An operational plan is a detailed plan that outlines how an organization will

accomplish its strategic objectives. It is a document that describes the specific

actions, tasks, and processes required to achieve the goals outlined in the
organization's strategic plan.

The purpose of an operational plan is to provide guidance to the organization's

employees, managers, and stakeholders on how to carry out day-to-day
activities and achieve the organization's overall objectives. It helps to ensure
that all employees are working towards the same goals and that resources are
allocated effectively.

An operational plan typically includes the following elements:

1. Goals and objectives: These are specific, measurable targets that the
organization wants to achieve.
2. Strategies and tactics: These are the specific actions and tasks that the
organization will take to achieve its goals and objectives.
3. Resources: This includes the people, equipment, and materials needed to
carry out the strategies and tactics outlined in the plan.
4. Timeline: This outlines the timeframe for completing each action or task in
the plan.
5. Budget: This details the financial resources required to implement the
plan.
6. Performance measures: These are the metrics used to assess the
effectiveness of the plan and ensure that the organization is making
progress towards its goals.

Operational plans are typically developed at the departmental or functional

level of an organization, such as marketing, sales, or production. They are usually
updated on an annual or semi-annual basis to ensure that they remain relevant
and aligned with the organization's strategic objectives.

Overall, an operational plan is a critical tool for any organization that wants to
achieve its goals efficiently and effectively. It provides a roadmap for success
and helps to ensure that everyone is working together towards a common
objective.

EXAMPLE OF AN OPERATIONS PLAN FOR A MANUFACTURING BUSINESS:

Production Processes:

The business produces handmade furniture, using locally sourced wood and
high-quality finishes. The production process involves milling, sanding, staining,
and assembly. Each piece is inspected for quality before being packaged and
shipped to customers.

Supply Chain Management:

The business has established relationships with local wood suppliers and finishes
suppliers, ensuring a reliable and sustainable supply of materials. The business
maintains an inventory of raw materials and finished products to meet customer
demand.

Staffing:

The business employs a team of skilled artisans, including woodworkers, finishers,

and assemblers. The organizational structure is flat, with a team leader
overseeing each department.

Quality Control:

The business has a rigorous quality control process, with each piece inspected
for defects and inconsistencies before being shipped to customers. The business
also offers a warranty to ensure customer satisfaction.

Financial Projections:

The business projects manufacturing costs of 500,000 per year, including raw
materials, equipment, and labor. The business also projects inventory costs of
100,000 per year and staffing costs of 300,000 per year.

Overall, the operations plan for a manufacturing business focuses on the

production process, supply chain management, staffing, quality control, and
financial projections. By outlining the specific actions and procedures necessary
to carry out the business's strategy, the operations plan provides a roadmap for
success.

EXAMPLE OF AN OPERATIONS PLAN FOR A SERVICE BUSINESS:

Service Delivery:

The business provides digital marketing services, including search engine

optimization (SEO), social media marketing, and content creation. The service
delivery process involves an initial consultation with clients to understand their
needs, followed by the development of a custom strategy and implementation
of the tactics.
Staffing:

The business employs a team of digital marketing experts, including SEO

specialists, social media marketers, and content creators. The organizational
structure is flat, with each team member responsible for their area of expertise.
Client Communication:

The business maintains ongoing communication with clients throughout the

service delivery process, providing regular updates on progress and results.
Communication is primarily via email, phone, and video conferencing.

Quality Control:

The business has a quality control process that includes regular audits of client
accounts, as well as ongoing professional development for team members. The
business also measures and tracks client satisfaction through surveys and
feedback mechanisms.

Financial Projections:

The business projects annual revenue of 1 million, with service delivery costs of
700,000, staffing costs of 200,000, and marketing and advertising costs of
100,000.

Overall, the operations plan for a service business focuses on the service delivery
process, staffing, client communication, quality control, and financial
projections. By outlining the specific actions and procedures necessary to
deliver high-quality services, the operations plan provides a roadmap for
success.

EXAMPLE OF AN OPERATIONS PLAN FOR A MILK TEA SHOP:

Menu and Inventory Management:

The milk tea shop offers a variety of milk tea flavors, toppings, and add-ons. The
inventory management process involves tracking the usage and availability of
ingredients, such as tea leaves, milk, sugar, and toppings.

Production Processes:

The production process involves brewing tea, preparing the milk tea base,
adding toppings, and serving the drink. Each drink is prepared fresh to order,
with consistent quality and presentation.
Staffing:

The milk tea shop employs a team of baristas, cashiers, and kitchen staff. The
organizational structure is flat, with each team member cross-trained to handle
different tasks.

Customer Service:

The milk tea shop provides friendly and efficient customer service, with a focus
on personalization and customization. The business also offers a loyalty program
to incentivize repeat business.

Quality Control:

The milk tea shop has a quality control process that includes regular taste tests,
visual inspections, and customer feedback. The business also maintains a clean
and organized workspace to ensure food safety and hygiene.

Financial Projections:

The milk tea shop projects annual revenue of 500,000, with production costs of
200,000, staffing costs of 100,000, rent and utilities of 50,000, and marketing and
advertising costs of 50,000.
Overall, the operations plan for a milk tea shop focuses on menu and inventory
management, production processes, staffing, customer service, quality control,
and financial projections. By outlining the specific actions and procedures
necessary to deliver high-quality milk tea and customer service, the operations
plan provides a roadmap for success.

EXAMPLE OF AN OPERATIONS PLAN FOR A SARI-SARI STORE:

Inventory Management:

The sari-sari store offers a variety of basic goods, such as food, beverages,
toiletries, and household items. The inventory management process involves
tracking the usage and availability of products, restocking items on a regular
basis, and monitoring expiration dates.

Sales and Payment Processes:

The sales process involves displaying products in an organized and attractive
manner, pricing items competitively, and providing accurate and efficient
payment options. The payment process may include cash transactions or
mobile payment systems, depending on customer preferences.

Staffing:

The sari-sari store employs a team of salespeople and cashiers. The

organizational structure may be hierarchical, with a store manager overseeing
daily operations and supervising the staff.

Customer Service:

The sari-sari store provides friendly and attentive customer service, with a focus
on building relationships and meeting the needs of customers. The business may
offer additional services, such as delivery or credit, to build customer loyalty.

Store Maintenance:

The sari-sari store maintains a clean and organized workspace, with a focus on
cleanliness and safety. The business may also invest in security measures, such as
surveillance cameras or alarms, to protect the store and its inventory.

Financial Projections:

The sari-sari store projects annual revenue of 100,000, with product costs of
60,000, staffing costs of 20,000, rent and utilities of 10,000, and marketing and
advertising costs of 10,000.

Overall, the operations plan for a sari-sari store focuses on inventory

management, sales and payment processes, staffing, customer service, store
maintenance, and financial projections. By outlining the specific actions and
procedures necessary to deliver high-quality products and customer service, the
operations plan provides a roadmap for success.
MULTIPLE CHOICE: Select the letter of the best answer from the given questions
below.

1. What is an operational plan?

a) A plan that outlines the strategic goals of an organization
b) A plan that describes how to achieve the tactical goals of an organization
c) A plan that outlines the financial goals of an organization
d) A plan that outlines the marketing goals of an organization

2. What is the purpose of an operational plan?

a) To provide guidance to the organization's stakeholders
b) To provide guidance to the organization's customers
c) To provide guidance to the organization's employees and managers
d) To provide guidance to the organization's competitors

3. What are the elements typically included in an operational plan?

a) Goals and objectives, strategies and tactics, budget, performance measures
b) Goals and objectives, marketing and advertising, staffing, financial
projections c) Goals and objectives, supply chain management, customer
service, quality control
d) Goals and objectives, timeline, customer satisfaction, financial performance

4. Who typically develops operational plans?

a) The CEO of the organization
b) The board of directors of the organization
d) The organization's customers

5. How often are operational plans typically updated?

a) Quarterly c) Annually or semi-annually
b) Monthly d) Every few years

6. What is the focus of the operations plan for a manufacturing business?

a) Service delivery c) Production process
b) Inventory management d) Customer communication

7. What is the focus of the operations plan for a service business?

a) Menu and inventory management c) Service delivery
b) Production process d) Customer service

8. What is the focus of the operations plan for a milk tea shop?
a) Staffing c) Supply chain management
b) Customer service d) Inventory management
9. What does the supply chain management element of an operational plan
typically include?
a) Marketing and advertising c) Inventory management
b) Staffing d) Customer communication

10. What does the quality control element of an operational plan typically
include?
a) Regular audits of client accounts
b) Regular taste tests and visual inspections
c) Ongoing professional development for team members
d) Financial projections

11. What does the performance measures element of an operational plan

typically include?
a) Marketing and advertising metrics c) Financial performance metrics
b) Customer satisfaction metrics d) Supply chain management metrics

12. What is the purpose of a budget in an operational plan?

a) To detail the financial resources required to implement the plan
b) To provide guidance to the organization's employees and managers
c) To provide guidance to the organization's stakeholders
d) To provide guidance to the organization's customers

13. What is the purpose of the timeline element in an operational plan?

a) To outline the timeframe for completing each action or task in the plan
b) To provide guidance to the organization's employees and managers
c) To provide guidance to the organization's stakeholders
d) To provide guidance to the organization's customers

14. What is the purpose of the goals and objectives element in an operational
plan?
a) To detail the financial resources required to implement the plan
b) To outline the strategic goals of the organization
c) To provide guidance to the organization's employees and managers
d) To provide guidance to the organization's stakeholders

15. What elements are typically included in an operational plan?

A) Goals and objectives, strategies and tactics, resources, timeline, budget, and
performance measures
B) Goals and objectives, strategies and tactics, timeline, budget, and
advertising
C) Goals and objectives, strategies and tactics, resources, timeline, and
advertising
D) Goals and objectives, resources, timeline, budget, and performance
measures

16. How often are operational plans typically updated?

A) Every five years C) Every year or semi-annually
B) Every two years D) Every quarter

17. Which of the following is an example of an element typically included in an

operational plan?
A) Sales targets for the next 10 years
B) The CEO's favorite color
C) The number of employees in the HR department
D) Performance measures used to assess the effectiveness of the plan

18. Which of the following is NOT an element typically included in an operational

plan?
A) Goals and objectives
B) Financial projections
C) Hiring plan
D) Resources

19. What is the focus of an operations plan for a manufacturing business?

A) Service delivery
B) Staffing
C) Quality control
D) Production process, supply chain management, staffing, quality control, and
financial projections

20. What is the focus of an operations plan for a service business?

A) Production process, supply chain management, staffing, quality control, and
financial projections
B) Service delivery, staffing, client communication, quality control, and financial
projections
C) Inventory management, marketing, staffing, quality control, and financial
projections
D) Production process, staffing, financial projections, and advertising

TRUE OR FALSE. Shade “A” if the statement is correct and “B” if the statement is
false.

21. An operational plan is a high-level document that outlines the goals and
objectives of an organization.
22. An operational plan provides guidance to employees, managers, and
stakeholders on how to carry out day-to-day activities and achieve the
organization's overall objectives.
23. An operational plan includes only the budget required to implement the
plan.
24. Performance measures are not included in an operational plan.
25. Operational plans are typically developed at the individual employee level
of an organization.
26. An operational plan is a critical tool for any organization that wants to
achieve its goals efficiently and effectively.
27. An operational plan should be updated on a quarterly basis.
28. The operational plan for a manufacturing business focuses on the production
process, supply chain management, staffing, quality control, and financial
projections.
29. The operational plan for a service business focuses on the service delivery
process, staffing, client communication, quality control, and financial
projections.
30. The operational plan for a milk tea shop focuses on the menu and inventory
management, production processes, staffing, customer service, quality control,
and financial projections.
31. An operational plan only includes the resources needed to carry out the
strategies and tactics outlined in the plan.
32. An operational plan is typically developed at the departmental or functional
level of an organization.
33. The purpose of an operational plan is to ensure that all employees are
working towards different goals.
34. The production process for a manufacturing business involves milling,
sanding, staining, and selling.
35. An operational plan is not a critical tool for any organization that wants to
achieve its goals efficiently and effectively.