Create an operation plan

What is the operation plan?

Describes the details organization's daily operations for one year. It states what each person does and when it is done, and how it is done.

Operation plans define how you allocate human, physical, and financial resources and how to prepare the process layout that models how the labor activities flow to produce products or services?(Taylor, 2016).

Why Operation Plan is Important?

An operation plan is a guide to translate business strategy and organization objectives to real actions to ensure that it will be achieved.

How to Create an Operation plan?

The operation plan can include the following sections:-

Introduction Section

contain small brief about the organization's business strategy and the business objectives that need to be achieved during these years.

Background Section

Briefly contain any background history that will contain facts that can be used to build an operation plan.

Section to contain Key operations

contain set of activity groups included in the production process, the activities will differ based on business type and business model.

The activity group may include: -

???????i.???????????Core production activities

??????ii.???????????Locating facility activities

????iii.???????????Labor planning activities

????iv.???????????Capacity planning activities

??????v.???????????Layout planning activities

????vi.???????????Job Design

??vii.???????????IT planning activities

Section to contain operations models

Specify the transformation model that will explain how to transfer inputs to valuable output.

Model Samples

·????????Transformation Model

·????????Lean Transformation Model

·????????Six Sigma

·????????Lean Six Sigma

Key operations-critical reviews Section

Include process controls to periodically monitor and review operations to find any problems and bottlenecks and try to find a way to optimize performance.

Resource allocation

Resource allocation plan assigns responsibility for organization strategies Asset assignment is the method of doing out and overseeing resources in a way that bolsters an organization's vital objectives. Asset allocation incorporates overseeing substantial assets such as hardware to create the leading utilize of milder resources such as human capital.

We can allocate resources responsible for each strategy like below

Cost plan

The cost plan will cover the part of how to budget operations with enough funds and also will drill to make a cash management plan this will lead to having efficient cash projection to ensure that operations in the organization will not stop because of a leak in cash.

Annual budget Sample

Cash Management Plan

Cash is the essential resource people and companies utilize frequently to settle their working costs. Cash is utilized as speculation capital to be designated to long-term resources, such as property, human resources, equipment, and other organization operations. For individuals, maintaining cash equalizations is additionally a major concern. As per (William Shisamba, 2019) Cash management is to manage cash inflows in the recurring period it can be daily, weekly or monthly.

Time plan

The time plan in this stage will be sited as general millstones that can be used in a later stage to make a detailed plan for each millstone.

Performance measure plan

A list of KPIs used to measure and focus on company strategies and operational improvement, to measure it was required to have an analytical platform for decision-making and help focus attention on what matters most?(kpi.org, n.d.). Performance indicators are much important to keep eye track of work performance.

References

kpi.org. (n.d.). What is a Key Performance Indicator (KPI). Retrieved from https://kpi.org/: https://kpi.org/KPI-Basics

Taylor, R. &. (2016). Operations and Supply Chain Management, 9th Edition. Wiley (December 1, 2016).

William Shisamba, D. M. (2019). Plan to Budget and Cash Management in Uasin Gishu County Government, Kenya. Research Journal of Finance and Accounting, 9.

?