Assignment 3: Operation, Technology, and Management Plan (with Financials)
Assignment 3: Operation, Technology, and Management Plan (with Financials)
Due Week 8 and worth 100 points
This assignment consists of two sections: the Word document and your business plan financials. Note: You must submit both sections as separate files for the completion of this assignment.
Use the NAB Company Portfolio (see Required Course Files in Week 1).
Write a 4-8-page paper in which you provide the following information below.
Operations Plan (1–2 pages)
Note: Remember to assign a dollar amount to each operational cost you find, as you will need these figures for your income statement and cash flow in Week 8.
Create an operations plan for your NAB company using the template in the text as a guide (p. 214 | Operations Plan Preparation Form). Extract appropriate information from the NAB Company Portfolio, where applicable. Other required items in the template should be filled in using your personal preferences.
Note: Most of the research pertaining to the hints provided here can be found in the NAB company portfolio.
Hints: Consider whether you will rent or buy your facilities or outsource production to an existing company.
Hints: One of your biggest expenses as a startup non-alcoholic beverage company will be transitioning from a small-batch prototype of your beverage to production on a large scale. Research the equipment you will need (vats, refrigerators, burners, ovens, bottling equipment, and so on), whether you will rent or buy, how you will maintain and clean the equipment, and so forth. Consider how you will ensure quality control. What capacity do you intend to reach?
Hints: Deliberate your inventory control. Where do your supplies come from and what is your turnaround time to produce your beverage once you have received an order?
Hints: Consider your distribution method. Refer back to your notes for the SWOT analysis assignment in Week 2 of the class.
Hints: How will you stay abreast of new developments in your industry? What new products do you have in development now, in addition to your flagship product?
Describe your research and development activities and explain how they will contribute to the company.
Technology Plan (1–2 pages)
3. Create a technology plan for your NAB company using the template in the text as a guide (p. 227 | Technology Plan Preparation Form). Extract appropriate information from the NAB Company Portfolio, where applicable. Other required items in the template should be filled in using your personal preferences.
Hints: Consider the type of technology your company will use to conduct the following activities: managing personnel; taking, fulfilling, and tracking orders; managing inventory; communicating with customers and providing customer service; and producing your beverage.
Management and Organization (1–2 pages)
Create a management plan for your NAB company using the template in the text as a guide (p. 248 | Management Plan Preparation Form). Extract appropriate information from the NAB Company Portfolio, where applicable. Other required items in the template should be filled in using your personal preferences.
Using the flow charts on page 242 as a guide, outline your company’s management hierarchy. Note: Charts or diagrams must be imported/included in the MS Word document.
Create an ethics and social responsibility plan (1-2 pages)
Describe the ways in which your company is committed to being a good corporate citizen.
Hints: Consider the following areas:
Creating jobs
Following the laws of every jurisdiction in which your company operates
Fair and honest treatment of employees
Non-discrimination of employees and increasing diversity of your work force
Hints: If your company is designed as a social venture—in which you have a primary purpose of achieving a social or environmental goal—describe what that goal is and what aspects of your company are designed to reach that goal. Provide a rationale for why you have or have not chosen this to be a social venture.
2. Discuss how your company’s activities will affect the environment and identify the steps you will take to mitigate any negative impacts.
Hints: As a beverage company, consider such issues as your choice of packaging, disposal of bottles/packages by consumers, and your use of resources, such as water in areas where water may be scarce.
3. Determine any health issues/claims related to the product you are making, whether negative or positive. Suggest the strategy your company will use to mitigate any negative issues and to ensure any positive claims are true.
Operations, Technology and Management Plan
Author’s Name
Institutional Affiliation
Operation, Technology and Management
1. Introduction
The report presents detailed operation, technology and management plans for the new business venture known as New Millennial Coffee Company (NMCC). NMCC requires the plans to ensure that the company operates as per the defined objectives and also for the achievement of the desired market share in the millennial customers’ market segment of New York City through its offered product of ready to drink coffee.
2. Operations Plan
NMCC’s operational plan helps to provide support to the higher management for the achievement of effectiveness in the operational activities.
2.1. Key Aspects of Operations
The company decides to adopt cost-effective approaches for the production processes, therefore, the production facilities need to be small and only professional and high skilled employees are given the chance to get employed.
2.1.1. Facilities
The production facility will be rented in New York City. The research and development (R&D) department have identified that at least an area of 5000 square foot is required to carry out the production of ready to drink coffee, therefore, the expected rent for this kind of building is about $20,000 to $30,000 per month (Carmiel, 2020).
2.1.2. Production Process
The production process is carried out in a rented facility. The ready to drink product is manufactured, packaged and delivered to the supermarkets in New York City through the facility.
2.1.3. Equipment
Advanced equipment is required to produce the product. NMCC decides to use the equipment manufactured by Buhler Company because it offers a cost-effective coffee-preheating unit in terms of energy and helps to convert the raw organic beans to ground coffee within an affordable price range of $30,000 to $40,000 (Buhler Group, 2020). Other than this, the company needs to purchase 100 refrigerators and 10,000 bottles for packaging. The Zoho inventory software is used to track the inventory by the allocation of serial track numbers.
2.1.4. Labor Force Utilization
The employees appointed in the production department should have complete knowledge about the quality control techniques and methods. NMCC appoints only six employees in the production department and the manager needs to evaluate the employee’s performance on continuous to identify the future human resources needs.
2.2. Cost and Time Efficiencies, and Competitive Advantage
The cost and time efficiencies are achieved by the implementation of quality control techniques like statistical process control (SPC) and Six Sigma. The SPC provides support to monitor, evaluate and control the quality with the tracking production metrics. The production manager is responsible to identify and solve the errors and issues before products are delivered out of the production facility (Graphic Products, 2020). The second tool of Six Sigma helps to ensure that NMCC’s product meets the needs of customers and contains no defects (Graphic Products, 2020). Competitive advantage is achieved by the development of high quality ready to drink coffee products offered at a price of $1.
2.3. Problem Addressed and Overcome
A committee based on managers of production and R&D departments and workers’ representatives is developed to identify and solve the issues in the production facility.
3. Technology Plan
NMCC requires an effective technology plan to ensure that organizational activities are integrated with technological tools, methods, and solutions.
3.1. Software Requirements
The software’ are required to monitor the human resource activities and production processes, track inventories and orders, and to communicate with the customers. The use of advanced technology for customer services helps to increase the company’s brand equity.
3.1.1. On-Premises Software
The advanced software of quick books is selected to carry out accounting tasks and it costs $45/ month (Quickbooks, 2020). The Zoho software is select to manage the HR activities and its cost for enterprise is $45/ month (Zoho, 2020). The software of Zoho inventory is expected to be used for the purpose of inventory management and its professional version cost about $249/ month (Zoho, 2020a). The software is compatible to provide support to allocate serial track numbers to inventory and further helps in inventory batch tracking (Zoho, 2020a). For internal communication, the tools of Skype and emails are preferred.
3.1.2. Cloud Computing
The selected cloud storage and the backup tool is IDrive and it is one of the best tools for small businesses because it costs only $99.50 per year for storage of 250 GB (Business News Daily, 2020).
3.2. Hardware Needs
Ten laptops are required to operate the software’s and they are expected to cost about $4000.
3.3. Telecommunication Needs
The customer services department is given separate landlines and mobile phones to communicate with the customers and achieve expected standards. The telecommunication needs of the customer department are expected to cost about $1200.
3.4. Personal Requirements of Employees and Managers
Employees are allowed to use personal phones in the workplace. Additional cell phones are provided to the managers and they are expected to cost about $1000.
3.4.1. In-House Human Resources Technology Requirements
NMCC is a new business venture, therefore, a large amount of financial capital is not available to meet the technological requirements of human resources. CEO has developed a policy to allow employees to use their personal phones for the purpose of communication.
3.4.2. Outsourced Technology Requirements
The development of the website and mobile application is outsourced to an external company. It is expected that development costs about $4000.
4. Management Plan
The management plan provides guidelines and frameworks that can be used by higher management, managers, and employees to work as per the expectations.
4.1. Key Management and Employees
John Mathew, manager of the production department has a high professional experience of 10 years in the segment of ready to drink coffee. Michael Howard, manager of the R&D department has a professional experience of more than 5 years in organic beans production and their usages. Christopher Roy, an employee of R&D has a professional experience of 3 years in the development and introduction of CSR projects.
4.2. Board Members and Advisors
NMCC does not have a board of directors. The company’s CEO is its founder and departmental managers are also considered as advisors.
4.3. Management Structure and Style
NMCC is a sole proprietorship and 100% owned by the founder. The company’s CEO takes all business decisions and its final approval is r...
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