Consider an organization that has empowered its employees, asking them to improve the quality, productivity, and responsiveness of their processes that involve repetitive work. This work could arise in a manufacturing setting, such as assembling cars or producing chemicals, or in a service setting, such as processing invoices or responding to customer orders and requests. Clearly, the workers would benefit from feedback on the quality (defects, yields) and process times of the work they were doing to suggest where they could make improvements. Identify the role, if any, for sharing financial information with these employees to help them in their efforts to improve quality, productivity, and process times. Be specific about the types of financial information that would be helpful and the specific decisions or actions that could be made better by supplementing physical and operational information with financial information.

Post replies on the posts of other classmates that add something to the

discussion utilizing concepts from the case, course, and ethical principles. You should

not merely compliment classmates or post your feelings about their post but support

your response with concepts from the assigned material for the course. See attached

pdf. Same topic you did this week.

Statement1:

In 2018 Amazon started having their delivery drivers take photos of packages when

they are delivered. This allowed for customers to have a clear documentation of where

the package was dropped and that it safely arrived at the correct address. This

benefited Amazon because it created a way for Amazon to demonstrate their dedication

to the customer and improve the quality of the deliveries provided by them.

Additionally, this allowed for Amazon to be able to increase their customer happiness.

This empowered employees because they were able to prove that they correctly

delivered packages. This is greatly useful when the customer claims that a package

was never delivered. Additionally, this documentation step helped Amazon save money

for customers that claimed packages never arrived but they actually did. This step also

greatly popularized the dedication that Amazon had for the convenience they were

providing for their customers and an additional feature for their prime shipping. This

likely increases cost to serve by increasing the amount of delivery steps and by default

increasing the time used for delivery. This is a value adding activity and creates very

loyal customers. Customers of Amazon are very satisfied with their delivery experiences

and therefore increase the number of prime subscribers. This could be considered a

preventative cost for Amazon as they are training their employees to document

deliveries.

Some financial information that will motivate employees to be trained would include

preventative costs and external failure costs. With preventative costs being those costs

of having to send an additional package or losing the customer all together. The delivery

driver would be able to actively help prevent these costs. External failure costs would be

the main cost that Amazon is avoiding with this documentation. The photo ensures that

the package is in tack and the customer will not blame Amazon for any defect,

motivating the employee to properly take care of the package. A Cost-Quality Report

would add to this as well since a bigger picture will be provided. This report will just

provide the employee with general motivation to increase quality.

Statement2:

It is important for organizations to review their current productivity and efficiency to see where improvements could potentially take place. Allowing employees to help during this process is essential in empowering employees by making them an integral part of the improvement process. To improve quality, productivity, and responsiveness, a company could implement a Plan-Do-Check-Act Cycle. This cycle will allow employees to start by picking a focus and working to evaluate their current performance and determine ways to improve. After selecting the purpose of quality, productivity and responsiveness, the employees will enter the “do” stage. During this time, valuable information is provided to employees to help them review daily work activities along with analyzing daily decisions. Employees could use a mix of financial and non-financial information to analyze current processes and determine necessary changes. Next, they will be able to monitor and measure performance for both short and long term. Lastly, they can act to work on improving quality and making advances on areas that are a focus. Additionally, the company could send out surveys to assess customer satisfaction regarding work quality. This will allow the company to get the customer’s perspective to see where they could benefit from additional changes.

There are many types of financial information that would be helpful to provide employees with as they try to reevaluate current processes and look for ways to improve overall productivity, responsiveness, and quality. Important financial information that would be beneficial includes the income statement, cash flow statement and the ABC costing analysis sheet. The income statement shows financial performance and focuses on revenue and expenses. This information would be helpful in determining if the current process is working to create desired revenue and if changes should be made. Additionally, looking at the breakdown of costs using ABC costing could be extremely beneficial. This would allow employees to look at overhead costs along with direct labor and machine hours in relation to specific product lines. This will also help to demine if the organization is running efficiently or if changes need to take place.

Another type of financial information that could be useful is cash flow statement. This will help employees as it shows the movement of cash in and out of a company. This can show employees how smoothly operations are currently running and how money is being spent. Additionally, using this information allows employees to know if operations are running in a productive manner and can help review potential areas of improvement. Looking at various types of financial information can help employees to review current areas of focus to determine if any changes are needed. It is crucial for organizations to include employees when evaluating current operations for areas to improve. Providing employees with information gathered from ABC costing, income statement and cash flow statement will show how things are currently running and can help target areas in need to change. This can lead to wonderful conversations while implementing the Plan- Do-Check-Act cycle to see how to make improvements to better the organization.

Statement3:

Employees can benefit from feedback on the quality and process times of the work they

were doing and find areas where they could make improvements by breaking down

financial information given to them and to see their progress on the way. Given financial

reports such as balance sheet and yearly operating statements, employees can see

how their jobs are impacting the bottom line of the company. They can monitor trends

such as net working capital by improving on collections and monitor expenses based on

revenues produced to see if there is an efficiency problem. They can also monitor the

trends of the quality of products based on returned items. Costing information is also

important for employees to understand so they can operate efficiently with the limited

resources they have. The employees can better comprehend the process and quality

by having access to financial reports and can improve on these processes based on

results. Every company has an end goal and most of those goals are financially related

so helping the workers understand the different trends that are occurring with the

financial data can help improve the productivity of those workers.

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