Operational Resource Planning making it happen Operations Good

Operational & Resource Planning “making it happen !!”

Operations Good 1 A Service 1 B C Your Venture Good 2 D Various Inputs Service 2 Conversion Various Outputs

Operations Good 1 Material - fixed Materialconsumable Service 1 Your Venture Technology resources Human resources Various Inputs Good 2 Financial Resources Service 2 Conversion Various Outputs

Material Resources - Fixed � These are the resources that would be considered in the category of “Plant and Equipment” � These are the “tangible” things that you will need to run your business � Known as “Fixed Assets” in accounting terms

Material Resources - Fixed Questions that need to be asked � What tools and equipment will I need? � Where will your venture be located? � Can you operate without a “bricks & mortar” facility? � How much space will you require? � Buy or rent? � Will you manufacture products yourself? � Will you contract out manufacturing?

Material Resources - Consumable � These are the resources that you are going to use up or “consume” through the regular workings of your venture � These resources don’t add value to your company, but your company can’t run without them � Known as “expenses” in accounting terms

Material Resources - Consumable Questions that need to be asked � What sources of raw materials will you use? � How much will these materials cost? � How often will suppliers deliver materials � What return and refund policies do suppliers offer? � What other routine costs are involved?

Technological Resources � These resources refer to actual technology that will be used to either produce your product or make your company more efficient � This can be a sub-category of the fixed resources

Technological Resources Questions that need to be asked � What types of technology will you use? � Computer, Mechanical, Chemical, Other � How much will these technologies cost? � Who will supply the technology? � What is involved in maintaining / improving these technologies? � What other routine costs are involved? � What technologies are your competitors using?

Human Resources � These refer to the actual people that will be working for your venture � They do not have to be actual employees, although many will be � Can also refer to mentors and advisors, outside professionals, associates and partners, business development centres, etc. � “Two heads are better than one, three are better than two”

Human Resources Questions that need to be asked � What skills do you need to operate your business? � What skills do you need to hire permanent staff for? � What skills can be supplied by part-time staff? � What skills can be supplied by contracted services/vendors?

Contingency Planning � What If ? � Have a back-up plan or two for specific events if highly probable � Overall, plan for three scenarios: ◦ Realistic case (most likely) ◦ Optimistic (Best) case ◦ Pessimistic (Worst) case

Operating Strategy � Human � Who Resources: will do each job? � How will work be supervised? � How will people work together?

Operating Strategy � Fixed Materials (Capital Resources) � What will facility be like? � How will production process be organized? � Consumable Materials � How will supplies be ordered and organized?

Operating Strategy � Management � What records must be kept and who will keep them? � How will the venture keep costs to a minimum? � What rules and regulations apply to this venture? � What environmental regulations apply? (a “GREEN” plan)

GAP Analysis � Shows difference between what is already in place and what should ideally be in place � Good venture plans should show GAPS and the plans to fill or bridge them.