1.
|
Area |
Required Corrective Action |
|
Time Average order processing time |
The current performance is 80 minutes where the targeted time to achieve the desired level of productivity was 72 minutes. In order to achieve the 10% productivity improvement, the company needs to train the existing employees in such a manner that encourages higher production. |
|
Cost Average cost to process an order |
The current cost is $200 whereas the desired cost to get the desired level of productivity is $180.00. In order cut back on the cost to the company, the company needs to improve the technology used in the production of goods and services, train the employees, and invest for one time in the upgradation of the technology of company. |
|
Quality Error rate |
The current error rate of the company is 10% but to achieve the performance target to achieve 10% improvement in the productivity is less than 1%. For this, the company needs to train their employees. The company needs to resort to a corrective maintenance policy. |
|
Production Average number of orders processed per day |
The current production of the company is 50 orders per day that is processed per day. However, to reach the desired level of production the average number of orders per day was 55 orders. In order to improve the production rate, the company has to invest in training the staff members and in upgrading the technologies of the manufacturing system of the company. |
The areas of non-performance in this case is absenteeism in the company, lesser engagement of the employees and lesser number of employees attending the training session. The actual percentage of absenteeism in the company is 3.9%.
The failures which contributed to these results are: unaware employees, not meeting the goals and objectives. The long list of the reasons that contributed to the failure is the failure in communication, planning, training and reporting.
The performance indicators should aim at increasing the productivity of the workforce of the company. The performance indicators in this organization are to be clearly stated and communicated to the employees in order to achieve the organizational goal. The performance indicator of the company measures the participation and the attendance of the employees along with the total turnover of the company. However, few changes need to be incorporated in order to bring in a positive change in the company. The changes that can be incorporated in the performance indicator are:
3. i) The company can adopt certain measures to improve its performance like adopting target oriented short-term training programs for the employees, rewarding the employees who meet their target and so on (Borness et al. 2013). The management of the company can plan a warehouse extension to help facilitate a better layout for the company. A preferred supplier arrangement is to be established with a workforce supplier who is temporary. This will help to ensure a provision of temporary labour.
ii) The performance measures that have to be improved by the employees are being present, and being aware about the key responsibility areas and the key performance indicators so that they perform accordingly. The new performance measuring areas should be employee engagement, employee attendance and total amount of turnover of the company.
iii) Firstly the development needs of individuals and groups have to be identified. This is important to meet an overall development of the company. The individuals need a more thorough knowledge of the key performance areas. This can help them to perform better in a given direction to achieve their full potential.
iv) Then comes the coaching and training needs of those individuals. It is an important step as it identifies the areas where training is required. The training and coaching need of the employee is important for an overall development of the company. Each and every company needs to formulate a developmental plan for the organization which can be achieved only by conducting a successful training and coaching program for the employees of the company.
v) The company needs to train its employees and invest in upgrading the technology of the manufacturing units.
4. i) The strategy that the company should adopt is that it should train its employees about their own responsibilities which can work for the betterment of the company (Parmenter 2015). It should formulate a plan to train the employees in a manner, which helps the company to achieve its full potential in terms of productivity.
ii) The implementation of this strategy would lead to continuous improvement as a trained workforce can help the company to grow faster, in a systematic manner, thus ensuring a profitable business for the company. This strategy can help the workforce of the company achieve their fullest potential thereby contributing to the productivity of the company.
References:
Borness, C., Proudfoot, J., Crawford, J. and Valenzuela, M., 2013. Putting brain training to the test in the workplace: a randomized, blinded, multisite, active-controlled trial. PloS one, 8(3), p.e59982.
Parmenter, D., 2015. Key performance indicators: developing, implementing, and using winning KPIs. John Wiley & Sons.
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