Unit assessment: candidate’s assessment recordBA2A 35 ? structure and functionClassCandidate NameEvidence RequirementsUSGroupCandidate IDOutcome 3Record of PerformanceCommentsUSCommentsAssessment task 13.13.23.3(Enter S or U in the box to indicate whether performance in the relevant aspect of the assessment is satisfactory or unsatisfactory. The comment column can be used to highlight any re-assessment that may be needed.)Overall comments:Assessor’s signature:Date:Assessment 3
Outcome covered 3 Assessment instructions
You are required to read the information presented in the case study, which has been issued to you 2–3 weeks prior to the assessment event when the questions based on the case study will be given to you to respond to. During this period you may complete research and investigation into the case study and prepare notes for use at the assessment event.
Following the case study of YTE from Outcome 1
Increased demand had outpaced YTE’s ability to produce and deliver a product. Customers had to wait longer because productivity was diminishing and customer satisfaction was fading fast. The YTE plant is located near downtown Qingdao so it is impossible to expand its production size and acquire more facilities due to land
development saturation. In addition, YTE outsourced its logistics and distribution to a local small-size third party logistics company. However, the logistics company put YTE aside when there was insufficient transportation and distribution capabilities during peak time period.
YTE planned to set up a new plant in the western coast economic development zone of Qingdao due to the availability of greater government incentives and sufficient economic resources such as land and cheap skilled labour force. In addition, the senior management of YTE proposed to establish a Logistics Park including in-house warehousing and an international transportation business in the economic
development zone area due to well-constructed infrastructure. The long-term plan of YTE is to diversify its business including manufacture and the related industry logistics business serving external customers within the industry. The Headquarters of YTE will still be located in the building in downtown Qingdao.
At the end of 2012 a huge new manufacturing facility plant was started in the western economic development zone, as well as in-house warehouse of YTE. The start-up provided the opportunity to create a high performance work organisation within YTE in order to improve customer satisfaction levels and increase operational efficiency and effectiveness. The new plant is designed to have practically no management structure. Line managers will not exist, and all personnel will be empowered to make decisions. Staff from the Research Centre, Production Department and Sales Team will come together in teams each day to discuss and solve related product quality and production issues. The team will consult assembly workers about the process of the operation to make production adjustments based on suggestions from front-line staff and customer feedback. Meanwhile more training regarding knowledge and approaches will be provided for employees in the process of an empowered workplace. With Automated Storage and Retrieval System (AS/RS) application the logistics warehouse can speed up goods flow within YTE to
respond to customers’ orders in a timely manner. In addition YTE will set up a close partnership directly with a local shipping company and port bureau so as to avoid any delays in delivery.
Assessment 3
Answer the following questions based on the second Yong Tong Electronics (YTE) case study. 、
3.1 Describe the change process within YTE in detail, and explain four factors affecting change within the organisation from: ? global competition ? customer focus ? technology
? shareholder pressure ? ethical considerations ? social responsibility
? environmental considerations ? regulatory requirements ? collaborative arrangements ? speed and flexibility changes ? quality and reliability issues ? diversification? restructuring
Due to the increase in demand over the YTE production and delivery capabilities, and logistics company is responsible for YTE logistics responsible, which lead to YET logistics unstable, resulting YTE cannot delivered on time in the logistics’ busy time. So they decided to establish Logistics Park in economic development zone in the western, logistics park staff from various departments who is allocated by YTE, in order to have higher efficiency, line managers would not exist, and all staff have the power to make decisions, and every day the talk together to discuss how to improve product quality, and share experience. At the same time, YTE provide the training to let the staff know how to use modern logistics system.
Customer focus: Because customers buy YTE product have to takes a long time to wait, it leads to customer reduced their demand from YTE, which make YTE reduce product sales, at last, the company's cash flow shortage and making it decide to change its organization and do their own logistics.
Environmental considerations: Because the logistics company put YTE aside when there was insufficient transportation and distribution capabilities during peak time period, which lead YTE customer have to wait a long time for their products. At the same time due to the availability of greater government incentives and sufficient economic resources such as land and cheap skilled
labor force, make YTE establish its own logistics park more easily.
Speed and flexibility changes: Unlike YTE previous organizational structure, the logistics park of YTE did not have line manager, all the decided are belong to all the staff, it help the logistics with a rapid response capability, and its human resource are more flexibility, which will let its logistics more efficiency.
Diversification; YTE is a manufacture enterprise of electronic products, because of its new business, which lead to YTE need to change its own human resources, transferred part of the staff from various departments, consist the logistics sector.
3.2 Describe four tools and models for change management from the following: SWOT analysis? force field analysis? stakeholder analysis? Burke-Litwin’s Change Model? Lewin’s Change Management Model? Congruence Model? The Change Curve
SWOT analysis:
SWOT（Strengths Weakness Opportunity Threats）analysis, to ensure the company own
strength, weakness, opportunity and threat. Combine the company’s strategy, internal resource and external environment.
Strengths:
1.There are many loyal customers in Europe.2.Have advance technology and provide
peripheral products and service. Opportunity:
Government incentives and adequate financial resources, such as cheap labor.
Weakness:
1.The enterprise is located in the city center,
so that the enterprise cannot Large-scale production.
2.Lack it own logistics system.
Threats
1.Customer loss the demand from the
company because they have to wait long for their product.
2.The competitor from the south of China.
Force field analysis: Force Field Analysis is a diagnostic technique, which has been applied to
ways of looking at the variables involved in determining whether organizational change will occur. It is base on the concept of “forces”, a term which refers to the perceptions of people in the
organization about a particular factor and its influence. From YTE’s force field analysis we can found the reason of the organization change which due to it driving is more than restraining.
Driving Restraining The competition from south of ChinaLack it own logisticsThere are many loyal customers in Europe.The enterprise is located in the city center, so that the enterprise cannot Large-scale production.Government incentives and adequate financial resourcesHave advance technology and provide peripheral products and service.Stakeholder analysis:
The stakeholder analysis tool gives visual representation of the expected behaviors of key stakeholders and identifies the level of effort that is likely to be required for each, in YTE, the most important stakeholders are government, staff, and senior manager, and customer.
stakeholdersStaff
Senior managerCustomer Government
performance
They need salary , promotions and bonusesCorporate decision-making power and gloryCan get a quality assurance products
Increase tax revenue and provide jobs for social.
Levin’s Change Management Model:
This model has three steps: Thaw - Change – thaw again, in the first stage, due to the logistics
lead goods cannot deliver in the time, it let the customer decrease the demand from the
company, which let the enterprise realize it must have it own logistics. In the second step, the enterprise has a clear development direction that establish a logistics park in the western
economic development zone, through change the manage structure and use new technology let its logistics has a high level, in the last step, they use its structure and technology to make the staff become skill labor, which improve the quality of staff.
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