Below is the assignment For this assessment, you are required to demonstrate your management and leadership skills and knowledge required to: a. plan and lead continuous improvement systems and processes.
Assessment Description
Portfolio of evidence Australian Hardware -
Case Study As a continuous improvement manager, you have been asked to conduct an analysis of the Australian Hardware business with the objective of proposing an overall approach to the continuous improvement process, including a general methodology such as Lean or Six Sigma.
The new continuous improvement process will be used across the business, including application to areas such as:
- sustainability across the organisation
- reviewing customer interaction
- operational costs
- customer service satisfaction across all product areas
- delivery lead times for customers.
i. You have been asked to consider the appropriateness and applicability of different continuous improvement methodologies in order to find the best approach for Australian Hardware.
ii. In your overall approach, you will need to develop several supporting strategies and procedures.
iii. You have been asked to pilot your proposed quality systems and processes at the Wollongong store.
iv. You will need to gather feedback from the management team on your proposed continuous improvement approach. You will need to refer to the organisational practices, as you will need to prepare a summary report to incorporate feedback and suggestion(s) for amendments and refinements.
Task 1. Read and review the Australian Hardware Case Study and select performance indicators 1, 2, or 3 in Appendix 1: Current performance indicators.
Note: To assist you in developing and writing your continuous improvement strategy, you may want to review the additional business documentation for the Australian Hardware store, available at http://simulations.ibsa.org.au/australian_hardware/
a. Develop a strategy which ensures that team members are actively encouraged and supported
I. to participate in decision-making processes
II. take on responsibility for project tasks
III. exercise initiative during various stages of the project.
b. Develop the communication strategy to ensure that the organisation's continuous improvement processes are communicated to all stakeholders.
o Record a 2-3 minutes audio/video of you facilitating a meeting with three stakeholders to communicate the communication strategy of the continuous improvement project.
c. Research the organisation's sustainability requirements and outline how they are incorporated in the change and improvement processes.
2. a. Develop an effective mentoring and coaching strategy for your continuous improvement project that fosters a culture in which every person and team is accountable for quality and high performance.
b. Record an audio/video (5 minutes) of you presenting your mentoring and coaching strategy
3. Develop a strategy/process using various knowledge management tools to capture the learning and experiences from your continuous improvement proposal document.
a. Develop an action plan to implement your strategy/process using various knowledge management tools
b. Draft an email communicating your action plan to the relevant stakeholders.
c. Develop a feedback form to gather feedback on your strategy/process in order to monitor its effectiveness in achieving organisational outcomes.
Appendix 1 - Current performance indicators Performance indicator report 1 Sustainability improvements (financial, environmental, social) Session/event (possible cross-functional team roles): Product employees or managers, marketing manager, HR business partners, suppliers, customers Performance Process KPI Target Result Stage Description Water usage expense $270,000 (10% reduction) 0% reduction
1. Product delivered Demand anticipated and larger batches ordered for popular items; huge floor space required to satisfy customer demand. Electricity usage expense $360,000 (10% reduction) $420,000 (5% increase)
2. Product stored in inventory or on store floor Many products stay on shelves for long periods of time without being sold:
many plants need to be thrown out; large inventory means high water usage, even with tanks ? large inventory and floor space means high electricity usage: lighting, electric forklifts. Wastage expense $25,000 $200,000
3. Customer purchase Customer purchase may trigger restocking only if inventory of popular items reaches critical levels. Employee satisfaction 90% proud of environmental contribution of Australian Hardware 70% employees proud of Australian Hardware's environmental contribution Notes:
Australian Hardware aims to be innovative with the benefits they offer to help staff achieve the right balance between work and life; this includes a sense of pride in work. Further, low employee pride could lead to low morale, lower productivity and affect Australian Hardware's status as an employer of choice in a tight labour market for skilled individuals.
Because of Australian Hardware's size, it has larger scope to renegotiate terms such as price, specifications, and delivery times for products. Customer satisfaction 90% customers see Australian Hardware as environmentally friendly 70% customers see Australian Hardware as environmentally friendly Performance indicator report 2 Customer experience improvements Session/event (possible cross-functional team roles): Product employees or managers, marketing manager, HR business partners, suppliers, customers Performance Process KPI Target Result Stage Description Revenue per interaction $35 $20
1. Customer greeted Customer may initiate interaction; sales staff should initiate if customer appears lost or unsure. Customer will commonly complain of lack of customer service people. Customer satisfaction rating 90% satisfaction 70% satisfaction
2. Customer needs assessed Sales staff are expected to use sales methodology to uncover customer needs and potentially (if warranted) to cross or up-sell to higher value products or services. Sales staff must have extensive knowledge of features and range of products and services in own area. Total interaction time 8 minutes 15 minutes
3. Right product/service or combination selected and proposed to customer Staff members are expected to be able to ‘own' the customer interaction throughout the process and not to hand over the customer to anyone else if possible. Customers occasionally complain about dealing with unknowledgeable staff and abandoning the interaction and going to a competitor or another sales person, making the total time invested longer. Transaction time (POS) 2 minutes 5 minutes
4. Product retrieved Staff members are expected to quickly retrieve item for customer for purchase. Training hours on sales methodology and products 50 hours 25 hours
5. Transaction processed Staff members are expected to quickly facilitate transaction for customer. Percentage of staff who have completed training on POS terminals 100% relevant sales staff 75% relevant sales staff Notes:
Australian Hardware intends to differentiate itself from its competitors through exceptional customer service and product/service expertise. Returns 2% sales ($560,000) 5% sales ($1.4 M) Performance indicator report 3 Supplier and delivery time quality improvements (kitchens, bathrooms, plumbing) Session/event (possible cross-functional team roles): Homewares product employees or managers, marketing manager, suppliers, customers Performance Process KPI Target Result Stage Description Customer satisfaction rating 90% satisfaction 75% satisfaction
1. Customer needs assessment undertaken Sales staff are expected to use sales methodology to uncover customer needs and potentially (if warranted) to cross or up-sell to higher value products or services. Sales staff must have extensive knowledge of features and range of products and services in own area. Customers are very happy with level of knowledge of staff in this area. Order processing time 2 minutes 5 minutes
2. Right product/service or combination selected and proposed to customer Staff members are expected to be able to ‘own' the customer interaction throughout the process and not to hand the customer over to anyone else if possible. Delivery times 3 days 2 weeks
3. Product determined in or out of stock; ordered Australian Hardware has a limited supply of kitchen and bathroom fit-outs and orders items for manufacture or delivery as demanded. Customers complain of long waiting times for delivery compared with competitors. Revenue per interaction $3,000 $2,500
4. Transaction processed Staff members are expected to quickly facilitate transaction for the customer. Total interaction time 8 minutes 15 minutes 5.
Product/service delivered Strategic business partner delivers products to customer; preferred suppliers of services are used to plumb kitchen, bathrooms, etc. Percentage of staff who have completed training on POS terminals 100% relevant sales staff 75% relevant sales
staff Notes:
Australian Hardware intends to differentiate itself from its competitors through exceptional and rapid customer service and order fulfilment.
Because of Australian Hardware's size, it has larger scope to renegotiate terms such as price, specifications and delivery times for products.