Operational Plan Goals and Objectives

Question: Discuss about the Operational Plan for Goals and Objectives. Answer: The strategic plan is all about identifying the goals and objectives and determining a range of strategies to pursue so that the organization will achieve its goals. Here the given company has already set out the strategic plan for the purpose of establishing the operational plan. Based on the resources of the organization, the company will develop their suitable operational plan for the specified period (Arora, 2016). This will ensure the seamless operation for the long period. Therefore, the operational plan shall contain within the strategic plan and allocate resources, set a timeline along with stipulating performance indicator. Measurement: The sufficient resources are required for manufacturing luxury goods. The company needs to allocate human resource and financial resource which needs to incorporate in the operational strategy. Measurement of Human Resource: Before employing the human resource, the company needs to measure the skill and capabilities of employees. For example, marketing manager of the company should be capable to manage and motivate a team. Secondly, the job role and responsibilities of the employed people need to be specified. For instance, the production manager will be responsible for maintaining production capacity or increase the proportion of the production capacity. Financial measure: On the other hand, the financial resources must be measured to manufacture the product sensibly. Strategically, the employer shall be the preferable choice for highly skilled people. Therefore, there will be financial resources needs for remuneration. Furthermore, the company should measure the administration costs in the form of Printing and stationery expenses Telephone Rent of the operational premises Research and development The company needs to strategies for purchasing equipments, raw material for luxury goods, promotional costs such as advertisement. Manufacturing process measurement: In the operational plan, the company needs to use certain tools and techniques for ensuring the smooth flow of operation (Issar Navon, 2016). In that case the company requires to measure costs per unit production, completion activity ratio of each employees Responsible Person: As the manufacturing unit, the luxury goods manufacturing company shall employ people for manufacturing, marketing, sales, HR, and administrative. Assigned people with different job profile needs to be responsible for specified job profiles. Therefore, the operational efficiencies of the company will be depends on excellence provided by the each employee. Divisions of the luxury goods company Job designation (profile) Job Responsibilities Marketing General manager (manufacturing) Increase management efficiencies by employing, orienting, training, monitoring and disciplining Providing quality service by maintaining standards of the company and accountability Maintain relationship with employees though strong communication skill Develop combined skill and encourage good team efforts to ensure operational excellence. Keep a close look at production completion and send it to the sales department Finance Finance Executive Maintain job responsibilities regarding the financial records and provide information Budget development Assess financial risk management plan to reduce the financial risks Fund resource planning and record day to day financial transactions Sales General Manager (Sales) Set individual sales target with sales team Monitor the achievement of objective of sales Evaluate performance of sales staff Co-ordinate sales action plans with individual sales executives of the company Negotiation with vendors and delivery final luxury goods Administration Senior Executives (Admin) Maintain administrative discipline Arrange meeting and client negotiation Implementing costs reduction and developing report procedures Develop administration staff by providing experimental growth opportunities, information and training Maintain supply inventory by check stock to determine level of inventory HRM HR executive Staffing peoples as per required by the management Handling recruitment related negotiations with the candidates Keep record the employee database on regular basis Resolving issues related to HRM Maintain discipline at office premises and ensure a good environment (Source: Created by author) Timelines: The implementation of any strategy requires a timeline which is all about time period during which work is executed to achieve the desired outcome. This timelines can be short as a day or it can be several months. The given company is scheduling their activities for 7 days. To accomplish one manufacturing process, the company need seven days time span. Operational Activities 1-2 days 3 days 4-5 days 6-7 days Arranging resources (operational, finance and human resource) Production planning Collection of raw material for producing the luxury goods Start manufacturing Sales and Distribution Collection of revenue Budget (Operational budget): Direct Material Budget Particular FY 2016 Budget production unit 1000 Material required per unit 3.5 Material needs for production 3500 Plus: desired ending Inventory 450 Total material required 3950 less: beginning inventory 3500 Material Unit purchased 7450 Material Cost per Unit 12 Total costs of direct materials 89400 (Source: Created by author) Note: Amount in $ Manufacturing Overhead Budget Particulars FY 2016 Unit to be produced 1000 Variable Overhead Costs $ Indirect material ($4 per unit) 4000 Indirect labor ($3 per unit) 3000 Other ($5 per unit) 5000 Total Variable Overhead Costs 12000 Fixed Overhead Costs Depreciation 10000 Salary (High skilled employees) 5000 Rent 2400 Total Fixed Overhead costs 17400 Total Overhead Costs 29400 Deduct depreciation -10000 Cash payment for Overhead 19400 Manufacturing per unit 19.4 (Source: created by author) Note: Amount in $ References: Arora, R. (2016). Changing Dynamics of a Manufacturing Unit. Performance Improvement, 55(1), 23-35. Issar, G., Navon, L. R. (2016). Manufacturing Overhead (MOH) and Departmental Expense Control. In Operational Excellence (pp. 91-93). Springer International Publishing.