Order Processing Time - Report
Added on - 28 May 2020
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Assessment Task 3Question 1AreaRequired corrective actionTimeAverage order processingtimeProductivity has to be improved by 10 percent for which areduction of order processing time is needed from 80minutes to 72 minutes. This can be achieved by automatingthe order processing process such that some of theprocesses become fast and do not need humanintervention[ CITATION Roy00 \l 16393 ]CostAverage cost to process anorderCost has to be reduced by $20 for processing orders whichwould again be reduced with automation as it would reducesome of the administrative demand and associatedcosts[ CITATION Mar16 \l 16393 ].QualityError rateThe rate of error has to be reduced to 1% and with theinstallation and order processing solution in the company,the processes would become digital and automated whichwould reduce the chances of human errors and thus, thisgoal can be achieved[ CITATION Ste17 \l 16393 ].ProductionAverage number of ordersprocessed per dayNumber of orders processed per day has to be increasedfrom 50 to 55. With saving on time with the use of orderprocessing technology, more orders can be handled everyday and thus, this objective would also beachieved[ CITATION Pet08 \l 16393 ].Question 21.Critically analyse the performance against planned objectives.a.Identify areas of non-performance.
Staff attendance is very short which reduces their productivity and thus, create a performance gap.Another gap in performance is due to the faulty layout of the warehouse which makes it difficult tolocate the goods while they have to be taken out as per orders. Also, the managers working in thewarehouse do not have sufficient training and need an intensive coaching as well as guidance fromold employees.2.Report on systems failures which contributed to these results.a.Consider failures in communication, planning, reporting and training.Failure to provide sufficient motivation for attendance of staff and lack of capabilities in managersare due to the following reasons[ CITATION ICO06 \l 16393 ]:20% of the employees are not given any clear guidance on the performance expectationsEmployees are given clarity on the goals of warehouse as no clear KPIs have been assignedto warehouse employeesKPIs are not SMART and thus, expectations from employees on performance are very clear3.Review performance indicators and refine if necessary.a.Comment on the suitability of performance indicators and what changes might berequired to achieve organisational goals.Performance indicators identified include absenteeism, turnover, long service leave liability, annualleave liability, employee engagement, and employee attended training sessions[ CITATION Ali15 \l16393 ].The targets for each indicator and actual results of B&A Toy Warehouse are shown in thetable below:Key Result AreaTargetActualAbsenteeism3%3.9%Turnover8%9.2%Long service leave liability$2.0 million$1.8 millionAnnual leave liability$1.5 million$1.2 millionEmployee engagement85%83%Employee attended trainingsessions4532Thebusiness plan has a goal of improving warehouse productivity by 10% by reducing orderprocessing time and cost and reduces errors made by employees in order processing. There are nometrics among the key metrics that are relevant to reflect upon the order processing performancerelated to cost, time and errors. Thus, these metrics would not be sufficient to reach the goal of theorganization. Although absenteeism, turnover, and training metrics could be useful but would notdirectly for achieving this goal of the organization. Some metrics can be added specifically related toorder processing to be able to record the performance of employees for achieving the businessgoals. These metrics could be individual productivity of warehouse workers and order processing