Operations Unit

Published: Jul 30, 2004

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Note: It is important that this section remains a plan and does not evolve into an operations manual. It serves as an outline to your reader demonstrating you have recognized the factors of production necessary to produce a service or a commodity. Of course, ample diagrams and photographs would enhance this section.

Service Operations

Are you fulfilling the role of servant, technician, expert, advisor, protector, or trustee?

Can you describe, as briefly as possible, the service(s) offered?

Are you adding value at a minor cost to your clients?

Will you control startup costs with a system of client screening?

Do you have a policy for setting priorities for utilization of resources, client servicing and development?

Do you have an efficient billing system?

Will it include records of time billable to clients and internal activities?
Will it have a fair and accurate costing and pricing of services?

Will you be applying Queuing Theory to the demands for service?

How will you accommodate customer enquiries?

Are there facilities and procedures for processing telephone enquiries?
Will there be distinct processing for receiving sales enquiries?
Will there be distinct processing for receiving calls for service?
Are there facilities and procedures for processing walk-in enquiries?
Are there facilities and procedures for processing electronic (email or website) enquiries?

Do you have a clearly defined service policy?

Is the service function appropriately staffed by skilled personnel?

What is the turn-around policy for delivering a service response?

Will you employ telemarketing techniques? How will you minimize intrusion into your prospect's time?

Do you have adequate capacity for your expected demand?

Do you have a procedure for avoiding and clearing bottlenecks in service delivery?

Is there an adequate list of low priority "filler" work?

Do you have methods for calculating and optimizing utilization of your resources?

Do you have a policy and method for determining cost-service trade offs?

Do you have a forecasting procedure for meeting demand for your service?

Do you have a forecast for the startup stage and beyond?

Do you have measures for handling fluctuating demand? Will these include using administrative or contracted personnel?

What is your policy on customer satisfaction?

Do you have systems for acquiring and measuring data on customer satisfaction?

Is this communicated to and monitored for all staff members?
What are the procedures for processing complaints?

Are there plans for development and improvement of service offerings?

Manufacturing Operations

Can you describe, as briefly as possible, the commodity(s) being produced?

Who designed this product?
Do you have exclusive ownership or is it licensed to you?
What and how many reviews has this product been subjected to?
Who, where and when was the product verification completed?
Who has validated the product and the production process?
Are trademarks involved and what is the status of these?
Is there a prototype available for examination?

Who is responsible for the production processes? What are his/her qualifications?

Can you outline the logistics focusing on the flow of materials and goods from suppliers, through the organization and to the customers?
What priorities are placed on efficiency and cost effectiveness?

Do you have competitive pricing – the key to success in the commodity business?

Does your strength depend on your preferred access to consumer markets?

Do you have a list of approved reliable suppliers?

What are your purchasing procedures?

What are your procedures for order processing?
What is the coordinating relationship between sales and production?
- Is there accurate sales forecasting for managing lead times and raw material acquisition?
Is there a need for simple or complex industrial engineering?
Who has done the industrial engineering?
Who has designed the production process?
What is the production process?
Who is responsible to the production scheduling?
- Is this coordinated with the sales department?

What raw materials are required?

Do you have reliable sources for these?
How will you control the inventories of raw materials?

Will you be relying on low-skilled labor?
- Is there an adequate supply of labor to meet labor cost inputs?
Will you be relying on skilled labor?
- Is there an adequate supply of trained and experienced skilled labor commensurate with your cost projections?

Will you be including a section on Plant and Equipment?

How will you control the inventories for finished goods?

What are your procedures for shipping and deliveries?
- Do you require extensive packaging facilities?
What provisions are made for warehousing?
- Will you employ drop shipping facilities?

What is your quality policy?

Will you apply for ISO certification?
What are your product inspection procedures?
What are the procedures for measuring and monitoring quality activities?

Do you have policy and procedures for controlling waste and production errors?

Will the production facilities be housed in owned or leased premises?

What are the arrangement for facilities management?
Have security needs been met?
Who will do the cleaning and maintenance?
Are the estimates for building or leasehold improvements included in the financial section?

Do you have access to data on operating ratios for similar operations in your industry?

Can these be related to your specific operation?

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