WEEK 2 – IMPLEMENTATION OF A

BUSINESS OPERATION PLAN

 Course Objectives:
1. Manifest an understanding of starting and operating a
simple business following the operations plan and
strategies.
2. Demonstrate the knowledge on how to implement the
business operation plan using the 4Ms of operation.
 Implementing the operation plan is one of the most difficult
processes to undergo due to the details the entrepreneur has to
consider. It covers the 4Ms of operations that are equally
important to cover all aspects of business operation.
The flow of the implementation of these 4Ms will depend on
what business model or nature/type of business the entrepreneur
will choose.
The successful implementation of an operations plan entails the
employment of the right human resource, use of relevant
technology, well streamlined processes, and partnership with
suppliers.
4 Ms of OPERATION

1. METHODS
2. MANPOWER
3. MACHINE
4. MATERIALS
4Ms of Operations

1. METHODS - Refers to the system and step by step process in the

business. The implementation of processes or methods in the
operation plan will depend on the entrepreneur’s business type or
model.
2. MANPOWER – Requires the identification of the number of people
that will fill key position. The business model has already been set
up, the next aspect of the operation to be looked into is to identify
how many persons are needed and what their classifications are to
operate the business.
… 4Ms of Operation
3. MACHINE – The physical equipment or technology that can help
the business operate seamlessly and with quality. Machinery is
also important. Without the proper equipment, you will not be able
to perform the needed tasks efficiently. You may be able to use the
manpower to do it but it is usually more efficient if machines are
able to automate the work.
4. MATERIALS – The general premise for materials is where to
source these easily with a cheaper price and of good quality. The
entrepreneur must have a minimum of two major suppliers for
contingency purposes.
Business model: Roainne’s Batutay Langgonisa
 Product - Batutay Langgonisa
 Place – Cabanatuan City
 Price – P215/500grams
 Longganisa delivery service
via mobile and social media
limited to Cabanatuan city.
( P30 delivery charge )
 Mini- restaurant that serves
batutay as their main course in
their business residence.
Cabanatuan longganisa, also known as batutay, is a Filipino
beef sausage originating from Cabanatuan City, Nueva Ecija.
It can be served sweet, garlicky, or "skinless". It is celebrated
in the annual "Longganisa Festival" of Cabanatuan City.
 METHODS
Step 1. Register the business.
Go to the city hall’s business permit licensing office to secure a business
permit, and to the Department of Trade and Industry for the business name.
Business Name: Roainne’s Homemade Batutay
Business Classification: Manufacturing and Service
Step 2. Determine the manufacturing elements of the product.
Manufacturing elements:
Input – Beef Garlic Pork isaw ( intestines)
Beef fat Salt
Soy Sauce Black pepper
Sugar Cooking oil
Processes – Grinding of the beef
Mixing of the ingredients
Filling the pork isaw with beef mixture
Packaging
Output – Batutay Langgonisa
Service elements – delivery service:
Input – Mobile phone ( Roainne’s staff and customer )
Social media account ( Roainne’s staff and customer )
Landline phone ( Roainne’s staff and customer )
Delivery staff
Customer’s order request
Processes – Cooking process ( for cooked langgonisa orders )
Ordering process
Payment process
Output – Batutay delivery and payment
Service elements – mini-restaurant:
Tangible elements (Servicescape)
- 20 chairs - cooking oil
- four tables - uncooked longganisa
- big rice cooker - eggs
- rice - garlic
- frying pan
 Intangible elements: Cooking process
Ordering process – dine in and take out
Payment process
Output – Batutay meal
3. Decide the most practical and efficient manufacturing site and location:
home-based or rent/buy a commercial space
Manufacturing site: home-based and commercial space renting.
Location: Barangay Aduas Centro, Cabanatuan City ( near Cabanatuan
City Public Market )
4. Decide whether to follow a product-based or process-based internal layout,
and then draw the manufacturing process flow.
Internal layout: Product-based layout (facilities are prearranged according
to the manufacturing process flow)
Manufacturing process flow:
1. Using the manually operated grinder, grind the beef fat and meet.
2. Mix the ingredients in the following order:
- mince the garlic and mix with the ground beef meat and fats.
- add soy sauce and pepper to taste
- add sugar and salt to taste
- mix all the ingredients thoroughly
 3. Fill the pork isaw with the beef meat mixture using a manually operated
machine. After this, tie the pork isaw and cut it.
4. Pack the finished product.

Batutay delivery process flow:

1. Customer send his/her order via text message/messenger.
2. Upon receipt of the text message/messenger a Roainne staff will
prepare the order and receipt and instruct the delivery staff to deliver to the
customer within an hour.
3. Delivery staff will deliver the batutay to the customer and get payment
 Mini-restaurant service delivery process flow:
1. Customer goes to the mini-restaurant and orders a batutay meal (garlic
rice, batutay and egg) Aside from the batutay meal, the menu includes tocino,
fried milkfish, tapa, hotdog, sausage, and sardines meal. Beverages include
softdrinks, mineral water, coffee, juice drinks.
2. Customers pays at the cashier.
3. Roainne staff serves the longganisa meal.
Step 5 : Decide on what distribution process and distribution channel will be
most economical for the business.
Distribution process and channel: Finished products will be distributed at
the Cabanatuan City Public Market, Roianne will rent a small space in the
market. Product will also be available at their house and in the mini-
restaurant. And the introduction of “ Batutay Text, Landline and Social Media
Delivery Service”.
 MANPOWER
Step 1. Create a table of organization to show a graphical description of the
manpower complement of the business.
Step 2. Prepare a job description for each member of the organization so that
everyone is aware of what is expected of him or her.
Ron Lopez – In charge of overall management of business.
Allaine Lopez – She will manage the mini-restaurant and delivery of
batutay, including the 3 restaurant staff members. She will also be the cashier.
Restaurant assistants – They will be in charge of cooking, packing the
orders and serving customers and cleaning the mini-restaurant.
Delivery staff – He will be in charge of receiving orders via text or social
media and delivery of batutay.
Manufacturing staff members – They will be in charge of the production of
batutay.
Step 3. List the qualifications of employees needed and decide where to
source them.
ex. K-12 graduates, backgrounds in restaurant management, customer-
friendly, hardworking, honest, skilled in driving a motorcycle and a license.
Step 4. Decide on where to source candidates ( friends, relatives, employment
agencies, referrals, manpower agencies, newspapers, social media, walk-ins )
Step 5. Interview the potential candidates and ask them relevant questions
about the job.
Ask potential candidates about their work ethics, attitude toward
customers, service, road knowledge, accounting and sales experience.
Step 6. Choose the best candidates ands provide a job offer. The job offer
should contain the following details.
- List of responsibilities or deliverables and its scope and limitations
- Salary and benefits including vacation and sick leaves
- Work schedule
- Probationary period if any and qualifications to become a regular
employee
- Duration of contract
- Resignation procedure ( 30 day notice or leave immediately)
Step 7. Ensure there is an employee training and development program for the
business.
Mr. and Mrs. Lopez will be in charge of training their five employees on
the following aspects:
- Cashiering
- Customer service
- Table setting
- Longganisa-making
each of the staff members will also be rotated to different positions as part
of the training.
MACHINE
Step 1. List all the equipment and technology needed and decide
whether it is economical to purchase them or just rent them.
General Manager – Laptop
Manufacturing Site – Meat grinder
- Manually operated machine for the filling of meat into the
pork isaw.
- Freezer
- Delivery van for the buying of ingredients and for delivering
the finished product to the supermarket
Delivery Business
- Motorcycle
- smartphone
- Data plan or postpaid plan
- Landline
Mini-restaurant
- Big rice cooker - Coffee maker - Air conditioner
- Big frying pan - big refrigerator - Television
- Gas range - electric fan
- Cashiering machine
Public Market Stall
- Small freezer
- electric fan
Step 2. Understand how to use these machines properly, and apply the
necessary safety precautions before using them. Protect these pieces of
equipment from physical and security risk.
Step 3. List alternate options in case the equipment becomes dysfunctional.
The key is for the business to continue no matter what. Know where to find
repair shops when needed.

Machines are essential to achieve operational efficiency and for the

organization to be cost-effective.
MATERIALS
STEP 1. To determine the requirements for materials, the entrepreneur must
decide on which path to choose: (1)manufacture own products or offer own
services, (2)outsource manufacturing or service activities to a third party, and
(3)purchase finished products or services from a manufacturer.
Roainne chose option 1: manufacture own products or offer own services.
They have decided on this because marketing research has shown that this is
a feasible business.
Step 2. List all the materials needed for the manufacturing or service
business and decide where to source them efficiently ( at least two suppliers).
Requisitioning of Manufacturing ingredients and mini-restaurant
supplies.
 Roainne will buy the batutay ingredients and mini-restaurant supplies in
bulk depending on the market demand from Sangitan Public Market. This is
where fresh produce from nearby provinces are distributed.
Step 3. Implement efficient logistics management-warehousing,
transportation, and inventory management.
Warehousing – Roainne will buy a big freezer sufficient to initially store at
least 50 kilos of longganisa. A small freezer will also be bought for the
supermarket stall.
Transportation – A delivery van will be purchased by the business to
transport the ingredients from Sangitan Public Market to the manufacturing
site and to transport finished products to Cabanatuan City Public Market.
Inventory management – it is ideal to sell all homemade batutay the day they were
produced. Batutay can be produce in bulks and be stored in the freezer. This will
save Roainne in manufacturing cost because they will produce them in bulk. The
concept of “economies of scale” is very much applicable.

Economies of scale are cost advantages reaped by companies when production

becomes efficient. Companies can achieve economies of scale by increasing
production and lowering costs.
Timeline Lorem Ipsum

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