Task

Task title

Task requirements/Questions

1.1

Models and methods

Describe at least two models and two methods for operational plans.

1.2

Role of plan

Explain the role of an operational plan in achieving the organisation’s objectives.

1.3

KPIs (Key Performance Indicators)

Explain how and why KPIs are used and provide an alternative an example when a KPI would not be a good measure.

1.4

Budget process

Explain the process for putting together a budget.

1.5

Analysis of budget

Look at the following profit and loss results for a fictitious company. Analyse the data and make some suppositions as why the company has not made budget.

30/06/TY

30/06/LY

Var TY to LY

Budget

Actual to budget

Sales

$180,000

$200,000

11%

$210,000

-5%

Cost of goods sold

$106,000

$122,000

15%

$126,000

-3%

Gross Profit

$74,000

$78,000

5%

$84,000

-7%

Expenses

Freight

$3,000

$4,000

33%

$4,200

-5%

Commission

$9,000

$10,000

11%

$10,500

-5%

Salary

$17,000

$18,000

6%

$18,000

0%

Office expenses

$3,000

$4,000

33%

$4,200

-5%

telephony

$300

$900

200%

$400

125%

Rates

$1,000

$1,000

0%

$1,000

0%

Insurance

$2,000

$3,000

50%

$3,000

0%

petrol

$400

$700

75%

$500

40%

Depreciation

$1,000

$1,000

0%

$1,000

0%

Entertainment

$700

$2,000

186%

$800

150%

Discounts allowed

$4,000

$5,000

25%

$4,000

25%

Bad debts

$6,000

$500

-92%

$4,000

-50%

Total expenses

$47,400

$51,600

9%

$54,180

-5%

Net profit/ (loss)

$26,600

$26,400

-1%

$27,720

-5%

Task

Task title

Task requirements/Questions

2.1

Background

To aid the understanding for the assessor, please provide some background of the plan.

2.2

The plan

Hiding any confidential information, attach the plan

2.3

Resources

a. Explain the research and analysis you have undertaken on the resource requirements for the plan

b. Show how you supported the obtaining of these resources by seeking extra information and/ or specialist advice

2.4

Consultation process

Show the process you used for consultation for the plan

2.5

KPI

Develop at least two SMART KPIs for the plan that measure profit/ production targets. One KPI should be for the final result, and another for an intermediate result, so tracking to target can be made (if this isn’t possible, two KPIs for the final target will be sufficient, but an explanation as to why an intermediate target is unsuitable should be made)

2.6

Contingency

Develop at least one contingency plan and explain how it would be implemented.

2.7

Approval process

Outline the approval process for your plan.

2.8

Legislation

Outline any legislative and regulatory considerations relevant to your operational plan to the organisation.

2.9

Policy

List at least one policy and one procedure (other than recruitment and purchasing) that your organisation has (or should have) that relate to your operational plan.

2.10

Informing others

Explain how you would inform the relevant work teams about the plan.