BSBMGT402A – Implement operational plan
On-course QuestionnairePage 1
BSBMGT402A – Implement operational plan
On-course Questionnaire
Section 1 – Introduction to operations management- Use a diagram to illustrate the systems view of operations.
- Provide at least three examples of issues covered by industrial relations legislation which might impact on operational planning?
- Provide two examples of other legislation relevant to operational planning in your organisation and briefly describe how it is relevant.
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BSBMGT402A – Implement operational plan
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Section 2 – Planning concepts- List the steps in the planning process?
- Provide three examples of planning pitfalls that you should try to avoid?
- Select one of the planning tools described in Section 2 and provide an example of how you have / could use this tool to support your planning at work.
- Why is it important for Frontline Managers to have a basic understanding of budgets and how they can be used to monitor operational performance?
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BSBMGT402A – Implement operational plan
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Section 3 – Planning operations- Use the attached template (page 11) to prepare a simple business case / resource proposal for hiring a new staff member for your work team.
For the purpose of this activity you may need to make an assumption about why an additional staff member is required. You will also need to make estimates in relation to some of the costs of hiring a new staff member.
- Assume the business case / resource proposal you developed for the previous question has been approved. You now need to ensure that the new staff member has the necessary resources, equipment and services (e.g., training) to do their job properly.
Use the attached template (page 12) to prepare a simple resource proposal / purchase order for obtaining what is required. Try to make reasonable assumptions about the costs involved.
- With whom (in your organisation) would you check to ensure that your resource proposal included all of the necessary resources, equipment and training for the new employee?
- Within your organisation, how would you get your resource proposal approved?
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BSBMGT402A – Implement operational plan
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Business case for recruitment of new staff membersManager’s name: / Department:
Number of new staff members required:
Brief description of why new staff members are required:
Estimated financial cost for each additional staff member:
Component / Amount ($) / Notes
Annual salary
Recruitment costs
Initial training
Equipment, uniform, etc
Other
Expected benefits for the organisation (short-term and long-term):
Discussion of whether existing staff could be used to fill the need:
Expected impact if business case is unable to be approved:
Manager’s signature: / Date:
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BSBMGT402A – Implement operational plan
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Proposal for resources / equipment / servicesManager’s name: / Department:
Overview of why the requested resources / equipment / services are required:
List of required resources / equipment / services:
Description / Quantity required / Cost estimate ($) / Reasons required
Could any existing resources / equipment / services be used to meet the need?
Manager’s signature: / Date:
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BSBMGT402A – Implement operational plan
On-course QuestionnairePage 1
Section 3 – Planning operations (continued)Case study – Cricket Bats Unit
You are the manager of the Cricket Bats Unit of the Sporting Goods Manufacturing Company. Your team produces a medium performance bat which sells at $100 per unit.
Your production target for the coming year is 6,000 bats. As the manager, your key responsibility is ensuring your unit meets this target. The Sales and Marketing Division are responsible for selling the bats that you produce. Note that Sales and Marketing only guarantees sales up to the production target. If this target is exceeded, there is a risk that some bats will not be sold.
Other aspects of your responsibility include:
- Ordering and maintaining an adequate supply of raw materials – principally wood, rubber and glue
- Supervising a team of eight staff, including rostering, performance management, training, etc
- Ensuring all production equipment is maintained in good working condition and replaced as required
- Ensuring efficiency in the use of raw materials
- Minimising overhead expenses (e.g., electricity, rent, water, etc)
Last year your team only managed to produce 80% of its production target. The main reasons for this were:
(a)Staff illness – five of your staff were struck down by the flu and were off work for an average of three weeks each. Several of them were absent from work at the same time.
(b)Lack of availability of raw materials that were needed due to a strike by the staff of your wood supplier.
The previous year’s figures for raw materials wastage were also unacceptably high. In particular, the average amount of wood required to produce a bat was almost 15% higher than the industry average. Most of this was a result of errors and rework.
Based on the information provided above, the things you have covered on the course so far, and your own experience of operational planning, you are required to answer the following questions.
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- Decide on three key performance indicators that could be used to monitor the operational performance of your unit. How frequently do you think these indicators would need to be checked?
- Identify the key risks to achieving your production targets for the coming year (you must identify at least two). For each of these risks, briefly outline the contingency plans / preventative plans you would put in place.
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Section 4 – Implement resource acquisition- Imagine you were recruiting a new staff member for your team. Identify the five qualities, skills or attributes that you feel are most important for the position.
- Develop a list of at least three questions that you would use if interviewing a person for the position.
- Provide an example of a question you would avoid using if interviewing a person for the position and briefly explain why you should avoid the question.
- Select a product or service for which you might need to use an external supplier and identify at least three criteria that you would use when evaluating and selecting the supplier.
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BSBMGT402A – Implement operational plan
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Section 5 – Monitor operational performanceCase study – Cricket Bats Unit (continued)
You may wish to refer to Part 1 of the Cricket Bats Unit case study (page 13) before continuing.
You decide to formally review your unit’s operational performance every three months (in addition to more frequent informal reviews). After the first three month period, you generate a production report and ask the organisation’s accountant to provide you with a profit and loss statement for the unit. A copy of these reports is shown below.
You are disappointed to find that your profit for the period is considerably lower than was budgeted for.
Cricket Bats Unit – Production reportItem / Forecast / Actual / Variance / % Variance
# Bats produced / 1,500 / 1,650
Average wood required per bat / 1.2 kg / 1.44 kg
Average weekly hours worked per employee / 35 / 30
Total hours worked / 3,450 / 3,300
Hours worked per bat produced / 2.3 / 2.0
Number of hours overtime worked* / 150 / 350
Note: Workers are paid at double the standard rate for all overtime worked
Cricket Bats Unit – Profit and loss statementItem / Budget / Actual / Variance / % Variance
Total Sales Revenue
1,650 bats @ $100 each / $ 150,000 / $ 165,000
Total Costs / $ 125,000 / $ 156,000
Cost of materials / $ 15,000 / $ 30,000
Cost of labour / $ 100,000 / $ 115,000
Overhead costs / $ 10,000 / $ 11,000
Profit / $ 25,000 / $ 9,000
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- Your manager has been asked to deliver a short presentation to the Board explaining why the unit’s profit targets were not achieved, and how she will rectify the situation over the next three months.
She has asked you to assist her in putting her presentation together by completing the variance and % variance columns in the production report and profit and loss statement, and then answering the following questions:
(a)What were the two key variances that contributed to the lower than expected profit?
(b)Is the large variance in the cost of materials mainly due to inefficient use of wood by the production team? Why or why not? If not, what other explanation(s) could there be?
(c)Based on the information contained in the production report, provide two explanations for the variance in the ‘cost of labour’ for the period.
(d)What two key areas will you target to turn your unit’s financial performance around over the next three months? What actions will you take in each of these areas?
(e)What recommendation(s) would you make for variations to the operational plan for the Cricket Bats Unit? Your recommendation(s) could relate to production targets, budget targets, resource use, staffing levels, etc. Please justify your recommendation(s).
- Over the past few months you have made a special effort to spend some time in the production area checking on progress. During this period, you have built up the following impressions:
- John, your most experienced employee, seems to be spending a lot of time chatting with other staff. His production output is still acceptable, but not as high as it used to be. You are also concerned that his chatting is affecting the output of others.
- While satisfied with the enthusiasm and production output of your newest worker, Kevin, his wastage seems to be quite high – his scrap pile is always much larger than the others.
(a)How would you characterise John and Kevin in terms of ability and motivation?
(b)Based on the theory of situational leadership, what supervision approaches would you use for John and Kevin (i.e., delegating, participating, explaining / selling, or telling)?
(c)What strategies would you use to support John and Kevin to work more economically and effectively?
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