OPERATIONS PLAN

THE OPERATIONS PLAN

States the details in operating the business.
 A strong operations plan should have the
4 operational aspects

METHODS

4Ms of MANPOWER
Operations:
MACHINES

MATERIALS
 Methods
4 Ms -The processes to be followed in effectively manufacturing or
delivering a product or service.
-The methods aspect represent day-to-day operations of a
business.

Manpower
-One of the highest costs of operating a business but is also the
most instrumental to its success.
-The entrepreneur will need the expertise of qualified employees
that can handle operational functions.

Machines
-The bestfriend of manpower in producing goods & offering services.
-Machines are not only limited to physical equipment but can also
pertain to new technologies that help business operations become
standardized and seamless.

Materials
(1) Manufacture own products
(2) Outsource
(3) Purchase own P.S from present suppliers
 Methods
4 Ms -The processes to be followed in effectively manufacturing or
delivering a product or service.
-The methods aspect represent day-to-day operations of a
business.

Manpower
-One of the highest costs of operating a business but is also the
most instrumental to its success.
-The entrepreneur will need the expertise of qualified employees
that can handle operational functions.

Machines
-The bestfriend of manpower in producing goods & offering services.
-Machines are not only limited to physical equipment but can also
pertain to new technologies that help business operations become
standardized and seamless.

Materials
(1) Manufacture own products
(2) Outsource
(3) Purchase own P.S from present suppliers
METHODS:
1. Manufacturing of Goods
2. Service Delivery Process
3. Distribution Method
4. Payment Process
 Methods
4 Ms -The processes to be followed in effectively manufacturing or
delivering a product or service.
-The methods aspect represent day-to-day operations of a
business.

Manpower
-One of the highest costs of operating a business but is also the
most instrumental to its success.
-The entrepreneur will need the expertise of qualified employees
that can handle operational functions.

Machines
-The bestfriend of manpower in producing goods & offering services.
-Machines are not only limited to physical equipment but can also
pertain to new technologies that help business operations become
standardized and seamless.

Materials
(1) Manufacture own products
(2) Outsource
(3) Purchase own P.S from present suppliers
MANPOWER:
1. Job Description
2. Employee Qualification
3. Preparatory Selection of Job Applicants
4. Selection of Job Applicants
5. Job Offer
6. Employee Development
 Methods
4 Ms -The processes to be followed in effectively manufacturing or
delivering a product or service.
-The methods aspect represent day-to-day operations of a
business.

Manpower
-One of the highest costs of operating a business but is also the
most instrumental to its success.
-The entrepreneur will need the expertise of qualified employees
that can handle operational functions.

Machines
-The bestfriend of manpower in producing goods & offering services.
-Machines are not only limited to physical equipment but can also
pertain to new technologies that help business operations become
standardized and seamless.

Materials
(1) Manufacture own products
(2) Outsource
(3) Purchase own P.S from present suppliers
MACHINES:
1. Equipment and other facilities
2. Telecommunications and Information Technology
 Methods
4 Ms -The processes to be followed in effectively manufacturing or
delivering a product or service.
-The methods aspect represent day-to-day operations of a
business.

Manpower
-One of the highest costs of operating a business but is also the
most instrumental to its success.
-The entrepreneur will need the expertise of qualified employees
that can handle operational functions.

Machines
-The bestfriend of manpower in producing goods & offering services.
-Machines are not only limited to physical equipment but can also
pertain to new technologies that help business operations become
standardized and seamless.

Materials
(1) Manufacture own products
(2) Outsource
(3) Purchase own P/S from present suppliers
MATERIALS:
MATERIALS:
Example:
Cupcake Flower Bouquet
Operations Plan Outline:
Operational Objectives
Operating Cycle
A. Pre-operational Process
B. Production Process
C. Selling Process
D. Service Delivery and Payment Process
E. Post Operational Process
Recruitment
A. Guidelines and Advertising
B. Job Description
C. Employee Qualification
D. Retaining and Rewarding
 TAKE OUT/OPEN
YOUR COPY OF THE
SAMPLE
OPERATIONS PLAN
OPERATIONAL
OBJECTIVES
Short-term goal whose attainment moves
an organization towards achieving its
strategic or long-term goals.
Also called tactical objective.
Operational Objectives:
Example:
Operation Objectives
The proponents aim to be a quality-oriented business through the following
objectives: provide customers with excellent service in terms of quality flavored, crispy
camote chips, enthusiastic crew members and attractive camote chips packaging.

QDP
Quality: Yam Yum offers crispy and tasty chips that come in a variety of flavors such
as cheese, barbeque and sugar.

Delivery: Yam Yum chips will be sold through a bicycle driven cart that will be
stationed in the target area available from morning up to the afternoon.

Price: Yam Yum chips will be sold at 10.00 thats within the target markets budget.

Conclusion: Funtrip Food Product offers crispy and tasty chips that come in cheese,
barbeque, and sugar flavors and it will be sold from 9am-5pm through a bicycle driven
cart.
OPERATING CYCLE
Operating Cycle
Operating Cycle (the operations of the company discussed briefly)

Pre-operational Process (set of activities done before the main production output.
The opening of the store, cleaning of the production area, and the utensils to be
used for the production process. It also includes the inventory process, wherein
the ingredients to be used for the day of production are deducted, recorded and
removed in the storage area.)
Production Process (Manufacturing of Goods) is the method of transforming input
to the desired output.
Selling Process (Distribution Method) the way of distributing the product to reach
its final consumer.
Service Delivery and Payment Process - process conducted by employee or
seller during transactions (from greeting the customers, getting the orders,
handing the orders, getting payment, saying thank you to customers)
Post Operational Process -processes done before closing the production location.
Activities such as ending inventory for the day and the cleaning of production
location.
What is a Flowchart
A flowchart is a picture of the
separate steps of a process in
sequential order.

Elements that may be included

are: sequence of actions,
materials or services entering or
leaving the process (inputs and
outputs), decisions that must be
made, people who become
involved, time involved at each
step and/or process
measurements.
When to Use a Flowchart
To develop understanding of how a process is done.
To study a process for improvement.
To communicate to others how a process is done.
When better communication is needed between people
involved with the same process.
To document a process.
When planning a project.
Flowchart Basic Procedure
i. Define the process to be diagrammed. Write its title at the top of the
work surface.

ii. Discuss and decide on the boundaries of your process: Where or when
does the process start? Where or when does it end? Discuss and
decide on the level of detail to be included in the diagram.

iii. Brainstorm the activities that take place. Arrange the activities in proper
sequence.

iv. When all activities are included and everyone agrees that the sequence
is correct, draw arrows to show the flow of the process.

v. Review the flowchart with others involved in the process (workers,

supervisors, suppliers, customers) to see if they agree that the process
is drawn accurately.
Commonly Used Symbols in Detailed Flowcharts
1. One step in the process; the step
is written inside the box. Usually,
only one arrow goes out of the
box.
2. Direction of flow from one step
or decision to another.
3. Decision based on a question.
The question is written in the
diamond. More than one arrow
goes out of the diamond, each
one showing the direction the
process takes for a given answer
to the question. (Often the
answers are yes and
no.)
4. Link to another page or another
flowchart. The same symbol on
the other page indicates that the
flow continues there.
5. Alternate symbols for start and
end points
Example 1 Example 2
Sample Format:
Materials Equipment Time
Plain shirt Computer 10 minutes
(Photoshop)

T-Shirt Printing
Machine

Note:
*Suggested format is not applicable for all parts of
the Operating Cycle (see sample operations plan)
Operations Plan Outline:
A. Operational Objectives
B. Operating Cycle
Pre-operational Process
Production Process
Selling Process
Service Delivery and Payment Process
Post Operational Process
C. Recruitment
Guidelines and Advertising
Job Description
Employee Qualification
Retaining and Rewarding
RECRUITMENT
(Optional)
 Guidelines Advertising

Example: Example:

Guidelines on recruitment of Recruitment can take in many

employees: forms, subject only to the budget
- A genuine liking for people and a high degree set by the management.
of empathy
- Very good communication skills - Newspaper or any publication advertising
- Ability to keep on going regardless of the - Hanging signboard
difficulties he or she encounters
- Online Advertising
- Self-motivated and goal-oriented and must
- Employment agencies
have a high self-esteem
- Flexible, and are able to work as part of a
team
- Have a great knowledge and intelligence of
the product
- Have the necessary knowledge, skill and
abilities to perform a specific job
- Should have an experience in terms of
cooking
 Job Description:
Enumerates the duties & responsibilities of the potential
employee, including the scope, limitations, and terms &
conditions of employment.

Job Title Compensation Work Schedule Duties

& benefits
Ex: Marketing Write here the Write here the specific Describe the job
Staff potential salary days and working hours that the
& benefits that of the potential employee. employee will
the employee assume with
will get. allowance for
flexibility.
 Employee Qualification:
1. Educational background this gives the entrepreneur
an idea on the degree of the candidates knowledge of
basic things.
2. Work experience this will tell him/her what to expect
from the applicant and what he/she can potentially
contribute to the business based on his/her past positions
& experiences.
3. Specific skill or knowledge this one is important
especially on technical jobs that require high proficiency.
(ex: engineers, accountant, IT specialists, etc.)
4. Work attitude this deals with the workers integrity and
how he/she deals with his coworkers, bosses, and
customers.
 Employee Qualification:
Example:
Position Educational Background and
Specific Skills/Knowledge
Fast food crew High School graduate
Physically fit, pleasing personality,
customer-service oriented
Baker At least a high school graduate and
with TESDA certification
Physically fit, efficient, and fast
worker
Operations manager Preferably has a degree in Business
for a retail store Administration major in Operations
Management; having a Masters
Degree in Business Administration is
a plus
Work Experience
Worked with fast food
chain or restaurant;
those without
experience are still
qualified as training will
be provided.
Worked as a baker
before.
Worked as a member of
operations staff or as an
operations manager in
any industry.
 Retaining and rewarding
Example:
FINANCIAL PLAN
What is a Financial Plan?
The portion of the business plan that speaks of the
product or service performance.

Provides financial data to the entrepreneur.

Basis for decisions on financial matters.

o To offer credit terms to customers,
o Apply for a bank loan,
o Expand,
o Or sell the business.
Financial Plan Outline:
Financial Objectives
Sources of Financing
Income Statement
Balance Sheet
Cash Flow Statement
FINANCIAL OBJECTIVES
An objective set by a company in which the target
state is measured in monetary terms, such as a
certain amount of profits, or a certain percentage
increase in profits over a period of time.
 FINANCIAL OBJECTIVES:
Key Terms: Example:

Profitability To exceed target sales per

month
Cost minimisation To reduce cost in the wastage of
materials
Sources of Financing:
How much is the initial capital?
Government applications and permits (DTI, business permit, etc)
Purchase of equipment
One month supply of production of goods/services (Inventory)
Operation expenses

Who will fund the initial capital?

If partners/owners how much is the equal contribution for each
individual?
Bank or other financial institution
Preoperating capital
Resources one needs to prepare for the setting up of the
business
Taxes and licenses
Feasibility studies and research costs,
consultation fees
Utility deposits
Other prepaid expenses
Fixed capital
Refers to the fixed assets that one should acquire before
one sets up shop
Land fixtures and, building, furniture and fixtures, office
equipment and machinery
Initial working capital
Reserve money one needs to get started before one
profits from his or her sales
Cost of raw materials, labor, other operating expenses
during first few months of operations.