Key Systems And Processes Of AC Gilbert: Analysis And Evaluation

1. Key systems and processes used by AC Gilbert

There are a number of processes AC Gilbert company. The supply chain keeps the systems and processes in place at AC Gilbert; the chain has the sales team, the distribution team, and retailers in place.

The operational system handles a number of operations including design (BSBMGT608 manage innovation and continuous improvement, n.d.). Here ideas are developed by a group of designers; planning department looks at the requirements, sales, timeframe and plan for developing each plan. Purchasing department gets the raw materials for designing and packaging the products. The manufacturing department does the production and packaging of the toys ready for distribution (Emmanouilidis, Taisch, & Kiritsis, n.d.).

Production and service delivery is undertaken by the manufacturers and distributors respectively. Once the items have been produced, the items are taken to the warehouse for storage where the distribution team waits for orders from the supply team. The retailers sell the products directly to the consumers.

2. Performance measures, assessment tools, and techniques used in the evaluation of the effectiveness of the supply chain, operational and product service delivery systems.

a) Key result areas- the production and profit the company makes from sales.

No training offered on existing engineers in the production of new products

Increase in sales

Savings made amounting to $1.1 million in 1961

• Decline in quality of toys due to poorly made designs

b) Key performance indicator

• Jack Wrather is applying his knowledge in entertainment in the production of toys.
• Use of aggressive sales approach
• Advertisement using  color TV
• The ability to manufacture acceptable products with acceptable quality and price value.

• Use of cardboard box instead of metal boxes to reduce prices from $75 to $20.

• Repackaging of existing lines with bright colored packaging.
• Technicolor clothing

• Increased sales staff by 50%

c) Performance reviews- a company reviews its performance through feedback from customers and increased sales.

d) Service level agreements- acceptance of the product in the market can foresee high sales.

3. Evaluating effectiveness  and the analysis of variances

a) Quality- the toys that were manufactured by the AC Gilbert Company were of high quality; they were solidly crafted. The entry of Jack Wrather saw the production of poor designs with dolls coming with no change of clothing. The products were termed poor and overpriced, the manufacture then chose to reduce the price from  $75 to  $20, then developed an  erector set from cardboard  box instead of metal boxes and brittle parts instead of sturdy parts

b) Sales- The sales dropped drastically because of the poor products which never met the expectations of customers (Frontline Management Initiative, 2000). The making of erector set from cardboard box instead of metal was perceived poor quality design not attractive to the target market.

c) Profit- profit were down due to expansion and establishment of new lines

d) Supply chain performance (delivery)- the delivery of products was interfered by the internal strife and staff cutbacks, this saw the company operate on skeleton workforce, and products failed to reach the retail stores before Christmas (Quay, 2003).

e) Business growth (staff management performance and or turnover) – business growth was hindered by the firing of the existing executives and introduction of 50 new lines, use of existing personnel in the engineering and manufacturing departments who were inexperienced. With the use of independent manufacturers sales representative good relationships with customers were not created (Hastings, 2008).

4. Trends AC Gilbert failed to identify in the late 1950s and opportunities missed

a) Market share- advertisement using TV  

b) Reputation-  producing quality products

c) Stability- opening other new lines

d) Profit- channeling sales through manufacturer sales rep to cut cost hence improve profit

e) Sales- increase sales staff by 50% and use of aggressive sales approach.

f) Ability to adapt to change- creating products ranging from pre-school children, dolls and other toys for girls between 6 and 14 years

g) Customer service standards- purchasing display products to dealers

h) Innovation- bright and colorful packaging were used, Technicolor clothing

i) Employee performance- replacing existing employees, and channeling sales through independent manufacturers reps maintaining and in-house sales force.

j) Production and manufacturing- use of new technology in manufacturing

5. Specialists who could have been consulted to advise on and identify technology and electronic or other commerce opportunities

a) Internal- the engineers could have been consulted on the technology to be used, the manufacturing staff are to be trained in the technology and electronic, the sales personnel are consulted on customer preferences while the human resource personnel hires the best in the field of toy production and sales to meet target (Murray, 2013).

b) External- marketing consultants give the company a perfect marketing strategy, advertising experts create the eye-catching advert basing on the target group (Terziovski, & Sohal, 2000). An engineer can be consulted on new technology in the market; IT consultants give the trend in toys.  

No.	Key Performance Indicators(KPIs)	Key Result Areas (KRAs)	Metrics
1.	Capacity Building Jack Wrather is applying his knowledge in entertainment in the production of toys. Use of aggressive sales approach Advertisement using  color TV	No training offered on existing engineers in the production of new products	All existing engineers and production department need to be trained
The AC Gilbert reported no training on existing employees
Increase in sales	All sales personnel trained
Increase sales
2.	Operation Optimisation Use of cardboard box instead of metal boxes to reduce prices from $75 to $20.	Savings made $1.1 million in 1961	Amount time saved on manufacturing process
Increase in sales was reported	More production due to increased lines and new technology
3.	Product Optimisation Repackaging of existing lines with bright colored packaging. Technicolor clothing	Quality Conformance Decline in quality of toys due to poorly made designs.	94% Zero defects of produced products
Quality of products did not meet customer expectations
4.	Employee Satisfaction Increased sales staff by 50%	Employee Satisfaction Survey Adoption of aggressive sales approach	% average satisfaction about compensation and benefits
No satisfaction reported

References

BSBMGT608 manage innovation and continuous improvement.

Emmanouilidis & Kiritsis, D. Advances in production management systems.

Frontline Management Initiative. (2000). Frechs Forest, Sydney, NSW.

Hastings, H. (2008). Improve your marketing to grow your business. Upper Saddle River, N.J.: Wharton School Pub.

Murray, L. (2013). Leveraging on continuous improvement for cost management, profitability, and innovation. CFW Plexus, (AACCI 2013 Annual Meeting). https://dx.doi.org/10.1094/cplex-2013-1226-67w

Quay, A. (2003). Manage innovation and continuous improvement. Chatswood, N.S.W.: Software Publications.

Terziovski, M., & Sohal, A. (2000). The adoption of continuous improvement as well as innovation strategies in Australian manufacturing firms. Technovation, 20(10), 539-550. https://dx.doi.org/10.1016/s0166-4972 (99)00173-x