|
 In the late 1960's, Babcock and Wilcox already had more than 100 years experience with steam
boilers for marine propulsion and power generation. When the company entered the nuclear power
business, everything seemed to go wrong. The aftermath brought delivery delays, strikes,
lawsuits, red ink and a bizarre suicide. B&W even managed to create new competitors in a market
niche they had previously owned outright.
The conventional analysis of this classic case study brings forth a long laundry list of
management errors, mistakes and miscalculations. Yet, this seems improbable for such an
experienced and competent organization. How could they make so many mistakes in so many
different areas?
Wickham Skinner first used this example in his 1978 book, "Manufacturing in the Corporate
Strategy". He traced B&W's troubles to a single root cause: management had failed to identify
the "Key Manufacturing Task". Everything else
emanated from this simple omission.
This case study is an excellent way to introduce
Manufacturing Strategy to your
management team or classroom. It comes with notes on the most effective way to conduct the
discussion.
|
|
 
 Wickham
Skinner is considered the father of Manufacturing Strategy. His book "Manufacturing In
The Corporate Strategy", published in 1978, set out the principles that most other
work has been based. His seminal article "The
Focused Factory" was published in The Harvard Business Review in 1974 and is still
available from
Amazon.com.
Dr. Skinner, a graduate of Yale, was an emeritus professor at Harvard University,
where he taught and researched in the field of industrial management. In 1974 he was
elected the James E. Robison Professor and from 1974 to 1977 he served as Associate
Dean.
 
|
|
Nuclear Pressure Vessel
These vessels are very large and complex. They
require thousands of hours of skilled, certified welding.
|
|
