Assignment 5 Due 12/8/18 Saturday 11PM EST

Operational plan

The company key aspect of operation include facilities, production process, equipment and the labour force. these items are important in faciliting the production process. these are sorted out as below:

Facilities

The company facilities include vans for distribution of the company products and land for setting the company. the company will buy five vans for the process of delivery the products to the target customers. A van will cost the company $ 5,000 each while renting a van at $ 300 per month. This will bring the total budget for purchasing the vans to $ 25,000.

Production Process

The Pure Drink company production process consist of five distict process including sugar syrup classification, water microbial stabilization, carbonation, Bottle Blower and Bottle washer and Bottle filler. First, the syrup classification will involves mixing of water with flavour and sugar. Water microbial stabilization contains treating the plant or the syrup to make it stay longer before going perishable. At carbonation stage, carbon dioxide is added to the the drink. At this stage carbon dioxide will be added only to the carbonated drinks. Bottler blower stage involves washing the bottles to ensure that they are free from contamination. Lastly, bottle filler stage involves washing the bottle to free them from contaminants. And lastly, the bottler stage involves filling the bottle with syrup and ready for supply and be feried to the target customers.

Equipment

The equipment required for the process include two mixer beverage filling machine costing approximately $ 28,000, four vehicles costing 10,000, three computer at $ 1,200 each and graphic software at $ 750. Pure Drinks will also lease equipment such as labelling machine at $ 450 and printers at $ 550 annually.

Labor force

For the start up, the company labour force will consist of the CEO, computer expert, master mixer and a volunteer worker. Stephen Job has been identified to serve as the company computer expect. He will be operating 20 hours a work with wage scale of $ 10/hr. Melinda Cates will server as the company master mixer with no stipulated salary. She will be given $ 40,000 inheritance at Pure Drinks company. lastly, Ian Glass will serve as a volunteer foreman will annual salary of $ 55,000.

Cost and Efficiencies

The cost to be incurred during the process include the cost of inventory, proffessional services, telephone costs, business insurance, office supplies, mailing and postage, printing services and inventory.

Competative Advantage

The beverage industry is very competative due to the presence of a large number of the small and large brands. For the company to maintain being in business for a longer time, the business will try to buy the facilities with longer life span (Jacobs, Chase & Lummus, 2014). For example, the beverage filling machine will be bought. Pure Drinks will also lease equipment such as labelling machine at $ 450 and printers at $ 550 annually. To increase the level of production for the softdrinks, the company will go for a bottle filling and landing machine with Automatic break protection, designed to fill the bottle without the assistance of the physical labour.

The company inventories willl be sourced locally within the regional stores. The inventory include Glass bottles, Labels, metal caps, cardboard cartons and the ingredients. The inventory related costs is as summerised in table 1. The inventory will be kept in the company main warehouse before the production starts. To ensure that the company does not run out of stock, order will be placed when the stock runs to a quarter mark of the total budgeted inventory.

Table 1: Pure Drink Inventory Budget

The distribution for the new product will be done through physical delivery to the retail premises where the products are then sold to the final consumers. Online sales platforms will also be created where the customers can order the products at the comfort of their homes. Online sales will incur a small delivery fee to pay for the riders and the cost of maintaining the premise vans.

Technology Needs

The technology needs for the company include the software needs, hardware needs, telecommunications and personnell needs. The company will purchase a software worth $ 750. Again, there is a plan to buy three Apple macintosh computers worth $ 1,200 each. The company will also install office telephone system costing $ 1,200. The cost for telephone include both the installation and running cost for two months. To operate both hardware and software’s of the company, pure Drink will employ Stephen Job as a computer expert. Stephen will work for 20 hours with a wage rate of $ 10 per hour.

Management and Organization

Key Management and Employees:

The top management of the company will be composed of president, VP marketing, Vp sales, controller, Vp operations and Vp human resources. Below the top hierachy the company will have several departments that is responsible for coordinating the organization activities. the departments include, marketing, sales, accounting, purchasing, production, research and development and personnel training department. Figure 1 show leadership hierachy for the company.

Figure 1: Pure Drink company management hieranchy

The budget for the management and personell cost can be summerised in table 2.

Table 2: Projected Costs for Management

Board members and advisors

The board members of the company will consist of the attorney’s, accountants, management consultants, industry specialists and technology consultants. The board will be guided by a chairperson, treasurer, and the secretary who will also be the president of the company. In addition, the board will be composed of six other memebers who will assist the executive board members in decision making process. the board members will earn allowances for every sitting but will not be entittled to any full salary from the company.

References

Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.

Stevenson, W. J. (2005). Operations management. McGraw-Hill.