Running Header: It is important that the individuals who will be using the new process stay aligned with the organization and the process goals.

Innovation and Performance Management

Amy Bleakley

MT 400

Kaplan University

September 6, 2015

PART 1 - Innovation Activities

The practical use of activities to help understand ways to improve processes requires application by the people who work with the process. It is important that the individuals who will be using the new process stay aligned with the organization and the process goals. One way to help with integration is through workshops that generate improvement ideas (Duggan, 2013). The process we are improving at West Marine is how we expedite special ordered boat parts more efficiently. Since this process includes internal and external stakeholders, we decided to hold a workshop to improve communication and seek ideas from all parties. The activity used in our workshop to generate new ideas is brainstorming. Brainstorming is a sound process for asking questions and addressing challenges. The process will allow for free flowing ideas from all stakeholders involved in the process. Each member of the group, in turn, will put forward an idea concerning the improvements needed for the process from their perspective. The process will continue until all ideas are recorded so that we increase the chance of originality and innovation.

One of the main objectives of our workshop is to bring together both internal and external stakeholders so that communication can take place. Since the area we are trying to improve on indirectly involves several of our suppliers we feel that this is a chance for our employees to see things from the vendor’s point of view. Often the people directly involved with the process never see or speak to the people who supply them with what they need to do their job. In our case, this workshop will be a chance for ideas to flow freely from employees involved in the

process and the people who supply that process. We understand that by brainstorming ideas from both angles we can obtain and record some real innovative suggestions for improvement.

The people participating in this workshop will be the employees in charge of the process, the employees that implement the process and representatives from our vendors. In the order process department, the order clerk and inventory clerk work together to get the process started after an order comes in from a customer. Since these two clerks are at the beginning of the process, they need to be present to initiate ideas from the start of the process. The managers from the warehouse need to be present because this is where the vital part of the process occurs. The availability of parts is a key to expediting this process. The four key people in this area are the warehouse manager, the category manager, the category assistant and the shipping department manager. Since part of the improvement in the process will take place directly with several of our suppliers, there is a need for supplier representatives to be present also. The ideal outcome for the workshop will be to obtain improvement ideas and engage in better communication with the main people involved in the process.

PART 2 – RASCI Model

The RASCI model for the project West Marine is made up of several of the tasks involved in the processing of boat part orders. These tasks revolve around the inventory segment where there is a new scope for improvement in the process flow. Below is the description of roles and responsibilities for the process flow.

Step 1 - Boat part orders

Task – Process the orders

Involved human capital - Order Clerk and Inventory Clerk

The order clerk handles receiving the order and validating the payment mode. Once confirmation is complete, the order clerk initiates the process flow. The inventory clerk is then consulted to see if the part is in the warehouse stock. The inventory clerk has only one responsibility, and that is to confirm if the part is in stock. Scheduling training for improving the roles of the order clerk and the inventory clerk will add more responsibility. The training will be on inventory management software already in place. The idea will be to cross train these two positions.

Step 2 - Inventory control

Task - Keeping parts in stock

Involved human capital - Warehouse Manager, Category Manager, and Category Assistant

The special boat parts should always be present in stock. It will be important to keep data on parts most frequently ordered. Order clerks and inventory clerks should track data by way of a central system integrated with the warehouse. The warehouse manager sends out the information exchange to the category manager so that he can do the proper forecasting. The warehouse manager is responsible and accountable for the products present in the warehouse. The category manager is the key liaison person between the warehouse and the suppliers. The warehouse is divided into separate segments; the category assistant has to stay informed to report on any updates regarding particular types of stock that need attention. It seems that more cross-functional management and accountability could be adapted to form a team approach to order forecasting that might help make special parts more readily available. The current warehouse

system for reporting may need reevaluation. The category manager will take more responsibility for control of boat parts this will improve efficiency.

Step 3 - Finding special ordered parts

Task - Contacting suppliers

Involved human capital - Category Manager, and Category Assistant

If the product ordered is not present in the warehouse it is important to relay this information quickly to the category assistant. The category assistant then looks to see which vendors have the part and informs the category manager who then authorizes the transaction. The category manager handles the transaction between the company and the supplier. Since a reduction in delivery time and cost is the goal of improving this process a more direct approach may help. This part of the process is where an increase in communication will take place between the warehouse manager and the category manager.

Step 4 - Shipping to the consumer

Task - Packaging and shipping parts

Involved human capital – Shipping Manager, Shipping Clerk

The shipping clerk is the responsible entity for the final stage of the process. The shipping clerk does the packaging and successful shipping of the orders. In this part of the process the final check to see that the part being packaged matches all the information is a key to accuracy. The next step is an assessment of which packaging materials will work best. Data and tracking are set up for each delivery. The shipping clerk sees that information is sent to the shipping manager so that documentation for on-time performance measures can happen.

PART 3 – Performance Management

1. Processes orders

   1. How the metric will be assessed

Data will be collected and calculated for successful order filling from stock in warehouse, amount of time for filling orders in stock and order accuracy. The metric will analyze the efficiency of order clerks, inventory clerks, warehouse manager and shipping clerk.

1. 1. What the expected targets would be

The targets should be 95-100%, as these goals are achievable. A score of 95% or below would show a need for improvement in these areas.

1. 1. How the metrics fit the process objectives

This metrics focuses on the implementation of the process and the improvement in warehouse availability that in turn saves steps and time. The scoring of parameters reflects one of our most important objectives improving our customers’ satisfaction. The successful shipping of accurate parts within the orders specified time frame is the goal.

1. Inventory management

   1. How the metric will be assessed

Inventory management will calculate inventory accuracy, damaged product percentage, and successful storage utilization that will analyze the efficiency of warehouse management.

1. 1. What the expected targets would be

The target should be above 90%. Less efficiency will show a lack of improvement.

1. 1. How the metrics fit the process objectives

This metrics will focus on the internal process flow and staff communication with management. If the process works at an optimal level, the process will utilize the warehouse to the full potential.

1. Warehouse performance metrics

   1. How the metric will be assessed

Warehouse performance metrics will calculate orders per hour processed from in-stock items. The calculation of the total number of ordered parts, the total number of parts filled from the warehouse and the total number filled directly from suppliers.

1. 1. What the expected targets would be

The target for the warehouse metrics should be better than the previous month. Exponential growth in part orders filled from the warehouse, not special ordered from suppliers will represent the improvement.

1. 1. How the metrics fit the process objectives

This metrics is entirely focused one improving the amount of parts filled in a more efficient way by having them available within the warehouse. The parameters will help in analyzing the performance of the warehouse manager, category manager and category assistant.

References

Duggan, T. (2013). Evaluating pros and cons of team leadership styles. Retrieved from http://voices.yahoo.com/evaluating-pros-cons-team-leadership-styles-12029679.html

What is RACI? Free download RACI Matrix Templates for Six Sigma. (n.d.) Retrieved from http://sixsigmatutorial.com/what-is-raci-download-raci-rasci-matrix-templates-six-sigma/141/

Wheeler, C. (2014). Warehouse Metrics and Benchmarking That Matter. Retrieved from http://www.newcastlesys.com/blog/bid/352444/Warehouse-Metrics-and-Benchmarking-That-Matter