Reference no: EM133046473
Activity: Implement innovative practices
Activity context:
General Manager has developed a program to address the inventory management and distribution tracking issues.
The objective of this program is to:
• Track the delivery vehicles and ensure that the customers receive their orders on time.
• Manage the inventory effectively and reduce wastage by using an automated inventory management system.
• To maintain the forecasted profits by decreasing the costs associated with deliveries and inventory wastage.
The management has identified that communication with the branch manager and the distribution team supervisors will be centric to the success of the program.
Timeframe for the implementation of the program is two (2) months.
The management has further identified the potential impact of change and consequence for people. These are given below:
• Limited understanding of the change and its impact among the work teams
• Negative employee attitude
• Resistance to change and lack of commitment
Expected costs and benefits of the implementation of the program:
Costs
|
Costs associated with inventory management
|
|
Equipment such as Hardware - Server/Client computer/Printer/Barcode scanner/RFID/Handhelds
|
$30,000
|
|
Operating system/Database/Server licenses
|
$5,000
|
|
Application software licenses
|
$3,000
|
|
Consulting services such as system integration/staff training/customisation
|
$8,000
|
|
Annual software licensing fees
|
$1,000
|
|
Upgrade costs
|
$5,000
|
|
Potential customisation needs
|
$6,000
|
|
On-going support/New staffs training
|
$8,000
|
|
Total costs
|
$66,000
|
|
Costs associated with inventory management
|
|
|
|
|
Equipment such as hardware
|
$20,000
|
|
Application software licenses
|
$2,000
|
|
Annual software licensing fees
|
$1,000
|
|
On-going support/New staffs training
|
$3,000
|
|
Total costs
|
$26,000
|
Expected benefits:
• The company would be able to reduce inventory wastage by 3.5% in the first year of operations.
• The distribution cost will reduce by 20% in the first year of operations.
• The company will be able to re-gain its customer-based, and the expected sales target would be met in the second year of the implementation of the program.
• The inventory to sales ration will go up to 6 in the second year of the implementation of the program.
Description of the activity:
This activity requires you to implement innovative processes related to the following :
• Process 1: Automated inventory management system
• Process 2: Distribution system tracking
The purpose of this activity is to plan for and implement improvements using the organisation's
processes for approvals, project management and change management.
To do so, you are required to follow the procedure provided below for each process:
• Review the ‘Activity context' provided above. Examine all aspects of the information given in the ‘Activity context'.
• Develop implementation plans (Template 4) to manage the implementation of the processes. Include the following details:
o Activities
o Objectives
o Key Performance Measures (KPIs)
o Timeframes
• Develop communication plans using (Template 5) to manage the implementation of the program. Include the following details:
o Communication activities during the implementation
o Communication medium
o The person responsible for communication
o Timeframe for communication
• Develop transition plans (Template 6) to manage the potential impact of change and consequence for people based on the information given in the case study.
o Actions to be taken
o Objectives
o Key Performance Measures (KPIs)
o Timeframes
• Develop at least two contingency plans (Template 7) related to possible implementation issues you foresee in relation to activities in your action plans. Include the following details:
o Potential contingencies
o The risk associated with each contingency
o Mitigation strategies
• Conduct risk management using ‘Template 8' and identify and address two (2) potential risks.
Include the following details:
o Risks
o Risk ratings
o Risk controls
• Undertake cost-benefit analysis for both processes using ‘Template 9'.
• Amend the following plans to address the potential implementation failures based on the risk management conducted.
o Implementation plans
o Transition plans
o Contingency plans
• Develop a schedule for evaluation and continuous improvement using ‘Template 10'. Include the
following details:
o Evaluation activities to evaluate systems and processes and innovation on a regular basis
o Timeframe for each evaluation activity
o Key Performance Measures (KPIs) to be assessed
• Capture and manage the learnings from the implementation activities above using a knowledge management system.
o Complete ‘Template 4' to ‘Template 10'.
o Create a ‘Google Drive' folder and name it ‘Knowledge management repository'.
o Upload the completed templates and share them with your trainer/assessor.
o Provide him with edit access.
Attachment:- Implement innovative practices.rar