Making Effective Operations

Plan

Business Development Plan

Operation Plan in BP

Why do we need Business Plan

All the work you do in thinking up your
idea, testing it, studying it, and producing
it, has been for nothing if you cant sell it.
Whether you start you own business to
produce and sell your invention,
subcontract out the manufacturing part,
or sell your rights in return for a
percentage of the proceeds, you need a
business plan.
- Pamela Riddle Bird, PhD, Inventing For Dummies
CEO, Innovative Product Technologies, Inc

Operation Plan in BP

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

Strategy Planning Process

Company
Mission

Business
Strategy
Functional Area
Area
Functional
Strategies
Marketing
Decisions

Operations
Decisions
Operation Plan in BP

Fin./Acct.
Decisions
4

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

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 firms organizational structure and the
backgrounds of its key players

Operation Plan in BP

Specialized Plans within the

Business Plan
Operating Plan
Offers information on how the product will be produced or a
service provided, including descriptions of the new firms
facilities, labour, raw materials, and processing requirements

Financial Plan
Provides an account of the new firms financial needs and
sources of financing and a projection of its revenues, costs, and
profits
Pro forma statementsReports that project a firms financial
condition

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Operation Plan in BP

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

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, semi-automatic or fully automatic.
Explain the reasons for selection as above in line with corporate
strategy.
Explain the key equipment's needed for the process.
Explain how will the company acquire technology.

Operation Plan in BP

Operational Plan in BP
Quality Policy
The firms 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, 21000 etc

Operation Plan in BP

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

Operation Plan in BP

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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
- Efficiency of operation
- Higher utilization of space
- Improved flow of Information
- Improved customer interaction
- Ambience etc.

Operation Plan in BP

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Operational Plan in BP
Inventory Management Plan
Plan the Raw Materials, Packing Materials, Utilities, required.
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

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

Operation Plan in BP

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

Operation Plan in BP

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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 training schedules.
Plan the unscheduled breakdowns handlings.
Plan the proper records of the maintenance and maintenance
personnel.

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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.
Identify the limitations of the resources, technologies, capacities etc.
(i.e. aspects of operational plans).

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Factors for considerations

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

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