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Gate Gourmet
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Reference: IIST-PI-154-E-E
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Number of pages: 47
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Publication Date: Dec 15, 2014
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Source: San Telmo (España)
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Type of Document: Case
Description
In 2014, Gate Gourmet España (GGE) was the Spanish subsidiary of Gate Group, one of the biggest providers of independent, on-board passenger services in the world. The case describes the crisis situation in the passenger air transportation sector in 2010. In 2010, the General Manager of GGE, David de la Torre, decided that operations needed a deep transformation to render them more efficient and that they needed to change the “civil service” mentality of many of the employees who had been there “all their lives”. This was the context when David de la Torre launched the “+Madrid” Project in 2010, whose objective was to improve GGE’s efficiency and competitiveness. +Madrid placed GGE as “best practice” within the European group and turned it into the most profitable subsidiary.
Learning Objective
The case provides a background for debate and reflection about how a production company transformed its operations. If required, the teacher could focus on Lean methodology using the case as a basis for discussion. Gate Gourmet España carried this process out between 2011 and 2013, achieving very satisfactory results and turning it into a shining example of international validity of Lean application. Specifically, the case has been developed with the following teaching objectives:
1) To provide an in depth look at some of the areas that are key in keeping the business going: increasing added value for the client, as well as reducing costs
2) To reflect on the relevance of innovation both in operational processes and the business, in order to understand the above.
3) To debate about the keys to success once the company decided to embark on a project for operational transformation.
4) To reflect on the relevance and feasibility of major change in the operational systems of a business, even when the business is already profitable.
5) If desired, another option could be to discuss what Lean philosophy is, what its distinguishing features are, and what it can contribute to an operational transformation project. However, the case is not appropriate for dealing with Lean tools in detail, nor how they should be implemented.
6) To include this discussion when looking at the challenge of changing a way of working and organizational culture, with special emphasis on the importance of working by focusing on client needs.