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Operations

Operations Management

The business cannot be successful unless there is a consistent product or service produced. The process must be monitored to guarantee that the inputs are correctly allocated to the right raw materials using the applicable skills and knowledge. How do you know if the process was completed correctly – ultimately the consumer will vote by purchasing (or not purchasing) the finished good or service.

Facility Layout

This section will vary greatly depending on what type of business you are in. For some businesses the layout of the facility is not very important, for some it becomes a key competitive advantage. If most of the day-to-day business is conducted on the Internet, then the location and facility is of minor significance.

Production
Remember that the reader of your plan is looking for not only a well-conceived concept, but confidence that management will be able to execute once the plan is in full swing. If you are vague about details of the operation you convey to the reader the impression that you are winging some of the critical issues and putting them off until later. This uncertainty builds risk into the plan that makes it difficult for the reader to have faith in the execution.

Intermediaries
The term intermediary refers to anyone that facilitates the movement of goods (and yes services) to the end consumer. We normally think of these as wholesalers or distributors, but in some industries there are a number of different organizations all playing a part.

Storage or Warehousing
Whenever you have more production that can be sold immediately, you will need to consider some form of storage. A preferred option may be right at the production facility or at your home base. Because production facilities and customers are located all over the world in most cases it makes logistical sense to warehouse products in a location that provides the most convenience to the transportation and/or markets.

Employees

Whenever you hire your first employee you have obligated your firm to complying with the numerous employee management practices. A good place to start is the IRS website for new employers.  http://www.irsvideos.gov/virtualworkshop/.  This workshop is a step-by-step training exercise designed to help you fill out any reporting forms or required reports. Withholding wages for the IRS and Social Security is a serious obligation that must be completed correctly and in a timely manner to avoid penalties and interest.
Before you do any hiring it is best to outline the duties and responsibilities of each position. What employee benefits will be offered, work schedule, the pay rate, and any overtime needed.