduced onboard our fleet of ships. This is part of CII's efforts to make passengers feel more comfortable with the onboard medical care and will be featured in our next publicity blitz. It is also much needed help that we have promised the medical personnel working onboard. The procedure requires the acquisition, installation, and marketing of a new telemedicine communications system.

Dr. Janelle Black is responsible for its implementation. She has given me a list of activities that need to be completed before the new system can be implemented. There are four stages:

1. develop the criteria and systems

2. write the simplified operating instructions for using the system

3. order the hardware to support the system

4. Install the system.

5. Training of staff

At that time, the training of the medical personnel needs to be completed. When the equipment has been installed onboard the Friendly Seas I and the medical personnel are sufficiently trained, we will have a four week test period before launching the new system and beginning installation in all of our ships. Take a look at Activities for Telemedicine System Implementation. "Since we are anxious for the project to be completed as soon as possible, we have the option of paying additional costs to speed up some of the activities. For example,
the normal time required for the communications contractor to finalize criteria can be reduced by one week at an additional cost of $1500. Another example is that equipment could be shipped by UPS Ground and save one week. This would cost an additional $2,000. Using FedEx would save two weeks but cost an additional $4,500. The training period for the nurses can be reduced by one week if Human Resources allows the nurses to work overtime at an additional cost of $1,200. For the criteria development, $3,500 in overtime can be saved if this activity is allowed to take five weeks to complete."

Assignment Questions :

1. Determine the absolute shortest length of time in which the telemedicine project can be completed if none of the activities are crashed.

2. Determine the shortest length of time the project can be finished if activities on the critical path are crashed.

3. Calculate the additional cost resulting from crashing all the activities possible.

4. Explain how you can minimize the additional cost of crashing the project while completing the project in the same amount of time as determined in question 2.