BSBMGT608 – Manage innovation and continuous improvement

ASSESSMENT TASK 2

PART A

Report on current processes and systems

An introduction about the project
Table of contents
Main body of the report covering following Topics in appropriate details
 Strategies to monitor and evaluate performance and sustainability systems and
processes currently in place in the organisation
 Recommendation on the inventory management system that would best suit the
company given in the case study.
 Outcomes of evaluation of current systems
 Assessment tools and techniques based on given case study that will be most
effective.
 Changing trends and opportunities relevant to the Inventory management system
and e-commerce software appropriate for the company specified in the case study.
Summary and review
Glossary

References

Report on current processes and systems

Premier Rock Machinery

Developed by Navraj Singh

September 28th 2020
Version 1

Disclaimer and Acknowledgement

Navraj Singh developed this document in accordance with current laws and information
provided by Premier Rock Machinery and research. The document is the result of the ideas and
words of its creator.

Introduction

This document aims to present an analysis of the current processes and systems of the
company Premier Rock Machinery, in order to identify points of improvement and recommend
software more appropriate to the company's inventory management.

List of Symbols

PRM: Premier Rock Machinery

Table of contents

❖ Current process and system analysis

❖ Continuous Improvement Strategies
❖ Recommendation on the inventory management system
❖ Outcomes of evaluation of current systems
❖ Trends
❖ Assessment tools and techniques
Current process and systems analysis

Currently PRM does not have an inventory management system, so a system must be
implemented in order to solve the problems of extra stock, problems in tracking suppliers' names
and addresses and minimum visibility of the supply chain.
On the other hand, the company is known for its good after-sales service and customer
support.
Faced with the strategic decision to launch an e-commerce, the company also needs a
suitable system to implement, monitor and control online operations.

Continuous Improvement Strategies

1. Follow the right performance indicators

Performance indicators or process indicators are the key to success for many companies that wish to
work with a focus on innovation. They are key to measuring the results presented during and after
the implementation of certain strategies. There are several types of process indicators and each is
focused on measuring performance in some area of the organization. So first find out what you need
to measure and then choose the process indicator that best fits your needs. Below-expected results
will indicate flaws in the strategy and give valuable clues about what needs to be improved.

2. Do a SWOT analysis of your business

SWOT analysis (Strength, Weaknesses, Opportunities, Threats) is a powerful tool widely used by
specialized consultancies to focus on improving organizational performance. Through it, you can
identify and strengthen your internal forces, discover and correct operational and managerial
failures, create action plans aimed at optimizing the market opportunities and neutralizing possible
risks to the business internally and externally. Most managers do this analysis only at the opening of
the company, but it needs to be done periodically to ensure the sustainable development of the
business, since the market is constantly changing and the company needs to follow up.

3. Establish a continuous improvement strategy (PDCA)

Another amazing and widely used tool for project management is the PDCA (Plan, Do, Check,
Action). It is possible to carry out rapid interventions to the points of negative impacts, to analyze
the cost of the production cycle with a greater degree of precision, to develop plans of preventive
and corrective action, to optimize the productive processes and to promote continuous
improvement of the performance. With the help of innovative technologies and techniques, the
strategy can adapt the organization to have the best response to change.

4. Structure your organization with Canvas

Canvas is a framework of Business Model that allows us to structure the company more optimally by
adding greater agility in production and improvement in operating results. It is an important
strategic management tool that cannot be ignored. It composes the group of new techniques used in
business management and acts with focus on results giving greater flexibility to the business to have
a good reaction to the changes.

Recommendation on the inventory management system

Shipedge Inventory Management

Shipedge is a cloud-based Supply Chain Solution that helps 3PL warehouses, distribution
centers and eCommerce companies run efficient order fulfillment operations. Complete inventory
control with channel automations (selling channels, suppliers, & shipping carriers).
Allows us to monitor inventory from anywhere, use forecasting for replenishments, and
eliminate dead stock. They cover lot control, serial numbers, expiration dates, returns, and
exchanges. Designed with ecommerce pain points in mind.
Complete visibility across our supply chain: when it comes time to pick and pack, Shipedge
uses channel information to monitor current inventory levels. Pick and pack with ease and the
assurance that everything in our warehouse is optimal located to reduce labor cost and increase
accuracy.

Outcomes of evaluation of current systems

Performance measures
Defining performance indicators is one of the pillars for creating a business strategy. After
all, once the goals and objectives are defined in strategic planning, indicators are one of the most
important steps for reaching them.
However, the company also needs to be careful when choosing which factors will be
measured and how each indicator will be measured. All of this must be closely linked to what each
of them needs to help achieve in terms of reaching goals.

Performance reports
The reports make it possible to create indicators and monitor the results in a very simple
way, making strategic decisions and corrective actions easier. It should also be used to support
planning, formulate the company's future goals, and the need for employee training.

Trends

- Chatbots will become a standard part of the e-commerce toolkit.

The chatbots are changing the e-commerce consumer experience for the better, and this will
only continue in 2020. They remove a lot of friction from the customer's standard journey, which is
why 48% of consumers prefer to connect to a company via live chat than any other medium of
contact according to Hubspot, and 35% of consumers want to see more companies using chatbots
according to Ubisend.

- Manufacturers will engage directly with consumers.

The Direct-to-Consumer (DTC) trend will continue in 2020 and in the coming years.
Manufacturers such as Unilever and Casper have already begun to take advantage of digital
experience platforms, social media and general online marketing to reach their customers directly.
Smart home assistants and voice recognition systems will emerge as a new battleground for
e-commerce.
According to eMarketer, in 2017, 35.6 million Americans used a voice-activated device at
least once a month - an increase of 128.9 percent over 2016. In addition, if you think 2018 will bring
anything beyond of growth for this market, you need to rethink.
Amazon's Echo, Google's Home, and Apple's Homepod will drive the industry, driving e-
commerce brands with the task of migrating to these new channels with customer experiences with
voice experience.

Assessment tools and techniques

PDSA

The PDSA approach, sometimes called the Deming Wheel, is based on the scientific method,
which addresses problems through hypothesis (planning), experimentation (do) and evaluation
(study). In business, the output of a successful PDSA cycle is a new standard that institutionalizes
continuous improvement. The cycle can start over and additional improvements can be achieved.

A PDSA cycle includes:

Plan
During this phase, it is important not to jump into the solution; in fact, it is often said that half the
time in a PDSA improvement cycle should be spent at this stage. Therefore, the plan should identify
the individuals who will be involved in the improvement test and those who will be affected by it and
should include a timeline and a communication plan.

Of
Once you have completed the planning phase and made a choice about specific changes that should
lead to measurable improvements, the "do" step can begin. This part of the cycle should be
considered experimental - so, as in a scientific experiment, careful observation and data collection
are as important as action itself.

Study
The study stage is arguably the most important of the PDSA cycle, during which the results of the
experimental improvement are compared with the hypothesis. Thus, we seek to be sure that there
were no side effects created by the change. Therefore, the data collected is analysed to determine
whether a measurable improvement has been achieved and whether it meets the expectations
defined in the planning phase.
Act
If the study phase reveals that the change was implemented as expected and resulted in early
improvement (without causing any further problems), then you can start adjusting. The improved
process becomes the new baseline for future processes. In addition, standard working documents
are adjusted to include change and performance expectations can be modified.

Critically, the cycle is then repeated in relation to the new process and further improvements can be
achieved.

The 5 Whys

The 5 whys is a technique to find the root cause of a problem. The 5-why practice is
implemented when a problem arises and a team wants to find and correct not just the symptom but
also the root cause of the problem. A problem statement is created, and then the team simply asks
"Why?" Until the root, cause is revealed. The actual number of "whys" needed varies, but five seem
to be right.

Summary and review

The company has good practices already implemented, but some adjustments are
necessary, such as the implementation of an inventory system that will fulfill the performance gaps
identified.
Analyzing trends and a specialized consultancy are recommended for the development of
e-commerce to achieve the established specifications.

References

● https://www.thinkperform.com.au/continuous-improvement-strategies/

● https://blog.creativesafetysupply.com/want-results-10-continuous-improvement-strategies-
that-work/
● https://materiais.rockcontent.com/ecommerce-trends
● https://blog.kainexus.com/continuous-improvement/11-rapid-continuous-improvement-
tools-and-techniques-explained