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Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
Operations Plan
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Operations Plan

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  • 1. Operations Planning <ul><li>The Operations Plan describes your production management system. </li></ul><ul><li>It describes what you produce and how you produce it. </li></ul>
  • 2. Operations Planning <ul><li>This section should be one of the easier sections for you to develop. </li></ul><ul><li>But planning is easy, implementation is the hard part. </li></ul>
  • 3. Operations Planning <ul><li>Operations/production management is one of the most important aspects of running a farm business. </li></ul><ul><li>Production level or yield is usually the single most important factor determining the cost of production. </li></ul>
  • 4. Operations Planning <ul><li>There is rarely one area where significant cost reductions can be attained. </li></ul><ul><li>The key to more profitable businesses is managing many costs two to five percent more efficiently than their competitors. </li></ul>
  • 5. Operations Planning <ul><li>In the operations section of a business plan, you need to adequately communicate that the business has a sound production management strategy. </li></ul>
  • 6. Operations Planning <ul><li>The operations plan should document the critical operational procedures that make will make your business successful? </li></ul><ul><li>Do you know the critical operational functions that will determine a new business or enterprise’s success? </li></ul>
  • 7. Operations Planning <ul><li>When starting a new enterprise, visit similar business’s to identify critical operational factors. </li></ul><ul><li>This is particularly important if you are starting a new or creative niche operation. </li></ul>
  • 8. Operations Planning <ul><li>To communicate your Operations plan, this section should discuss: </li></ul><ul><ul><li>The products produced </li></ul></ul><ul><ul><li>The production system </li></ul></ul><ul><ul><li>Quantity produced </li></ul></ul><ul><ul><li>Production schedule </li></ul></ul>
  • 9. Operations Planning <ul><li>Operations should discuss: </li></ul><ul><ul><li>Resources available and needed </li></ul></ul><ul><ul><li>Permits and regulations </li></ul></ul><ul><ul><li>Risk management plan </li></ul></ul><ul><ul><li>Environmental issues </li></ul></ul><ul><ul><li>Quality control systems </li></ul></ul>
  • 10. Operations Planning <ul><li>The operations section should also help you think through and identify production functions that can be improved. </li></ul>
  • 11. Operations Plan <ul><li>Marketing and operations are closely related. </li></ul><ul><li>Which plan should you develop first? </li></ul>
  • 12. Operations Plan <ul><li>You may want to ask: </li></ul><ul><ul><li>Should I determine my marketing opportunities and produce to meet the marketing plan? </li></ul></ul><ul><ul><li>Or should I determine my competitive production capacity and develop markets for my products? </li></ul></ul>
  • 13. Operations Plan <ul><li>Traditionally agricultural producers focused on products they had a competitive advantage producing. </li></ul><ul><li>Today there is a growing focus on determining marketing opportunities and producing to meet demand. </li></ul>
  • 14. Operations Plan <ul><li>Your approach may depend on whether you are focused on: </li></ul><ul><ul><li>Producing a commodity – competitive production advantage focus </li></ul></ul><ul><ul><li>Producing a niche product – market demand focus </li></ul></ul>
  • 15. Operations Planning <ul><li>The production plan may also address how the business will: </li></ul><ul><ul><li>Produce value-added products </li></ul></ul><ul><ul><li>Specialize on a product or a few products </li></ul></ul><ul><ul><li>Diversify the product line </li></ul></ul><ul><ul><li>Transition to a new or niche products </li></ul></ul>
  • 16. Resources <ul><li>Guide worksheets </li></ul><ul><ul><li>Production system & schedule-worksheet 4.10 </li></ul></ul><ul><ul><li>Regulations & policies - worksheet 4.11 </li></ul></ul><ul><ul><li>Resource needs & acquisition-worksheet 4.14 </li></ul></ul><ul><ul><li>Operations strategy summary-worksheet 4.17 </li></ul></ul><ul><ul><li>Risk management – worksheet 4.24 </li></ul></ul>
  • 17. Resources <ul><li>FINPACK Business Plan software </li></ul><ul><ul><li>Crop system </li></ul></ul><ul><ul><li>Livestock system </li></ul></ul><ul><ul><li>Other enterprises </li></ul></ul><ul><ul><li>Risk management plan </li></ul></ul><ul><ul><li>Environmental considerations </li></ul></ul><ul><ul><li>Quality control systems </li></ul></ul>

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