This article brings together the fields of action learning and operations strategy. It presents a case of action learning focused on strategic operations improvement in the extended manufacturing enterprise. As the third article in the set of explorations in this journal within the fields of action learning, operations strategy and collaborative improvement, it steps inside an inter-organisational action learning programme and exploits an operations strategy perspective on the improvement process and outcome. Through distinguishing between puzzles and problems, the article extends the scope of the operations improvement cycle and illustrates how the action learning approach can accommodate and enable engagement with the issues in potentially insightful practical and theoretical ways. (Contains 1 table.)