LB5245 Assessment 1 Trix3, 2023

James Cook University Australia

LB5245: Risk Management and Quality Project Management

Assessment 1: Case Study Report

LB5245 Assessment 1 Trix3, 2023

Executive Summary

In the context of effective risk management, this research report by AusManufacturing

Pty Ltd. and Zmart Pty Ltd. analyses the factors for projects that are successful and the
reasons for failure.Inadequate alignment of objectives and priorities between
AusManufacturing and Zmart, as seen in the very beginning of the project, can stymie
development and trigger a lack of coordination and solutions that are shared. Because
of the possibility of short-term sales impact, the sales manager's refusal to suggest
inventory reduction alternatives can impede the deployment of suitable risk-
management measures and jeopardise project success. Project objectives that are
clearly defined and measurable supply the project team with an obvious path and
purpose. This scenario's goal is to get rid of extra inventory on Zmart's premises.Open
and effective communication to project stakeholders, including the project team or key
stakeholders at both AusManufacturing and Zmart, serves as essential to shared
understanding and collaboration. Risks like postponed delivery dates as well non-
standard pallet dimension may have serious consequences for inventory management
or overall project performance if they are not identified and addressed. Involving key
stakeholders from both organisations, including the manager of supply chains, the the
manager of sales, or Zmart sales manager, assures that different points of view and
expertise are considered, resulting in more informed decision-making. The involvement
of additional stakeholders, like the operating manager and shipping manager, in the
project's later stages emphasises the importance of cross-functional collaboration.
Failure to talk to these stakeholders earlier can have contributed to the extension of
issues and challenges. Project success is dependent on proper management and
planning of project activities, timetables, resources, and risks. Establishing a project
team and directing committees, debating or including a plan of action, and on a regular
basis monitoring and adjusting the progress of the project are critical success factors.
Identifying and mitigating potential risks, engaging key stakeholders, fostering
collaboration, and adapting to changing circumstances are all critical.
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Main Findings:

In this case study, the goal is to reduce the inventory on Zmart premises, which can be
accomplished through explaining clearly defined goals to provide project teams with a
focused direction. Engaging stakeholders, such as AusManufacturing's sales manager
plus Zmart's supply chain manager, makes sure a full sympathetic of the objects of
project or promotes teamwork. Actual and active communications is essential for better
decision-making or problem-solving. Collaboration between project teams fosters
invention and improves project results. While the members of a team collaborate, which
supports a variety of points of view as well as the use of collective skills, the likelihood
of a project's success increases. An active approach for problem solving makes it
simple to identify and handle problems. According to Dempsey et al. (2022), the main
point of failure is an absence of cooperation, a limited perspective, and insufficient
information meeting to handle and avoid difficulties, managers of projects should
promote teamwork, conduct through problem analysis, involves stakeholders toward the
very start for a project, create well-defined communications networks, and on a regular
basis monitor and assess the progress of the project against established goals. By
executing these methods and promoting a culture of communications or collaborations.

Main Risk

The manager of projects be able to reduce risks while better projects delivery. The
projects case study identifies possible inventory management risks such as ambiguous
projects goals, an excess stocks, and reluctance to share knowledge and works
together, or supply chain managements to address these risks, an inventory
optimization plan that encourages stakeholder participation should be developed, such
as a complete supply chain analyzing, determining region to improvement, or
consuming robust inventory managements softwares or technologies. Through
addressing such risks by implementing the right risk-management methods, the project
can improve its chances for successfully lowering excess stock on Zmart premises and
minimizing potential negative effects on sales and operations.
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Demands forecasting remains dangerous meant for inventories managements because

it allows business to contract by the request from customers and stock-out issues. With
exact demands forecasts, business can successfully plan and manage inventories.
Companies are able to figure out exactly how much product they require by analysing
demands and maintaining’s liquidity this strategy boosts overall competitiveness and
assistances organization’s in evading inventory harms or problem. Demands forecasting
allows businesses toward plan their inventory stages otherwise ensure continuous
production (Jia & Sha, 2014). Inventory management is critical for increasing stock
accuracy or efficiency in businesses. A diversity of methods remain rummage-sale in
inventory management.

Identification, Assessing, Managing and Controlling of risks

Risk Likeliho Conseque Priority Owner Trigger Respons

Descriptio od nce e Plan
n
More High High High Manager Inaccurate Monitor
Inventory from both forecasting Inventory
Levels the and lack of regularly,
company monitoring demand
stocks forecasti
ng and
use of
JIT too

Low sales Medium Medium High Manager Poor demand Accurate

High High from both estimates sale
the forecasti
company ng

Inadequate High High High Project Vague goals Providing

LB5245 Assessment 1 Trix3, 2023

Communic Manager of the platform

ation project, lack for
And of effective
collaborati collaboration, communi
on limited cation
perspective, (Feedbac
and ks,
inadequate meetings
information )
gathering,
Reluctance to
communicate

Inefficient High High High Manager Safety and Standard

Shelves of Zmart disaster shelves
installation

Delivery Medium High High Manager Poor using

Duration from both transportation regional
Time high the policy distributio
company n
hubs,
employin
g
route
optimizati
on
tools,
exploring
partnersh
ips
LB5245 Assessment 1 Trix3, 2023

Via the risks registers exposed in Table 1, risks is measured (Low, Moderate, or High)
the impacts risks happening the entire projects are recognized, captivating towards
account possibility or impression of linked hazards at the projects respectively likely
risks is evaluated for its chance and influence before being prioritized. Before, for each
recognized risks, response plans are provided. Depending at the nature of the risks,
action plans such as evading, transferring, mitigating/treating, and accepting the risks
are implemented. In addition to the hazards previously stated, the risk register revealed
the following risks or reaction, as shown in Table. Risk Register

An additional inventory levels at Zmart bases confuse storage, treatment, and costing.
Via a well-organized inventory management system, or an objective-in-time (JIT)
method, to avoid excess inventory. Regularly monitor inventory levels and adjust
production to meet consumer demand (Jia & Sha, 2014).Low sales volumes in
comparison to the sales manager's estimate of sales at AusManufacturing. To avoid
and mitigate risk, increase the accuracy of the forecasting of sales by incorporating
modern data-driven examination or demand forecasting methodologies. Apply previous
data on sales, market trends, as well as customer feedback in order to create improved
sale projections or match production levels (Kouki et al., 2018).Inappropriate
communications between Zmart's management of the supply chain or
AusManufacturing's sales manager, which resulted in a failure to find a mutually
beneficial solution. Encourage honest and open discussion to make sure that each and
every one is on the same side of the page and that problems are resolved as rapidly as
possible (Carr & Kaynak, 2007a).Inefficient new shelf installation at Zmart stores,
affecting turnover potential and inventory management. Assigning a team of specialists
to manage this shelving project, ensuring adherence to criteria and completion on time
("Inventory Management System in RFID-Tagged Bins on Shelves" within Patent
Application for Approval (USPTO20220027841), 2022b). Huge delivery times among
AusManufacturing's the primary warehouse and Zmart's location affect inventory policy.
LB5245 Assessment 1 Trix3, 2023

decreasing delivery lead times through the optimisation of transportation or logistical

processes. Consider using regional distribution hubs that are closer to Zmart's stores,
using route optimisation tools (Traffic forecast), or exploring partnerships via logistics
service providers (Zietlow et al., 2017).

DACI Matrix

The DACI Matrix is a making decisions model that assists in determining who gets to
make decisions in a project.

Task/ Driver(D) Approver (A) Contributor (C) Informed (I)

Activity

Identify Supply Project Sales Manager of Project Steering

Inventory Chain Manager AusManufacturing Committee
Issues Manager of
Zmart
project
Analyze Project Project Steering Supply Chain Project Committee
Inventory Manager Committee Manager of Zmart,
Reduction Sales Manager of
Solutions AusManufacturing

Identify Project Project Steering Operations Shipping Manager

Shipment Manager Committee Manager
of
AusManufacturing,
Shipping Manager
of
AusManufacturing

Gather Project Project Steering Operations Supply Chain

LB5245 Assessment 1 Trix3, 2023

Committee Manager
Information Manager of Manager of Zmart,
from AusManufacturing, Sales Manager of
Stakeholders Shipping Manager AusManufacturing,
of Zmart
AusManufacturing

Project Project CEO Project Team, Supply Chain

Review Manager Steering Committee Manager, Sales
Manager

Evaluating & Project CEO, Project Project Team, Supply Chain

Implement Manager, Manager Operations Manager,
Shelving Zmart Manager Shipping
Policies Sales Manager
Manager

The DACI matrix explains each stakeholder's farm duties in the project to reduce the
inventory in Zmart premises and create sure efficient communication and cooperation
between team members.

RACI Matrix

It is a task management model focusing on determining who is responsible for

completing the tasks.

Task/ Responsible Accountable Consulted (C) Informed (I)

Activity (R) (A)
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Identify Project SCM, PT, SM SCM, Project

Inventory Manager Team, Sales
Reduction Manager
Solutions

Evaluate & Zemart Sales CEO, Project Project Team,

Implement Manager Manager Supply chain
Shelving manager,
Operation
Manager
Policies Operation CEO, Project Project Team, Zemart Sales
Address Manager Manager Supply chain Manager,
Delivery Time manager Shipping Manager
Issues

Project Project CEO Project team, Supply chain

Review Manager Supply chain manage, Sales
manager Manager, Project
Team

Conclusion:

Finally, this report identifies and assesses significant issues and risks associated with
AusManufacturing Pty Ltd. and Zmart Pty Ltd. case studies. Risks include the
management of inventory, teamwork, communication, or logistics issues. These issues
reduced the project's success at getting rid of excess inventory at Zmart facilities. To
address these risks, several recommendations and plans have been proposed.
Encourage stakeholder collaboration with open communication, conduct extensive
problem analyses, include key stakeholders from the beginning of the project, develop
efficient communication channels, and bring about regularly monitoring and evaluation
LB5245 Assessment 1 Trix3, 2023

of reports and system. By implementing these strategies, the project manager will be
able to accurately take control of the identified risks. Furthermore, the importance of risk
assessment for supply chain management is emphasised in the paper.

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LB5245 Assessment 1 Trix3, 2023

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