Report on Continuous Improvement Strategies for Australian Hardware

This report provides a comprehensive analysis of continuous improvement (CI) strategies for Australian Hardware, a major hardware and homeware retailer. The report begins with an introduction to the company, its mission, vision, and organizational structure, highlighting areas for improvement. It then delves into specific areas where CI can be implemented, including vendor selection, pricing strategies, customer service, and e-commerce models. The report also addresses questions related to HR procedures, recruitment, training, and the company's CI policies. Furthermore, it provides examples of effective CI processes, measurement and monitoring tools, and a detailed feedback mechanism for collaboration. The report concludes with a set of recommendations covering security enhancements, quality improvements, and marketing strategies, along with a coaching/mentoring session review and change management techniques, aiming to boost the company's market share and overall performance. The report also includes an analysis of scenarios and provides recommendations for improvements in customer service and sales processes. The report is a comprehensive look at how Australian Hardware can implement continuous improvement to improve business outcomes.

Australian Hardware
Continuous Improvement
NOVEMBER 3, 2017
Australian Hardware

Australian Hardware
Table of Contents
Task 1.........................................................................................................................................2
Introduction............................................................................................................................2
Improvement in Systems & Processes...................................................................................3
Questions on Implementation of CI Systems & Brainstorming Session................................4
Examples of CI Processes and Effectiveness.........................................................................5
Measurement Tools................................................................................................................6
Monitoring Tools....................................................................................................................6
Feedback to the Collaboration Group.....................................................................................7
Set of Recommendations........................................................................................................7
Task 2 - Coaching/Mentoring Session.......................................................................................7
Review of the Scenarios.........................................................................................................7
Results of Performance-to-date..............................................................................................9
Key Areas for Improvement.................................................................................................10
Suggestions for Improving Processes...................................................................................10
Task 3 - Feedback Communication..........................................................................................11
Answers to the Knowledge Questions..................................................................................11
Definition of Continuous Improvement (CI), Elements Implemented at Australian
Hardware & Role Description..........................................................................................11
Driving Forces for CI........................................................................................................11
Achieving the KPIs...........................................................................................................12
Set of Tools.......................................................................................................................12
Outcomes of the CI Process.................................................................................................13
Discussion of Feedback....................................................................................................13
Areas of Need for Coaching & Mentoring.......................................................................13
Additional Recommendations..............................................................................................13
Change Management Techniques.....................................................................................14
Conclusion................................................................................................................................14
References................................................................................................................................15
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Australian Hardware
Task 1
Introduction
Australian Hardware is an organization that is based out of Australia and set up its first store
in the year 1921 in Sydney. The company provides its customers with the best quality
hardware, homeware, garden supplies along with building material. The store managed to
establish a good market share and customer base over the years. Currently, it has 138 stores
and there are over 10,000 members of staff that are engaged with these stores
(Australianhardware, 2017).
The mission statement of the company states that the company provides the best quality
hardware, homeware, garden supplies along with building material to the customers at low
prices. The quality of the products, services that are provided and the level of engagement is
kept at the top priority.
The company has a vision of emerging as the top player in Australia in its field in the next
five years.
The organization chart of the organization has been illustrated below.
Organization Chart
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Australian Hardware
The company has also defined and developed business plan, marketing plan and risk
management plan to make sure that it is able to achieve the business goals and objectives as
per the defined path.
There are; however, certain loopholes that are present in all of these areas that can be
improved in order to make sure that the company achieves its goals successfully.
Improvement in Systems & Processes
Continuous improvement also referred as CI is a series of steps that are taken for streamlining
the business operations and for better organization of products, services and processes that
are associated with a particular organization (Huang, Rode & Schroeder, 2011).
In the case of Australian Hardware, there are numerous areas that have been identified that
can be improved.
 There are a variety of products that are offered by Australian Hardware to its
customers. There are also numerous vendors and suppliers that are contacted and
collaborated for the supplies. The company looks out for the suppliers from Australia
and beyond to provide quality and innovative solutions. However, the vendor
selection process can be improved by making use of data analytics tools to study the
vendor data and information present in the market. This will lead to the selection
process to be quicker and more accurate (Zain & Kassim, 2012).
 The pricing strategy that is followed in the company focuses upon maintenance of
margins without compromising on the quality of the products. The company shall also
launch discount deals and offers for the new customers as well as for the existing
customers. Such pricing offers will improve the customer engagement and will also
lead to the expansion of the customer base.
 Customer service that is offered by the company is both on-line and off-line. Such
services can be improved by making use of automated incident recording and
responding systems. This would allow the service and support staff to provide better
assistance to the customers.
 The company has taken up social and environmental responsibility to ensure that the
waste management is adequately done in the company. The company shall also
incorporate a group of volunteers along with the collaboration from local agencies and
suppliers for better waste handling and management.
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Australian Hardware
 There can also be improvements done in the customer engagement strategy by
introducing customer loyalty and reward schemes.
 The e-commerce model that is currently being followed in the company is Business to
Consumer Model (B2C). The company shall also include and provide services around
the e-commerce model as Business to Business (B2B).
 The cost of operations and sales can be reduced by shifting towards the scheme of
bulk buying.
 Training schedule and plans that are being followed at the organization can also be
improved by making use of automated resource trackers, activity trackers etc.
 There are new entrants in the market that are giving tough competition to the
company. The same can be handled and the strategies can be improved by offering
distinguished services to the customers (Ketata, Sofka & Grimpe, 2014).
 There are several risks that are probable to occur in association with the services and
processes that are carried out at the company. Such risks are currently being handled
by administrative and operational measures. There are improvements that can be done
by incorporating logical and technical tools for assessment and management of the
risks (Crane, 2013).
Questions on Implementation of CI Systems & Brainstorming Session
HR Procedures on Staff Skills:
 What are the classification of skill sets that are followed in the company?
 Who is responsible for the allocation of projects to the members of the staff?
(Ridgway, 2008)
 What are the initiatives taken by the company for the development of employee
skills?
 Are there any soft skills training program that is carried out in the company?
 What are the parameters on which the technical skills and abilities of the employee is
reviewed?
 What is the frequency of employee-manager discussion that takes place?
 What are the mandatory soft skills that are looked out for?
 What is the order of preference given to years of experience, soft skills, technical
skills, managerial skills and academic qualifications?
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Australian Hardware
Recruitment Strategies:
 What are the different phases that are involved in the recruitment processes?
 Who is responsible for the development of job descriptions?
 On what basis is the interview panel selected?
 How many rounds are carried out before the selection of an employee in the
organization?
 Who is the final decision maker in the process of recruitment?
 How often is the recruitment strategy revised?
Training Needs:
 Does the company have a training cell and department set up?
 Who is responsible for the development of training schedule and plan?
 What are the tools that are used in the conduction of trainings?
 Are there any customer-oriented training sessions organized?
 What is the feedback process followed during the training sessions?
 On what basis is the skill and knowledge of the trainer determined?
Policy of Continuous Improvement:
 What are the Continuous Improvement (CI) practices that are carried out in the
company?
 Are the employees at each level aware about the CI needs and requirements?
 What are the initiatives taken by the employees at their level for continuous
improvement? (Olaru, 2013)
 What are the administrative changes that are made annually and monthly in the
organization?
 What is the frequency of technical updates that are carried out?
Examples of CI Processes and Effectiveness
The CI processes that can be carried out in the company have been listed in the section
Improvement in Systems & Processes above.
The set of CI processes can be grouped in different categories as CI processes for quality
improvement. These can include the Six Sigma and Total Quality Management (TQM)
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Australian Hardware
initiatives that can be taken for the enhancements in the product and service quality (Coy &
Adams, 2012).
The CI processes that are associated with enhancement of services include the modification
in the vendor selection process, pricing strategy along with the customer service and
assistance activities.
There are also several processes that can be carried out in terms of the improvements in the
risk management and assessment strategy, initiatives to deal with the new entries in the
market, e-commerce models and likewise.
Security is one of the areas that can be impacted adversely with the occurrence of security
risks and attacks. There are limited steps and initiatives that have been witnessed in the area
of security. There shall be CI processes that shall be included for the improvement of security
by making use of security tools and mechanisms in the form of anti-malware tools, anti-
denial tools, network security tools and access control mechanisms (Ntu, 2017).
The above set of processes will be effective for Australian Hardware as these will make sure
that the quality and speed of services offered to the customers is improved. This will lead to
the improvement in the customer engagement and satisfaction levels. The customer trust in
the organization will also improve as a result and there will also be better revenues and
profits that will be earned. The market share captured by the company in the Australian
market is currently 8%. The top player in the list is Bunnings with 15% of the market shares.
The percentage for Australian Hardware will also improve with the execution of these steps.
(Awen, 2013)
Measurement Tools
There are a number of measuring tools that can be used to measure the success of the CI
initiatives.
 There are assessment tools such as radar charts or reliability excellence matrix can be
used to measure the effectiveness and success of the CI initiatives and processes.
 There are also comparison tools that can be used to measure the values of financial
parameters and return on investment (ROI) that is earned by the organization.
 Stakeholder assessment tools can also be used to make sure that the satisfaction levels
of the stakeholders is high with all the initiatives that are carried out.
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Australian Hardware
Monitoring Tools
There are also a number of monitoring tools that can be used for understanding the level of
implementation and progress that is made.
 Tracking tools: These are the automated tools that can be used to track the activities
and progress made by the CI team in terms of the percentage of work completed and
pending.
 Review and Evaluation Tools: These are the tools that can be used for the verification
and validation of the activities that are carried out under CI.
Feedback to the Collaboration Group
The feedback process to the collaboration group shall be based upon the following
parameters:
 Status of the work done
 Highlights associated with the process
 Areas of improvements
 List of risks, conflicts and issues that came up
 Additional comments
 Overall experience rating
Set of Recommendations
Continuous Improvement (CI) is a set of activity that has a significant role in the process of
ensuring that the organization improves upon the set of practices, processes and methods that
are carried out. There are several initiatives that Australian Hardware must take for
improving upon the set of practices and methods. These shall include the execution of CI
processes in the areas of security, quality, customer service and support, employee trainings,
risk management strategy, marketing plan and procedures.
Task 2 - Coaching/Mentoring Session
Review of the Scenarios
November 2017 Set of Problem Policy Item Action
Recommended
ABC is wandering in the store of
Australian Hardware for 15 minutes
The customer is
not able to look
out for the desired
Customer Services
& Support
The store must
have the support
staff for guiding
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Australian Hardware
item in the store the customers on
the items and the
sections
A sales receipt is submitted by a
customer along with an item to be
returned that is not familiar.
There is an issue
in the CRM/POS
systems
Sales The CRM/POS
systems along
with all the other
technical systems
shall be regularly
updated
An additional discount is asked by the
customer on the product that is
purchased on the basis of the norms of
the feedback procedure that was
collected last month.
The system does
not automatically
apply the discount
offers
Discount and
Offers
The system must
be fetch the latest
offer and deals
applicable to the
customer and a
daily batch job
shall run to feed
the same data in
the system
A customer is not able to register the
complaint on call after three
unsuccessful attempts and wishes to
take the matter to the senior
management.
The incident
recording team is
not available
Customer Queries
and Incident
Reporting
There shall be use
of automated
incident reporting
and recording
tools
A customer wishes to know about the
comparative information on the quality
aspects of the recent purchase made by
the store.
The website does
not provide any
details on the
quality aspects of
the purchases and
products
Quality Procedures The quality
norms, procedures
and methods shall
be present and
displayed on the
website
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Australian Hardware
Novemb
er 2017
Number
of
complaint
s
Return
s
Feedback
questionnaires
Enquiries
on call
Enquiries
on email
Online
enquiries
Enquiri
es in
store
Week 1 20 4 0 32 3 3 20
Week 2 25 3 0 34 2 1 25
Week 3 30 2 0 39 3 4 29
Week 4 35 1 0 41 4 3 33
Customer Data Sheet
Staff
member
Numbe
r of
sales
>9
Safety
checks
>4
Traini
ng
hours
>2
Record
keepin
g
activiti
es
>2
Coachi
ng CI
>1
Numbe
r of
Compl
aints
< 1
Sales
leads
>4
Staff
leads
>2
CI
implem
entatio
n
>2
Team
suppor
t
>4
Es
t
Ac
t
Es
t
Ac
t
Es
t
Ac
t
Es
t
Ac
t
Es
t
Ac
t
Es
t
Ac
t
Es
t
Ac
t
Es
t
Ac
t
Es
t
Ac
t
Es
t
Ac
t
A 10 16 4 0 3 3 4 4 3 0 4 5 9 10 3 1 3 0 6 9
B 21 26 4 4 3 3 4 2 3 1 2 0 9 14 3 2 3 0 6 8
C 16 26 4 3 3 5 4 5 3 0 1 0 6 8 2 2 3 2 4 0
D 11 4 4 4 3 5 4 2 2 5 2 3 5 7 2 2 3 4 4 0
E 31 30 4 0 3 1 4 3 2 0 2 0 11 11 3 1 3 4 6 5
Staff KPIs and Actuals
Results of Performance-to-date
The results can be seen in the three tables that have been depicted above. There is a massive
difference that can be seen in the estimated and actual values associated with staff KPIs.
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Australian Hardware
 The number of sales that are performed by the employees are good with few
exceptions. In most cases, they exceed the expected levels.
 The safety checks and norms are not being followed by the employees (Schultz,
2007).
 The training hours and sessions are being attended and the minimum requirement is
fulfilled by all the employees.
 The record keeping activities are satisfactory.
 Coaching CI and the activities around the same are not being effectively carried out.
 There are higher number of complaints that are witnessed in specific departments that
need to be handled.
 The sales leads are higher than the expected levels.
 Staff leads are lower than the expected levels.
 CI implementation can also be improved as the actual state is not up to the mark.
 Team support is good (Martin, 2008).
Key Areas for Improvement
 Incompatibility issues in the sales procedures and tools
 Reliance of the customers on the offline processes of enquiries and incident reporting
which shall be replaced by online measures
 Number of complaints is high
 The state of CI implementation process
 Information sharing around quality measures and steps
 Coaching and mentoring sessions
 Updates of the technical tools
 Record keeping activities
Suggestions for Improving Processes
 There are a number of incompatibility issues that are witnessed with the sales tools
and processes that are carried out. These shall be removed by making use of the
regular updates and the incorporation of latest technical measures
 Online incident reporting and recording team shall be set up and the customers shall
be made aware about the same through the stores and the online marketing mediums.
Email notifications shall also be sent on the same (Addison, 2004).
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Australian Hardware
 The number of complaints will drop by using the advanced forms of customer service
and support tools.
 The implementation process of CI shall be evaluated and monitored by the senior
management at regular intervals.
 The social media platforms shall be used for sharing the information around quality
tools and procedures with the customers. The same shall be uploaded on the website
and the blogs.
 The coaching and mentoring sessions shall be carried out at regular intervals and the
compliance towards the same shall be checked regularly.
 The technical tools and equipment that are used shall be reviewed and updated
regularly.
 The record keeping activities can be improved by making use of automated tools and
controls for the same (Piskurich, 2006).
Task 3 - Feedback Communication
Answers to the Knowledge Questions
Definition of Continuous Improvement (CI), Elements Implemented at Australian Hardware
& Role Description
Continuous improvement also referred as CI is a series of steps that are taken for streamlining
the business operations and for better organization of products, services and processes that
are associated with a particular organization.
In the case of Australian Hardware, there are numerous areas that have been identified that
can be improved, such as customer service, risk management strategy, quality procedures,
coaching and mentoring sessions and likewise.
The role for CI at Australian Hardware was associated with the identification of the areas of
improvements by analyzing the services and processes being carried out along with the
development of the decisions and strategies required for the execution of the CI initiatives.
Driving Forces for CI
The mission statement of the company states that the company provides the best quality
hardware, homeware, garden supplies along with building material to the customers at low
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