DISCUSSION

Implementing the operations plan is one of the most difficult processes to undergo due
to the details that the entrepreneur has operations that are equally important to cover all aspects
of business operations. The flow of an implementation of these 4Ms will depend on what
business model or nature/type of business the entrepreneur will choose. Regardless of the
business type/model, the entrepreneur must implement the methods (processes) that he or she
envisioned in the operations plan, hire the right manpower to do the job description crafted,
acquire or lease machinery, and use relevant technologies, such as e-commerce, in conducting
businesses and source materials from the most efficient and practical suppliers

Similar to the marketing plan implementation, all of these will be learned in this module
using the practical approach of being with a real entrepreneur rather than focusing on the
academics of implementing the operations plan. You will be acquainted with a business
example that involves both manufacturing and service, so you can relate how to operate and
run a business from the beginning until it matures and becomes an established venture.

METHODS

The implementation of processes or methods in the operations plan will depend on the
entrepreneur's business type or model. The general classification of the business type or model
would be the manufacturing business or service business. For your better appreciation, these
two will be discussed in the following hybrid business, which is both a manufacturing and a
service business.
Roanne's Homemade Batutay Business in Cabanatuan City

Mr. Ron Lopez and Mrs. Allaine Lopez decided to put up Roanne's Batutay Longganisa
Business in Cabanatuan City. Based on their marketing research, they discovered that
not only the people of Cabanatuan like the taste of batutay, the native beef longganisa
but also the nearby areas including Metro Manila. They plan to manufacture their batutay
because Ron just came from his one-year training from TESDA where he learned how to
make longganisa.

Aside from manufacturing, Allaine suggested that it will make a difference if they will
incorporate service in their business as well. They will implement a longganisa delivery
service via mobile and social media but are limited to Cabanatuan City only.

To complement the manufacturing business, they will also put up a mini-restaurant that
serves batutay as the main course in their business residence. They are now ready to
operate the business. They started with the methods and processes needed to run it.

Step 1. Register the business.

Go to the city or municipality hall's business permit licensing office to

secure a business permit and the Department of Trade and Industry for
the business name.

Business Name: Roanne's Homemade Batutay

Business Classification: Manufacturing and Service

Step 2: Determine the manufacturing elements or ingredients of the product.

Determine also the service elements for the mini-restaurant and longganisa delivery
service.

Manufacturing elements:
Input
 Beef  Salt
 Beef fat  Black pepper
 Soy sauce  Cooking oil
 Sugar  Pork isaw (intestines)
 Garlic
Processes
 Grinding of the beef
 Mixing of the ingredients
 Filling the pork isaw with beef mixture
 Packaging
Output
  Batutay longganisa

Service elements - delivery service:

Input
 Mobile phone (customer and  Landline phone (customer and
Roanne's staff) Roanne's staff)
 Social media account (customer and  Motorcycle
Roanne's staff)  Delivery staff
 Customer's order request

Processes
 Cooking process (for cooked longganisa orders)
 Ordering process
 Payment process

Output
 Batutay delivery and payment

Service elements - mini-restaurant:

Tangible elements (Servicescape)
 20 chairs  Cooking oil
 Four tables  Uncooked longganisa
 Big rice cooker  Eggs
 Rice  Garlic
 Frying pan

Intangible elements
 Cooking process
 Ordering process -dine in and take out
 Payment process

Output
 Batutay meal
Step 3. Decide the most practical and efficient manufacturing site and location: home-
based or rent/buy a commercial space.
Manufacturing site: home-based and commercial space renting
Location: Barangay Aduas Centro, Cabanatuan City (near Cabanatuan City Public
Market)

Step 4. Decide whether to follow a product-based or process-based internal layout and

then draw the manufacturing process flow.
Internal layout: Product-based layout (facilities are prearranged according to the
manufacturing process flow)

Manufacturing process flow:

1. Using the manually operated grinder, grind the beef fat and meat.
2. Mix the ingredients in the following order:
a. Mince the garlic and mix with the ground beef meat and fats.
b. Add soy sauce and pepper to taste.
c. Add sugar and salt to taste.
d. Mix all the ingredients thoroughly,
3. Fill the pork isaw with the beef meat mixture using a manually operated machine. After
this, tie the pork isaw and cut it.
4. Pack the finished product.

Batutay delivery process flow:

1. Customer sends his or her order via text message or social media private message.
2. Upon receipt of the text message or social media private message, a Roanne staff will
prepare the order and receipt and instruct the delivery staff to deliver to the customer
within an hour.
3. The delivery staff will deliver the batutay to the customer and get payment
Mini-restaurant service delivery process flow:
1. The customer goes to the mini-restaurant and orders a batutay meal (garlic rice, batutay,
and egg). Aside from the batutay meal, the menu also includes tocino, fried milkfish,
tapa, hotdog, sausage, and sardine’s meal. Beverages include soft drinks, mineral
water, coffee, and juice drinks
2. Customer pays at the cashier
3. Roainne staff serves the longganisa meal,

Step 5: Decide on what distribution process and distribution channel will be most
economical for the business.

Distribution process and channel: Because the business is still a start-up, the finished
products will be distributed at the Cabanatuan City Public Market where the longganisa products
are usually being sold. Roanne will rent a small commercial space there. The products will also
be available at Roanne's residence and in the mini-restaurant to cater to the customers in their
barangay. Roanne will also introduce the "Batutay Text. Landline, and Social Media Delivery
Service."

MANPOWER

Because the business model has already been identified and set up, the next aspect of
operations to be looked into is to identify how many persons are needed and what their
qualifications are to operate the business.

Step 1. Create a table of organization to show a graphical description of the manpower

complement of the business.

Step 2. Prepare a job description for each member of the organization so that everyone is
aware of what is expected of him or her.
  Ron Lopez - Being the general manager, he is in charge of the overall management of
the business from marketing, to operations, to human resources, and to finance.
 Allaine Lopez- She will manage the mini-restaurant and delivery of batutay, including the
three restaurant staff members. She will also be the cashier.
 Restaurant assistants - They will be in charge of cooking, packing the orders, serving
customers, and cleaning the mini-restaurant. One of the restaurant assistants will also
handle deliveries during peak days.
 Delivery staff member - He or she will be in charge of receiving orders via text or social
media and the delivery of batutay. On a nonpeak day, he or she will also assist the
restaurant staff members.
 Supermarket staff members - They will be in charge of selling, cashiering, and inventory
management at the supermarket.
 Manufacturing staff members - They will be in charge of the production of batutay.

Step 3. List the qualifications of employees needed and decide where to source them.
 Restaurant assistants - K to 12 graduates (specifically with a background in restaurant
management), customer-friendly, hardworking, and honest. One assistant should be
skilled in driving a motorcycle and has a license.
 Delivery staff member - K to 12 graduate and should be skilled in driving a motorcycle
(should also have a license, is customer-friendly, hardworking, and honest)
 Supermarket staff members - K to 12 graduate and should be skilled in selling,
cashiering, and inventory management
 Manufacturing staff members - K to 12 graduate and should be skilled in longganisa
making.

Step 4. Decide on where to source candidates (e.g., friends, relatives, employment

agencies, referrals, manpower agencies, newspapers, social media, walk-ins).
Roanne will source candidates from friends' referrals so that they can also vouch for the
characters of the candidates.

Step 5. Interview the potential candidates and ask them relevant questions about the job.
Ron and Allaine Lopez should ask potential candidates about their work ethics, attitude
toward customers, service, road knowledge (delivery staff), accounting, and sales
experience.

Step 6: Choose the best candidates and provide a job offer. The job offer should contain
the following details:
 Job Offer Content/Position
 Salary and benefits; vacation and sick leaves
 Work schedule
 Probationary period if any and qualifications to become a regular employee
 Duration of contract
 Resignation procedure
Step 7: Ensure there are an employee training and development program for the
business.
Mr. and Mrs. Lopez will be in charge of training their five employees on the following aspects:
 Cashiering
 Customer service
 Table setting
 Longganisa-making

Each of the staff members will also be rotated to different positions as part of the training

MACHINE
Third, in the list of 4Ms to be considered is the machine. It could be the physical
equipment or technology that can help the business operate seamlessly and with quality,

Step 1. List all the equipment and technology needed and decide whether it is economical to
purchase them or just rent them

General manager:
 Laptop

Manufacturing Site
 Meat grinder
 Manually operated machine for the filling of meat into the pork isaw
 Freezer
 Delivery van for the buying of ingredients and for delivering the finished product to the
supermarket
Delivery Business
 Motorcycle
 Smartphone
 Data plan or postpaid plan
 Landline

Mini-restaurant
 Big rice cooker
 Big frying pan
 Gas range
 Cashiering machine
 Coffee maker
 Big refrigerator
 Electric fan
 Air conditioner
 Televisio
Public Market Stall
 Small freezer
 Electric fan

It is economical for the longganisa business to buy all of the pieces of equipment
because they are all needed to operate the business on a long-term basis, and
perhaps the longganisa business has enough capital for it. These pieces of
equipment will be valued based on their depreciable life.

Step 2. Understand how to use these machines properly, and apply all the necessary
safety precautions before using them. Protect these pieces of equipment from
physical and security risks

Step 3. List alternate options in case the equipment becomes dysfunctional. The key
is for the business to continue no matter what. Know where to find repair shops then
needed.

MATERIALS
The last M in the 4Ms of operations is materials. The general premise for
materials is where to source these easily at a cheaper price and of good
quality. The entrepreneur must have a minimum of two or more major
suppliers for contingency purposes (eg. in case one supplier is unable to
deliver)

Step 1. To determine the requirements for materials, the entrepreneur must decide
on which path to choose: (1) manufacture on products or offer our services,
(2) outsource manufacturing or service activities to a third party, and (3)
purchase finished products or services from a manufacturer.

Step 2. List all the materials needed for the manufacturing or service business and
decide where to source them efficiently (at least two suppliers).
Requisitioning of Manufacturing Ingredients and Mini-restaurant Supplies

Step 3. Implement efficient logistics management-warehousing, transportation and

inventory management.

 Warehousing - If the business expands, another freezer will be bought to

cover the orders from the three businesses-supermarket, mini-restaurant, and
delivery service. A small freezer will also be bought for the supermarket stall.
 Transportation - A delivery van will be purchased by the business to transport
the ingredients from Public Market to the manufacturing site and to transport
the finished products from the manufacturing site to the Cabanatuan City
Public Market stall.
 Inventory management - It is ideal to sell all homemade batutay the day they
were produced. But because longganisa can be stored in the freezer for a
long time, it is also ideal to produce in bulk and store the longganisas in the
 freezer. This will save Roainne in manufacturing costs because they will
produce them in bulk. The concept of economies of scale" is very much
applicable.

Producing in bulk also addresses the demands in the public market stall, in the
mini restaurant, and the delivery orders. They will be able to determine the actual
number of batutay kilos to be produced and stored once they operate. At the
onset, they should be conservative first to avoid spoilage. The business should
monitor the demand every day to match with the supplies to be produced. This
will also largely depend on marketing strategies Roainne's Batutay Business will
implement.