Operations Objectives
ESTABLISH OPERATIONS/PRODUCTION OBJECTIVES Operations objectives are expressed in terms of (1) the number of units to be produced; (2) production costs; (3) product or service enhancements; (4) capacity; and (5) changes to the process, such as tightening quality control or streamlining stages. Operations objectives are in part set using marketing and sales objectives established in the marketing plan. Likewise, they are determined by the product and price strategy (chapter 5) and seasonality (this chapter.) Rationale: Operations or production objectives direct the operations and ensure that is it moving toward the achievement of the overall business and social goals of the enterprise.
Setting Operations Objectives ▲ Set "SMART" operations objectives (refer to Chapter 2).
Chapter 6
Business manager, production manager, PO business advisor, marketing manager, partner program manager, production staff, finance manager
▲ At least one production/operations target should be a numeric target projecting units to be produced or rendered, corresponding to the marketing plan, and costs associated with it. Production/operations objectives are included in the Business Plan.
EXHIBIT 6K: PRODUCTION PLAN OBJECTIVES
FOR
TARTINA ENTERPRISE
4Standardize product 4Improve quality control 4Make necessary changes to respond in a timely manner to consumers' changing demands
4Reduce transformation costs to meet profit margin objectives noted in marketing plan
4Build clients’ capacity to manage and implement transformation process 4Produce 62,500 units for a total cost of U.S. $45,974
A Business Planning Reference Guide for Social Enterprises
The Operations Plan
▲ Refer to the TARTINA example (exhibit 6K) for assistance or inspiration.
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Copyright ©2000 Sutia Kim Alter. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 License (http://creativecommons.org/licenses/by-sa/3.0/)