Manage Innovation Project: Strategies for Australian Hardware's Growth

This project report analyzes the Australian Hardware company, focusing on managing innovation and continuous improvement. It begins with a review of the company's systems and processes, including supply chain, operational systems, and product delivery. The report assesses performance using key result areas (KRAs) and key performance indicators (KPIs), along with a sample service level agreement (SLA). It evaluates the effectiveness of review strategies and suggests improvements, incorporating quality management and continuous improvement theories. The project analyzes variances from plans and targets, discussing performance trends, missed opportunities, and the company's strengths and weaknesses. It then develops options for continuous improvement, including performance improvement strategies, team briefings, and risk and cost-benefit analyses. Finally, the project presents a detailed action plan for management innovation, including contingency plans, implementation considerations, and a schedule of activities, all aimed at fostering sustainable business growth and adaptation within the evolving market landscape.

Running head: MANAGE INNOVATION
Manage Innovation
Name of the Student:
Name of the University:
Author Note:

1MANAGE INNOVATION
Table of content
Task 1: Project -review program, system and process...............................................................3
Key system an process used by Australian Hardware...........................................................3
Develop performance and sustainability measures, assessment tools and techniques of
review strategy.......................................................................................................................3
Extensions..............................................................................................................................3
Describe evaluation of the effectiveness of review strategy and suggest improvement of
review strategy.......................................................................................................................5
Quality management and continuous improvement theory...................................................5
Analyse variances from plan and targets for the KRAs including discussion of performance
with regards to:.......................................................................................................................6
What trends did Australian Hardware fail to identify in the late 1950?................................6
Strength and weakness of the Australian Hardware Company prior to 1960........................7
Identify missed opportunities to improve business performance and describe one missed
opportunity in detail including an action plan........................................................................7
Discuss the possible use of advice from specialist to identify electronic or electronic
commerce opportunities.........................................................................................................8
Task 2: Develop option for continuous improvement................................................................9
Performance improvement strategy:......................................................................................9
Team briefing and consultant session:.................................................................................12
Revised performance improvement strategy:.......................................................................12
Risk analysis:.......................................................................................................................13

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Cost benefits analysis:..........................................................................................................14
Task 3: Management Innovation for continuous improvement...............................................15
Action plan:..........................................................................................................................15
Contingency plans:...............................................................................................................16
Implementation issues and failure:.......................................................................................17
Amend action plans and contingency plans:........................................................................18
Schedule activity:.................................................................................................................20

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Task 1: Project -review program, system and process
Key system an process used by Australian Hardware
Supply chain: To produce various toys, hardware and housewares the company purchased
high quality raw materials and packages from suppliers.
Operational system: Sales Team was responsible for taking orders from market, for
distribution the company used contract transport, and retailers sold the hardware directly to
the end user.
Product/service delivers: Design department and Planning department developed the idea
and translated these to estimate the required raw materials, timeline and scheduling.
Purchasing department was responsible for maintaining supply chain and inbound logistics.
Manufacturing department was responsible for production. Distribution department was
responsible for delivering the product to the consumers.
Develop performance and sustainability measures, assessment tools and
techniques of review strategy
In order to sustain the quality of the products and improve the quality the company should
implement multilevel review process with various effective tools, namely departmental
meetings, group discussion forum, training for innovation and productivity development.
Extensions
List of key result areas (KRA):
1. Better product variety

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2. Higher quality of product
3. Faster supply and manufacturing process
4. Faster distribution
List of Key performance indicators (KPI):
1. Higher demand
2. Better market reputation and share
3. Increased production rate
4. Improved consumer satisfaction
Description of performance review process:
Meetings are conducted among various departments and management board to identify and
eliminate the operational dilemmas. In workers discussion groups and forums workers can
covey about their experienced problems and satisfactions. Development of on-job and event
based training and development process increases the overall productivity and efficiency of
the workforce.
Sample service level agreement (SLA):
Agreement between: Australian Hardware and Package supplier
Agreement type: Inbound logistical and purchasing
Agreement details: Constant and daily supply of 360 crates of cardboard packages with
colourful cover for exchange of 20$ per crates.

5MANAGE INNOVATION
Describe evaluation of the effectiveness of review strategy and suggest
improvement of review strategy
In order to increase the efficiency of the supply chain the agreement and associated
terms and conditions should be maintained to reduce the expenditure for inbound logistics
more than 6% in each year. The internal meeting and conference is very helpful for
identifying the faults of operational system. Adequate training and development plan and
execution can increase the quality and diversity of the products. Reducing the selling price
and add extra promotional advantage, that can also increase the collective income more than
$2 million each year. Quicker distribution and warehouse planning can increase sales even
during 60’s when consumer behaviour was changing.
Quality management and continuous improvement theory
Quality management allow any organisation to keep track their manufacturing cycle
including supply and distribution, where the quality of the product can be sustained with
quality inbound raw material and with an efficient packaging and distribution system. To
implement this theory Australian Hardware could focus on the performance efficiency of
related department.
Improvement theory emphasise the improvement of product quality, production and
distribution performance through gradual improvement of workforce productivity and
potentiality. Australian Hardware could plan adequate training and development programs to
improve the performance of every individual.

6MANAGE INNOVATION
Analyse variances from plan and targets for the KRAs including discussion of
performance with regards to:
Quality-design/manufacturing: After 1961 no significant changes were made to improve
the quality design and manufacturing of the company. Rather Jack Wrather fired most of the
top members of management team that had huge impact on the quality of the products.
Sales: Sales staff had been increased 50% along with replacement of previous sales staffs
with new employees. On the other hand, expenditure on sales promotion had been increased
significantly that reduced the company capital.
Profit: From 1961 the company faced significant loss event after increasing the sales
expenditure by $1million per year. In 1962 the company experience the highest loss that is
$5.7 million.
Supply chain performance and delivery: In 1962 around 50 new supply and distribution
line were incorporated. High cost of extended lines decreased the effective profit in spite of
decreasing the expenditure for lines by $50 in each.
Business growth-staff, management performance and turnover: After 1662 the company
faced high employee turnover rate that touched its maximum limit in 1965. After this year the
company was running on a skeleton workforce.
What trends did Australian Hardware fail to identify in the late 1950?
During 1950 to 1960 the ethical and moral issues of socio-cultural distribution had
changed unexpectedly causing huge change in market demand and consumer behaviour.
During that time market demand was focused on new variety of the products, while

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Australian Hardware was still concentrated on the innovative presentation or promotions
instead of introducing new products and facilities.
Strength and weakness of the Australian Hardware Company prior to 1960
Market share- Moderate market share with gradual growth
Reputation- Well brand reputation for the quality and longevity of the products
Stability- The company faced a stable and gradual growth in product quality and efficiency of
internal process
Profit- Stable and gradual growth of profit
Sales- Increasing sales
Ability to adapt to changes- Moderate market analysis and trend adaptation power
Customer service standards- Moderate customer service with high time efficiency
Innovation- High innovativeness without compromising the quality
Employee performance- Moderate employee performance with increasing workforce strength
Production and manufacturing- Quality of product with efficient manufacturing cycle
Identify missed opportunities to improve business performance and describe one
missed opportunity in detail including an action plan
Australian Hardware could increase their product variety instead of extending their
logistic chains. During 1950 to 1960 the company had well opportunity to introduce more
innovative product by strengthen their design and development teams. Their action plan
could make huge success if they included increment policy of employee efficiency and cost

8MANAGE INNOVATION
effectiveness of products. Investing more on internal development could be more beneficial
in that point of time.
Discuss the possible use of advice from specialist to identify electronic or
electronic commerce opportunities
Internal: the management could have been consulted with the engineers to improve
the quality of equipment and to make them more advanced and profitable. Production and
manufacturing staffs could be asked for their operational problems. Human resource
management could strengthen the employee employer relationship.
External: Management can gather more information about market demand and
customer’s trends from marketing department. Engineers could help to make efficient supply
chain. Legal advisors could also help to make more strong and legitimate agreement policies.

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Task 2: Develop option for continuous improvement
Performance improvement strategy:
Performance improvement strategy
Strategic goals Process of Improvement
Upgrading manufacturing
equipments
 Consulting with engineers for finding out the disputes
of equipment
 Preparing schedule check-up plan
 Collect feedback from the employees of various
departments
 Market analysis for supplier selection to identify
appropriate equipment supplier
 Following trial handling method to ensure
authenticity
 Introduce the employees of manufacturing department
with the operating system of new equipment.
 Repairing rest of the equipments
Increasing employee
relationship and work
environment
 Collect feedback from the employees of various
departments
 Conduct survey and individual interview with
managers and leaders
 Consult with legal advisor for adequate work safety
and security arrangements
 Incorporate 360 degree monitoring system
Increasing employee efficiency
and productivity
 Incorporate performance measurement and
monitoring system
 Collect feedback from the employees of various
departments
 Effective training and development planning and

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scheduling without disrupting the work flow
 Recruit new employees having adequate quality and
efficiency
 Implement various recognition and rewarding
techniques and practices
 Implement situational leadership approach
Integrated Communication  Incorporate 360 degree monitoring system
 Creating online employee forum where employees
can freely convey about the problem they are facing
during working hours.
 Interviewing the leader and the managers
 Collecting feedback through regular basis survey and
occasional interviews with open ended question
Key Result Areas Target (KRA):
 Better product variety and attractive innovation of the products
 Innovative and diverse alteration of existing product
 Increasing the time and efficiency of supply chain and distribution network
 Increasing the faster and flawless manufacturing process
 Increasing market share by strategic market research and decision making
 Increasing sales by making good communication with potential customers and existing
customers
List of Key performance Targets (KPI):
 Improved logistic quality and decrease expenditure

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 Introduce more than 50 new products with high market value and demand
 Expanding consumer base by more than 60%
 Increasing rate of production by 15% with minimum percentage of manufacturing
defects
 Improved online and offline consumer base

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Team briefing and consultant session:
Power point presentation
Revised performance improvement strategy:
Amended Performance improvement strategy
Strategic goals Process of Improvement
Upgrading manufacturing
equipments
 Consulting with engineers for finding out the disputes
of equipment
 Preparing schedule check-up plan
 Collect feedback from the employees of various
departments
 Market analysis for supplier selection to identify
appropriate equipment supplier with cost efficiency
 Following trial handling method to ensure
authenticity
 Try to maintain similar operating system in new
equipments
 Repairing rest of the equipments
Increasing employee
relationship and work
environment
 Collect feedback from the employees of various
departments
 Conduct survey and individual interview with
managers and leaders
 Incorporate 360 degree monitoring system by 3rd party
monitoring department
Increasing employee
efficiency and productivity
 Incorporate performance measurement and
monitoring system

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 Collect feedback from the employees of various
departments regularly
 Effective on job training and development without
disrupting the work flow
 Recruit new employees having adequate quality and
efficiency
 Implement innovative and cost efficient recognition
and rewarding techniques and practices
 Implement situational leadership approach
Integrated Communication  Online based feedback
 Creating online employee forum where employees
can freely convey about the problem they are facing
during working hours.
 On job and real time feedback system
Approval of Manager Approval of Group member
Risk analysis:
Risk analysis
Activity Potential risks Timeframe
Strengthen the supply chain
management
High bargaining power of supply chain 1st month
Improving product innovation Lack of employee count 3rd month
Upgrading manufacturing
equipments
Extremely high maintenance cost 2nd month

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Increasing employee relationship
and efficiency
Excessive high employee demand and
complaints
5th month
Increase the reputation in market Fake marketing and opposing
marketing
4th month
Increase the sales High expenditure and low return on
investment
5th month
Cost benefits analysis:
Cost benefit
Activity Cost Benefit
Strengthen the supply chain management 5000$ 15000$
Improving product innovation 2000$ 12000$
Upgrading manufacturing equipments 4000$ 14000$
Increasing employee relationship and efficiency 1500$ 11500$
Increase the reputation in market 3500$ 13500$
Increase the sales 3000$ 13000$
Total 19000$ 41900$

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Task 3: Management Innovation for continuous improvement
Action plan:
Transition Action plan
Activity Objectives Responsible Measure Timefra
me
Strengthen the supply
chain management
Making good
relationship with
supply chain
parents,
transparent
contract policies
and agreement
Logistics
manager
Legal advisors and
agreement policies
5 month
Improving product
innovation
Develop new
innovative idea as
per the consumer
trends, designing
cost efficiently
Designer and
Developer
department
Fund for
implementing
concepts, suitable
platform for testing
6 month
Upgrading
manufacturing
equipments
Replacing old
equipment with
new, 12 hour
production cycle
Engineers,
electrical
advisors
Investment,
requirement
analysis
3 month
Increasing employee
relationship and
efficiency
Reduce turnover
by 32%, Adequate
staff count,
Human
Resource
Management,
Taring and
development
objectives, training
schedule
5 month
Increase the reputation
in market
TV, Radio, Printed
advertisement.
Marketing
department
Survey, interview,
promotion
3 month
Increase the sales Increase sales rate
by 22%
Sales
department
Promotional offers,
consumer
relationship
12
months

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Transition Communication plan
Activity Responsible To whom Communication
media
Timefra
me
Strengthen the supply
chain management
Logistics
manager and
legal advisor
Supply chain
partners
Mail, visiting 2 month
Strengthen the
distribution channel
and retailers
Logistics
manager,
Transport
department
Retailers and
contractual
transporter
Mail, by post 2 month
Communication with
technical advisors
Developers,
designers, Facility
department
Engineers,
electrical
advisors, IT
Mail, phone 2 month
Employee employer
relationship
Human Resource
Management
All
departmental
employees
Meetings, seminars,
individual interview
5 month
Consumer
Relationship
Sales and
marketing
department.
Consumer
forums, loyal
and potential
consumers
Online and offline
Survey, interviews,
5 month
Contingency plans:
Contingency plan 1
Activity Potential risks Alternative plan Timeframe
Strengthen the supply
chain management
High bargaining power of
supply chain
Offering greater price 1st month
Improving product
innovation
Lack of employee count Recruit appropriate
candidate
3rd month
Upgrading
manufacturing
equipments
Extremely high
maintenance cost
Some essential
modification of existing
equipment
2nd month

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Increasing employee
relationship and
efficiency
Excessive high employee
demand and complaints
Increment of remuneration 5th month
Increase the reputation
in market
Fake marketing and
opposing marketing
Promoting the previous
success of the company
4th month
Increase the sales High expenditure and low
return on investment
Borrow business loan and
initiate joint venture
5th month
Contingency plan 2
Activity Potential risks Alternative plan Timeframe
Strengthen the supply
chain management
Increase latency time Engaging corresponding
suppliers
1st month
Improving product
innovation
Productivity decreased Altering the innovation
objectives
3rd month
Upgrading
manufacturing
equipments
Increasing waste and by
products and low
manufacturing efficiency
replace the existing
manufacturing process
with new one
2nd month
Increasing employee
relationship and
efficiency
High staff resignation Change incentives policies 5th month
Increase the reputation
in market
High rate of faulty
products
Train staffs of
manufacturing department
4th month
Increase the sales Lack of consumer
relationship
Develop new consumer
helpline
5th month
Implementation issues and failure:
 Decreased productivity
 Supply chain and distribution delay
 Weaker west management
 Increasing production anomaly

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 High employee resignation rate
Amend action plans and contingency plans:
Amended Transition Action plan
Activity Objectives Responsible Measure Timefra
me
Decrease supply and
distribution delay
Planning of
effective
transportation rout
Logistics
manager
Traffic consultant,
new vehicles
3 month
Improving
productivity
Training and
development of
employees
HRM,
management
board
Training schedule 2month
Efficient waste
management
Altercation Waste
handling process
Engineers,
Facilities
Investment,
requirement
analysis
2 month
Increase employee
loyalty
Reduce turnover
by 32%, Adequate
staff count and
employee
satisfaction
Human
Resource
Management,
Funds for
remuneration,
work environment
planning
3month
Decrease production
anomaly
Exchange
equipments, repair
spare parts
Engineering,
manufacturing
department
Funds, schedule 4 month

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Amended Transition Communication plan
Activity Responsible To whom Communication
media
Timefra
me
Decrease supply and
distribution delay
Logistics
manager
Vehicle
companies
Mail, visiting,
phone
2 month
Improving
productivity and
employee loyalty
HRM,
Management
board
Design and
manufacturing
Employees
Meeting,
conference
2 month
Efficient waste
management
Facility, Engineer Local
authority
Mail, phone 1 month
Decrease production
anomaly
Facility,
management board
Equipment
suppliers
Mail, phone 1 month
Amended Contingency plan 1
Activity Potential risks Alternative plan Timeframe
Decrease supply and
distribution delay
Lack of vehicle supplier Offering greater price 2st month
Improving
productivity
Lack of employee count Recruit appropriate
candidate
3rd month
Efficient waste
management
Lack of area for dumping Initiating recycling
process
2nd month
Increase employee
loyalty
Work place health issues Legal consulting 4th month
Decrease production
anomaly
Frequent equipment
breakdown
Some essential
modification of existing
equipment
4th month

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Amended Contingency plan 2
Activity Potential risks Alternative plan Timeframe
Decrease supply and
distribution delay
Sudden route disturbance Alternate route choice 2st month
Improving
productivity
Frequent equipment
breakdown
Some essential
modification of existing
equipment
3rd month
Efficient waste
management
Lack of recycling
equipments
Consulting with recycler
companies
2nd month
Increase employee
loyalty
Frequent strike Emergency negotiation 4th month
Schedule activity:
Activity 1st Month 2nd
Month
3rd
Month
4th
Month
5th
Month
6th
Month
Management and
Stakeholder meeting
Decrease supply
chain delay
Decrease
manufacturing error
Workforce training
and development
Improve equipment
quality
Increase employee
loyalty
Marketing and
Proportioning