Assignment:
Questions:
Please answer the following questions in your presentation: All questions refer to the dry products side of SpA's supply chain.
Question 1: You cannot manage what you do not inspect. So before we begin our evaluation of the JITD program proposed by Maggiali let's inspect the SpA supply chain!
Please draw a "map" (schematic diagram) of Barilla SpA's supply chain. This diagram would fit somewhere between a process flow diagram and a value stream map. This question has four parts:
1. Based upon the information in this case only, add all the information to the diagram that you would think a responsible supply chain manager would require using this diagram to help analyze this supply chain. (For example number of sku's, inventory safety stock, etc.)
2. Utilizing the notes section of the slide, list the three most important items of information (not mentioned in Part 1 above) you think would be beneficial to assist a supply chain manager in evaluating this supply chain. So, what information is missing from the case that you would like to know so that you could analyze the case more fully? This situation happens all the time in industry!
3. Briefly (and the key word is briefly) explain why you would need this information from Part 2 of the question.
4. How might you actually obtain the information in Part 3?
Question 2: The case begins by stating that Giorgio Maggiali, Barilla's Director of Logistics, is concerned by the growing burden of demand fluctuations. Given that the consumer demand pattern for pasta in Italy is relatively constant (flat) with some slight seasonality for certain pasta types:
• Note that there are two parts to this question set. Your responses to each of the two questions should be brief, probably one slide at most for each question. These questions are meant as "warm-up" questions to help you get started in your analysis. As such, your responses should be fairly straightforward or obvious. In other words, it should not be necessary for you to probe deeply into the case details or readings for your response.
• However, your answers need to be complete; because, many times folks tend to only give a partial response to the question. For example---the first question says to "explain" ...thus this answer cannot just be the words "bullwhip effect."
1. Explain what Maggiali is referring to by the term "demand fluctuations"?
• Remember you cannot use the same word in your answer that is used in the question; for example, you cannot reuse the word "fluctuation."
2. How severe are these fluctuations in comparison to the consumer demand pattern (explain your opinion)?
• For the question on the severity of the fluctuations, look to develop and explain "quantitative measures" from information in the case that can support your response (some quantitative information is given in "Coordination in the Supply Chain," --if you use this information, then be sure to describe how it has been derived from the case).
• If your group does not find responses to these questions to be obvious, then please contact me immediately.
Question 3: Based upon Question 2 what type of goal (only one goal) would you set to improve the problem? Helpful Hint: Your team should consider some of the ideas discussed in SCM 801.
Question 4: Identify the most important underlying drivers or causes of the ordering pattern depicted in Exhibit 12. Please do not forget this part of the question.... explain how each cause identified contributes to the ordering pattern in Exhibit 12.
• The intent of this question is for you to probe the case for the underlying causes of the problems that the JITD program is designed to address.
• An average response will identify at least three underlying causes. A top-level response will identify at least five. Even though you actually could identify more, do not exceed five---I am looking for depth not a laundry list of items.
• Also, be sure to explain and make an argument justifying why or how each cause you select contributes to the demand fluctuation problems that JITD is intended to solve.
Question 5: Identify the principal categories of cost impacted by the order pattern shown in Exhibit 12. Describe how or why the order pattern impacts each of these particular cost categories. In your description make explicit use of evidence or data provided in the case and be clear about where in the production/distribution channel each cost is increasing.
• Note that you are not being asked to quantify the cost impact of the order pattern shown in Exhibit 12. Rather you are being asked to identify major cost categories affected by the order pattern and to describe the nature of this impact. For example, if inventory costs are affected by the order pattern, describe the type of inventory costs (ordering cost, holding cost, etc.) you are referring to and how such costs either rise or fall due to the order pattern.
• An average response will identify and describe at least two cost categories while a top-level response will identify and describe four cost categories and will demonstrate a supply chain perspective. Even though you actually could identify more, do not exceed four---I am looking for depth not a laundry list of items.
Question 6: Demand variation in Barilla's distribution channel is clearly imposing additional supply chain costs. Conceptually, what do YOU think of JITD as a mechanism for reducing these costs? You must take a stand --- start out your answer by either "Yes" you are for it or "No" you are against it.
• In responding to this question, consider who made replenishment decisions in the Barilla distribution channel prior to JITD and describe how this situation might change under JITD.
• Also, in answering the question, do not consider the implementation challenges associated with JITD. Instead, answer the question from the perspective of what JITD is designed to accomplish. The implementation challenges of JITD will be considered in subsequent questions.
Question 7: Implementation of a JITD system is always a cause for culture shock! Let's explore this idea. Within Barilla, the sales and marketing staff are significantly resistant to the JITD program. Identify and describe the primary underlying causes of this resistance. How might you mitigate the resistance?
• For this set of questions, be certain that you focus on conflicts or barriers internal to Barilla. Within Barilla, there are certainly differences of opinion on the way to solve the distribution challenges facing the company. For the first question, a useful starting point is to summarize these different perspectives.
• An average response will identify and describe the source of at least two underlying causes (not symptoms) of the internal conflicts. A top-level response will identify and explain the source of four underlying causes. Even though you actually could identify more, do not exceed four---I am looking for depth not a laundry list of items.
• When you respond to mitigating the resistance to JITD we are not looking for how to mitigate each one of the underlying cause. We are looking to understand how you would successfully persuade the sales and marketing staff to "buy in" to the JITD program. BE SPECIFIC...NOT "PIE IN THE SKY."
Readings:
Barilla Spa
By Janice H. Hammond