Continuous Improvement Plan: Australian Hardware Analysis and Strategy

This report presents a Continuous Improvement Plan (CIP) for Australian Hardware Limited, an Australian company focused on hardware and homeware goods. The report analyzes the company's current marketing and operational practices, identifying shortcomings such as a B2B marketing focus, lack of emphasis on repeat sales, absence of continuous improvement strategies like Six Sigma, and issues with timely delivery. The analysis highlights the need for a CIP, recommending the adoption of Six Sigma methodology. The plan includes communication objectives to increase stakeholder support and coordination, targeted at senior management, working teams, and suppliers, utilizing email and conferences. The implementation steps involve management recognition, employee communication, performance recording, training, and continuous monitoring. A detailed monitoring strategy is proposed, including targets, standards, KPIs, responsibilities, timelines, and technology. The report also addresses legal compliance through employee training and provides references to relevant literature on risk management, lean six sigma, and green supply chain management.

Running head: CONTINUOUS IMPROVEMENT PLAN
Continuous Improvement Plan
Name of the student
Name of the university
Author Note:

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CONTINUOUS IMPROVEMENT PLAN
Part B. Summary of the presentation:
Australian Hardware Limited is an Australian company which markets hardware and
homeware goods. Its main customer segments include DIY firms, home renovation business
firms and hardware retailers. The company has strong sustainability policies which involve both
management and employees. The sustainable policies of the company aim to ensure that the firm
operates in environment friendly ways. The sustainable policies of the firm include risk
management and waste management strategies as well. However, the marketing policies of the
company lack several aspects. First of all, the company does not consider domestic consumers as
a profitable customer segments and its marketing is restricted to B2B marketing. Secondly, the
company does not emphasise on repeat sales of goods or cross selling to existing customers. This
resulted in incurring immense expenses to acquire new customers. Thus, the revenue generated
per customer interaction of the company is low. Thirdly, the company does not incorporate
continuous improvement strategies like six sigma in its operations. Fourthly, the company has no
policy to ensure that the goods are delivered to customers on time which results in customer
grievances. This means that the company generates low revenue and incurs high operational
costs due to lack of efficiency in its operations. The analysis clearly points out that the company
should adopt a continuous improvement plan. The continuous improvement methodology which
the company would adopt would be six sigma. The analysis also shows that the stakeholders of
Australian Hardware include both internal and external stakeholders. The company should
communicate the plan to these stakeholders. Finally, it transpires from the analysis that adoption
of six sigma would enable the company achieve coordination in between its different operations
like marketing and procurement. This would boost the revenue generation of the company due to
increased coordination and efficiency.

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Part C.
Answer 1.
Part a. Communication objectives:
1. Increased stakeholder support.
2. Increase in coordination of the different operations of Australian Hardware.
Part b. Audience:
The audience would be senior management, working teams and suppliers.
Part c. Communication media:
Email and conference
Answer 2.
Step 1. Management of Australian Hardware recognise the outcomes or benefits it aims to
achieve through the continuous improvement plan in presence of the departmental heads.
Step 2. Departmental heads inform the employees about the targets.
Step 3. Employees perform and departmental heads record performances.
Step 4. Recognises training needs.
Step 5. Train employees
Step 6. Steps 1 to 3 continue
Answer 3. Monitoring strategy:
Targets (aligned with or consistent with organisational goals)- Increase in revenue generation by
10%

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CONTINUOUS IMPROVEMENT PLAN
Standards (compliant with relevant legislation, policies and procedures)- Increased compliance
with laws, policies and norms.
KPIs- To be decided by the management
Responsibilities for recording and reporting-Departmental heads
Timelines- 1 year
Technology and systems used for capture, storage and reporting of performance information-
Advanced technology like big data and cloud computing.
Answer 4.
Part a.
The departmental heads should record the performances of the employees on regular
basis. They should hold sessions with the employees on weekly basis to recognise opportunities
to improve their performances and new market opportunities. They should share the knowledge
with the management and relevant departments.
Part b.
One measure which the management of Australian Hardware can take to ensure legal
compliance is legal training of employees.

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CONTINUOUS IMPROVEMENT PLAN
References:
Bromiley, Philip, Michael McShane, Anil Nair, and Elzotbek Rustambekov. "Enterprise risk
management: Review, critique, and research directions." Long range planning 48, no. 4 (2015):
265-276.
Garza-Reyes, Jose Arturo, Vikas Kumar, Frank Chen, and Yi-Chi Wang. "Seeing green:
Achieving environmental sustainability through lean and six sigma." (2017).
Kocas, Cenk, Koen Pauwels, and Jonathan D. Bohlmann. "Pricing best sellers and traffic
generators: the role of asymmetric cross-selling." Journal of Interactive Marketing 41 (2018):
28-43.
Powell, Daryl, Sissel Lundeby, Lukas Chabada, and Heidi Dreyer. "Lean Six Sigma and
environmental sustainability: the case of a Norwegian dairy producer." International Journal of
Lean Six Sigma 8, no. 1 (2017): 53-64.
Scur, Gabriela, and Mayara Emília Barbosa. "Green supply chain management practices:
Multiple case studies in the Brazilian home appliance industry." Journal of cleaner
production 141 (2017): 1293-1302.