Operation, Technology, and Management Plan (Essay Sample)

Operation, Technology, and Management Plan
Name:
Affiliation:
Date:
Key Aspects of Operations (possibilities include facilities, product process, equipment, labor force utilization):
Kesh Smoothie is currently operating in a facility located outside the main town. A small office is located around the owner’s home where the start-up team will be operating. The company will hire a part of the owner’s basement to act as the storage of the raw materials to be used in the production of the smoothies. The basement will be temperature regulated to ensure that the products do not go bad. It is important that we plan that for the future since we will need larger space. Some of the equipment we need include large fridge, tanks for storing the drinks and packaging space for the cups and the cartons.
Cost and Time efficiencies:
Once the drinks have been prepared, it is important for storing it in a cool temperature room. The drinks can then be shifted depending on the consumers’ demand. A refrigerator will help in preserving the smoothie for several hours before the consumers can drink them. At start up, the company will need more manual labors for making the drinks. However, once the machines and equipment have been set, the process can be automated. The smoothie will be packed in cups before being shipped to the various destinations.
Competitive Advantages:
The company’s competitive advantages come from the fact that all the smoothies are made from local ingredients from the region’s farmers. Also, the packaging used helps in conserving the environment thus ensuring that the company is environmental friendly and fulfilling its social requirement. The mix of the smoothie has health advantage and help in nutrition adding to the consumers. We plan on constructing a facility that will reduce the operation costs.
Problems Addressed and Overcome:
Some of the challenges that are expected in the course of operation include:
* Distribution challenge- once the drinks have been produced we will require a larger storage facility and refrigerators. Furthermore, we will need trucks and vans for distribution.
* Storage challenge- the products produced by the company are highly perishable. The storage materials should be working at every moment to avoid them from going bad. With large production, we will have to rent or hire more large storage facility.
1 Provide a rationale for the competitive advantages section using appropriate functional-level and business-level strategies to explain the competitive advantages.
Kesh Company has its own facility that helps in storing the products and preserving the drinks. This allows us to save on the costs and make more money available for research and development. All the products will be delivered locally so the distribution costs will be maintained at minimum. All the trucks are owned by the distribution team so it saves us the cost. We have established a distribution network that help on saving time. We plan to outsource the services of a distribution company once we hit the break-even point and the sales are beyond our limits. Operation scaling is our greatest challenge. Once the operations achieve optimality we will have to buy huge machines. We will be able to produce on large scale for less time.
Currently, we pack all the drinks but once we grow we will hire a packaging machines. We will borrow a loan from the local back for the investment. The loan will incur an interest cost of 3% per annum for 2 years. All the fruits are cleaned by our employees but cannot be stored for a long period. The small team helps in managing every inventory entering the company. Once the fruits are collected from the farmers, there are cleaned and stored in the refrigerator. The fruits will be blended depending on the demand of the consumers. The smoothie will be packed in disposable organic cups. If the consumers need any additive for the drinks, the employees will add on request. The distribution channels are sufficient for the current level of production. Once we enter in the second phase with a huge sales, we will buy a large storage facility and mixing machine. We however need a huge capital outlay for such investment.
2 Describe your research and development activities and explain how they will contribute to the company.
Research and development is among the top list of our concern. The non-alcoholic beverage industry is quite competitive and to remain relevant in the industry it is important to keep up with the trends. Global competition is stiff but with the right development plan we will remain viable in the market. Our plan is to invest in the IT department to ensure that we are up to date with the latest trends. We are working with the local government to ensure that we operate within the rules and regulations set by the government. Also, the collaboration will help in updating us on the events and occasions. Such exposure and awareness will increase our overall sales. At the moment, our focus is on smoothie drinks so we will invest heavily on developing better drinks. We plan on adding more varieties to our current menu of smoothies.
Technology Plan
Software Needs:
Kesh Smoothie is a start-up company that focuses on keeping the costs low but ensuring that the products offered are of high