BSBMGT402 – Implement Operational Plan

Case Study
Case Study 1
It is the beginning of the 2015/2016 financial year. You are the warehouse business
manager for the Caboolture warehouse. Market research has indicated your
warehouse has a great potential for growth this financial year. According to
operational plans, the business plans to lift distribution capacity by 15% overall to
meet projected demand. The target for your warehouse is 20% and in order to
achieve this, all resourcing measures will need to be in place by the end of the first
quarter and show 20% improvement in distribution capacity by the end of the
second quarter.

You will need to plan a meeting with your team and other stakeholders consider
questions you will need to ask in order to gather necessary information
(Information on the company can be further obtained from StorPlus Case Study) to
complete this task. Your budget for HR resourcing is $300,000 per annum and your
budget for new plant and equipment is $250,000.

Case Study 2
It is the beginning of the 2015/2016 financial year. You are the warehouse business
manager for the Caboolture warehouse. Market research has indicated your
warehouse has a great potential for growth this financial year. According to
operational plans, the business plans to lift distribution capacity by 15% overall to
meet projected demand. The target for your warehouse is 20% and in order to
achieve this, all resourcing measures will need to be in place by the end of the first
quarter and show 20% improvement in distribution capacity by the end of the
second quarter.

You will need to plan your meeting carefully and consider questions you will need
to ask in order to gather necessary information (Information on the company can
be further obtained from StorPlus Case Study) to complete this task. Your budget
for HR resourcing is $300,000 per annum and your budget for new plant and
 BSBMGT402 – Implement Operational Plan
equipment is $250,000. Working with one or more classmate/s and your trainer
(who will take the role of a specialist resource manager), discuss the following
areas:
Look at the FY2015/2016 Business Plan for StorPlus
Mission  To provide the highest quality
supermarket service to our valued
wholesale customers.
Vision  To establish, within five years, the
reputation of StorPlus as the premier
supplier of independent
supermarkets in southeast
Queensland
 customer satisfaction and quality
 innovation and continuous
improvement
 teamwork
 high-performance
 health and safety.
Strategic Direction  engaging with customers
 maintaining superior product line
 increasing market share
 increasing profitability through
growth
 growing distribution capacity to
20%
 supporting innovative thinking,
management and leadership skills.
Creating a high-performing organisation.
 BSBMGT402 – Implement Operational Plan

StorPlus 2015/2016 Budget

Income:

Revenue $10,896,432 Sales of all products for the period.

Interest $187,000 Interest earned.

COGS $3,047,850 Cost of goods sold.

Total income $8,035,582 Gross profit.

Expenses:

Wages, salaries $3,567,890 Wages, salaries, superannuation, work cover

insurance, payroll tax.

Consultancy fees $67,000 Development and maintenance of IT systems,

accounting system, ERM system.

Communication expenses $56,000 Telephone, ISP costs, IT support.

Staff travel, transport and $45,500 Cost of staff travel and associated costs for sales, etc.

accommodation.

Premises expenses $350,000 Rent, electricity, maintenance, cleaning.

Capital expenditure $589,000 Purchase of warehouse plant and equipment, vehicles,

etc.

Depreciation and amortisation $277,569 Capital equipment that is depreciated.

Office supplies $78,068 Printing and stationery, postage, amenities.

Professional fees (consultants, legal $22,187 Audit fees, external accounting costs, bank charges,

and audit), insurances, taxes and insurance except workers comp.

 BSBMGT402 – Implement Operational Plan
charges, subs and memberships.

Total expenses $5,053,214

Surplus (not income before tax) $2,982,368

Case Study 3
It is the beginning of the 2015/2016 financial year. You are the warehouse business
manager for the Caboolture warehouse. Market research has indicated your
warehouse has a great potential for growth this financial year. According to
operational plans, the business plans to lift distribution capacity by 15% overall to
meet projected demand. The target for your warehouse is 20% and in order to
achieve this, all resourcing measures will need to be in place by the end of the first
quarter and show 20% improvement in distribution capacity by the end of the
second quarter.

You will need to plan your meeting carefully and consider questions you will need
to ask to gather necessary information (Information on the company can be further
obtained from StorPlus Case Study) to complete this task. Your budget for HR
resourcing is $300,000 per annum and your budget for new plant and equipment is
$250,000.

Working with one or more classmate/s and your trainer (who will take the role of a
specialist resource manager), discuss the provision of creating organizational
development support for employees to achieve the expected operational efficiency
by identifying knowledge/ skill gap of the team.

StorPlus operational Plan Summary FY2012/2013

Objectives Performance Measures Task

Engage with customers
 Percentage of wholesale  Conduct of quarterly
 BSBMGT402 – Implement Operational Plan
 Raise organisational
profits by 20%
 Improve customer
satisfaction by 10%
customers with overall wholesale customer
positive view of surveys.
StorPlus.  Training needs analysis
and training of
 Number of wholesale
customer complaints employees, especially

(delivery times, product sales employees.

quality).  Continue to collect

information from

wholesale customers on

desired/required:

o stock items

o delivery

timelines.

Increase distribution
 Productivity figures for
capacity by 15% overall
individuals/ teams
within the financial year.
o time to pick order
o average time spent
building skills/
o Reduce quality
variation.
 Investigate resourcing
needs for StorPlus:
personnel, plant and
equipment.
 Fulfil resourcing needs

building skills of in accordance with

others policies and procedures.

o time to load/unload
 Development of
vehicles contingency planning
o number of accidents

spoiling goods
 BSBMGT402 – Implement Operational Plan
o average delivery
times from
order to
delivery.
Control direct and indirect
 General ledger  Renegotiate with
costs of operations within
accounts; financial suppliers.
the budget
statements:  Research potential new

o wages suppliers.

o cost of goods sold  Reduce expenses due to

o $ value of wastage.

wasted or  Encourage management

spoiled items. engagement with

employees to achieve

greater employee support

of organisational goals.

 Greater use by managers

of budgets to encourage
restraint in work teams.
Engage workers with goals
 Percentage completion  Management
of business and support
of performance plans engagement with
professional development in
and performance employees to achieve
line with StorPlus goals.
management process. greater buy in of

 Numbers of coaching organisational goals.

sessions completed.  Regular coaching.

 Training needs analysis

 Numbers of operational
– related training and training.

programs completed.  Strategic goals included

 BSBMGT402 – Implement Operational Plan
in induction program.

Employee incentives for

improved performance and
leadership (development of
other employees in line with
strategic goals of
organisation).
Improve health of the
 Numbers of injuries  Training need analysis
employees
(Target = 0) and training on

 Numbers of absentees machinery.

(Target = <3% of total  OHS committee

hours. meetings.

 OHS Risk assessment

conducted regularly.

 Research possible

introduction of OHS

management system and

employee wellness

program.

 Research incentives for:

Safe work achievement;
healthy lifestyle.