1. J0704-Business Plan Management & Organization Session 18-19

2. J0704-Business Plan To succeed a business must occupy a field of public usefulness by producing a good article at the lowest price consistent with fair treatment of all those concerned with its production, distribution and consumption – Walter C.Teagle Day-to-day Methods and Procedures

3. J0704-Business Plan The Elements of Operations Operations Summary Operations Description Human Resources Facility Production Supply and Distribution Fulfillment Customer service policy

4. J0704-Business Plan The Elements of Operations Inventory control Efficiency Control Cash Flow control

5. J0704-Business Plan Operations Description Describe the business operation If the business has division, list them in their order of operations If the business is manufacturing, assembly or wholesale company, it is more important to convey the complete operational procedures Explain the competitive edge

6. J0704-Business Plan Human Resources If the company is very small or is a homebased business, skip this segment If the company have or intend to have several employees, develop some basic human resources policies Develop procedure for –recruiting, –new employee orientation, –training, –reviewing,

7. J0704-Business Plan Human Resources –salaries and benefits, –standardized holidays, –incentives and rewards As the final element of this segment, describe any new positions to be created and eventually filled that are in addition to those listed in Management & Organization section

8. J0704-Business Plan Facility Describe your facility and location in term of operational effectiveness For home-based business, be candid and state that the operation run from the home because no need for the expense of an office. State the advantages of your facility for your specific business Describe the main office and branches (if any)

9. J0704-Business Plan Facility Office layout Cover the essential site advantages Briefly explain the facility’s advantages over the competition within market, any cost savings If you have a lease, explain in term, advantages and restrictions

10. J0704-Business Plan Production Examine all the company operations involved to create, produce, buy or handle the products or services to the specifications and quality standards. Explain average productivity the output of total unit per day, week or month The work force : –Shop method –Production-line method

11. J0704-Business Plan Production Supplementing the work force Equipment Improving production with technology Quality control

12. J0704-Business Plan Supply & Distribution Supply represents : –Incoming material raw for a manufacturer –Incoming parts for an assembly –Incoming wholesale products for wholesale and retail company Distribution is the operation for the outgoing finished products or services

13. J0704-Business Plan Supply & Distribution Describe the supply operations: –The sources –Average cost per unit –Credit term Describe the distribution operations:

14. J0704-Business Plan Fulfillment Describe your fulfillment operations, from sales through delivery to your customer If a start-up company will have an internal order fulfillment operation, it’s necessary to closely evaluate the process of preparing products for shipping and delivery to customer Cover the methods for rush order, breakage control, safeguard for freshness, ensuring accuracy, tracking, packaging and shipping

15. J0704-Business Plan Customer service policy Describe overall customer service policy include the method used to train the employees to monitor consistency, and to survey customer opinion and attitudes Describe the after-sale policies on warranty, repair, returns and refunds

16. J0704-Business Plan Inventory control There are several inventory management systems for the purchasing cycle : –Economic order quantities (EOQ) –Activity-based costing (ABC) Method for accurate record keeping and assigning values: –Actual cost –Standard cost –Weighted average –FIFO –LIFO

17. J0704-Business Plan Efficiency Control To avoid the pitfalls of crisis management and to develop operational procedures for handling processes not part of the daily routine, this is must be done regularly: –Annual business planning –Pay attention to the larger issues –The often unassigned operations

18. J0704-Business Plan Cash flow control Describe the cash flow control policy and Explain the procedure for handling money