Barilla Spa A Essay Example for Free

Barilla Spa A Essay Barilla SpA, an Italian pasta manufacturer is experiencing problems in manufacturing and distribution systems caused by fluctuations in demand. To eliminate these difficulties Giorgio Maggiali, the Chief of Barilla’s Logistics Department, has been trying to implement the Just-In-Time-Distribution, further referred as JITD, system proposed by his predecessor Brando Vitali. JITD can be called a remake of popular â€Å"Just-In-Time† manufacturing concept. Although Maggiali has been trying to convince his consumers that the JITD would definitely work, he has not made much progress. The program was met with significant resistance by the distributors and Barilla’s own Sales and Marketing organizations. Now Maggiali is looking for possible solutions of the problem. In the following analysis we will provide recommendations, which will help Barilla to successfully implement the JITD system and thus decrease its costs, increase efficiencies and its profits. Introduction Barilla SpA was founded in 1975 by Pietro Barilla. From a small shop in Palma, Italy, it became a large, vertically integrated corporation with mills, plants and factories located throughout the Italy. Barilla’s success highly depended on its’ quality of product and innovative marketing programs, which created strong brand name. The company was sold to Grace Inc. in 1971, because the building of a huge plant in Perdignano drove the owners â€Å"deeply into debt†. Grace brought additional capital investment and professional manag Barilla SpA Case Study The biggest challenge facing Giorgio Maggiali and Barilla SpA is the mounting burden that fluctuations of demand have placed on Barillas’ manufacturing and distribution methods, and whether or not to implement a Just-in-Time Distribution (JITD) system for their distributers. The implementation of Just in Time Distribution would allow for a more efficient process for getting the products to the end user when and where they are needed. Solution #1: To implement Just in Time Distribution. For this to succeed, Mr. Maggiali as the director of logistics for Barilla will need to be personally and intimately involved and partner with Mr. DiMaria who is in charge of sales for Barilla and to obtain the support from their own sales reps. Barilla will need to pull the sales reps in for training on how implementing JITD would benefit their accounts, Barilla SpA and themselves. The sales reps will need to â€Å"sell† their customers on this idea and to shift the mentality of their distributers away from â€Å"this is the way we have always done it† and for them to be amiable to exploring new and more efficient ways to replenish their stock. Pro: Barilla would more easily be able to control their manufacturing process and greatly reduce production overruns and stock outs thus enable to pass cost savings onto their distributors. Con: Resistance from the distributors to change may continue. Their distributer may ask â€Å"why is that a concern of mine? † I just want the product I want when I want it. Con: Will incur costs to purchase or develop software needed to gather and correlate sales information. Pro: The initial cost for software development will be offset by savings in lost sales opportunity, reductions in buybacks and an overall increase in productivity and sales. Barilla already has much of the needed data pertaining to sales to the distributers. Con: Customers may be resistant to providing their sales and customer base data to Barilla. Pro: Barilla Sp Company Overview Barilla Spa is a large vertically integrated family owned largest pasta producer in Italy. Its operations are divided into seven divisions: three Pasta divisions, the bakery products division, the Fresh Bread division, the Catering division and the International division. Barilla products were sold through three types of retail outlet: small independent grocers, supermarket chains, and independent supermarkets. Products were sold through CDCs and through intermediate distribution channels. Fresh products were sold through a network of brokers. Inventory levels in the supply were high with larger levels of stock held for dry pasta since its shelf life was high as compared to wet pasta. Barilla enjoyed a strong brand image in Italy. Its marketing and sales strategy was based upon a combination of advertising and promotions. Also distributors can buy as much product as they want to for meeting their demand at the discount offered by the company. Barilla produced two major kinds of products:- a) Dry Products- These include dry pasta, cookies, biscuits, flour, bread sticks and dry toasts. These make 75% of the Barilla sales. They had long shelf lives of 18-24 months or medium shelf lives of 10-12 weeks depending on the product type. b) Fresh products- These include fresh pasta products with 21 day shelf life and bread with 1 day shelf life. Issues Faced The company was suffering from the following problems: 1. Variability in demand- This lead to operational inefficiencies on the part of the company. 2. Inventory Management- The company produced over 800 SKUs, most of which had long or medium shelf lives, thus could be easily stored up at the company warehouse or with the distributors. During periods of low demand, high inventory holding costs had to be incurred. 3. Stock outs- This was one of the major problems which Barilla faced. Many of the distributors were not able to cater to the demands of the retailers during times of high demand. This time B Thoughts on Supply Chain Management The JITD program was supposed to tackle the uneven distribution workload Barilla encountered with its distributors. In order to achieve this, better demand forecast was needed with the support of the distributors. Benefits of the program are below. Barilla’s own logistics organization would be allowed to specify the appropriate delivery quantities that would more effectively meet the end consumer’s needs It would also allow Barilla to distribute the workload on manufacturing and logistics systems more evenly Drawbacks of the program are below. Higher investment costs such as training Since JITD is a new concept, and has not tried out before, there is a risk that serious errors may occur during the implementation process, and this would ruin all previous efforts The value chain consists of five major components, and it can be represented as SIPOC, where S is Supplier, I Input, P Production, O Output and C Customer. Between C and P, there are also the distributors, wholesalers and retailers. It is almost impossible to develop an accurate sales forecast because the market is constantly changing. Factors affecting the market situation are also changing. Without an accurate sales forecast, it is difficult to achieve JIT. This is basically a paradox. No enterprise is able to develop an accurate sales forecast, and without an accurate sales forecast, it is not possible to achieve JIT. Is there really no way out? How about Dell? Dell basically builds computers on a BTO (build-to-order) basis, and this makes JIT possible. But how many enterprises can really deliver products on a BTO basis? What are the requirements to produce on a BTO basis? Barilla definitely was not one of them. Communication here is the critical success factor. The supplier, in this case, Barilla, has to collect information from the distributor, and the distributor has to be able to collect information from the wholesaler, and then the wholesaler has to d

Jungle Book :: essays research papers

Part 1: Identifying 1.) Protagonists- In a story or movie the Protagonist(s) is/are the main character(s). In the story A separate Peace the protagonist is Phineas(Finny). 2.) Antagonists- In a story or movie the Antagonist(s) is/are the character or force in conflict with a main character, or Protagonist(s). In the story A Separate Peace the Antagonist is Gene. 3.) Setting- In a story or movie the Setting is the time & place of the action. In the story A Separate Peace the setting is at the Devon School. 4.) Mood- In a story or movie the Mood is the feeling created n the passage. In the story A Separate Peace the mood is sad because jealousy ruined Gene & Finny’s friendship. 5.) Conflicts- In a story or movie the Conflict is a struggle between opposing forces. There are two types of Conflicts: Internal & External. An Internal Conflict involves a character in conflict with himself or herself. In the story A Separate Peace the Internal Conflict is Gene vs. himself. In an external conflict, the main character struggles against an outside force. In the story A Separate Peace the External Conflict Gene vs. Finny. 6.) Suspense- In a story or movie the Suspense is the feeling of curiosity or uncertainty about the outcome of events. In the story A Separate Peace the Suspense is when Gene shakes the tree limb & Finny falls & shatters the bone in his leg. Part 2: Elements of plot   Ã‚  Ã‚  Ã‚  Ã‚  1.) Exposition- In a story or movie the exposition is the background information, which sets the scene for the conflict. In the story A Separate Peace the exposition is the following: At the beginning of the story Gene has been out of school for fifteen years & has decided to come back & visit. While visiting he saw the tree that Finny & he had jumped from into the Devon so many years a go, which brought back a lot of memories. He then remembers the Super Suicide Society of the Summer Session. That was the club that Finny came up with.   Ã‚  Ã‚  Ã‚  Ã‚  To be in the club you had to jump off a high tree limb & into the Devon. Since Finny was a daredevil, he decided to go first. Gene was an intellectual & was afraid to jump, but he jumped anyway. They were then late for supper, which had been noted by Mr. Prud’homme.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  The next morning Mr.

Raynair Business Model Essay

This year, Air Scoop is publishing an updated report on Ryanair’s Business Model, with a new task in mind. Starting from what was built last year, the 2011 Ryanair report has been conceived with a double objective in mind: to provide readers with a brief, compelling, synthesis of Ryanair’s business model and highlight new elements and evolutions in Ryanair’s skies. In no way is that report intended as a replacement of the one published last year, rather as a complement that should provide anyone interested in the European low-cost industry with a wealth of information on the market’s most important company. Conceptually, the 2011 report was elaborated along two different axis of analysis. In a first part, the report starts by taking a look at Ryanair’s revenues and expenses. According to the company itself, if Ryanair has grown so fast, it is thanks to an efficient mix of ever increasing sources of income and ever wider cost-cutting measures in all services. For this reason, the 2011 report looks, item by item, at Ryanair’s cost-cutting, profit-maximising strategies. From the most discussed to the lesser known tactics, the goal is to show how Ryanair has managed and still manages to constantly extract increasing income from its passengers while maintaining rock-bottom prices, through a relatively complex fare system and a slew of ancillary services. The report also investigates Ryanair’s largely misunderstood relationship with its own assets and how the airline managed to practically neutralise costs usually associated with aircraft and human resources, even turning airports into direct sources of revenues. The second part of the report is dedicated to a more analytical approach of the airline’s structure, providing the reader with an analysis of what Air Scoop judges to be the three main strengths of the airline. Namely, Ryanair’s legal strategy, whose dominant feature is an extremely proactive stance towards anything even remotely menacing to the airline, deterring irate customers from engaging legal action and submerging European regulators with complaints. Second, and perhaps most important, is Ryanair’s financial structure itself, through which the airline has optimised every part of its business, taking advantage of varying legal and fiscal frameworks all around Europe. Third is the most visible, but also possibly the least understood, part of Ryanair’s package for success, its communication. The airline, mainly through its hyper-charismatic CEO, Michael O’Leary, has managed to be present in every form of media outlet almost daily. Whether it be in good or bad terms, Ryanair is being talked about, and gets into customers’ minds and on every newstand in Europe. The traditional pricing system means that â€Å"fundamentally, each flight must be paid for by exactly one fare, but a single fare may pay for more than one flight. Multiple fares may be combined to pay for all the flights in a journey. The airline industry uses the term fare component (FC) to refer to a fare and the flights it pays for (covers)†1. Fare components can be combined in six different geometric figures (ranging from direct trip to elaborate circle trip), any combination of one to four fare components qualifies as a â€Å"Priceable Unit† (PU). A ticket can be built from any number of priceable units to form a coherent sellable trip. Some more restrictions may apply such as rules indicating that there â€Å"must be a Saturday night between departure of first flight in first fare component of priceable unit and departure of first flight and last fare component†2. This results in an incredibly complex faring system in the traditional airline industry and low transparency for customers. Many low-cost carriers use a different pricing system. Because companies such as Ryanair rely on a point-to-point rather than a hub-and-spoke system, they cannot offer similarly connected flights. Ryanair has decided to turn this into an advantage and offer simply-priced â€Å"point A to point B† tickets, avoiding the hassle of elaborating complex ticket structures and allowing the company to deny any responsibility in a missed connection while having the opportunity to intensively utilise aircraft and crews.

Essay about I Am An American - 1673 Words

Since the 1800s, immigration has been considered a problem that is out of control in the United States. Government officials have claimed that the issue of birthright citizenship is the core of the dispute over immigration. To try and remedy this situation, holders of public office have held hearings and debates in an attempt to â€Å"redefine† what it means to be an American citizen. Birthright citizenship is the term used to refer to the citizenship that is granted to an individual who is born on the associated territory. Providing an individual with citizenship of any state or country means that one now has the rights, privileges and duties of a citizen in the related region. In the United States, birthright citizenship is a highly†¦show more content†¦This text implies that any individual, no matter their original location, is subject to the privileges of an American citizen. Some argue that the language of the Fourteenth Amendment has been misinterpreted and abus ed as time has passed. The backbone for this argument? — â€Å"Subject to the jurisdiction thereof.† In the Fourteenth Amendment, this phrase holds the key to why birthright citizenship can be deemed unconstitutional. Government officials say that these key words were put in the constitution to specifically to exclude Native Americans born on reservations and any other foreign national. In 1884, the case of Elk vs. Wilkins was brought to the attention of the U.S. Supreme Court. In this case an Indian named John Elk, who was born on a reservation within the U.S. border, was denied the right to vote by Charles Wilkins even though he had moved to a non-reservation territory and separated himself from his tribe. Elk argued that he deserved the right to vote as a U.S. citizen because based on the Fourteenth Amendment he was granted automatic citizenship for being born in the United States. 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