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Manage Innovation And Continuous Improvement Essay Sample

Manage Innovation And Continuous Improvement Pages
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1. EXECUTIVE SUMMARY
2. GOAL AND OBJECTIVE
3.Describe the key systems and processes used by AC Gilbert: a. Supply chain
b. Operational systems
c. Product/service delivery.
4.Analyze the three key systems and processes and develop the elements of your review strategy: applying your knowledge of quality 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 if applicable:

a. Lists of key result areas (KRAs)
b. Lists of key performance indicators (KPI5)
c. A description of performance review processes
d. A sample service level agreement.
5. Using the data provided for results up to 1966, for each of the three key systems, describe how each of your measures, assessment tools an techniques would monitor performance. Include specific examples of hypothetical cases to test the effectiveness of the elements of your r view strategy. Write an evaluation of the effectiveness of your review strategy. Suggest improvements to your strategy.

Refer to quality management and continuous improvement theory.

6. Using the data provided for results up to 1966, analyze the variance from plans and targets for the key result areas (KRAs). Include discussion on Performance with regards to:

a. quality – design/manufacturing
b. sales
c. profit
d. supply chain performance (delivery)
e. business growth – staff and management performance and/ turnover 7. 1960. Discuss the following in your report: a. market share
b. reputation
c. stability
d. profit
e. sales
f. ability to adapt to change
g. customer service standards
h. innovation
i. employee performance
j. production and manufacturing.
turnover.

AppIy creativity skills to identify missed opportunities to improve business performance. Describe at least one missed opportunity in detail. Include an action plan for implementing the improvement in your report.

1. EXECUTIVE SUMMARY:

This document is a detailed assessment under project Manage Innovation And Continuous Improvement Task1 i.e. ‘Analyze the information Provided’ through which the researcher needs to demonstrate their capabilities essential for analyzing an existing case study present in the text book in which the main target is the Innovation and improvement. All minute specifications and details about the strategies and enhancing polices are discussed under this literature review. Concluding with the suggestions and recommendations to improvise the existing business policies to make it a profitable venture for the organizations.

2. GOAL AND OBJECTIVES:

The main goals and objectives of this research report is to analyze a detail review regarding the task of managing information and continuous improvement of the business of an existing situation of the company named A.C. Gilbert present in the text book. The researcher’s main purpose will be to provide the organization with a complete and comprehensive innovation plan.

3.Describe the key systems and processes used by AC Gilbert: a. Supply chain
b. Operational systems
c. Product/service delivery

a.Supply ChainThe supply chain process of the A.C.Gilbert company can be eplained by this flowchart

b.Operational System:

This is the complete operational process of the company starting from designing and ending to distribution f toys to the customers.

c.Product /Services Deliver:

A. C. Gilbert produced train sets but their most popular lines were chemistry set 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 were high quality, solidly crafted and make to endure. Parts and packaging were designed to last for many years, with the Ere tor set packaged in long-lasting metal boxes. The focus was on educational toys, prima 11y aimed at boys rather than girls. The company had a limited range but what they did manufacturer was top quality
and highly regarded.

4.Analyze the three key systems and processes and develop the elements of your review strategy: applying your knowledge of quality 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 if applicable:

a. Lists of key result areas (KRAs)
b. Lists of key performance indicators (KPI5)
c. A description of performance review processes
d. A sample service level agreement.

The three key Systems are:
Design
Planning
Manufacturing

Design:

An American inventor of note and originator of the Erector constructional toy in 1913, Gilbert originally trained at Yale Medical School before going on to found the Mysto Manufacturing Company (established 1909), which sold magic sets. In 1913 he launched the first Erector construction set, which consisted of perforated miniature girders which could be attached to gears, pulleys, bolts, and screws. Like Hornby, Gilbert’s educational inventions covered a diverse field, including chemistry sets, a glass-blowing kit (1920s), model trains (1946 to 1966, including the popular American Flyers), and an ‘Atomic Energy Lab’, complete with radioactive components and a working Geiger counter (1952).

Designing Strategy:
Find out the latest hot stuff that’s happening in the world of design and above all see how this can inspire your company to enter into new
design orientated business opportunities. Research and understand all the latest materials and color combinations, styling details, features and category innovations in the world of design and transfer this information laterally across multiple product sectors to hunt out the unexpected associations that lead to innovation.

Design Research, Design Strategies, Style Guides and Innovation Hunts are specifically made by the experts present in the company. We work with toys, brands, apparel, events, care products, hi-tech devices and almost anything where children are involved. Let us map out some opportunities for your company.

a. Lists of key result areas (KRAs): Key Result Areas” or KRAs refer to general areas of outputs or outcomes for which the department’s role is responsible. Key Result Area in simple Terms may be defined as Primary responsibilities of an Individual, the core area which each person is accountable set goals and objectives

Prioritize their activities, and therefore improve their time/work management Make value-added decisions
Clarify roles of department or individual  Focus on results rather than activities

b. Lists of key performance indicators (KPI5): KPI is a term specifically used to indicate criteria adopted in evaluating the employee’s performance.

material management,
order management,
productivity KPI,
quality,
maintenance etc

c. Performance Review Process:

Depending on how you felt you did the previous year you either look forward
to the conversation or dread it. In a perfect world, there are no surprises – your manager rates you aligned with how you rated yourself.

The following points are here to check annual performance reviews:

Focus the agenda
Align the timeline
Walk away with perspective

d. A Sample Service level Agreement:

Consultants want to ensure that they can perform the services they’ve promised to their clients. Clients want guarantees that the consultant they’ve hired will deliver—and make corrections if the project runs into trouble.

Service level agreements (SLAs) bring both sides together and map out each party’s responsibilities. SLAs can help you determine, for example, what you will provide to your client, what is beyond your responsibility, and who should be contacted when something goes wrong.

To be effective, a service level agreement must contain the following six elements. Other elements may prove helpful, but these six are minimum requirements:

1. Context-setting information 4. Service tracking and reporting 2. Description of services 5. Periodic review
3. Service standards 6. Change process

These six elements are actually subsets of two broad categories: • The Service Elements, which describes the service context and the terms and conditions of service delivery. • The Management Elements which describe the steps the two parties will take to assess service effectiveness and resolve any problems that may arise.

Planning:

The planning department translates the concepts into designs and determines resource requirements including raw materials. Planning also projects sales and develops production plans for each product, time frame for production runs and scheduling of production runs.

Planning plays an important role in any business venture. It can make the difference between the success or failure of your business. You should plan carefully before investing your time and, especially, your money in any business venture.

The start of each customer project comprises of a planning and conception phase. Only with detailed knowledge of the market and its competitors can one in this stage of the process set the proper course for a product’s success. A.C Gilbert continuously analyses the international markets and monitors the branch trends in the area of quality toys

a. Lists of key result areas (KRAs)

KRA 1: Reduce on-hand inventory to the lowest feasible levels consistent with customer service objectives. Planning delivery of indigenous and imports items to minimize the inventory cost like casting, fabrication, sub assembly, etc.

KRA 2: Reduce materials costs to the lowest levels consistent with quality objectives. Cost saving budgeting and targeting.

KRA 3: Develop statistical methods to estimate future materials requirements. Assessing project material requirements and designing purchase schedule.

KRA 4: Purchasing policy and planning.
Development & implementation of key procurement strategies. Formulating budget for timely procurement of spares & materials.

KRA 5: Outsourcing strategy / development / management

KRA 6: Zero production losses due to material shortages. Timely delivery of goods at the respective sites.

KRA 7: Stock audit to ensure reconciliation of physical stocks.

KRA 8: Developing & negotiating with suppliers for obtaining timely procurement of materials at favorable commercial items.

KRA 9: Assessment of performance of the vendors.

KRA 10: Logistics operations.

KRA 11: Introducing innovative initiatives in operations.

. Lists of key performance indicators (KPI5):
1. Delivery on time
2. Delivery is not enough quantity, quality
3. Quantity bought over required
4. Purchasing cost
5. Cost of purchasing units
6. Suppliers rating

c. Performance Review Process:

Depending on how you felt you did the previous year you either look forward to the conversation or dread it. In a perfect world, there are no surprises – your manager rates you aligned with how you rated yourself.

The following points are here to check annual performance reviews:

Focus the agenda
Align the timeline
Walk away
Financial Ratios with perspective
Ratio Analysis
Are sales growing and satisfactory?
Are profitability trends favorable in the company?
Are sales growing and satisfactory? etc.

Performance report

Year
Sales
Difference From previous Years
Profit
1961
$11.5 million
($1.1 million)
$20,011.00
1962
$10.9 million
($600,000.00)
($281,000.00)
1963
$10.7 million
($200.000.00)
($5.7 million)
1964
$11.4 million
$700,000.00
($2.6 million)
1965
$14.9 million
$3.5 million
($2.9 million)
1966
$12.9 million
($2 million)
($12,872,000.00)
1967
A. C. Gilbert closed 1909-1967

Manufacturing:

Production and packaging of toys distribution is involved in manufacturing.

a. Lists of key result areas (KRAs)
1. Customer Satisfaction
2. Good working conditions
3. Product development.
4. Preventive maintenance
5. Delivery management:
• Minimize downtime and
• Meet annual production target as per expected cycle time.
6. Resource Utilization
• Maximizing quality of product, efficiency of production and maximize production rates.
• Compliance of corporate policy norms.
• Maximize plant efficiency through teamwork and innovation
7. Operational costs.
• Minimize the scarp level/wastage reduction.
• Control overhead expenditure.
• Stock Control.
• Reduction in operating costs.
• Minimize the inventory levels.
8. Implementation of quality control programs
• Apply newer management techniques such as ISO, TQM, Six Sigma, etc.
• Application and acceptance of new technology.
• Shop floor improvements.
9. Productivity: Improvement of process.
10. Record Keeping.

Lists of key performance indicators (KPI5):

1. Material Management KPI
2. Order management KPI
3. Order management KPI
4. Productivity KPI
5. Quality KPI
6. Maintenance KPI

c. Performance Review Process:

 Aligning individual employee’s day-to-day actions with strategic business objectives  providing visibility and clarifying accountability related to performance expectations  documenting individual performance to support compensation and career planning decisions  establishing focus for skill development and learning activity choices  Creating documentation for legal purposes, to support decisions and reduce disputes

5.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 of 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.

`Performance measurement determines a program’s success in meeting established goals and objectives; whereas, program evaluations are typically a more in-depth examination of program performance and can determine if a program is working and identify adjustments that may improve results. The GAO identifies four approaches to program evaluation:

(1) Evaluate process/implementation,
(2) Outcomes,
(3) Impacts, and
(4) cost-benefit/cost (effective analysis).

Designing, Planning & Manufacturing:

Process or Implementation Evaluation: assesses the extent to which a program is operating as it was intended. Typically, assesses program activities’ conformance to statutory and regulatory requirements, program design, and professional standards or customer expectations.

A.C Gilbert as a small, traditional company, was slow to react to the traditional design and toys requirements changes. It may have been that they were not aware of the changes or were overly confident that their good name and reputation was sufficient to continue trading as before. The consequences of this shortsightedness soon became apparent.

Outcome Evaluation: Assesses the extent to which a program achieves its outcome oriented objectives. Focuses on outputs and outcomes, including unintended effects, to judge program effectiveness. May also assess program process to understand how outcomes are produced.

1961 Figure Approximate:
L/Y Sales
Actual Sales
Difference
Profit
$12.6 million
$11.5 million
($1.1 million)
$ 0,011.00

This drop in sales was also reflected in a fall in the share price of the compa

Impact Evaluation: Assesses the net effect of a program by comparing program outcomes with an estimate of what would have happened in the absence of the program. This form of evaluation is employed when external factors are known to influence the program’s Outcomes, in order to isolate the program’s contribution to achievement of its objectives.

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. C. Gilbert, I e 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 immediate set about making his mark on the company. A. C. Junior stayed on as Chairman but his influence was minimal.

Cost-Benefit and Cost- Effectiveness Analysis: Compares a program’s outputs or outcomes with the costs (resources expended) to produce them. When applied to existing programs, they are also considered a form of program evaluation. Cost-effectiveness analysis assesses the cost of meeting a single goal or objective and can be used to identify the least costly alternative for meeting that goal. Cost-benefit analysis aims to identify all relevant costs and benefits, usually expressed in dollar terms.

Year
Sales
Difference From previous Years
Profit
1961
$11.5 million
($1.1 million)
$20,011.00
1962
$10.9 million
($600,000.00)
($281,000.00)
1963
$10.7 million
($200.000.00)
($5.7 million)
1964
$11.4 million
$700,000.00
($2.6 million)
1965
$14.9 million
$3.5 million
($2.9 million)
1966
$12.9 million
($2 million)
($12,872,000.00)
1967
A. C. Gilbert closed 1909-1967

Quality Maintenance & Continuous Improvement:

Following strategy was followed by the new owner to maintain the standard and quality of the company by taking serious actions to improvise the quality in continuity of previous running years.

Actions taken by Jack Wrather
Set a goal to achieve sales of $20 million 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 lines, raising the line to 307.
Changed the focus from traditional boys toys to ranges for pre-school children, dolls and other toys aimed at girls between the ages of 6 and 14. Spent $1 million on changing the packaging for all lines to brighter, more colorful boxes

6.Using the data provided for results up to 1966, analyze the variance from
plans and targets for the key result areas (KRAs). Include discussion on performance with regards to: a. quality – design/manufacturing

b. sales
c. profit
d. supply chain performance (delivery)
e. business growth – staff and management performance and/ turnover

a.Quality –Design/manufacturing:

Years
Quality
1962
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 million.

1963
Decline in quality of toys – feedback indicated products poorly made and designed (dolls did not even come with a change of clothing). 1964
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 brittle parts instead of sturdy, long-lasting parts. 1965

Due W lack of staff, A. C. Gilbert is unable to implement changes or introduce new lines quickly enough to capitalize 1966
Company made a loss of $12,872,000.00.
1967 February – A. C. Gilbert closed its doors after 58 years.

b.Sales:

Years
Sales
1962
Increased sales staff by 50%. Set an organizational goal to achieve sales of $20 million for 1963. 1963
Sales and profits down on previous year. Sales fell short of expectations. 1964
Sales are channeled through independent manufacturer’s reps, which was cheaper than maintaining an in-house sales force. Sale increased and there was some degree of optimism. Isaacson fires the entire sales team. 1965

Sought to capitalize on popular crazes such as James Bond and The Man from Uncle by introducing action figures for Christmas. 1966
Company made a loss of $12,872,000.00
1967
February – A. C. Gilbert closed its doors after 58 years.

c.Profit:

Years
Profit
1962
Company recorded a loss of $281,000.00.
1963
Sales and profits down on previous year.
1964
Sales increased and there was some degree of optimism.
1965
Due W lack of staff, A. C. Gilbert is unable to implement changes or introduce new lines quickly enough to capitalize on trends. 1966
Borrowed $6.25 million, granted on the event that the company made a profit in 1996 1967
Februry – A. C. Gilbert closed its doors after 58 years.

d.Supply Chain Performance (Delivery):

Years
Supply Chain Delivery
1962
Jack Wrather purchased 52% of A. C.
1963
Sales fell short of expectations
1964
Isaacson makes huge cutbacks in spending. Sales are channeled through independent manufacturer’s reps, which was cheaper than maintaining an in-house sales force.
1965
Due to internal strife and staff cutbacks, the new lines were not delivered to the stores until after Christmas. 1966
Introduced point of purchase display products supplied to dealers free of charge. 1967
Februry – A. C. Gilbert closed its doors after 58 years.

e.. Business growth – staff and management performance and/ turnover:

Years
Business growth
1962
Jack Wrather replaced existing executives with his own people. Increased sales staff by 50%. 1963
Anticipated drop in profits due to expansion and cost of establishing new lines. 1964
Jack Wrather fired most of the top management team he hired two years previously. Jack Wrather hires new CEO – Isaacson. Isaacson fires the entire sales team. Sales are channeled through independent manufacturer’s reps, which was cheaper than maintaining an in-house sales force. A. C. Gilbert Junior dies and is replaced as Chairman by Jack Wrather. Issacson assumes the role of President 1965

Due W lack of staff, A. C. Gilbert is unable to implement changes or introduce new lines quickly enough to capitalize on trends. 1966
Company made a loss of $12,872,000.00.
1967
February – A. C. Gilbert closed its doors after 58 years.

7.Discuss trends relevant to the organization. What trends did AC Gilbert identify in the late 1950s? Consider the strengths and weaknesses of the AC Gilbert Company prior 1960. Discuss the following in your report: a. market share

b. reputation
c. stability
d. profit
e. sales
f. ability to adapt to change
g. customer service standards
h. innovation
i. employee performance
j. production and manufacturing.
turnover.

Apply creativity skills to identify missed opportunities to improve business performance. Describe at least one missed opportunity in detail. Include an action plan for implementing the improvement in your report.

Trends Followed By A.C. Gilbert in 1950:

By the 1950s, A. C. Gilbert was one of the leading toymakers in the United State with annual sales regularly topping $17 million. This was an outstanding achievement for a relatively small company.

A. C. Gilbert produced train sets but their most popular lines were chemistry set microscopes and their best seller, the Meccano-like Erector engineering sets that had been popular with children for more than 50 years.

Strengths and Weaknesses of the AC Gilbert Company prior 1960.

Strengths:
The Mysto Manufacturing Company, was sounded 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 State with annual sales regularly topping $17 million. This was an outstanding achievement for a relatively small company. The fifties were a very traditional era of family values and morals, conservative and staid. A.C. Gilbert was largest toy-centered retailer.

It has been popular brand among the people especially in Unites States. Always offer new toys to customers.
The company was growing fast and developing new market.
Weaknesses:
• Company still keeping the product and business area on hand which are not profitable. • Safety concerns on the products.
• It is hard for the company to gain the number 1 position in the market.

Specialist consultation

Internal:

If A.C. Gilbert was continued to work and tried its level best to achieve the goals and objectives of the company as was prior to 1950s, they have take serious strategic steps towards the growth and expansion and especially stability in the market.

The Mission Should be: The mission of A.C Gilbert should to be a low-cost, profitable, provider of toy systems for children of all ages. They must had supported the conversion of natural resources into competitive and innovative quality products for customers while protecting the environment and creating a positive long-term social, cultural, and economic benefit for the region and its people, employees, customers, suppliers and stakeholders.

Measure and report on your progress and performance: Internal and external communications can be used by a company to report on its progress in achieving social, financial and environmental goals. By developing benchmarks against which to measure progress, and reporting on successes and failures, companies can reinforce their commitment to stated objectives, and alert employees and other stakeholders to areas where more effort is needed.

Lines of communication: Regular staffs meetings, e-mail bulletins, accessible managers and an in-house newsletters can help maintain lines of communication. Centrally located bulletin boards or suggestion boxes can stimulate discussion and ideas. Human resources staff who treat employees as individuals and help them juggle the competing demands of work and family promote loyalty. When employees are given the rationale for major decisions, they are less likely to listen to rumors and speculation.

External:

If A.C. Gilbert was continued to work and tried its level best to achieve the goals and objectives of the company as was prior to 1950s, they have take serious strategic steps towards the growth and expansion and especially stability in the market. Customer loyalty, public credibility, and investor confidence are gained by companies that are perceived to be doing things right. Perfection is not possible, but definable progress and effective communications are essential.

Annual sustainable development report: When read by corporate stakeholders, including customers, suppliers, employees, investors, regulators, members of the local community and environmental groups, such reports can go a long way toward demonstrating a company’s commitment to environmental protection and social responsibility.

A commitment to honest and accessible public relations: Successfully conveying information about a company to customers, the press, the local community, plus anybody else who has an interest in what you do, requires an up-front approach and clear, understandable language. People are naturally sceptical of what they do not understand. With knowledge comes familiarity, security, and support.

Work with innovative business associations.
Tap the expertise of non-profit organizations
Contract with the best
Have fun, stay healthy, and enjoy your work in an increasingly stressful world.

8. CONCLUSION:

The above discussed literature review explained the reasons and situations of the A.C. Gilbert down fall after enjoying a remarkable position in the US toy market of innovative toys. Minute details have been cleard and discussed in the report.

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