Explain the various elements of an Operational plan?

Question

Accepted Answer

The operational plan is a system achieving a smooth and coordinated flow of work within the factory, planning and controlling productive operations so the final product is completed according to plans. Where the production plan aims at 'plan your work', operations plan ensures 'work your plan'.

The various elements of an operational plan are:

1. **Routing** — Determining the exact route or path a product or service follows from raw material to finished product. This ensures orderly flow of materials from raw state to finished products.

2. **Scheduling** — Fixing the time, day, and date for each operation to start and complete; determining the required time for each operation. This helps in setting starting and finishing dates for each assignment or work.

3. **Dispatching** — Initiating production according to plan, issuing necessary orders, instructions, guidelines to give practical shape to the plan. This involves starting the actual production process as per the pre-conceived plan.

4. **Follow-Up** — Evaluating and appraising work performed. This helps in detecting errors and defects. It helps entrepreneurs in reviewing the situation regarding materials, work-in-progress, finished goods, expediting performance of lagging departments, and removing production obstacles.

5. **Inspection** — Comparing materials, product, or performance with established standards. This helps set up labs or strategies to ensure predetermined quality of products.

6. **Shipping** — Describes the flow of goods and services from production to consumers, beyond manufacturing. This details the chronological steps to complete a business transaction efficiently and profitably.