Managing Business Activities - Assignment Example

Managing Business Activities to Achieve Results Your name: Institution name: Task one Evaluate the interrelationship between the different processes and functions of the organisation A ‘function’ is an area where the organization wants to pay more attention to in order to support its organizational goals or visions. Therefore, a business function can be positioned as a grouping of internal behavior on a certain criteria (Mullins, 2007), such as communication, location, required skills, shared knowledge and skills, and so forth. In an organization, a business function will represent a part of the added value of that organization. Similarly, a business process is a collection of causal related units of internal behavior or a unit of internal behavior, with the goal or aim of producing a predefined collection of goods/products and services. In an organization, a business process is constructed from activities or sub processes. A business process can be started or triggered by other business processes or one or more business activities or events. A single business process cannot belong to a single business function. A business function will consist of multiple process and activities and a process will only be realized by multiple business functions. A business process as well as business functions will describe the inner way of working of an organization or area (Mullins, 2007). An organization that focus on business function will identify the business process gaps that need to tackled in order to achieve the organizational mission and vision. Appropriate resources will then be dedicated to improve the process performance in each of the designated key areas. In this sense business function drives process excellence. On the other hand, a superior business process performance can create new market opportunities. A good example is DIAMOND Paint , which is well known for its excellent in distribution and marketing process. While this business process has been defined for traditional DIAMOND Paint s products, it has been used to distribute non-traditional DIAMOND Paint fare such as electronics and groceries. This has enable DIAMOND Paint to diversify and increase the paint’s firm revenue stream. DIAMOND Paint has often used its business processes for competitive advantage in this fashion. In this case, process excellence drives strategic direction. DIAMOND Paint can be able to achieve international standards like Woolworths and Tesco, if they are able to implement the recommended process of ERP and SAP in their operations. Also DIAMOND Paint can be able to reach the standards of Woolworths if they are able to implement the same processes of Woolworths and their organizational culture wherein they involve their employees for suggestion in the future roads ahead and business goals which has made the paint’s firm to do wonders in the retail sector by expanding into other markets across the globe. Justify the methodology to be used to map processes to the organization’s goals and objectives. The process mapping is a visual aid that can be used to help people understand the work process of DIAMOND Paint . Thus process mapping is a method that converts business workflow or process into visual, step-by-step diagram. The success of a business will depend on the ability to communicate key activities and core functions of the business as well as how activities and processes interrelate and the directional flow of the process. DIAMOND Paint core processes aims to achieve the key activities that help the company to fulfil its business objectives. The processes that are mapped to the company’s objectives and goals are Research and Development department because this has enabled DIAMOND Paint to achieve its objectives and goals through introducing a new concept and/or product each year. This is the first objective and goal of the paint’s firm. The other processes that have been mapped to DIAMOND Paint ’s objective and goal is the CRM department. CRM is ne department that have improved in DIAMOND Paint Company. The department has been able to install software like ERP, SAP, e-mobile system which has enabled the company to achieve its activity of creating a direct link to the clients and improve client satisfaction (Miller et al, 2004). As a result of CRM department, DIAMOND Paint has been able to overcome the issue of not having enough information to manage its customers. The last process that has been mapped to DIAMOND Paint ’s objective and goal is the Sales department. This is evidence by the increased in sales is per the second quarter of FY13 the standalone results of DIAMOND Paint where the company sales increased by 25.5 per cent. Evaluate the output of the process and the quality gateways DIAMOND Paint has tried to achieve all the factors of its mission and vision statement since it was established. DIAMOND Paint has maintained high quality products and services. In recent years, the paint’s firm has been able to introduce new product into the retail sector (Mullins, 2007). All the objectives that have been introduced by the paint’s firm has been able to fulfill the concept of SMART (Specific, Measurable, Achievable, Results-oriented and Time bound). The outcome of any process should be based on the goals, objectives and critical success factor that is found in the business. Some of the business process measures of DIAMOND Paint are: SAP software has revolutionalised the organization because the company is able to manage its customer information with greater visibility and the company can be able to predict the customer wants. Large quantity of products has enable DIAMOND Paint to captured large number of market segment. The paint’s firm has the highest number of product portfolio in the retail sector of grocery, home appliance, electronics and so forth. TASK TWO Design plans which promote goals and objectives for own area of responsibility. The introduction of CRM has been a huge success for DIAMOND Paint because the paint’s firm first piloted the process of SAP which was received well and then the SAP process was expanded to the global operations which saw a rise revenue and customers. The place of responsibilities for DIAMOND Paint is External and Internal customers, Market Research, product development, time management, Customer orientation, and CRM. DIAMOND Paint have both external and internal customers in their paint’s firm e.g. of internal customers to DIAMOND Paint are workers, stakeholders, suppliers etc. Whereas external customers for DIAMOND Paint are those individuals or firms that help the paint’s firm to meet its goals and objectives and who work for the paint’s firm externally (Ansoff, 2008). For example, government, customers, market agencies, and so forth. DIAMOND Paint has been seen to follow a market led or driven business. DIAMOND Paint uses its resources in order to satisfy its customers (Mullins, 2007). Whereas the other area of responsibility of DIAMOND Paint is product development, where the paint’s firm has been able to identifying newer opportunities and the risks that are associated with these opportunities. Out of the two main forms of strategic analysis i.e. Ansoff’s matrix and SWOT Analysis; DIAMOND Paint uses Ansoff’s matrix as their model to review their product development. Product Development Product development at DIAMOND Paint has been used to draw new clients and maintain existing ones. DIAMOND Paint has developed variety of paints such as wall paints in which the company has developed emulsion paints which are eco-friendly called Acrylic and Tractor emulsion. DIAMOND Paint royal is also another strategy which has helped the company to gain potential new clients. Planning in DIAMOND Paint is important for the company because it has enables the company to achieve its goals. Planning has helped DIAMOND Paint to define its activities and purposes. It has enabled them to set paint standards so that the final results can be compared and help company’s managers to see how the paint company is progressing towards its objective (Miller et al, 2004). DIAMOND Paint knows that planning is one of their important tools which is the beginning of the management process. Write objectives, which are specific, measurable, achievable, realistic and time-based to align people and other resources in an effective and efficient way. The term SMART is the acrimony of the following: Specific; Measurable; Achievable; Realistic; and Time based. Thu is DIAMOND Paint have incorporated the term SMART as their objectives to improve the process of CRM. Doran’s theory of SMART objectives is being used in DIAMOND Paint to evaluate the organization’s CRM and is as follows:- CRM is an important process because it adds value for DIAMOND Paint and it helps to improve business operation in an effective way. As mentioned before, DIAMOND Paint have realized that the company’s long term growth has depended largely on its ability to forge closer ties to its customers. A decreasing closer link to its consumers was the main reason for expressing a need for more working solution to their home painting needs. DIAMOND Paint has moved from product based manufacturing to service based manufacturing and they have already started the CRM process with the help of DIAMOND Paint Home solutions. Implement appropriate systems to achieve objectives in the most efficient way, on time, to budget and meeting organisational standards of quality The implementation of SAP Net Weaver platform in the initial stages went through obstacles but with the help of SAP software, DIAMOND Paint was able to meet all the criteria in the company as well as amalgamation with SAP Net Weaver business intelligence would help them extract more confidential information and report which helped the company create a more direct link to the clients. In addition, DIAMOND Paint has also set up a SAP business process with company’s client interaction centre that process calls from customers and then pass the same information to customer care department (Miller et al, 2004). Thereafter the customer information is then passed to the sale associates teams contact the customer and the information is passed to the Relationship associates who directly goes to the client residence for site/home survey and forward the information to the company for selecting the paint (Mullins, 2007). The same customer information goes to the sales and marketing department for ordering the paints through the dealer who sources the paints for DIAMOND Paint. Lastly, the customer information goes back to Relationship department conduct the painting process at the client premise with the warranty. AC 2.4 Carry out of work activities that meet the operational plan through effective monitoring and control DIAMOND Paint has put in place a review committee at every key stages of its operation, which ensures that all major technical and business subjects are addressed as they occur. DIAMOND Paint appoints employees from different department on their basis of performance and merits and then give targets and work to each employee specification (Miller et al, 2004). For example, there were fifteen employees that have been appointed in this program and delegated rules and work of the program and were given work to achieve the targets of the SAP program and the employees were able to achieve the objectives that were put in place effectively on the way of improving the Customer Relationship Management (CRM) SAP process. DIAMOND Paint has a strong employee training facilities that ensure the company’s objective of improving customer relationship management is achieved with ease. Time-to-time, DIAMOND Paint has been organizing extensive training program for its employees and this program consist of classroom sessions that includes training in basic office applications and computer skills, as well as support activities such as front line support to staff of handing business queries and question that have been directed by the customer (Ansoff, 2008). Task3 AC3.1 design systems to manage and monitor quality standards specified by the company/organisation In any organization, “Quality” is an important factor in determining the organization positions to remain competitive over their rivals. High quality products may lead to customer satisfaction and goodwill and this may create repeat sales, loyal clients and customers, and so forth. The system that will be used to manage and monitor product quality standard specified by the organization at DIAMOND Paint is given by the quality policy by the top management and they are listed as follow:- Figure: The five key steps to develop a quality control system For Conformance Quality, DIAMOND Paint believes that the specification of the manufactured products doesn’t have any defects in the finish products. The organization should make sure that the manufactured products are of high standards because of the checks that have been put in place at every stage during production of paints Quality Assurance is setting and agreeing to product standards throughout the company and the company making sure that its products comply with quality standards so that their clients are satisfied with the company products (Mullins, 2007). The Quality Assurance department part of its mandate is to check Supplier quality assurance, wherein the organisation supplier guarantees the quality of raw materials that are being used during manufacturing and allows the customer access while the products are being produced/manufactured (Miller et al, 2004). The benefit of using this type of Quality Assurance method is to do away with inward inspection and save large amount of time and cost in flow production. Figure: Quality Assurance factors in Asian Paints Quality Control deals with maintaining product quality standards in the organization. DIAMOND paint is using this system to detect and remove products that are below the set standards. The department that is in charge with quality control carries out a range of tests and inspections before the finished product is released to the customers. In DIAMOND paint, there are three stages that are involved in this process and include: Prevention/elimination, Inspection, Correction and Improvement. Total Quality Management can be defined as technique that considers all employees in the company as being accountable for product quality. DIAMOND Paint trains its workers on ways of meeting the stakeholders or/and customer expectations and needs effectively and efficiently, without compromising their ethical values (Miller et al, 2004). At DIAMOND Paint Total Quality Management (TQM) approach fits in well with Herzberg principles of Job enrichment that states that each worker tries to give their best services to internal customers- colleagues, or superiors- and external customers. For example, if the pigment process is not removed properly then the material will not be allowed to go to a mixing process if it does not meet the minimum benchmark level. AC3.2 demonstrate a quality culture to ensure continuous monitoring, evaluation and development of the process For DIAMOND Paint quality management is not just a process but it is a continuous assessment of their process. It is hard to achieve Total Quality Management (TQM) if the organization culture do not operate in whole unity then the whole quality system which is being imposed will be in trouble, therefore at DIAMOND Paint their priority changing culture brings quality to ensure there is a continuous development and monitoring of the quality process. In the dispersion stage, DIAMOND Plant monitor their manufacturing product on the basis of desired particles. To make sure the size of the pigments is or right quality, the Quality Assurance department checks the process at the supplier’s base and then passes the quality confirmation slip to the manufacturing processing department to go ahead with the manufacturing process. The last stage of manufacturing process is packaging stage. DIAMOND Plant has been able to monitor this process by getting the finished product in different hoppers for some cooling to get the right thickness and texture of the paints. Thereafter, the paint products is packed in different sizes to assure they are packed and sealed well they are passed through container detector machine, also to assure the right weight of paint’s container is filled according to the required amount. AC3.3 recommend improvements which align with the organisation’s objectives and goals and which result in improvements. As recommendation, DIAMOND Paint should adopt a Six Sigma theory because this technique is used to improve the output quality of a manufacturing process. It instigate towards reaching the objective and goals, process improvement, performance measuring. Six Sigma theory integrate all the organization processes and makes work towards the zero product defects possible. If DIAMOND Paint’s management is able to implement this tool for quality improvement, the organization will be able to align itself towards its goals and objectives (Miller et al, 2004). The aim of Six Sigma is to improve the organization’s business processes and remove products defects so that the company is more efficient and productive enough to meet its customer needs and requirements (David and Fischer, 1983). There are different layers of Six sigma belts: Green belt, Black belt,Yellow belt, champion belt and the Master Black belt so that the increase in the belt parts lead to more competitive an organization. AC3.4 report on the wider implications of proposed changes within the organisation. The Six Sigma tool of quality improvement will help DIAMOND Paint to reduce the manufacturing defects, improve the productivity and efficiency of all operation in the organizations and meet the expectation and needs for customers, improve business profitability, and so forth (David and Fischer, 1983). While the basic function of Six Sigma is to improve business products and services, and improve customer retention. The advantage which DIAMOND Paint will have when adopting Six Sigma tool are as follow as given in the figure below. Figure 4.3 Benefits of using Six Sigma While the negative effect DIAMOND Paint will face are listed as in the figure below: TASK 4 AC4.1 carry out risk assessments as required by legislation, regulation and organisational requirements ensuring appropriate action is taken. Safety and Health legislations can be defined as an organized procedure and efforts that are used to identify workplace hazards or danger and reducing exposure to harmful substance or situations and accidents (Miller et al, 2004). These legislations also include training of employees in accident response, accident prevention, emergency preparedness and the use of protective equipment and clothing. While a risk assessment is an important action that is used to shield employees for DIAMOND Paints and its related business, also, it act in accordance with the regulations and laws that have been set by the government. It makes sure the organization remain focal point which is a subject in workplace. In some cases, simple measures can manage risks, for example, promptly cleaned floors prevent workers from falling on the floor and so forth. Also, a well managed safety standard in an organization that has been layed by the management like fire safety drill every 3 months. All this things brings worth to DIAMOND Paints. DIAMOND Paints safety and health department has developed a 5 step plan in order to carry it own risk assessment so that appropriate actions may be taken. DIAMOND Paint uses relevant sign boards such as fire, exist, emergency exits smoking etc. These signs have been placed in strategic locations so that it can make it easier for workers to know which safety device is located. In addition, employees are usually handed out safety and health document while joining the organisation and are trained to the safety and health regulations of the organisations. AC 4.2 demonstrate that health and safety regulations and legislation applicable in specific work situations are correctly and effectively applied Various business laws and regulations expect every company to practice safety measures for its employees as well as the community or society at large. The table below gives laws and regulations which are related to the paint industry. Table 1 AC 4.3 carry out a systematic review of organisational health and safety policies and procedures in order to ensure they are effective and compliant The safety plan for DIAMOND Paint is indicated in the table below: Table 2 AC4.4 carry out practical application of health and safety policies and procedures in the workplace In table two, for example, the health and safety law of slip trip and fall, the practical application could be achieved through hiring the services a housekeeping company that will deal with wiping paint spills. Therefore, this will keep the company floors clean which will help reduce the number of accidents that may happen at the factory. For Work equipment and machinery, the company should contact its vendor who is providing the monthly reports of the maintenance of their manufacturing equipments or they should plan on how they buy new equipments to replace the obsolete equipments. Lastly, for Fire and explosion act of health and safety can be achieved by having quarterly fire mock drill which make the workers use fire extinguishers and other fire preventing equipments. This will enable the company to know which fire and safety equipment are working and which are not working. Bibliography Mullins, L.J., 2007. Management and organizational behaviour.8th Ed. Pearson education ltd. Miller, A., et al (2004) Strategic management (2nd edition) New York: USA Ansoff’s matrix (2008) Papers4you.com [online] (updated 12th march 2010) Available at http://www.coursework4you.co.uk David, A., Fischer, (1983) Strategies towards political pressure: A typology of firm responses.” Academy of management review, pp.71-78 Doran, George T. “there’s a SMART way to write management’s goals and objectives.” Management review, Nov 1981, Volume 70 issue 11 Basu, R, 2004. Implementing quality, Cengage learning EMEA Burke (2007) Introduction to Project Management, Partner Pub Group David Bain, the productivity Prescription: the manager’s guide to improve productivity and profits (New York: McGraw- Hill, 1982), pp119-27 Read More