Assessment 2

Topic 1:

Review programs, systems and process:

1.1: Establish strategies to monitor and evaluate performance and sustainability of

key systems and processes.

1.2 Undertake detailed analyses of supply chains, and operational, product and service
delivery systems

Key systems and Processes used by XYZ Company

a. Supply chain
The supply chain management is the process of investigation of the products to different
people associated with the production. The supply chain management is to move the products
from supplier to manufacturer, from manufacturer to wholesaler, from wholesaler to retailer
and from retailer to consumer. This supply chain is managed in every company to transfer the
products to ultimate consumer. For this, a proper management is required. The supply chain
which was used by management of XYZ Company includes the suppliers, manufacturers, and
retailers through which they provide toys to the customers. 

b. Operational systems

The operational system which is used by XYZ Company includes the various steps. The
operational systems are those which provide the information of the working in an organization.
The business and its operational systems are very effective and efficient in an organization and
helps in achieving the targets of the company. The certain activities in which the organization
can provide the operational systems consists-

Designs- To design the toys and other products related to the products which are designed by
the designers of the company. The designs are according to the different customer’s kids or
adults. The boys and girls are also considered for designing the products.

Planning- planning is done for the developing the products or toys and planning the sales and
targets and the manner to achieve them.

Purchasing- The purchasing step is included in the operational system for providing the
planning in the purchasing of raw materials and packaging from suppliers.

Manufacturing-The manufacturing includes production and packages toys and distribution. The
manufacturing is included in the production of toys.

Distribution- The distribution involves the storage and warehouse productions.

c. Product and service delivery

The product and service delivery are those in which the management of the product and the
services are done. For XYZ company the production and the service deliver is effective and
efficient as it provides the various factors of completing the delivery on time. The management
includes the planning of the distribution of products and delivers the products to the retailers
on time to make the product available on time.

1.3 Identify performance measures, and assessment tools and techniques, and evaluate their
effectiveness

The analysis of the key systems which are used by the company XYZ Company is that the
performance of the company can be increased with the use of such systems and process. As the
systems and process provided the company has managed the resources as well as functions
properly to gain the maximum achievement.

There are various sustainability measures and assessment tools which can be used to assess the
systems and processes of the organization are-

Key Result Areas- The key result areas refers to the general areas of the different roles and the
responsibilities. The outcomes and the results for key performance of the departments are
important to understand. The key result area includes the results which are outcome of the
roles and responsibilities of the different departments. This includes the profits attained in XYZ
Company.

Key Performance Indicators- The key performance indicators are those which provide the
information of the major performance of different departments. The different performance
indicators in the XYZ Company include the quality of the toys and the customer satisfaction.
Performance Review Processes- the performance review processes includes the review and
measuring the performance of an organization. The process of the performance review further
provides the performance appraisals. This performance appraisal provides the boosting up of
the confidence.

Evaluation of the effectiveness of the review strategy and the improvements required.

The performance of the company XYZ Company can be measured with the use of the three
performance tools and techniques which are described above. There are certain a technique
which has been used by the company XYZ Company includes the management techniques
improving quality and the continuous improvement.

The continuous improvement refers to the ongoing efforts of the company to improve the
business operations and the working.This improves the management, products, services and
process in the company. The supply chain system in XYZ Company was effective and useful for
the company’s operations. With these systems used and the tools work for the company
performance the XYZ Company faced a loss of 1.1 million dollar.

The performance of the company was not increased and the company buried a loss
continuously for the 6 years. This loss has the low value than the previous loss which was
showing the continuous improvement in the company.

For the continuous improvement, it is required by the company to get the PDCA cycle. The
PDCA improves the performance of the company as they provide various steps to complete the
action related to the company’s improvement.  This is also known as Deming cycle. The steps
for the quality model includes plan, do, check, act. There are other tools and techniques for the
continuous improvement which are six-sigma, total quality management. The continuous
improvement can be effectively achieved in an organization by the use of Total Quality
Management. The theory of managing the total quality provides the management of the quality
and the people of an organization. Proper management of the quality can be achieving by the
TQM which enhances the quality and the efficiency of the products and the services.

The recommendation for the improvement of quality and maintaining the continuous
improvement in an organization it is required that the company follows the total  quality
management proces. XYZ Company provides the improvement in an organization continuously
with the help of TQM. To enhance the quality of the toys and get the maximum benefit of the
customer satisfaction this strategy of the company are very useful.

1.4 Analyze performance reports and variance from plans for key result areas of the
organization:

Analysis of the variances and the result areas of performance up to 1966

The quality of the products in an organization includes the designing and the manufacturing of
products. In the year the company enhanced the manufacturing of 50 new toy lines which
reached to 307 lines of toy manufacturing. The manufacturing and designing of the company in
1961 changed from the traditional boy’s to ranges from pre-school children and dolls are for
the age of 6-14. The manufacturing units of the company have also increased with 50 new lines.
Year was poor in designing as there was no innovation in the toys. The quality in the
manufacturing toys were reduced and the designing was changed from the metal boxes the
card boxes are used and instead of long lasting parts, the brittle and weak parts are used by the
company. Year passed without changes and innovation in the products and the company faced
the loss.

The profits whereas of the company has not showed up much. There was more loss than the
profits. The company summed up with the profit of $20,011 which was the level performance
of the company. With this, the company stepped, with the loss recorded of $281,000. Further,
in the year profits were decreasing and same went. This made the company in huge trouble.

The company has lost the delivery and the supply chain performance. The company was
performing well in the supply chain but with the losses of the company and less innovation
management the company lost supply of the products in the different retailers as the demand
of the company also gets affected. The demand of the company is also impacted and the
performance of the different system is XYZ Company is affected due to the decrease in the
profits of the company.

The company worked in the major areas of providing quality toys. With this, the new business
person who has purchased a business has changed a lot of staff in every year. The changes in
the organization in relation with the staff are provided. The top management employees of an
organization were also changed in XYZ Company.  This has overall decreased the performance
and increased staff turnover.

1.5 Identify and analyze changing trends and opportunities relevant to the organization:

Trends of an organization

The trends of an organization refer to the continuous performance of an organization which is

ongoing from the past years. These years of an organization requires changes which provide the
innovation in the working styles as well as in the outcomes. XYZ Company did not identify the
trends of the organization which were the innovation in the toys produced. To be in the race of
competition the trends of an organization must be paced with the new market strategies and
competencies.

The company XYZ Company followed some Strengths and Weaknesses which are-

Strengths Weakness
 The company was followed with the
excellent market share before 1960,
which were the strengths for the
company.
The company has no stability in the
trends of an organization. The weakness
of the company includes stability. As the
company were not showing the stability
in the performance of the company.  

The quality of the product was the The company does not have the
strengths of the company and this is why pervasive nature and for this, the
the reputation of the organization company is not good at adapting the
becomes it strength. changes quickly.   

The profits of the company were showing
the continuous increase in the
organization as it has a good reputation
and market share. The customers are
satisfied
Customer service standards are the
weakness of the company as XYZ
Company is not meeting the expectations
of the customers in delivering the
products.

The company also provides the increment Innovation is the lowest rated point
in the sales continuously. This becomes which is considered by the company as
the strength of the company. the company has no innovation strategy
from the last few years.

Manufacturing and the production is also Employee performance of the company

the strength for the company as they get was decreasing with the changes in the
the systems which the company uses for company financial position.
the operations and supply chain
management was efficient.

Missed opportunities

There are certain missed opportunities in the company which could have been an opportunity
for the company. These are innovation, adaptive nature to accept change, competition.

The innovation is the major factor which could be used as the tool to beat the competition and
the new upcoming trends in the toys. The company worked on the same designs and pattern
for the girls and the boys. The dolls and the traditional boys were the major selling items of the
company in the toys. In the new era and due to increasing competition various new toys in the
industry for kids have been launched which pull back the strategy of the XYZ Company to sell
the toys. The new race cars and the Barbie dolls have become the aspirations for kids. The
designs and color themes could be more attractive and the other varieties could be an
opportunity for an organization.

Action plan

Activities What to achieve Days required

Analyzing the change or Innovative techniques 15 days

innovation.

Analyzing the competitor’s To provide more 7 days

innovation. improved quality and
designs

Calculating the budget Profit margin 20 days

required for the innovation.

Estimating the raw Raw materials 15 days

materials required.

Communicating the New technologies and 10 days

innovation and techniques designs

Implementing the change Properly execution and 25 days

implementation of
innovation

1.6 Seek advice from specialists, where appropriate, to identify technology and electronic
commerce opportunities

Recommendations if the company is running

There are various advices which the specialists must communicate with the company. These
advices are the recommendations that the company must focus and consider important. To
improve the business and increase the profitability the company must ensure some new
technologies and various opportunities to grab the competition. The required considerations on
the opportunities includes-

Internal-

Engineers of the company must provide the company with the new and latest technologies to
produce the toys in the maximum effective and efficient time. The engineers must provide the
various techniques of quality management such as TQM and other supply chain activities. The
production and manufacturing staff must consider the various techniques of improving the
quality such as quality management process and the sales personnel of the company must
provide the customer satisfaction by delivering the products on time and planning the
marketing team accordingly. The human resource management has the major role in providing
the management of the roles and responsibilities of the different departments and to provide
them the managed resources to gain the efficiency and effectiveness in the organization. For
the same, the human resource management team must provide team building and
management of resources.

External-

XYZ Company must consider the marketing and marketing consultants as the most important
part of an organization. The company may consider the different marketing activities which can
improve the sales of the company and promote the products and the services of company. The
marketing campaigns and proper selection of the medium to be chosen for the company’s
market position. Some of the advertising experts must also bask about the activities which can
improve the sales of XYZ Company. Designers of the company and IT consultants must provide
the proper information about the company requirements in the innovation.

Conclusion

From the above report, the conclusion can be made that XYZ Company is the very famous and
branded company in the field of toys for kids. The company has faced the harsh situations and
financial condition. Company has been closed due to continuous loss. The report proposed the
different factors which must have been considered by the company for its promotion. The
company must focus on various skills and opportunities which can help it to get the success in
the tough competition.

Task 2:

Develop options for continuous improvement

2.1 Brief groups on performance improvement strategies and innovation as an essential

element of competition
2.2 Foster creative climate and organizational learning by promoting interaction within and
between work groups

2.3 Encourage, test and recognize new ideas and entrepreneurial behavior where successful

2.4 Accept failure of an idea during trailing and recognize, celebrate and embed success into
systems

2.5 Undertake risk management and cost-benefit analysis for each option or idea approved
for trial

2.6 Approve innovations through agreed organizational processes

Performance improvement strategy

Performance improvement strategy is the planning to improve the strategy of the company.
The strategy which can improve the performance of the company includes the major
requirement which is diagnosing the opportunities and problems of improving performance.

a. Strategic goals

For attaining the improvement in the performance the priority which company must consider is
to identify the opportunities and the threats or problems of company. For the company XYZ
Company, the analysis of the strategic goals must be considered and the strategic goals of the
company must be understood. The strategic goals of the company refer to the targeted
objectives which the company desires to achieve in the next financial year. The strategic goals
of XYZ Company in the year were-

1. To achieve the sale of $20 million in.

2. To provide the company with huge sales and maximum profit.
3. Replace the existing employees with the new ones.
4. To introduce more lines of products.
5. To improve promotions.
b. Proposed process and amendment in process.

The proposed process of XYZ Company is the steps including design, planning, purchasing,
manufacturing, and distribution. The process includes the steps for which the company gets the
process of completing the product and sells it to the market. The amendment or the changes in
the process may include addition in the process such as the process may include the marketing
and advertising team.

The changes in the proposed process may involve the additional department of the marketing
and advertisement which is essential for the company. The process may include design,
planning, purchasing, manufacturing, marketing and advertising and distribution. These provide
the complete process which can work effectively and efficiently.

c. Brief explanations of improving performance by proposal

The new proposal to an organization will improve the performance and the competitiveness in
the effective manner as the performance of the company can be enhanced with the marketing
and the advertising team to get the new ideas and strategies to promote the products and
increase demand. The competitiveness of the product will increase in the market due to
excessive promotions the different varieties of the products could be communicated to the
customers and their ability to work on the same.  

The performance in XYZ Company can be increased with the use of new proposal. The
marketing and advertisement department can provide the company with more sales and
customer’s which will directly affect the profits and performance of the company. The
competition of the company will increase as the new method of selling the products attracts
the customers and provide them with the options of purchasing the products.

d. KRAs, KPIs, targets

The key result areas are the different outcomes which are expected to be delivered by the key
performance indicators. The key result areas are the important result space from which the
result can be provided.

The key Performance indicators are the major achievement space from which the performance
achievement can be delivered. These are various factors of the company which provide Key
performance indicators. For example-

The key result areas in the company XYZ Company for product manager who ensures the
quality of the products are customer satisfaction, management of product, control on
operational cost, quality checking. To the same person in the XYZ Company have the main key
performance indictors which are providing the good working condition, optimization of
resources, improvement in the performance and planning and control.
Management brief and Consultation

The consultation session may include the briefing the management and the strategies to the
team members. This includes the process of providing the information which is prepared by the
manager for improving performance of the company. The proposed strategies include the
addition of the marketing and advertisement department in the product development process.

This process of the company includes the company is changed with the addition of the
marketing and advertisement department. This step will provide the promotional strategy for a
product to enhance the demand of the product. This will increase the performance of the
company by increasing the sales of the company. This is the new strategy of the company to
involve new departmental exercise and provide them with enhanced performance. The
increment in sale will increase the profitability and performance of the company. This new
strategy is to be considered by the company for operating. There are certain pros and cons to
the new strategy-

Pros Cons
 It will enhance the performance of the This will make the complex process for
company. the company.

This will increase the profitability of XYZ By this, the cost of the company will also
Company. increase.

This improves brand image of XYZ This will cause long process and increases
Company. the competition of the company.

The changes and improvement in the strategy includes the addition in the process which is the
marketing and the advertisement departments which will ensures the promotions of the new
toys and enhance the demand for the same.

Lead sessions

a. Group suggestions

The group suggestions are required for options and work. The work must be allocated to the
different departments of the company. Sales teams will ensure the sales of the company,
production and manufacturing team will ensure the quality of the product. The marketing and
advertisement team will ensure the enhancement of the demand and promotional strategies.
The distribution team will ensure the storage of the company.

b. Creative techniques

The creative techniques to develop the ideas are-

Relationship marketing- this must be considered by XYZ Company to provide the satisfactory
customers relationship. The customer’s relationship must be considered in an organization. The
relationship with the customers is important to maintain to provide them better services.

Online marketing- online marketing includes the medium of internet with the help of which the
marketing and promotion of the product can be widely promoted within different parts of the
world.

Event marketing- it is to sponsor the event with the name of the company’s products. Event
marketing includes banners and the posters in certain event to promote the company and its
products.
These are some technique’s which can be used by XYZ Company for promoting and marketing
its products and enhance the demand and sales of the product.

c. Issues and problems in implying the new strategy

The new strategy in the company also provides some challenges or issues to the company. The
marketing and advertisement techniques of the project may cause some challenges such as-

1. Increased competition
2. Excessive cost
3. Reduction in profits
4. Complexity of the process

d. Accepting failure and successful ideas

In the case of successful idea and the success of the strategy, the company gets the profits and
improved performance and in the case of failure of strategy the company must consider the
contingency plans. These plans include the backup for the company if it fails in providing
success.

Risk analysis for strategy

The risk analysis is the process to identify and determine the risk analysis strategy. The risk
analysis is the assessment of the risks for the execution of the new strategy in a company. XYZ
Company must consider the risk analysis strategy which includes the four steps such as-

The four steps in the risk analysis strategy includes-

Map the strategy- In this the Company XYZ Company must map or define the goals and
mission, vision of the company to provide the achievement required by the company. The
financial perspective of the company must be considered. The customers, process, and growth
of the company must be focused while defining the goals and mapping the strategy.

Identification of risks- The next step is to identify the risk associated with the new strategy. The
identification of risk must consider the customer perspective, process perspectives and growth
perspectives to identify the risks.

Assessing risks- After the identification, the risk assessment is required by the XYZ Company. In
this, the company must assess the risk and analyze the impact of the risk on the company. The
assessment leads to the following steps such as mitigate risks, avoid risk, transferring risks and
accepting risk.

Design risk control system- To control the risk a proper designing of the risk is required. The
risk control system includes the diagnostic controls, boundary controls, and internal control.

Cost benefit analysis for strategy

The cost benefit analysis is the methods which the business decisions are analyzed. The cost
benefit analysis is used to estimate the strengths and weakness of the alternatives. The cost
benefit analysis is those which provide the company with the use of cost and benefit. The cost
benefit analysis offers the same money value for the cost and benefit of the product. The costs
and benefits of the new strategy are the improvement performance and the increased risks.

The cost and benefit of the new strategy are that the strategy to provide marketing and
advertisement department can improve the business performance and increases the
profitability but on the other hand this will increase the cost and provide the complexity of the
structure or the process of the company. This will also increases the competition in the
company and enhance new customers to the company.

Task 3

3. Implement innovative processes:

3.1 Promote continuous improvement and sustainability as essential to doing business

3.2 Address the impact of change and consequences for people and implement transition
plans

3.3 Ensure objectives, timeframes, measures and communication plans are in place to
manage implementation

3.4 Implement contingency plans in the event of nonperformance

3.5 Follow up failure by prompt investigation and analysis of causes and manage emerging
challenges and opportunities effectively

3.6 Ensure that learning from activities are captured and managed to inform future work

3.7 Regularly evaluate continuous improvement systems and processes

3.8 Communicate costs and benefits of innovations and improvements to relevant groups and
individual

Examining all aspects of the new process

The production manager at XYZ Company is planning the new process to implement it on the
organization to increase the productivity, reducing wastage and to improve the sustainability.
This will also provide the reduction in errors. The plan of the production manager is to allocate
the specialist on the individual lines. The specialization must be increased in an organization.
The other goal of the production manager is to reduce the staff turnover for which the skill
levels of the employees are to be improved and to reduce the costs in the recruiting and
training of employees.

The plan of the production manager may improve the productivity and reduce the errors which
will directly affect the performance and increases the same. The plan is to divide the workers in
five different teams. The specialty teams will be under the specialist in that work. The plan is
also to provide the targets for each team to achieve the same. This will increase in the quality
and increases the productivity. The errors will be reduced such as from 22% to 4% and
productivity to be increased till 40%. To completely improve the process and implement this
plan the production lines are closed for 48 hours during which the staff workers are trained.

This whole plan is costing much as the developmental projected cost is up to $150,000. The
implementation cost $70, 000 and retooling or re-machining the production line cost $1.2
million. With this ongoing costs of the company will be $150,000. This plan is effective and
efficient as the company gains the savings from the plan. The anticipation of the savings include
$300,000 every year from the staff turnover cost, $1 million from errors and less productivity
and $ 200,000 per year from servicing and repair cost to equipment.

The new process provides some benefits and fears to the company-

Benefits-

1. Improvement in morale
2. Increase participation in the company’s decision making.

Fears-

1. The employees will get bore on working on the same lines.

2. Lack of education of specialized knowledge
3. Reduction in productivity because of transitions.

Action plan for Transition

Activities Objectives Measures Timeframe

Implement the Implementation Maintaining 30 days

process of new process good working
conditions
 Increase To Allocate new Optimum 10 days
sustainability specialist on resource
duties utilization

Reduce negative To Reduce errors Process 30 days

impact on Improvement
people

Action plan for communication

Activities Objectives Measures Timeframe

Implement the To provide the Process 20 days

process implementation Improvement
of
communication
systems

Increase Enhance Process 10 days

sustainability communication Improvement

Reduce negative To enhance Process 20 days

impact on activities of Improvement
people communication

Contingency plans

The possible issues which can occur while implementations are to reduce errors and to provide
the communication systems set up. The implementation of the plans can provide the reduction
of errors and enhancement in the communication plans.

For the contingency plans, the company must consider these two activities which bear the risk.
The reduction of errors must be coped up with the proper and continuous training of the
workers and staff. The employees must be properly trained for the new process application to
reduce the errors. The specialist may improve the errors but will not eliminate this can only be
one with the help of training needs of the employees or workers.
The other contingency plans which can be used is for the implementation of the different
communication systems to provide the proper enhancement in the communication in an
organization. For this the company has to pay much cost as the different communication
systems installation will cost high to the company. To minimize the cost and provide better
communication in an organization the contingency plan is required.

  How long can you Impact of doing Contingency in

do without? without. case of
disaster?

Reducing errors 1 month The efficiency will Take much time

be affected and from the client
results will be to complete the
poor. project after
correcting them.

Communication 1 month The confusion and The improper

systems set up repetition may work and the
occur and can product/services
create a huge can be taken
disaster in the risk for
process maximum 1
month after that
there are no
contingencies.

Part 2- Follow up
Examining Implementation Issues and Failures

The following failures and the issues with the implementation of the new process include the
following assumptions. The issues which can occur in the eight weeks of implementation are-

1. Reduction in productivity by 8%
2. Increment in wastage by 10%
3. Delays has increased by 10%
4. 15 Employee’s resignation
5. Complaints of staff related to difficulty in handling the machines
6. Less training provides unprofessionalism.
7. Tired employees because of long working shifts.
8. Increment in injuries.
These are some of the major concerns which can affect the people in destroying the new
process implementation. The extra shifts of work can endanger the life of employees as due to
tiredness they may get affect their health. The increased waste and reduction in productivity
may increase the cost to company. The training may not sufficient which leads to
unprofessionalism to the employees. The injuries can also increase because of untrained staff
using machines. Complaints may arise which can increase the turnover of employees. These
issues affect the company to set up the new implementation process.

Amendment in action plans

Action plan for Transition

Activities Objectives Measures Timeframe In case

of
failures

Implement Implementation Maintaining 30 days 60 days

the process of new process good working
conditions

Increase To Allocate new Optimum 10 days 20 days

sustainability specialist on resource
duties utilization

Reduce To Reduce Process 30 days 60 days

negative errors Improvement
impact on
people

Action plan for communication

Activities Objectives Measures Timeframe In case

of
failure

Implement To provide the Process 20 days 40 days

the process implementation Improvement
of
communication
 systems

Increase Enhance Process 10 days 20 days

sustainability communication Improvement

Reduce To enhance Process 20 days 40 days

negative activities of Improvement
impact on communication
people

Contingency plan

  How long can Impact of Contingency in In case

you do doing case of of
without? without. disaster? failure

Reducing errors 1 month The Take much time The

efficiency from the client plan
will be to complete the will be
affected and project after failed.
results will correcting them.
be poor.

Communication 1 month The The improper The

systems set up confusion work and the plan
and product/services will be
repetition can be taken failed.
may occur risk for
and can maximum 1
create a month after that
huge there are no
disaster in contingencies.
the process

After the contingency plan fails there will be no more contingency left for a company to achieve
the results except doing it again from the first step. This will provide the company with an
option of implementing the work again.
Schedule for Evaluation and Continuous Improvement

Evaluation and the continuous improvement refer to the analyzing of the work. The
competition of the work provides the evaluation as this provides the company with the
evaluation. The evaluation and improvement can provide the company with the correct and
complete future of the company.

Schedule

Evaluation activities Regularly repeated over suitable time

To capture learning from all work Over a month

activities

To apply learning into work processes Every day if possible

Conclusion

From this report, the conclusion can be made that an organization requires proper
management of the resources as well as other aspects of an organization. Conclusion from the
above report is that an organization namely XYZ Company must have considered the different
points to provide the correct management of the branded company. The proper allocation of
resources and improper management of organization and staff reduced the productivity and
sales of an organization. The continuous improvement and innovations were ignored by the
company which resulted them into the tough situations. The company has faced the harsh
situations and financial conditions. Company has been closed due to continuous loss. The
report proposed the different factors which must have been considered by the company for its
promotion. The company must focus on various skills and opportunities which can help it to get
the success in the tough competition. For the improvement in the company, it must consider
the action plans and the contingency plans provided for the new strategy and process of
company. This will improve the working of an organization.