Annual Budget Monitoring & Review

This assignment requires students to analyze and review annual budgets, applying performance management practices (De Leeuw & van den Berg, 2011) to monitor financial performance. It involves evaluating vendor-managed inventory systems (Govindan, 2013), supply chain agility competencies (Ngai et al., 2011), and internal/external contingencies for information integration (Wong et al., 2011). Students should present their findings in a clear, concise manner.

Managing Operational
Plan

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Q1. (a) Need of resources to develop an operation plan........................................................4
Q1. (b) Consultation process and requirement of operation plans.........................................4
Q2. Key performance indicators that can help in measuring the overall organisational
performance. ..........................................................................................................................5
Q3. Importance of contingency plan .....................................................................................5
Q4. (a) Methods used to obtain the approval of operational plan.........................................5
Q4. (b) Reason why approval for operation plan is important...............................................6
Q5. Way of planning and managing the resources in planning process.................................6
Q6. Some performance measures that help to achieve profitability and productivity...........6
Q7. (a) Financial supportive document that helps to monitor and review productivity........7
Q7. (b) Answering following questions.................................................................................7
Q8. Steps used to identify following matters.........................................................................8
Q9. Set up system of mentoring and coaching that help to support team members...............8
Q10. Examples that help in documenting the overall organisation’s performance................9
TASK 2............................................................................................................................................9
Q1. Develop operation plan....................................................................................................9
Q2. Implementation plan......................................................................................................11
Q3. Resource acquisition......................................................................................................11
Q4. Monitoring performance of business.............................................................................12
Q4 (a). Identify the systems you will put in place to monitor your business performance..12
Q4(b). What financial reports can you use to monitor the financial performance of your new
business.................................................................................................................................12
Q4(c). If you have made some variations in the existing operational plan on the basis of the
monitoring and review process, what should you do?.........................................................13
Q4(d). List all the documents would you like to record in the process of managing this
expansion plan......................................................................................................................13
CONCLUSION.............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
It is necessary for every organisation to develop and monitor their operation plans that
can help to achieve higher profitability and productivity. With the help of operation plan,
business is able to make effective and efficient practices at their workplace. Business should use
their resources in an optimum manner. With the help of operation planning, business can easily
analyse and measure their performance (De Leeuw and van den Berg, 2011). There are various
sources available that can help in providing data and information which help in increasing
company’s productivity. Business has made various plans and strategies that can help to
implement their operations and activities. The present report is based on managing operational
plan of Apple which is located in Australia whereby organisational hierarchy is explained. Also,
the requirement of resources needed to formulate an organisational plan is discussed. Further,
key performance indicators that help in measuring the overall organisational performance is
studied here.
TASK 1
Q1. (a) Need of resources to develop an operation plan
It is necessary for every business to make operation plans that can help to achieve goals
and objectives in the long term (Denney, 2011). The organisation assesses resources such as raw
material or equipment, software, human resources and infrastructure that help to develop an
operation’s plan.
Q1. (b) Consultation process and requirement of operation plans
Consultation process is a part of the operational planning process. This plays an
important role in developing and improving the operational plan to analyse the researches. It also
increases the motivation level of people so that they can be able to give their ideas and thoughts
relating to any matter. Top consultants are the people like college and specialist resource
manager and relevant personnel who help in meeting the researching requirement of an operation
plan (Fillinger and Lindsay, 2011).
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Q2. Key performance indicators that can help in measuring the overall organisational
performance.
The key performance is also known as the performance indicator. It is a kind of
performance measurement. KPI has right to review the organisation and individual operations
and performance. Company has to make SMART goals and objectives. The target should be
specific, measurable, achievable and realistic as well as time bounded. These indicators largely
help to develop the operations plan. They continuously analyse the performance of worker and
also provide training and development programme in order to increase the motivation level of
employees (Govindan, 2013). These tools accomplish organisation’s performance and objectives.
With the help of KPI, employees can easily achieve the organisational objective and also know
their responsibility. They can provide quality services to their clients and stakeholders.
Employees are also able to see the progress of their department and allocate each task to all
workers that can help to make plans and procedures.
Q3. Importance of contingency plan
Health care practice is important to develop and implement the contingency plans.
Contingency plan is also a part of the operation planning process. This plan helps to analyse and
discuss all necessary problems and also make necessary decisions that would help in removing
these contingent problems. These plans and procedures are improved and developed so this can
able to give suggestion or advices that largely influence the business operation and activities
(Hämäläinen, Sanneck and Sartori, 2012). This is very important for health and care practice
which help to develop and implement contingency plan. With the help of this plan, manager can
easily analyse the risk factors and also see the capabilities of workers that help to remove these
existed risk. Business made various strategic this can help to influence the business operation
and activities. This plan also help to analyse all resources in term of financial, human, physical
and also indicate the areas where these resource are largely used. Plans also help in developing
and made budget and reports that can help to meet all stages of operation plans.
Q4. (a) Methods used to obtain the approval of operational plan
The method which we used to undertake for obtaining the approval of operation plan is
the consultation with stakeholders. To send invitation to stakeholder for attending meeting. The
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stakeholder include employees are mainly involved in this process. They can provide a draft
copy that gives the opportunity to provide any suggestion (Mu and et. al., 2011).
Q4. (b) Reason why approval for operation plan is important
It is important to obtain the approval from relevant stakeholder as they are able to provide
any suggestion or advice relating to matter. They also make any final modification and can deal
with goals and objectives against the strategies. They can allocate all resources that can help in
increasing company’s productivity and profitability (Ngai and et. al., 2011).
Q5. Way of planning and managing the resources in planning process
Organisation should follow the plans and procedures that can help to recruit best suitable
people at right job at correct time. There are various process are as follows:
 It is necessary for organisation to analyse their goals and objectives.
 They also focus the worker capabilities and abilities that helps to better perform
(Rushton, Croucher and Baker, 2014).
 They have to analyse the needs and want of workers and provide them training and
development programme. This can help to increase the skills and knowledge of workers.
 They also identify the shortage and supply that can help to fill gaps. This can influence
the organisation activities and operations.
 They can plan the recruitment and selection procedure. This can help to recruit potential
and competent candidate in their workplace. They prepare the recruitment report on the
basis of operational planning. The report includes the job analysis, advertisement and
training and induction programme.
 They also establish the incentive, reward system and training to their workers, so
employees can perform their task in an efficient manner.
 The important element is to make the planning related to communication.
Q6. Some performance measures that help to achieve profitability and productivity
Some of the performance measures that are used to achieve profitability and productivity
are described as below:
 Benchmarking: It is used to analyse the actual profitability of firm by comparing it with
the expected profits.
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 Time frames: For each activity, a time frame or dead line should be fixed by the
corporation within which that task has to be finished.
 Setting range: Range should be set for determining performance that shows which task
is below or above the set target.
 Target: An aim and objectives should be formulated as achievement of same shows
whether the performance is better or not.
Q7. (a) Financial supportive document that helps to monitor and review productivity
The financial supportive document are budgets and actual financial information which
help to monitor and review profits and productivity of the operational plan (Wurman and et. al.,
2012).
Q7. (b) Answering following questions
1. Has the store met its sales target for the quarter?
Ans. No, it is not meeting the sales target for quarter as budget value is $50, 0000 but they have
completed their sales target for the quarter that is only $ 40, 0000.
2. Indicate areas where expenses have gone over the budgeted figure.
Ans. There are various areas that represent the expenses has gone over budgeted figures such as
postage, wages and power.
3. Is store gaining profit? Determine the difference between profits in percentage?
Ans. No, the store is not making profits because the budgeted figure is 115000 but gained profit
is only $55000. It means that there is loss of $60000. Difference in percentage in the profit is
30%.
4. What strategies are used to increase profits in next quarter?
Ans. The contingency strategies are implemented that can help in improving and developing the
profit margin for next year. In this strategy, it is necessary to accept the substitution part which
helps in gaining more profits. If something is more costly than budget of company then substitute
factors are appropriate as they help in resolving various problems.
Some other strategies used to increase the profits are listed below:
 Lowering the prices of products: Profits can be earned by minimising the prices of
goods or services. By this, large number of customers get attracted towards the firm and
as a result, selling price will get increased (Wong, Lai and Cheng, 2011).
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 Making quality based products: Quality level of goods should be increased so that it
will be liked by most of the users. This also aids in gaining competitive advantages.
Q8. Steps used to identify following matters
Non performance
The non- performance of employees can be determined by following steps:
 The financial record should be created in the quarter of every year that shows percentage
of profits earned by venture. If firm's profit has lowered then this shows the non-
performance.
 If company is not achieving its set aim and objectives then non-performance can be
detected.
 Decrement in number of consumers also determines non-performance of the venture.
 Recommend solution
Company should mainly focus on the following areas:
 Recruiting skilled workers: Aim and objectives can be achieved by hiring skilled
workers as they have the ability to capture those in minimum interval of time.
 Focusing on the demand of users: Products should be manufactured as per requirement
of users as this will increase the selling rate of goods.
 Manufacturing high quality products: The products manufactured by organisation
should be of high quality. This attracts a large number of consumers.
Rectify solution
The solution can be rectified by using:
 HRM: Venture should follow practices of human resource management for hiring skilled
workers.
 Survey conduction: The demands of users can be identified through conducting surveys
in local areas.
Q9. Set up system of mentoring and coaching that help to support team members
Coaching and mentoring play important roles for stagnation. This can improve the
knowledge and skills of workers. Workers can perform their work with high efficiency to
effectually accomplish the goals and objective of organisation. With the help of coaching,
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employee can develop and improve their specific skills and knowledge. This can help to
complete the task of business. The coaching and mentoring role plays by manager for improving
the behaviour and attitude of workers related to task (Resource acquisition strategies in business
relationships, 2017). Mentoring helps to encourage the ability and capability of individuals. With
the help of mentoring, worker has able to increase and control their potential capacity, increasing
skills and knowledge. Worker has to perform their work with full efficiency and effectiveness.
Employee can easily achieve the goals and objective of organisation with the help of this
mentoring process.
Q10. Examples that help in documenting the overall organisation’s performance
Performance management process refers to maintain the understanding level of employer
and employee so that it can help to accomplish goals and objective of business enterprise. This
also checks records that can support the performance of workers as well as their activities and
operations of organisation.
TASK 2
Q1. Develop operation plan
1. Listing all the resource requirements needed in relation to expansion
Various resources required by the corporation are explained below:
 Financial resource: Most of the important resource is money or funds that are needed by
the firm. It can be acquired by various sources such as personal account of venture, loans
from bank, money received from investors, etc.
 Human resource: The success of company is mainly dependent on the strength and
skills of workers. The recruitment of experienced people assures that goals and objectives
can be achieved effectively.
 Physical resource: Enterprise requires proper physical resources such as appropriate
working space, adequate information system, all relevant marking details, telephone line,
raw materials, modern software, machinery and equipment, etc.
2. Listing all the personnel involved in operational planning consultation process
 Employees working in different department
 Departmental Head
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 Project coordinator
 Supervisor
 Consultant
3. Developing operation plan
Project objective Performance management Actions activities
Creating new branches at
different locations
Identifying number of new
branches that have been built
Allocating deadlines of
projects
Hiring more employees as per
the new workload
Giving incentives to workers
for extra work
Offering new range of
products
Bench marking
Setting target ranges
Using innovation in the new
products
Setting new prices for those
products
4. Naming possible risks associated and possible solutions
Some of the determined risk factors are listed as below:
 Failure of new production
 Natural disaster
 Employee turnover due to increased workload
 Decrement in the number of users
5. Specialist advice required
Company can take the advice of successful entrepreneurs of their business fields.
6. Developing contingency plan for managing those risk if they occur
To manage those risks, venture can use following the ways:
 In case of failure of new products, company should handle all the risks related to that
product in advance before launching them.
 Employee’s migration can be minimised by giving them new incentive plans for extra
work so that their motivation level will get increased.
 Decrement in the number of consumers can be handled by manufacturing quality based
products and by providing them new offers.
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Q2. Implementation plan
Action activities
from part
Date Person
responsible
Budget Monitoring
measure
Recruitment of
new employee
25/07/17 HR manger 100000 Operation
Training and
development
programme
5 July 2017 Organisation
member
50000 Learning and
innovation
Machineries 10/07/17 Technical
department
500000 Operation
Q3. Resource acquisition
Number and type of staff that help to expand new business
The staff should be increased that help to expand new business. The number may be 100
to 150. The type of employees needed includes HR manager, employees of technical department
as well as non-technical department.
Type of additional staff requirement in new location
For a new location, firm needs technical, non-technical, working of accounting fields,
watch man, assistants, workers for cleaning department, HR manager, etc.
Develop job description:
Position title: Project Manager
Reporting to: Senior Manager
Commencement date: 25 Sept 2017
Probation period: 6 Months
Roles and responsibilities:
 Planning and defining scope
 Activity planning and sequencing
 Time Estimating
 Forming a budget
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 Risk analysis
 Team leadership
 Controlling quality
Key selection criteria
Some of the key selection criteria for a project manager are:
 Good communication skill
 Enthusiasm
 Capable of delegating tasks
 Problem solving skills
 Team building skills
Q4. Monitoring performance of business
Q4 (a). Identify the systems you will put in place to monitor your business performance
Some of the systems that will be put in place to monitor are as follows:
 Performance of technical workers;
 Working of non-technical employees;
 Accounts department;
 HR department;
 Finance sector;
 Financial status that help to monitor business performance.
Q4 (b). What financial reports can you use to monitor the financial performance of your new
business
Some of the reports that should be analyzed for monitoring the financial performance are:
 Reports having the comparison of actual and budgeted figures;
 Reports of manager's performance;
 Reports of next year budget on the basis of present financial reports.
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Q4 (c). If you have made some variations in the existing operational plan on the basis of the
monitoring and review process, what should you do?
After monitoring and reviewing the process, organization should develop below listed plans:
 Developing the contingency plan;
 Show the reports of monitoring to the upper level of managers;
 Make documentation as per the review processes about the performance of the staff
members;
 Highlight those things which needed to be modified.
Q4 (d). List all the documents would you like to record in the process of managing this
expansion plan
The documents needed to record the management of business plan are:
 Documents regarding budgets ;
 HR record of recruited people;
 Documents of monitoring process ;
 Documents consisting of list of raw materials.
CONCLUSION
From the above report, it can be concluded that it is necessary for organization to make
operation planning that can develop and improve the performance of business. Contingency plan
is also an important part of operation planning process. So, business can analyze and monitor
their productivity and profitability with the help of same. It has also been assessed that business
makes the budgets every year which helps to monitor and review their financial performance.
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REFERENCES
Books and Journals
De Leeuw, S. and van den Berg, J. P., 2011. Improving operational performance by influencing
shopfloor behavior via performance management practices. Journal of Operations
Management. 29(3). pp.224-235.
Denney, D., 2011. Managed-Pressure Drilling To Counteract Lost-Circulation and High-
Pressure-Gas Zones: South Wapiti Red Rock Field. Journal of Petroleum Technology.
63(04). pp .90-92.
Fillinger, U. and Lindsay, S.W., 2011. Larval source management for malaria control in Africa:
myths and reality. Malaria journal. 10(1). p.353.
Govindan, K., 2013. Vendor-managed inventory: a review based on dimensions. International
Journal of Production Research. 51(13). pp.3808-3835.
Hämäläinen, S., Sanneck, H. and Sartori, C. eds., 2012. LTE self-organising networks (SON):
network management automation for operational efficiency. John Wiley & Sons.
Mu, Q. and et. al., 2011. Disruption management of the vehicle routing problem with vehicle
breakdown. Journal of the Operational Research Society. 62(4). pp.742-749.
Ngai, E.W. and et. al., 2011. Information technology, operational, and management
competencies for supply chain agility: Findings from case studies. The Journal of
Strategic Information Systems. 20(3). pp.232-249.
Rushton, A., Croucher, P. and Baker, P., 2014. The handbook of logistics and distribution
management: Understanding the supply chain. Kogan Page Publishers.
Wong, C. W., Lai, K. H. and Cheng, T. C. E., 2011. Value of information integration to supply
chain management: roles of internal and external contingencies. Journal of Management
Information Systems. 28(3). pp.161-200.
Wurman, J. and et. al., 2012. The second verification of the origins of rotation in tornadoes
experiment: VORTEX2. Bulletin of the American Meteorological Society. 93(8).
pp.1147-1170.
Online
Resource acquisition strategies in business relationships. 2017. [Online]. Available through:
<http://www.sciencedirect.com/science/article/pii/S0019850111000691>. [Accessed on 8
September 2017].
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