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    BSBMGT608

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    Aryan Singla
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    BSB61015 — Dec 2016 sessment Resource Sui | Assessment Type OQGEN ary U- 9 BSBMGT608 - Manage innovation and continuous improvement This is a summative assessment, which requires each student to have adequate practice prior to undertaking this assessment Assessment Methods Assessment 1 Projects es * Assessment2 | (Presentation & consultation Case Study session) Assessment 3 ©Gen Institute Pty Ltd Pave 2 of 37 Assessment Resource | BSBMGT608 a G E N This unit describes the skills and knowledge required to sustain and develop an environment in which continuous improvement, innovation and learning are promoted and rewarded, It applies to people with managerial responsibilities who aim to build a better and more effective work environment. Continuous improvement and innovation have links with the model of the learning organization and people working at this level play an important role in building the culture, values and attitudes of the organization, eek ‘There are no recommended pre-requisite units for this competency, eee Reece CM Oty | ‘Competence in this unit may be assessed in conjunction with other units which together form part of a holistic work role. Wepcnces Version Number | Date Reason for Rov 1.0 Feb 2016, New Course | CEO 20 ec 2016 ectcaton afar aude [ee ‘This Document isan naked propery of Gen Intiule Py. Lid A righs reso no part he pucaton may be rpraducod by any ‘moans lor use cus Gon, wou tha per writen pormision fGen nse ly Le Version: 2.0 sti age 2 of 37 Assessment Resource | BSBMGT608 oO G E N ‘Besesesoment procedure st Gan native Py Li 1 Stadentwilbe assessed es being competent only upon ssisecery completion ofa the assessments in «unt 2. tha sents not ale to demenstat satstetory completion fal ofthe requtad assessments ofthe ut, he esl for that wt willbe record ae Not Vet Compote. 3. tha sudont nas succosshty cempltad more than SO" of tho easessment task fr unt, they wl be provid wih spaciic foodoick ae inte to e-em ee assessment 4. a stant has nol successtuly compleled more than SO of he assessment ass or au, they wl be equred to undertake the unt agin 15. Inthe ease of r-sutmiin, tho flowing acne shal accu ‘+The sent must app for rosubision within one wook of the result is mado avaleblo to hrwher. This means tat the stant is responable to acknowledge tha hash hes receved the result and has been deemed NYG forthe unis of ‘compotorey undertaken ‘+ Rassossmont may need to bo aanged ding the erthcoming trm bok in odor o minirize dsupton Sor avo exta proesure onto siden rermalsliy oad oxeopt ho eno whore GEN Ings has implamonied an etawentonsatey for siden under is Cours Progiess Poly. {6 te sudontis assessed as “Not Yat Compan str the resubmission, ha or se wil be dented asa shuont-trsk and an Aesdemic Prermanee Inprovenen! (AP) Plan willbe cealed dureg an itwenton Szaiagy Moateg batween the Gen Insts ‘Operations Manager, Tranor & Ascossor and ctuort. The dat for ath aeeesement wi be nominated by tho stunt In ‘onsulabon wth Tara & Assessor, bu shoud be ne longer thant month Hom fo rovious submission dt 7. Ono -susission is alomablo per wit por stunt rae of cost Adina submissions wl be charged at $200 tte stadt romans Nt Yet Competor ator 2th r-subsrission, ho or she wl be noid that hs esl alae eo she wil be ‘Unable te succastll completa course wich thoy are erated a is Po “To eneure equity and faimess of assessment lor all shorts w-submision ectvites may vary tom Yee cighaly sat by the troreracseesor, * Dyo te the variance inthe amount ef work compatod fer each essosemant tank ng unit 0% willbe determined bythe amount of evderce submit es oppaced tothe numberof assesament asks submitnd This detorinaion ibe ade by tha Tainar& Assessor and approved bythe Operations Manager ‘Assessment appeals ‘+ Whore tudor wes to appl an aetocsmant thoy a0 roqurod to roty the askoeeor ine Hist stance, Where apprepite the assessor may docde to re-assss the student to ence a a ae equlable decsion s gain. Tho assessor shal carpe a wien ‘por regrding to re asonsemen outing the reasons why assessment wes or wasnt feta ‘+ this i otto th student's seston th student shal formal lage an appeal by subiting a wrtn lee win one wesk of rocoving he rate using tha frm 8.1 for Complaints and arpesisoutring the reasons forte sppaal. Thay eal loge ths wh ‘Stool amirisrations department ad he acpeal shel be ered ira the ‘complains and eppeas ei. +The Operations Manager shal be roiled and shal sack deus fram the assessor volved ard ary other elvan parties. A dckon shal bo made garding the appeal ethor inicang th assessment dection stands or deal ofa poosive re astacsmert by arch _ssoszorappoinad by Gon +The stunt shal be roti in wig ofthe outsome wih reasons forthe doision The stort shal also bo prvided the epi at ‘ecivatng the extral appeals process if hey ee not satcfed wih the oulcome, Te sider is required to rey Gon i thoy wch fo ‘roceod with he external appele poco, eazonsbie adhsiments Gen Insitute enatles reasonable agustments fo be mad fo assessment pronadues for stderis wih special moods, suchas poops wth Geabities or wh language or leracy dfculos. Assessing knowledge i usualy assessed trough writen or eral, shor-anower ets where astossors sock lo delorano th extant af to students knonlodga, Howave, you ay nood te doe flowing or suet wih sbi ‘Ak questions oral insted of na wen format Provide equpmont such a xt erlagor, nage enhancer, and vce recordrs. Give to stasont mare imo to completo asosemont,eboste «aarnt ba for compotion of he assaeement (fir a separa, quiet roam Mostyg providing equisment ‘caging diver statogos Ensurg ha course ates we sufcenty facta proving atonal support to student whave ncossary ‘Custom resourens anc asia witn ha Yirng package or acceded course Monitoring he adustrens fo ensure studort pede cordinuofo bo met Version: 2.0 OGen Institute Pty Ltd Page 3 of 37 Assessment Resource | BSBMGT608 oO G E N ASSESSMENT COVERSHEET “Tis om bo Ganglia by Ws ausesee nd wd a a ral een of scan crpsiney. A seni wibrisslons lod | ceeocisld choc (outined below sr obo atached ths cover shct bel placing onthe studi fle. Student resus ao eto Bo crlved oto the Sturt Database unoss slaves paperwork s comping and alachod his fxm. | ‘Student Name: Student ID: | Unit Code & | BSBMGT608 - Manage innovation and continuous improvement Subsequent =a cal First submission ed [5 : Result Please atach the fllowing documentation oti orm att Assessment 1 | Project S| NYS | NA Assessment 2 | Case Study & Presentation S | NYS | NA ‘Assessment3 |) Case Study S|NYS|NA || Final Assessment Result Yor this unit |] (Sicilia ses esoorocometet | C) competent Not Yet Competent ‘above mentoned assessments) | ms z ‘The Evidence provided is: \| Ovatid O sutticient D Authentic O Current | Student Dectaraion: To the best of mylour belt, no part ofthis assessment has ben copied / writin for mofus by any other person ‘excopt where such collaboration has been authorised by the Assessor concerned and where acknowledgement is made inthe text. No par of this assessment has boon previously submited as an assessable tem, | Student's Signature | Feedback to Student | Signature: Assessor: | declare that | have conducted a fair, valid, reliable and flexible assessment with this, student, and I have provided appropriate feedback. [ Entered onto Student Management Database a Tatas | Version: 2.0 ©Gen Institute Pty Ltd Page 4 of 37 Assessment Resource | BSBMGT608 _OGEN ASSESSMENT 1 - STUDENT INFORMATION Instructions for Students: Whilst researching and writing your project it is important to: * Read the Assessment description carefully. ‘Assessment should be in a Word format, ‘+ Assemble and analyze a set of sources that you have datermined are relevant to the issues you are investigating. * Acknowledge clearly when and how you are drawing on the ideas or phrases of others: * Consult your instructors when you are unsure about how to acknowiedge the contributions of others 10 your thought and writing, * Read the Plagiarism policy and procedure caretully to understand the consequences that you could face it your work is plagiarized, * Student can seek clarification regarding the assessment required to be done. ‘+ Students can ask for reasonable time from Assessor for preparation of project or Assessment. ‘+ Students can seek information on additional reading material and reference for completion of the assessments. ‘+ Students with special needs can seek assistance from Assessors depending upon the nature of the need. ‘+ Submit this document along with your Assessment work. Version: 2.0 ©Gen Institute Pty Lid Page 5 of 37 Assessment Resource | BSBMGT608 oO G E N Assessment 1 Performance objective To demonstrate the skills and knowledge required to review, evaluate and analyse programs, systems and processes. Assessment description Based on the case study provided, you will write a roport in which you outline a performance and sustainability review strategy, evaluate the strategy, analyse performance reports and trends, and describe how you would seek advice from specialists to identity technological solutions. Assessments instructions 1. Read the case study ‘A. C. Gilbert’ in Appendix 1 2. Analyse the information provided and prepare a report addressing the following six (6) points. 1. Desoribe the Key systems and processes used by A. C. Gilbert ‘a. supply chain b. operational systems c. product/service delivery. 2, Analyse the three key systems and processes and develop the elements of your review strategy. ‘Applying your knowledge of qually management and continuous improvement theory, develop performance and sustainability measures, assessment tools and techniques that you would use to evaluate the effectiveness of the three key systems and processes. In your report, include it applicable: ‘a. lists of key result areas (KRAs) b. lists of key performance indicators (KPIs) ca description of performance review processes: 4. sample service level agreement. 3, Using the data provided for results up to 1966, for each of the three Key systems, describe how ‘each of your measures, assessment tools and techniques would monitor performance. Include ‘specific examples or hypothetical cases to test the effectiveness of the elements of your review strategy. Write an evaluation of the effectiveness of your review strategy. Suggest improvements to your strategy. Refer to quality management and continuous improvement theory. 4, Using the data provided for results up to 1966, analyse the variances from plans and targets for the key result areas (KRAs). Include discussion on performance with regards to: ‘a. quality — desiga/manutacturing b. sales Version: 2.0 2Gen Institute Ptv Ltd Page 6 of 37 Assessment Resource | BSBMGT608 oO G E N © profit 4. supply chain performance (delivery) ©. business growth ~ staff and management performance and/or turnover. 5. Discuss trends relevant tothe organisation. What trends did A. C. Gilbert fail to identiy in the late 1950s? Consider the strengths and weaknesses of the A.C. Gilbert Company prior to 1960. Discuss the following in your report: a. market share reputation stabil profit sales abilly to adapt to change customer service standards h. innovation i. employee performance j. production and manufacturing Apply creativity skils to identity missed opportunities to improve business performance. Describe at least one missed opportunity in detail. Include an action plan for implementing the improvement in your repor. 6. Imagine the company did not close in 1967 and has somehow managed to continue operations Luntl today. Discuss the possible use of advice from specialists. What specialists could be Consulted to advise on and identify new technology or electronic commerce opportunities? Consider: a. internal ~ engineers, production staff, manufacturing staff, sales personnel, human resources personnel b. external - marketing consultants, advertising experts, engineers or designers, IT consultants, ‘8. Submit your report to your assessor as per the specifications below. Ensure you keep a copy of all work submitted for your records. ‘Submission should include ‘You must provide: ‘+ _awritten report submitted within agreed timeframe, Your assessor will be looking for: * reference to, and application of, quality management and continuous improvement theories in review strategy * Teference to and application of sustainability practices in review strategy Version: 2.0 Gen Institute Pty Ltd Page 7 of 37 Assessment Resource | BSBMGT608 analytical skills to identify improvement opportunities © demonstration of creativity skills to think laterally and identify improvement opportunities. Version: 2.0 2Gen Institute Pty Ltd Page 8 of 37 Assessment Resource | BSBMGT608 oO G E N Appendix 1 — A. C. Gilbert History 1909-1961 Alred Carlton Gilbert was an inventor and a toy manufacturer who invented the Erector engineering set. His original company, The Mysto Manutacturing Company, was founded in 1909 to manufacture the Erector set. In 1916, Mysto became the A. C. Gilbert Company and gained a reputation for producing quality toys. By the 1950s, A. C. Gilbert was one of the leading toymakers in the United States, with annual sales regularly topping $17 million. This was an outstanding achievement for a relatively small company. |n 1961, A. C. Gilbert, Senior, died, leaving the company in the hands of his son, A. C. Junior, At the lime A. C. Junior took over the firm, the company was established as a tracitional, reliable and profitable manufacturer of educational toys. Product lines and rationale ‘A.C. Gilbert produced train sets, but their most popular lines were chemistry sots, microscopes and their best seller, the Meccano-like Erector engineering sets that had been popular with chitdren for more than 50 years. ‘A.C. Gilbert toys were not cheap. They were high quality, solidly crafted and made to endure. Parts ‘and packaging were designed to last for many years, with the Erector set packaged in long-lasting metal boxes. The focus was on educational toys, primarily aimed at boys rather than ils. The ‘company had a limited range, but what they did manufacture was top-qualily and highly regarded, ‘Systems and processes A. C. Gilbert was a small company. The following model demonstrates the systems and processes in| place. Version: 2.0 QGen Institute Pty Led Page 9 of 37 Assessment Resource | BSBMGT608 Dosign Toys are designed by a small group of designers who develop the concepts for the products. ‘concepts into designs and determines resource requirements, including raw ‘materials. Planning also projects sales and develops production plans for each product, timeframes for production runs and Purchasing Information gained from planning stage used to purchase raw materials for products and packaging from suppliers. Manufacturing Produces and packages toys for distributi | Distribution | storage. | Sales Team Distribution \ scheduling of production runs, = | Delivers packaged toys to the warehouse for OGEN Retailers + Soll ne toys directly to end user Version: 2.0 ©Gen Institute Piv Lid Page 10 of 37 } Assessment Resource | BSBMGT608. oO G E N Note:These flow charts have been included for assessment purposes only, and may not accurately rellect the actual processes in place at A. C. Gilbert. History 1961-1967 ‘As the 1950s moved into the 1960s, there were huge cultural changes across the world. The fifties were a very traditional era of family values and morals, conservative and staid. Then came the “swinging sities’. The sixties were a time of rapid change both technologically and culturally. Oid- fashioned values gave way to new moral freedoms. Where the fities represented solidarity and familiarity, the sixties embraced change. Everything was bolder, brighter and more daring. A new young president and rising social activism by youth saw ‘changes in clothing, music and interests. Young people rebelled against the values of their parents and ‘embraced a more fast-paced, exciting and riskier lifestyle. Changes to the toy industry Cultural changes had a huge impact in western toy markets. Barbie and Action Man became ‘must hhave' toys. Girls moved away from baby dolls and cots and wanted dolls that were more grown up, modern and trendy. They wanted dolls they could dress in the latest fashions and who had exciting ‘careers’, boytriends and cars of their own. Boys were moving away from the traditional train sets and towards exciting new slot-car racing sets and action figures from popular movies and television shows. Traditionally, toy advertising had been done via magazine promotions, but the sixties brought in a new phenomenon: television advertising. A hugely powerful medium, TV advertising became increasingly ‘hard sell, with toys heavily promoted, especially in the lead up to Christmas. Children wanted the latest {and greatest toys that they saw in these advertisements, and they put pressure on their parents to buy, which their parents did. Retailing of toys during this period reflected a shift in retailing in general. Small, specialty retailers with experienced and knowledgeable staff were going out of business, replaced by large discount stores catering for the mass market. The goal of this type of retailer was to turn aver stack. Heavily advertised lines were in demand, and that is what they would stock. Cheap was in, and giant retailers were after a quick profit from easily saleable, inexpensive products. They weren't interested in catering to a niche market by stocking more expensive, harder to shift lines. Packaging was bright and colourful in order to attract children growing up in a world of colour TV, hhypercolour clothing and visual stimulation provided by the ewinging sixties. Effects on A. C. Gilbert As a smal, traditional company, A. C. Gilbert was slow to react to these changes. It may have been that they were not aware of the changes or were overly confident that their good name and reputation Version: 2.0 Gen Institute Pty Lid Page 42 of 37 Assessment Resource | BSBMGT608 OGEN | were sulicient to continue trading as before. The consequences of this short-sightedness soon became apparent, | 1961 (figuros approximate) | | wy Sales ‘Actual sales Difference Profit $126 milion STS milion (S11 miliony $20,077.00 This drop in sales was also reflected in a fallin the share price of the company. ‘Outcomes As a result of the falling profits and share price, the company became attractive to an opportunistic businessman, Jack Wrather. Jack Wrather was an independent television producer who had made his money producing the popular programs ‘Lassie’ and ‘The Lone Ranger’. Jack Wrather wanted to purchase a successful business and felt that in A. G. Gilbert, he had the opportunity to use his knowledge of popular entertainment and apply it to the production of toys. He purchased 52% of A. C. Gilbert for $4 million and immediately set about making | his mark on the company. A. C. Junior stayed on as Chairman but his influence was minimal. Actions taken by Jack Wrather + Set a goal to achieve sales of $20 milion in 1963. ‘+ Replaced the top A. C. Gilbert executives with his own people. + Initiated a massive advertising campaign. + Increased sales staff by 50%. «Instructed sales staff to adopt an aggressive sales approach. «Introduced 50 new toy ines, raising the ines to 307 ‘* Changed the focus from traditional boys' toys to ranges for pre-school children, and dolls and other toys aimed at girls between the ages of 6 and 14, ‘= Spent $1 million on changing the packaging forall lines to brighter, more colourful boxes. Performance report | Year Sales | Difference from | Profitioss | previous year 796i $11 milion| —_(Gi.t mony. SH0,071.00 1962 $10.9 milion | ($600,000.00) | ($24,000.00) 1965 $10.7 milion | ($200,000.00) | ($5.7 milion} 1964 $17.4 million $700,000.00, ($2.6 million) | | 1965, $14.9 million ‘$3.5 million. {$2.9 million) 1966 ‘$12.9 million ($2 milion) [_($12,872,000.00) 1967 KC. Gilbert closed (1808-1967) | Version: 2.0 ‘$©Gen Institute Pty Ltd Page 12 of 37 Assessment Resource | BSBMGT608 oO G FE N Key milostones 1962: ‘+ Jack Wrather purchased 52% of A. C. Gilbert. ‘* Replaced existing executives with his own people. Increased sales staff by 50%. ‘+ Implemented extensive television advertising. ‘= Set an organisational goal to achieve sales of $20 million for 1963 + Company recorded a loss of $281,000.00. ‘¢ Introduced 50 new lines in less than 12 months, using existing engineers and production departments who lacked training and experience in the new product range. + Repackaged existing ines at a cost of $1 million. ‘Sales and profits down on previous year. ‘Anticipated drop in profits due to expansion and cost of establishing new lines. Sales foll short of expectations, + Dectine in quality of toys — feedback indicated products poorly made and designed (dolls did not ‘even come with a change of clothing). ‘+ New range perceived by customers as poor qualily and overpriced — not value for money nor attractive to the target market. 1964: ‘+ Jack Wrather fired most of the top management team he had hired two years previously. ‘© Crisis management led to multiple changes and dramatic measures being taken and then ‘changed - offen one measure contradicting the previous. ‘+ Jack Wrather hired new CEO ~ Isaacson. ‘+ Isaacson fired the entire sales team. ‘+ Isaacson made huge cutbacks in spending. * Sales were channelled through independent manufacturer's reps, which was cheaper than Maintaining an in-house sales force. * Long-standing relationships soured as the independent reps worked on commission and pushed sales, with no interest in maintaining or building relationships with customers. * A.C. Gilbert had built its success on personal service and building relationships ~ that was destroyed within 12 months. * A.C. Gilbert Junior died and is replaced as Chaitman by Jack Wrather, Isaacson assumes the role of President. * Prior to Christmas, many of the previous year's failed products were deleted and 20 new items introduced. Version: 2.0 2Gen Institute Pty Ltd Page 13 of 37 Assessment Resource | BSBMGT608 oO G E N ‘+ Reduced the price of core lines such as the Erector set from $75 to $20, but quality also impacted ~ cardboard box instead of metal boxes, and britle parts instead of sturdy, long-lasting parts. ‘+ Sales increased and there was some degree of optimism. 1965: * Sought to capitalise on popular crazes such as James Bond and The Man from UN.C.L.E. by introducing action figures for Christmas. © Due to internal strife and staff cutbacks, the new lines were not delivered to the stores until ater Christmas. ‘© Operated on a skeleton workforce, + Duo to lack of stat, A. C. Gilbert was unable to implement changes or introduce new lines quickly enough to capitalise on trends. 1966 ‘= Inctoased advertising spending to $3 milion, ‘+ Introduced point-of purchase display products supplied to dealers free of charge. ‘+ Borrowed $6.25 milion, granted on the event that the company made a profit in 1996. ‘* Company made a loss of $12,872,000.00. 1967 «February — A.C. Gilbatt closed its doors after 58 years. Note:This case study is a true story. You may wish to read more about this organisation or to conduct additional research oniine, Reference material * Tibballs,G., 1989, Business blunders, “A. C. Gilbert: Toy Story, Robinson Publishing Ltd, pp. 43. Version: 2.0 Page 14 of 37 Assessment Resource | BSBMGT608 Oo G E N ASSESSMENT 2 - STUDENT INFORMATION Instructions for Students: Whilst researching and writing your project it is important to ‘+ Read the Assessment description carefully. ‘+ Assossment should be in a Word format. * Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating. * Acknowledge clearly when and how you are drawing on the ideas or phrases of others; ‘+ Consult your instructors when you are unsure about how to acknowledge the contributions of others. to your thought and writing ‘+ ead the Plagiarism policy and procedure carefully to understand the consequences that you could {ace if your work is plagiarized. ‘+ Student can seek clatication regarding the assessment required to be done. ‘+ Students can ask for reasonable time from Assessor for preparation of project or Assessment. ‘+ Students can seek information on additional reading material and reference for completion of the assessments. ‘* Students with special needs can seek assistance trom Assessors depending upon the nature of the need, ‘Submit this document along with your Assessment work. Version: 2.0 Gen Institute Pty Ltd Page 15 of 37 Assessment Resource | BSBMGT608 oO G E N Assessment 2 Performance objective To demonstrate the skis and knowledge required to develop options for continuous improvement. Assessment description Based on the case study provided, you will develop a performance improvement strategy, briet a team of peers on the strategy, develop the strategy and encourage innovation within the group session, and incorporate results of consultation into strategy. You will develop risk and cost-benefit analyses which you will submit to your assessor for approval. Assessments instructions 1. Read the case study ‘A. C. Gilbert’ (Appendix 1). Assume no improvements have been made and the company is stil operating in the same way today as when it closed in 1967. 2. Consider the following scenario: Your manager, as per organisational processes for continuous improvement, has asked you to develop a performance improvement strategy, brief the management team, develop the idea with the team, Seok the team’s approval and seek final approval from your manager. 3. Develop a one-page performance improvement strategy related to competitiveness. Include: a. strategic goals . description of proposed process or amendment to current process brief explanation of how proposal will improve performance and competitiveness d. KRAs, KPIs, targets. 4, Prepare to deliver a 20-30 minute management team briefing and consultation session (to students nominated by Assessor): ‘a. distribute your proposed strategies to team (team members may be other learners, or other ‘group approved by assessor) b. ask team to consider strategy, including: i. pros and cons ji, changes or improvements to stratogy ii, preparing to discuss changes or improvements at team briefing and consultation session. c. agree on a time for session (agree on time with assessor to ensure assessor can observe session). Your Assessor will record your performance in this task by using Observation Checklist One. Please review the checklist before this task so you know what is expected of you. You may refer to this checklist at any stage PRIOR to the commencement of your assessment. You must not refer to this checklist whilst you are being assessed 5. Lead session: 22. iscuss options and work through group suggestions ._ Use creative techniques to generate or develop ideas Version: 2.0 ‘OGen institute piv Lid Page 16 of 37 Assessment Resource | BSBMGT608 a G E N ©. wotk through implications of suggestions to tial them 4. encourage group to point out issues or potential problome during trialing €. ifandwhen applicable, accept fallure of ideas and recognise successtul ideas. ‘Summarise results of session and seek group's approval for amended strategy. Incorporate results of session into revised strategy. Develop a risk analysis for strategy. Develop a cost-benefit analysis for strategy Arrange a time to meet with assessor (in role of your manager) to discuss strategy, risk and cost- | benefit analyses. Explain costs and benefits. Seek approval for strategy. 11. Submit documents to your assessor as per the specifications below. Ensure you keep a copy of | all work submitted for your records. Submission should include You must provide a: ‘© one-page performance improvement strategy ‘= 20-30 minute team briefing and consultation session (team members may be other learners, or other group approved by assessor) ‘= revised one-page performance improvement strategy © written risk analysis ‘© written cost-benefit analysis. Your assessor will be looking for: * application of qualty management and continuous improvement theories in improvement strategy + demonstration of creativity and innovation theories in group consultation + appication of organisational learning principles * demonstration of cost-benefit analysis + demonstration of risk management * analytical skils to identity improvement opportunities * demonstration of creativity skills to think laterally and identify improvement opportunities that come from group ‘* demonstration of learning skils to develop options for continuous improvement © demonstration of teamwork and leadership skill to lead group session. Version: 2.0 Gen Institute Pry Ltd Page 47 of 37 Assessment Resource | BSBMGT608 a G E N Appendix 1 ~ A.C. Gilbert tory 1909-1961 AAtred Carlton Gilbert was an inventor and a toy manufacturer who invented the Erector engineering set. His original company, The Mysto Manufacturing Company, was founded in 1909 to manutacture the Erector sot. In 1816, Mysto became the A. C. Gilbert Company and gained a reputation for producing quality toys. By the 1950s, A. C. Gilbert was one of the leading toymakers in the United States, with annual sales Fegularly topping $17 milion. This was an outstanding achievement fora relatwely small compary. |n 1961, A. C. Gilbert, Senior, died, leaving the company in the hands of his son, A. C. Junior, At the time A. C. Junior took over the firm, the company was established as a traditional, reliable and profitable manufacturer of educational toys. Product fines and rationale A.C. Gilbert produced train sets, but their most popular lines wore chemistry sets, microscopes and ‘their best seller, the Meccano-like Erector engineering sets that had been popular with children for ‘more than 50 years, A.C, Gilbert toys were not cheap. They wore high quality, solidly crafted and made to endure. Parts and packaging were designed to last for many years, with the Erector set packaged in long-lasting ‘metal boxes. The focus was on educational toys, primarily aimed at boys rather than gitls. The ‘company had a limited range, but what they did manufacture was top-quality and highly regarded. ‘Systems and processes ‘A.C. Gilbert was a small company. The following model demonstrates the systems and processes in place. Version: 2.0 tit Page 28 of 37 Assessment Resource | BSBMGT608 i Design Toys are designed by a small group of Aedignars wh develop the concepts forthe | rerons, cia fav natal, Planning alco projects sles and develops procuctor lens foroneh rode torres er rosccace ane | and scheduling ef production rae Purchasing Information gained from planning stage used to purchase raw matorals for products and packaging from suppl, Manufacturing | Produces and packages toys for cistribution, { siniiccainlat ts. | Distribution | Delivers packaged toys to the warehouse for | storage, | Sales Team ution + Take orders from customers Version: 2.0 OGen Institute pry Ltd OGEN products Planning <5 | |The pinning department ransiats the concopis into designs and determines resource Rotailers ) + selltne toys sirecty to end Page 19 of 37 Assessment Resource | BSBMGT608 oO G E N Note: These flow charts have been included for assessment purposes only, and may not accurately reflect the actual processes in place at A. C. Gilbert. History 1961~1987 {As the 1950s moved into the 1960s, there were huge cultural changes across the world. The fities were a very traditional era of family values and morals, conservative and staid. Then came the ‘swinging sixties’. The sixties were a time of rapid change both technologically and culturally. Old- fashioned values gave way to new moral freedoms, Where the fifties represented solidarity and familiarity, the sixties embraced change. Everything was, bolder, brighter and more daring. A new young president and rising social activism by youth saw changes in clothing, music and interests. Young people rebelled against the values of their parents and ‘embraced a more fast-paced, exciting and riskier lifestyle. ‘Changes to the toy industry Cultural changes had a huge impact in western toy markets. Barbie and Action Man became ‘must have! toys. Girls moved away from baby dolls and cots and wanted dolls that were more grown up, modern and trendy. They wanted dolls they could dress in the latest fashions and who had exciting ‘careers’, boyiriends and cars of their own. Boys were moving away from the traditional train sets and towards exciting new slot-car racing sets and action figures from popular movies and television shows. Traditionally, toy advertising had been done via magazine promotions, but the sixties brought in a new phenomenon: television advertising. A hugely powerful medium, TV advertising became increasingly ‘hard sell, with toys heavily promoted, especially inthe lead up to Christmas. Children wanted the latest and greatest toys that they saw in these advertisements, and they put pressure on their parents to buy, which their parents did. Rotaling of toys during this period reflected a shift in retaling in general. Small, specialty retailers with ‘experienced and knowledgeable staff were going out of business, replaced by large discount stores catering for the mass market. The goal ofthis type of retaller was to tutn over stock, Heavily advertised lines were in demand, and that is what they would stock. Cheap was in, and giant retailers were after a quick profit from easily saleable, inexpensive products. They weren't interested in catering to a niche ‘market by stocking more expensive, harder to shif lines. Packaging was bright and colourful in order to attract children growing up in @ world of colour TV, hypercolour clothing and visual stimulation provided by the swinging sixties. Effects on A. C. Gilbert ‘As a small, traditional company, A. C. Gilbert was slow to react to these changes. It may have been that they were not aware of the changes or were overly confident that their good name and reputation Version: 2.0 Gen Insitute Ply Lid Page 20 of 37 Assessment Resource | BSBMGT608 oO G E N ‘were sufficient to continue trading 2s before. The consequences of this short-sightedness soon became apparent. 1961 (figures approximate) LY Sales. Actual sales Difference Profit S126 millon S115 milion (Si milion) $20,017.00 This drop in sales was also reflected in a fall in the share price of the company. ‘Outcomes ‘As 2 result of te falling profits and share price, the company became attractive to an opportunistic businessman, Jack Wrather. Jack Wrather was an independent television producer who had made his money producing the popular programs ‘Lassie’ and ‘The Lone Ranger’ Jack Wrather wanted to purchase a successful business and felt that in ‘A.C. Gilbert, he had the opportunity to use his knowledge of popular entertainment and apply it to the production of toys. He purchased 52% of A. C. Gilbert for $4 millon and immediately set about making his mark on the company. A. C. Junior stayed on as Chairman but his influence was minimal. + Replaced the top A. C. Gilbert executives with his own people. ‘© Changed the focus from traditional boys’ toys to ranges for pre-school children, ‘and dolls and other toys aimed at girls between the ages of 6 and 14. * Spent $1 million on changing the packaging forall lines to brighter, more colourtul boxes. Performance report | Year Sales Difference from | Profit | Previous year Toei S015 millon) (61.1 millon) $20,011.00 1962 $10.9 millon | ($600,000.00) | ($28,000.00) | 1963 $10.7 milion | (§200.000.00) | ($5.7 milion) 1964 $11.4milion| $700,000.00 $2.6milion) 1965 $14.9 milion 33.5 milion ($2.9 milion) 1966 $12.9 milion ($2 milion) | ~($12,872,000.00) 1967 AO. Gilbert closed (19081967) Version: 2.0 Page 23 of 37 Assessment Resource | BSBMGT608 oO G E N Key milestones 1962: © Jack Wrather purchased 52% of A. C. Gilbert ‘+ Replaced existing executives with his own people. © Increased sales staif by 50%. ‘+ Implemented extensive television advertising. ‘* Set an organisational goal to achieve sales of $20 million for 1963. ‘+ Company recorded a loss of $281,000.00. ‘+ Introduced 50 new lines in less than 12 months, using existing engineers and production departments who lacked training and experience in the new product range. ‘+ Repackaged existing lines at a cost of $1 milion. 1963: ‘Sales and profits down on previous year. ‘© Anticipated drop in profits due to expansion and cost of establishing new lines. # Sales fell short of expectations. * Decline in quality of toys — feedback indicated products poorly made and designed (dolls did not even come with a change of clothing). + New range perceived by customers as poor quality and overpriced — not value for money nor alractive tothe target market. ‘© Jack Wrather fired most of the top management team he had hired two years previously. | 1964: | | ‘© Crisis management led to multiple changes and dramatic measures being taken and then | changed ~ offen one measure contradicting the previous. ‘*| Jack Wrather hired new CEO — Isaacson. Isaacson fired the entire sales team. ‘» Isaacson made huge cutbacks in spending. ‘= Sales wore channelled through independent manufacturer's reps, which was cheaper than ‘maintaining an in-house sales force. ‘+ Long-standing relationships soured as the independent reps worked on commission and pushed sales, with no interest in maintaining or building relationships with customers, ‘+ A.C. Gilbert had built its success on personal service and building relationships ~ that was destroyed within 12 months. * A.C, Gilbert Junior died and is replaced as Chairman by Jack Wrather. Isaacson assumes the role of President ‘+ Prior to Christmas, many of the previous year's failed products were deleted and 20 new items introduced, Version: 2.0 Page 22 of 37 Assessment Resource | BSBMGT608 oO G E N ‘+ Reduced the price of cote lines such as the Erector set trom $75 to $20, but quality also impacted ~ cardboard box instead of metal boxes, and brite paris instead of sturdy, long-lasting parts. ‘* Sales increased and there was some degree of optimism. 1965: | | + Sought to capitalise on popular crazes such as James Bond and The Man from U.N.C.LE. by | introducing action figures for Christmas. ‘¢ Due to internal strife and staff cutbacks, the new lines were not delivered to the stores until after Christmas. ‘+ Operated on a skeleton worktorce | + Due to lack of staff, A. C. Gilbert was unable to implement changes or introduce new lines quickly ‘enough to capitalise on trends. 1986 ‘+ Increased advertising spending to $3 milion. «Borrowed $6.25 millon, granted on the event that the company made a profit in 1996. © Company made a loss of $12,872,000.00. | «Introduced point-of-purchase display products supplied to dealers free of charge. | 1967 ‘+ February — A. C, Gilbert closed its doors after 58 years. Note: This case study is a true story. You may wish to read more about this organisation or to conduct | additional research online, Reference matorial ‘+ Tibballs, G., 1999, Business blunders, ‘A. C. Gilbert: Toy Story’, Robinson Publishing Ltd, pp. 43. Version: 2.0 ©Gen Institute Pty Ltd Page 23 of 37 Assessment Resource | BSBMGT608 a G E N ASSESSMENT 3— STUDENT INFORMATION Instructions for Students: ‘Whilst researching and writing your project itis important to: ‘+ Read the Assessment description carefully * Assessment should be in a Word format ‘+ Assemble and analyze a set of sources that you have determined are relevant to the issues you are investigating + Acknowledge clearly when and how you are drawing on the ideas or phrases of others; ‘Consult your instructors when you are unsure about how to acknowledge the contributions of others to your thought and writing. ‘+ Read the Plagiarism policy and procedure carefully to understand the consequences that you could face if your work is plagiarized. ‘Student can seek clarification regarding the assessment required to be done. ‘+ Students can ask for reasonable time trom Assessor for preparation of project or Assessment. ‘+ Students can seek information on additional reading material and reference for completion of the assessments. ‘+ Students with special needs can seek assistance from Assessors depending upon the nature of the need. ‘+ Submit this document along with your Assessment work, Version: 2.0 2Gen Institute Pty Ltd Page 24 of 37 | Assessment Resource | BSBMGT608 a G E N | ASSESSMENT 3 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 Appondix 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. 1. Tum 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. 3. Develop action plans for 1) transition, and 2) communication. In each action plan, include: ‘a. activities, objectives, measures (KPIs), timeframes. . activities to promote the process and sustainability c. activities to reduce any negative impact on people. ‘4. Develop at least two contingency plans related to possible implementation issues you foresee in relation to activities in your action plans. 5. Review ‘Part 2— Follow up’. Examine implementation issues and failures. 6. Amend your action plans and contingency plans to address implementation failures. 7. Develop a schedule for evaluation and continuous improvement. Include regularly scheduled: evaluation activities, regularly repeated over a suitable timeframe b, evaluation activities to capture learnings from all work activities ©. activities to embed learning into work processes. 8. Submit documents to your assessor as per the specifications below. Ensure you keep a copy of ee | (eae ae ‘Submission should include You must provide: plans for transition, communication © act ‘© 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 Version: 2.0 QGen Institute Pty Ltd Page 25 of 37 ne ee Assessment Resource | BSBMGT608 a G E N ‘© evaluation and continuous improvement schedule. Your assessor wll 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 identity improvement opportunities based on data in case study ‘+ demonstration of creativity skills to think laterally and identity 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, Version: 2.0 Gen institute Pty Ltd Page 26 of 37 Assessment Resource | BSBMGT608 oO G E N 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 successtully 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 ines. ‘A secondary goal is to reduce staff turnover from an average of 32% per annum to 20% per annum, thus improving the skil 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 casos 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. Curtent error rates are at 22%. To incorporate this change, production lines will be closed for 48 hours for retooling. During this poriod, 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. Version: 2.0 2G60n Institute Pty Lt Page 27 of 37 Assessment Resource | BSBMGT608 oO G E N Costs Its projected that the costs incurred for the change will be: Development costs ital ial $150,000 Implementation costs ‘© Retooling the production ine ‘$1.2 milion | © Training $20,000 © Loss of productivity ‘$50,000 ‘Ongoing costs *Inital errors and reduced productivity ‘$150,000 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 millon 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 identiied. There were intial fears that staff would become bored and complacent, continually producing the same lines. Analysis during the pilot {found that, afer the frst week, staff became quite ‘proud’ of their output and felt a degree of ownership {or 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 ake 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 @ 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 being asked to do a management job and should be paid accordingly. Management fear there could be some industrial relations implications. Other concems revolve around productivily levels during the transition. Its understood that it will take some time for employees to operate at full productivity, as they will be working on new production lines Version: 2.0 2Gen Institute Pty Ltd Page 28 of 37 = ail Assessment Resource | BSBMGT608 oO G EN and ditferent products. Concems that deliveries won't be met and customers will be disadvantaged are key concems for management. From a technology standpoint, the new production lines willbe faster and more efficient. Howover, the current service technicians are used to the old lines and lack the experience to service and maintain the ‘Rew equipment. itis possible that breakdowns could impact on production targets. Part 2— Follow-up Make the folowing assumptions: * The new program has been in place for eight wooks withthe following outcomes: © productivity has decreased by 8% to 66% | © delays on the line have increased by 10% © waste has increased by 10% efor rates have fallen by 2% to 20% 15 out of 300 staff have resigned since the new program was introduced, including two shift | supervisors, * Alter 16 wooks: © productivity remains at 66% © delays on the lines have improved and are now at pre-change levels © ror rates have remained steady at 20% © Stal levels have remained steady ‘+ The following comments were raised ata staff forum held two months after the iplementation, © New machines are very different; taining 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 sustainabilly, 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. © 12-hour shifts were introduced to keep teams together but they are causing difficulties for staff with regards to managing their families. Version: 2.0 QGen Institute Pry Ltd Page 29 of 37 ye Assessment Resource | BSBMGT608 a G Ee N © Longer shifts are also resulting in people becoming tired and making errors. © The OHS representative is concernedthat injuries might increase as a result. Version: 2.0 ©2Gen Institute Pty Ltd Page 30 of 37 Assessment Resource | BSBMGT608 __OGEN OBSERVATION CHECKLIST 1 - ASSESSMENT 2 Student Name: Student ID No: Date observed: Observation Checklist ONE Did the student satisfactorily: Dallver @ 20-0 minute team briefing and consultation sossion Tes ONO Bret groups on performance Improvement stralegies and innovation Tes CINo Use creative techniques to draw ideas from group Yes No Demonstrate your oral communication skills Yes No Use questioning and listening techniques Tes CNo Demonstrate competent exchange of information ‘Yes No Use appropriate conventions and protocols Yes ONo ‘Comments Result: Satisfactory | Not Yet Satisfactory Signature: Assessor: | declare that | have conducted a fair, valid, reliable and flexible assessmont with this student, and I have provided appropriate feedback Not Assessed Sionature: Student: | declare that | have been = ‘assessed inthis unit, ina fair and fexible manner. | have been provided with foodback ‘on my performance Version: 2.0 2Gen Institute Pty Utd Assessment Resource | BSBMGT608 oO G E N ASSESSMENT 1 - ASSESSOR CHECKLIST | [Student Name: | | Student ID No: ‘© operational systems ‘» product! service delivery? Develop perfomance measures, assessment tools and techniques to evaluate the performance and sustainability of key systems and processes? For example: KRAs: © customers financials © people » processes KPIs: Include measures relating to: «sales budgets «profit budgets «staf retention + quality standards © production times Did the Student: Satisfactory ‘Submit a written report? Yes 5.No ‘Submit report in agreed timeframe aYesoNo || Performance indicators Establish strategies to monitor and evaluate performance and sustainability for key syslems and processes: supply chain Yes 01 No 0 Yes C1No en Evaluate effectiveness of review strategy? Including «use elements of review strategy ‘+ use hypothetical examples to demonstrate the effectiveness or inadequacy of tools Yes No Version: 2.0 Page 32 of 37 Assessment Resource | BSBMGT608 a G E N | "> suggest improvements to strategy. ‘Analyse performance reports? Identify trends? Yor No ‘Yes No ‘Analyse the company for strengths, for weaknesses, and to identify opportunities? © Identity strengths Identify weaknesses ‘+ Identity opportunities Identity threats Taentily appropriate sources of formation and assistance? «internal = extemal Comments Result: Satisfactory | Not Satisfactory | Not Assessed Yes O1No Yes No ‘Assessor: | declare that | have conducted a fair, —enahsamy SEanta ccatad valid, reliable and flexible assessment with this student, and I have provided appropriate feedback. ‘Student Declaration: | deciare that | have been assessed in this unit, and I have been advised of my result. | also am aware of my appeal rights. Version: 2.0 Page 33 of 37 ASSESSMENT 2- ASSESSOR CHECKLIST Assessment Resource | BSBMGT608 oO G fe N | [Student Name: ‘Student ID No: | | Did the student: Provide a one-page performance improvement strategy? Yes 51 No Satisfactory Deliver a 20-20 minute team briefing and consultation session? 0 Yes 31 No Provide a one-page performance improvement stiategy? <1 Yes 3 No Meet with assessor for approval? 11 Yes 5 No ‘Submit awrtien risk analysis? Yes 01 No [esau ‘© encouraging group to point out issues or potential problems during trialling? ‘Submit a written cost-benefit analysis? O1Yes 5No ‘Submit all assessment materials in agreed timeframe? Yes 01 No Performance Indicators ——— Brief groups on performance improvement strategies and innovation as an essential element of competition by: = distributing proposed strategy to management group YestyNo + Including explicit reference to competitiveness. + _ identifying a clear tie to competitiveness? | | Foster creative climate and organisational learning through the promotion of nen interaction within and between workgroups? ae Encourage, test and recognise new ideas and entrepreneurial behaviour where successful, such as: | ‘+ working through implications of ideas and group suggestions in order to test and demonstrate effectiveness Yes No Version: 2.0 ‘Gen institute Pty Lt Page 34 of 37 Assessment Resource | BSBMGT608 oO G E N Accept falls of an idea during trialing, and recognise, celebrate and embed Suscess into systems through means such as: ‘= 2ccepting changes to proposal based on feedback trom session approved for trial? Approve innov is through agreed organisational processes, ‘+ seeking approval for strategy {rom team. '* seeking approval for strategy from own manager? ‘Communicate costs and benefits of innovations and improvements to all relevant ‘groups and individuals: '* producing a cost-benefit analysis for group-approved strategies ‘*

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