business plan operation strategy/start up cost

  

Describe the process of your business operation from the first moment it opens to when it closes. Customer touch points. How do you deal with customer issues? Returns? Reward loyal customers, etc. Include an operations flow chart

Discuss potential suppliers

Production or service delivery process- use graphs and charts to map

Product/service returns process

Supplier relationship management

Logistics

Packaging

Transportation or delivery process

Ethical Considerations

Physical Plant Layout

Startup expenses (Ass. 4 – week 5) – use the template provided (course info tab). Recommend that you include a line item that is for Contingency Funds – for unexpected emergencies like your building repairs are not done when you expected them to and you have to pay an extra 2 months’ rent before you open your business, etc. Cite sources for all your data and assumptions. You will need discussion about the chart – do not just insert the chart and think you have completed this aspect of the assignment.

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3

Paw Pals Boarding

Week 3 / operations

Anthony Bahlman

Department of Business, UMass Global

BUSU 640: Capstone

Professor Ginger Silverman

02/04/2023

Operations Plan for Paw Pals Boarding

Introduction:

The operations plan for Paw Pals Boarding outlines the key components of the supply chain, including the development of the supply chain, key suppliers and customers, production and service delivery procedures, and overall supplier relationship management. Additionally, the operations plan includes logistics, packaging, transportation, physical plant layout, workflow of the supply chain, organizational chart of the logistics department, DMAIC process, ethical considerations, and start-up expenses.

Supply Chain Development:

Supply chain development is a critical aspect of the success of any business, as it impacts the time to market, quality, innovation, and cost of products and services. The development of the supply chain requires careful planning and management to ensure that all key factors are considered and optimized. In order to create a successful supply chain, businesses must focus on developing strong relationships with suppliers, optimizing logistics and transportation, and ensuring that ethical considerations are incorporated into all aspects of the supply chain.

One of the key elements of supply chain development is the selection and management of suppliers. This involves identifying and assessing potential suppliers, establishing contracts, and monitoring supplier performance. It is important to choose suppliers who are reliable, able to deliver products and services of the desired quality, and who adhere to ethical standards. The selection of suppliers should also take into account factors such as cost, delivery time, and product innovation.

In addition to supplier selection, logistics and transportation are also critical components of supply chain development. Effective logistics management can help to reduce costs, improve delivery times, and increase the efficiency of the supply chain. This includes optimizing the flow of goods, managing inventory levels, and ensuring that the right products are delivered to the right place at the right time. Effective transportation management is also important, as it helps to ensure that products are delivered safely and efficiently, and that delivery times are optimized.

Key Suppliers and Customers:

The key suppliers for Paw Pals Boarding will include pet food manufacturers, veterinary suppliers, and equipment suppliers. The key customers for the boarding facility will be pet owners who require pet care services for their pets.

List of Potential Suppliers:

Paw Pals Boarding will develop a list of potential suppliers based on their reputation, quality of products and services, and cost. This list will be reviewed and updated regularly to ensure that the company is partnering with the best suppliers for its needs. . The company will consider the quality of the products and services offered, the cost, and the ability to meet the delivery deadlines. The following are some of the potential suppliers that will be considered:

Pet food and supplies: Suppliers of high-quality pet food and supplies will be considered to ensure that the animals in the boarding facility receive proper nutrition and care.

Kennel supplies: Suppliers of kennel equipment, bedding, and other supplies will be considered to maintain the cleanliness and comfort of the animals.

Medical supplies: Suppliers of veterinary medical supplies will be considered to ensure that the animals receive proper medical care.

Cleaning supplies: Suppliers of cleaning supplies and equipment will be considered to maintain the cleanliness of the facility.

Production and Service Delivery Procedures:

The production and service delivery procedures for Paw Pals Boarding will be established to ensure that the company provides high-quality services to its customers. This includes the development of processes and procedures for the care and well-being of the animals in its care, as well as the management of finances and budgets.

The production and service delivery process for Paw Pals Boarding will include the following steps:

Receiving customer requests and booking appointments

Intake and release of animals into the boarding facility

Providing food, water, and exercise to the animals

Providing grooming services as needed

Administering any necessary medical care

Cleaning and maintaining the kennels

Recording customer and pet information

Contacting customers to arrange pick-up of their pets

Overall Supplier Relationship Management (SRM):

The overall supplier relationship management (SRM) for Paw Pals Boarding will be focused on establishing strong relationships with key suppliers, reducing costs, and improving quality. The company will also consider ethical considerations in its SRM, such as fair treatment of suppliers and transparency in its business dealings.

Supply Chain Service Providers:

Paw Pals Boarding will work with supply chain service providers to optimize its supply chain and reduce costs. This includes logistics providers, packaging providers, transportation providers, and others.

Logistics:

The logistics for Paw Pals Boarding will be managed by the logistics department, which will be responsible for ensuring the efficient flow of goods and services from suppliers to customers. The company will work with transportation providers to ensure that products and supplies are delivered in a timely and efficient manner. The following are some of the key components of the logistics process:

Transportation planning and scheduling

Inventory management

Route optimization

Carrier selection

Carrier performance management

Packaging:

The packaging for Paw Pals Boarding will be designed to ensure that products and services are protected during transportation and storage. The company will work with packaging providers to develop packaging that meets its needs.

Transportation:

The transportation for Paw Pals Boarding will be managed by the logistics department, which will be responsible for ensuring the efficient and safe transportation of goods and services. This includes the management of shipping and receiving, as well as the coordination of transportation for the boarding facility.

Physical Plant Layout:

The physical plant layout for Paw Pals Boarding will be designed to maximize efficiency and improve the flow of goods and services. The layout will include the location of kennels, grooming areas, office space, and other facilities.

Workflow of the Supply Chain:

The workflow of the supply chain for Paw Pals Boarding will begin with the procurement of goods and services from suppliers, followed by the delivery of these products and services to the boarding facility. From there, the products and services will be used to provide high-quality care and services to the animals in its care.

Organizational Chart of the Logistics Department:

An organizational chart for the logistics department at Paw Pals Boarding would include key positions and their respective responsibilities within the department. This chart would help to clearly define the structure of the department and the reporting relationships between positions. The chart would include the following positions:

Director of Logistics: The Director of Logistics is responsible for overseeing all logistics operations, including transportation, packaging, and physical plant layout. They will lead the logistics department and ensure that all operations are in compliance with company policies and regulations.

Logistics Manager: The Logistics Manager will work closely with the Director of Logistics to plan, organize, and control the day-to-day operations of the department. They will be responsible for managing logistics service providers, ensuring the timely and efficient delivery of supplies, and coordinating the physical plant layout.

Transportation Coordinator: The Transportation Coordinator will be responsible for coordinating all transportation activities, including scheduling deliveries, negotiating rates with carriers, and ensuring that deliveries are made on time and within budget.

Packaging Specialist: The Packaging Specialist will be responsible for overseeing all packaging activities, including the design and production of packaging materials, and ensuring that all packages are properly labeled and packaged for safe transportation.

Physical Plant Layout Specialist: The Physical Plant Layout Specialist will be responsible for the design and layout of the physical plant, including the storage and handling of supplies and materials. They will also be responsible for ensuring that the physical plant is in compliance with all safety and regulatory standards.

By clearly defining the structure of the logistics department and the responsibilities of each position, Paw Pals Boarding can ensure that all operations are efficient, effective, and in compliance with company policies and regulations. The organizational chart will also help to ensure that all employees understand their role and responsibilities within the department, improving overall productivity and success.DMAIC:

Paw Pals Boarding will implement the DMAIC process to continually improve the supply chain and ensure high-quality service delivery. DMAIC stands for Define, Measure, Analyze, Improve, and Control, and is a process used to identify and improve business processes.

Ethical Considerations:

Ethical considerations play a critical role in the operations of the supply chain at Paw Pals Boarding. The company is committed to ensuring that all suppliers and service providers are operating with integrity and in accordance with the company’s ethical standards. This includes ensuring that all suppliers comply with fair labor practices and environmental regulations. Additionally, the company will strive to maintain transparency and open communication with all suppliers and service providers to foster strong, ethical relationships.

Paw Pals Boarding will also implement measures to prevent any conflicts of interest, such as implementing a code of conduct that outlines the company’s expectations for ethical behavior, as well as providing regular training to employees on ethical considerations and practices. The company will also conduct regular audits of its suppliers and service providers to

ensure that they are meeting the company’s ethical standards.

In addition, the company will take into consideration any potential environmental impact from its operations and will strive to minimize its carbon footprint. This may include implementing environmentally friendly practices, such as reducing waste and using recyclable materials, as well as partnering with suppliers who have a strong commitment to sustainability.

The company’s commitment to ethical considerations extends to its customers as well, and it will strive to ensure that all customer interactions are fair and transparent. The company will maintain customer data privacy and will adhere to data protection laws and regulations.

In conclusion, ethical considerations play a crucial role in the success of the supply chain at Paw Pals Boarding, and the company is committed to maintaining high ethical standards in all of its operations and relationships.

Start-up expenses (detailed):

The start-up expenses for Paw Pals Boarding will be broken down into several categories, including:

Equipment and supplies

Building and facility costs

Legal and accounting fees

Marketing and advertising expenses

Employee salaries and benefits

Equipment and supplies:

Paw Pals Boarding will require a significant investment in equipment and supplies, including kennels, grooming supplies, medical equipment, and office supplies. These expenses are estimated to total approximately $75,000.

Building and facility costs:

Building and facility costs will include rent, utilities, and any necessary renovations or upgrades to the physical space. These expenses are estimated to total approximately $100,000.

Legal and accounting fees:

Legal and accounting fees will cover the cost of incorporating the business, obtaining necessary licenses and permits, and setting up the company’s financial systems and processes. These expenses are estimated to total approximately $10,000.

Marketing and advertising expenses:

Marketing and advertising expenses will cover the cost of promoting the business and attracting customers. These expenses may include advertising, promotions, and public relations activities. These expenses are estimated to total approximately $50,000.

Employee salaries and benefits:

Employee salaries and benefits will cover the cost of hiring and compensating staff. This includes salaries, benefits, and any training or development expenses. These expenses are estimated to total approximately $100,000.

In total, the estimated start-up expenses for Paw Pals Boarding are $335,000.

References

Chopra, S., & Meindl, P. (2017). Supply Chain Management: Strategy, Planning, and Operation. Pearson Education.

Zhang, Q. (2010). Supply Chain Management and its Impact on Total Quality Management. Total Quality Management & Business Excellence, 21(7-8), 869-880.

Johnson, M. (2015). Ethics in Supply Chain Management. Supply Chain Management Review, 19(2), 26-32.

Startup Expenses

Startup Expenses

‘ Investment (name and percent ownership)

investor

Other investor

–

Other investor

–

–

–

–

$ 350,000

–

$ –

Startup Expenses

$ –

–

Other

–

$ –

–

–

–

$ –

List

Equipment

–

–

Other

500

5,000

–

–

Other

–

$ –

–

–

–

–

$ –

and Promotional Expenses

Advertising

500

–

–

–

–

$ 117

$ –

Microsoft: Remodeling expenses for leased premises.

Microsoft: Totals are calculated automatically.

Sources of Capital

$ 10,500

350,000

–

Startup Expenses

$ 20,000

–

15,500

11,600

–

5,050

117

–

1,000

$ –

–

Other collateral

–

Other collateral

–

Owners

Other owner

Enter your company name here

Sources of Capital

Owners

Jennifer Bartow

$ 10,

500

Other

–

Total Investment

$ 10,500

Microsoft: Totals are calculated automatically.

Bank Loans

Bank 1

$

350,000

Bank 2

Bank 3

Bank 4

Total Bank Loans

Other Loans

Source 1

$ –

Source 2

Total Other Loans

Buildings/Real Estate

Purchase

Construction

Remodeling

20,000

Total Buildings/Real Estate

$ 20,000

Leasehold Improvements

Microsoft: Remodeling expenses for leased premises.

Item 1

Item 2

Item 3

Item 4

Total Leasehold Improvements

Capital

Equipment

Furniture

$

5,000

10,000

Fixtures

Machinery

Total Capital Equipment

$

15,500

Location and Admin Expenses

Rent & Related Costs

$ 6,000

Utility deposits

600

Legal and accounting fees

Prepaid insurance

Pre-opening salaries

Total Location and Admin Expenses

$

11,600

Opening Inventory

Category 1

Category 2

Category 3

Category 4

Category 5

Total Inventory

Advertising

$ 4,550

Signage

Printing

Travel/entertainment

Other/additional categories

Total Advertising/Promotional Expenses

$

5,050

Other Expenses

Zen Planner Software

$

117

Other expense 2

Total Other Expenses

Reserve for Contingencies

Working Capital Microsoft: This value is calculated in the 12-month cash flow spreadsheet.

$

1,000

Summary Statement

Owners’ and other investments

Bank loans

Other loans

Total Source of Funds

$ 360,500

Buildings/real estate

Leasehold improvements

Capital equipment

Location/administration expenses

Opening inventory

Advertising/promotional expenses

Other expenses

Contingency fund

Working capital

Total Startup Expenses

$ 53,267

Security and Collateral for Loan Proposal

Collateral for Loans

Value Microsoft: Lower of cost or market value.

Description

Real estate

Other collateral

Your name here

Other owner

Loan Guarantors (other than owners)

Loan guarantor 1

Loan guarantor 2

Loan guarantor 3

Notes on Preparation
Note: You may want to print this information to use as reference later.To delete these instructions, click the border of this text box and then press the DELETE key.
Nearly everyone who has ever started a business has underestimated the costs, and then faced the danger of running with inadequate capital reserves. The key to avoiding this pitfall is to adopt a rigorous approach to your research and planning.
Our Startup Expenses worksheet will lead you through the process.
EXPENSES – Begin by estimating expenses. What will it cost you to get your business up and running? The key to accuracy here is attention to detail. For each category of expense, draw up a list of everything you will need to purchase. This will include both tangible assets (for example, equipment, inventory) and services (for example, remodeling, insurance). Then determine where you might purchase these goods or services. Research more than one vendor; i.e.: comparison shop. Do not look at price alone; terms of payment, delivery, reliability, and service are also important.
CONTINGENCIES – Add a reserve for contingencies. Be sure to explain in your narrative how you decided on the amount you are putting into this reserve.
WORKING CAPITAL – You cannot open with an empty bank account. You need a cash cushion to meet expenses while the business gets going. Eventually you should do a 12-month cash flow projection. This is where you will work out your estimate of working capital needs. For now, either leave this line blank or put in your best rough guess. After you have done your cash flow, you can come back and enter the carefully researched figure.
SOURCES – Now that you have estimated how much capital will be needed to start, you should turn your attention to the top part of this worksheet. Enter the amounts you will put in yourself, how much will be injected by partners or investors, and how much will be supplied by borrowing.
COLLATERAL – If you will be using this plan to support a bank loan request, use the section near the bottom to show what assets are offered as collateral to secure the loan, and give your estimate of the value of these items. Be prepared to offer some proof of your estimates of collateral values.

BUSU

6

40

Week 5/Assignment 4

Section

8

Operations Plan with Start-Up Expenses

10

0 Points

Length: Up to 10 pages

Due: Sunday of Week 5 by 11:59 pm PST

Submit Draft for Peer Review: Friday of Week 5 by Noon PST

Addresses Learning Outcomes: 5

IMPORTANT NOTES:

· Apply what you learned in your MBA program and if necessary, perform external research to refresh your knowledge base.

· Cite your references.

· If you incorporate illustrations into your narrative, be sure to fully explain your illustrations. You do not want your reader to interpret the illustrations, you must control the message. Provide an in-depth explanation of your illustrations.

· Use section headers aligned to the guidelines for each section (this way you are assured each requirement is included in your narrative).

Section 8: Operations Plan

Write the Operations Plan, including the items listed below as applicable.

Operations Plan Guideline

· Describe how the supply chain will be developed to create time to market, quality, innovation, or cost

· Key suppliers and customers

· List of potential suppliers

· Production & service delivery procedures

· Overall Supplier Relationship Management (SRM) to include all ethical considerations

· Supply Chain service providers

· Logistics

· Packaging

· Transportation

· Physical Plant Layout

· The workflow of the supply chain (from the supplier to the customer).

· An organizational chart of the logistics department.

· DMAIC

· Ethical considerations

· Start-up expenses (detailed)

· Up to ten pages.

BUSU 640 Capstone Assignment 4 Rubric

Criteria	Exemplary	Proficient	Developing	Emerging
Operations Plan (35% of total)	40 The Operations Plan is clear and easy to understand. The plan is viable and interesting. The items listed in the guideline are included in the narrative. The Operations Plan connects to the marketing and management plans.	32 The Operations Plan is fairly clear and easy to understand. The plan is viable and interesting. Most of the items listed in the guideline are included in the narrative. The Operations Plan somewhat connects to the marketing and management plans	28 The Operations Plan is somewhat easy to understand. The plan is somewhat viable and interesting. Some of the items listed in the guideline are included in the narrative. The Operations Plan somewhat connects to the marketing and management plans.	24 The Operations Plan is unclear, difficult to understand, and questionably viable. A few of the items listed in the guideline are included in the narrative. The Operations Plan does not connect to the marketing and/or management plans.
Application (Theory to Practice) (20% of total)	30 There are at least ten citations that demonstrate that theories support the content of the sections.	24 There are at least seven citations that demonstrate that theories support the content of the sections.	21 There are at least five citations that demonstrate that theories support the content of the sections.	18 There is little evidence that research was performed. There is a lack of clarity that theories support the content of the sections.
Critical Analysis (20% of total)	10 Consistently employs critical analysis in discussing the issue(s). Effectively synthesizes and integrates data to draw valid conclusions, identify options, and make specific recommendations.	8 Fairly consistently employs critical analysis in discussing the issue(s). Fairly effectively integrates data to draw valid conclusions, identify options, and make recommendations.	7 Somewhat employs critical analysis in discussing the issue(s). . Somewhat uses data to draw somewhat valid conclusions and make general recommendations.	6 Limited if any critical analysis in discussing the issue(s). Limited if any use data findings to draw conclusions, identify options, and/or make recommendations.
APA (10% of total)	10 Accurately adheres to 7th Edition APA standards; reference page and citations are correct. All sources listed in References are cited in the paper. Section headers are aligned to the guidelines of the assignment.	8 Fairly adheres to 7th Edition APA standards; reference page and citations are correct. All sources listed in References are cited in the paper. Section headers are fairly aligned to the guidelines of the assignment.	7 Somewhat adheres to 7th Edition APA standards; reference page and citations contain errors. References and citations in the paper may not match. Section headers are somewhat aligned to the guidelines of the assignment.	6 Does not adhere to 7th Edition APA standards; reference page and citations contain errors. References and citations in the paper do not match. Section headers are not included in the paper.
Writing Mechanics (15% of total)	10 The paper is logical and well-written; spelling, grammar, and punctuation are accurate. Paper is the required length and includes a correctly prepared title page.	8 The paper is logical and well-written but with minor (1 – 3) errors in spelling, grammar, and/or punctuation. The content may be 5% too long or short; includes a correctly prepared title page.	7 The paper is somewhat logical and well-written but with several (4 – 7) errors in spelling, grammar, and/or punctuation. The content may be 10% too long or short, and may not include a correctly prepared title page	6 The paper lacks clarity and may be confusing with numerous (8+) errors in spelling, grammar, and/or punctuation. The content may be 15% too long or short, and may not include a title page