Business Operational Plan
As a business plan reviewer and analyst, I find it amazing how many entrepreneurs give this section the least weight or skip it altogether.
The operational plan is an essential component to your business plan and it tells the reviewer how your going to get your product/service out to market. That is, how are you going to get your product out of the production stage to the doorstep of you target customer.
I know, the operational plan may seem mundane but it will outline some very important answers to such fundamental questions such as:
• Who is doing what?
• What are the day to day activities?
• How will the suppliers and vendors be used?
• Who are the suppliers?
• What are the labour requirements?
•
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However, if your business is a retail operation, distribution may not be a problem and you might not have to discuss it.
On the other hand, if you business is an operation that develops or relies on a lot of new technology, you need to explain those aspects thoroughly. You need to explain who will be using that technology and what the implications are.
Basically, you want to explain to your reader how you are going to deliver your product. What are you and/or your employees going to be doing on a daily basis from the time you open up to time you close. This is what your reader wants to know.
Some issues often addressed in an operational plan include:
• Production or manufacturing
• Facilities
• Inventory
• Distribution
• Maintenance and service - Order fulfillment and customer service
Production or Manufacturing
Every manufacturing business has a production process - the way it goes about fabricating a raw or component material and creating an item with greater usefulness or desirability. However, even if your business is a service or retail operation, you have to use a method of “producing” something of value for your customers.
Integral to the overall understanding of a production oriented business is an appreciation of how the company will
2.3 Implement operation plan within own area of responsibility; The operational plan that I have submitted is from my area of responsibility, this has been devised by using the organisational strategy and working out my areas on responsibility. This allows me to have an end goal and then I need to plan how to achieve it. Once this is done I can work out a step by step plan of what needs to be done and by whom. This is all added to the plan along with any other obligations that will arise like staff supervision and appraisals and monitoring. I can then arrange the plan so that it is ordered by
All organizations produce goods or services through the transformation process. Simply stated, every organization has an operations system that creates value by transforming inputs into finished goods and services outputs. For manufacturers, the products are obvious: cars, cell phones, or food products. After all, manufacturing organizations produce physical goods. It’s easy to see the operations management (transformation) process at work in these types of organizations because
Every company will focus on supplying a service, product, or both. How and where the product is made plays a crucial role in the company’s success. In order to help visualize how the products are made process maps are formatted. These process maps can help to identify areas that need improvement. In order to implement improvement, process development will be implemented. The form of good that a company supplies is also important and to ensure that the best product is distributed product development is conducted. Target Corporation is a complex company, which provides consumers with their necessities.
What components should be included in the planning efforts and the final plan? How are operational plans defined, and what do they contain?
Mr. Smith has decided to use one of the oldest marketing concepts, production. The Production Era is said to have taken place primarily during 1870 to 1930, therefore this concept seems to be very dated. (Fullerton, 1988) This concept believes that consumers are more interested in obtaining a product that is readily available at a good price rather than a quality product with quality features. Mr.
An organization’s top management most often conducts strategic planning” (Web Books Publishing, 2010, para. 4-8). Tactical planning is designed to provide specific means which help with the proper implementation of strategic planning. Operational planning is designed to provide specific steps and actions to be taken in order to achieve strategic and tactical planning (Web Books Publishing, 2010).
On the other hand, we continue to invest in production capacity and automation for each product in order to create a sufficient amount of products to meet market demand. We also invest in total quality management and human resource to guaranty our goods can come up in time and with the great quality.
Operations refer to the day to day working of the company. By developing operational strategies, companies implement effective systems that support resources, and determine the steps needed to continue success. Some methods are Customer Driven, Core Competencies, Development of Product and Services, and finally Corporate Strategies. However, I will focus on Operational Strategies within Lenscrafters. The day to day involves the backend and detailed flowed among their different departments. The approach followed by Lenscrafters is to ensure it is followed and effective. It also helps to manage long term issues and their production of their product and services. The purpose it to have a product that is considered tailored to the consumer and
Operation Plan is a highly detailed information used to provide a clear picture of how each member of an organization should perform his/her day-to-day tasks to achieve the organization’s goals. The keys elements of operations for LaMarquise will be is headquarter in Fairfax- Virginia and its farm and production sites located in Charlottesville, VA.
In your own words, describe the purpose of the operational plan and its relationship to the strategic plan.
A business plan is a road map for a team or business and it can be used, as an eternal tool for potential customers and partners. The business plan should describe in details the entire business venture, technology behind it, the size of the target market, customers, competition, business model, team, financial needs and exit strategy. The business plan gives a company insight and allows them to think things through early enough in the process to ensure they have a well defined venture goals and objectives. It also gives the business direction to a clear path for the team to follow and implement on their venture.
Starting a new business is an exciting venture and has its unique mix of challenges and rewards. Many are set-up for failure if no clear goals or measures are established and adhered. According to the Small Business Administration, “Planning is critical to successfully starting and building a business.” The best advice for a new entrepreneur interested in starting a business is to create a solid business plan that outlines the business in its entirety. A well-constructed, written business plan will help owners remain focused on their operations, marketing and financial measures through the duration of the business life. In addition, knowing the risks involved in starting a business can help prevent and minimize mistakes that cause many
The production process is generally not one of the thoughts a consumer pays attention to when purchasing a product because it is the part of a product that is behind the scenes; unknown to the consumer. Obtaining the product to satisfy a need/want is the main concern of the consumer. However, it is crucial for the consumer to know how the product was created and who was involved in the process because after all, if the production process did not exist, the product would not exist, and ultimately neither would the brand.
With assistance from production manager we were able to collect data from the employees. We were given visit across the company and met employees from every sector of the organization. Being a manufacturing industry we were given a lecture on customer dealings, on outlook on field work and inventory processes. So, first we studied the current process of production and identified that which one the production system is needed and in what particular sector. Basically we have I identified the requirement of push and pull production in the facility keeping in view the respective customer that they are dealing with. And ultimately proposed a push pull integration model with comparatively less cost associated with
Over the course of the years, the organization rebuilt its organization system and concentrate, with a specific end goal to be more aggressive. The new method brought about the organization just focusing its operations on manufacturing and distribution of aluminium extrudes. A make-to-order system was presented, with the point of dealing with the client requests well. The system additionally spared the organization huge amount of money. The company’s mission is to achieve a one day turn around for their customer’s orders, i.e. manufacture and ship the product in one day. The company’s mission helped customers to run their business more efficiently, knowing that there is no necessity of keeping a lot of stock in inventory. The mission likewise helped the administration deal with their organization in a superior manner, which prompted and a lot of capacity expense being eliminated.