BSBMGT517 Manage operational plan

Task 1 – Operational Plan Development

This assessment task requires development of an operation plan for a business you have access to or

for a simulated business.

How to prepare the operational plan?

The operational plan details how the organization will accomplish the goals, objectives and strategies outlined in the strategic plan. It includes the actions to be undertaken in line with them strategic plan objectives, who are responsible for carrying out these actions, and the time frames, costs and key performance indicators associated with these actions.

The operational plan should apply to the life of the strategic plan, but should be reviewed on a regular basis to ensure sufficient progress is being made towards achieving the objectives and so priorities can be revised as necessary.

The operational plan must include each of the elements stated below:

· Business introduction and operation, service or project

· Executive Summary (overview of the operational plan)

· Business strategies/ objectives

· Actions (key actions or component that you need to address with your operational plan so you will succeed with your planning. Think about resources planning, HR planning, quality, safety…

1. Plan physical resources effectively and efficiently. --> obj: increase production capacity by 50% end 2021

· Operational plan objectives (SMART) from you action above define objectives that are related to each action, you need to specify quantity and when you want the objective to be accomplished

1. Action: Plan physical resources effectively and efficiently. --> obj: increase production capacity by 50% end 2021

KPI are your objective represented proportionally into small time frames: 50%/10 months = increase production 5% per month

· Consultation strategies, Prioritizing actions

Stakeholders (who)	Role in the consultation	Priority level, engagement level	Consultation method
Employees	Suggestions for improvement	Low /high?

· Process planning (steps of your operation) check power point, provide sequence of your operation steps/tasks

· Production planning (number of services or units a day. Please provide formula and calculations)

Average sales forecast per month = $ 25,200.00

Price per unit = $ 15.00

Number of output per month = $ forecast per month/ $ Price per unit=

Decide on number of working days per month: 24 days, 30?

The amount of output to be produced per day is: number of outputs per month/ number of working days= units/ services per day

· Physical Resources needed

Raw material needed for your operation of service	Quantity per unit	Total quantity based on production * calculated above	Safety quantity	Total quantity	Cost per unit/kg/	Total cost
	Total cost Raw material ( add all costs)

· Equipment and machinery

List of equipment needed

Equipment needed and machine	Quantity need per unit	Total quantity equipment needed based on daily production	Extra equipment/ machinery	Total quantity	Cost unit	Total cost
	Total cost equipment + machinery

Calculation of the quantity

Planned Rate of Production per day

Total machinery needed= x

Machine Productive Time per day

Operation hours – (Setting up time + Down Time)

Standard Production

Time / Unit

Recommendation and specifications to make physical resources more effective and efficient

· Human Resources needed

Worker Standard Production Time/ unit

Planned Rate of Production per day

Total labor needed= x

Worker Productive Time per day

Working hours per day – rest time or workers idling time

Staff position	No. of Staff Required	Number of hours / month	Salary/Month	Total
	Total cost HR

Provide some strategies about recruiting, inducting and developing personnel, acquiring physical resources and services to make them more effective and efficient

· Licenses/ registrations needed

· protecting intellectual property

· Financial Resources (budget) needed

Operating Expenses	Monthly	Yearly
Raw material cost
Equipment cost
Labor Payrolls HR
Intellectual property
Licenses/ registrations/
Rent
Utilities
Insurance
Other expenses
Marketing
Total Operating Expenses

Forecast Total Sales
Cost of goods to sold (Raw material cost)
Gross profit (total sales- cost of goods to sold)
Expenses (do not add again Raw material)
Total profit /loss

· Action Plan

Key of success	Objective	Resources	Procedures / Actions	Responsible	Timeframe	Budget	KPI
What needs to be done	Why we need to do it	What needs to be done, previous	How we will do it	Who will do it	When	How much money is needed	Measure of control KPI

· Monitoring process and measurement

Monitored item	Responsible	Frequency	Referencing documents/ Resources

· Risk Management (required table)

Identified risk description	Priority	Mitigation strategy, prevention	Contingency strategy	Responsible	Timeframe

· Communication Plan (use table or paragraph description)

Stakeholder/ audience	Key interest and issues	Method of communication	Frequency

· Review/ evaluation process

· Approvals needed

· Appendix (if any)

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