Marketplace for Nutritious Foods Investment Readiness training for Businesses within the CoP

1. Marketplace for Nutritious FoodsInvestment Readiness training for Businesses within the CoP 3. Operations and Management Planning • December 2018 Author : Intellecap

2. An effective Operations Management plan involves: Operations Management & Planning • Operations management, also called “operations planning” or “operations scheduling,” is a term assigned to the planning of production in all aspects, from workforce activities to product delivery. Observation of the current state Analysis of associated costs Establishment of performance goals Monitoring of efforts toward those goals

3. Operations Management & Planning: continued Key components of an operational plan include: Clear objectives 01 A process to monitor progress 08 02 Activities to be delivered Implementation timetables 07 03 Quality standards 06 04 Staffing and resource (including budget) requirements Key targets and key performance indicators 05 Risk management plan

4. Operational efficiency? • Operational efficiency encompasses several strategies and techniques used to accomplish the basic goal of delivering quality goods to customers in the most cost-effective and timely manner.  Resource Utilization Inventory Management Production Distribution

5. Benefits: Resource utilization • Entails getting the most value from resources and eliminating waste in production and operations are operational efficiency considerations. Allocation of resources • 06 • 05 • 03 • 04 • 02 • 01 . Workforce scheduling Production equipment scheduling • Enhancement of product and process • Ensure feedback as to make adjustment • Ensure continuous delivery 1 2 3 • Scheduling helps in capacity planning as to reduce bottlenecks • Remove bottleneck in operations • Skill set of workforce

6. Production Planning • The administrative process that takes place within a manufacturing business and which involves making sure that sufficient raw materials, staff and other necessary items are procured and ready to create finished products according to the schedule specified Choose most effective option Determine potential production options STEP 5 Adjust STEP 4 Forecast Demand STEP 3 STEP 2 Monitor and control STEP 1

7. Distribution Planning • This involves analysis to find the most efficient ways to move goods from manufacturer to wholesaler and from wholesaler to retailer. Efficient routing and delivery scheduling are common aspects of efficient distribution. • Non-competing companies might share truck space, for instance, to avoid less-than-full loads if they move goods on similar routes. • 02 • 04 • 03 • 05 • 06 • 01 • Vehicle planning • Product dispatching • Distribution channel • Vehicle choice • Product placement • Vehicle loading • Which product should be held at each location and in what quantity? • What products should be loaded on to a vehicle? • When and where should a product be dispatched? • Which mode of transportation should be used? • How many vehicles of each type would be required on what days in the next one month? • Which channel should be used to ensure products reach customers?

8. How do you achieve operational efficiency? • Inventory management is the management of inventory and stock. • As an element of supply chain management, inventory management includes aspects such as procurement of raw materials, maintaining semi-finished goods and holding of finished goods ready for sale. You need to know the following: • How do I know the reorder point for new inventory? • How do I determine the “right price” for my inventory? • How do I calculate the “right amount” of inventory to stock? • How do I figure out the right place to sell and distribute my inventory? • What is the best tool for optimal inventory management?

9. Collective Discussion How will you know if your company is making progress?

10. Tools to measure Operational Efficiency | KPIs

11. Key Performance Indicators (KPIs) • KPIs are a set of quantifiable measures that a company uses to gauge or compare performance in terms of meeting their strategic and operational goals. • KPIs vary between companies and industries, depending on their priorities or performance criteria. Also referred to as "key success indicators.”

12. Why do you need KPIs for your business? Identify trends Improve decision making Alert when something is wrong • You can use them to examine the current performance of your company in comparison to past periods of time, from the prior quarter to years ago. • Example: Average cupcakes sold – measuring daily and weekly helps predict salesforce needs Example: if your sales are going up, do you need to higher more people in the production team? • This can help you identify problems that need fixing. Even better, it can direct your attention to potential problems that can be avoided. • Example: Inventory should be 15% of sales – early warning notice before unable to fulfill

13. How to develop KPIs for your business? Key Performance Indicators Key business activities Goals & Objectives Overall Business Strategy What are the key actionable activities to meet these goals and objectives? What measure of success are tied to the drivers? What is your organization trying to achieve? What are the short term and long term goals to achieve the strategy?

14. Different types of KPI/ Metrics Sales Marketing Production Financial • Sales Qualified Leads • Conversion Rates • Brand awareness • Customer engagement • Lifetime value of a customer (LTV) • Customer acquisition cost (CAC) • Customer retention rate • Monthly Sales Growth • Average Profit Margin • Monthly Sales Bookings • Sales Target • Quote To Close Ratio • Average Purchase Value • Average Cost Per Lead • Retention and Churn Rates • Customer Lifetime Value • Average Conversion Time • New and Expansion MRR • Number of Monthly Onboarding and Demo Calls • Production Volume • Production Downtime • Production Costs • Defect Density • Rate of Return • Asset Turnover • Unit Costs • Return on Assets • Maintenance Costs • Gross profit margin • Earnings before interest and taxes (EBIT) • Contribution margin • Liquidity ratio • Interest cover • Days in accounts receivables • Net cash flow • Gross profit margin • Transactions error rate

15. Building your Team

16. Activity Myth Busting

17. Qualities of a good team 01 - Good leadership 01 02 - They communicate well with each other 08 02 They have fun- 08 03 - They focus on goals and results They’re organized- 07 07 03 04 - Everyone contributes their fair share Team members are diverse - 06 06 04 05 05 - They offer each other support

18. Building a winning team Have a strategy to find the right candidates • 01 • 04 Create a Job description Learn how to interview when hiring a team • 02 • 05 Hire for attitude Share the organization goal, vision • 03 • 06 Plan as a Team

19. Corporate Governance

20. What is corporate governance? These are structures and practices for the efficient and proper direction of a company in the interest of the shareholders. Corporate governance requires efficient management of relationships between: SHAREHOLDERS DIRECTORS MANAGERS • Shareholders • Customers • Managers • Suppliers • 04 • 02 • 03 • 05 • 06 • 07 • 08 • 01 Those that own the company Guardians of the company’s assets for the shareholders Who use the company’s assets • Board of directors • Creditors • Employees • Community Corporate governance parties:

21. The importance of Corporate Governance Structures Helps run ethical business It helps manage growth effectively It establishes accountability and structures to evaluate performance Attracts high quality employees Helps with future investor conversations

22. Qualities of an Effective Board Specific expertise Team Oriented Attitude Dependability Good Networks Good Character