The operations plan will highlight the logistics of the organisation such as the various responsibilities of the management team, the tasks assigned to each division within the company, and capital and expense requirements related to the operations of the business. It outlines how a company will run its business and deliver value to the customers. Operations is defined as the processes used to deliver products and services to the marketplace and can include manufacturing, transportation, logistics, customer and technical service.
- Operations strategy – First part should include a brief introduction to the operations section. This can also be a good place to include a more colourful and evocative description of how an entrepreneur will use operations to add value for the customers. Second paragraph should describe how a marketing strategy will be fulfilled using operations. It should include discussions about the process for producing and delivering the product/service, about benefits for customers in the target market, and about coordination with vendors and partners.
- Scope of operations – This part of the business plan describes which operations will be done in-house and which will be subcontracted, and why that makes sense for the business. When writing this part, you should consider the following elements: production, product development, order fulfilment, customer service, warehouse and shipping, tech support, installation, warranty service and repairs. The next paragraph should describe how the company will operate on an ongoing basis. It should identify the key vendors, suppliers, strategic partners, and associates. Based on the sales forecast, estimations about how much production or service capacity is required over the next five years should be made. This is usually expressed as some rate per hour, day, week, month or year.
It is very difficult in the early stages of a new business to operate a just-in-time system. The order quantities are too small for suppliers to produce economically in small batches and deliver to a warehouse every day.