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Innovation and Performance ManagementAmy BleakleyMT 400Kaplan UniversitySeptember 6, 2015PART 1 - Innovation ActivitiesThe practical use of activities to help understand ways to improve processes requires application by the people who work with the process. It is important that the individuals who will be using the new process stay aligned with the organization and the process goals. One way to help with integration is through workshops that generate improvement ideas (Duggan, 2013). The process we are improving at West Marine is how we expedite special ordered boat parts more efficiently. Since this process includes internal and external stakeholders, we decided to hold a workshop to improve communication and seek ideas from all parties. The activity used in our workshop to generate new ideas is brainstorming. Brainstorming is a sound process for asking questions and addressing challenges. The process will allow for free flowing ideas from all stakeholders involved in the process. Each member of the group, in turn, will put forward an idea concerning the improvements needed for the process from their perspective. The process will continue until all ideas are recorded so that we increase the chance of originality and innovation. One of the main objectives of our workshop is to bring together both internal and external stakeholders so that communication can take place. Since the area we are trying to improve on indirectly involves several of our suppliers we feel that this is a chance for our employees to see things from the vendor’s point of view. Often the people directly involved with the process never see or speak to the people who supply them with what they need to do their job. In our case, this workshop will be a chance for ideas to flow freely from employees involved in the process and the people who supply that process. We understand that by brainstorming ideas from both angles we can obtain and record some real innovative suggestions for improvement.The people participating in this workshop will be the employees in charge of the process, the employees that implement the process and representatives from our vendors. In the order process department, the order clerk and inventory clerk work together to get the process started after an order comes in from a customer. Since these two clerks are at the beginning of the process, they need to be present to initiate ideas from the start of the process. The managers from the warehouse need to be present because this is where the vital part of the process occurs. The availability of parts is a key to expediting this process. The four key people in this area are the warehouse manager, the category manager, the category assistant and the shipping department manager. Since part of the improvement in the process will take place directly with several of our suppliers, there is a need for supplier representatives to be present also. The ideal outcome for the workshop will be to obtain improvement ideas and engage in better communication with the main people involved in the process. PART 2 – RASCI ModelThe RASCI model for the project West Marine is made up of several of the tasks involved in the processing of boat part orders. These tasks revolve around the inventory segment where there is a new scope for improvement in the process flow. Below is the description of roles and responsibilities for the process flow.Step 1 - Boat part ordersTask – Process the ordersInvolved human capital - Order Clerk and Inventory ClerkThe order clerk handles receiving the order and validating the payment mode. Once confirmation is complete, the order clerk initiates the process flow. The inventory clerk is then consulted to see if the part is in the warehouse stock. The inventory clerk has only one responsibility, and that is to confirm if the part is in stock. Scheduling training for improving the roles of the order clerk and the inventory clerk will add more responsibility. The training will be on inventory management software already in place. The idea will be to cross train these two positions.Step 2 - Inventory controlTask - Keeping parts in stockInvolved human capital - Warehouse Manager, Category Manager, and Category AssistantThe special boat parts should always be present in stock. It will be important to keep data on parts most frequently ordered. Order clerks and inventory clerks should track data by way of a central system integrated with the warehouse. The warehouse manager sends out the information exchange to the category manager so that he can do the proper forecasting. The warehouse manager is responsible and accountable for the products present in the warehouse. The category manager is the key liaison person between the warehouse and the suppliers. The warehouse is divided into separate segments; the category assistant has to stay informed to report on any updates regarding particular types of stock that need attention. It seems that more cross-functional management and accountability could be adapted to form a team approach to order forecasting that might help make special parts more readily available. The current warehouse system for reporting may need reevaluation. The category manager will take more responsibility for control of boat parts this will improve efficiency. Step 3 - Finding special ordered partsTask - Contacting suppliersInvolved human capital - Category Manager, and Category AssistantIf the product ordered is not present in the warehouse it is important to relay this information quickly to the category assistant. The category assistant then looks to see which vendors have the part and informs the category manager who then authorizes the transaction. The category manager handles the transaction between the company and the supplier. Since a reduction in delivery time and cost is the goal of improving this process a more direct approach may help. This part of the process is where an increase in communication will take place between the warehouse manager and the category manager.Step 4 - Shipping to the consumerTask - Packaging and shipping partsInvolved human capital – Shipping Manager, Shipping ClerkThe shipping clerk is the responsible entity for the final stage of the process. The shipping clerk does the packaging and successful shipping of the orders. In this part of the process the final check to see that the part being packaged matches all the information is a key to accuracy. The next step is an assessment of which packaging materials will work best. Data and tracking are set up for each delivery. The shipping clerk sees that information is sent to the shipping manager so that documentation for on-time performance measures can happen.Project Name:West MarineDate:September 6, 2015Prepared By:Amy Denise BleakleyNotes:("What is RACI? Free download RACI Matrix Templates for Six Sigma," n.d.) StepTasksOrder ClerkInventory ClerkWarehouse ManagerCategory ManagerCategory AssistantShipping ClerkBoat Part ordersProcess OrderR,AS,C Inventory ControlKeeping Parts in stock R, AC,ISFinding special ordered partsContacting suppliers A,S,IR Shipping to customerPackaging and shipping parts  C,I SR,ARResponsibleAAccountableSSupportedCConsultedIInformed PART 3 – Performance ManagementProcesses ordersHow the metric will be assessedData will be collected and calculated for successful order filling from stock in warehouse, amount of time for filling orders in stock and order accuracy. The metric will analyze the efficiency of order clerks, inventory clerks, warehouse manager and shipping clerk.What the expected targets would beThe targets should be 95-100%, as these goals are achievable. A score of 95% or below would show a need for improvement in these areas.How the metrics fit the process objectivesThis metrics focuses on the implementation of the process and the improvement in warehouse availability that in turn saves steps and time. The scoring of parameters reflects one of our most important objectives improving our customers’ satisfaction. The successful shipping of accurate parts within the orders specified time frame is the goal. Inventory managementHow the metric will be assessedInventory management will calculate inventory accuracy, damaged product percentage, and successful storage utilization that will analyze the efficiency of warehouse management.What the expected targets would beThe target should be above 90%. Less efficiency will show a lack of improvement.How the metrics fit the process objectivesThis metrics will focus on the internal process flow and staff communication with management. If the process works at an optimal level, the process will utilize the warehouse to the full potential.Warehouse performance metricsHow the metric will be assessedWarehouse performance metrics will calculate orders per hour processed from in-stock items. The calculation of the total number of ordered parts, the total number of parts filled from the warehouse and the total number filled directly from suppliers. What the expected targets would beThe target for the warehouse metrics should be better than the previous month. Exponential growth in part orders filled from the warehouse, not special ordered from suppliers will represent the improvement.How the metrics fit the process objectivesThis metrics is entirely focused one improving the amount of parts filled in a more efficient way by having them available within the warehouse. The parameters will help in analyzing the performance of the warehouse manager, category manager and category assistant. ReferencesDuggan, T. (2013). Evaluating pros and cons of team leadership styles. Retrieved from http://voices.yahoo.com/evaluating-pros-cons-team-leadership-styles-12029679.htmlWhat is RACI? Free download RACI Matrix Templates for Six Sigma. (n.d.) Retrieved from http://sixsigmatutorial.com/what-is-raci-download-raci-rasci-matrix-templates-six-sigma/141/ Wheeler, C. (2014). Warehouse Metrics and Benchmarking That Matter. Retrieved from http://www.newcastlesys.com/blog/bid/352444/Warehouse-Metrics-and-Benchmarking-That-Matter
Business Process Management Assignment Unit 8

Business Process Management Assignment Unit 8

Question # 00103879 Posted By: d225747559 Updated on: 09/17/2015 01:02 PM Due on: 09/19/2015
Subject Business Topic Management Tutorials:
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Unit 8 Assignment: Establishing Baselines and Assessing Success

For this Assignment, write a paper that answers the following questions (use the subheadings/numbered questions below to organize your paper): Need 3 References no older than 2013

Part 1 and Part 2 need to tie into my last assignment which I have attached. The process used for these two parts are from Boat Parts Shipped by WEST MARINE and how BPM was used to improve the process. I have copied the metrics from my last assignment for the purpose of use in PART 2. PART # 3 is a case study that is not related to WEST MARINE. I have completed the TABLE in Excel hand have attached the Excel file. and a recap of the calculations for the table for this section already.

PART 1: Implementation Strategies Evaluate the suitability of the four implementation strategies discussed in step 2 for your project. Below are the Implementation Strategies: Need to discuss all 4.

Table 20.1 Implementation scenarios

Big Bang: The proposed change is introduced in one major overhaul

Advantages: Fast to implement • Minimal overhead

Disadvantages : Risk of disruption to the business is high Any errors may not be picked up and could have a high impact on the business

Parallel : The proposed change is introduced step-by- step (e.g., by location or business unit), with the next roll-out starting before the previous one is finished

Advantages: A relatively faster implementation • Ability to make use of lessons learned from preceding

Disadvantages: Additional resources will be required to assist with overlapping implementations Coordination of simultaneous roll-outs will be high and potentially compleximplementations

Relay The proposed change is introduced step-by-step with each roll-out only starting once the previous one has been completed

Advantage: Opportunity for a higher quality implementation as the lessons learned from the preceding roll-out(s) can be fully taken into account and the Time same implementation team can be used

Disadvantage: Lack of speed, as the implementation could, depending on the circumstances, take some time to complete High costs related to the duration of the project

Combination :A combination of the above mentioned implementation approaches—perhaps a small pilot and then building up to larger implementation

Advantage: Provides the organization with the benefits of tailoring the roll-out to the specific situation Flexible yet manageable

Disadvantage: Pitfall could be lack of communicating the rationale of this approach, as it might seem chaotic to some

Part 1 Questions that need to be answered:

.1 ? For each strategy, explain the specific pros and cons of using it for your project. The analysis should be based on how each strategy applies to the process you selected and the nature of your selected organization. Do not simply repeat the generic pros/cons from the book.

2? Select the one you think will work best in your situation. The best one for my process will be the Relay. Explain how you would execute this strategy for your selected process. What would be required for the success of this strategy when rolling out your revised process?

PART 2: Establishing Baselines

To begin, list three metrics that you think can help you quantify the performance of the current process. List and define the metrics clearly, explain why each metric is important in the assessment of the process, and then give an example of the statistic units. For example, if your metric is “speed of processing,” it may be defined by how quickly each employee audits a tax form, and the example would be that “on average, you would expect eight tax forms audited per hour.”

If you have already done this in a previous Assignment, you may copy and paste a summary from that Assignment. Then, revisit the metrics you selected for your baseline. For each metric, clearly discuss the following:

Part 2 Questions that need to be answered:

1) Describe what the metric is: how is it calculated and used currently?

2) As far as being used as a justifiable project goal, what kind of a change in this metric would constitute success? How did you arrive at this figure? If this target change figure is not possible to estimate now, then describe how you would compute it if you were actually carrying out this project: who would be involved and where would the data come from?

This is the performance metrics from my last Assignment which may work for this part but will need to answer the questions and update. Define how it is important to the process and then give examples of the statistic units. The two questions above  will need to be answered based on these metrics:

PART 2 – Performance Management Metrics from last Assignment using West Marine boat part order process:

1. Processes orders

a. How the metric will be assessed

Data will be collected and calculated for successful order filling from stock in warehouse, amount of time for filling orders in stock and order accuracy. The metric will analyze the efficiency of order clerks, inventory clerks, warehouse manager and shipping clerk.

b. What the expected targets would be

The targets should be 95-100%, as these goals are achievable. A score of 95% or below would show a need for improvement in these areas.

c. How the metrics fit the process objectives

This metrics focuses on the implementation of the process and the improvement in warehouse availability that in turn saves steps and time. The scoring of parameters reflects one of our most important objectives improving our customers’ satisfaction. The successful shipping of accurate parts within the orders specified time frame is the goal.

2. Inventory management

a. How the metric will be assessed

Inventory management will calculate inventory accuracy, damaged product percentage, and successful storage utilization that will analyze the efficiency of warehouse management.

b. What the expected targets would be

The target should be above 90%. Less efficiency will show a lack of improvement.

c. How the metrics fit the process objectives

This metrics will focus on the internal process flow and staff communication with management. If the process works at an optimal level, the process will utilize the warehouse to the full potential.

3. Warehouse performance metrics

a. How the metric will be assessed

Warehouse performance metrics will calculate orders per hour processed from in-stock items. The calculation of the total number of ordered parts, the total number of parts filled from the warehouse and the total number filled directly from suppliers.

b. What the expected targets would be

The target for the warehouse metrics should be better than the previous month. Exponential growth in part orders filled from the warehouse, not special ordered from suppliers will represent the improvement.

c. How the metrics fit the process objectives

This metrics is entirely focused one improving the amount of parts filled in a more efficient way by having them available within the warehouse. The parameters will help in analyzing the performance of the warehouse manager, category manager and category assistant.


PART 3: Case Analysis Read the following case study and answer the questions at the end. In 2009 it was decided that ABC Tire Company would implement a BPM project with the following goals:

? Decrease the labor cost per tire, and 

? Increase profit from each tire sold by 5%.

 To track the success (or failure) of the project, they determined the following baseline data for 2009: Total # of Tires Sold - Material s Cost Per Tire - Labor Cost Per Tire - Average Retail Price Per Tire - Average Profit Per Tire - 22,594 $21.23 $12.67 $119.00 $85.10 After implementing the BPM project, ABC Tire Company reviewed the value of the project after a year and identified the following information: Total # of Tires Sold - Total Materials Cost -Total Labor Cost - Average Retail Price Per Tire 27,669 $533,450.00 $397,555.00 $122.13 Using the data provided above, calculate and fill in the following table (show all your work; completing the table without the calculations will result in no credit): Material s Cost Per Tire Labor Cost Per Average Profit Per Tire % Increase or Decrease in Materials Cost Per Tire % Increase or Decrease in Labor Cost Per Tire % Increase or Decrease in Average Profit Per Tire :

 Table I made from the above using Excel is in the attached Excel file:


After the table is complete, address the following questions:


1. Why is it important to ensure that the baseline data is accurate?

2. Was the project successful? Why or why not?


I have completed the table in Excel and done a recap of calculations: Please check to see if these are accurate:

The following is recap of calculations: Please check to see if this is accurate:

The baseline numbers that are in chart one and two will be used to determine the numbers for chart three. The calculations are attached in an Excel spreadsheet. Material cost per tire equals total material cost from chart two divided by total number of tires sold from chart two ($533,450.00/27,669 = $19.28). Labor cost per tire equals total labor cost from chart two divided by total number of tires sold from chart two ($397,555.00/27,669 = $14.37). The average profit per tire is calculated by the total number of tires from chart two multiplied by average retail price per tire from chart two, subtracted by total materials cost from chart two minus total labor cost from chart 2, then divided by total number of tires sold from chart two (27,669*$122.13-$533,450.00-$397,555.00/27,669 = $88.48).

In order to determine the percentage of increase or decrease in material costs per tire, the material cost per tire in chart three is subtracted by the materials cost per tire in chart one, then divide by the material cost per tire in chart one ($19.28-$21.23)/$21.23= -9.19% decrease. To determine the percentage increase or decrease in labor costs per tire, the labor cost per tire from chart three is subtracted by the labor cost per tire in chart one, then divided by the labor cost per tire in chart one ($14.37-$12.67)/$12.67= 13.40% increase. To determine the percentage increase or decrease in average profit per tire, the average profit per tire in chart three subtracted by the average profit per tire in chart one, then it is divided by the average per tire in chart one ($88.48-$85.10)/$85.10= 3.97% increase. The comparison will show which goals have been met and which ones have not been met by ABC Tires.


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