Background/Context
Having understood the plan provided by the chairman, it is clear that there has been a clear segmentation in the production lines. John Jones has effectively deployed different teams in different production lines however there has been no effective communication level among them. He has only focused on the training of the employees instead of providing idea for the change in the production method. The incurred cost for the change has been projected to be more than $ 490,000. The anticipated savings for the entire operations would be around more than $ 200,000- in terms of service and repairing; $ 1 million in terms of lost productivity and errors and $ 300,000 in stuff turnover cost. This proposed change would no doubt be help full in creating a scope for the entire understanding of the people of different costs. In this case it can be stated the basic need for the company is to lessen the cost of production and staff turnover. The surplus amount from the saving could be utilised in different production lines altogether.
Description of the Change
The implemented changes brought difficulties among the staff and the production line. As the new staff were supposed to be trained in regards to the utilisation and usage of the newly brought machines, they training itself has been insufficient. Moreover increase in working hour in an objective to mould the staff on understanding the value of team has led in to dissatisfaction of the staff as they could give time to take care of the families. On top of that the intelligibility of the staff pertaining to the concept of percentage rate in production has not been developed by the company.
Scope
In order to propose a further change the theory of continuous improvement proposed by Kaizen can be taken into consideration. As the problem has been detected, the change needs to be implemented with small steps, as stated by Kaizen. Kaizen has focused on the improvement of quality with penetrating into the small changes in different segments. A lean programming can be taken in to account for the proposal of the changes. As it has been detected that the chairman has focused on the implementation of the changes pertaining to all of the sectors at a time, it would not be working effectively. The change would rather need to be implemented with the help of a plan in small aspects. Lean management would definitely focus on the reduction of manufacturing cost thus bringing new segments into effect. As a matter of fact, the basic criteria need to be focus on the understanding of the entire unit.
Transition Oversight
In order to ensure the communication infrastructure, change management and project management in the organisation, the company can hire a third party service provider that would take care of the entire unit thus easing the work load of the core organisation. With effective model from NAPM LLC in regards to its oversight structure the company can bring the involvement of the service agencies in to effect (napmllc.org 2017).
Transition Team
The core skills those are required for the entire unitary work is the understanding of effective reciprocity among the workers. Adaptability of the working staff needs to be ensured. Moreover, the team needs to be creative while making the changes in the production level. On top of that knowledge and experience needs to be strengthened so as to confirm the effectiveness of production level. Knowledge and experience would be taken into consideration depending on the exploitation of external and internal resources.
Transition Schedule
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Key Activity/Milestone/KPI
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Responsibility
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Start Date
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End Date
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Hiring of the Third Party service provider
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Taking up the duty of oversight structure
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June, 2017
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May, 2018
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Lean Programming
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Reduction in the production cost
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August, 2017
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June, 2018
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Training of the Employees
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Providing effective training to the employees so as to increase the standard and quality of production
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July, 2017
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December, 2017
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Human Resources Plan (activities to reduce any negative impact on people).
Integration of the staff in this context would lead to a mutual working environment. In this context it can be considered as one of the key elements of the staff retention in the organization. As a matter of fact, staff integration entails a positive attitude pertaining to a cohesive work culture. On the other hand, motivated employees will effectively understand the basic criteria of how the organization runs. The integration of the organizational goals with the individual goals brings forth increase in the production and improvement in the quality. In order to retain maximum number of the employees, the company needs to ensure the skill development programs such as acceptance of technology and job intellect.
Risks and Contingency Strategies
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Risks Identification/Description
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Contingency Strategies
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Lack of adequacy in training
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A proper framework needs to be specified as per the particularization of the requirements e.g: usage of the machines and acceptance of ICT and other technological interventions
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Overload of work in order to maintain team effort
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Small and specified team deployment to address one problem at a time
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Planning on every aspect all together
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Instead of implementation of planning in all the aspects at a time, Kaizen’s improvement theory could be used by looking into small aspects
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Communication Plan
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Com. ID
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The production staff- internal stakeholders, production and human resource manager,
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Information pertaining to the usage of the machines that have newly been procured during the process
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The company aims at providing relevant information to the workers and the managers by the end of July
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The information would be provided thrice in a week so as to maintain an effective balance between the workers’ training and the production process
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The third party service provider and the hired consultancy providing training to the employees would be taken into consideration
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References:
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
napmllc.org. (2017). napmllc.org. [online] Available at: https://www.napmllc.org/Docs/npac/ref_docs/08%2031%2015%20-%20Updated%20Transition%20Oversight%20Plan.pdf [Accessed 9 Jun. 2017].
