operational final (2)

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2Operational plan

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Fawad Khan c.no 33 Nauman khan c.no 35 Aftab ahmad c.no 34 Asifullah c.no 32

Group members

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Overview of presentationDefinitio

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Importance of operational

plan

How to write an operational

plan

Presentation of operational

plan

Features of operational

plan

Description of company

Technology utilization

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Operational plan defines how you will operate in practice to implement your action and monitoring plans – what your capacity needs are, how you will engage resources, how you will deal with risks, and how you will ensure sustainability of the project’s achievements.

Definition

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  Who is doing what? What are the day to day activities? How will the suppliers and vendors be

used? Who are the suppliers? What are the labor requirements? What are the sources of raw

materials?

Operational plan will answer some of the fundamental questions such as:

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Human and Other Capacity Requirements – The human capacity and skills required to implement your project, and your current and potential sources of these resources. Also, other capacity needs required to implement your project (such as internal systems, management structures.

The key components of a complete Operational Plan include analysis or discussions of:

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• Financial Requirements – The funding required to implement your project, your current and potential sources of these funds, and your most critical resource and funding gaps.

contd

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What risks exist and how they can be addressed.

• Risk Assessment

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Operational plan is important

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An Operational Plan ensures you can successfully implement your Action and Monitoring plans by getting your team to:

• Prepare your project to raise funds, being clear about how you will get the resources and arming you with a convincing plan to review with existing and potential donors.

• Use resources efficiently, to help allocate scarce resources to the most critical gaps and needs.

Why an Operational Plan is Important?

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Clearly define your capacity gaps and most critical resource requirements.

• Reduce risks where possible, and prepare contingency plans where necessary.

• Think about the long term future of the project, including how you will ensure sustainability of your project’s targets and impacts.

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It is important that you understand the gravity of the situation in real world.

Because you are now practicing with real world not theory.

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As an internal planning document, the plan should be a detailed, in-depth operational plan.   However, if you are using your plan to gain additional funds, remember not to get too complicated.

How to write the Operational Plan

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Don't leave your reader sitting there, scratching their heads, trying to figure out every detail.

Keep it simple and remember, you want to convey to your reviewer that you have everything under control.  

Contd…

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Presentation of operational plan

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If you are planning to present your plan to a third party reviewer, ask yourself these two questions:

1. Will the reviewer understand the content?

  2. How important is the content to the

overall understanding and appreciation of the business plan?

Presentation of Operational Plan

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The relative importance of an operational plan will depend on the nature of the business.

A production facility will probably require significant attention to operational issues.  

A retail businesses and some service businesses will probably have less operational complexity.

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What an operational plan should cover

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An operational plan should be specific to your business.

Not all businesses require the same level of complexity when it comes to the operational plan.

In your own plan, you do not necessarily need to address each topic. Rather, limit your operations section to those issues that are needed and considered essential to the nature and success of your business.

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If your business is a manufacturing in which product distribution is often a major difficulty

if your business is a retail operation, distribution may not be a problem and you might not have to discuss it.

On the other hand, if you business is an operation that develops or relies on a lot of new technology, you need to explain those aspects thoroughly.

contd •An Operational plan should Cover….

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Explain how you are going to deliver your product.

What you and/or your employees are going to do on a daily basis from the time you open up to time you close.

This is what your reader wants to know.  

contd •An Operational plan should Cover….

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clear objectives activities to be delivered quality standards desired outcomes staffing and resource requirements implementation timetables a process for monitoring progress.

Operational plans should contain:

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Some issues often addressed in an operational plan include:

Production or manufacturing Facilities Inventory Distribution Maintenance and service - Order

fulfillment and customer service

Features of operational plan

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Every manufacturing business has a production process - the way it goes about fabricating a raw or component material and creating an item with greater usefulness or desirability.

However, even if your business is a service or retail operation, you have to use a method of “producing” something of value for your customers.

Integral to the overall understanding of a production oriented business is an appreciation of how the company will manufacture its products. One straight forward way of conveying such information is to examine this activity in terms of resources, processes, and output.

Production or Manufacturing

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Resources may be characterized as those elements, the firm must utilize in an effort to manufacture a desired product.

Typically, resources includea) Manufacturing facilities, b) Machinery equipment, c) Materials and related assets, d) Labor. Depending on their relative importance,

attention might be focused on each of these elements.

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In the case of a production facility, it is important to discuss the process by which a company will manufacture its products.

This usually involves some description of the plant, equipment, material, and labor requirements.

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What techniques and processes are going to be used in combining these resources, such as assembly lines and robotics;

And the capability of the business in terms of production rates, critical constraints such as productive capacity, or quality assurance programs.

Techniques

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What is the name of the company? What product or service are you

offering? Where is it located? Is this a start up or an existing

business?

Description of company

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How will it be organized? Will it be a sole proprietorship,

partnership, or corporation? Is the company a manufacturer,

retailer, or service business? What customers is it attempting to

serve?

Contd..

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In doing so, you may find little gaps here and there that may serve impede the bottom line - profit. Look at the various stages involved in creating your product or service, can these stages be shortened?

Remember, you must use your judgment in deciding how much detail should be offered in the operational plan. Just remember that you want to convey to your reader that you have covered all of your bases when it comes to production.

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Here are some points you may want to consider when putting your operational plan together:

 Capacity   Capacity is the measure of how much work your

facilities, labor force, and equipment can handle. Does your production process have the capacity

to keep orders up? Do you have too much capacity?

Not enough capacity?  

Some key points that are needed in operational plan

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Productivity   Productivity measures how long and how many people it

requires to produce your product or service. If you can produce more goods in less time, you can improve the bottom line from every dollar spent on equipment and operating costs such as salaries and rent.

Labor

What kinds of and how many employees do you require to produce your product or service? How are you going to use them? Are you going to be using seasonal workers? Full time? Casual?

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Quality Assurance   How are you going to keep consistent and maintain

the same standards with each product or service? Such activities include regular inspections throughout the production process, occasional testing or sampling of goods.

Facilities In business, the location of your facilities can prove

a critical factor for your success. If your business is going require a large outlay of capital assets at the onset, you will need to make sure the facilities are adequate and are positioned properly.

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Location  

Include the location of company headquarters, retail store (s), branch offices, additional plants, and others. Describe the size and how each will be allocated. Mention why you are located at your particular location and the benefits associated with it.

  Describe access to parking and transportation; air,

rail, and surface shipping access, and loading docks, warehouse, and other facilities.

Keep these points in mind when you are completing your operational plan for company:

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Improvements What improvements are needed to get the

building in working condition and how much will it cost to fix it up.

Lease/Rent   Are you leasing? This is very important and make

sure you understand all aspects of the lease. What restrictions are in the lease? Can you get out early if things go sour?

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Maintenance What are the operational costs associated

with the building? Include the cost of gas, water and electricity. What are the costs for janitorial, trash removal and other operational costs.  

Inventory   Different businesses will have

different inventory requirements. Of course, a large retail operation will have much more inventory than an engineering consultant so remember to use those points that apply to your business.

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What's the use of setting up a manufacturing facility in a rural setting with no transportation mechanisms?

You will need to decide how you are going to get your product to your consumer and position your facility that will be both cost effective and efficient.

  When evaluating your facilities, examine those

aspects most important for your particular business. Do you need to be close to certain transportation facilities?

Do you need to be close to key suppliers? Do you need to be downtown?

Flow of goods and services

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  Keep up a good relationship with your

suppliers. So it's important to work at developing

excellent relationships with your suppliers and distributors;

  It's also important that you try not to be

too dependent on just one supplier or distributor.

Distribution

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Use suppliers that understands the needs of your business. Look for companies that can deliver on time, and have excellent customer service. Don't make the mistake of using a supplier based on price alone.  

Select suppliers with whom you can communicate well; make certain they understand your specifications and can consistently meet your standards.

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In other cases, such as technical or new products, support may be necessary if a customer is to use and maintain properly the company's products. A company can benefit in two ways from providing quality customer service.

First, a company can preserve and enhance its reputation and its relationship with customers by providing guidance and support after a sale. This support may range from simply providing an operating manual to having a staff of service people on call, ready to address customer problems.

Strategic criteria

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Second, this activity may prove to be an additional source of revenue. This is the value of a lifetime customer. By keeping in touch with your customer on a regular basis and providing them with quality information and special deals, you give them a reason to trust you. People only buy from people they trust.

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Customers are constantly demanding better and better service. The expect to get what they want, when they want it, and to be treated graciously and fairly in the process.  

So, it's your job to make certain customers have little reason for complaints. Build sufficient flexibility into your policies so that you can easily handle unusual or difficult requests.

  Also look at your order fulfillment process. Often, orders

are not communicated clearly or quickly to the processing department, and valuable time is lost due to inadequate internal communication. Assess the methods by which you prepare goods for shipping and deliver good to customers.

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What Do You Use Technology For? Internal communication Presentations Desktop publishing/graphics

Technology utilization

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Personnel/human resources management Production: design, cost-tracking, supply

management, etc. Internet marketing/e-business Internet sales

Technology utilization

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Slogan

As the largest defence industry of the country, POF stays committed to safe guard the invaluable blessing of freedom through enabling the armed forces of Pakistan.

Example: Pakistan Ordinance Factory

Operations Plan

Description of

company

Flow of order of goods and

services

Technology

utilization

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Name: Pakistan Ordinance factory

(POF) Address: Pakistan ordinance factory is

located at Wah cantt.

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Pakistan Ordnance Factory is the premier defence industry in Pakistan, producing a wide range of conventional arms and ammunitions.

Products:- I. infantry weapons II. Small arms ammunitionIII. Artillery ammunitionIV. Mortar bombsV. Air craft and anti air craft ammunitionVI. Tank and anti tank ammunitionVII. Grenades VIII. Millry explosives and propellant IX. Rockets X. Commercial explosives

Pakistan Ordinance factory (POF)

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As we know that, the raw materials come from the Pakistan Steel Mills.

Then, processed in HMC, arrives to the POF. Then, here various manufacturing processes

are applied on these, and transformed into final products.

Then, assembly is done on it. Then, finally exported to other countries on

demand. The above was the general over-view of the

POF.

Flow Of Order And Services

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Modern machines Expert personnel Online product information Online demand and supply

management Experimentation.

Technology Utilization

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The final and most important part of the operational plan is that, it is always in progressing stages.

Once, your venture progresses then you will have to observe other already established ventures, and you will copy them.

But sometimes, by using your divine skills one creates a master-piece of his own.

Improvise

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Any question?

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