What Is an Annual Operating Plan?

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As president, Tony DiTucci is responsible for driving the organizational vision and building trusted relationships with key stakeholders. Furthermore, he implements goal-setting strategies and oversees annual operational planning.

Business

An accomplished construction executive in Pittsford, New York,
Tony DiTucci serves as the president of Livingston Associates in
Scottsville. As president, Tony DiTucci is responsible for driving
the organizational vision and building trusted relationships with
key stakeholders. Furthermore, he implements goal-setting
strategies and oversees annual operational planning.

An annual operating plan is a detailed
report that outlines the financial
elements, budgets, key performance
indicators, and necessary resources to
achieve short-term business goals, which
help maintain day to day business
operations. This document identifies
specific projects and objectives required
to reach key targets for the upcoming
year.

A comprehensive document, the annual
operating plan addresses vital questions
related to the business and its goals, such
as identifying project overseers,
determining the business units
responsible for key tasks, estimating the
required resources, identifying proactive
and reactive steps to mitigate business
disruption, and assessing potential
financial risks. This plan essentially
focuses on optimizing internal workflows
to enhance efficiency and achieve key
short-term objectives.

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Obtain a copy of the City of Orlando government's annual operating budget document from its Web site. This Web page provides a copy of this budget. Familiarize yourself with the organization of the operating budget document; read the letter of transmittal or any narrative that accompanies the budget Does the operating budget include a table of contents to help you locate information in the document? Does the budget document include a coherent statement of organization-wide goals and strategies that address long-term issues? Does the document address short-term factors that influence the development of the budget? Does it include a budget message that articulates priorities and issues for the upcoming year? Does the budget document provide an overview of significant budgetary items and trends within the budget document that support ethical and legal accounting practices?.

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Chapter 2: Strategic Planning and Budgeting—Process, Preparation, and Control OVERVIEW Although it differs among companies, planning charts the direction of the company over a period of time to accomplish a desired result, such as improving profitability. Budgeting is simply one portion of the plan, and the annual budget should be consistent with the long-term goals of the business. Planning should link short-term, intermediate-term, and long-term goals. Plans are interrelated, and the annual plan may be based on the long-term plan. The objective is to make the best use of the company's available resources over the long term. In planning, management selects long-term and short-term goals and draws up plans to accomplish those goals. Planning is more important in long-run management. The objectives of a plan must be continually appraised in terms of degree of accomplishment and how long implementation will take. There should be feedback as to the plan's progress. It is best to concentrate on accomplishing fewer targets so proper attention will be given to them. Objectives must be specific and measurable. For example, a target to increase sales by 20 percent is definite and specific. The manager can quantitatively measure progress toward meeting this target. The plan is the set of details implementing a strategy. The plan of execution typically is explained in sequential steps, including costs and timing for each step. Deadlines are set. The planning function includes all managerial activities that ultimately enable an organization to achieve its goals. Because every organization needs to set and achieve goals, planning often is called the first function of management. At the highest levels of business, planning involves establishing company strategies—that is, determining how the resources of the business will be used to reach its objective. Planning also involves the establishment of policies—the day-to-day guidelines used by managers to accomplish their objectives. The elements of a plan include objectives, performance standards, appraisal of performance, action plan, and financial figures. All management levels should be involved in preparing budgets. There should be a budget for each responsibility center. Responsibility in particular areas should be assigned for planning to specific personnel. At MillerCoors Company, planning is ongoing, encouraging managers to assume active roles in the organization. A plan is a predetermined action course. Planning has to consider the organizational structure, taking into account authority and responsibility. Planning is determining what should be done, how it should be done, and when it should be done. The plan should specify the nature of the problems, reasons for them, constraints, contents, characteristics, category, alternative ways of accomplishing objectives, and information required. Planning objectives include quantity and quality of products and services, as well as growth opportunities. A pla ...

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A strategic plan is a list of activities to be performed in order to achieve certain targets, or goals. An investment club strategic plan is hence a written plan that indicates where the investment club is today, and where it wants to be in a future time, listing the various steps that have to be taken to achieve the milestones. According to Kotler, a leading strategist and leader, ‘in the strategic formulation, goals indicate what a business unit wants to achieve, and strategy is a game plan for getting there. Every business must tailor a strategy for achieving its goal.’ The strategy is the ‘what’ activity to be done; how, where, when and to whom. “the devil is in the details, so is failure and successes.” -Ojijo

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7 Budgeting for Operations Management Wavebreakmedia/iStock/Thinkstock Learning Objectives After studying Chapter 7, you will be able to: • Identify the major elements of a financial planning and control system. • Define responsibility accounting, including cost, profit, and investment centers. • Explain the major purposes of budgeting. • Identify the major human behavior factors that affect budgets and the budgeting process. • Understand the master budget components and their relationships. • Identify independent and dependent budget variables, and understand the basic format and calculation sequences necessary for preparation of budgets and supporting schedules. • Understand the role of flexible budgeting, project budgeting, and probabilistic budgeting in planning and control. • Prepare and format schedules for all elements of the master budget. • Explain the impact on budgeting of JIT systems, activity-based costing, and flexible manufacturing. sch84920_07_c07_259-314.indd 259 8/1/17 1:42 PM © 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. 260 Chapter Outline 7.1 Budgeting: A Planning and Control System 7.2 Responsibility Accounting Responsibility Centers Identifying Cost Centers Control Reports and Roll-Up Reporting 7.3 Why Budget? 7.4 Behavioral Side of Budgeting Top-Management Support Budget Slack Human Factors and Budget Stress Ethics of Budgeting 7.5 Master Budget—An Overview Master Budget Components Master Budget for Nonmanufacturing Organizations 7.6 The Starting Point and Beyond Finding the Controlling Constraint Sales Forecasting Using Activity-Based Costing Relationships Independent and Dependent Variables Preparing and Formatting Budget Schedules 7.7 Other Budgeting Techniques Flexible Budgeting Project Budgeting Probabilistic Budgeting 7.8 A Master Budget Example Annual Goals and Planning Assumptions Sales Forecast Production Plan Supporting Schedules Cost of Goods Manufactured and Sold Schedule Selling and Administrative Expense Budgets Project Budgets Cash-Flow Forecasts The Completed Example: Forecast Financial Statements Master Budget Summary 7.9 Impacts of Contemporary Manufacturing Approaches sch84920_07_c07_259-314.indd 260 8/1/17 1:42 PM © 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. 261 Section 7.1 Budgeting: A Planning and Control System Budgeting: The Negatives and the Positives! If you mention the words plans or budgets to Ann Davis, President of Internet Pathways, you get a reaction ranging from disdain to outright hostility. She has been heard to say: “How can I plan? Things always change so fast!” “My business isn’t suited to anything so formal. My managers and I need to be flexible, fast on our feet, and ready to change direction overnight, if we have to do so.” “The budget always says we can’t do it. I just say, ‘Do it!’” “The budget reports tell me where I’ve been, never where I’.

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With a career spanning over two decades, Anthony “Tony” DiTucci is an accomplished New York business leader with executive leadership experience. Since 2019, he has served as the president of Livingston Associates, where he oversees the organization’s vision and strategy. Well-versed in the construction management industry, Tony DiTucci is tasked with numerous responsibilities, including implementing performance metrics. Performance metrics involve data that reflects an organization’s quality and potential. There are multiple parameters of measuring performance metrics, and they include profit margins, sales, market share, customer satisfaction, stock price, and return on investment, among others. The following are some characteristics of performance metrics: Aligned to Strategy Investors are often keen on identifying with performance metrics that offer accurate insight into a firm’s strategy. Organizations can only benefit from performance metrics if they are managed carefully and tracked to receive accurate information to support an organization’s strategy. In addition, metrics should clearly align with an organization’s business models, competitive advantage, strategic objectives, and operational metrics:

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An experienced businessman and entrepreneur based in New York, Anthony “Tony” DiTucci is the vice president of DGA Builders LLC. In the past he also served as a lead reconstruction manager at LECESSE Construction Services. In his free time Tony DiTucci likes to travel, and one of his favorite traveling places is Puerto Rico. Puerto Rico is a Caribbean island that has many beautiful palm-lined beaches and other sights that can charm anyone within seconds. One of the most visited places in Puerto Rico is the El Yunque National Forest. This is the only tropical rainforest in the United States. Visitors can observe in the rainforest over 240 species of trees and hundreds more plants within the walking trails designed for them. The forest has 43 square miles and has a peak of 3,500 feet above water. San Juan, the capital of the state, is also a place most visitors seek for its old architecture. The city has many restored Spanish colonial buildings that date back to the 17th century. One of the biggest attractions in San Juan is El Morro Forto as it was constructed in 1539 and was preserved over the years to look exactly the same.

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A Pittsford, New York resident, Anthony “Tony” DiTucci graduated from the Saint John Fisher College and holds a bachelor of arts in economics and political science. Tony DiTucci is currently the vice president of DGA Builders LLC, a firm that specializes in real estate construction. DGA Builders LLC is a construction firm that managed the construction of many real estate properties as a general contractor, including the Clifton Heights Apartments. DGA Builders LLC completed this project in 2017 and the apartments are located in Buffalo, New York, Erie County. The Clifton Heights Apartments consist of five buildings with 26 units. All the units feature luxury flooring, covered patios, and private entrances so that people can enjoy a private and beautiful life in their homes. The Clifton Heights Apartments have a clubhouse building that serves as a relaxation place for tenants and includes a fitness center where people can practice and stay fit. The clubhouse also has a pool area and a large room designed for parties, with an attached kitchen and bar.

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New York resident Tony DiTucci has worked in the construction industry for 28 years. His roles have included project manager and estimator. In his role as vice president at DGA Builders, LLC, Tony DiTucci oversaw the construction of senior living and multi-family projects. Among its many different projects, DGA builds and refurbishes K-12 schools in Pittsford and the surrounding areas. DGA’s approach to working with the K-12 system is to implement quality, safety, cost, and scheduling principals combined with the needs of the school to produce a plan for constructing or rehabbing a school while complying with state Education Department guidelines. The firm has successfully completed work for several academic institutions. For Manchester Shortsville Central school district, the company’s work involved renovations that relocated the middle school office and district office to other locations for safety purposes, as well as roof, skylights, and masonry restoration. DGA also completed a roofing project for Fayetteville Elementary and Enders Road School while serving as construction manager for the Fayetteville-Manlius school district.

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The vice president of DGA Builders, LLC, Tony DiTucci leads and manages senior and multi-family housing projects. Among his certifications, Tony DiTucci earned the 30-Hour Construction Safety Certification from the Occupational Safety and Health Administration (OSHA), the federal government entity that oversees and enforces workplace safety practices. Designed for workers who assist with safety protocols on construction projects, the OSHA 30-Hour Construction Safety Certification provides instruction on how to identify, avert, avoid, and control workplace hazards. To complete the training, participants must find an OSHA-authorized outreach trainer. As different trainers will have different schedules and fees as well as work in different areas of construction, the organization urges participants to reach out to several trainers to identify the most appropriate based on his or her offerings. OSHA furnishes an online directory with the phone numbers and emails of authorized outreach trainers. The directory includes trainers offering in-person instruction in English and Spanish, as well as links to online training programs. The directories are available at www.osha.gov.

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