BUSINESS PLAN EXECUTION 1

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    2
  • Words:
    1447

Business Plan Execution

Question 1

After analyzing the current performance and the desired performance of the future, corrective actions should be taken to fix the main issues. These corrective actions include interim, adaptive, corrective, preventive and contingency actions.

Interim containment actions are aimed at defining the extent of the problem and trying to limit it in the future (Heuvel, 2008). The effects that are caused by the problem are limited and prompt action taken. It aims at protecting the customer.With the interim containment approach, a problem’s extent is limited and normal operations established.

The contingency actions are employed in marketing when sales deviate from expected levels. When the cost for conducting a given transaction is more than planned for, a contingency action is required to address problems resulting from such deviations[ CITATION Lee09 l 1033 ].

Corrective actions are taken to repair something that resulted in dissatisfaction of a customer. The main goal of corrective action is to eliminate a root problem and implement measures that prevent a concrete problem from happening ever again. Corrective actions are usually directed at a past event and once implemented eliminates all root causes of the problem.Corrective actions are retrospective and they are aimed at preventing the problem from ever happening again[ CITATION Duk09 l 1033 ].

Preventive actions are taken to prevent a potential problem in the future. They are aimed at improving product or process so as to prevent a problem from happening in the future. They remove potential problem and prevent it and related problems from ever happening.

Below are the recommended corrective actions for each performance improvement so as to increase productivity of the warehouse by 10%.

Required corrective action

Average order processing time

Interim actions

Average cost to process an order

Contingency actions

Error rate

Corrective actions

Production

Average number of orders processed per day

Preventive actions

Question 2

The main areas of non-performance in the warehouse are directly associated with the employees and their level of competency. There are four major areas of non-performance and they include:

  • Absenteeism. This affects the time taken to process orders since fewer employee are left to carry out the tasks of the absent employees. It also affects the production rate since the average number of orders processed per day reduces.

  • Warehouse layout makes it difficult to access stock. This increases the average order processing time.

  • Most warehouse supervisors are juniors and they require support from senior managers to carry out their roles efficiently.

  • Most employees are still under training while others are not very sure of their performance expectation. This reduces the level of production in the warehouse as well as packaging rate of the orders.

The non-performance was caused by system failure in the warehouse in areas such as communication, planning, reporting and training. After the analysis of the report provided by the Human Resources, Tony realized that most employees lacked the necessary information regarding their tasks at the warehouse. This means that communication from the supervisors to the employees regarding the employees expected performance was not adequate. “Only 80% of employees have documented KRA’s and KPI’s – 20% of employees do not know what performance level is expected of them”, which implies that the communication processes were not adequate.

The warehouse also failed when it came to planning since the employees are not provided with KPI’s written using SMART format. The employees, therefore, do not have clear expectations of what is to be achieved and by when. The employees should be given the goals of the warehouse during training[CITATION War16 l 1033 ], but according to the report by the Human Resources, KPI’s are not aligned with warehouse goals which means that employees are not clear on what the warehouse is trying to achieve.

The warehouse reporting system is also failing since the performance of the warehouse in the last year was discovered when Tony asked for the report from Human Resource. That was when they discovered that the warehouse did not achieve its operational plan goals in the previous year.

The performance indicators are important since they enable mangers, leaders, and supervisors to understand if their business is on the right track[ CITATION Ada14 l 1033 ]. If the business is not on the right track, performance indicators makes it easy for the leaders to identify where improvements are needed. The warehouse should implement certain changes into their business plan so as to achieve the organizational goals. Communication should be improved so as to let the employees know what is expected of them and the goals of the warehouse. Strict measures should also be put into place to reduce the of absenteeism of the employees. Reporting should be done more often so as to determine if the goals of the organization are being met or more improvements needs to be done.

Question 3

The warehouse should implement performance improvements strategies so as to improve their production rate. The warehouse should examine operational performance every once in a while so as to determine if they require to expand the leadership positions or train the current supervisors on better leadership skills[ CITATION Can09 l 1033 ]. The warehouse should also close cost gaps especially in processing orders so as to increase profits. The warehouse should also put effort in improving staff efficiency during their training.

Performance measures are necessary in any business as they help to keep track of the progress of the business. The main issues that are to be measured mainly focus on quantifiable factors that directly affect the success of the business. The warehouse is using these factors, the key Performance Indicators, to ensure that all warehouse employees understood the performance measures for their role. The KPIs are directly linked to the top-level goals of the warehouse[ CITATION Can09 l 1033 ].

Most organizations realize that training is important for team success but many do not understand team members’ individual needs. The warehouse should employ the processes highlighted below for training and development strategy to address the performance of underperforming individuals and groups.

  • Review the job descriptions of each and every team member

  • Meet with the members of the team

  • Take the time to observe the team members and individuals at work

  • Gather additional data about the individuals and groups

  • Analyze and prepare the data

  • Determine the actions to be taken moving forward

When planning on training/coaching members of a team or individuals, it is important to be able to answer the following questions:

  • Who needs the training?

  • What kind of training is required?

  • Why is the training important?

  • What methods will be used to deliver the training?

After answering these questions, it becomes easy to identify the training needs.

Question 4

The B&A Toy Warehouse should follow the following strategic systems processing and work method in the future so as to ensure that progress is monitored. The management should frequently use reports against its operation plans to review progress towards meeting the goals of the warehouse. For the warehouse to run successfully, the following should be observed by the management:

  • Defining the goals of the warehouse including changes in costs and daily demands such as flexibility, scalability and adaptability[ CITATION War16 l 1033 ].

  • Outlining the future operations of the warehouse based on the information gathered from past events as well as the desired future company outcomes

  • Writing reports to analyze current existing work processes so as to re-engineer them to make them capable to handle future requirements and achieve desired goals

  • Finding and selecting warehouse management system using the desired outcomes, operations and work process.

  • Implementing the WMS into the operations of the warehouse and demonstrating that the system meets the needs of the warehouse.

  • Creating the systems for implementation by management and staff to improve their skills and abilities so as to enable them to meet their requirements.

On implementing the above strategies, the warehouse is able to achieve their desired outcomes as compared to other warehouses that do not implement them[ CITATION War16 l 1033 ]. The warehouse is able to achieve the set goals while ensuring that all the staff are able to carry out their tasks effectively.

References

Coach, W. (2016, February 2). Affordable Change. Retrieved from The Business of the Warehouse Service: www.warehousecoach.com/affordablechange.html

Guest, A. (2014, July 21). Adaptive to Adaptive blog. Retrieved from What is a KPI, and Why are They So Important?: blogadaptiveinsights.com/business-intelligece/kpi-important/

Heuvel, L. N. (2008). Root Cause Analysis Handbook: A Guide to Efficient and Effective Incident Investigation. Connecticut: Rothstein Associates Inc.

Network, C. B. (2009, May 10). Info Entrepreneurs. Retrieved from Measure Performance and Set Targets: m.infoentrepreneurs.org/en/guides/measures-performance-and-set-targets/

Okes, D. (2009). Root Cause Analysis: The Core Problem Solving and Corrective Action. Wisconsin: ASQ Quality Press.