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Question
Briefly, explain the objectives of operational plan.
Solution
Following are the objectives of operation plan:
(i) Advance production: For production in advance of operations,
(ii) Exact route: Establishing the exact route of each individual item, part of assembly,
(iii) Dates: Setting, starting and finishing dates for each important assignment/ work.
(iv) Orderly movement of goods:Regulating the orderly movement of goods through the entire manufacturing cycle i.e. right from procurement of all materials to the shipping of finished goods.
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RELATED QUESTIONS
What is the meaning of shipping in the process of operational plan?
Name the factors which affect the operational plan.
What is an operational plan? Discuss its blue print.
You are an entrepreneur who is deciding the operational plan for your business.
While deciding the technology to be used, you come across three alternatives:
a) Use a cheaper technology which lets you dispose of the waste water and lets
you fix the price of your product low.
b) Use a technology that is a little expensive as it lets you recycle that waste water
into water fit for drinking. In this case, you will have to fix the price a little
higher in order to earn profits.
c) Use the technology that recycles the waste, do not change the price. And go
about cost cutting though efficient utilization of resources.
The production plan aims at "plan your work", whereas operations plan ensures "work your plan". In the light of the given statement, examine the relevance of a operational plan for an entrepreneur.
