respond to performance data

Performance objective
To demonstrate the skills and knowledge required to analyse performance reports, review performance
indicators and take appropriate action to address systems failures and variances to the business plan.
Assessment description
In this Assessment Task, you will analyse performance data and reports against planned objectives,
implement strategies to refine performance indicators, and address coaching and training needs. You
are also required to develop and recommend processes for the review of systems, procedures and work
methods.
Procedure
1. Review the case study ‘B&A Toy Warehouse’.
2. Critically analyse the information and write a brief report, responding to each question in the case
study.

Specifications
Deliverable specifications
● Submission of analysis report (Answer Question 1- 4)
Quality specifications
Question 1
a. After completing a comparison of current performance against desired performance levels, identify
the corrective actions required to achieve the business plan goal of improving warehouse
productivity by 10%. What type of corrective actions do you recommend for each performance
improvement (e.g. interim, adaptive, corrective, preventative or contingency)?
Question 2
a. Critically analyse the performance against planned objectives.
i. Identify areas of non-performance.
b. Report on systems failures which contributed to these results.
i. Consider failures in communication, planning, reporting and training.
c. Review performance indicators and refine if necessary.
i. Comment on the suitability of performance indicators and what changes might be required to
achieve organisational goals.
Question 3
a. Recommend performance improvement strategies.
b. Identify and redefine performance measures, if necessary.
c. Document a training and development strategy to address the performance of underperforming
individuals or teams.
i. Identify development needs of individuals and groups.
ii. Identify training/coaching needs.
iii. Present in a development plan.
Question 4
a. Develop a strategy for reviewing systems processes and work methods at B&A
Toy Warehouse.
b. Describe how the implementation of your strategy would lead to
continuous improvement.

Case study – B&A Toy Warehouse
You have been provided with the following information pertaining to the operation of B&A Toy Warehouse.
Review and analyse the information provided, and answer each of the five questions in this case study.
Evaluating performance measures
After identifying the performance measures, Tony evaluated performance by comparing current
performance against the desired level of performance. This allowed him to determine areas for
improvement to assist the warehouse in achieving its
productivity goal.
Area Current performance Performance target to achieve
10% productivity improvement
Time
Average order processing
time
80 minutes 72 minutes
Cost
Average cost to process
an order
$200.00 $180.00
Quality
Error rate
10% Less than 1%
Production
Average number of orders
processed per day
50 55
Question 1
After completing a comparison of current performance against desired performance levels, identify the
corrective actions required to achieve the business plan goal of improving warehouse productivity by
10%. What type of corrective actions do you recommend for each performance improvement (e.g. interim,
adaptive, corrective, preventative or contingency)?

Area Required corrective action
Time
Average order processing
time
Cost
Average cost to process
an order
Quality
Error rate
Production
Average number of orders
processed per day
Analyse systems and processes
After implementing his strategy to monitor and evaluate performance, Tony has identified the areas that
require corrective action. Tony knows that in order to do this, he must first complete a more detailed
analysis of the warehouse systems and processes, and identify the specific steps required to improve
productivity.
Systems
Two years ago, the warehouse implemented a custom-built electronic warehouse management system
(WMS) which has had an enormous impact on productivity. When completing his review, Tony asks the
following questions to ensure that the system effectively supports warehouse operations:
● Has the warehouse achieved the productivity goals that were to be delivered by
this system?
● What is the occurrence rate of the system being out of order and impacting on the packing of
orders?
● How long does it take to train new staff members to use the system?
● How do the employees who use the system rate its ability in assisting them to process customer
orders efficiently?
Tony also uses the system to generate a series of reports that allow him to analyse warehouse systems
and processes. The reports details:
● number of orders packed per hour, per day
● time required to pack each order

● number of packers per order

● number of boxes per order

Tony also documents the process (from order receipt to dispatch) to assist with his analysis, and to help
him to understand the exact process followed in packing an order.

Tony also completes the following SWOT analysis to assist with his review.
Warehouse order processing systems and process
Strengths
● Warehouse Management System
automates administrative
components of the process.
● Simple process for packing and
distributing customer orders.
● Good orientation and induction
programs for new staff, to ensure
they get up to speed quickly.
Weaknesses
● Absenteeism.
● Warehouse layout – stock difficult to
access.
● Warehouse supervisors are all junior
and new to management roles; they
require intensive coaching and
support from Warehouse Manager.
Opportunities
● Warehouse extension to facilitate
better layout.
● Preferred supplier arrangement to
be established with temporary
workforce supplier, to ensure
provision of temporary labour.
Threats
● Forklift licence requirements mean
that not all staff can drive a forklift.
● The above requirements also require
staff to have time away from packing
floor to attend training.
● Industrial action from Union members
due to lack of licensed forklift drivers.
Performance measures and assessment tools and techniques
At the commencement of the performance year, Tony tasked his management team to complete
balanced scorecards for all warehouse team members, and record the key result areas (KRAs) and key
performance indicators (KPIs) for each role. This was done to ensure that all warehouse employees
understood the performance measures for their role.
The scorecards were last accessed two months ago to complete annual
performance reviews.
Tony contacted the Human Resource Manager to obtain a report detailing the KRA’s, KPI’s and
performance ratings for all warehouse employees. He wants to evaluate the performance review process
and the effectiveness of these measures in assisting the warehouse to achieve its operational plan goals.
Upon reviewing the report provided by Human Resources, Tony discovered:
● Only 80% of employees have documented KRA’s and KPI’s – 20% of employees do not know what
performance level is expected of them.
● KPI’s are not aligned with warehouse goals – employees are not clear on what the warehouse is
trying to achieve.

● Majority of KPI’s are not written using SMART format – they are not providing employees with clear
expectations on what needs to be achieved and by when.
● Performance ratings indicate that 50% of employees exceeded performance expectations for the
last performance year, which is inconsistent with warehouse end-of-year results (the warehouse did
not achieve its operational plan goals last performance year).
Performance reports
As Warehouse Manager, Tony is tasked with the following human resource KRA’s:
Warehouse
Human Resources Scorecard
Key Result Area Metric
Absenteeism 3%
Turnover 8%
Long service leave liability $2.0 million
Annual leave liability $1.5 million
Employee engagement 85%
Employee attended training sessions 45
Warehouse Human Resources Monthly Performance Report
Report name Human Resources Monthly Report
Department Warehouse
Period 201X Year to Date
Key Result Area Target Actual
Absenteeism 3% 3.9%
Turnover 8% 9.2%
Long service leave liability $2.0 million $1.8 million
Annual leave liability $1.5 million $1.2 million
Employee engagement 85% 83%

Employee attended training
sessions
45 32
Identifying trends
To assist Tony in understanding the warehouse operations, and to identify where he can make
improvements to achieve performance objectives and measures, Tony graphs the number of orders
processed and absenteeism for each month over the last year.

Question 2
a. Critically analyse the performance against planned objectives.
i. Identify areas of non-performance

b. Report on systems failures which contributed to these results.
i. Consider failures in communication, planning, reporting and training.
c. Review performance indicators and refine if necessary.
i. Comment on the suitability of performance indicators and what changes might be required to
achieve organisational goals.
Question 3
a. Recommend performance improvement strategies.
b. Identify and redefine performance measures, if necessary.
c. Document a training and development strategy to address the performance of underperforming
individuals or teams.
i. Identify development needs of individuals and groups.
ii. Identify training/coaching needs.
iii. Present in a development plan.
Question 4
a. Develop a strategy for reviewing systems processes and work methods at B&A Toy Warehouse.
b. Describe how the implementation of your strategy would lead to continuous improvement.