LSA2011 BDT S12 BUSINESS OPERATIONS
PURPOSE OF THIS SESSION
Help people understand the value adding process in practice (build on session 10, 11)
Introduce the concept of processes


Business purpose – as a systematic approach to disseminating and assembling the business in a logical
way
People purpose – as a systematic approach to understanding which people are involved at each stage of
the business processes and how these people are impacted etc
Introduce operations as a tool to help potential entrepreneurs (foundational way of thinking)





Understand business activity
Value creation and adding laid out practically
Understand businesses as a collective of individual direct and support processes
Understand where costs are incurred from an operational point of view
Understand the relationships that are key at each stage (stakeholders)
DESIRED OUTCOMES




Participants to be equipped to better understand and plan their business activities
Process view to help participants understand the various people that are involved and impacted at each
stage of the business and how these may be served and invested in
Structured, grounded planning evidenced in business plans
Detailed cost analysis facilitated
LEARNING OBJECTIVES
By the end of this session, participants will be able to


Demonstrate a theoretical understanding by performing a step-by-step
Practically identify the process steps in their respective businesses
BREAKDOWN
1.
2.
Introduction to Operations – theory (15 mins)
a. Value chain activity
Activities:
a. Group Exercise – Biscuit making business (15 mins)
i. Overall process
ii. Steps
iii. What is required at each step
1 | Links International South Africa | Business Development Training | Session 12 Operations
b.
1. Materials
2. Finance
iv. Stakeholders at each step of the process
v. At the end of the exercise – Where in the overall process is value added?
vi. (powerpoint step by step)
Individual Exercise – worksheet for each individual business (20mins)
2 | Links International South Africa | Business Development Training | Session 12 Operations
1 BUSINESS OPERATIONS – THE THEORY
[Value Chain Illustration up on screen]
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
& Sales
Service
Why are we looking at Operations?
2 Aspects to Kingdom (seek first the kingdom) – what does this look like practically
1.
2.
People View – Service & Love
Business View – Contribution & Investment (talents)
Activity: People
Take value chain illustration and explore the topic of ‘people’
Guiding Question: Which people do you come in contact with at each stage of the business and how do you impact
them?
How can you serve people at each stage of the business?
 Suppliers
 Employees
 Customers
Life (business) is not about what I get but what I give (seeking first the kingdom)
Life drainer vs. life giver (session 6)
Implication: in and through business, the question is
“How can I contribute? How can I love and serve others?”
All about contribution
3 | Links International South Africa | Business Development Training | Session 12 Operations
Business View





This is where business actually happens.
Because they make up 70%+ of your business activity
This is where most of the value for your customers will be added
This is where you make your money, i.e. profit
This is where most of your money will go and where most of your money will be made.
What are Operations?



Transformation Process – taking raw materials and labour and combining these factors into products and
services using skills, knowledge, know-how etc
Series of individual processes linked together in the transformation of input factors into finished products
and services.
Ongoing recurring cyclical activities whereby assets (tangible & intangible) are used to produce value
Vision for Operations



Consistency and sustainability of delivery of products and services, whereby the cost is less than the
money received for the products and services = profit
The focus is on managing the relationship between costs and income
Businesses can often be profitable without changing the price of their products and services simply by
saving money on the operations side.
2 ACTIVITIES
ACTIVITY 1 – PROCESS BREAKDOWN (GROUP)
A Biscuit Making Business
Guiding Question:
You want to make biscuits as a business and sell them directly door to door – what do you need to do?
Purpose: participants to identify



Steps
Costs
People
4 | Links International South Africa | Business Development Training | Session 12 Operations
Step 2
Step 1
Step 3
Buy ingredients
Measure out
ingredients according
to recipe
Mix ingredients into
dough
Step 6
Step 5
Step 4
Place baking trays in
oven
Cut out shapes & lay
onto baking tray
Roll out dough to
thickness of 5mm
Step 7
Turn baking trays
regularly & remove
when finished
Step 8
Step 9
Allow biscuits to cool
Pack the biscuits
Step 12
Step 11
Step 10
Collect payment from
customer
Deliver biscuits to
customer
Load biscuits onto
delivery bycicle
ACTIVITY 2 – ANALYSING YOUR INDIVIDUAL BUSINESS
Each participant to receive a worksheet to help them think about each step of their planned business
Learning progression: participants to use the model explored in activity 1 and apply it to their business
Process Step
Equipment & Costs
People
Note: Do this for each process which will be part of normal business activity.
5 | Links International South Africa | Business Development Training | Session 12 Operations