ASSIGNMENT 3 PART 1 1
Assignment3 Part 1
HighSchool
Contents
Operations Plan 3
Key Aspects of Operations 3
Cost and Time Efficiencies 4
Competitive Advantages 4
Problems Addressed and Overcome 5
Technology Plan 5
Software Needs 5
Hardware Needs 7
Telecommunication Needs 7
Personnel Needs 7
Management Plan 8
Key Management and Employees 8
Board Members and Advisors 8
Management Structure and Style 9
Organogram 10
References 11
Operations PlanKey Aspects of Operations
NAB Company hasvarious facilities comprising mainly of the business premises. Otheramenities include utilities such as electricity, gas, andwater/sewerage system. A trash removal and disposal system will alsobe installed to eliminate any wastes from the company facilities. Theproduction process will include the raw materials, processingmachinery, and storage units. First, raw materials will need to bethoroughly cleaned so as to get rid of any impurities that maycontaminate the final product. Also, the processing chambers will becleaned and regularly maintained to ensure adherence to qualitycontrol measures (Rothaermel, 2015). The mixers will be maintained atparticular temperatures that favor the processing of the company’sbeverages. Finished products will be refined and submitted to randomquality checks before being packaged into bottles. Besides, randombottled drinks will be evaluated to check for safety regardingpressure specifications. The company will aim to reach a peakcapacity of 500 bottles per day.
Some of the equipment includes two mixer beverage filling machinescapable of mixing up to 200 gallons each. Also, the company has twoAccutek AccuSnap Capper bottling machines that cap bottles after theyare filled with beverages. Four vehicles in the form of used panelvans are used to run company errands. The company also uses threeApple Macintosh companies with graphic software for brandingpurposes. Leased equipment includes printers and labeling machinery.Furthermore, the company has 24,000 units each of glass bottles,metal caps, and labels. The business will begin operations with asmall labor force of six persons. Members of this workforce includethe full-time CEO/President, part-time computer expert/assistant, anda NAB creator and master mixer. Also, a salaried consultant andanother volunteer will be used to kick-start the operations of thebeverage company. In the future, the company will enlist the servicesof a production line foreman, projection line personnel, andmaintenance workforce.
Cost and Time Efficiencies
The company willpurchase all its facilities as opposed to outsourcing production toan established company. The transition from a small prototype to alarge-scale producer will require investment in various types ofequipment. The two mixer filling machines cost $28,500 each for atotal of $57,000. The two bottling machines would cost $9,600 eachfor a total cost of $19,200. The four vehicles worth $10,000 eachwould cost a total of $40,000. The three computers would cost a totalof $3,600 while the graphic software would cost $750. Labelingmachinery and printers would have monthly charges of $450 and $550respectively. Inventory such as glass bottles, labels, and metal capswill be obtained in bulk quantities from local manufacturers of theseitems. The company will track available inventory so as to ensure aturnaround time of three days after an order is received.
Competitive Advantages
The company’scompetitive advantage would be manifested through price leadershipand extensive distribution. The prices set by established beveragecompanies would be used as a benchmark that guides NAB’s prices. Inthis manner, each beverage would be priced at a slightly lower pricein comparison to existing equivalents. The company will also pursueextensive distribution strategies so as to gain popularity among thebuyer networks. The distribution method used will focus on areas thathave the highest populations of working class citizens. Trucks willbe used to distribute the beverages to depots located at strategiclocations. The company will also pursue extensive research anddevelopment activities so as to examine new methods of cheaper andfaster production (Lynch, 2015). In this regard, NAB Company willsubscribe to industry magazines and periodicals so as to keep abreastof new developments. The company will explore the success of fruitbeverages once the flagship product has been introduced into themarket.
Problems Addressed and Overcome
Inevitably, thecompany anticipates facing the problem of intense competition fromestablished companies. Such a challenge would be overcome byimplementing product differentiation strategies. Providingdifferentiated beverages in terms of content and packaging can helpthe company to set itself apart from its competitors (Lynch, 2015).Also, potential problems may arise in acquiring reputabledistributors that can focus their efforts on the company’s productsand clients. The company would address this problem by offeringbonuses and commissions to distributors based on the number ofcompleted deliveries (Lynch, 2015). Any problems with delays inproduction will be addressed by having double shifts so as to bridgethe gap in capacities.
Technology PlanSoftware Needs
NAB Company willuse an array of software technologies to fulfill various functions.Appropriate software will be used to manage the company’spersonnel. The qualifications, work experience, and salary levels ofall employees would be fed into the system. Also, a listing of alljob titles in the company will be provided along with the workdescription for each post. The qualifications of individual employeeswill be matched with the job requirements (Khan, 2014). Also, thedeliverables imposed on each employee will be monitored so as totrack their productivity and reliability.
The company willalso use software technologies to take, fulfill, and track orders. Anonline interphase will allow regional heads and large client groupsto place direct orders with the companies. Depot managers will betasked with monitoring the available supply of beverages so as tonotify the company in the case of shortfalls. The company will thenevaluate the orders and establish a timeline for producing aparticular number of products based on the requirements. The systemwill then conduct regular checks to ensure that the targets areattained until the full batch is complete (Khan, 2014). Theon-premise software should also monitor the level of inventory so asto ensure that company supplies are regularly restocked. Depletion ofany inventory will halt the entire production process and causemassive losses and wastage of product (Relph & Miller, 2015).Therefore, the available software would be tuned in a manner thatsends distress signals whenever some supplies are depleted beyondcertain levels.
Communicationwith customers will also be channeled through the on-premisesoftware. The online interphase should offer standard replies to anycustomers that place orders with the company. Besides, some employeeswill be put on standby so as to provide customer service to anyclients seeking to inquire on the status of their orders. Suchworkers will have system access to the progress of orders so as to behelpful to the clients (Khan, 2014). Also, the company should usesoftware technologies to control the production of beverages. Thefinal products have to be produced in adherence to a specificchemical composition. The ratios of different mixtures must bemaintained so as to avoid compromising on quality. In this respect,available software should regulate the relative quantities andtemperatures of ingredients used in the production process.
Hardware Needs
The company willneed several computers, printers, and labeling machinery. Thecomputers would be required to provide visibility for the ordersplaced in the system. The workers tasked with monitoring orders andtracking inventory would ordinarily be posted by the computers (Relph& Miller, 2015). Printers would be used to produce copies ofproduction targets and deadlines for the benefit of productionpersonnel. Labeling machinery would be required to produce brandingtags that would be attached to beverage bottles.
Telecommunication Needs
Telephoneapparatus should also be connected so as to make and receive callsfrom suppliers and clients. Web 2.0 technologies should also be usedto track the orders placed on other online platforms such as socialmedia (Khan, 2014). The inquiries posted by prospective clientsshould also be answered promptly so as to facilitate decision-making.
Personnel Needs
The company willutilize several people in its daily activities. In-house personnelwould include the CEO, who provides oversight for all the company`soperations. Also, a part-time computer expert would be required toinstall and maintain the software used to track orders andcommunicate with clients. Production line workers would also need tobe hired to work in shifts and ensure production targets are attainedpromptly. Outsourced workers can be used as consultants to conductperiodic quality checks and streamline the production process. Suchconsultants would also be tasked with ensuring that regulatorystandards are attained.
Management PlanKey Management and Employees
The day-to-dayaffairs of NAB Company will be overseen by a CEO/President under thedirection of a Board of Governors. The CEO will be responsible formonitoring the progress of all departments as per the establishedstandards and expectations. Departmental managers will be establishedto report to the CEO on the challenges and successes of theirrespective departments (Lynch, 2015). As a beverage company, NAB willhave several departments such as production, finance, distribution,human resources, and marketing. Each of the departments will have aspecific mandate so as to avoid duplication of efforts (Rothaermel,2015). The production department will be responsible for taking,tracking, and serving orders. Any shortfalls in inventory will befiled with the finance department. Purchases of ingredients andremuneration of workers will also fall under the jurisdiction of thefinance department. The marketing department will be tasked withexploring new markets for beverages as well as conducting in-depthmarket analysis. Also, the marketing department will be responsiblefor formulating the sales strategy. Human resources department willmanage the company’s employees and identify any staffing needs. Itwill also make remuneration recommendations to the financedepartment. On the other hand, the distribution department will forma network of suppliers that act on the recommendation of themarketing department. In this respect, the distribution departmentwill ensure that target markets have enough supplies of beveragesbased on demand.
Board Members and Advisors
The Board ofDirectors will entail five experienced industry experts. Each of theBoard members will also sit on functional committees established tomonitor the activities of each department. The Board will meet fourtimes each year to appraise the performance of the CEO anddepartmental heads. Such meetings will also provide an opportunity toevaluate the financial performance of the company vis-à-visestablished targets and industry averages (Rothaermel, 2015). Inspecial circumstances, advisors will be invited to provide expertguidance to the Board. Such advisors would also be used to serve asexternal auditors of financial statements and accounts. In thisrespect, the Board would act to safeguard the integrity andaccountability of the beverage company.
The Board willalso be responsible for arranging for annual general meetings whereshareholders are invited to check on the company’s progress(Rothaermel, 2015). During such meetings, financial results areannounced along with any declarations of a dividend. The Chairman ofthe Board would also announce any recent changes made to companypolicy, procedure, and management. The shareholders will also beprovided with an opportunity to put the Board members to task bymaking inquiries (Rothaermel, 2015). Besides, shareholders would havethe privilege of voting to either retain or replace any or all Boardmembers after every three years.
Management Structure and Style
The managementstructure will emphasize the role of the Board in providing directionand oversight. The CEO will work under the Board’s oversight. Also,departmental heads will report to the CEO. Subsequently, eachdepartment will have an appropriate number of workers depending onthe momentary needs of the company. Furthermore, the management styleof the company would encourage vertical and horizontal communicationat all levels. The workers should be free to express any complaintsand suggestions without the threat of victimization (Rothaermel,2015). Such an open policy would enable the company to have inclusivepolicies that cater to the specific circumstances of various groupsof workers.
OrganogramReferences
Lynch, R. L. (2015). Strategic management. New York, NY:Pearson.
Khan, M. A. (2014). Embedded and real-time system development: Asoftware engineering perspective. Heidelberg, Germany: Springer.
Relph, G., & Milner, C. (2015). Inventory management: Advancedmethods for managing inventory within business systems.Philadelphia, PA: Kogan Page.
Rothaermel, F. T. (2015). Strategic management. New York, NY:McGraw-Hill Education.