ASSESSMENT SUMMARY / COVER SHEET This form is to be completed by the assessor and used as a final record of student competency. All student submissions including any associated checklists are to be attached to this cover sheet before placing on the students file. Student results are not to be entered onto the Student Management … Continue reading “final record of student competency | My Assignment Tutor”
ASSESSMENT SUMMARY / COVER SHEET This form is to be completed by the assessor and used as a final record of student competency. All student submissions including any associated checklists are to be attached to this cover sheet before placing on the students file. Student results are not to be entered onto the Student Management Database unless all relevant paperwork is completed and attached to this form. Student Name:Student ID No:Completion Date: Unit Code:BSBMGT517Unit Title:Manage operational plan Please attach the following documentation to this formResult S = Satisfactory NS = Not Satisfactory NA = Not AssessedReassessment S = Satisfactory NS = Not Satisfactory NA = Not AssessedAssessment Task 1Develop an operational planS | NS | NAS | NS | NAAssessment Task 2Plan and manage resource acquisitionS | NS | NAS | NS | NAAssessment Task 3Monitor and review operational performanceS | NS | NAS | NS | NAFinal Assessment Result for this unitC / NYC Assessor Comments and Feedback to student: __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ Student Declaration: I declare that this assessment is my own work based on personal study and research and not plagiarised or copied from another student’s work or source.I am also aware of my appeal rights. Name: ____________________________ Signature: ____________________________ Date: ____/_____/_____Assessor Declaration:I declare that I have conducted a fair, valid, reliable and flexible assessment with this student. I have provided appropriate feedback and advised the student of their result.Name: ____________________________ Signature: ____________________________ Date: ____/_____/_____ Entered onto Student Management Database ________________ DateInitials Administrative use only Develop an operational plan Submission details The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor. Submit this document with any required evidence attached. See specifications below for details. Performance objective You will demonstrate skills and knowledge required to develop operational plans in consultation with key stakeholders. Assessment description In response to a simulated business scenario, you will research resource requirements and develop (or amend) an operational plan in consultation with relevant stakeholders. As a part of the development of your plan, you will set performance indicators, plan for contingencies, and obtain approval in accordance with organisational requirements. All you work will be gathered and put into a portfolio of work. This includes your notes and appendix sections for the new operational plan. Procedure Read the BBQfun scenario information provided in Appendix 1 and the BBQfun simulated business documentation provided by your assessor.Write a one page summary of the BBQfun operational environment that includes:an outline of the legislative and regulatory context that is relevant to BBQfun’s operational plan (available on pages 16–19)an outline of the BBQfun policies and procedures that directly relate to the operational planan explanation of the role of an operational plan in achieving the successful implementation of the e-commerce strategya discussion of your intention to either develop a new operational plan for BBQfun, or to amend the existing operational plan; support your discussion with reference to different methods and models for developing operational plans – such as methods for setting goals, outlining actions, identifying risk and monitoring performance.Research resource requirements for implementation of e-commerce strategy. Make sure that they link to the overall plan.Arrange with your assessor to participate in two resourcing consultation role-plays. These are meetings to be held with the assessor approx. 5-10 each. These meetings are used for discussing the operational plan.Participate in consultation role-plays with relevant personnel to determine resourcing needs. You will role-play with the:Sales and Marketing Manager – prepare to discuss human resourcing requirementsTechnology consultant – prepare to discuss physical resourcing requirements related to development of e-commerce website. Note: During consultation, ask questions and encourage the personnel to provide information. You can get your class peers to help you with this and your assessor. Develop an action plan for the implementation of the e-commerce strategy. In your plan include you may wish to put this part in a table or use the one in the appendix section:physical resourcing (all major steps for resourcing, including procurement of different types of resources, but not to the detail of including all procurement steps for each resource type)human resourcing (all major steps, e.g. recruiting, training, communication)timelines and milestones for implementing the e-commerce strategyconsultation and communication (ensure all affected staff are informed and engagement is encouraged for all stakeholders). An example action plan template is provided in Appendix 2. Ensure plans adhere to organisational requirements set out in the scenario and in relevant policies and procedures. Develop performance indicators for operational and financial targets and amend or develop existing operational plans to include KPIs and financial targets related to e-commerce strategy.Develop a balanced scorecard for an e-commerce customer service representative including three KPIs and associated targets. Note: The current budget and operational plan for BBQfun is in Appendix 1. A balanced scorecard template is in Appendix 3. Identify at least three (3) risks to the implementation of the operational plan and develop a contingency plan for each risk (you may use the contingency plan template provided in Appendix 4). Risks must include:one risk due to employee underperformance and what may happen to the organisation because of thisone risk related to management of intellectual property (IP). State what IP is and why it is important to identify risk factors in this situation.one risk due to breach of health and safety compliance responsibilities. Consider aligning your work with WHS Act 2011.Develop a proposal (maximum 5 pages) for resourcing to be presented for approval to the Operations General Manager. Include in your proposal: a brief description of what your proposal is aboutdescription of proposed implementation of resourcingbreakdown of costs that will be requiredbenefits to organisation and how important this is to the organisationa list of different approaches to developing key performance indicators for the organisationrisks to organisation by not implementingoutline of identified risks and contingency planningdescription of sources of information used to develop proposal (use internet research on technical aspects of e-commerce and importance to retailers; use consultation, use company financial projections).a conclusion of your main points of the proposalIn a third role-play, present the proposal 5-10 mins for approval by the Operations General Manager. The presentation of your proposal needs to be delivered to your assessor or you may deliver this to class peers with your assessor observing you. Submit a portfolio of your implementation documents as outlined in the specifications below. Keep copies of your work for use in Assessment Tasks 2and 3 and for your own records. Specifications You must: participate in three role-plays:consult with the Sales and Marketing Managerconsult with the technology consultantpresent the resourcing proposal for approval from the Operations General Managersubmit a planning portfolio, including:a summary of the operational environment of BBQfunaction planperformance indicators for operational and financial targets (in the new/amended operational plan)balanced scorecard for e-commerce customer service representativeproposal for resourcing. Your assessor will be looking for: reading and writing skills to use workplace information to write an operational plan that meets organisational requirementsoral communication skills to present information in a clear and professional manner, listen and comprehend information and confirm understanding through questioning and active listeningplanning and organisational skills to take responsibility for developing and implementing a plan to achieve operational goals including resource needs, strategy development, sequencing activities, identification of risks and impact on operational performance and generating contingency plansinteraction skills to communicate and empathise with stakeholders during consultation processes and collaborate to achieve business outcomesnumeracy skills to work with an existing budget to allocate and manage financial resourcesknowledge of models and methods for operational plansknowledge of the relationship between an operational plan and organisational objectivesknowledge of budgeting processesknowledge of legislation and regulations relevant to the operational plan of the organisationknowledge of intellectual property rights and responsibilities relevant to the operational planknowledge of using KPIs to develop business objectives. Appendix 1: Scenario – e-Commerce strategy Background to scenario The BBQfun Board of Directors and the CEO have decided to implement an e-commerce strategy to maintain or increase market share and revenue and satisfy customer needs in line with company strategic directions. You have been hired as an external consultant to manage operational planning activities for BBQfun’s e-commerce strategy. Under the strategy, BBQfun would offer all products in an online store. Stock could be stored at no extra cost at existing stores. Customers would cover delivery costs. Currently, BBQfun has a website, but this website lacks e-commerce functionality. The website would need to be redeveloped to incorporate this functionality in line with relevant technical specifications. Existing infrastructure, such as office and store configurations, would need to be adapted to the new strategy. Additionally, assets, such as delivery vehicles would need to be acquired. New staff would need to be recruited and existing staff retrained or informed of the e-commerce strategy and associated operational and performance targets. All resourcing must be acquired and operations undertaken in accordance with relevant internal and external standards – legislation and codes of practice; intellectual property (IP) rights and responsibilities; and organisational policies and procedures. Preliminary approval has been given to amend existing budget and operational planning to incorporate this strategy. It is now 30 June 2013 and e-commerce operations are expected to be underway in one year and three months, by 1 October 2014. Scenario task As the external consultant, you will need to determine physical and human resourcing requirements. Review organisational documentation and undertake preliminary research on e-commerce. Consult with the following personnel to determine resourcing needs: Sales and Marketing Managertechnology consultant. You will then need to plan physical and human resourcing and establish associated performance measures and targets. You may consider the Management Team of BBQfun, including team leaders in warehouses, to be resources for the implementation. Use description of their roles in operational planning when assigning responsibilities. Finally, you will need to propose resourcing and associated operational changes to the Operations General Manager, who will, in consultation with the CEO and Board of Directors, provide approval. Resourcing and budget: e-Commerce strategy After consulting with the management team at BBQfun, you determine: eight online sales and customer service people will be needed to manage increased online customerssince stores are overstaffed, four of the required customer service staff could be sourced from existing employees at the two storesno current staff have any online customer service skillsmanagement would like to develop people through re-training rather than hire new staff to handle online salessix delivery trucks needed to enable distributione-commerce website will take 50 days to developthree forklifts are neededfour additional warehouse workers are neededsix additional drivers are neededoffice space will need to be reconfigured. The following operational costs are associated with e-commerce business strategy. Costs: e-Commerce strategy (initial investment)ResourcesCostsPlant and equipmentDelivery trucks $50,000 x 6 = $300,000 Forklifts $10,000 x 3 = $30,000Promotional costs$300,000Website developers$100,000Staff trainingOnline customer service training $3,000 per staff member = $24,000Recruitment costs$30,000Management change leadership training for store managers and team leaders$3,000 each = 1 Brisbane store manager, 4 Brisbane team leaders, 1 Gold Coast store manager and 3 Gold Coast team leaders x $3,000 = $27,000Warehouse and office reconfiguration$50,000Total$861,000 In addition, ongoing staff costs will be incurred. The expected life of the initial investment is expected to be three years. Costs: e-Commerce strategy (ongoing)ResourcesCostsAdditional staff:(At $40,000 year average annual salary)4 online staff4 x $40,000 ($160,000) per year for 3 years = $480,0004 warehouse staff4 x $40,000 ($160,000) per year for 3 years = $480,0006 delivery drivers6 x $40,000 = $240,000 per year for 3 years = $720,000Total$1,680,000 The following expenses should be incurred in the 2014 financial year and be included in associated financial targets for spending: Additional staff$400,000Additional marketing$300,000Additional training$51,000Recruitment$30,000 Benefits to business According to financial projection prepared by the CFO, the business expects the proposed strategy to be profitable over three years. Profitability index over three yearsProfitability index (PI) = Present value (PV) of future cash flows Present value (PV) of initial investment PI>1 indicates project should be undertakenFY 2014 FY 2015 FY 2016 Cash flow from operations (minus ongoing operational costs associated with e-commerce such as additional staffing) $200,000 $500,000 $800,000 Present value of future cash flows (discounted future cash flows with respect to opportunity cost, inflation) $180,000 +$420,000+$600,000 = $1,200,000 Present value of initial investment $861,000 Profitability index 1.39 The expected additional profit for 2014 would be $200,000. This figure should be added to targets. Risks to implementation After consulting with stakeholders at BBQfun, you determine: medium risk of poor online saleshigh risk of customer service quality problems for online customers leading to a breach of consumer lawhigh risk of staff misunderstanding changes and considering online sales as threat to jobsmedium risk of not being able to recruit fully trained online stafflow risk of loss of IP relating to confidential information contained within the e-commerce strategy when employees leave the organisationmedium risk of loss of IP ownership if a relationship with the website developer contract ceaseslow level risk of not complying with WHS legislation through lack of risk assessment conducted on potential musculoskeletal disorders resulting from poor customer service workstation designmedium risk of wastage due to overstocking product in anticipation of increased online sales. All additional costs associated with contingency planning will be approved in accordance with BBQfun policies and procedures. Budget summary BBQfun 2013–2014 Approved budget by activities to be undertaken Income:Sales$11,000,000Barbecues and related equipment.Investment income$1,567,000Real estate investment income and rental of office space.Cost of goods sold (COGS)($5,890,000)Cost of provision of goods, purchase of stock, distribution.Gross profit$6,677,000Gross profit.Expenses:Wages, salaries and on costs$2,567,890Wages, salaries, superannuation, work cover insurance, payroll tax.Consultancy fees$50,000Project management: WHS management system; change management.Communication expenses$42,000Telephone, ISP costs, IT support.Marketing$920,000Cost of staff travel and associated costs for sales, etc.Premises expenses$1,000,000Rent, electricity, maintenance, cleaning.Insurance$120,000Liability insuranceDepreciation and amortisation$177,569Computers and capital equipment that is depreciated.Office supplies$65,068Printing and stationery, postage, amenities.Training$62,187Sales training: leadership, WHS, ethical/legal training.Total expenses$5,004,714Net profit$1,672,286Net income before tax. Operations General operating hours BBQfun operates Monday to Friday from 9 am to 5 pm. BBQfun will be operational year‑round except legislated holidays. Human resources Pat Mifsud, CEO Pat is responsible for working with the Board of Directors to oversee the business, set overall strategic directions, manage risk, and authorise large financial transactions. Riz Mehra, Chief Financial Officer Riz is responsible for preparing quarterly financial statements and overall budgeting. Riz is also responsible for overseeing budgets for cost centres and individual projects. At completion of financial quarters and at the end of projects, Riz is responsible for viewing budget variation reports and incorporating information into financial statements and financial projections. Kim Chen, Operations General Manager Kim is responsible for the day-to-day running of the company. Kim oversees the coordination of all operations. Kim is responsible for sponsoring projects that affect operations of the organisation as a whole. Kim works with the HR Manager to coordinate systems and projects to achieve company-wide synergy. Les Goodale, Human Resources (HR) Manager Les is responsible for the productive capacity and welfare of people at BBQfun. With the Operations General Manager, Les works to coordinate projects and management systems, such as performance management, recruitment and induction. Sam Lee, Marketing Manager Sam is responsible for the management of all aspects of marketing. Sam manages the activities of the marketing team. Pat Sweeney, Manager: Brisbane (Kenmore) Pat is responsible for the management of all aspects of the Brisbane store. Alex Mitchell, Manager: Gold Coast Alex is responsible for the management of all aspects of the Gold Coast store. A summary of human resources at each of the two locations appears below: Brisbane: Head officeEmployees: 30 full-time and casual sales and customer service people, check-out staff trained in use of POS – integrated with ERP (enterprise resource planning) and CRM (customer relationship management) software system senior management team (five) + one store manager four sales team leaders one delivery truck driver one warehouse worker. Gold Coast operationEmployees: 30 full-time and casual sales and customer service people, check-out staff trained in use of POS – integrated with ERP (enterprise resource planning) and CRM (customer relationship management) software system one store manager three sales team leaders one delivery truck driver one warehouse worker. Office requirements The office space is leased and will accommodate the necessary office equipment, such as computers, fax machine, photocopier and other engineering equipment. Brisbane: Head officeLocation: Kenmore. Size: 15,000 square metres (50% warehouse, 50% display area). Warehouse area used at 45% of capacity, but poorly configured to accommodate heavy increase in distribution traffic. Large mezzanine office space (used to be occupied by online retailer, currently subdivided and occupied by the management team). Loading bay with large capacity (most of area incorporated into customer display area, could be easily and cheaply reconfigured to accommodate extra distribution). Gold Coast operationLocation: Robina. Size: 12,000 square metres (50% warehouse, 50% display area). Warehouse area used at 50% of capacity, but poorly configured to accommodate heavy increase in distribution traffic. Large mezzanine open-plan office space with separate access (was previously rented out to a telemarketing company). Lots of spare office space. Loading bay with large capacity. Operating capital requirements BBQfun requires approximately five million dollars in working capital to sustain and ensure the business meets all opening and ongoing financial obligations. The company may experience financial pressures during slow sales periods. A long-term strategy to maintain a positive cash flow during these periods will be to diversify the company’s product range and develop business opportunities such as e‑commerce to boost sales and sales capability overall. Operational expensesWages, salaries and on-costs$2,567,890Consultancy fees$50,000Communication expenses$42,000Marketing$920,000Premises expenses$1,000,000Insurance$120,000Depreciation and amortisation$177,569Office supplies$65,068Training$62,187Total Expenses$5,004,714 Insurance requirements BBQfun will have to incur costs for business liability insurance. The estimated cost for this requirement is $100,000 per year. Operational workflow Conduct market research to determine needs.Negotiate with suppliers.Receive and warehouse products.Provide service and information to warehouse customers.Receive payment.Arrange delivery of items (if required). BBQfun accepts cash, EFTPOS and major credit cards. Credit terms are available for trades. Operational plan (with strategic objectives, measures and tasks) FY 2013–2014 BBQfun Operational Plan (with strategic objectives, measures and tasks) FY 2013–2014Objectives:Performance measuresTasks:1Engaging with customers through marketing, research and personalised service.Completion of market/marketing research. Completion of customer surveys. Completion of reports to identify marketing opportunities.Conduct quarterly surveys on customer satisfaction. Evaluation of market and marketing data to determine marketing opportunities.2Building reputation for quality products and quality customer service: Raise organisational profile by 20%. Improve client satisfaction performance by 25%.Percentage of brand recognition in sought-after categories in periodic customer surveys. Percentage of customers with positive view of organisational responsiveness, innovation, quality, ethics, safety. Number of customer complaints. Delivery times. Number of returned items.Audit of supplier quality. Regular contact with suppliers. Investigate resourcing needs: people, products. Fulfil resourcing and distribution needs in accordance with policies and procedures. Maintenance of enterprise resource management (ERP), point of sale (POS) and customer relationship management (CRM) systems.3Supporting people to perform via training and performance management.Numbers of injuries(Target = 0). Numbers of absentees(Target =
