Operation and Management Plan

7/30/2019 Operation and Management Plan

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Table of contents Cover page (1 page)

Title page (1 page)

Letter of transmittal (1 page)

Table of Contents (1 page)

Executive Summary (1 page)

1. Company Overview (1 page) 2. Products and Services (1-2 pages)

3. Industry and Market Analysis (~3 pages)

4. Marketing Plan (~4 pages)

5. Optional - Computer plan . Development Plan (~2 pages)

6 Operations Plan (~2 pages)

7. Management Plan (~1 page)

8. Financial Plan (~3 pages)

Funding (1 page)

Appendices (no more than 15 pages)


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6. Operations Plan (~2 pages)

Operations is defined as the processes used to deliver your productsand services to the marketplace and can include manufacturing,outsourcing, transportation, logistics, customer and technical service

6.1 Stake holders -Identify the key vendors, suppliers, strategic

partners, and associates. What arrangements have you discussedwith them? What price agreements have you reached?

6.2 location -Where will you be located? Why this particular location? 6.2.1 Facility What type of facility is required: size, type of space (office,

customer service, development, laboratories, production, warehouse andshipping).

6.2.2 lay out -Provide a layout of the production or service process. How will

your product/service flow through the facility? 6.2.3 Cost: Estimate your occupation expenses, including rent, but alsoincluding maintenance, utilities, insurance, and initial remodeling costs tomake the space suit your needs. These numbers will become part of yourfinancial plan.

6.2.4 What will be yourbusiness hours?


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6 Operations

6.3 Inventory What kind of inventory will you keep: raw materials, supplies, finished goods?

Based on your sales forecast, estimate how much production or service capacity is required overthe next five years. This is usually expressed as some rate per hour, day, week, month or year.For example, 100 lighting fixtures per month or 150 meals per day for a restaurant. Average valuein stock (i.e., what is your inventory investment)?

Seasonal buildups? Lead-time for ordering?

6.4 Machinery What capital assets do you require? Describe the major items (equipment, vehicles, buildings,

fixtures, decorations, computers and software, etc.) and how much each will cost. Will you leaseor purchase?

Determine your manpower requirements to produce and deliver the product/service. What typesof employees are needed (skilled, technical, supervisory, manual, etc.)? How much will you paythem?

6.5 Legal Environment Licensing and bonding requirements ,Permits

Health, workplace, or environmental regulations

Insurance coverage

Trademarks, copyrights, or patents (pending, existing, or purchased)


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6 Operations

6.6 Operations Strategy Describe the process for producing and delivering your product/service. Withpicture

How will you use operations to add value for customers in your targetmarket?

Which dimensions will you stress and which will you de-emphasize?

Can you use extranets to provide coordination with vendors and strategic partners?

Does your process or way of doing business give you a competitive advantage

6.7 Scope of Operations Describe which operations you will do in-house and which you will subcontract.

Why does this make sense for your business?. Consider the following: Production

Product development

Order fulfillment Customer service

Warehouse and shipping

Tech support

Installation

Warranty service and repairs


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Flow chart


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Value chain analysis


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For Service organization


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8. Management plan

Show an organizational chart, which indicates lines of authority, names ofpeople currently filling positions, and positions to be filled.

Describe the duties and responsibilities of each key member of themanagement team. Include a resume to show their experience andeducation. Show their current compensation, current share of ownership,

stock options, pension plan and other benefits. Identify weaknesses of the management team. Discuss the availability of

individuals with the necessary skills to overcome these weaknesses.

Identify members of the Board of Directors. Discuss the skills and inputthey provide to the company. Disclose any investment that they have inthe company.

Identify, if any, the professional service organizations you have selectedfor accounting, legal, advertising, public relations, banking and any otherservices.


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Executive Summary (1 page)

Write this section last.

Make it two pages or fewer.

Include everything that you would cover in a five-minute interview.

Its objective is to capture the readers interest, so that they want to read theentire plan; even better to call you to arrange a meeting. It should be

considered a chance to sell the reader on the business opportunity. Explain the fundamentals of the proposed business: What will your product

be? Who will your customers be? Who are the owners? What do you think thefuture holds for your business and your industry?

Make it enthusiastic, professional, complete, and concise.

If applying for a loan, state clearly how much you want, precisely how you are

going to use it, and how the money will make your business more profitable,thereby ensuring repayment.

Th h ld dd h


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The summary should address the

following elements of the plan: Concept Description Summarize the essence of your business.

OpportunityWhy is this a good opportunity? What evidence do you have to supportthe demand? What is the size of your market? What are the critical trends? What isthe compelling need, i.e. what problems are you solving?

Product/Service Describe the product or service. How will you differentiate it fromthe competition? How is the product or service to be produced and delivered?

Value PropositionWho is the target market? What are benefits to the target market?

Marketing StrategyWhat are the key elements of your marketing strategy? Competitive AdvantageWho is the competition? What is your competitive

advantage?

Management:Who is the management team and why will they make a success ofthe venture?

Financial How large will the company become, i.e. what revenues will be achieved inyear 3 or 4? What is the expected profitability? When will the company breakeven?

Funding How much funding is required? What will it be used for? What is theoffering? What is the exit strategy?

Operation and Management Plan

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