Students are required to read the case study on AC Gilbert and answer a series of questions based on the information provided.
1. Analyze the key systems used by AC Gilbert. Identify one issue from each system and recommend at least one opportunity that could have been improved the systems.
a. supply chain
b. operational , product service delivery systems
2. Identify two performance measures and two assessment tools / techniques that you would use to evaluate the effectiveness of the supply chain, operational product service and delivery systems.
3. What strategies could AC Gilbert have implemented to monitor and evaluate the performance and sustainability of these systems and processes? Identify and explain three strategies.
4. What trends did AC Gilbert fail to identify in the late 1950s? Discuss the trends that were missed, including how AC Gilbert could have used this information to grow their business. Identify at least two trends that were missed and how AC Gilbert could have used these opportunities.
5. What specialists could have been consulted to advise on and identify technology and electronic or other commerce opportunities? Identify three specialists.
6. Analyse the business performance report. What is the variance and why do you think the variance has occured?
Satisfactory Not yet Satisfactory
1. Analysis of key systems â€“ Identified one issue from each system and recommend at least one opportunity that could have been improved the systems.
(supply chain, operational, product service delivery systems)
â€“ didnâ€™t identify one issue from each system and didnâ€™t recommend at least one opportunity that could have been improved the systems.
(supply chain, operational, product service delivery systems)
2. Performance measures
â€“ Identified two performance measures that could be used to evaluate the effectiveness of the supply chain, operational product service and delivery systems.
â€“ Identified less than two performance measures that could be used to evaluate the effectiveness of the supply chain, operational product service and delivery systems.
3. Assessment tools / techniques â€“ Identified two assessment tools and/or techniques that could be used to evaluate the effectiveness of the supply chain, operational product service and delivery systems.
â€“ Identified less than two assessment tools and/or techniques that could be used to evaluate the effectiveness of the supply chain, operational product service and delivery systems.
4. Monitoring and evaluating â€“ Identified and explained three strategies AC Gilbert implemented or could have implemented to monitor and evaluate the performance and sustainability of the systems described above.
â€“ Identified and explained less than three strategies AC Gilbert implemented or could have implemented to monitor and evaluate the performance and sustainability of the systems described above.
5. Trends â€“ Identified at least two trends that were missed by AC Gilbert and described how they could have used these opportunities.
â€“ included supporting statments as to how AC Gilbert could have used this information to grow their business.
â€“ Did not identify at least two trends that were missed by AC Gilbert and described how they could have used these opportunities.
â€“ No supporting statments included as to how AC Gilbert could have used this information to grow their business.
6. Specialists â€“ Identified three specialists who could have been consulted to advise on integration, recommend technology and electronic or other commerce opportunities.
â€“ Identified less than three specialists who could have been consulted to advise on integration, recommend technology and electronic or other commerce opportunities.
7. Analysis of report â€“ Accurately analysed the business performance report
â€“ Identified the variances (if any)
â€“ Provided comprehensive analysis as to why and how the variance occured
â€“ Did not accurately analyse the business performance report
â€“ No information provided on variances (if any)
â€“ Little or no analysis as to why and how the variance occured
Alfred Carlton Gilbert was an inventor and a toy manufacturer who invented the Erector engineering set. His original company, The Mysto Manufacturing Company, was founded in 1909 to manufacture the Erector set. In 1916, Mysto became the AC Gilbert Company and gained a reputation for producing quality toys.
By the 1950s, AC Gilbert was one of the leading toymakers in the United States with annual sales regularly topping $17 million. This was an outstanding achievement for a relatively small company.
In 1961, AC Gilbert senior died, leaving the company in the hands of his son, AC Junior. At the time AC Junior took over the firm, the company was established as a traditional, reliable and profitable manufacturer of educational toys.
Product lines and rationale
AC Gilbert produced train sets but their most popular lines were chemistry sets, microscopes and their best seller, the Meccano-like Erector engineering sets that had been popular with children for more than 50 years.
AC Gilbert toys were not cheap. They were high quality, solidly crafted and made to endure. Parts and packaging were designed to last for many years, with the Erector set packaged in long-lasting metal boxes. The focus was on educational toys, primarily aimed at boys rather than girls. The company had a limited range but what they did manufacture was top quality and highly regarded.
Systems and processes
AC Gilbert was a small company. The following model demonstrates the systems and processes in place.
Note: These flowcharts have been included for assessment purposes only, and may not accurately reflect the actual processes in place at AC Gilbert.
As the 1950s moved into the 1960s, there were huge cultural changes across the world. The fifties were a very traditional era of family values and morals, conservative and staid. Then came the â€˜swinging sixtiesâ€™. The sixties were a time of rapid change both technologically and culturally. Old fashioned values gave way to new moral freedoms. The sixties brought us the Pill, Lady Chatterleyâ€™s Lover, the Twist and Elvis.
Where the fifties represented solidarity and familiarity, the sixties embraced change. Everything was bolder, brighter and more daring. A new young President and rising social activism by youth saw changes in clothing, music and interests. Young people rebelled against the values of their parents and embraced a more fast paced, exciting and riskier lifestyle.
Changes to the toy industry
Cultural changes had a huge impact in western toy markets. Barbie and Action Man became â€˜must haveâ€™ toys. Girls moved away from baby dolls and cots and wanted dolls that were more grown up, modern and trendy. They wanted dolls they could dress in the latest fashions and who had exciting â€˜careersâ€™, boyfriends and cars of their own. Boys were moving away from the traditional train sets towards exciting new slot-car racing sets and action figures from popular movies and television shows.
Traditionally, toy advertising had been done via magazine promotions but the sixties brought in a new phenomenon: television advertising. A hugely powerful medium, TV advertising became increasingly â€˜hard sellâ€™, with toys heavily promoted, especially in the lead up to Christmas. Children wanted the latest and greatest toys that they saw in these advertisements and put pressure on their parents to buy, which they did.
Retailing of toys during this period reflected a shift in retailing in general. Small, specialty retailers with experienced and knowledgeable staff were going out of business, replaced by large discount stores catering for the mass market. The goal of this type of retailer was to turnover stock. Heavily advertised lines were in demand and that is what they would stock. Cheap was in and giant retailers were after a quick profit from easily saleable, inexpensive products. They werenâ€™t interested in catering to a niche market by stocking more expensive, harder to shift lines.
Packaging was bright and colourful in order to attract children growing up in a world of colour TV, Technicolor clothing and visual stimulation provided by the swinging sixties.
Impacts on AC Gilbert
As a small, traditional company, AC Gilbert was slow to react to these changes. It may have been that they were not aware of the changes or were overly confident that their good name and reputation was sufficient to continue trading as before. The consequences of this short sightedness soon became apparent.
1961 (figures approximate)
L/Y Sales Actual sales Difference Profit
$12.6 million $11.5 million ($1.1 million) $20,011.00
This drop in sales was also reflected in a fall in the share price of the company.
As a result of the falling profits and share price, the company became attractive to an opportunistic businessman, Jack Wrather. Jack Wrather was an independent television producer who had made his money producing the popular programs â€˜Lassieâ€™ and â€˜The Lone Rangerâ€™. Jack Wrather wanted to purchase a successful business and felt that in AC Gilbert, he had the opportunity to use his knowledge of popular entertainment and apply it to the production of toys. He purchased 52% of AC Gilbert for $4 million and immediately set about making his mark on the company. AC Junior stayed on as Chairman but his influence was minimal.
Actions taken by Jack Wrather
? Set a goal to achieve sales of $20 million in 1963.
? Replaced the top AC Gilbert executives with his own people.
? Initiated a massive advertising campaign.
? Increased sales staff by 50%.
? Instructed sales staff to adopt an aggressive sales approach.
? Introduced 50 new toy lines, raising the line to 307.
? Changed the focus from traditional boys toys to ranges for pre-school children, dolls and other toys aimed at girls between the ages of 6 and 14.
? Spent $1 million on changing the packaging for all lines to brighter, more colourful boxes.
Year Sales Difference from previous year Profit
1961 $11.5 million ($1.1 million) $20,011.00
1962 $10.9 million ($600,000.00) ($281,000.00)
1963 $10.7 million ($200.000.00) ($5.7 million)
1964 $11.4 million $700,000.00 ($2.6 million)
1965 $14.9 million $3.5 million ($2.9 million)
1966 $12.9 million ($2 million) ($12,872,000.00)
1967 AC Gilbert closed 1967
Year Customer Satisfaction Levels % Variance from pervious year
1961 92 2
1962 85 (7)
1963 52 (33)
1964 56 4
1965 45 (11)
1966 28 (17)
1967 AC Gilbert closed 1967
? Jack Wrather purchased 52% of AC Gilbert.
? Replaced existing executives with his own people.
? Increased sales staff by 50%.
? Implemented extensive television advertising.
? Set an organisational goal to achieve sales of $20 million for 1963.
? Company recorded a loss of $281,000.00.
? Introduced 50 new lines in less than 12 months, using existing engineers and production departments who lacked training and experience in the new product range.
? Repackaged existing lines at a cost of $1 million.
? Sales and profits down on previous year.
? Anticipated drop in profits due to expansion and cost of establishing new lines.
? Sales fell short of expectations.
? Decline in quality of toys â€“ feedback indicated products poorly made and designed (dolls did not even come with a change of clothing).
? New range perceived by customers as poor quality and over-priced â€“ not value for money nor attractive to the target market.
? Jack Wrather fired most of the top management team he hired two years previously.
? Crisis management lead to multiple changes and dramatic measures being taken and then changed â€“ often one measure contradicting the previous.
? Jack Wrather hires new CEO â€“ Isaacson.
? Isaacson fires the entire sales team.
? Isaacson makes huge cutbacks in spending.
? Sales are channelled through independent manufacturers reps, which was cheaper than maintaining an in-house sales force.
? Long standing relationships became soured as the independent reps worked on commission and pushed sales, with no interest in maintaining or building relationships with customers.
? AC Gilbert had built its success on personal service and building relationships â€“ that was destroyed within 12 months.
? AC Gilbert Junior dies and is replaced as Chairman by Jack Wrather. Isaacson assumes the role of President.
? Prior to Christmas, many of the previous yearâ€™s failed products were deleted and 20 new items introduced.
? Reduced the price of core lines such as the Erector set from $75 to $20 but quality also impacted â€“ cardboard box instead of metal boxes, and brittle parts instead of sturdy long lasting parts.
? Sales increased and there was some degree of optimism.
? Sought to capitalise on popular crazes such as James Bond and The Man from Uncle by introducing action figures for Christmas.
? Due to internal strife and staff cutbacks, the new lines were not delivered to the stores until after Christmas.
? Operating on a skeleton workforce.
? Due to lack of staff, AC Gilbert are unable to implement changes or introduce new lines quickly enough to capitalise on trends.
? Increased advertising spending to $3 million.
? Introduced point of purchase display products supplied to dealers free of charge.
? Borrowed $6.25 million, granted on the event that the company made a profit in 1996.
? Company made a loss of $12,872,000.00.
? February â€“ AC Gilbert closed its doors after 58 years.
Note: This case study is a true story. You may wish to read more about this organisation or to conduct additional research online.
? Tibballs, G., 1999, Business Blunders, â€˜AC Gilbert: Toy Storyâ€™, Robinson Publishing Ltd, pp. 43.
Risk Management Plan
What can happen? Source
How can this happen? Impact
From event happening How will you manage, treat or prevent the risk from occurring? Risk Rating
High, medium or low
Communication Method What will be communicated? Target audience Timeframe Dates Costs
# OBJECTIVES ACTIONS/DELIVERABLES MEASURES OF SUCCESS
WHAT DO YOU HOPE TO ACHIEVE BY IMPLEMENTING THE CHANGE INITIATIVE? WHAT ARE THE KEY ACTIONS OR DELIVERABLES REQUIRED TO ACHIEVE THESE OBJECTIVES? HOW WILL YOU MEASURE THE SUCCESS OF THE OBJECTIVE?
# RESPONSIBLE ACCOUNTABLE TIME FRAMES
Who is responsible â€“ person or area The area or person that is ultimately answerable for the correct and thorough completion of the objective, and the one who delegates the work to those responsible. By when will the objectives be met?
Cost Benefit Analysis Example
Custom Graphic Works has been operating for just over a year, and sales are exceeding targets. Currently, two designers are working full-time, and the owner is considering increasing capacity to meet demand. (This would involve leasing more space and hiring two new designers.)
He decides to complete a Cost-Benefit Analysis to explore his choices.
Currently, the owner of the company has more work than he can cope with, and he is outsourcing to other design firms at a cost of $50 an hour. The company outsources an average of 100 hours of work each month.
He estimates that revenue will increase by 50 percent with increased capacity.
Per-person production will increase by 10 percent with more working space.
The analysis horizon is one year: that is, he expects benefits to accrue within the year.
Category Details Cost in First Year
Lease 750 square feet available next door at $18 per square foot $13,500
Leasehold improvements Knock out walls and reconfigure office space $15,000
Hire two more designers Salary, including benefits
Orientation and training $75,000
Two additional workstations Furniture and hardware
Software licenses $6,000
Construction downtime Two weeks at approximately $7,500 revenue per week $15,000
Benefit Benefit Within
50 percent revenue increase $195,000
Paying in-house designers $15 an hour, versus $50 an hour outsourcing (100 hours per month, on average: savings equals $3,500 a month) $42,000
10 percent improved productivity per designer ($7,500 + $3,750 = $11,250 revenue per week with a 10 percent increase = $1,125/week) $58,500
Improved customer service and retention as a result of 100 percent in-house design $10,000
He calculates the payback time as shown below:
$139,750 / $305,500 = 0.46 of a year, or approximately 5.5 months
Student Name CIT Number
Competency Title, Code and Banner Code
CRN Manage innovation and continuous improvement BSBMGT608
Assessment Type ? Written ? Case Study ? Project ? Presentation ? Other
Assessment Name Assessment 2: Innovation Proposal
Assessment Date 16 June 2020
Student Statement: This assessment is my own work. Any ideas and comments made by other people have been acknowledged. I understand that by emailing or submitting this assessment electronically, I agree to this statement.
Student Signature Date
? Student provided with feedback
Attempt 1 ? Satisfactory
? Not Yet Satisfactory
Date / /
Attempt 2 ? Satisfactory
? Not Yet Satisfactory
Date / /
Assessor Name Kelly Aldred Assessor Signature
Note to Assessor: Please record any reasonable adjustment that has occurred for this assessment.
Instructions to Assessor
Work, Health and Safety: A work health and safety check of the assessment environment is to be conducted prior to the assessment and any hazards addressed appropriately.
List the time, materials provided and assessment range and conditions on the next page
These sections should be detailed enough for multiple assessors to consistently implement the assessment and include details of location, time restrictions, level of assistance permitted (if any), WHS, environment protocols, etc. The student should have access to techniques, procedures, information, resources and aids which would normally be available in the workplace. Include if open or closed book.
Materials to be supplied may include: assessment paper, site plan, text, internet access, etc.
Information for Students: You may have two (2) attempts for this assessment.
â€¢ If your first attempt is not successful, your teacher will discuss your results with you and will arrange a second attempt.
â€¢ If your second attempt is not successful, you will be required to re-enrol in this unit.
Only one re-assessment attempt will be granted for each assessment item, with the exception of Apprentices or Trainees who are permitted an additional supplementary assessment.
Time Allowed: Due Tuesday 16 June 2020
Materials Provided: Templates for cost benefit analysis, objective and communication plans
Assessment Range and Conditions: All templates will be provided on eLearn. The assessment can relate to your workplace or be based on a case study approved by your teacher. No more than 3 PowerPoints per question.
Assessment Criteria: To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the key skills/tasks/knowledge detailed in the Assessment Task to industry standard.
Students will demonstrate how to implement a continuous improvement initiative in their workplace by reviewing programs, systems and processes, developing options for continuous improvement and identify how they will implement the innovation.
Total number of assessments tasks: 1
Students are required to identify a continuous improvement initiative and present this information to the â€œBoard of Directorsâ€ in a PowerPoint.
The proposal will be based on an innovative business or innovative idea/concept that you would like to implement or have implemented at your workplace or a case study approved by your teacher. Your proposal must be uploaded to eLearn along with handouts. No more than 3 PowerPoints per question and you must submit an audio / voice recording with your PowerPoint.
Your must address the following questions in your proposal:
Develop continuous improvement in the workplace
To be deemed Satisfactory you must:
1. Provide an overview of your business / innovative concept or idea. Relate your innovative concept or idea to one quality management and one continuous improvement theory. Examples could include: Balanced Scorecard, PDCA, Kaizen, Six Sigma, TQM â€“ Total Quality Management
Refer to PDF on eLearn: The Original Quality Gurus
Theories in Total Quality Management
2. How will this improvement initiative strategy set the business apart from their competition?
How and when do you brief groups / teams on performance improvement and an innovation? In your answer outline one benefit to the business/ staff and one benefit of sustainability i.e. how will the innovative change help to sustain the business and set it apart from competotors.
Provide at least 2 ways groups and teams are briefed on the innovation
Benefits that come from managing innovation: http://innovation-management.org
You also need to consider sustainability of resources and environmental
3. Outline how you will encourage communication, contribution and interaction between teams and groups to encourage learning and a develop a creative environment in the workplace? Identify a minimum of four ways.
Provide examples of communication with stakeholders and co-workers
Enhancing the creative potential of groups, pg. 15: Innovation in Organisations.
4. How does the business encourage, test, recognise and embed new ideas and successful behaviours?
What are the steps that the business must follow to approve the innovation?
What happens if an idea is not successful during trialling?
Provide at least two ways
Outline the steps your business must go through to approve the innovation. Outline an action plan / transition plan to implement the innovation â€“ include timeframes and responsibilities
Outline what happens if the idea is not successful
Create an innovative culture. Building a culture of leadership, pg. 23 Innovation in Organisations.
Use brainstorming, focus groups, quality circles, Experimentation
Reward innovative ideas and suggestions
Innovation process, pg. 22 Innovation in Organisations.
Seven Steps to Creating a Successful Innovation Framework
5. Identify creativity and innovation theories and concepts you could use in the workplace? Outline one creativity and one innovation theories and concepts that relate to your innovation.
Readings and examples include:
Simplex Problem Solving Process
Graham Wallas. Wallasâ€™ model
Disruptive Innovation Theory
6. List and explain five organisational learning principles you could use? Five learning principles outlined
Peter Senge and the learning organization
7. Undertake a risk management analysis based on the new intiative. Identify at least three potential risks and outline how these will be managed. Prepare a handout for your Board of Directors and upload to eLearn.
Identify at least three potential risks and outline how these will be monitored. Include the risk rating i.e. High, medium and low and how you will control and manage these risks
Refer to the template on Elearn.
8. Complete a cost benefit analysis based on the change intiative.
Identify two methods you could use to complete a cost benefit analysis.
Prepare a handout for your Board of Directors and upload to eLearn.
Refer to the template on ELearn.
Include the costs associated with implementing the innovation.
Research and outline two ways that cost benefit analysis can be conducted
9. Explain the impact that the change had or will have on staff when its implemented Outline two impacts that the change / innovation will have on staff
Kotterâ€™s Change Management Model
The Classic Change Curve: https://www.towerswatson.com/en/Insights/Newsletters/Global/Sustainably-Engaged/2015/how-does-change-affect-employee-engagement
10. Develop an objective plan (with goals, timeframes and measurements) and a communication plan to outline how the implementation will be communicated to staff. Prepare a handout for your Board of Directors and upload to eLearn. Refer to the template on ELearn.
Three goals identified in your objective plan. Goals must be SMART.
Communication plan â€“ outlines how you will communicate (method), what is going to be communicated, target audience, timeframes, dates and costs and who will communicate. At least 3 communications outlined with staff
11. What would be your contingency plan for the change initiative? Develop a contingency plan that covers the key areas of risk you identified for the implementation. (Minimum of 2) Your plan should include the scenario, date, together with the action that could be undertaken.
Upload to eLearn or include in your proposal
12. How and why would you follow up failure? What could cause the initiative to fail? How will you follow up failure? One way identified.
Identify one thing that could cause failure.
Why 70% of Changes Fail
13. How are learnings from the implementation process captured and reported Identify two ways that learnings are captured and reported
14. Identify how you will evaluate the continuous improvement initiative and processes. At least one way identified
Reference List At least six references, using Harvard Format
The post CRN Manage innovation and continuous improvement BSBMGT608 appeared first on Versed Writers.