Business Planning – Managing the Operations

Please find some links and notes from the 2 Regular Guys Podcast. Taking a segment from one of Aaron’s #SBSVideo Series shows, the guy travel in time due to some issues Aaron had getting to the ISS Ft. Worth Show. Terry and Aaron talk about traveling in time and also creating your Operational Plan. They discuss things like inventory management, labor plans and more. Here all about planning for the operations side of your business from a guy in Terry Combs who has done that for many many years.

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Managing the Operations

Operations as part of your business plan

Overhead costs – if you’re in business, an educated guess if not

For a production facility, big or small, you need to break down your costs by your number of production hours. If you decorate 20 hours a week, your costs are divided by that number. This information will help you determine your costs.

Have enough equipment – The transition from manual to automatic

Manufacturing / Production Plan – Even with a small space

I see this as, “How are we planning to accomplish the task?” That means determining what equipment you need to produce the line you want to produce. Don’t trust the numbers a sales rep will give you based on a perfect world scenario. But once you’re comfortable with the numbers, use this as your basis again for pricing.

Scheduling and Estimating Time

The part of your business that will keep you awake at night.
Most decorators of all kinds schedule by juggling orders rather than a real schedule.
This is where you have to face the hard truth of what you’re currently capable of producing compared with what you wish you could produce

How the downtime log works
Is your schedule set in stone?

Inventory and Supplies as well as Inventory Management System

Here’s the good news for most of us on inventory, most businesses are within a day or two of a supplier who can provide you with inventory. That means to carry a minimal amount and order as you need the product.

Labor – Dealing with ebbs and flows

Your life changes forever when you get your first employee. You need key employees to be on staff full time, year round. And you need a plan to add part-time help for those key employees.

Quality Control (Shrinkage/ Spoiled Goods), Order Fulfillment and Shipping

Who’s in charge of Quality Control?
Finding mistakes as they move through production.

Spoilage Standards
Shrinkage Control – eliminate the temptation

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