Improving Supply Chain And Operational Systems Of AC Gilbert Company

Supply Chain

Supply Chain

The supply chain was initiated with the sales team taking orders from the customers followed by distribution of the products and services through operational arrangements. Finally the retailers were sold the toys so that they could further send it to end users.

Operational Systems

The operational system that was followed by AC Gilbert includes designing of the toyes as per the concepts developed by small group of designers. This process is followed by planning that translated the designs in material form through which cost estimation and sales expectations were finalized. The next process was purchasing of raw material as per the requirements of products. Manufacturing is followed in the next process when the actual production of toys that were finalized in the planning process. Finally the distribution of the toys produced was made after packaging them. Thys final sellers were sold toys by supplying them through various channels of distribution that were employed by the company.

Product/Service Delivery

The product or service delivery took place after the order initiation that was made and picked by the sales team. The same orders were forwarded to the purchase and sales department of the company that would make arrangements through production and inventory management. Later the retailers were supplied with ordered toys using various physical distribution channels.

The three key systems and processes that were developed was taking orders, making arrangements and supplying good to the customers. These key systems can be reviewed as continuous improvement theory and quality management as follows.

1. Taking orders:
2. Increase in sales staff by 50% was made so as to achieve higher number of orders from distant places.
3. Replacement of existing executives were made with people of new majority stakeholder Jack Wrather with a motive to achieve higher effectively of business operation.
4. Organization goals were set to $20 million for 1963.
5. Making arrangements:
6. Making 50 new lines in less than twelve months so as to increase product range available for sale.
7. Efforts were made to design new products and services as per the demand of the customers.
8. Supplying goods to the customers:
9. Customers were supplied after repackaging of the existing lines is made by spending up to $1 million.
10. Extensive advertisements on television were executed so that customer get to know about the various products sold by the company and its associated benefits.

The Key results areas therefore includes the sales appreciation, popularity of company products through adverstiment and repackaging of existing line to attract customers.

The Key Performance Indicators or KPI includes the followings.

1. Sales loss of $281,000.00.
2. Setting up of unachievable organization target for sales at $20 million for 1963.
3. Increasing sales staff by 50%.
4. Introducing 50 new lines in production system for new generating new product range.

The performance review processes includes taking feedbacks from customers who indicated that the products made by company in the recent year were poorly designed, low quality and highly priced.

1. A description of performance review processes

The description of performance review process is stated as below.

1. Company recorded a loss of $281,000.00 in 1962.
2. 50 new lines in less than twelve months.
3. Decline in quality of toys.
4. Sales increased to some degrees in 1964.
5. A sample service level agreement.

A sample service level agreement includes operation system followed on skeleton workforce in which attempts are made to generate higher profits outputs and lower costs inputs.

The review strategy followed by the company is limited to getting higher profits. However the improvements in the strategy should be made as compromising quality would result in decreasing the customer base and preference. Thus quality management steps should be taken for continuous improvement through lean production system in action that actually helps in bringing down cost due to lesser wastage.

1. Quality – Design/Manufacturing

Operational Systems

The quality has been declining consistently. Also the design should be manufactured after careful go through of the market demand.

Sales

Company made a loss of $12,872,000.00.

Profit

The company made no profits instead borrowed $6.25 million.

Supply Chain Performance (delivery)

The supply chain performance was improved by increase in sales force by 50% in 1962, which was again brought down to skeleton work force till 1966.

Business Growth – staff and management performance and/or turnover.

The business growth that is staff and management performance both declines so much that the company suffered a loss of $12,872,000.00 in 1966.

The strength and weakness of the AC Gilbert Company prior to 1960 included the followings.

Market Share

The market share was declining as the company products were failing their glam in the market.

Reputation

The reputation of the company is positive as customer look upon the company products as quality products holding value for money.

Stability

The stability in the business was declining as the company products were losing demand in the market.

Profit

The profit to the company were declining as the sales were declining.

Sales

The sales were declining as the company products were less in demand due to old designed products.

Ability to Adapt to Change

The company showed lesser ability to adapt and change as per the customer requirements and demands.

Customer Service Standards

The customer service standards were followed until the company was taken over by Jack Wrather.

Innovation

There was lack of innovations in the company products.

Employee Performance

The employee performance was declining due to which Jack Wrather took steps to replace the old workforce.

Production and Manufacturing.

The production and manufacturing followed a consistent supply that actually resulted in $20,011.

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.

The missed opportunity is bringing change in concepts of making toys. The action plan for implement for improvement includes employing engineers to design new products and services.

Internal – engineers, production staff, manufacturing staff, sales personnel,

Human Resources Personnel.

The internal engineers, productions taff and manufacturing staff did not need to be changed. However the sales personnel and human resource personnel should be directed to employ fresh talent to suggest new ideas and innovation in the production line.

External – marketing consultants, advertising experts, engineers or designers,

Product/Service Delivery

IT consultants.

The marketing consultants, advertising experts and IT consultants should not be changed rather directed to follow a certain strategy to achieve desired goals. Engineers and designers should however include the newly employed workforce that could bring in new innovation concept in the production process.

(Morgan, 2001)

Strategic Goals

The strategic goals as per the strategic improvement plan includes meeting the changing customer demand without declining quality.

Description of proposed process or amendment to current process

Therefore the amendment to the current process will be to set SMART or Specific, Measurable, Achievable, Realistic and Time bound goals.

Brief explanation of how proposal will improve performance and competitiveness

The proposal will help improve quality and bring in value for money. However by making new designs as per the new action figures and dress ups of dolls will help meet the requirements of the customers.

KRAs, KPIs, targets.

The KRA will be to increase efficiency of operation and maintain quality in output. The KPI will be enhanced sales, increased  customer based and improving profit margins. The targets would therefore be to revive the sales of the company by boosting the morale of employees and producing back again quality products with new design and models.

The proposed strategy to the team would be as follows.

The team members will be trained to work in approximity with the senior employees who can assist them in better understanding and learning.

The engineers will be asked to make research on identifying new designs and product lines that are popular in the market.

pros and cons

The pros of the strategy would be to improve the sales by making new concept toys. The cons will be the hard efforts that are required to be made to achieve these goals.

Changes or improvements to strategy

The improvements in strategy would be allowing the  earlier company employees to work in collaboration with the new work force to achieve higher sales target and increased profits. The changes would be in the production line to bring out quality products.

Preparing to discuss changes or improvements at team briefing and consultation session

The team briefing can be done on change and improvement by stating following things.

1. Training and development programs a must for skilled workers.
2. Research programs for engineers to suggest new and in demand products and concepts in the making.
3. Reforming new production line to make new products and services.

(Jayachandran, 2004)

The agree time for session would be half hour training on daily basis for next fifteen days for skilled employees. The research work and find out for the engineers every week on regular basis.

Key Systems and Processes

The options available to the company include achieving quality output and increasing output to achieve economies of scale.

The creative technique that can be used includes surveying and researching on recent trend.

The suggestions would be to review sales and manufacturing at regular intervals.

The group can be encouraged to point out issues by allowing brainstorming session to apply.

(Hamiliton & Cynthia, 2005)

The summary of the results of the session and seek groups includes the following amendment strategy.

1. Low expenditures and wastage in the production process.
2. Achieving quality output.
3. Allowing collaboration of new and old teams so they could lead towards common organization objectives.

The results of the session include the followings.

1. Apply lean strategy.
2. Increasing production capacity.
3. Appreciating teamwork.

(Goldstein, 2007)

The risk analysis strategy would be regular review of sales figure and training of workforce to upgrade and improve the production system.

The cost-benefit analysis for strategy would be based on measuring and comparing the outcomes of the followings.

1. Production output.
2. Quality management.

The time to with the trainer or manager would be weekly basis when reporting will be done for strategy, risk and cost analysis as well. The costs employed will be on applying training sessions. Also the benefits will be improved and upgraded production system along with the production of recent trends.

(Corta, 1993)

The innovative process that could be employed includes the followings.

1. Improving product concepts by making upgrading them as per the recent trend and customer demand.
2. Sharing research output with engineers so that they can manufacture quality products and service.
3. To offer online sales of the products and services.

(Samli, 1995)

All aspects of the new process to be implemented are as follows.

1. Manufacturing new products as per the changing trends.
2. Increasing efficiency of output.
3. Training employees to achieve higher output.
4. Applying lean production system to cut down wastages.
5. To control over expenditures made on advertisements.

The action plan for transition and communication includes the followings.

Activities, objectives, measures (KPIs), timeframes

The manufacturing activites will be improved to make it more trend related outcome. The objectives will be to maintain quality and meet the changing demands of the customers. The KPI includes sales figures, output and customer expectations. The time frame for achieving these outcomes would be divided on monthly basis until the end of the year when all the desired outcomes will be achieved.

Activities to promote the process and sustainability

The activities to promote the process and sustainability include the followings.

1. Manufacturing new products and services as per the changing customer trend.
2. Training work force to achieve desired goals and objectives for the organization.
3. Quality management measures to be applied so that the quality is maintained.

(Samli, 1995)

The activities to reduce any negative impact on people include the followings.

1. Maintain quality.
2. Producing new products.
3. Controlling price of the products.
4. Offering support to the retailers for selling.
5. Advertising to be limited to bring down expenditures.

(Malhotra, 2002)

The two contingency plans related to possible implementation issues for the action plan includes the followings.

1. Keeping new workforce trained in close proximity with the old employees who can demand for higher pay as an excuse to shift job.
2. To bring down expenditures on packaging and advertising so that the loss incurred on yearly basis can be controlled.

(Jayachandran, 2004)

The implementation issues and failures include the followings.

1. Savings of $300,000 per annum to achieve staff turnover costs. However the staff turnover rate was not brought to a control.
2. Savings of $1 million per annum in lost productivity and errors. However the production failures occurred due to lack of training and education to the skilled employees.
3. Savings of $200,000 per annum in service and repair costs to equipments. However the same will further decline in the life of the machinery.

 The action plan and contingency plans can be amended to address implementation failures stated above includes the followings.

1. The new work force will be kept after careful selection procedure followed during recruitment so that the best human resource gets employed.
2. The old work force should be allowed to work in the company and get the incentives so that they continue to back the business operation with full strength and determination.
3. New products will be made on large scale only after pilot surveys that would confirms its likes and dislikes by the small group of customers representing whole population.

The schedule for evaluation and continuous improvement on weekly basis includes the followings.

Day 1	Training session for the skilled employees
Day 2	Reviewing the production system
Day 3	Reviewing the skilled training sessions.
Day 4	Meeting with the research team.
Day 5	Training session for the skilled employees.
Day 6	Sessions with the research team for updating on new trends.
Day 7	Holiday

(Corta, 1993)

Corta, J.W., 1993. TQM for sales and marketing management. McGraw-Hill.

Goldstein, D., 2007. What is Customer Segmentation. [Online] Available at: mindofmarketing.net [Accessed 18 March 2015].

Jayachandran, S., 2004. Marketing Management. Excel Books India.

Malhotra, N.K., 2002. Basic Marketing Research: A Decision-Making Approach. Upper Saddle River, New Jersey.: Prentice Hall.

Samli, C.A., 1995. International consumer behavior: its impact on marketing strategy development. Quorum Books.