Business operation plan, development

Committee Management Business/Operation Plan Development/Management Revenue Producing Activities... 

Have plans been developed to maintain or restore business operations in the required timescales following interruption to, or failure of, critical business processes ... 

The decision to move forward on constructing a new laboratory must be fully developed in an operational business plan, with sufficient detail to apply for and receive adequate project funding. A large part of this effort is determining the analytical cost structure and refining the operating plan of the laboratory. 

A set of default parameters must be estimated at the outset of operation to provide the client with cost of analytical procedures. A sample cost list for radioanalytical chemistry services is illustrated in Table 13.5. The earlier cost data are from a 1990 business plan developed by the authors and the 2004 cost data were extracted from cost proposals by a commercial laboratory. The magnitude of the cost for other analyses can be inferred from their similarity in processing to the cited methods. 

In the evolution, the vertical silos of supply become connected through horizontal processes. The most common horizontal processes are revenue management, sales and operations planning (S OP), supplier development, and corporate social responsibility (CSR). (This transition is covered in great detail in Chapter 5.) These horizontal processes become connectors for the end-to-end value network. They align the traditional supply processes of source, make, and deliver against a business strategy. When companies successfully build market-driven value networks, demand and supply volatility can be traded off bidirectionally... 

Tang showed that supply chain risk can be treated through mitigation, using strategic and tactical plans (Table 5.4). This type of impact on risk is associated with the business continuity management (BCM) concept - see Section 5.2, which includes the contingency plans developed at operational level. 

A key factor in obtaining binding support for aquaculture is development of a sound business plan. The plan needs to demonstrate that the prospective culturist has identified all costs associated with estabhshment of the faciUty and its day-to-day operation. One or more suitable sites should have been identified and the species to be cultured selected before the business plan is submitted. Cost estimates should be verifiable. Having actual bids for a specific task at a specific location eg, pond constmction, well drilling, building constmction, and vehicle costs helps strengthen the business plan. 

Land purchases and many of the costs associated with faciUty development can be accompHshed with long-term loans of 15 to 30 years. Equipment such as pumps and tmcks are usually depreciated over a few years and are funded with shorter-term loans. Operating expenses for such items as feed, chemicals, fuel, utilities, salaries, taxes, and insurance may require periodic short-term loans to keep the business solvent. The projected income should be based on a reaUstic estimate of farmgate value of the product and an accurate assessment of anticipated production. Each business plan should project income and expenses projected over the term of all loans in order to demonstrate to the lending agency or venture capitaUst that there is a high probabiUty the investment will be repaid. 

In addition, the chemical supplier benefits from the close co-operation with the chemical user, which brings about long-term business relations characterised by mutual trust. The supplier is in a position to adjust optimally to the specific needs and problems of the user to plan its use of chemicals in more detail and to discover new developments or changes in the customer s needs at an early stage. 

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