Implementation of a Business

Operation Plan
 Implementing the operations plan is one of the
most difficult processes to undergo due to the details
that the entrepreneur has to consider. It covers the
4M’s of operations that are equally important to
cover all aspects of business operations. The flow of
implementation of these 4M’s will depend on what
business model or nature/type model, the
entrepreneur must implement the methods (process)
that he or she envisioned in the operations plan,
hire the right man power to do the job description
crafted, acquire or lease machineries, and use relevant
technologies such as job e-commerce, in conducting
businesses and source materials from the most
efficient and practical suppliers. Similar to the
marketing plan implementation, all of these will be
learned in the module using the practical approach of
being with real entrepreneur rather than focusing
operations plan.
 You will be acquainted with a business example
that involves both manufacturing and service, so you
can relate how to operate and run a business from the
beginning until it matures and becomes an established
venture.

Big Idea
Implementing the operations plan is one of
the most challenging to actualize
Methods
The implementation of processes or methods in the operations plan will depend on the entrepreneur’s
business type or model. The general classification of the business type model would be the
manufacturing business or service business. For your better appreciation these two will be discussed
in the following hybrid business, which is both a manufacturing and a service business.
 EXAMPLE :
Roainne’s Homemade Batutay Business in Cabanatuan City
Mr. Ron Lopez and Mrs. Allaine Lopez decided to put up
Roianne’s Batutay Longganisa Business in Cabanatuan City. Based
on their marketing research, they discovered that not only the people
of Cabanatuan like the taste of batutay, the native beef longganisa,
but also the nearby areas including Metro Manila. They plan to
manufacture their own batutay because Ron just came from his one-
year training from TESDA where he learned how to make
longganisa.
STEPS AND PROCESS OF THE BUSINESS
Step 1. Register the business. Go to the city or
municipality hall’s business permit licensing office to
secure a business permit, and to the Department of
Trade and Industry for the business name.

Example: Business Name: Roianne’s Batutay

Business Classification: Manufacturing and Service
Step 2. Determine the manufacturing elements or
ingredients of the product. Determine also the service
elements for the mini-restaurant and longganisa delivery
service.
Manufacturing elements:
•Input
*Beef
*Beef fat
*Soy sauce
*Sugar
*Garlic
*Salt
*Black pepper
*Cooking oil
*Pork isaw (intestines)
• Process
*Grinding of the beef
*Mixing of the ingredients
*Filling the pork isaw with beef mixture
*Packaging
Service elements ‒ delivery service
• Input
*Mobile phone (customer and Roianne’s staff)
*Social media account (customer and Roianne’s staff)
*Landline phone (customer and Roianne’s staff)
*Motorcycle
*Delivery staff
*Customer’s order request
•Processes
*Cooking process (for cooked longganisa orders)
*Ordering process
*Payment process
• Output
*Batutay deliver and payment
Service elements‒ mini-restaurant:
•Tangible elements (Servicescape)
*20 chairs
*Four tables
*Big rice cooker
*Frying pan
*Uncooked longganisa
*Eggs
*Garlic
*Rice
*Cooking oil
• Intangible elements
*Cooking process
*Ordering process‒ dine-in and take out
*Payment process
• Output
*Batutay meal
Step 3. Decide the most practical and efficient manufacturing site
and location: home-based or rent/buy a commercial space.
Manufacturing site: home-based and commercial space renting
Location: Barangay Aduas Centro, Cabanatuan City (near Cabanatuan City Public
Market)

Step 4. Decide whether to follow a product-based or process-

based internal layout, and then draw the manufacturing process
flow.
Internal layout: Product-based layout (facilities are prearranged according to the
manufacturing process flow)
Manufacturing process flow:

1.Using the manually operated grinder, grind the beef fat and meat.
2.Mix the ingredients in the following order:
• Mince the garlic and mix with the ground beef meat and fats.
•Add soy sauce and pepper to taste.
•Add sugar and salt to taste.
•Mix all the ingredients thoroughly.
3.Fill the pork isaw with the beef meat mixture using a manually operated
machine. After this, tie the pork isaw and cut it.
4.Pack the finished product.
Batutay delivery process flow:
1.Costumer sends his or her order via text message or via social media private message.
2.Upon receipt of the text message or social media private message, a Roianne staff will
prepare the order and receipt and instruct the delivery staff to deliver to the customer
within an hour.
3.Delivery staff will deliver the batutay to the customer and get payment.

Mini-restaurant service delivery process flow:

1.Customer goes to the mini-restaurant and orders a batutay meal (garlic rice, batutay,
and egg). Aside from the Batutay meal, the menu also includes tocino, fried milkfish,
tapa, hotdog, sausage, and sardines meal. Beverages include softdrinks, mineral water,
coffee, and juice drinks.
2.Customer pays at the cashier.
3.Roainne staff serves the longganisa meal.
Step 5: Decide on what distribution process and distribution
channel will be most economical for the business.

Distribution process and channel: Because the business is still

a startup, the finished products will be distributed at the Cabanatuan
City Public Market where the longganisa products are usually being
sold. Roainne will rent a small commercial space there. The
products will also be available at Roainne’s residence and in the
mini-restaurant to cater to the customers in their barangay. Roainne
will also introduce the “Batutay Text, Landline, and Social Media
Delivery Service.”
MANPOWER
Because the business model has already been identified and set up, the next aspect of
operations to be looked into identify how many persons are needed and what their
qualification are to operate the business
Step 1. Create a table of organization to show a graphical description of the manpower
complement of the business.
Step 2. Prepare a job description for each member of the organization so that everyone is
aware of what is expected of him or her.

 Ron Lopez – Being the general manager, he is in charge of the overall management of the business from
marketing, to operations, to human resources, and to finance.
 Allaine Lopez – She will manage the mini-restaurant and delivery of batutay, including the three
restaurant staff members.
 Restaurant assistant – They will be in charge of cooking, packaging the orders, serving customers, and
cleaning the mini-restaurant.
*Delivery staff member – He or she will be in charge of receiving orders via text or social media and delivery of batutay.
*Supermarket staff members – They will be in charge of selling, cashiering, and inventory management at the supermarket.
*Manufacturing staff members – They will be in charge of the production batutay.

Step 3. List the qualifications of employees needed and decided where to source them.
*Restaurant assistant – K to 12 graduates (specifically with background in restaurant management), customer-friendly, hardworking, and honest.
*Delivery staff member – K to 12 graduate and should be skilled in driving a motorcycle (should also have a license, is customer-friendly, and
honest)
*Supermarket staff member – K to 12 graduate and should be
skilled in selling, cashiering, and inventory management
*Manufacturing staff member – K to 12 graduate and should be
skilled in long ganisa making.
Step 4. Decide on where source candidates (e,g., friends, relatives,
employment agencies, referrals, manpower agencies, newspaper,
social media, walk-ins).

Roainne will source candidates from friends’ referral so that

they can also vouch for the character of the candidates.
Step 5. Interview the potential condidates and ask them relevant questions about the job.
Ron and Allaine Lopez should ask potential candidates about the work ethics,
attitude towards customers, service road knowledge (delivery staff), according, and sales
experience.
Step 6. Choose the best candidates and provide a job offer. The job offer should contain the
following details.
Step 7. Ensure there is an employee training and developing program for the business.
Mr. and Mrs. Lopez will be in charge of training their five employees on the
following aspects:
Cashiering
Customer service
Table setting
Longganisa-making
Each of the staff members will also be rotated position of the training.
Machine
Third in the list of 4Ms to be considered is the machine. It could be
the physical equipment or technology that can help the business
operates seamlessly and with quality.

The Three(3) Steps

Step 1. List all the equipment and technology needed and decide whether it is
economical to purchase them or just rent them.
Step 2. Understand how to use these machine properly, and apply all the
necessary safety precaution before using them.
Step 3. List alternate options in case the equipment becomes dysfunctional.
Step 1
Step 1. List all the equipment and technology needed and decide
whether it is economical to purchase them or just rent the
Example:
 General manager:
• Laptop  Mini-restaurant
• Big rice cooker
 Manufacturing Site • Big frying pan
• Meat grinder • Gas range
• Manually operated machine for the filling of meat into • Cashiering machine
the pork isaw Freezer • Coffee maker
• Delivery van for the buying of ingredients and for • Big refrigerator
delivering the finished product to the supermarket • Electric fan
• Air conditioner
 Deliver Business • Television
• Motorcycle  Public Market Stall
• Smartphone • Small freezer
• Data plan or postpaid plan • Electric fan
• Landline
Step 2
Understand how to use these machine properly, and
apply all the necessary safety precaution before using them.
Protect these pieces of equipment from physical and security
risk.
Step 3
List alternate options in case the equipment becomes
dysfunctional. They key is for the business to continue
no matter what. Know where to find repair shops when
needed.
Materials
The last M in the 4Ms of operations is materials. The general premise for materials
is where to source these easily with a cheaper price and of goods quality. The entrepreneur
must have a minimum of two or more major supplies for contingency purposes (e.g., in
case one supplier is unable to deliver).

The Three(3) Steps

 Step1. To determine the requirements for materials, the entrepreneur must decide on which
path to choose
 Step 2. List all the materials needed for the manufacturing or service business and decide
where to source them efficiently (at least two suppliers).
 Step 3. Implement efficient logistics management—warehousing, transportation. And
inventory management.
 Step 1
To determine the requirements for materials, the entrepreneur must decide on
which path to choose: (1) manufacture own products or offer own services, (2) outsource
manufacturing or service activities to a third party, and (3) purchase finished products or
service from a manufacturer.

Step Sample:
As shown above, Roainne chose option 1: manufacture own products or offer own
service. They have decided on this because marketing research has shown that this is a feasible
business. Mr. and Mrs. Lopez decided to invest on the manufacturing/service business,
manpower, machines, and materials on their own so that they will also have independence in
running the business. They also want to disrupt and provide value-added service to the
customers that the usual longganisa entrepreneurs do not offer.
 Step 2
List all the materials needed for the manufacturing or service business
and decide where to source them efficiently (at least two suppliers).

Step Sample:
Roainne will buy the batutay ingredients and mini-restaurant supplies in bulk
depending on the market demand from the Sangitan Public Market. This is where fresh
produce from nearby provinces are distributed. Not only are they fresh but also very cheap.
Ideally the ingredients will be bought very early in the morning (around 4 AM), so they can
still get the freshest ingredients and supplies. Other products in the mini-restaurant such as
soft drinks will be source from two distributors. In case these are no available ingredients at
the Sangitan Public Market, Roainne will buy at the Cabanatuan City Public Market.
 Step 3
Implement efficient logistics management—warehousing, transportation.
And inventory management.

Step Sample:
• Warehousing – Roainne will buy a big freezer sufficient to initially store at least 50 kilos of longganisa. If the
business expands, another freezer will be bought to cover the orders from the three businesses—supermarket,
mini-restaurant, and delivery service. A small freezer will also be bought for the supermarket stall.
• Transportation –­­A delivery van will be purchased by the business to transport the ingredients from the
Sangitan Public Market to the manufacturing site and to transport the finished products from the manufacturing
site to the Cabanatuan City Public Market stall. They will initially be driven by Mr. Ron Lopez. If the business
expands, he will hire a driver.
• Inventory management ­– It is ideal to sell all homemade batutay the day they were produced. But because
longganisa can be stored in the freezer for a long time, it is also ideal to produce in bulk and store the
longganisa in the freezer. This will save Roainne in manufacturing costs because they will produce them in bulk.
The concept of “economies of scale” is very much applicable.
 Producing in bulk also address the demands in the public
market stall, in the minirestuarant, and in the delivery orders.
They will be able to determine the actual number of Batutay
kilos to be produced and stored once they operate. At the onset,
they should be conservative first to avoid spoilage. The
business should monitor the demand every day to match with
the supplies to be produced. This will also largely depend on
marketing strategies Roinne’s Batutay Business will implement.
THAT’S ALL THANK YOU!

MAY GOD BLESS US ALL