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Supply Chain management case study

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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. One of the biggest problems I have encountered with this assignment is plagiarism. Please cite any sources you may use.

IMPORTANT!!! You cannot utilize any research on the Internet (including the use of AI such as ChatGPT) to seek answers for this assignment. I am looking for your analysis only–these assignments are not research ones and do not require any outside information other than material given in the course lessons.

Also, use of previous work concerning this assignment will be considered an Academic Integrity violation and will result in at least a zero for the assignment plus potentially additional sanctions to the final grade in the class.

Assignment Document:

This document includes the following assignment information:

1. Assignment Objectives
2. Assignment Introduction
3. Assignment Directions
4. Assignment Guidelines and Requirements
5. Assignment Questions
6. Grading Criteria
7. Cover Page and Academic Integrity Pledge
8. Check List

I. Assignment Learning Objectives:

The assignment surrounding the Barilla SpA Case aims to apply class concepts in a real-world context, exploring various themes including but not limited to, the following:

1. Evaluate the use of continuous replenishment systems.
2. Predict the impact of the bullwhip effect (BWE).
3. Demonstrate how to apply lean concepts to various parts of the supply chain other than manufacturing.
4. Summarize implementation challenges and solutions.
5. Specify costing issues.
6. 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 10 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 and more fully explain the bullet point content of all slides.

Do not leave the instructor guessing on the meaning of a particular slide. You might think of the notes as containing material you would 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 slide must fit on that 8.5 by 11 portrait version of the “Notes” page for a slide. Also do not re-write the question on the notes slide. Please just write Q1, Q2, Q3, etc. at the top of the notes section. Please be certain to address each part of each question set and indicate the subparts (for example Subpart 1, Subpart 2, etc.) in the notes section of the slide.

Also, consider adding a Tag Line to the top of each slide succinctly answering the key take away or of the slide. Another way to think of this item is if someone was in a hurry, could the reader obtain a general sense of the key messages based on reading each slide’s tag line.

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). These slides are not part of the 10-slide limit.

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.

The final slide should be a summary slide which explains the next action steps in the process that should occur. Please do not say items like “email me if you want more information’…. I am looking for concrete steps.

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 from the course.

Note: Arguments can be used to positively affirm a 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 three biggest problems I find with these types of presentations and team assignments are as follows:

1. Teams do not answer all the assigned questions and sub parts of those questions.
2. 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 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.
3. Teams do not use enough examples to thoroughly justify a position.

Please note: The team should place citations on the slides as needed that illustrate the problems/questions/goals/objectives, etc. you are trying to analyze.

Consequently, when you submit information and the report, it needs to be compiled in a professional, well-analyzed, and thoughtful manner. Additionally, please ensure all items are professionally formatted.

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

IV. Assignment Guidelines, Requirements and Formatting:

1. Your team’s responses should be organized into a professional PowerPoint presentation of approximately 10 slides. Is the presentation concise and succinct?
2. All extra information about a slide must fit on that 8.5 by 11 portrait version of the “Notes” page for a slide.
3. Do not use any pdf type files in your submittals—PPT only. PPT should be formatted to print the slide and notes section.
4. The presentation must be formatted for single sided printing (no double-sided reports). Please preview print before you submit to ensure correct formatting.
5. Please read the attached grading rubric for additional information that will be considered when the assignment is graded.
6. Use bullets on the slides…no long sentences or paragraphs.
7. Does the PowerPoint deck contain an agenda slide and objectives slide? (Not counted as part of the total)
8. Does the PowerPoint deck have a summary slide?
9. Please use proper citations, when necessary, on the appropriate slides. Do not plagiarize.
10. Please include and use the enclosed cover page or similar page transcribed to PPT.
11. Points will be deducted for not following formatting directions and not answering all assignment questions.
12. Utilize graphics or a short video to help emphasize a concept or elaborate on an answer to a question.
13. Any appendices type slides must be numbered and have a title. You cannot have more than one appendix per slide.
14. All work must be completed in a professional manner.
15. Font size and type are your choice: however, make sure it is readable in a presentation mode…to small of a font will result in a deduction of points.
16. Please note: We do not have pre-grading of any of the assignments.
17. We do not allow resubmittal of the assignment after it is graded.
18. You will have only one document downloaded to the drop box:
    1. The actual document in PPT type file extension. These will include use of the ‘notes’ portion.
    2. No other documents are required…no Excel files, Word documents, etc.

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.

Case Overview: The case begins by stating that Giorgio Maggiali, Barilla’s Director of Logistics, is concerned by the growing burden of demand fluctuations. Maggiali is referring to the high variation in order sizes placed on Barilla’s central distribution centers and manufacturing facilities. He may also be referring to the variation in order sizes experienced by distributors in the Barilla products distribution channel. As we all know, we commonly refer to the existence of this variation as the bullwhip effect (BWE). Please note you need to recognize that it impacts both the distribution centers and the manufacturing plants.

You may ask how severe are these fluctuations in comparison to the consumer demand pattern?

Possibly the best example of the severity of the demand fluctuations is shown in Exhibit 12. This exhibit charts the weekly orders for dry products placed on Barilla’s northern central distribution center (CDC) in Pedrignano by the Northeast Distribution Center of the Organized Distributor (DO), Cortese and shows a widely fluctuating order pattern over time.

Since diagrams can be misleading because the scale can be manipulated to either accentuate or mitigate variation in the data. Therefore, statistical measures of variation – most notably variance and standard deviation — provide a more trustworthy “picture” of the degree of order size variation.

Probably the most used statistical measure of variation is the standard deviation. When compared to the mean (average), the standard deviation indicates the degree to which the data is concentrated around the mean. If the standard deviation is small relative to the mean, then most of the data is tightly concentrated around the mean, that is, the variation in the data is low.

In Exhibit 12, the mean order size is given as 300 quintals (hundredweight) and the standard deviation is 227 quintals. This means that only 68% (plus or minus one standard deviation) of the weekly orders fall in the rather sizable range of 73 – 527 quintals while 32% of the weeks fall outside this wide range. At 76% of the mean, the standard deviation of order sizes placed on Barilla’s Pedrignano CDC is quite large.

The demand pattern shown in Exhibit 13 also shows variation. Rough estimates of the mean and standard deviation are 305 and 63 quintals, respectively. The demand pattern is obviously not flat, but its variation is considerably less than at the CDC. Meanwhile, the case indicates that consumer demand is relatively flat. Thus, the Barilla distribution channel is showing the typical signs of the bullwhip effect.

Another aspect of this case revolves around a silo mentality versus a process one within firms. One of my former students John Calia stated it well in an email to me:

“It’s interesting that in all my years, whether it be growing up, parenting, working in industry v. consulting, working domestically v. internationally, etc., the fundamental challenge is how to build a team focused on a shared, common goal.

This is no different when looking at the case. Sales representatives for example display greater loyalty to external companies. This indicates a mismatch of incentives, or a functional-first focused view of how benefit is perceived.

When in industry, it was referred to “well it’s not in my backyard” so therefore it’s ok to not be involved.

Whereas to reflect a better chance for success, and create an approach to sustain it, requires shared metrics, i.e., it doesn’t matter if you lead the team in batting average if your team finished out of the playoffs. Those teams (companies) don’t typically stay together or keep fans’ (customers) support.”

We address this idea in Question 5. Our next case will more fully explore this idea, in the meantime enjoy this assignment.

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: (25 total points)

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 obtain the information in Part 3? Please be very specific as to how you obtain the information.

Question 2: Based upon the case overview written above, what type of goal and specific metric (only one goal and one metric to measure the goal) would you devise to improve the problem? Explain why you selected each. (15 total points)

1. List and explain the goal and explain.
2. List and explain the specific metric…improve “X” by some amount or similar type item!

Question 3: Identify the most important underlying drivers or causes of the ordering pattern depicted in Exhibit 12 within the case itself. Please do not forget this part of the question…. explain how each cause identified contributes to the ordering pattern in Exhibit 12. (40 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 two underlying causes. A top-level response will identify three. Even though you could identify more, do not exceed three—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 4: 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 your answer by either “Yes” you are for it or “No” you are against it. Explain! (15 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 5: Implementation of a JITD system is always a cause for culture shock! Let us 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 the underlying causes (not symptoms) of the internal conflicts. A top-level response will identify and explain the source of two underlying causes. Even though you could identify more, do not exceed two—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 causes. 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.

Please Scroll Down to Review The Grading Criteria: Barilla SpA Professional PowerPoint Presentation Assignment (VI), and the Cover Page (VII), and the Check List (VIII).

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, representing complex data and symbols precisely in prose.

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

Analysis: (About 120 points)

1. Does the PowerPoint presentation answer each of the questions?
2. Does each answer to a question contain analysis of the major issues?
3. Does the analysis for each question incorporate concepts/techniques from all readings (including previous modules)?
4. Does the analysis effectively incorporate information from the case?
5. Does the analysis show relationships among important factors?
6. Are assumptions explicitly stated?
7. Does the analysis isolate fundamental causes of the problems?
8. Does the analysis contain enough detail to support recommendations, causes and effects, etc.?
9. When the analysis is undertaken does it use the information at its disposal correctly, thereby leading to correct answers?
10. Does the presentation utilize the information and apply it to today’s environment?
11. Are the risks associated with this case discussed in detail?
12. Do the notes section of the slides contain enough detail to explain the slides?

Quality of Professional PowerPoint Slides: (About 60 points)

1. Are the slides logically organized?
2. Is the presentation readable and does it flow with continuity?
3. Are rules of grammar, punctuation, spelling, sentence and/or paragraph construction, uppercase/lower case, etc. followed?
4. Is the PowerPoint presentation concise, succinct and is the length only 8-10 slides?
5. Do the slides support, amplify and clarify your answers?
6. Do the slides represent correct information?
7. Is the presentation visually attractive?
8. Was the “Notes” section in PowerPoint utilized to add depth to the presentation?
9. Do the slides use a common font, theme, layout, size, upper/lower case letters, etc.?
10. Does the PowerPoint deck contain an agenda slide, overview, or objectives slide?
11. Does the deck contain a schematic of the supply chain that is under analysis?
12. Does the deck contain a summary slide that lists the “next steps” that should be taken to move the process forward?
13. Do the PowerPoint slides have graphics, a short video, etc. that help to emphasize your points? You must explain in the “Notes” sections how this clip adds to your answer!
14. Were citations used on the appropriate slide or note section?

Overall Criteria: (About 20 points)

1. Is the PowerPoint presentation logically consistent and effectively structured–so it sells its ideas?
2. Is there a high likelihood that the recommendations will achieve their intended results?

VII. Barilla SpA Case Cover Sheet and Academic Integrity Pledge

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

Team Number: _____________ Date Submitted: ________________________ GRADE: _______________ /200

Individual Team Member Names:

Team Member’s Name ___________________________ Email _______________

Team Member’s Name ___________________________ Email _______________

Team Member’s Name ___________________________ Email _______________

Team Member’s Name ___________________________ Email _______________

Team Member’s Name ___________________________ Email _______________

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!

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!

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!

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!

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!

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!

1. Barilla SpA Case Assignment Checklist: Do Not Submit This Checklist to Us! It Is for Your Team Only.

Deliverables:	Completed Yes/No?	Comments:
Did the team answer all questions?
Did the team answer all subparts of all questions?
Did the team review the grading criteria?		Does your presentation meet those requirements.
Did the team use the provided Cover Sheet?		Team number, each team member’s name and email address, date, name of assignment, sign the pledge.
PowerPoint Slide Presentation (10 slides)		PowerPoint slides… Portrait mode/must all fit on 8.5 by 11 page/use notes section for more detail but still must fit on 8.5 by 11 page … NO PDF FILES ALLOWED
Objectives/Goals Type Slide		PowerPoint Slide…. Does not count toward the 10-slide total. NO PDF FILES ALLOWED
Agenda Type Slide		PowerPoint Slide…. Does not count toward the 10-slide total. NO PDF FILES ALLOWED
Schematic Slide with appropriate information		PowerPoint Slide….NO PDF FILES ALLOWED
Summary including next action steps		PowerPoint Slide…. NO PDF FILES ALLOWED
This Checklist Sheet		This sheet is for your use only. Do not submit this sheet to us.