Operation plan - globalresearcher

July 13, 2015

For the purpose of this paper we are going to assume that the Strategic and Tactical Plans are aligned with the operational plan. The operational plan is then the implementation plan of the Strategic and Tactical plan that has been developed and approved by mid and upper management. The name of the company is Sweeney’s Medical Device Inc. and employees approximately 200 employees and has annual; sales of $90 million.. The company has one manufacturing facility that is located in the United States. The company produces and manufactures medical instruments that are affordable for the medical industry. The following is a brief review of the planning process, vision, mission statement and values of the company are as follows:

For a brief review the operational plan can be defined as a plan prepared by a component of an organization that clearly defines actions it will take to support the strategic objectives and plans of upper management. However, to fully understand operational plans, we should first look at the overall planning process within a business. This diagram shows three levels of planning.

The operational plan we have to assume that upper management has prepared both a strategic plan and a tactical plan. This means that lower management should have a clear sense of what they are trying to achieve.

Vision:

· Sweeney’s Medical Device Inc. Vision is to help people enjoy life, and offer affordable products to the Health care industry.

Mission Statement:

· Sweeney’s Medical Device Inc. Is a Manufacturing Company that will be committed: to providing the best quality of products using are highly trained staff. Are products are unique, affordable and meet or exceed medical standard in the industries. We at Sweeney Medical Device Inc. will continue to strive to develop and create innovated products for the years to come to support our customer’s needs. Sweeney’s Medical Device Inc. employees are expected to serve the customer with the highest level of integrity and quality support for our valued customers

Values

· At Sweeney’s Medical Device Inc., we will provide good ethical and integrity standards. We will always strive to meet our customers’ requirements and make the best quality product.

Listed below is the high level overview of the organizational chart which must be assumed that each organizational department has their own detailed organization chart but will not be listed at this time. Review the organizational chart and summary of the description, duties and responsibilities.

Positions,’ Duties and Responsibilities

President: The President will be our leaders of the company. He we insure the company continues to increase the growth of the company by the sale of medical instruments to the health care industry. That will be able to provide a better and more affordable health care products to its customers. The president will work with his team to outline a strategic plan to help the company grow in sales and obtain a greater market share. Make sure we create a cultural based on quality, continuous improvement and oversee the operations of the company. Make sure we are in compliance with all laws and regulations. To insure our procedures, policies, and standards. meet our operational commitments.

Regulatory: Regulatory will make sure at Sweeney’s Medical Device Inc. that we meet all laws and compliance that to meet or exceed the manufacture of medical instrument to the health care industry. They must use their skill set and experience insure the products, which are developed, manufactured or distributed by the Sweeney’s Medical Device Inc. will meet the required laws and specifications in the medical industry. Regulatory will report directly to the president.

Legal: The Legal Department, will report to the President and will provide legal advice, manage legal risk and insure that we are in compliance with all laws, contracts and any other legal requirement to support Sweeney’s Medical Device Inc.

Finance Organization: Positions,’ Duties and Responsibilities

Vice President of Finance To support and report to the president and other executive level management on the manufacturing at Sweeney’s Medical Device Inc. Support continuous improvement projects and use the best manufacturing techniques, technologies and process in the industry. Will meet the strategic objective of the company and meet it performance and tactical goals.

Chief Accountant: Will create and submit a P & L (profit and loss) statements on a monthly, quartile and annual basis. They must manage the financial reports and provide updated information to the VP of Finance and make sure we have accounting procedures in place the meet the medical industry standards in compliance.

Budget Analyst: Manage the operation and be the leader in staffing the company in its budget review process and will maintain the budget document and provide analysis and provide ways to correct and improve the process to enhance the success of the company.

Accounts Payable: Will make sure payment and the management of the expenses are completed and making sure the correct software is used and staff trained on how the functions of the organization is run. Will manage staff to meet strategic objectives and provide performance data to upper management.

Accounts Receivable: Complete invoice process and process financial receipts and working with vendors in resolving discrepancies. Will provide financial data and work to meet the strategic objectives of the organizations and company as a whole.

Auditing: Will conduct internal and external audits when required to make sure the company is meeting its internal and external process, procedures and requirements to its customer and the medical industry. Provide data and recommendations if required or improvements that can help the company meet it strategic objectives and operational process and control are current.

Manufacturing Organization: Positions,’ Duties and Responsibilities

Vice President Manufacturing: The V.P. will manage and makes sure all manufacture objectives are met and completed based on the strategic plan of the company and its organization. The VP of manufacturing will report all activities and detail report and data on performance and continuous improvement projects, safety and creating a good and healthy work environment to the workforce. Provide progress reports and cost saving projects to the president of the company. VP of Manufacturing will have the responsibility that the organization follow the process and procedures of the organization and provide inputs for improvement and cost cutting projects.

Manufacturing and Assembly: The Manager of this department Manufacturing and Assembly will manage and supervise the staff in meeting the objectives set by the VP of manufacture and the strategic plan by the President. Work to exceed organization expectations and meet its metric goals and perform to the quality standards set by QC and the manufacturing department. Will make sure the workforce follows the specification, policies and procedures outlined in the SOP. (Standard Operating Procedures) Will strive to implement continuous improvement process to the assembly line and manufacturing process. Will be responsible for maintain the equipment, and tools so they meet the quality, safety and operating procedures for the company

Production Planning: Manufacturing: The Planning department will meet and plan the production schedules for the manufacturing department so it can meet its operational commitment and strategic objectives for the company. They will provide updated information on the progress and completion of product in the assembly line and any issues or concerns they see in the process. They will provide performance metrics and important data requested by the VP of manufacturing and the President of the company.

Warehouse Management: Will manage the inventory and supplies of the company and create a process that meets the operational and objectives of the organization and the company. They will support the various organization in the company by suppling parts in a timely manner when requested and alert the company of any shortages of parts. They will provide inventory and warehouse management metrics on a weekly, monthly, quarterly and annual basis to upper management. Continue to implement continuous improvement projects and insure the organization follow the SOP guidelines

Shipping: They are responsible for coordinating the activities of employees engaged in material handling, shipping, storage and transportation. Shipping are responsible for reviewing packing lists and ensuring the correct items are shipped out to customers. Using the correct technical and software technology to meet it operational objectives and job functions.  Maintaining, organizing shipping material moved and load shipping items in transportation trucks. Assure that products processed for shipping are delegated to correct courier. Assure product is sterilized prior to shipment to customer and meeting all packaging requirements per our (SOP’s). Overseeing all shipping objectives and tracking and providing details reports and following the SOP’s of the organization

Engineering Organization: Positions,’ Duties and Responsibilities

Vice President Engineering: The vice president will report to the President of the company. The objective of the VP of engineering is to meet the strategic objectives of the organization and develop continuous improvement projects, develop new instrument technology for the company and the medical industry. Correct any engineering designs and maintain the catalog of design work, cost saving opportunities and keeping the quality of work to the highest standards in the industry. Will support manufacturing and work with the organization to create a good operations and improve production and new design always improving on quality and great place to work environment. Provide detail metrics and goals to the president on all the work and progress being made in the department

Research & Development: Research and Development Engineering staff will support the engineering department and manufacturing in creating and develop of new designs products that are at the best cost, quality and technological instruments in the medical industry. Engineering and R & D will meet the operational objectives and strategic objective of the company. R & D will receive input from the marketing team on what the customers need and what improvements are being requested with our current catalog of instruments. Creating a win/win environment for our company and our customer base in the industry. Will provide performance metrics in meeting the operational commitment of the organization.

Manufacturing of Engineering and Design: Manufacturing Engineer will work with the VP of Manufacturing and R& D on integrating continuous improvement projects for the assembly process and new design of instruments in the manufacturing department. They will provide data and metrics on the continuous improvement of quality, efficiency, and reliability in the production environment. Develop cost estimates. Work with Marketing to draft proposals and reports for clients. Develops, evaluates and improves manufacturing methods. Follow their SOP’s and meet or exceed organizations objectives and production processes.

Machine Shop and Fabrication: Will be in charge of machining and fabricate products that meet the specifications and quality for the Manufacturing and R & D requirements. All products requested and requirements per the Bill of Material (BOM) shall be machined and fabricated to specifications outlined in the SOP and technical specs outlined in the work instructions and manufacturing process. Provide metrics on performance and quality and insure the organization is meeting is operational commitments and the strategic objective of the company.

Quality Assurance: Will manage and support manufacturing and other organization on the quality of the products. It will support each and every organization on the importance of quality which is the cultural and norm of the company. Will provide corrective action repots where needed and support the procurement department in providing quality audits with our Vendors to ensure they meet our quality specifications and requirements that support the manufacturing of medical instruments in the Medical industry. Will provide performance metrics and insure that the operational and strategic objectives of the company are met.

Marketing Organization: Positions,’ Duties and Responsibilities

Vice President Marketing: Must makes sure they have a market segment and strategy in place to support the sales and expanding the company’s market share in the manufacturing of medical instruments for Sweeney Medical Device Inc. The VP of Marketing will provide sales data, market forecast and feedback information from the customer base. Be responsible to provide performance metrics and meet the strategic plan of the company. Will provide sales data to the upper management on a Monthly, Quarterly and Annual basis and will report directly to the President.

Sales: Sells Medical Instruments for company creating a sales plan and forecast to insure the company is gaining a larger part of the market. Continue to grow the business and develop an expert sales force that can increase the sales and grow the business for Sweeney’s Medical Device Inc. Will provide a sales forecast to the various departments and organizations which will enable them to plan and insure resources and material can meet the demand, and provide the best cost to our customers will create and provide performance data that meets their goals, operational commitments and strategic objectives for the company

Product Management: Will purse to create and develop new products based on input from the customer. Will work with various organizations to provide input and create the best quality and innovative products in the medical instrument device market. Will send surveys to customers on our performance, quality and lead times, etc. and publish the information for the company and each organization to review and determine where improvements are needed to gain a greater market share. Improve quality and help in creating new and improved devices. Will develop performance metrics that meet the operational commitment and strategic goals of the company

Customer Service: Will support customer service requests and the expectations of the customer needs and requirements. Provide feedback and document the issues and success for the company to review and make any operational changes that can increase our customer service and quality of product. Customer Service will create performance metrics and establish goals that will meet the operational commitments and strategic goals of the operation. Will pursue to have the best customer service department in the industry.Working closely with various organizations in the company to ensure all customer requirements and objectives are met.

Administration Positions,’ Duties and Responsibilities

Vice President Administration: Vice presidents of administration will be responsible for the proper functioning and developing of an organization. The vice president will work closely to the president of a company in order to fulfill the overall mission of the company. In order to accomplish their work properly, Vice presidents of administration will oversee all aspects of the internal administration of an organizations, Human Resources, Procurement, Public Relations and Communication and support Training and Safety for Sweeney’s Medical Device Inc. The VP will plan short-term and long-term roadmaps for their institution, organize departments, coordinate activities among departments, direct company resources, and provide quality control by measuring and adjusting performance. They also manage and enforce the budgetary constraints of the organization and are directly responsible for day-to-day operations within a corporation. Vice presidents of administration work with fellow management to plan, organize, and direct company’s operations. They supervise all internal departments to ensure quality control, as well as analyze complex corporate documents and interpret them for dissemination to other managers. Will create performance metrics and insure operational and strategic objectives of the company are met

Human Resource: Will work to align the company’s strategic objectives to the HR goals and objectives. Will work closely with each organization to hire and create a great place to work atmosphere for the company. Will create an evaluation system using software and hiring the best candidates for each position in the company. Will follow the SOP’s and insure that the process and procedures are in line with the companies policy’s... Will create performance metrics and goals that meet the operational and strategic objectives of the company.

Procurement: Meet and develop a vendor base that supports the requirements, quality and performance of material to manufacture medical instruments for Sweeney’s Medical Device Inc. The PM will locate vendors working closely with engineering and manufacturing to ensure vendors are qualified sources of supply and will resolve any contract or quality issues with existing suppliers. The PM and its staff will be evaluating supplier base on price, quality, and delivery. The purchasing organization will audit and complete quality reviews with current vendors to insure they meet company manufacturing specifications. Develop performance metrics on how well the organization is meeting it operational, tactical, quality and strategic objectives for the company.

Public Relations and Communication: Will manage all public events and will be the spokesman for the company and strive to create a friendly work environment and build better relationships with the community, providing support for various community organizations that will better the community relations. Will support company’s strategic objectives in the medical instrument industry and create goals and internal objectives for the success of the company.

Outline the basic planning process for the organization, and describes how the three levels of management influence this process.

Sweeney’s Medical Device Inc. will utilize the three levels of three levels of management.to meet the strategic objectives of the company. We will use Top level management which as the Administrative part, the Executive or Middle level management and the third-level management or sometimes called the Supervisory level. Each have their own distinct functions and are critical for the success of the organization to be highly successful. Will have a motivated staff in each organization which will insure we meet the strategic objectives, and goals which must be accomplished, and the resources needed to meet operational; commitments. The top level and mid-level managers will be responsible for monitoring and measuring the performance of the organization in meeting their objectives and goals.

Top level management will be is made up of senior level executives that have the greatest responsibility for establishing company policy and providing clear direction for lower level management. They are listed in the organization chart and are upper management employees. VP positions and the President, They are tasked with setting the overall direction, polices and plans of the organization and need to make sure the objectives of the organization are met. Top level management will be responsible for insuring that the resources are available and they develop strategic plans for the organization. They represent company and are directly responsible to the investors, government and the general public on relevant matters pertaining to the organization. They will be the brains of the organization and will spend most of their time planning and building structure for the organization. Top level management will assign specific tasks to different individuals working in middle management and give them the responsibility for implementing the objectives and goals of the organization.

Middle level management will be used to make the connection and communication link with top level management and low level management. They make sure plans and policies outlined by top level management are communicated to low level management. Their role is to establishing and implementing the activities for their departments which report to the Vice President of each organization listed on the organization chart... We will use Mid-level management oversees and manages several departments, that will identify and hires resources that will meet the objectives and goals created by the Top level management team. They will be in charge of motivating their department Managers to insure they are performing at an acceptable level of performance and meeting organizational goals. My Mid-level management will communicate and provides updated status reports to Top level management on the performance and actions or help needed by their departments. My Mid-level managers are experts of their department and help train and develop their department teams. This management (Mid-level) will instructed and manage low level managers. They support and assist Low level management as required and play a role in the operational plan of their department. In turn they are able to provide valuable feedback to Top-level management, which can improve the organization performance to meet corporate objectives.

Low-Level Management will be considered for Sweeney’s Medical Device Inc. the 1st level of management in an organization that receive direction, goals, and objectives of the organization from the Mid-level management. In Low-level management you will see job tiles that are not currently listed in the high-level view of the organization chart but are listed in the detailed organization charts for each specific organization. Our Low level management roles and responsibilities is to complete the daily activities of the department to achieve Company objectivities, identified by Top Management. Low level management authority will be is limited but they will be encourage to empower the worker to make their own decisions and take on responsibility for the success of their specific organizational tasks. They will also be reinforced by the low level management to be given praise for job well done and bonus are a reward system created by the organization and Human Resource department. The low level management will evaluate the output of work being completed and meeting deadlines. Low level management is responsible for addressing the day to day problems and grievances of the workers. They are responsible for resolving disputes and ensuring corrective actions are taken, including discipline when required. They provide updated progress reports for Mid-level management and are the key resources in providing feedback on the workers performance, morale, etc. If there are any problems or issues the Low level manager is responsible for communicating that information to the Mid-level manager. Low level management plays a key role in the organization making sure the workers have good working conditions and create a supportive work environment. They insure that the environment is safe and they assist the Mid-level management in creating and developing a successful organization of workers that can meet or exceed organizational objectives set by the Top level management. Low level management should have an open door policy to ensure that employees feel free to discuss issues of interest and in some cases recommend improvement in working conditions, etc. This will provide a vehicle for workers to provide feedback on issues or concerns in the organization. Low level management primary responsibility is to insure that the quality or standard of work meets the organization objectives and goals, and that programs are in place to motive the workers.

At Sweeney’s Medical Device Inc. it is very important that our organization has the necessary management structure to meet the day to day problem and issue resolution that is important to ensuring a healthy and motivated work force. The functions of Top Level Management and Low Level Management are vastly different and middle management structure is very important to ensure effective and timely communications on time-sensitive matters, which have to be worked in an effective manner, in order to prevent a costly and difficult problems. Top Management is structured to establish important company initiatives and secure financial resources to meet company objectives, and is not capable to address frequent day to day work related issues that are time consuming and difficult. Our Middle level management is key to the success of a company’s organization because they are involved in the day to day operations. Since they are involved in the daily aspects of the work being completed they have a greater interaction with the workers and Low level management team. This gives them the awareness of the operations and a better understanding of the employee’s needs. They are the represented leaders of the organization that employee’s know and can build trust. We at Sweeney’s Medical Devise Inc. does not want experience a breakdown in communication or misunderstanding of the issues at hand and will strive to hire the best management team possible to help facilitate the daily operations. We will utilize our Middle management team as our experience or content experts of the department and they must play a role in innovation or new perspectives of the business or department, which will result in a more productive and profitable business. And create a great place to work for our employees.

Explain why the quality, productivity, and profitability are important elements in the planning process.

It is important that we as a company must strive to offer the best product and services to create a best in class manufacturing of medical instruments for our customer base. At Sweeney’s Medical Device Inc. we will utilize 5 important factors to help us incorporate Quality, productivity and profitability in our planning process and become the fundamental process in our strategic planning and become a cultural aspect of our company. We must understand the importance of how important our customer service organization works on customer bring satisfaction best in class... Our definition of quality at Sweeney’s Medical Device Inc. is as follows: We must achieve customer satisfaction with excellence and create and develop the best quality and using technology to create the best product in the market at the best price. We will strive to create a zero defect program that will concentrate on quality and will be broad and focused in every aspect of our work, procedures and organizations. Every individual in the company will be devoted to insuring quality and performance in their jobs. To improve quality, productivity and profitability we will train and use the following concepts and new process controls like Lean manufacturing, etc.

We will use the 5 keys to building quality, productivity and profitability.

1. Continuous Improvement philosophy

2. Consistency in everything you do

3. Teamwork as part of the culture

4. Routine Measure and Analysis

5. Training for all

We will use our strong leadership to implement the Continuous Improvement concept and develop a cultural on quality. This will enable us to be competitive and provide affordable products and develop a strong medical company meeting its strategic objectives. We will have the belief at Sweeney’s Medical Device Inc. that is, if we can maintain our quality in our product and assembly line creating a more productive company and achieve cost reductions which will increase our customer satisfaction which will help us increase our market share. We will strive to develop a cultural of Continuous Improvement which will help the company to be competitive and best in class in the industry.

We will make sure that Sweeney’s Medical Device Inc. will use (SOP’s) written procedures for all our operations. Have validation the SOP are established and being followed. The training is understandable of each procedure to insure success with our customers and workforce.

We will create a team approach in each organization and at Sweeney’s Medical Devise Inc. will strive to be best in class and data or measurement and analysis of our operations and our organizations will aid us in understanding what works, what needs to be improve and where help is needed.

We will be known for our training and training and education which will enable our workforce to be best in class and meet the demands and problems that will occur in our pursuit of manufacturing of medical instruments in the industry. This will allow us to meet quality, productivity and profitability for the company. We will communicate effectively with our employees and what our strategic plan is for the future.

Our employees will have the proper training that will allow them meet the requirements and skills to manufacture the best in class medical instruments. Supervision and management need to be trained in the interpersonal skills to understand their workforce, motivate and create an environment that our employees understand and believe that this is a great place to work!

Evaluate the relationship between the human resource planning activities and the overall organizational strategy.

At Sweeney’s Medical Device Inc. how we will incorporate the human resource planning and the overall organizational strategy is that we will take a 3 step concept for our success in this area.

We will utilize the best technology to create the best product, have the finance to support each department and hire the best skilled and talented in the industry. Our overall resource base will be the success of each and every organization of the company.

We at Sweeney’s Medial Device we will use the latest technology to meet our operational and Strategic objectives of the company. Technology if used correctly can enhance the ability of the company to perfume and more effective and efficient manner. Mistake that we cannot make is to have outdated systems, software and manufacturing process that impacts the resource base. This will create chance for more errors, time consuming and may not be able to track performance of the organization. Our technology strategic plan at Sweeney’s Medical Device Inc. will to have a plan will insure we procure the best Technology that meets our mission, vison, values and strategic objectives. When we have the correct technology identified we must work with our team to identify a plan on where to purchase them or build them. Once obtained, we will have the best IT department and resource base to maintain and provide optimum performance.

The next step at Sweeney’s Medical Device Inc. will be able to have the finance or money to meet all our operational, technology HR requirements, and each organization requirements being capital equipment, resources, etc. and have the quality of staff and employees that will allow us to meet these expectations and develop a best in class manufacturing company.

HR department will be able to develop a plan that meets the strategic objectives to have the world’s best employees in the industry. This department will have the resources to develop plans and procedures which will allow the company to requite and pay our employees competitive wages and bonus or incentive programs to keep the expert workforce for years to come. Sweeney’s Medical Device Inc. we do not want to fail in not keep our resources in which we have put time and money in developing these employees. We will create a cultural and environment of a great place to work.

Finally in our, strategic plan the management team will insures that we take care and develop and that we provide training and technology to meet the demands of each and every organization. In organization will work as a team and empower the workforce. We will understand that each resource or organization is independent of each other. The interdependence means that the result of whatever is planned for and acted upon with one resource will have an influence on the plans of another resource. We as a company will make sure we understand this and develop a plan that utilizes the three resources which will enable us to develop a good strategic plan that supports this. The figure below shows a pie chart of the three critical resources. This picture shows that each resource is equal in importance and is connected to each of the other. The outside circles demonstrate that each is driven by its own operational plan which in turn is driven by the organization’s strategic plan which is driven by the organization’s mission and vision.

It doesn’t matter which resource the management team begins to develop first. Each could be developed separately, but before a strategic plan is finalized there needs to be a matching of the requirements of each to the other. Organizational effectiveness is achieved when there is alignment between the technology, finance, and human resource strategic plans, and these plans are focused towards achieving the mission.

Compose the steps of control and types of controls included in the control process for the organization.

At Sweeney’s Medical Device Inc. it must know that when the strategies are set and the operational plans are made, the next task is the critical control function of management. These steps will insure or help that the plans are carried out and have the controls in place. The four-step process, known as control process, consists of developing and using a process that enables the company to document and track performance standards, measuring performance, comparing measured performance to creating values, and taking corrective action.  Establishing performance standards, being the first step, is where an organization sets their standards (rules or basis’ of comparison used to measure capacity, quantity, content, value, cost, quality, or performance).  The second step, measuring performance, is where managers measure actual performance after standards are established, to determine variations from the standard.  Comparing measured performance to established values is the third step in the process, and is where managers compare operations to the standards for that performance, and if deviations exist, the evaluator must decide whether these deviations are significant and require corrective action.  The final step, taking corrective action, is when an employee determines the cause(s) of a significant deviation from a standard, he/she must take corrective action to avoid repetition of the problem or defect (Plunkett, Allen, & Attner, 2013).

Discuss the philosophy of management that will be applied to the management of the organization and how the structure of the organization will foster a positive work environment where employees will be motivated and productive.

Summary

In Summary to really understand how a business will work and survive in this competitive global market we will have to clearly understand the operational plan and how it is critical that we have the skill set and resources available to meet the demands of the company. Every organization plays a key role in meeting the operational, tactical, and most of all the strategic plan. The operational plan should contain a description of the organizational structure, including an organization chart. Human resources are one of the most important resources of a business, and payroll and related costs account for a large part of operational expenditure. In the context of business modelling, the operational plan is a spreadsheet model which includes most operational and capital expenditure items and the quantification of physical items, such as office space, plant and machinery, etc. The operational plan is the main cost driver and must insure that it meets the Strategic plan of the company.

References

Plunkett, W. R., Allen, G. S., & Attner, R.F (2013). Management: Meeting and exceeding customer expectations (10th ed.). Mason, OH : South-Western Cengage Learning.

Friend, G., & Zehle, S. (2004). CHAPTER 13: The operational plan. In , Guide to Business Planning (pp. 137-143).

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Sweeney's Medical Device Inc. Divisional Organizational Structure

PresidentVicePresident FinanceChief AccountantBudget AnalystAccounts Payable Accounts ReceivableVice PresidentAdministrationAuditingHuman ResourcesProcurementRegulatory andLegalVice President ManufacturingManufacturing and Assembly Warehouse ManagementShippingVice President EngineeringResearch & DevelopmentManufacturing of Engineering and DesignMachineShop and FabricationQuality AssuranceVice President MarketingSalesProductManagement Customer Service