Project Review Program System And Process – Australian Hardware

Key system and process used by Australian Hardware

Discuss about the Project Review Program System And Process.

Supply chain: To produce various toys, hardware and housewares the company purchased high quality raw materials and packages from suppliers.

Operational system: Sales Team was responsible for taking orders from market, for distribution the company used contract transport, and retailers sold the hardware directly to the end user.

Product/service delivers: Design department and Planning department developed the idea and translated these to estimate the required raw materials, timeline and scheduling. Purchasing department was responsible for maintaining supply chain and inbound logistics. Manufacturing department was responsible for production. Distribution department was responsible for delivering the product to the consumers.

In order to sustain the quality of the products and improve the quality the company should implement multilevel review process with various effective tools, namely departmental meetings, group discussion forum, training for innovation and productivity development.

List of key result areas (KRA):

Better product variety
Higher quality of product
Faster supply and manufacturing process
Faster distribution

List of Key performance indicators (KPI):

Higher demand
Better market reputation and share
Increased production rate
Improved consumer satisfaction

Description of performance review process:

Meetings are conducted among various departments and management board to identify and eliminate the operational dilemmas. In workers discussion groups and forums workers can covey about their experienced problems and satisfactions. Development of on-job and event based training and development process increases the overall productivity and efficiency of the workforce.

Agreement between: Australian Hardware and Package supplier

Agreement type: Inbound logistical and purchasing

Agreement details: Constant and daily supply of 360 crates of cardboard packages with colourful cover for exchange of 20$ per crates.

In order to increase the efficiency of the supply chain the agreement and associated terms and conditions should be maintained to reduce the expenditure for inbound logistics more than 6% in each year. The internal meeting and conference is very helpful for identifying the faults of operational system. Adequate training and development plan and execution can increase the quality and diversity of the products. Reducing the selling price and add extra promotional advantage, that can also increase the collective income more than $2 million each year. Quicker distribution and warehouse planning can increase sales even during 60’s when consumer behaviour was changing.

Quality management allow any organisation to keep track their manufacturing cycle including supply and distribution, where the quality of the product can be sustained with quality inbound raw material and with an efficient packaging and distribution system. To implement this theory Australian Hardware could focus on the performance efficiency of related department.

Improvement theory emphasise the improvement of product quality, production and distribution performance through gradual improvement of workforce productivity and potentiality. Australian Hardware could plan adequate training and development programs to improve the performance of every individual.

Develop performance and sustainability measures, assessment tools and techniques of review strategy

Quality-design/manufacturing: After 1961 no significant changes were made to improve the quality design and manufacturing of the company. Rather Jack Wrather fired most of the top members of management team that had huge impact on the quality of the products.

Sales: Sales staff had been increased 50% along with replacement of previous sales staffs with new employees. On the other hand, expenditure on sales promotion had been increased significantly that reduced the company capital.

Profit: From 1961 the company faced significant loss event after increasing the sales expenditure by $1million per year. In 1962 the company experience the highest loss that is $5.7 million.

Supply chain performance and delivery: In 1962 around 50 new supply and distribution line were incorporated. High cost of extended lines decreased the effective profit in spite of decreasing the expenditure for lines by $50 in each.

Business growth-staff, management performance and turnover: After 1662 the company faced high employee turnover rate that touched its maximum limit in 1965. After this year the company was running on a skeleton workforce.

During 1950 to 1960 the ethical and moral issues of socio-cultural distribution had changed unexpectedly causing huge change in market demand and consumer behaviour. During that time market demand was focused on new variety of the products, while Australian Hardware was still concentrated on the innovative presentation or promotions instead of introducing new products and facilities.

Market share- Moderate market share with gradual growth

Reputation- Well brand reputation for the quality and longevity of the products

Stability- The company faced a stable and gradual growth in product quality and efficiency of internal process

Profit- Stable and gradual growth of profit

Sales- Increasing sales

Ability to adapt to changes- Moderate market analysis and trend adaptation power

Customer service standards- Moderate customer service with high time efficiency

Innovation- High innovativeness without compromising the quality

Employee performance- Moderate employee performance with increasing workforce strength

Production and manufacturing- Quality of product with efficient manufacturing cycle

Australian Hardware could increase their product variety instead of extending their logistic chains. During 1950 to 1960 the company had well opportunity to introduce more innovative product by strengthen their design and development teams. Their action plan could make huge success if they included increment policy of employee efficiency and cost effectiveness of products. Investing more on internal development could be more beneficial in that point of time.

Internal: the management could have been consulted with the engineers to improve the quality of equipment and to make them more advanced and profitable. Production and manufacturing staffs could be asked for their operational problems. Human resource management could strengthen the employee employer relationship.

External: Management can gather more information about market demand and customer’s trends from marketing department. Engineers could help to make efficient supply chain. Legal advisors could also help to make more strong and legitimate agreement policies.

Performance improvement strategy
Strategic goals	Process of Improvement
Upgrading manufacturing equipments	· Consulting with engineers for finding out the disputes of equipment · Preparing schedule check-up plan · Collect feedback from the employees of various departments · Market analysis for supplier selection to identify appropriate equipment supplier · Following trial handling method to ensure authenticity · Introduce the employees of manufacturing department with the operating system of new equipment. · Repairing rest of the equipments
Increasing employee relationship and work environment	· Collect feedback from the employees of various departments · Conduct survey and individual interview with managers and leaders · Consult with legal advisor for adequate work safety and security arrangements · Incorporate 360 degree monitoring system
Increasing employee efficiency and productivity	· Incorporate performance measurement and monitoring system · Collect feedback from the employees of various departments · Effective training and development planning and scheduling without disrupting the work flow · Recruit new employees having adequate quality and efficiency · Implement various recognition and rewarding techniques and practices · Implement situational leadership approach
Integrated Communication	· Incorporate 360 degree monitoring system · Creating online employee forum where employees can freely convey about the problem they are facing during working hours. · Interviewing the leader and the managers · Collecting feedback through regular basis survey and occasional interviews with open ended question

Better product variety and attractive innovation of the products
Innovative and diverse alteration of existing product
Increasing the time and efficiency of supply chain and distribution network
Increasing the faster and flawless manufacturing process
Increasing market share by strategic market research and decision making
Increasing sales by making good communication with potential customers and existing customers

Improved logistic quality and decrease expenditure
Introduce more than 50 new products with high market value and demand
Expanding consumer base by more than 60%
Increasing rate of production by 15% with minimum percentage of manufacturing defects
Improved online and offline consumer base

Power point presentation

Amended Performance improvement strategy
Strategic goals	Process of Improvement
Upgrading manufacturing equipments	· Consulting with engineers for finding out the disputes of equipment · Preparing schedule check-up plan · Collect feedback from the employees of various departments · Market analysis for supplier selection to identify appropriate equipment supplier with cost efficiency · Following trial handling method to ensure authenticity · Try to maintain similar operating system in new equipments · Repairing rest of the equipments
Increasing employee relationship and work environment	· Collect feedback from the employees of various departments · Conduct survey and individual interview with managers and leaders · Incorporate 360 degree monitoring system by 3^rd party monitoring department
Increasing employee efficiency and productivity	· Incorporate performance measurement and monitoring system · Collect feedback from the employees of various departments regularly · Effective on job training and development without disrupting the work flow · Recruit new employees having adequate quality and efficiency · Implement innovative and cost efficient recognition and rewarding techniques and practices · Implement situational leadership approach
Integrated Communication	· Online based feedback · Creating online employee forum where employees can freely convey about the problem they are facing during working hours. · On job and real time feedback system
Approval of Manager	Approval of Group member

Risk analysis
Activity	Potential risks	Timeframe
Strengthen the supply chain management	High bargaining power of supply chain	1^st month
Improving product innovation	Lack of employee count	3^rd month
Upgrading manufacturing equipments	Extremely high maintenance cost	2^nd month
Increasing employee relationship and efficiency	Excessive high employee demand and complaints	5^th month
Increase the reputation in market	Fake marketing and opposing marketing	4^th month
Increase the sales	High expenditure and low return on investment	5^th month

Cost benefit
Activity	Cost	Benefit
Strengthen the supply chain management	5000$	15000$
Improving product innovation	2000$	12000$
Upgrading manufacturing equipments	4000$	14000$
Increasing employee relationship and efficiency	1500$	11500$
Increase the reputation in market	3500$	13500$
Increase the sales	3000$	13000$
Total	19000$	41900$

Transition Action plan
Activity	Objectives	Responsible	Measure	Timeframe
Strengthen the supply chain management	Making good relationship with supply chain parents, transparent contract policies and agreement	Logistics manager	Legal advisors and agreement policies	5 month
Improving product innovation	Develop new innovative idea as per the consumer trends, designing cost efficiently	Designer and Developer department	Fund for implementing concepts, suitable platform for testing	6 month
Upgrading manufacturing equipments	Replacing old equipment with new, 12 hour production cycle	Engineers, electrical advisors	Investment, requirement analysis	3 month
Increasing employee relationship and efficiency	Reduce turnover by 32%, Adequate staff count,	Human Resource Management,	Taring and development objectives, training schedule	5 month
Increase the reputation in market	TV, Radio, Printed advertisement.	Marketing department	Survey, interview, promotion	3 month
Increase the sales	Increase sales rate by 22%	Sales department	Promotional offers, consumer relationship	12 months

Transition Communication plan
Activity	Responsible	To whom	Communication media	Timeframe
Strengthen the supply chain management	Logistics manager and legal advisor	Supply chain partners	Mail, visiting	2 month
Strengthen the distribution channel and retailers	Logistics manager, Transport department	Retailers and contractual transporter	Mail, by post	2 month
Communication with technical advisors	Developers, designers, Facility department	Engineers, electrical advisors, IT	Mail, phone	2 month
Employee employer relationship	Human Resource Management	All departmental employees	Meetings, seminars, individual interview	5 month
Consumer Relationship	Sales and marketing department.	Consumer forums, loyal and potential consumers	Online and offline Survey, interviews,	5 month

Contingency plan 1
Activity	Potential risks	Alternative plan	Timeframe
Strengthen the supply chain management	High bargaining power of supply chain	Offering greater price	1^st month
Improving product innovation	Lack of employee count	Recruit appropriate candidate	3^rd month
Upgrading manufacturing equipments	Extremely high maintenance cost	Some essential modification of existing equipment	2^nd month
Increasing employee relationship and efficiency	Excessive high employee demand and complaints	Increment of remuneration	5^th month
Increase the reputation in market	Fake marketing and opposing marketing	Promoting the previous success of the company	4^th month
Increase the sales	High expenditure and low return on investment	Borrow business loan and initiate joint venture	5^th month

Contingency plan 2
Activity	Potential risks	Alternative plan	Timeframe
Strengthen the supply chain management	Increase latency time	Engaging corresponding suppliers	1^st month
Improving product innovation	Productivity decreased	Altering the innovation objectives	3^rd month
Upgrading manufacturing equipments	Increasing waste and by products and low manufacturing efficiency	replace the existing manufacturing process with new one	2^nd month
Increasing employee relationship and efficiency	High staff resignation	Change incentives policies	5^th month
Increase the reputation in market	High rate of faulty products	Train staffs of manufacturing department	4^th month
Increase the sales	Lack of consumer relationship	Develop new consumer helpline	5^th month

Decreased productivity
Supply chain and distribution delay
Weaker west management
Increasing production anomaly
High employee resignation rate

Amended Transition Action plan
Activity	Objectives	Responsible	Measure	Timeframe
Decrease supply and distribution delay	Planning of effective transportation rout	Logistics manager	Traffic consultant, new vehicles	3 month
Improving productivity	Training and development of employees	HRM, management board	Training schedule	2month
Efficient waste management	Altercation Waste handling process	Engineers, Facilities	Investment, requirement analysis	2 month
Increase employee loyalty	Reduce turnover by 32%, Adequate staff count and employee satisfaction	Human Resource Management,	Funds for remuneration, work environment planning	3month
Decrease production anomaly	Exchange equipments, repair spare parts	Engineering, manufacturing department	Funds, schedule	4 month

Amended Transition Communication plan
Activity	Responsible	To whom	Communication media	Timeframe
Decrease supply and distribution delay	Logistics manager	Vehicle companies	Mail, visiting, phone	2 month
Improving productivity and employee loyalty	HRM, Management board	Design and manufacturing Employees	Meeting, conference	2 month
Efficient waste management	Facility, Engineer	Local authority	Mail, phone	1 month
Decrease production anomaly	Facility, management board	Equipment suppliers	Mail, phone	1 month

Amended Contingency plan 1
Activity	Potential risks	Alternative plan	Timeframe
Decrease supply and distribution delay	Lack of vehicle supplier	Offering greater price	2^st month
Improving productivity	Lack of employee count	Recruit appropriate candidate	3^rd month
Efficient waste management	Lack of area for dumping	Initiating recycling process	2^nd month
Increase employee loyalty	Work place health issues	Legal consulting	4^th month
Decrease production anomaly	Frequent equipment breakdown	Some essential modification of existing equipment	4^th month

Amended Contingency plan 2
Activity	Potential risks	Alternative plan	Timeframe
Decrease supply and distribution delay	Sudden route disturbance	Alternate route choice	2^st month
Improving productivity	Frequent equipment breakdown	Some essential modification of existing equipment	3^rd month
Efficient waste management	Lack of recycling equipments	Consulting with recycler companies	2^nd month
Increase employee loyalty	Frequent strike	Emergency negotiation	4^th month

Activity	1^st Month	2^nd Month	3^rd Month	4^th Month	5^th Month	6^th Month
Management and Stakeholder meeting
Decrease supply chain delay
Decrease manufacturing error
Workforce training and development
Improve equipment quality
Increase employee loyalty
Marketing and Proportioning