Strategic operations planning and implementation

Operations Plan

Functional Group

The company in focus for this paper is a mid-sized company with over 1000 employees and the functional group that has been chosen from this company is the production department, with specific focus on the sensor capabilities and operations of this department. The reason behind choosing this particular department for this paper is the rising popularity of production processes and the importance of sensors with the increasing awareness and knowledge of the end consumer of the product. These two reasons are the primary factors for the focus on this department. Furthermore, the quality and life of the sensors are also being challenged by the end users who expect only premium performance and if they don't receive it, the company will most likely have to face customer retention problems as most of the customers might focus on other competitors with better products.

The primary purpose of the department will be to focus on creating and improving high quality sensors that not only satisfy their end users and targeted audience but also help improve customer retention levels for the company. Thus the work schedule for this department will include not only investment in the input for creating new sensors from scratch but also investing in the necessary research and development that will lead to improving the sensors as well as correcting any complaints or performance issues that arise after release. Such a department will be divided across three teams roughly, one that is dedicated to the technical side of creating and maintaining sensors, another that focuses on market R&D and another that focuses on the sales of the product and how it can be improved through improving the sales approach and pricing method. Experience technicians and R&D experts will be necessary with at least 5-10 years of specific experience in the industry while the marketers can be fresh blood; however, a balance between new hires and experienced individuals in this sector could also come in handy.

Period covered by the operational plan

The overall time frame for this operation plan will be short-term, i.e. 2 years, and will be open to expand further based on the successful return from the operation plan and adjustments will also be made based on any shortcomings in the operation plan that might surface. This is the chosen time period for this operation plan as it takes at least a year to design and manufacture a sensor; hence a batch of similarly structured sensors will take up a year for production and distribution. Similarly, any corrections required in the manufactured sensors can anywhere around 3 months up to 5 months. The initial success and effect of the operations plan could thus be gauged through analysis after two years of the completion of the operations plan.

The production department will also take care of the overall design innovations of the sensors as well as the automation degrees needed in the sensors structures. Currently, the operations time will include a timetable for the following responsibilities of the production department:

The manufacture and production of a batch of four high quality sensors with each having its own dedicated assembly line

Scheduling of the manufacture and distribution of these sensors based on the marketing and sales ratios given from the R&D department and marketing department

Furthermore, scheduling of the first shift and second shift will need to be done accurately and choice will have to be made if and when to apply the second shift as the second shift selection can prove to be far more expensive than completing work in the first shift alone

Calculations and assessments will need to be completed on the choice to employ the second shift as when implemented, it can give the company good returns and higher production rates, however it will also cost them 50% more; so a thorough analysis will first need to be done on when it will be feasible to employ the second shift, financially speaking.

Another aspect that will need to be covered initially by the production department alone will be the overall cost analysis and project costs incurred, as the costs and expenses can vary significantly depending on the time allocated to it; e.g. A correction in a sensor that takes 3 months could cost around $275,000, while a correction spanning over 5 months could cost around $415,000. Hence, time management will need to be addressed accurately and quickly.

Mission and Vision

The company offers high-quality premium products for the majority of the clientele which is made up of mainstream end users. The essential stakeholders for the company include stockholders, end consumers, internally employed and outsourced employees, as well as the administration of the company. The mission for the company thus includes satisfying their end users by providing high-end products.

The vision for the company is one that incorporates success and domination over the market for producing high-end sensors. The fact is that the company has targeted consumers that not only demand high-quality but are also aware enough to recognize when they see it. The targeted clientele is smart and knows the worth of what they are purchasing and using as well. While, having such a clientele can help specify the approach for the company, it also requires the company to always invest in innovation and improvement. Thus, the company knows that the only way to succeed is to excel in their performance of producing high-end quality products, one that remain competitive and grow to dominate the industry based on their utility. The vision is clear but the application can be tricky if the company does not continue to self-analyze and aim for constant improvement.

Differentiation