BSBMGT516 Role of Continuous Improvement Assessment Answer
Continuous improvement is the ongoing strategy and policy for the organization that allowss the organization to focus on improving the ways to improve the overall performance of the organization. A continuous improvement process is used in the organization to achieve a larger process of improvement. Being an employee in the retail sector, the role of continuous improvement for organizational service development can be clearly explained. In the organizational performance process, the company must communicate with the value and importance of continuous improvement to build their position very strongly in the market. In this task, the role of continuous improvement in the retail sector would explain based on the work experience evidence.
Importance of establishing formal systems and processes to support continuous improvement
Most successful companies in the competitive business market are not satisfied with their position. Similarly, Kmart Australia has focused on different systems and the process of continuous improvement to improve their performance in the competitive business market (Butler et al. 2018). In the retail sector, a system of continuous improvement refers to the application of different types of strategy, policies, organizational structure, tools, techniques, and internal functions of the company for development. Continuous improvement of Kmart Australia is based on the,
- Identification of improvement opportunity
- Analyze and verify the root cause
- Take action for risk management and mitigation
- Ensure the improved level of performance is maintained
- Planning for the future
Figure 1: formal systems in continuous improvement
(Source: Khan et al. 2019)
The main importance of using a formal system in Kmart Australia is to improve the market performance of the company. The management authority of Kmart Australia mainly focuses on the lean and agile system for performance management and continuous improvement (Khan et al. 2019). In the functionary application and management of other continuous improvement processes such as flow management, plan do study act, process control, functionary development, a suitable process for management and operation, is applied by the managers of Kmart Australia. Formal systems are being established by the project manager of Kmart Australia for sustaining organizational performance in long terms basis. Some tools are used by the managers of Kmart Australia such as benchmarking, force field analysis, control chart, and process capability assessment by the managers for performance measurement. By implementing strategic thought in the process and system of the Kmart Australia, improvement routines are expected to integrate with organizational daily routine. The strategic objective of the company has been developed in this course of action. Like all other retail sectors, Kmart Australia has followed lean manufacturing and six sigma process in their company. Under this situation, the formal system of brainstorming and force filed analysis help to understand and identify issues and challenges in the process system and performance of the company.
Two key elements of a formal continuous improvement system:
Key elements of continuous improvement are tools and methods, Organizational routines, Communication management, Change management, Knowledge management, Risk management Time management, Training on methods and tools for CI, employee engagement, and Performance of CI initiatives. Each of the elements is important for determining organizational success very relatively and effectively.
Training on methods and tools for CI:
In the company, continuous improvement can be determined by the application of several tools and techniques of continuous development. Continuous improvement in the organization can be done by the change management process (Stimec & Grima, 2019). In Kmart Australia, movement is required in internal and external functions so that competitive advantages are being attained by the company. CI tools for Kmart Australia are lean, six sigma, and performance analysis. Each of the processes is managed by the application of proper training and development. CI training is given to the employees of Kmart Australia to adopt the changes in the company. Lean is the socio-technical system in Kmart Australia is about to manage waste in the company by remove process burden and inconsistency. In this situation, training is required to improve the skills of the employees to maintain continuous development. In a formal continuous improvement system, tools are selected by the managers, and based on that initiatives are taken for training and technological improvement (Pambreni et al. 2019).
Employee engagement and risk management
Risk management is a major component of the continuous improvement process in Kmart Australia. It has been identified that continuous improvement is taken under progress by the involvement of skilled employees. In the long term management, risks are found in the case of applying effective tools and strategies. Most of the time risks are being managed by determining key objectives of the company and training employees who are eager to work with efficiency. In Kmart Australia, managers engage employees for maintaining strategic efficiency in an effective manner (Olszewski et al. 2019).
Plan, Do Check, Act cycle can be used to support effective continuous improvement
PDSA is the scientific method that is used in the action-oriented learning. This tool in continuous improvement is the series of steps in the company that involves in identifying action to overall performance management. In Kmart Australia, the PDSA cycle provides an effective process for solving problems and to develop a hypothesis about the need for change. The company is taken initiatives for determining key objectives for developing goals. The PDSA cycle of Kmart Australia is based on the four stages,
Figure 2: the PDSA cycle in continuous improvement
(Source: Rogers et al. 2019)
Plan: In this stage, problems of the Kmart Australia are identified to formulate strategies. The root cause of the problems. In the case of the retails sector, the main problem of the company is the lack of technological innovation for production sustainability.
Do: Based on the identified problem, actions have been taken in Kmart Australia. Here actions refer to successful implementations of training and development programs and brainstorming methods of discussion.
Check: In this step, data has been collected by the organization based on the issues which are identified. Effectiveness measurement is done in the company for determining organizational success through continuous improvement. Both small and large scale improvements are done by the company. In Kmart Australia, it has been observed that managers check the current technological advancement of the company. Considering the situation, supply chain management issues and production issues are being identified. Managers implemented, RFID technology in the company so that supply chain operation is managed.
Act: Kmart Australia supports Kaizen methods to have a deeper insight into continuous development. In this Kaizen method employees of Kmart Australia are allowed to give their opinion for making progress and determination of management. One of the most significant approaches is to have the proper solution to the problem. The principles and practice of continuous improvement are being determined by the managers of the company.
Brainstorming with staff can be used for effective continuous improvement
Figure 3: Brainstorming for effective continuous improvement
(Source: Garza-Reyes et al. 2018)
Sometimes it is very much difficult for the managers to think about continuous improvement without having a group discussion. Brainstorming is used to gather and generate ideas from a large number of resources. In continuous improvement, brainstorming is used as group creativity. Brainstorming in the group is done through effective communication. In Kmart Australia, effective brainstorming can be used in the group by encouraging people to follow the rules and regulations. The employees of Kmart Australia follow some rules and regulations such as,
- Stay focused on the organizational goal
- Acceptable ideas with creative innovation
- Build a group connection with effective communication
In the brainstorming idea generation in Kmart Australia, participants of the group are allowed to give an idea for creative innovation and management. Brainstorming with the staff is the strategy for continuous improvement in the company (Azzemou & Noureddine, 2018). The company chose people as a team as multiple ideas are helpful to find out the root cause of the problem and possible solutions are given based on the issues. In the case of managing smart goals in the workplace, this process involves people as a team. Risk management strategy is being formulated in Kmart Australia by this tool.
Relationship between continuous improvement and knowledge management
The knowledge management practice in the organization supports the continuous improvement process. In the case of creative organizational improvement, the process is characterized by several steps,
- Knowledge protection
- Knowledge Acquisition
- Knowledge Conversion
- Knowledge Application
Knowledge management is about information sharing so that by sharing information taken initiative in the company can be progressed. In project management, improvement is facilities by knowledge protection.
Figure 4: Relationship between continuous improvement and knowledge management
(Source: Schleicher et al. 2019)
In the case of the retail sector, IT relatedness enhances KM capabilities which leads the firm performance. KM enablers, in the creative organizational learning process, so that members of the group can upgrade and promote their idea in the group. In the selected organization, KM is used to improve knowledge acquisition from different group discussions and training sessions. In creative organizational success, the KM is a process to improve the activity and performance of the company. For example, in Kmart Australia, different types of training sessions, group discussion sessions are being arranged to develop the information sharing process. This process will allow us to remove the internal conflict of the company. In project planning and success, security is managed as information is opened to all. In Kmart Australia, managers of the company remove possible biases in the team by knowledge sharing activity.
Continuous improvement works as part of a quality management system
The role of continuous improvement in quality management of Kmart is very high. Principles of continuous improvement are worked in the form of,
Figure 5: Relationship between continuous improvement and knowledge management
(Source: Audenaert et al. 2019)
- It ensures that continuous improvement is the major objective for each of the employees in the company. From the higher level to lower level of the company is involved in this operation. The involvement of CEO, HR managers, upper and lower level of employees in the same group develops organizational activity and performance.
- In case of a quality management system, continuous improvement system breakdowns all process that has a beneficial effect for risk management operation.
- Continuous improvement is followed by the intermittent valuation and assessment against the recognized criteria of management and business excellences (Audenaert et al. 2019). This process determined management strategies that are necessary for further progress.
- By equipping every people in the organization along with relevant sources of training different strategies and tools are being adopted in the company. In Kmart problem-solving approaches are being concerned by the continuous improvement process.
- Employees who are being focused on the organizational objectives are very much concerned by this management process. One of the most significant approaches is to make employees very much focused and sustained to fulfill their individual goals and objectives to maintain the overall success of the company.
How the goals of lean manufacturing and sustainability are synonymous
Lean manufacturing is the method for waste management and to determine the maximum productivity of the company. Lean manufacturing assures the sustainability of the company by making it capable of fulfilling the demand of the customers. Waste reduction develops organizational performance by managing resources. Furthermore, lean manufacturing helps to manage the financial crisis of the company by deducing additional cost. In the case of the value maximization process, this procedure is very much helpful for the organization for operational efficiency. In the Kmart retail sector, where cost-cutting is necessary for product development and demand fulfillment, lean manufacturing is used as a sustainability management strategy.
Relationship between performance management and continuous improvement
In continuous improvement, performance management is required in the company. Employee performance ensures the notion of the projects. To make employees capable of fulfilling the organizational goals, managers arrange training projects. Employee performance determines organizational management. It has been found that performance management in different departments in the organization reduced possible risk associated factors in the company. Ongoing improvement of the products and services of the company is fulfilled by knowledge management. Communication and information sharing in the department are effective in determining organizational success (Audenaert et al. 2019). The application of multiple methods in the company fulfills an organizational objective.
Thus, it can conclude that KM is an integral part of the continuous improvement and performance management of the company. Kmart Australia has focused on different systems and the process of continuous improvement. Manager role is very essential to manage the entire process of business improvement.
Task 2.1 Research and identify continuous improvement systems and processes for the business
Benefits of implementing a continuous improvement
The implementation of continuous improvement process will assist company in improving the quality of the products manufactured. On this basis, the consumers will get enhanced product that will meet the needs and wants demanded. The execution of continuous improvement process will help in giving instructions to the employees. Therefore, the level of staff turnover will be controlled in the company. In this manner, the execution of continuous improvement process will help the company in mitigating the identify issues (Velasco et al., 2018). With the help of continuous improvement process, the enhancement made in the production process will be verified on a continuous basis. In this manner, the number of productivity taking place in the company will be increased. The company will be able to meet with the increasing demands of the consumers within the specified time.
Continuous improvement models
Different kinds of models regarding continuous improvement process can be implemented in the company. Some of the models that can be used in the company are Six Sigma, TQM, Kaizen and Plan Do Check Act. The use of Six Sigma model will help the company in minimizing the defaults and error occurring in the production process adopted in the company. In this manner, the quality of the products manufactured by the company will enhance. The company will be able to attract a large number of new consumers. This will lead to the increase in the profitability retained in the organization. The use of Kaizen of model will develop opportunities for improving the quality of products (Kumar et al., 2018). The inefficiency is associated with the product cycle will be mitigated up to a certain extent. This might create a positive influence on the quality of products manufactured by the company. However, the use of Kaizen model can be done with the implementation of some of its principles.
Total Quality Management (TQM) is considered as one of the common approach used by Business organizations for improving the quality of business. The implementation of TQM model will help the company in improving the overall organizational performance. The integration of quality functions and processes will take place within the organization. The practice of continuous process will be adopted in the company. The use of Plan Do Check Act will help the company in filling the loopholes present in the process of planning and checking the production process. On this basis, the chances of occurring any kind of mistake will be reduced to a certain extent (Dias et al., 2020). The employees will be able to gather information regarding the steps to be initiated. According to the present scenario of the company, the use of Six Sigma would be appropriate for the organization.
Strategies for implementing continuous improvement
For the implementation of model of Six Sigma, the following strategies are required to be followed by the company:
Definition: The scope and objectives for implementing the model of Six Sigma is required to be developed. The issues and challenges that will be mitigated with the implementation of Six Sigma will be identified.
Measuring: The current situation of the company is required to be analyzed. Based on the analysis, the data regarding the challenges and issues will be gathered.
Analysis: Based on the data gathered, the root causes of issues and challenges are required to be identified.
Improvement: The solutions that will be provided by six sigma for mitigating the identified issues will be developed and implemented in the organization (Nagi & Altarazi, 2017).
Control: The solutions implemented in the company are required to be evaluated on a continuous basis. This is request to be done for gaining benefits with the execution of Six Sigma model.
Four continuous improvement tools
The use of continuous improvement tools will assist the company in enhancing the efficiency associated with the continuous improvement process adopted. Tools such as The 5 Whys, Gemba Walks and Value Stream Mapping can be used in the organization. Value stream mapping is a tool that is used in gaining monument regarding the knowledge work (Jamil et al., 2020). It helps in improving the communication taking place among the team of production. The level of collaboration among the employees working in the production process is improved. The use of 5 Whys is a tool that will help the company in determining the root cause of the issues occurring (Nagi & Altarazi, 2017). This will help the company in thinking beyond the specific context of the issues arising. It will help in identification of a proper as well as sustainable solution for resolving the identified issues. According to the current scenario, the company is required to use the tools of 5 Whys and Value Stream Mapping. Continuous improvement register and forms will also be used in the company.
Strategies for encouraging staff
For encouraging the staffs to use the process of continuous improvement, expectations of the company is required to be communicated. This will increase the employee engagement in the process. The team members are required to work together for initiating and promoting small improvements in the activities and programs. Proper feedback should be given to the Employees on the work performed at an equal interval of time. A creative and healthy work environment should be developed within the organization for the employees.
Strategies for ensuring that staffs are informed
The employees should be asked regarding opinion and feedback on the planned developed for the organization. The ways in which the effective execution of plan could take place should be asked to the employees (Milner & Savage, 2016). in this manner, the manager will be able to ensure that proper communication with employees regarding continuous improvement process have taken place.
Mechanisms that can be used to obtain feedback
The use of Proactive Live Chat Support can be initiated for asking feedback from the consumers. The experience gained by the consumers should be asked with the help of live chat (Piloto, 2019). some meeting should be held with the suppliers of the company. in such meeting, the experience being gained by the suppliers by working the company should be asked. This will help the company in getting feedback from the suppliers.
Ongoing mentoring and coaching processes
CMOE’s Coaching Model is required to be used in the company for mentoring and coaching the employees. This is required to be done for the implementation of continuous improvement process in the company. With the use of CMOE’s Coaching Model, the managers will help the team members in dealing with the change process (Cable & Graham, 2018). A proper amount of support will be provided to the employees required during the implementation of continuous improvement process. CMOE’s Coaching Model is considered as a function that helps in developing liaison amid team members and management of the company.
Strategies for ensuring continuous improvement in sustainability
For ensuring continuous improvement in a sustainable manner, the manager is required to verify that a proper alignment between the efforts of continuous improvement and strategy is developed. This will help in increasing the efficiency level of process used for continuous improvement (Chaudhuri & Jayaram, 2019). The development of plan initiated by higher management is required to be communicated to the Employees clearly. The use of performance metrics for evaluating the performance of employees should be encourage within the organization.
Two knowledge management strategies
Networking is an important as well as effective strategy for knowledge management. The development of proper network system should be initiated within the organization. This will help the employees in identifying the information that are accessible. Codification is a strategy that can be used in knowledge management (Brajer-Marczak, 2016). With the help of codification, the authorized managers and employees will access the required information. The process of gathering required information will become easier for the employees. This will create a positive influence on the performance of the employees.
Task 2.2 Develop a continuous improvement policy
Review of the research notes
It has been observed that different tools and models can be used for continuous improvement process. However, the selection of most suitable model of continuous improvement is important for the company. This will create a positive influence on the overall organizational performance. The selection of an appropriate model of continuous improvement will help in controlling the staff turnover rate. The complaints received from the consumers will be resolved within a shorter span.
Development of a continuous improvement policy
Continuous Quality Improvement Policy will be implemented in the company. The purpose of the policy would be as follows:
- Giving proper product advice to the consumers
- Giving proper instructions to the Employees
The scope of the policy would be to improve the quality of goods manufactured by the company. The principles that will be followed with the implementation of continuous improvement process are as follows:
- To focus on the consumers
- To incorporate teamwork in the company
- To use employees feedback
- To improve the quality of goods manufactured
Six Sigma model of continuous improvement will be implemented in the organization. Proper communication channels will be used for increasing participation of the employees in the process of continuous improvement. Tools such as Value Stream Mapping, Continuous improvement register and forms will be used in the organization.
Compliance with relevant legislative requirements
A strict compliance with regulatory requirements will be promoted in the company during the implementation of continuous improvement process. The legislative requirements regarding manufacturing quality products will be complied with by the company during this process.
Task 2.3 Develop continuous improvement tools
Continuous improvement tools
Continuous improvement register
|Register ||Date ||Representative ||Suggested improvement ||Improvement category ||Cause of the issue |
|1||27 September 2020||X||To improve the quality of goods manufactured ||Product quality ||Changing demand of consumers|
|2||30 September 2020||Y||To give proper instructions to the Employees ||Staff management ||Increasing staff turnover |
|3||12 October 2020||Z||To give proper product advice to the consumers||Consumer relation ||Changing demand of consumers|
Task 3: analyze and report on results
Review survey data
Graph 1: Overall satisfaction
From the above mentioned graphical presentation of Paperchase Office Supplies, it has been found that 26 of overall customers are totally satisfied by the continuous improvement process of the company. Due to the implementation of the continuous improvement process, the overall function of this company is developed. The total dissatisfied customers of the company are 1 as he had experienced a delay in product delivery.
Ease of doing business with Paperchase Office Supplies
Graph 2: Ease of doing business with Paperchase Office Supplies
The presentation shows that 20 customers of the company are totally satisfied with the service of the company. 4 customers out of 49 are experiences slight dissatisfaction from the service delivery of the company. The customers are dissatisfied due to the ease of doing business and the supply chain operation of the company needs further improvement.
Paperchase Office Supplies again
Graph 3: Paperchase Office Supplies again
In the customer's opinion, 42 customers out of 49 customers said that they will again purchase product and service from the company as their product quality and process of delivery is highly satisfactory. From the respondents, 1 customer is dissatisfied with the service delivery f the company.
Recommend Paperchase Office Supplies
Graph 4: Recommend Paperchase Office Supplies
The presentation shows that 38 customers of overall respondents will recommend Paperchase Office Supplies to others for purchase as they are highly satisfied by the product of the company. Customer dissatisfaction level is zero in terms of recommending others.
An overall result against the industry benchmark
Industry benchmark of Paperchase Office Supplies shows that the customer satisfaction level of the company is relatively 42% and 47% in the case of product delivery and ease of doing business of Paperchase Office Supplies. From the survey, it has been examined that customers of the company are highly satisfied with the product quality that is delivered by the company. In case of further recommendations, it has been found that the benchmark shows 72% would again purchase products from the company but the survey result shows that some customers are still dissatisfied with the product and service of the company. To improve customer reference to others for product purchase recommendations are needed. The general manager of the company would be recommended to have future development in the continuous improvement process of the company.
Recommendation for continuous improvement
- Develop system accountability
- In order to ensure their continuous improvement process, the management authority of Paperchase Office Supplies should develop its system accountability process. The manager should encourage the entire company to embrace feedback that is both positive and negative. By designing the idea in the general hub, issues, and challenges in continuous improvement can identify. Based on the identified issues and challenges suitable strategy can be framed in the company. This is the most important suggestion for the company for managing the business operations and determining organizational success. The company should conduct peer to peer accountability in the business process.
- Leadership for demonstration
- Instead of management demonstration, the company should focus on the leadership demonstration for this process. By the involvement of the leadership, employees are highly motivated. This can be considered as one of the most significant approaches for continuous improvement management in the company. In the case of project performance, leaders will work as a pathfinder of the company. The guidance of the leader has an effective impact on the supply chain operation of the company. The company should include transformational leaders in the continuous improvement process. This would allow the company for determining their key objective for continuous development and customer demand management.
- Application of change management theory
- The company should focus on applying effective change management and knowledge management theory for overall management. By the effective theoretical application, changes will be accepted by the employees very positively. The company should prepare their employees to adopt the change properly. The relationship between managers and employees can be developed in this course of action. The root cause of the problem in the company will be erased in this course of action. Knowledge management and knowledge sharing of the company will process very suitably in this course of action. From the production management to supply chain operation Paperchase Office Supplies should develop their performance operation very suitably.