BSBMGT517–Manage Operational Plan Assignment Task 1 Answers

Question 1

  1. List the resources requirements needed to develop an operational plan.

When developing an operational plan, it’s important to recognise and research resources which could be physical and/or include human resources.

Operational plan requirements may include:

  • Production and manufacturing raw material
  • Processes/infrastructure
  • Technology
  • Distribution
  • Location and facilities
  • Equipment
  • Human resources
  1. Explain the consultation process and whom you must consult while researching and documenting the requirements of an operational plan.

Consultation process is an integral part of operational planning process in which is essential to research and analyse resource requirements with relevant personnel, colleagues and specialist resource managers.

Consultation process is developed to encourage people to give ideas and feedback on the operational requirements and possible contingencies. By acknowledging their feedback best (two-way) communication can be achieved.

Question 2

What are key performance indicators, how they are developed within the operational plan and how they can help in measuring overall organisational performance?

Key Performance Indicators (KPI’s) help define and measure progress toward organisational goals and objectives. For KPI’s to be of any value they must be accurately defined and measured. When developing operational plan several operational targets must be developed to form basis for monitoring of the business. KPI’s translate business strategy into manageable, operational actions, based on the collected data and monitoring, providing quantifiable measure that can be used to determine how well the company goals are being met.

Question 3

When planning there is a need to include a ‘contingency plan’

Explain why is it is important for a health care practice to develop and implement contingency plan for each appropriate stage of their operational plan

Contingency plans are created during the planning process of the operational plan, based on the discussions and analysis to provide necessary guidance when unexpected problems occur.

The ‘contingency plan’ as in healthcare practice is very vital to the business as there are times when operational issues arise.

Contingency plan defines the risk that a particular disruption may bring, by first performing a risk analyses that prioritises/identifies availability of resources, organisation capability to deal with any type of disruption eg addressing shortage of staffing.

Contingency plan maximises resources, human, financial and physical, ensures coordination and defines where and when resources will be used.

Question 4

  1. What methods you will undertake to obtain the approval of the operational plan and who should be involved in the process?

Most organisations have a format which is followed when setting out and presenting plans. To develop an effective proposal, we must first:

  • Identify gaps between organisational needs and current organisational capacity
  • Research options
  • Consider delegation policy and authority to make purchase
  • Consider all relevant policies and procedures
  • Consider cost analysis
  • Content of operational plan is supported by variety of information resources

Stakeholders, including employees’ input is the most valuable when considering operational plan, coming from various areas of interest can generate insights into potential impacts KPI’ may have when assigning and implementing objectives.

  1. Why it is important to obtain necessary approval for operational plan from relevant stakeholders.

Consultation with stakeholders and formally presenting plans provides an opportunity for stakeholders to understand key issues and impacts to provide feedback for adjustment prior to final submission. Mutually agreed on solutions and collaborating to achieve consensus on outcomes has the potential to lead to improved organisational efficiency, satisfaction and productivity to all concerned across the organisation, clients and stakeholders.

Question 5

Managing resource acquisition is crucial in the process of operational planning.

Explain how you will plan and manage acquisition of physical and human resources in the planning process.

To plan and manage acquisition of physical and human resources in the planning process, a certain steps need to be applied to the plan in order to secure right people for the organisation, and may include the following steps:

  1. Analise business operational needs
  2. Work out current capabilities of current workforce
  3. Work out needs for future requirements- extra skills needed in staff
  4. Conduct gap analysis to identify surplus and shortages, noting implications for the organisation.
  5. Initiate HR planning for recruitment, selection and induction of required skilled as per the organisational urgent priorities, that includes preparation of recruitment schedule based on priorities and operational planning (job analysis, advertising, interview and assessment, induction and planning)
  6. Set up a system of performance management, award and recognition, training, etc.

Prepare communication plan and consult with stakeholders.

 In order to acquire physical resources, we need to:

  1. Identify requirements
  2. Identify full specifications
  3. Identify suppliers
  4. Evaluate and select suppliers’
  5. Request for tender
  6. Evaluate responses
  7. Place order
  8. Follow up and expedite
  9. Review

Question 6

List the performance measures that will assess the operational performance of the organisation in achieving profit and productivity plans and targets?

The final step to any planning process is to monitor and evaluate progress.

Common measures of success are indicated in:

  • Customer satisfactory
  • Financial measures
  • Growth, innovation and learning
  • People commitment

Key features of successful planning and monitoring of operations include:

  • Focusing on key areas of performance
  • Monitoring performance against targets and milestones
  • Monitoring performance using appropriate tools and methods
  • Acting and monitoring on regular basis

Common monitoring tools:

  • Progress reports
  • Management reports
  • Team and individual scorecards
  • Gantt charts
  • Critical path analysis
  • Financial planning and control mechanisms
  • Administration and production controls

Question 7

  1. Name all the financial supportive documents that you practice would use to monitor and review profit and productivity performance of the operational plan

A budget is a plan that outlines an organization’s financial and operational goals, it helps business allocate resources, evaluate performance, and formulate plans. It is an essential part of a business plan as it projects business cash inflow and outflow over certain period of time. Critical Success Factors (CSF’s) and Key Performance Indicators (KPI’) are also

 valuable tools to measure strategic goals and success.

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  1. Interpret below mentioned budget variance report for BIG APPLE GROCERY STORE


Income statement variance report for Jun 2015 quarter

All value is in aud







Sales Revenue 500,000 400,000 100,000 20
Less Cost of Goods Sold
Stock as at May 15
Add purchases 100,000 150,000 0
Sub total 150,000 150,000 0
Less stock as at Jun 30 25,000 50,000 (25,000)
Cost of Goods Sold 125,000 100,000 25,000
Gross Profit 325,000 300,000 25,000 10
Less Operating Expenses
Advertising 20,000 15,000 10,000
Accounting fees 250 250 0
Bank fees 250 250 0
Postage 750 1000 (250)
Power 11,250 12,000 (750)
Insurance 3,750 3,750 0
Motor vehicle 10,000 4,000 6,000
Lease 62,500 62,500 0
Salary Costs
Wages 125,000 135,000 0
Total Expenses 245,500 255,000 15,000
Operating Profit* 115,000 55,000 60,000 30

Answer the following questions:

  1. Has the store met its sales target for the quarter?
  • Sales revenue was less by $100.00 than projected in the budget
  1. Indicate the areas where expense has gone over the budgeted figures
  • Stock
  • Power
  • Postage
  • Wages
  1. Is the store making profit? How much is the difference in percentage in the profit?

The Gig Apple Store is making a profit of $55,000, it is however a $60,000 less than projected in the budget, making it a 30% decline in profit.

  1. What strategies would you implement to improve the profit margins for next quarter?

I would re-evaluate:

  • Purchasing of stock
  • Employees’ wages (cut down on overtime)
  • Electricity usage (equipment to be switched off at the end of day etc.)

Question 8

Provide “steps” on how your practice identifies the following:

  • Non-performance
  • Identifies unsatisfactory performance by the employees’
  • Non-compliance with workplace policies, rules and behaviours
  • Unacceptable behaviour in the workplace
  • Disruptive or negative behaviour that impacts other workers
  • Recommending solutions

As employee is often unaware that they are not performing well, it is important to address it promptly before it becomes a serious performance issue having a negative effect on the business.

First step would be to identify what issues the employee in question is dealing with, how long it has existed, and how we can classify the underperformance.

It is advisable to approach the employee to discuss the problem and devise a plan to improve the performance concentrating on their strengths and improving the areas where performance is lacking strength.

  • Actions implemented to rectify non-performance
  • Reflect on understanding that performance expectations need to be achieved
  • Make sure that roles and responsibilities are clearly specified
  • Provide additional training and development
  • Emphasise the importance of time constraints applied to the performance improvement
  •  Provide value in role objectives being met

Question 9

How you can setup a system of mentoring and coaching to provide support to the team members in using the acquired resources in effectively, economically and safely manner?

Coaching and mentoring can be a beneficial means of organisations to improve and achieve operational objectives by employees via different approaches. Coaching has a focus on performance and mentoring focuses on individual ability, growth and maturity.

An experienced manager can mentor an employee by taking a personal interest developing objectives and encouraging the employee to thing as an individual in order to obtain the same outcome.

Question 10

Provide three (3) examples of records used to document organisational overall operational performance.

  1. Cash flow one of the most important tools in managing business finances. It tracks all the money flowing in and out of business.
  2. Profit and loss statement lists sales and expenses on a monthly, quarterly and yearly basis

Budget – most effective way to control cash flow , and is a vital tool in ensuring that we stay in control of expenditure.

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