This document discusses sustainability and continuous improvement in the Australian retail industry. It covers topics such as continuous improvement models and theories, strategies, key performance indicators, and implementation methods.
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Running head: SUSTAINABILITY AND CONTINUOUS IMPROVEMENT Sustainability and Continuous improvement Name of the Student Name of the University Author Notes:
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1SUSTAINABILITY AND CONTINUOUS IMPROVEMENT Table of Contents Introduction......................................................................................................................................2 Purpose and Background.................................................................................................................2 Concept of Continuous Improvement..............................................................................................3 Continuous Improvement Models and Theories..............................................................................3 Proposed solution.............................................................................................................................5 Continuous improvement strategies................................................................................................6 Key Performance Indicators............................................................................................................6 Implementation................................................................................................................................7 Communication plan........................................................................................................................7 Training and Resources...................................................................................................................8 Feedback and evaluation..................................................................................................................8 Conclusion.......................................................................................................................................8 REFERENCES................................................................................................................................9
2SUSTAINABILITY AND CONTINUOUS IMPROVEMENT Introduction Sustainability is a key issue that separates a successful company from ones that are not successful. The latter is an issue that not only helps the company adopting it, it also helps in terms of gaining an advantage in terms of development of the environment. The Australian retail industry is competitive in nature and it can be said that gaining efficiency in operation can be achieved through continuous improvement in all the aspects of operations of the company (Ding et al. 2014). It has been found that Coles Supermarkets have been able to gain an advantage in operations through sustainability in operation and a cycle of continuous improvement. The purpose of this paper is to help in gaining understanding regarding the Continuous improvement, Models and theories explaining about the same, the evaluation of strategies from Coles, the communication plan that the company has adopted and aspects such as the communication plan that will help in terms of generation of ideas regarding continuous improvement through which the company achieves sustainability in operations. Purpose and Background As mentioned before, the Australian retail industry is competitive in nature. As a result of the same, the companies associated with the industry have to carry out activities with the help of which one company can gain an advantage over the other while they are in operations. Hence, catering to the needs of sustainability of the environment is an aspect with the help of which Coles can gain competitive advantage in the market that they are operating in. Continuous improvement is seen to be an aspect with the help of which the company aim to raise the standards associated with the sustainable initiatives of the company which helps the company in terms of catering to the needs of the environment and the diverse groups of stakeholders
3SUSTAINABILITY AND CONTINUOUS IMPROVEMENT associated with the company (Clark, Silvester and Knowles 2013). The company has paid due importance to continuous improvement as a result of which they have adopted the same into their regime. Concept of Continuous Improvement The main rationale that characterises the concepts of Continuous improvement is that even if the processes that are associated with the operations of a company are favourable in nature, the latter can always be improved. The aim of the concept justifies the fact that regardless of the stature of operations of a said aspect of an organisation, the process associated with the same can be improved, which might lead to sustainability in operations of the company or increased satisfaction of the consumer community or the achievement of better result as a result of the improvement in processes of the organisation. The latter helps them in terms of gaining competitive advantage in the industry that they are operating in. The concept was popularised with the help of Kaizen: The key to Japan’s Competitive success, which was solely based on the process of continuous improvement (Paraschivescu and COTÎRLEȚ 2015). After that the concept started gaining popularity and it can be applied by following a process that is known as the continuousimprovementlifecycle.The lifecycleisthe assimilationof steps such as identification of the opportunity for development, planning for the opportunity of development, execution of the taken plan and review of the information that has been taken through monitoring. Continuous Improvement Models and Theories The topic of Continuous improvement is a concept that has been relevant and the topic of discussion in global contexts (Hoeve, Jansen and Roodbol 2014). Thus, the topic has gained the
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4SUSTAINABILITY AND CONTINUOUS IMPROVEMENT attentions of various scholars and educational institutes who have carried out extensive research on the same. The research that has been carried out by the scholars and the institutions has resulted in the development of concepts inside of the concepts of the process of continuous improvement. Furthermore, there have been development of various theories catering to the process of continuous improvement. Following are some theories and models associated to the latter; Kaizen Theory: The Kaizen theory is based on the importance of commitments and cooperation that helps in terms different approaches to management of the process of change or transition in the processes of the organisation (Coimbra 2013). According to the theory, the process of continuous improvement is based on an idea regarding the development of positive changes that are based on miniature ideas. Total Quality Management: It is a perspective of management that is characterised by the culture in an organisation where the employees and the management of the organisation constantly seel methods through which they can improve irrespective of the current nature of operations of the organisation (Sallis 2014). PDCA Cycle: PDCA stands for Plan Do Check and Act. It is a model that is based on the cycle of continuous improvement and is an iterative approach that concerns continuous improvement of products and services, and people (Matsuo and Nakahara 2013). The latter has been able to establish its place in the modern day management activities that is considered to be lean in nature. Lean Theory: This is a theory catering to continuous improvement in an organisation by the maintaining a minimum amount of wastage in operation (Arfmann and Barbe 2014). It is a
5SUSTAINABILITY AND CONTINUOUS IMPROVEMENT process of management of activities through which the company caters to the needs associated with the development of activities that help in terms of minimisation of wastes. Six Sigma: The latter is a process that is characterised by the development of operations in an organisation that is carried out using various sorts of statistical data through measurement of data associatedwith the development of activitiesthat leadsto the developmentof activities associated to the process of continuous development (Antony 2014). SMAIC model: The latter is a mode of continuous improvement that is characterised by the developmentofactivitiesthatfollowaprocess(FernandesandFilho2016).Selection, measurement,Analysis,ImprovementandControllingaretheaspectsassociatedwith development regarding the said activities that are to be carried out by the organisation. Proposed solution The SMAIC model can be applied in terms of development of development of the activities of Cole’s supermarkets. The company has adopted policies aimed at the development of activities catering to the needs of sustainability of the environment. Reduction of the process of wastage and the mitigation of use of extensive amount of plastic can be seen as the process through which the motive of the company can be linked with as well as the lean theory. Selection of the issues associated with the development of the activities, measurement of the modification or identification of the target, analysis, improvement and control are the activities that are carried out by Coles in terms of development of the rationale for operations of the company. The company has selected environmental sustainability as an issue that needs to be catered to through the process of continuous development that is carried out by the organisation that helps in catering to the needs of sustainability of the organisation. The benefits that might be
6SUSTAINABILITY AND CONTINUOUS IMPROVEMENT the implications of the activities are ones such as development in terms of sustainability of the environment,helpingintermsofprotectionof theenvironmentthroughmanagementof hazardous implications on the environment. The latter is likely to help the organisation in gaining appreciation from the consumer community who are also moved by activities that are sustainable in nature. This also helps the organisation in terms of gaining sustainability in operations from which the organisation is likely to gain competitive advantage by satisfying the stakeholders. Continuous improvement strategies The strategy that has been taken up by the company is associated with gaining a competitive advantage through the development of sustainable initiatives. The main process that the company aims to improve is the quality of the service. Total Quality management is an aspect that is catered to buy the motive of the company. Mitigating the use of unnecessary use of plastic, reduction of the number of malts that is used for packaging. Apart from the latter it is also on the top of the priority list of the company to divert maximum amount of waste from the dumping grounds or landfills. The success of the latter will imply that the quality of service associated with the operations of the company is catered to apart from gaining effectiveness in operations by gaining the support of the governing bodies and the consumer community. Key Performance Indicators The key performance indicators are the factors that determine the effectiveness of the company in terms of gaining favourable outcomes through the strategies that have been taken up bythecompany.Since,themainmotivethathasbeendevelopedbythecompanyis characterisedbythedevelopmentofactivitiesassociatedwiththesustainabilityofthe
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7SUSTAINABILITY AND CONTINUOUS IMPROVEMENT environment,thesuccessofoperationsofthecompanywillbewitnessedthroughthe development of favourable activities on the environment. Benchmarkingis a process that is characterised by evaluation of the current state of operations of the company with activities that are deemed to be favourable and effective in terms of operations of the industries (Du, Liu and Issa 2014). Thus, by evaluating whether the operations that re being carried out by the company are effective in nature, the success of the company is evaluated. The latter helps in gaining ideas regarding the viability of operations of the company. It also helps in identification of issues by mitigating which the company can gain favourableoutcomesandsustainthegoalsinthelongrun.Apartfromtheprocessof benchmarking the Six Sigma approach can be used in order to gain favourable outcomes in terms of identification of the performance of the company and how it holds up with other companies in the same industry. Furthermore, the performance of the same can be adjudged in terms of the sustainable motives that has been taken up by the company while it operates in the industry that is deemed to be favourable in nature. Implementation The implementation of Continuous improvement is carried out through the mission and visions of the company in terms of catering to the said issue. The main objective of the sustainability issue to be taken up by the company helps in communicating the main motives of the company to the stakeholders. Incorporation of the said activity from the part of the company helps in implementation of the process of continuous development.
8SUSTAINABILITY AND CONTINUOUS IMPROVEMENT Communication plan It is imperative to communicate the motives of the company to the diverse groups of stakeholders. Thus, the motives of the company can be communicated with the help of a communication plan. The consumer community can be informed with the help of social media and traditional advertising, the board of directors can be informed in meetings, the management can also be informed through meetings, the investors and shareholders of the company can be informed through calls and emails respectively. Training and Resources Communication is the first step that needs to be carried out by the organisation, after which the latter have to carry out training programs through which the members of the supply chain will be informed about the rationale of the company regarding the said activity. The top level of the management of the company would need to elaborately explain all the activities to the employees that the latter would incorporate into operations and help in achieving the goals of the company. Feedback and evaluation The motive that has been taken by the company in terms of sustainability of the environment through the process of continuous improvement helps in catering to the needs of the environment through which the aim of the company can be satiated. Thus, wastage can be reduced and effectiveness in operation can be redirection of waste from the landfills. Conclusion On a concluding note, it can be said that continuous improvement is an activity that is deemed to be the process that helps in catering to the needs of a company in the long run. Coles
9SUSTAINABILITY AND CONTINUOUS IMPROVEMENT has taken a sustainable initiative in order to cater to the needs of the environment and gain competitive advantage in the industry that they are operating in. SMAIC, lean theory and total quality management are the aspects that have been incorporated into the motive that has been taken up by the company.
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10SUSTAINABILITY AND CONTINUOUS IMPROVEMENT REFERENCES Antony, J., 2014. Readiness factors for the Lean Six Sigma journey in the higher education sector.International Journal of Productivity and Performance Management,63(2), pp.257-264. Arfmann, D. and Barbe, G.T., 2014. The value of lean in the service sector: a critique of theory & practice.International Journal of Business and Social Science,5(2). Clark, D.M., Silvester, K. and Knowles, S., 2013. Lean management systems: creating a culture of continuous quality improvement.Journal of clinical pathology,66(8), pp.638-643. Coimbra, E.A., 2013.Kaizen in logistics and supply chains. New York, NY: McGraw-Hill Education. Du, J., Liu, R. and Issa, R.R., 2014. BIM cloud score: benchmarking BIM performance.Journal of Construction Engineering and Management,140(11), p.04014054. Fernandes,E.S.andBezerraFilho,J.E.,2016.SUBSISTEMADEINFORMAÇÃODE CUSTOS NO SETOR PÚBLICO: PROPOSTA DE UM MODELO DE MENSURAÇÃO E ACUMULAÇÃO COM BASE NA CONTABILIDADE POR COMPETÊNCIA.Advances in Scientific and Applied Accounting,9(2), pp.204-223. Hoeve, Y.T., Jansen, G. and Roodbol, P., 2014. The nursing profession: public image, self‐ concept and professional identity. A discussion paper.Journal of Advanced Nursing,70(2), pp.295-309. Juan Ding, M., Jie, F., A. Parton, K. and J. Matanda, M., 2014. Relationships between quality of informationsharingandsupplychainfoodqualityintheAustralianbeefprocessing industry.The international journal of logistics management,25(1), pp.85-108.
11SUSTAINABILITY AND CONTINUOUS IMPROVEMENT Matsuo, M. and Nakahara, J., 2013. The effects of the PDCA cycle and OJT on workplace learning.The International Journal of Human Resource Management,24(1), pp.195-207. Paraschivescu, A.O. and COTÎRLEȚ, P.C., 2015. Quality Continuous Improvement Strategies Kaizen Strategy--Comparative Analysis.Economy Transdisciplinarity Cognition,18(1). Sallis, E., 2014.Total quality management in education. Routledge.