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

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Barilla SpA Case Assignment Document

ACADEMIC INTEGRITY: This deliverable is a group assignment. You are on your honor. You cannot discuss any aspect of this case or anything related to it with any other teams. You cannot use any outside resources other than your notes, course articles and material, and your own team members. You cannot use any outside sources from the Internet. One of the biggest problems I have encountered with this assignment is plagiarism. Please cite any sources you may use.

Assignment Document:

This document includes the following assignment information:

Assignment Objectives
Assignment Introduction
Assignment Directions
Assignment Guidelines and Requirements
Assignment Questions
Grading Criteria
Cover Page and….
Academic Integrity Pledge

I. Assignment Objectives:

The goals of this assignment are to utilize concepts explored in class and apply them in a real world situation. Barilla SpA explores various themes, including but not limited to, the following:

Evaluate the use of continuous replenishment systems
Predict the impact of the bullwhip effect
Demonstrate how to apply lean concepts to various parts of the supply chain other than manufacturing
Summarize implementation challenges and solutions
Specify costing issues
Assess risks and mitigation strategies

II. Assignment Introduction:

This real world case assignment is designed to help students evaluate the use of the lean approach across the supply chain while exploring the bullwhip effect. Teams will assess the firm’s supply chain before and after the implementation of lean and will analyze the existing supply chain’s problems, propose solutions, and will critically evaluate the lean process—including its strengths, weaknesses, implementation challenges, and operational issues.

III. Assignment Directions:

Your team’s responses to the Barilla assignment questions are to be organized into a professional PowerPoint presentation of approximately 17 slides. Prepare the presentation in the "Normal" view, utilizing a portrait format to make liberal use of the “Notes” feature on all slides. PowerPoint slides, by necessity, must be brief. Therefore, use the notes feature to justify or more fully explain the bullet point content of a slide.

Do not leave the instructor guessing on the meaning of a particular slide. You might think of the notes as containing material you would actually state if you were verbally presenting your slides. Please, do not write volumes in the notes section. Be concise but clear on the meaning of each slide. All your extra information about a particular slide must fit on that 8.5 by 11 portrait version of the “Notes” page for a particular slide. Also do not re-write the question on the notes slide. Please just write either Q1, Q2, Q3, etc. at the top of the notes section.

The presentation should begin with a brief introduction giving some background on the case and stating the purpose (Objectives/Goals Type Slide) and organization of the presentation (Agenda Type Slide). The introduction should then be followed by your response to each of the assignment questions. There are multiple sets of questions associated with this case and most of the questions contain multiple parts or sub-questions. Please be certain to address each part of each question set. Also, please be sure that you make it clear to the reader that you have addressed each part of each question. This information should be very clear in the "Notes” section, and will have to appear on the slide portion of the presentation.

When you are asked to make a choice or take a position in answering a question, be certain to present the argument or justification for your choice. In support of your position, it is often useful to draw on the literature that you have read for the course.

Note: Arguments can be used to positively affirm a particular position as well as to indicate that alternatives are not worthy of support. In other words, sometimes you can support a position by effectively arguing against other alternatives.

The two biggest problems I find with these types of presentations and team assignments are as follows:

Teams do not answer all of the assigned questions.
All team members do not review all answers prior to submission--leading to incorrect, incomplete, and less than satisfactory responses. This problem is huge. I strongly suggest all members of the team re-read all of the information in the syllabus and in other areas of this course discussing how all team members must participate is all aspects of the case.

Note: See the Course Schedule for due dates for this assignment.

IV. Assignment Guidelines and Requirements:

Your team’s responses should be organized into a professional PowerPoint presentation of approximately 17 slides. Is the presentation concise and succinct?
All extra information about a particular slide must fit on that 8.5 by 11 portrait version of the “Notes” page for a particular slide.
Utilize graphics or even a short video to help emphasize a particular concept or elaborate on an answer to a question.
Are the slides logically organized?
Are proper grammar rules, punctuation, spelling, and sentence construction used?
Do the slides support, amplify and clarify your answers?
Do the slides represent correct information?
Is the presentation visually attractive?
Do the slides have a common font, theme, etc.?
Does the PowerPoint deck contain an agenda slide, overview, or objectives slide?
Does the PowerPoint deck have a summary slide?
Please include a cover page that includes the team name, assignment name, date, and individual names of team members. An example cover sheet is provided below.
Please use proper citations when necessary on the appropriate slides. Do not plagiarize.
Use bullets on the slides…no long sentences or paragraphs.
Points will be deducted for not following formatting directions and not answering all assignment questions.

V. Assignment Questions:

Please answer the following questions in your presentation: All questions refer to the dry products side of SpA’s supply chain.

Note: The instructor reserves the right to change the points for this assignment and these questions at his discretion. Points shown below are only approximate and may change.

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: (20 total points)

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.)
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!
Briefly (and the key word is briefly) explain why you would need this information from Part 2 of the question.
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”? (5 points)

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)? (10 total points)

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. (5 total points)

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. (25 total points)

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. (20 total points)

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. (10 points)

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? (25 total points)

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.”

VI. Grading Criteria: Barilla SpA Professional PowerPoint Presentation Assignment

(Note: The instructor reserves the right to change these grading criteria and point breakdown without notice.)

PowerPoint presentations are another communication device that stresses organizing thoughts in the appropriate hierarchy and sequence, selecting words for their power and expressiveness, using technical terms in appropriate contexts, and representing complex data and symbols precisely in prose.

PowerPoint presentations require the use of appropriate business language; do not use slang language, or colloquialisms, etc.

Analysis: (About 120 points)

Does the PowerPoint presentation answer each of the questions?
Does each answer to a question contain analysis of the major issues?
Does the analysis for each question incorporate concepts/techniques from all readings (including previous modules)?
Does the analysis show relationships among important factors?
Are assumptions explicitly stated?
Does the analysis isolate fundamental causes of the problems?
Does the analysis contain enough detail to support your answers?
When the analysis is undertaken does it use the information at its disposal correctly, thereby leading to correct answers?
Does the presentation utilize the information and apply it to today’s business environment?

Quality of Professional PowerPoint Slides: (About 60 points)

Are the slides logically organized?
Are proper grammar rules, punctuation, spelling, and sentence construction used?
Is the PowerPoint presentation concise and succinct? Is the presentation length 17 to 20 slides?
Do the slides support, amplify and clarify your answers?
Do the slides represent correct information?
Is the presentation visually attractive?
Was the “Notes” section in PowerPoint utilized to add depth to the presentation?
Do the slides have a common font, theme, etc.?
Does the PowerPoint deck contain an agenda slide, overview, or objectives slide?
Does the PowerPoint deck contain a schematic of the supply chain that is under analysis?
Does the PowerPoint deck have a summary slide? Does it point out “Next Steps?”
Do the PowerPoint slides have graphics, a short video, etc. that help to emphasize particular points? You must explain in the “Notes” sections how this clip adds to your answer!

Overall Criteria: (About 20 points)

Is the PowerPoint presentation logically consistent and effectively structured--so it sells its ideas?

Barilla SpA Case

Cover Sheet

(This cover sheet should be the first one in the deck!)

GRADE: __________ /200

Date Submitted: ____________________

Team Number: ____________________

Individual Team Member Names:

Team Member’s Name ___________________________ Email _______________

PLEASE SIGN AND ATTACH THE FOLLOWING PLEDGE AS PART OF YOUR COVER SHEET FOR YOUR ASSIGNMENT:

If it is not signed you may not be given a grade!

I, ____________________________________________ <Your Name>, affirm that I have neither given, received, nor witnessed unauthorized aid on this assignment and have completed this work honestly and according to the professor’s guidelines and the Smeal Honor Code!