Making Effective Operations

Plan

Business Development Plan

Operation Plan in BP

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studying it. has been for nothing if you can’t sell it. subcontract out the manufacturing part. Innovative Product Technologies. you need a business plan. Inc . or sell your rights in return for a percentage of the proceeds. Operation Plan in BP 2 . Inventing For Dummies CEO. PhD. Whether you start you own business to produce and sell your invention.Why do we need Business Plan “All the work you do in thinking up your idea. testing it. and producing it.” .Pamela Riddle Bird.

Why do we need Operations plan • To Decide Product or services designs • To Decide the transformation process • To Decide quality standards and quality policy • To Decide Capacity needed • To Make location Decisions • To Decide layout decisions • To Decide Human resources and job designs • To Decide Inventory managements Practices • To Decide Aggregate Plans about Operations • To Decide Maintenance Plans Operation Plan in BP 3 .

Decisions 4 ./Acct.Strategy Planning Process Company Mission Business Strategy Functional Area Area Functional Strategies Marketing Decisions Operations Decisions Operation Plan in BP Fin.

Business Plan Overview • Title Page • Table of Contents • Executive Summary • • • • • Synopsis Narrative • Mission Statement and Goals • Company Overview Products and/or Services Plan Marketing Plan Operating Plan Financial Plan Appendix of Supporting Documents Operation Plan in BP 5 .

Specialized Plans within the Business Plan • Products and/or Services Plan  Describes the product and/or service to be provided and explains its merits • Marketing Plan  Describes the user benefits of the product or service and the type of market that exists • Management Plan  Describes the new firm’s organizational structure and the backgrounds of its key players Operation Plan in BP 6 .

raw materials.Specialized Plans within the Business Plan • Operating Plan  Offers information on how the product will be produced or a service provided. and processing requirements • Financial Plan  Provides an account of the new firm’s financial needs and sources of financing and a projection of its revenues. including descriptions of the new firm’s facilities. and profits • Pro forma statements—Reports that project a firm’s financial condition 5-7 Operation Plan in BP 7 . labour. costs.

Operational Plan in BP Products • Explain what is your product/s or service/s – Physical attributes • Explain about pack Sizes/servicing sizes • Explain features/Composition of services Operation Plan in BP 8 .

• Explain the reasons for selection as above in line with corporate strategy. • Explain how will the company acquire technology. Operation Plan in BP 9 . semi-automatic or fully automatic.Operational Plan in BP Transformation Process • Explain how will value added by the organization. • Use Process Charts • Explain the process as batch processing or continuous processing • Explain the process as manual. • Explain the key equipment's needed for the process.

21000 etc Operation Plan in BP 10 .Operational Plan in BP Quality Policy • The firm’s view on quality • Dimensions of quality for your product • Who are responsible for quality? • How is the quality measured? • Will you use statistical process controls? • Quality certification as ISO 9000. 14000.

• Decide your capacity building plan • Explain the proposed design Capacity. medium term and long term. effective capacity and efficiency • Carry out Break even analysis • Form a plan for under and over capacity situations.Operational Plan in BP Capacity • Estimate your forecasted sales – short term. Operation Plan in BP 11 .

Efficiency of operation .Ambience etc.Higher utilization of space . Operation Plan in BP 12 .Improved customer interaction .Improved flow of Information .Operational Plan in BP Location and Layout Plans • Cost Focus or Revenue Focus • Identify country. region and Site for the business • Identify the Layout strategy considering .

Packing Materials.Operational Plan in BP Inventory Management Plan • Plan the Raw Materials. Utilities. • Explain specifications of the materials • Identify storage requirements of the materials • Identify the suppliers and lead times • Decide the Inventory policy and reorder points Operation Plan in BP 13 . required.

Operation Plan in BP 14 . • Plan the job designs and responsibilities in transformation process • Prepare the policy to retain critical human resources required for operations.Operational Plan in BP Human Resource Plans • Decide how many people are required? • Identify the knowledge and capability requirements for the operations.

• Evaluate Inventory policies and lead time policies to adjust aggregate plans. • Evaluate the overtime possibilities. Operation Plan in BP 15 .Operational Plan in BP Aggregate Plans • Prepare aggregate plans as per the forecasting. cost as well as qualities to meet demand. • Evaluate the options of sub-contracts.

Operation Plan in BP 16 . • Plan the unscheduled breakdowns handlings. plan the training schedules.Operational Plan in BP Maintenance Plans • Identify the preventative maintenance schedule • Explain parts requirements for the maintenance • List the equipment's and tools needed for maintenance • Identify if any trainings are required to maintain the machines – if yes. • Plan the proper records of the maintenance and maintenance personnel.

• Identify the limitations of the resources.Factors for considerations • Do not plan monopoly – competition is bound to happen. • Identify critical success factor of your business • Ensure that the functional strategies are in line with corporate strategy. technologies.e. aspects of operational plans). capacities etc. Operation Plan in BP 17 . (i.

machine specifications. • Analyze the risk associated with the business. • Use simple language avoiding technical jargons • Do not overwrite • Use annexes for the charts. drawings. raw material specifications etc. blue prints.Factors for considerations • Ensure your plan is fact based and supported by data. Operation Plan in BP 18 .