Business | Planning

Operations

Eric Rinehart, Economic Development Eric Rinehart, Economic Development Solutions, inc. Solutions, inc.

e-d-solutions.com

“What the Organization Does”

FACILITY MISSION THE PRODUCTS AND FUNCTIONS

(ADAPTIVE; LEADING EDGE) THE CUSTOMER

(CUSTOMER ORIENTED APPROACH) THE RESULTS

“How the Organization Does It”

THE COMPETITIVE ENVIRONMENT OPERATIONS STRATEGIES

(LEAN, WORLD CLASS OPERATIONS) ADMINISTRATION

(FLAT MANAGEMENT STRUCTURE) FACILITY MANAGEMENT

(INTEGRATED PROCESSES) RISK ANALYSIS (ISSUE MANAGEMENT) FINANCIAL PLANS (COST MINIMIZATION)

“What the Organization Does”

FACILITY MISSION

THE MARKET OPPORTUNITY -- The unfilled need, in general

MISSION STATEMENT -- A single declarative sentence which speaks to the customer, the product, the functions and the results (driven from leadership, customers, mandates).

PHILOSOPHIES –an entrepreneurial approach; a diversified set of stakeholders: customers, public, staff)

THE CUSTOMER CUSTOMER ORIENTED APPROACH

MARKET OVERVIEW AND SIZE -- both domestic and foreign PRIVATE MARKET SEGMENTS -- a general

description and specific (target) lists PUBLIC MARKET SEGMENTS -- a general description

and specific (target) lists INSTITUTIONAL MARKET SEGMENTS --

THE PRODUCTS/FUNCTIONS (ADAPTIVE; LEADING EDGE)

CORE COMPETENCIES -- research trials; commercialization trials, training and education; and research grants

RESEARCH PRIORITIES -- core research (general and specific) and collateral research (general and specific)

FACILITY CAPACITIES -- flexibly designed

RESULTS

THE RESULTS

“How the Organization Does It”

COMPETITIVE ENVIRONMENT

COMPETITION -- comparative (analytical and production) facilities in the US and across the world

BARRIERS TO MARKET ENTRY -- costs, time, technology

FACILITY MANAGEMENT INTEGRATED PROCESSES

PRODUCTION CAPACITY -- capacity of analytical equipment and production equipment

FACILITY PLANS -- building lay-out; equipment inventory control and equipment depreciation and replacement

MAINTENANCE -- building maintenance and control; equipment maintenance and control

SUPPLY AND STOCKING PLANS -- supplier identification and management

OPERATIONS STRATEGIES LEAN, WORLD CLASS OPERATIONS

TRIAL STRATEGIES -- prioritized list of trials based on market acceptance and cost benefit

RESEARCH STRATEGIES -- external sales of services; cooperative research; and secured research grants

AND OTHERS start-up activities; facility operations; fund raising; risk management and others

OPERATIONS STRATEGIES LEAN, WORLD CLASS OPERATIONS

CUSTOMER SURVEYS -- customer preferences and market acceptance for trials, research etc.

MARKETING STRATEGIES -- including advertising and promotion; which may vary for each core competency

FUNDING STRATEGY – debt and equity structure, and pro-forma’s for start-up and operations

STAKEHOLDER MANAGEMENT-- public, press, industry competitors; elected/government officials

ADMINISTRATION FLAT MANAGEMENT STRUCTURE

GOVERNANCE -- statutory board responsibilities vs management responsibilities;

MANAGEMENT -- performance tracking: finances; sales; results and benchmark best of class

EMPLOYMENT PLANS – management; personnel; recruitment; salary; training/professional development

MAKE OR BUY DECISIONS --

Form Follows Function1

RISK ANALYSIS (ISSUE MANAGEMENT)

KEY ASSUMPTIONS -- especially as it relates to the customers and the facility usage

MAJOR RISKS -- including financial, market, operational, regulatory and other risks

CRITICAL ISSUES MANAGEMENT

FINANCIAL PLANS COST MINIMIZATION

COST ASSUMPTIONS -- fixed and variable costs

PRICING AND VALUE -- cost recovery; cost plus

SALES FORECASTS -- scenario forecasts and 'break-even' analysis

BUDGET SUMMARY -- sources and uses