Assessment Task 3 BSBMGT608 Manage innovation and continuous

improvement

Implement innovative
processes
Submission details

Candidate’s name Francisco Villarosa Phone no.

Assessor’s name Satish Ramtohul Phone no.

Assessment site ADL

Assessment
July 17 2020 Time/s
date/s

The assessment task is due on the date specified by your assessor. Any
variations to this arrangement must be approved in writing by your
assessor.
Submit this document with any required evidence attached. See
specifications below for details.

Performance objective
To demonstrate the skills and knowledge required to implement innovative
processes.

Assessment description
Based on part 1 of the case study provided (see Appendix 1), you will
develop an implementation plan to embed a new process. Based on part 2
of the case study (see Appendix 1), you will need to amend your plan to
ensure success.

Procedure
1. Turn to the case study ‘Implement an innovative process’ (Appendix
1).
2. Review ‘Part 1 – Implementation’. Examine all aspects of the new
process to be implemented.
The production manager at A.C. Gilbert 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

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 1 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

provide the reduction in errors. The plan of the production manager is

to allocate the specialist on the individual lines. The specialisation
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 new process provides some benefits and fears to the company

Benefits

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

Fears

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

 Lack of education of specialised knowledge
 Reduction in productivity because of transitions.

3. Develop action plans for 1) transition, and 2) communication. In each

action plan, include:
a. activities, objectives, measures (KPIs), timeframes
b. activities to promote the process and sustainability
c. activities to reduce any negative impact on people.

Action plan for Transition

Objective is lower down the staff turnover from 32% to 20%A

Activities By Who KPI’s By When

Provide Hr Manager Turn over down 12 months

training to to 20%
improve skill Production
level Manager Report of shifts
12 months
Provide flexible Availability
shift hours

Shift breaks 12 months

Financial report
Reduce costing
in recruiting or
training new
staff

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 2 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

Action plan for communication

Audience Message Timeframe Person

Responsible

Stakeholder To increase 1 month Production

company’s manager
Production productivity
Manager
Increase
Production product
Staff knowledge

Stable of roster
shifts to
enhance staff
productivity

4. Develop at least two contingency plans related to possible

implementation issues you foresee in relation to activities in your
action plans.

Risk Likelihood Impact Contingency action

Difficulties in Medium High Provide training on

handling new hand
machines
Giving safety
procedures to avoid
injuries

Providing work
processes to
production workers

Inability to do Medium High Provide more

targets goals training on goal
settings

Product knowledge.

Training using
SMART GOALS

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 3 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

5. Review ‘Part 2 – Follow up’. Examine implementation issues and

failures.

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

 Reduction in productivity by 8%
 Increment in wastage by 10%
 Delays has increased by 10%
 15 Employee’s resignation
 Complaints of staff related to difficulty in handling the
machines
 Less training provides unprofessionalism.
 Tired employees because of long working shifts.
 Increment in injuries

6. Amend your action plans and contingency plans to address

implementation failures.

Action plan for Transition

Action By who By when

Objective HR manager 8 Months

To maintain staff Production Manager

turnover below 5%

Activities

- WHS PowerPoint
Presentation

- Training induction

- Provide more
training to
improve skill level

- Product
knowledge

- Training for
equipment

- Policies and
Procedures

- Provide flexible

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 4 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

shift to workers

- Provide breaks for

shifts

- Reduce cost in
recruiting and
training new
employees

Action plan for communication

Audience Message Timeframe Person

Responsible

Stakeholder To increase 1 month Production

company’s manager
Production productivity
Manager
Increase
Production product
Staff knowledge

Awareness of
WHS by giving
breaks of shifts
avoiding
injuries

Training on
equipment to
ensure fast
processing and
productivity

Stable of roster
shifts to
enhance staff
effiency

Contingency plan

Risk Likelihood Impact Contingency

action

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 5 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

Difficulties in Medium High Provide training

handling new on hand
machines
Demo usage of
the new
machines

Giving safety
procedures to
avoid injuries

Producing of
lock out tags

Providing work
processes to
production
workers

Inability to do Medium High Provide more

targets goals training on goal
settings

Product
knowledge

Giving
handouts/copies
to employees
containing goals
and processes
etc.

Training using
SMART GOALS

Communication

Audience Message Timeframe Person

Responsible

Production Use, benefits Within 24 Production

staff and drawbacks months Manager
of new
machines and
Processes work processes
workers of
Able to
each product
comprehend
line
certain goals,

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 6 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

able to reach
targets and
identify errors
easily
Product
knowledge
Machine
mastery usage
Beneficial
experience for
workers since
training was
conducted for
new machines

Production Settings work Within 24 Production

staff targets in months manager
percentages
Processes
and linking to
workers
day to day
work
Flexible rooster
to boost
workers
efficiency
WHS induction
and training to
avoid injuries

7. Develop a schedule for evaluation and continuous improvement.

Include regularly scheduled:
a. evaluation activities, regularly repeated over a suitable
timeframe
b. evaluation activities to capture learnings from all work activities
c. activities to embed learning into work processes.

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 7 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

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 A.C. Gilbert 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 from the year 1961 to 1966. In the year 1967 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.

8. Submit documents to your assessor as per the specifications below.

Ensure you keep a copy of all work submitted for your records.

Specifications
You must provide:
● action plans for transition, communication

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 8 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

● two contingency plans related to transition and communication action

plans
● amended action plans and contingency plans based on data in part 2
of the case study
● evaluation and continuous improvement schedule.

Your assessor will be looking for:

● application of quality management and continuous improvement
theories to planning and scheduling activities
● application of creativity and innovation theories to scheduling
evaluation and continuous improvement
● application of organisational learning principles to continuous
improvement planning
● application of sustainability practices to planning/revising plans

● analytical skills to identify improvement opportunities based on data

in case study
● demonstration of creativity skills to think laterally and identify
improvement opportunities to revise activities based on data in case
study
● demonstration of learning skills to develop options for continuous
improvement from data in case study.

Adjustment for distance-based learners

● No variation of the task is required.

● A follow-up interview may be required (at the discretion of the

assessor).
● Documentation can be submitted electronically or posted in the mail.

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 9 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

Appendix 1– Implement an
innovative process
Part 1 – Implementation
John Jones, a Production Manager at A. C. Gilbert, has developed an idea
for improving efficiencies in the manufacturing process at A. C. Gilbert. The
idea came as a result of the innovative ideas program, and John has
successfully trialled the program on one line in the processing plant.
The program has been evaluated and found to be successful, and you are
now in the process of implementing the program company-wide.

Overview of the program

The goal of the program is to increase productivity, reduce waste, improve
sustainability, and reduce errors on production lines by 20% by allocating
specialist team members to individual lines.
A secondary goal is to reduce staff turnover from an average of 32% per
annum to 20% per annum, thus improving the skill levels and efficiencies
of the plant and reducing costs in recruiting and training new staff.
Production staff and process workers will be divided into five different
teams. Each team will be responsible for the manufacturing of five product
lines. Team members will only work on their specialty line, and rosters will
be altered to ensure adequate staff on each line during the 12-hour
production cycle. This may involve changes to staff rosters, in some cases
by implementing 12-hour shifts, but will not impact on earnings or result in
the loss of any hours of work.
John also suggested involving teams in goal setting and objective setting
for their own product lines. Each month they meet to develop production
and error rate projections for the next, with a goal to continuously improve
both rates to achieve a maximum of 4% error rate and a 40% increase in
productivity within 24 months. Current error rates are at 22%.
To incorporate this change, production lines will be closed for 48 hours for
retooling. During this period, staff will be re-trained in the production of
their designated lines by shift supervisors. Training required will include
technical training, motivational training and quality control procedures
along with goal and objective setting workshops.

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 10 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

Costs
It is projected that the costs incurred for the change will be:

Development costs
● Initial trial $150,000
Implementation costs
● Retooling the production line $1.2 million
● Training $20,000
● Loss of productivity $50,000
Ongoing costs
● Initial errors and reduced $150,000
productivity

Anticipated savings
By implementing the above measures the following savings have been
budgeted:
● savings of $300,000 per annum in staff turnover costs

● savings of $1 million per annum in lost productivity and errors

● savings of $200,000 per annum in service and repairs costs to

equipment.

Benefits and concerns

During the trial, a number of advantages and concerns were identified.
There were initial fears that staff would become bored and complacent,
continually producing the same lines. Analysis during the pilot found that,
after the first week, staff became quite ’proud‘ of their output and felt a
degree of ownership for the lines they were responsible for. Morale
improved in a team environment.
Employees were initially reluctant to participate in setting their own error
and productivity targets. They tended to overestimate the percentages
and did not wish to commit to large improvements. Managers feel it will
take some time and training in understanding the financials and
operational reports for them to set realistic targets.
Many employees lack formal education and some have limited English,
which was also an area of concern when trying to involve them in what
they perceived to be ‘management decisions’. This style of management is
a huge change in the workplace. Most employees were used to being
lectured for making mistakes, rather than encouraged to participate in
decision-making and feeling like they have some ownership of the process
and outcomes. There is some reluctance and anxiety involved and a
degree of resistance from some long-term employees, who feel they are

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 11 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

being asked to do a management job and should be paid accordingly.

Management fear there could be some industrial relations implications.
Other concerns revolve around productivity levels during the transition. It
is understood that it will take some time for employees to operate at full
productivity, as they will be working on new production lines and different
products. Concerns that deliveries won’t be met and customers will be
disadvantaged are key concerns for management.
From a technology standpoint, the new production lines will be faster and
more efficient. However, the current service technicians are used to the
old lines and lack the experience to service and maintain the new
equipment. It is possible that breakdowns could impact on production
targets.

Part 2 – Follow-up
Make the following assumptions:
● The new program has been in place for eight weeks with the following
outcomes:
○ productivity has decreased by 8% to 66%
○ delays on the line have increased by 10%
○ waste has increased by 10%
○ error rates have fallen by 2% to 20%
○ 15 out of 300 staff have resigned since the new program was
introduced, including two shift supervisors.
● After 16 weeks:

○ productivity remains at 66%

○ delays on the lines have improved and are now at pre-change
levels
○ error rates have remained steady at 20%
○ staff levels have remained steady.
● The following comments were raised at a staff forum held two months
after the implementation.
○ New machines are very different; training was not sufficient.
○ Employees feel that figures don’t mean much to them – they are
struggling to understand what % rates have to do with their day-
to-day workload.
○ Employees understand the importance of sustainability, but
have no idea how to apply sustainable practices to workplace or
amend own work practices to make them more sustainable.
○ New rosters have been unpopular with some employees.

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 12 of 13
Assessment Task 3 BSBMGT608 Manage innovation and continuous
improvement

○ 12-hour shifts were introduced to keep teams together but they

are causing difficulties for staff with regards to managing their
families.
○ Longer shifts are also resulting in people becoming tired and
making errors.
○ The OHS representative is concerned that injuries might
increase as a result.

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1
Page 13 of 13