Case Study Of Continuous Improvement Assignment

Case Study Of Continuous Improvement Assignment

Case Study Of Continuous Improvement Assignment

Introduction

According to Ilie, & Ciocoiu, (2010), the problem has been and will remain one of the major issues of any organization and hampered the performance of the business and profitability. The main objective of this assessment is to determine the root causes that lead to the issues of an organization Precision Software Engineering works private limited. The organization is offering original equipment manufacturers in the modelling part for telecommunication organization. Due to high competitions and entry of new clients in telecommunication industries, reduces the organization’s profitability about 45%. Thus main objective of this assessment is to evaluate and analyze the main roots cause of these issues through seven tools and techniques. These tools and techniques are Pareto analysis, cause and effect analysis, histogram, scatter diagram, control chart and 5 why techniques. In addition to this, the assessment also empathized upon the continuous improvement plan to ensure issues are not repeated

Determine the root cause that leads to the issues

The consultant implemented Pareto analysis, cause and effect analysis, histogram, scatter diagram, control chart and 5 why techniques. With help of fish bone diagram it can be observed that lack of skills and unavailability technology leads the main issues why the business is suffered from the profitability issues (Wong, 2011). Then the consultant implemented the 5 WHY techniques in order to investigate the issues of reducing organization profitability.

Continuous Improvement Plan

Identified Problems

Low skill Set of the employees & absence of training and development :

One of the major issues that have been identified in the context of organization is that low skill set of the employees due to the absence of proper training and development arrangements. In reality there is no proper business ground where the employees can share the reason of their skill shortage and the requirement of training

Action taken for

The management has noticed the problem and accordingly a committee has been set up to interview the individual employees or the team leaders as required for gathering specific information regarding skill shortage and the required training (Bessant & Francis, 1999).

The committee has interviewed the selected employees and team leaders as per their importance of job responsibility and gathered information directly regarding the possible training and development required.

The information gathered from the interview have been presented in a report format to the management for taking the required decision

Resources required

The management report identifies that major issue that has to be solved through training and development is improvement of communication skills and lack of training while handling the IT systems of the organization.

To solve the issue a team of communication experts as well as IT experts will be required who will train the employees of the relevant sectors at regular intervals for time period of six months

A customized training process will be used as per the requirement of the employees an d the sector in which they are working

Follow up actions and status

After every six months the performance of the employees(who have received training ) will be assessed with respect to their previous performances

If a significant improvement is identified in the performance of the employees then decision may b taken for stopping the training

If no significant improvement is identified , then the possible reason will be identified and accordingly the training process will be customized before offering training to the employees during the next phase(Kaye & Anderson, 1999)

Identified Problems

Lack of management coordination & communication:

Another major issue that has been identified in the context of the organization is lack of proper communication and coordination among the management level employees

The presence of this problem is badly affecting the leadership aspects of the organization

Action taken for

Once the problem has been identified then a committee has been set up to interview the individual management level employees who are particularly occupying the different decision making positions

The committee has interviewed the selected management level employees who are engaged in making decisions and sending working orders to the other departments as well as lower level employees(Stevenson, Hojati & Cao, 2007).

The information gathered from the interview have been presented in a report format to the board of directors as well as CEO for taking the required decision. Most management executives shared the fact that a proper communication system should be in place.

Resources required

The report placed to the board of directors as well as CEO identifies that an updated MIS should be established for solving the identified issue

To solve the issue a team of IT experts will be required to set up a new updated MIS system

A team of IT experts should be appointed for giving the required training to the management executives so that they can properly handle the MIS system for proper communication and coordination between the different departments for a a period of six months

Follow up actions and status

After every six months the performance of the trained management executives will be assessed with respect to their previous performances

If a significant improvement is identified in the performance of the management executives then decision should be taken for stopping the training and updating the installed MIS

If no significant improvement is identified , then the possible reason will be identified and accordingly the training process will be customized and installed MIS system will be customized further

Identified Problems

Lack of technical skill level:

Another major issue that has been identified in the context of the organization is lack of Lack of technical skill level among the employees of all level and the issue is reducing the performance level of the organization

Action taken for

Once the problem has been identified then a committee has been set up to interview all the employees working in technical field

The committee has interviewed the employees who are engaged in handling different technical instruments of the organization that are crucial in enhancing the performance of the organization

The information gathered from the interview has been presented in a report format to the board of directors as well as CEO for taking the required decision. Most technical employees shared the fact that they are not capable to smoothly handle and to derive the maximum benefit from the tools as they are not well versed to the use of the technical tools(Scarborough, 2016).

Resources required

A team of technical experts should be appointed for giving the required training to the employees so that they can properly handle the technical tools of the different departments for a period of six months

Follow up actions and status

After every six months the performance of the trained employees will be assessed with respect to their previous performances

If a significant improvement is identified in the performance of the trained employees , then decision should be taken for stopping the training

If no significant improvement is identified , then the possible reason will be identified and accordingly the training process will be customized for next phase of training

Competencies required from PEW management and employees for bring inning effective change

Business and Strategic Management:

The management should be competent enough to develop a strategy framework that will describe the schedule of the training process and updating of technical skills and technical tools so that the business can attain a uniform performance pattern which will help the business to attain sustainability and growth for the long run.

Technical Management:

For proper technical management the employees of the organization has to be technically sound enough so that they can properly handle the technical tools for processing of information and maintaining proper communication and coordination between the employees of the different departments(Bücker, & Poutsma, 2010).

Leadership:

The management level employees who are engaged in decision making should be competent enough to take the right business decision at the right time and to change the course of working from time to time as per the requirement of the changing business situations so that the business can maintain uniform growth pattern in the long term.

Figure 1: cause and effect or fish bone diagram

Problems identified

From the findings, it can be seen that main reason for losing market growth and profitability is lack of training and development and updated tools and techniques.

Counter measure

Provide an appropriate training and development to staffs members who can deliver products with better quality, so that the organization can continue to reduce inventory, reduce wastage and response to client’s demand in successful manner.

Pareto analysis

A Pareto analysis technique is mainly used by the consultant to determine the solution to business issues. It is six sigma quality tools and techniques. Management of the organization mainly uses Pareto principle and segregate the 20% of consumers that offer 80% of the profits. 20% of defect is the reason of 80% of consumer’s complaints. 20% of the activities produce approximately 80% of the defects.

S. no

Problems

Causes

Complains

1

Products are not delivered in right times

Supply chain management issues

6

2

Quality of products are not delivered

Due to lack of technology and skilled labour

4

3

Staffs members are not appear to well organize.

Lack of management coordination and communication

11

4

Products are not produces as per clients requirements

Inappropriate tools and techniques

5

5

Staffs members are not well qualified and skills

Lack of training and developments

18

6

Conflicts issues

Others(lack of appraisal techniques)

2

Each group by the number of complains and others are shown in below;

cause

Complains

Lack of training and developments

18

Lack of management coordination and communication

11

Supply chain management issues

6

Inappropriate tools and techniques

5

Due to lack of technology and skilled labour

4

Others(lack of appraisal techniques)

2

Figure 3: Pareto analysis

From the above analysis and findings it can be found that PEW gets better benefits by offering staffs with more training and development classes. It may be worth for business to improve the number of staffs at workplace. It may be possible that implementation of an effective training and development classes to staffs members helps the business to be more productive with higher quality of services.

Scatter tools

Scattered tool is a graphical tools and techniques mainly used by the management to determine the relationship between dependent and independent variables. The scatted plot provides the correlation between vital variables (Andersen, & Fagerhaug, 2006). It helps the management to determine and analyze a pattern relationship between compliance and quality. In this section, relationship between products quality and organization behaviour profitability is measured. This helps the management of an organization to determine the relationship between product quality and organization profitability (Seber, & Lee, 2012). If the relationship between these two variables is positive then the organization needs to focus on the improvement of product quality to accomplish higher benefits.

Figure 4: Scattered diagram

From the above findings it can be observed that a better quality product has a significantly positive relationship in sales performance. Values of coefficient correlation is 80% which indicates that positive significant exits between high quality of products and sales performance. Therefore if an organization can offers better quality of products and services then they accomplish better profits and reduce issues in successful manner.

Histogram analysis

Histogram analysis is the graphical representation of information and data. The data in histogram analysis is represented by the columns. Histogram mainly used by the management to displays the measure of tendency (Tar??, & Sabater, 2004). It should be designed effectively and properly for those working into the business process can easily understand and utilize them. In addition to this, histogram is used to find out the underlying distribution of variables being explored. Below figure shows a histogram of frequency of cause of reducing organization performance.

Figure 5: Histogram analysis

Histogram is representing most of frequency of cause of failure to achieve higher profits are coming from lack of training and development, lack of management coordinate and supply chain management. Therefore to solve these issues in successful manager management of an organization needs to incorporate corrective action to solve these issues.

Check sheet analysis

Project Name:

PEW’s profitability reduced by almost 45%. 

Name of Data Recorder:

Precision Engineering Works Private Limited (PEW) 

Location:

Australia  

Data Collection Dates:

20-9-2018 

   

Figure 6: Check sheet analysis

Defect Types/
Event Occurrence

Dates

TOTAL

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

quality

 

 7

5

3

5

2

 

22

Coordination and communication

 

 

 3

2

 

 

 

5

Machine problems

 

 

 

 2

 

 

3

Wrong orders

 

 

 

 

 

 

3

Breakdown

 

 

 

 

 4

 

 

4

Rework ordered

 

 

 

 5

2

 

 

7

Shipping damaged

 

 1

 

 

3

 

 

4

Late payment

 

 

 

 

 

 

 

0

Late delivers

 

2

1

5

 

 

11

Wrong order

 

 

 2

 

 

 

 

0

TOTAL

0

11

13

13

19

2

0

59


Check sheet procedures helps the management of an organization to prepare, structure from gathering and analyzing information. This tools and techniques are general tools that can help the management of an organization to determine the defect type’s occurrence in organization. It is simple document used for gathering information in real time at the location where information is generated (Goetsch, & Davis, 2014). This document is mainly used to design for the easy, quick as well as efficient recording of desired data, which can be in form of quantitative. From the observation and findings it can be seen that quality of products, late delivers, communication and coordination are the main cause of performance degradation.

Control chart

Control chart is graphical representation used to determine how organization process changes over time. A control chart is always the central line of an average, lower line form lower control limit as well as upper line from upper control limits. The information and line is evaluated and analyze from historical information. With comparing current information with these line an organization can successfully concluded about degradation of the performance and variation is consistent of not (Montgomery, Runger, & Hubele, 2009).  Moreover this tool also helps the organization to determining and monitoring the organization process variation over time. Moreover it aids the organization to improve a process to perform predictably better quality and consistently, higher effective capabilities as well as lower costs.

Figure 7: control analysis chart

From the above analysis and findings it can be observed that process is above the upper control limits and also below the lower control limits. Therefore, this finding indicates that performance of the process of an organization is not stable. Thus, it is recommended that management of an organization needs to implement some appropriate and permanents techniques to remove cause.

Assumption for this

1. There is no monitoring techniques implemented by the organization, therefore quality performance of products is degraded
2. There is no effective training and development management available in organization, therefore needs and requirements for organization is not evaluated
3. There is lack of resources available for organization therefore that managements are not be able to purchase upgraded machinery
4. The management has not be upgraded its skills and knowledge, which create problems regarding inappropriate communication and coordination problems

Conclusion

From the above analysis and findings and analysis it can be observed that quality perform the significant impact on organization performance and helps them to accomplish higher benefits in successful manner. The above discussion shows that fish bone diagram, control chart, histogram are the most effective tools and techniques in quality control management procedures. From the above findings and analysis it is recommended that management of an organization needs to implements an effective training and development classes also needs to incorporate upgraded tools and techniques which helps them to generate better quality of products and higher performance.

References

1. Andersen, B., & Fagerhaug, T. (2006). Root cause analysis: simplified tools and techniques. ASQ Quality Press.
2. Bessant, J., & Francis, D. (1999). Developing strategic continuous improvement capability. International Journal of Operations & Production Management19(11), 1106-1119.
3. Bücker, J., & Poutsma, E. (2010). Global management competencies: a theoretical foundation. Journal of Managerial Psychology, 25(8), 829-844.
4. Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
5. Ilie, G., & Ciocoiu, C. N. (2010). Application of fishbone diagram to determine the risk of an event with multiple causes. Management Research and Practice2(1), 1-20.
6. Kaye, M., & Anderson, R. (1999). Continuous improvement: the ten essential criteria. International Journal of Quality & Reliability Management, 16(5), 485-509.
7. Montgomery, D. C., Runger, G. C., & Hubele, N. F. (2009). Engineering statistics. John Wiley & Sons.
8. Scarborough, N. M. (2016). Essentials of entrepreneurship and small business management. Pearson.
9. Seber, G. A., & Lee, A. J. (2012). Linear regression analysis(Vol. 329). John Wiley & Sons.
10. Stevenson, W. J., Hojati, M., & Cao, J. (2007). Operations management (Vol. 8). Boston: McGraw-Hill/Irwin.
11. Tar??, J. J., & Sabater, V. (2004). Quality tools and techniques are they necessary for quality management?. International journal of production economics92(3), 267-280.
12. Wong, K. C. (2011). Using an Ishikawa diagram as a tool to assist memory and retrieval of relevant medical cases from the medical literature.