The assessment must be done based on the ABC scenario.
Scenario- ABC Shop Supplies Pty Ltd
ABC Shop Supplies Pty Ltd (ABC) is a company that sells packaging items and shopping bags (customised and not customised) to shops.
ABC was established 15 years ago, with a vision to be leader in supplying retailers with the best packaging products and in providing exceptional customer service.
Unfortunately, as the company grew and demand increased there have been an increasing number of complaints from customer: there are delays in the acceptance of the orders; there are errors in the orders customers receive; when they complain, their complaint is not addressed timely and professionally.
The board feels the pressure but they cannot commit more financial resources to employ new staff.
ABC requires the development and implementation of a continuous improvement (CI) project for improvement.
The issues are:
- The Head Office where the customer service department and the account department work is in Melbourne CBD. The warehouse is in Geelong.
- The warehouse employees three staff. Mark has been with ABC since the beginning and he resists any type of change. Lukas and George were employed two months ago, and they still have difficulties in finding items in the warehouse. Mark has very little patience with the two new employees so he insists in checking every order before it is shipped. Yet mistakes are made due to errors in labelling and organizing items in the warehouse.
- Mark is the one in charge of customer complaints and he is the one who deals directly with Head Office.
Errors in the warehouse when picking items for shipping are estimated at 45% of the total orders.
- Customers place their orders with the Customer Service Officer, Samantha, (CSO) at Head Office. As part of the process, the CSO must complete a credit check by calling the account department.
- The account department is very busy due to the increased workload and they tend not to answer all calls, which means that the credit checks, either when the order is submitted via the ABC website or via phone, takes long time and the order cannot be confirmed with the customer in a timely manner.
- Once the credit check is completed and the order approved, the CSO sends the order to the warehouse where an order slip is printed for the warehouse staff to collect the items and prepare the shipment of the order to customers.
- The account department where the account manager, Mary, and her assistant work, is feeling under pressure and they are late providing account reports to the board.
- The CSO is quite frustrated as she deals with the customer complaints first hand before she passes the complaints to Mark to rectify the order, organize the pick-up of the wrong items from customers and send the correct order to customers.
ABC has identified the following goals to be achieved:
• To reduce the cycle time of process from order to delivery to customer by 50%
• To introduce quality practices into the process to reduce customer complaints to zero by eliminating incidents of customer receiving the wrong items
• To introduce a culture of continuous improvement
• To improve work relationships and cohesiveness among departments and improve morale
You are required to develop and implement a CI project to achieve the goals identified by ABC.