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a. Suuply chain

The supply chain was initiated with the sales team taking orders from the customers followed by distribution of the products and services through operational arrangements. Finally the retailers were sold the toys so that they could further send it to end users.

b. Operational systems

The operational system that was followed by AC Gilbert includes designing of the toyes as per the concepts developed by small group of designers. This process is followed by planning that translated the designs in material form through which cost estimation and sales expectations were finalized. The next process was purchasing of raw material as per the requirements of products. Manufacturing is followed in the next process when the actual production of toys that were finalized in the planning process. Finally the distribution of the toys produced was made after packaging them. Thys final sellers were sold toys by supplying them through various channels of distribution that were employed by the company.

c.  Product/service delivery.

The product or service delivery took place after the order initiation that was made and picked by the sales team. The same orders were forwarded to the purchase and sales department of the company that would make arrangements through production and inventory management. Later the retailers were supplied with ordered toys using various physical distribution channels.

The three key systems and processes that were developed was taking orders, making arrangements and supplying good to the customers. These key systems can be reviewed as continuous improvement theory and quality management as follows.

a.    Taking orders:

i.    Increase in sales staff by 50% was made so as to achieve higher number of orders from distant places.
ii.    Replacement of existing executives were made with people of new majority stakeholder Jack Wrather with a motive to achieve higher effectively of business operation.
iii.    Organization goals were set to $20 million for 1963.

b.    Making arrangements:

i.    Making 50 new lines in less than twelve months so as to increase product range available for sale.
ii.    Efforts were made to design new products and services as per the demand of the customers.
c.    Supplying goods to the customers:
i.    Customers were supplied after repackaging of the existing lines is made by spending up to $1 million.
j.    Extensive advertisements on television were executed so that customer get to know about the various products sold by the company and its associated benefits.
The Key results areas therefore includes the sales appreciation, popularity of company products through adverstiment and repackaging of existing line to attract customers.
The Key Performance Indicators or KPI includes the followings.
i.    Sales loss of $281,000.00.
ii.    Setting up of unachievable organization target for sales at $20 million for 1963.
iii.    Increasing sales staff by 50%.
iv.    Introducing 50 new lines in production system for new generating new product range.
The performance review processes includes taking feedbacks from customers who indicated that the products made by company in the recent year were poorly designed, low quality and highly priced.

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