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Continuous Improvement Plan: Assignment

   

Added on  2020-03-23

12 Pages3719 Words150 Views
Business Development
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Continuous Improvement planTable of ContentsIntroduction......................................................................................................................2Problem Description....................................................................................................................2Project Rationale.........................................................................................................................2Objectives..........................................................................................................................2Timeframes.......................................................................................................................3Challenges.........................................................................................................................3Continuous Improvement Plan.........................................................................................4Root Cause Analysis....................................................................................................................4Needs Assessment........................................................................................................................6Improvement Actions..................................................................................................................6Implementation Plan.........................................................................................................8Communication Plan........................................................................................................9Conclusions.....................................................................................................................10References.......................................................................................................................111
Continuous Improvement Plan: Assignment_1

Continuous Improvement planIntroductionLatino engineering is a manufacturing organization that sells specialized engineeringequipments to companies in New South Wales, Australia. The company has 300 employeesand it has been taken over by another organization. The services of Latino include designing,development, and manufacturing of equipments and they are served to industries likeconstruction, utilities, infrastructure, and oil & gas.Problem DescriptionAn investor organization has acquired Latino Engineering a year back but the companystarted to face some major challenges within a year of acquisition such as a decline in thecustomer orders and increase in the customer complaints. Customers frequently complainedabout the delivery of defective or wrong equipments, poor follow ups, long turnaround time,and non-responsive team.Project RationaleBecause of the increasing complaints from customers, the number of orders received by thecompany is reducing and this is causing major concern to the company as it is affecting itsbottom line profitability. The company needs to take appropriate steps to resolve issues facedby the company. The company needs an improvement in its existing processes and a solutionfor all the operational problems it is facing. For this, a continuous improvement plan usingsix sigma approaches is suggested which help the company would come out of the existingproblems in the next three months by reduction of customer complaints. The six-sigmamethod is chosen as it effective in situations where the time available for makingimprovements is very less which is true for the current case. The company needs a fastimprovement plan with methods that are proven to be effective and can get the companymake rapid improvements. The company has already lost some of its customers and thus, ifthe improvements are not done fast, it would face the risk of losing more customers in nearfuture[ CITATION Car17 \l 16393 ].ObjectivesObjectives of the plan include:Reduction in the defective parts or equipments that are manufactured by theorganization2
Continuous Improvement Plan: Assignment_2

Continuous Improvement planImprovements in the order processing systems such that problems like wrongdeliveries and delayed deliveries can be reducedImproving the customer service turnaround time and feedback system of the companyto enhance customer satisfaction.TimeframesIf the continuous improvement plan is approved, the process of execution of the plan wouldbehind by 1st Jan 2018 and would be finished by 31st Mar 2018Action StepsMilestonesIdentify root causes behind the issues5th Jan 2017Develop proposal for continuous development using six sigma10th Jan 2017Get approval for the continuous development 15th Jan 2017Initialize continuous development project by preparing resources for adopting six sigma20th Jan 2017Identify activities to be completed for the continuous improvement25th Jan 2017Get continuous improvement plan approved27th Jan 2017Eliminate defects in equipments5th Feb 2017Improve order management process20th Feb 2017Improve follow up system for designing and development28th Feb 2017Reduce turnaround time15th Mar 2017Improve service delivery25th Mar 2017Testing30th Mar 2017Project Closure31st Mar 2017ChallengesThe company is facing certain challenges at present that have to be managed. These include:The customers of the company are receiving defective products from the company.This could be due to the inability of the manufacturing unit to produce defect freeproducts. These defects can be because faults in designing or faults in manufacturing.To know if a product is defect free, the organization needs to test it for the variation inquality or the output against some benchmark. In case of the company’s inability toappropriately differentiate between normal and defective products or makingpredictions about possibility of producing defective products, the company finds itchallenging to deliver a defect free product[ CITATION Aso17 \l 16393 ].The operational efficiencies of the company has declined causing decline in theproductivity. Wrong deliveries, defective product delivery, and misplaced orders are3
Continuous Improvement Plan: Assignment_3

Continuous Improvement plansome of the issues that have resulted from these inefficiencies in thecompany[ CITATION Min17 \l 16393 ].The company staffs are not able to follow up with the customers of the companyeffectively in the stages of designing and development. This has resulted indissatisfaction among customers of the company[ CITATION Pau12 \l 16393 ].The Turnaround time of the services of the company is more than what is expected byits customers and thus, customers have been complaining about the same. Thecompany is using a variety of different applications for managing different stages ofsupply chain. The people working in the organization need to exchange informationbetween these channels which is difficult because of lack of integration betweenthem. This increases the communication time and thus, the order processing timeaffecting the efficiency of the services negatively[ CITATION Asu13 \l 16393 ].In certain cases, wrong products have been delivered to the customers of theorganization which reflects that there are problems in data and informationmanagement causing inaccuracies that affect deliver system of the organization. Continuous Improvement Plan A continuous development plan has been made based on the principles of six sigma for thecompany. The plan includes root cause analysis, needs assessment, and improvement actions.Root Cause AnalysisThe problems that the company is facing current have resulted from specific causes atdifferent stages of product development as explained below:Order processing: Inefficiencies in deliveries can result from inaccuracy of data that isgenerated in the order management process. Some factors that can cause such an influence onthe deliveries and order processing include value of products, consignment size, and deliverycontracts. Some causes behind wrong or delayed deliveries could be wrong address receipt,missing address, inability to get contact details of the recipient, order entry errors, and salesorder modifications[ CITATION Joh122 \l 16393 ].Designing & development: The customers are complaining about the follow ups from thecompany staff during the designing and development phases. The difficulties in follow upcould be a result of inefficiencies in information management which would make it difficultfor the employees to keep track of order status and thus, they may not be able to resolve the4
Continuous Improvement Plan: Assignment_4

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