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Continuous Improvement Essay

2278 words - 10 pages

Continuous Improvement Report ‘Murphy’s Cellars’
22nd March 2011

Michael Wallace Peter Crown Geoff Hancock Laura White

March 16, 2011

Dear Nathan, We would like to take his opportunity to thank you for participating in our recent Continuous Improvement Project. Your cooperation and assistance over the past two months has been outstanding and the information you have provided the team invaluable. Your professional attitude towards the project was exceptional and the out of hours work you put in to provide us with the requested information has been much appreciated.

Overall we feel the project was a success and attached is a report identifying areas within your business that are ...view middle of the document...

Number of Staff: Twelve staff in totall. The Licensee/Manager and eleven employees. Average Turnover: $850 000 – $1 200 000 per annum. Major Competitors: No competitors at present. Web Address: Name and Position of Contact: Nathan Stapelton. Licensee and bottle shop manager.

Summary of Information Gathered: As a result of the two interviews conducted and correspondence via email there was a large amount of information collected which was then analysed for the purpose of this report. As mentioned previously the business is experiencing a stock loss problem and the basis of the information collected was to concentrate on this particular problem. First of all the particulars of the business were collected. These details gave an insight into the size of the business, average turnover, competitors and types of customer. From here 3

the business environment was then studied to understand the systems the business have in place and the competency of staff to be able to use these systems. Once the environment of the business was established methods the business used were then collected. The process from when a product was delivered right through until it is sold was firstly understood then investigated to identify any areas that need improvement. The final and most relevant information received was the monthly stock variance reports. Reports for the previous twelve months were collected and then analysed. These reports pinpointed the products that contributed the most towards the losses.

Areas of Continuous Improvement Identified: Although there is only one area of continuous improvement identified within the report of ‘stock loss’, it was evident that there are three main contributing factors that influence the problem. These three areas include:    Method (Defects in a process) People (Dishonest staff) Environment (Lack of or minimal security)

Recommendations for improvement within these areas are covered later in this report.

Cause and Effect Diagram (Ishikawa): Stock Loss


Description and Findings: The first tool of continuous improvement used was the Cause and Effect or Ishikawa Diagram. This tool was the platform of our investigation and established the contributing factors towards the businesses stock loss problem within five separate areas. Once these contributing factors were identified, close consultation with the business was carried out to become familiar with these areas of the business and classify their level of contribution towards the problem of stock loss. Also any areas that caused minimal losses or areas that were beyond the control of the business could be ruled out. Equipment such as the point of sale system used was recognised as only a small contributing factor towards the problem because if the system is used correctly it is a failsafe procedure. Deliveries were another area ruled out due to the fact they are beyond the control the business and it is rare that deliveries are late...

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