Operations Before Working On This Discussion Post Review
Operationsbefore Working On This Discussion Post Review The Appropria
Review the appropriate guidelines for your selected company: Company of Your Choice Guidelines [DOCX]. Describe how your business operations will work, including the day-to-day activities necessary to deliver your product or service to customers. Address facilities, production process, equipment, inventory management, supply sources, turnaround times, research and development, and personnel needs, specifying costs where applicable.
Paper For Above instruction
This paper examines the operational framework of a hypothetical small business, focusing on the essential activities and resources required to deliver products or services efficiently. Creating a detailed operational plan is vital for establishing a sustainable and profitable enterprise. The discussion encompasses facility management, production processes, equipment, quality control, inventory management, supply chains, R&D activities, and personnel requirements, emphasizing costs and strategic considerations in each area.
Facilities
The business operates from a physical facility located in an urban commercial district. The facility is leased rather than owned, with a monthly rent of approximately $3,000. Utilities such as water, sewer, electricity, gas, and trash removal are estimated at around $800 per month, based on average consumption and local rates. The location was chosen for its accessibility to customers and suppliers, as well as proximity to transportation hubs, which minimizes logistical costs and improves service delivery.
Production Process
The business offers customized handcrafted furniture, which involves a combination of carpentry, finishing, and quality inspection. The production process begins with sourcing raw materials like wood, hardware, and finishing supplies from local and international vendors. Once raw materials arrive, they are stored in a dedicated warehouse space. The manufacturing cycle includes designing, cutting, assembling, sanding, finishing, and final inspection. Quality control is integrated at each step, with inspections conducted by trained staff to ensure that products meet safety, durability, and aesthetic standards. The capacity varies depending on order size but aims to produce up to 20 pieces weekly as a starting point.
Equipment costs include saws, sanders, drills, finishing machines, and safety gear, totaling approximately $25,000 initially. Maintenance and replacement costs are estimated at 10% of this capital expenditure annually. Production turnaround time from order receipt to delivery is approximately 2-3 weeks, depending on complexity and customization requirements.
Research and Development
Staying current with industry developments involves subscribing to woodworking and design journals, attending trade shows, and participating in online forums. R&D efforts focus on integrating sustainable materials, exploring new finishes and techniques, and developing innovative furniture designs. Ongoing product development includes creating modular furniture lines and incorporating smart technology features to appeal to tech-savvy consumers.
Personnel Needs in Operations
The business plans to employ five full-time staff members: a production manager to oversee daily operations, three skilled carpenters, and one administrative assistant. The production manager will coordinate workflow, quality assurance, and supply chain logistics. Carpenters will handle fabrication and finishing tasks, each responsible for individual sections of the process. Personnel costs, including wages, benefits, and payroll taxes, are estimated at $60,000 annually per employee, totaling approximately $300,000 per year for the team.
Effective personnel management aims to maximize productivity, ensure high-quality output, and foster a collaborative work environment. Training programs and safety protocols are integral parts of operations to maintain standards and reduce workplace accidents.
Conclusion
Overall, this operational plan outlines a comprehensive approach to managing a small business focused on handcrafted furniture. It emphasizes cost analysis, strategic facility placement, efficient production workflows, ongoing R&D, and a dedicated workforce to meet customer demands and adapt to industry changes. Proper execution of these operational strategies will contribute to the business’s growth, competitiveness, and sustainability in a dynamic market environment.
References
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- Heizer, J., Render, B., & Munson, C. (2020). Operations Management (13th ed.). Pearson.
- Stevenson, W. J. (2022). Operations Management (14th ed.). McGraw-Hill Education.
- Chopra, S., & Meindl, P. (2019). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
- Slack, N., Brandon-Jones, A., & Burgess, N. (2019). Operations Management (9th ed.). Pearson.
- Dolan, R. J., & Eisingerich, A. B. (2018). The Role of Customer Experience in Business Success. Journal of Business Research, 91, 289-299.
- Gino, F., & Kouchaki, M. (2019). Ethical Work Behaviors and Corporate Social Responsibility. Harvard Business Review.
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