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Goals of team or section or department, how the goals will be achieved and what resourcesrequired to achieve the goals.Operational Management, Assessment 1 v2 Last updated on 10/09/2019 Page 6
T-1.8.1_v3However there is no strict rule for operational plans which contain various factors such asSpecific goals, action required to achieve this goals, human resource required, physical resourceRequired, Budget required and an indication how long goals take to achieve.Contingency plan is an alternative as of changing circumstances as the situation demands. Theleveland degree of impact of plan depends upon the environmental plan changes.Question 5. Explain the steps in budgeting process within an organisation. You may wish tolist and briefly explain using bullet points. Limit your total responses within 300 words. Useful link: (5 marks)BUDGETING PROCESS EXPLANATION Budgeting is a process whereby future income and expenditure are decided in order to streamlinethe expenditure process which is done to be aware of the expenditure and income. Budgetingprocess is very crucial for any business organisation and important aspects of budgeting are asfallows.Top- Down Budget; The primary input is made by top level executive of the business lay down theguidelines for budget however, guidelines related to sale budget, compensation are given by topmanagement.Bottom- up Budget; Directions are given by the top level management however, employees and thelower management formulate them.Sale BUDGET; First budget to be prepared as the revenue is generated will determine the level ofexpenditure. Sale of the business are forecasted and also in term of sale volume and salerevenues.Production Budget; This is of high importance which determine the number of unit of a product thatwill be produce by the business.Direct Material Purchase Budget: The budget related to direct material which determines the theamount and cost of this resources that will be required in the production.Operational Management, Assessment 1 v2 Last updated on 10/09/2019 Page 7
T-1.8.1_v3KNOWLEDGE EVIDENCE MARKING ALLOCATIONS(Trainer/Assessor use for assessing & marking purposes)The learner will be assessed on the following knowledge evidence and performance evidenceMarksallocatedMarksreceivedQ1.There are various models and methods used for organisational operational plans. Describe three models and methods operational plans and explain how they are used.3Q2.List and explain four key elements of an operational plan.4Q3.List and briefly explain three alternative approaches to developing Key Performance Indicators.3Q4.Explain (within 300 words) the role of an operational plan in meeting organisational objectives.