ACTIVITY SHEET IN BUSINESS ENTERPRISE SIMULATION

Third Quarter

Name: __________________________ Grade Level and Section: ________

School: _________________________ Date: ________________________
Teacher: ________________________ Score: _______________________

I-Title: Operating Plan

II-MELCs: design an operating plan to ensure that the inputs and processes required
to deliver the product or service are identified, and estimate the costs needed for
production (ABM_BES12-Id-j-c7)

III-Instructions: Study the given text on Operations Study.

Business Enterprise Simulation course lodged with the owner-proprietor and operations
teams. It is important to identify some critical areas that should be included in the
operations study, as follows:

1. product or service description

2. supplier-partner description
3. cost of product or service

Product or Service

This involves the design of the good and / or service and its quality standards.
As this course covers only the service and merchandising sectors, no actual design
from scratch is done by the learner-entrepreneurs.

It is essential for the enterprise groups to ensure that their goods and services
comply with established standards such as products should be inspected for
trademarks, business names and registrations, and/or quality marks. A cursory check
on the labels and/or review of the websites of the product sources is recommended.
The DTI may also have the information on the quality standards for most products sold
in the Philippines.

Flowcharts may be required for enterprise projects to ensure compliance with

quality standards.

Some questions that may be answered would include the following:

 Does the product have a shelf life or best-before feature?

 Is there a product liability?
 Does the product comply with established quality standards?
 How long would each service unit delivery take?
 What are the steps involved in the service delivery?

Supplier-Partner Description

The supplier-partner description will include the process, supply chain, and inventory
management tasks for the owner-proprietor and operations teams.

Some questions that would be critical for cost considerations of both service and
merchandising projects would be:

1. Does the supplier-partner offer affordable prices?

2. Does the supplier-partner offer delivery services?

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 3. Does the supplier offer goods on a consignment basis?
4. Does the supplier replace defective products that are returned?
5. What is the lead time for delivery of the purchased goods?
6. Is there a minimum volume for discounted purchase goods?
7. Is there a setup cost for tools or equipment?
8. What is the setup time for the tools and equipment?
9. Is there a required layout for the service delivery?
10.What is the area required for the recommended layout?
11.What facilities are required for the service delivery?

Whenever possible or applicable, the learner-entrepreneurs may opt to get a supplier

agreement with the chosen supplier-partner.

For service enterprises, supplier sources may include skilled laborers, such as watch or
gadget repair technicians, beauticians, or even cooks or chefs. It is recommended that
qualifications of these skilled employees are checked. For example, training certificates
and/or government-issued permits or licenses may be required.

Cost of Product or Service

The cost of product or service would include expenses for the following:

 Rental of shop or outlet

 Renovation or construction of facilities
 Salaries and wages
 Utilities expense
 Transportation expense
 Communication expense
 Purchase of materials
 Purchase of supplies
 Purchase and/or rental of-
o Machinery, tools, and equipment
o Furniture and furnishings

It may be helpful to classify the direct and indirect expenses incurred for the
projects. The information may be relevant for the pricing decisions of the
marketing team.

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IV. Activities

Simulation Activity 7: Operations Study

Instructions: Answer the following questions based on business opportunity idea you
have had identified in your community.

1. Does your product or service comply with product or service standards?

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2. Do you have a supplier-partner for your product or service?
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3. Discuss below the work assignment assigned for each employee in your business.
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4. What is the cost of your product or services? (enumerate the raw materials or
expenses incurred in the operation of your business)
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 FLOWCHARTS

Instruction: Create a flowchart on how your business operates indicate the time for
each activity.

Pre-opening flowchart

Order/Sales flowchart

After closing flowchart

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V. Closures

At the end of the chapter, write two or three sentences to complete the following:

I realized that:

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I resolved that:

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VI. References

Victoria Garalde-Orjalo, Erlinda C. Pefianco, ED.D: Business Enterprise Simulation:

Business Incubation and ABM Integration

Prepared by:

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Subject Teacher