Assessment 1

Report:

A.C. Gilbert Company founded by the inventor and toy manufacturer Alfred Carlton Gilbert
who invented the Erector engineering set. In 1916, A.C. Gilbert name was given to the
company Mysto which was founded in 1909 for manufacturing Erector set. It was one of the
leading manufacturers of toys in the United States known for its high quality products. Their
main focus was on producing educational toys and most popular range included chemistry
sets, microscopes and erector sets.

It was once seen as one of the greatest and most prominent toy associations in the world. The
association is without any doubt known for dispatching the Erector Set and producing high
quality toys. Supply Chains Management was adopted way in which activities were
coordinated, which connected the stream and change of items from the unrefined materials
stage to the end-customer. Apart from this, it dealt with information streams, upgrading store
system associations, achieving a sensible high ground.

Describe the key systems and processes used by A. C. Gilbert:

- Supply Chains

Supply Chains Management was adopted way in which activities were coordinated, which
connected the stream and change of items from the unrefined materials stage to the end-
customer. Apart from this, it dealt with information streams, upgrading store system
associations, achieving a sensible high ground.

- Arrangements bunch: The work of offers gathering was just to take demand from customers.
It was just their commitment.

- Scattering: By using contract transport aiming to control the things that had been passed on
to purchasers and retailers.

- Retailers: Retailers were offered association's things direct to customers after scattering
technique. Direct orders from customers were taken.

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 - Operational system

Masterminding: There are different divisions in the company, which makes an understanding
of the thoughts into diagrams and chooses resource requirements, including rough
materials. Coordinating the processes broadens bargains and helps to get prepared for each
following stage.

- Acquiring: By using information obtained from the last stage, the Company used to buy
unrefined material for gathering and packaging material from supplier.

- Creating: After finishing the two previous stages, amassing and packaging of toys and
diverse things was done.

- Movement: Exactly when things get the chance to be arranged to use then movement
method had being done through contract transport to customers and retailers.

- Product/Service Delivery

Delivery is a process of transporting products or providing services. Optimising business’

product/service delivery involves answering the questions below:

· Will your business be product or service-based or both?

· If product-based, will you buy in your product or manufacture it yourself?

· If service-based, how will you ensure consistency of service delivery?

Analyse the three key systems and processes and develop the elements of your
review strategy.

a. lists of key result areas (KRAs)r

b. lists of key performance indicators (KPIs)

c. A description of performance review processes

d. a sample service level agreement.

a. Key Result Areas

KRAs is a concept based on which performance is measured. It is the crucial area where a
result will assist in the achievement of the set objectives or goal. KRA includes what an
activity is expected to accomplish. Key Result Areas involves: Customer Satisfaction

• Product Management

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 • Operational Cost Control

• Quality Check

• Record Keeping

b. Key Performance Indicators

Key Performance Indicator is a method which can be helpful for a company to measure the
proficiency of its workers, management personnel and determine the overall health of the
business. Performance Indicators combined together to build detailed reports to be used to
plan strategies for personnel training, management planning and alter the present business
plan for organized structure. It includes:

• Productivity

• Work Quality

• Personnel Efficiency

• Cost, Profit and Growth

- Productivity: It is the analysis of employees’ performance, which can be measured by the

work given for a certain period of time and output received from them.

- Work Quality: As a KPI, work quality measures the workers’ ability to meet & exceed the
expectations of the business and customers.

- Personnel Efficiency: Analysing personnel efficiency depicts a well organized structure of

manufacturing facilities in form of process to follow for workers with a view to achieve a goal.

- Cost, Profit and Growth: It is the analysis of operations costs and the profit a company has
generated to measure how rapidly a business is expanding.

c. Performance Review Processes

An effective performance management process enables managers to analyse and measure

individual performance and optimize productivity by:

● · Organizing each employee’s day-to-day actions with strategic business goals.

● Clear vision and accountability clarification regarding performance expectations.
● Documenting individual performance for compensation and career planning
decisions.
● Enhancing focus for skills development and learning activity choices.

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 ● Documentation for legal purposes in supporting decision and avoiding disputes.

d. Sample Service Level Agreement

Service level Agreement (SLA)

For: Adem

By: Gilbert Company

Effective date: 02-10-2019

Document owner: Gilbert Company

Version Version Date Description Author

1.0 13-09-2019 Service Level Agreement Bob Smith

1.1 18-09-2019 Service Level Agreement revised David Jones

Approval:

(By signing below, all approvers agree to all terms and conditions outlined in this
agreement.)

Approvers Role Signed Approval date

Gilbert Company Service Provider 02-10-2019

Customer Name 02- 10-2019

Suggested improvements :

Following actions and tools can be used for improvement in strategy:

· KPI for all position helps to identify the capability of employees and required
skill.

· Customers feedback can be helpful to identify the weak point of organization.

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 · Check the company process daily helps to identify the changes happening
around like changes in laws, technology and new competitors.

· Reward framework can expand the inspiration in the representative and

empower them for diligent work

· Functions and occasions will be held for workers where they will be granted
for their commitment to the organization.

· Giving positive input subsequent to finishing given assignment persuades

them to perform better on the following undertaking.

· Expert must be procured to guarantee the nature of crude material coming

into the association and the item going available to be purchased help to
enhance quality.

· Social media has become a very important part of marketing.

Analyse the variances from plans and targets for the key results areas (KRAs).

a. Quality – design/manufacturing

Years Quality

Introduced 50 new lines within a year with the help of present

1962 engineers and production department who lacked training and
experience in the new product range.

1963 Toys quality down – feedback indicated products designed and made
poorly.

1964 Reduced the price of core lines such as the erector set from $75 to
$20 but quality also impacted

1965 Due to lack of staff, A.C Gilbert was unable to implement changes or
introduce new line quickly enough for capitalize

1966 Company made a loss of $12,872,000

1967 February – A.C Gilbert closed its doors after 58 years

b. Sales

Years Sales

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 1962 Increased sales staff by 50%. Set a goal of achieving sales of $20
million by 1963

1963 Sales and profits down on previous year sales fell short of
expectations

1964 Sales are channelled through independent manufacturers which was

cheaper than maintaining an in-house sales force. Sales increased
and there was some degree of optimism. Isaacson fired the entire
sales team

1965 Thought to earn profit by popular crazes such as James Bond and the
man from uncle by introducing action figures for Christmas

1966 Company made a loss of $12,872,000

1967 February – A.C Gilbert closed its doors after 58 years

c. Profit

Years Profit

1962 Company recorded a loss of $281,000,000

1963 Sales and profits down last year

1964 Sales increased and there was some degree of optimism

1965 Due to lack of staff, A.C Gilbert was unable to implement

changes or introduce new line quickly enough for capitalize on
trends

1966 Borrowed $6.25 million, granted on the event that the

company made a profit

1967 February – A.C Gilbert closed its doors after 58 years

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d. Supply chain performance (delivery)

Years Supply chain delivery

1962 Jack Wrather purchased 52% of A.C. Gilbert company

1963 Sales fell short of expectations

1964 Isaacson made huge reduction in spending.

1965 Due to internal strike and staff reduction, new lines were not
delivered to the store until after Christmas

1966 Introduced point of purchase display products supplied to

dealers free of charge

1967 February – A.C Gilbert closed its doors after 58 years

e. Business growth – staff and management performance and/or turn over

Years Business growth

1962 Jack Wrather replaced existing executives with his own

people. Increase sales staff by 50%.

1963 Anticipated drop in profits due to expansion and cost of

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 establishing new lines

1964 Jack Wrather fire most of the top management team he hired
two years previously.

Jack Wrather hire new CEO – Isaacson. Isaccson fires the

entire sales team.

A.C Gilbert junior died and is replaced as chairman by Jack

Wrather. Isaacson assumes the role of president

1965 Due to lack of staff, A.C Gilbert was unable to implement

changes or introduce new line quickly enough to capitalize on
trends

1966 Company made a loss of $12,872,000a

1967 February – A.C Gilbert closed its doors after 58 years

- Quality: the nature of toys was top in USA. It was a direct result of the creation of Erector
set. With the help of this association it got a high status for making quality toys. In 1962 in
spite of refined change airing and cooling, Gilbert changed the way to make toys and spent a
lot of money to make them even more enjoyable. Nevertheless, in 1963 it reduced in light of
the way that the arranged was deficiently yet in 1964 decay the expense of focus lines, for
instance, the erector set went from $70 to $20 and the quality in like way influenced
cardboard box as opposed to metal boxes.

- The sales between 1960-1970 with the massive social change had central impact in toys
industry. Young men and young women used to not want to past progress in spite of the fact
that it was new so everything needed to change. Young men were moving a long way from
the standard trains sets towards stimulating new opening auto hustling sets and action
figures from understood films and system appears. Before the advertisements had been
finished by method for magazine yet in sixties obtained new ponder TV publicizing ended up
being continuously hard offer with toys seriously progressed. Subsequently in Christmas
time youths needs latest and most noticeable toys and they saw by T.V. besides, put weight
on their watchmen they need to buy it and people did it. They lurked through $1 million on
essentially change for squeezing and make more striking.

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- Exactly when the toy business changed then the number of results was falling advantage
and share regards the association get the chance to be appealing to a shrewd agent, jack
Wrather. He was a TV creator. He spent package of money to change for toy industry. He
similarly acquires new staff that has finding out about present.

- In 1962-Set various leveled goal to finish offers of $20 million for 1963.

- In 1963-arrangements and improvement went down. Since the quality was greatly poor and
cost was high. It was not related cuss.

Strengths and weaknesses of the A. C. Gilbert Company prior to 1960:

a. Market share: organization was a leading toy maker in the united states with the
annual sale $ 17 million.

b. Reputation: A. C. Gilbert gained good reputation for manufacturing quality toys.

c. Stability: company could not achieve continuous improvement in their service and
technology innovation.

d. Profit: profit of the company was failing regularly and net profit of the company in the
early sixties was just twentieth thousand.

e. Sales: difference in the target and real sale was more than one million in the starting of
sixties

f. Ability to adapt to change: organization could not accept changes for example in sixties
mediums of announcement had changed from publication to the TV advertisement.

g. Customer service standards: expert people in this industry with more knowledge and
experience were going out of this business which affected allot to the toy market.

h. Innovation: organization failed to update the product and make any perfection which cost
them shut down.

i. Employee performance: retailing of toys during the period reflected a shift in retailing
general. Small specialty retailers with experience and knowledgeable staff were going out of
business, replaced by large discount stores catering for the mass market.

j. Production and manufacturing: company was producing product according to the

demand to set their goals

a. Internal:

After AC Gilbert resumed manufacturing Erector sets, meccano seems to imported into the
US in some very limited quantity and started showing up in Sears catalogs about 1960

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By 1966 the AC Gilbert toy company was bankrupt. The AC Gilbert and erector names were
acquired by Gabrial toys name was and ten ideal toys. Erector name was eventually
purchased by Meccano in the late 1980's.

In the early 1990's Meccano started selling its sets in the US as Erector sets. Those sets are
just Meccano sets with the Erector name and have been imported by Irwin Toys. About 1999
Irwin decided to stop importing Meccano-Erector into the US except for the plastic Erector
Junior. You can still find some of the metal Meccano-Erector sets at Toys R Us, most
recently the Millennium Set, but basically no other new sets are due to be imported. What
will Nikko do? They are not saying, so only time will tell

b. External:

AC GILBERT could have sought advice from an expert marketing consultant in regard to
current requirement of toys in the world of probable future trends for other products. The firm
can also discuss matter which IT experts for possible online marketing or e commerce. They
can also seek advertisement expert externally regard to better and effective advertisement.

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