What is an OPERATIONAL PLAN ? Operational Planning for OPERATIONS MANAGERS🥷🏻

#operationalplan #businessplan #operationaldecision #workplan
What is an #operational Plan - Business Plan #strategies for any Operations Manager - Business Work Plan - Business Planning
Any savvy Operations Manager out there knows that turning input into output in a way that exceeds projected results is impossible without a solid operational plan anchored in flexible strategies and solid tactics.
Lesson Summary:
An operational plan is also known as a work plan that describes the physical necessities of your business's operation, such as your business's physical location, facilities, and equipment. Depending on what kind of business you'll be operating, it may also include information about inventory requirements, suppliers, and a description of the manufacturing process. In other words, throughout such a plan we aim the better prepare our input in such a way that the output generated will meet the existing demand.
No operational decisions are an easy task especially since they may be of huge impact on the success of a business and are usually influenced by:
#1) Marketing - if an operations manager cannot rely on a solid sales forecast and on an accurate market research plan, then it might be extremely hard to match the company`s output level with the demand level, keep the inventory level under control, reduce waste in case of products that are perishable, have and maintain an appropriate level of staff continuously employed or produce the right product that will serve the customers needs. If demand or trend changes from what we have initially forecasted then we are in great need of operational flexibility. Operational flexibility represents the ability of a business to keep up with the changes in demand by either adjusting its level of production or its product portfolio. We may reach operational flexibility by:
- increasing our capacity to produce (new buildings, machinery etc.)
- afford to keep high levels of stocks (not really applicable to perishable goods)
- adapt our labor force (skills and availability)
- flexible production equipment
#2) Resources - the availability or scarcity of resources required in order to produce will influence our decisions regarding the location of our business, whether we are going to become labor-intensive or capital-intensive and if it is possible to rely or not on advanced technology in our production process.
#3) Technology - the ability to introduce technological innovations such as CAD (computer-aided design) and CAM (computer-aided manufacturing) can significantly change the way in better, regarding how we run our business. CAD involves the use of computer programs in order to design physical products. It helps with determining better the optimum shape, quality, and size of our future product saving us time and money. CAM involves using specific computer software in order to control the machinery involved in the production process. Both technological innovations involve some upfront costs in terms of hardware, software, and employee training but it will translate into a better ROI. Our operational plan should also focus on process innovation. Process innovation involves the use of new and improved production and delivery methods. It attracts cheaper production methods and with the help of innovation can even make the business much more competitive.
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[@cameliabuta4624]

Thanks for sharing your knowledge with us!

[@DariusATent]

Thank you! Glad I could help!

[@pullzthestringz]

You are an amazing business teacher.Thank you

[@DariusATent]

Thank you for this feedback. Glad to know that I can help. Keep on investing in your education...it will bring amazing returns in time!

[@Ram_Chandra1997]

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Thanks

[@DariusATent]

Appreciate the endorsement RJ. Glad I could help!

[@vicky-ds4iw]

Thankyou,for simple explanations,i hope you,can explan how create a key operational plan for insurance broker agency.

[@mihaipatrus4416]

Great Video!!!

[@DariusATent]

Hope I managed to help! Good luck with your Business exam!