Strategic Initiative Action Plan

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Sample high-level plan

Here's what a simplified high-level action plan for a manufacturing unit of an electronics company might look like:

  • Unit: Manufacturing
  • Priority issue: Long-range capacity plan
    • Description: Design and build new facilities that will increase manufacturing's ability to produce higher unit volume at lower cost.
    • Strategic Importance: Our current capacity will not allow us to meet market demand or achieve our strategic objective of increasing market share.
  • Objectives and metrics: Develop long-range manufacturing facilities that will: meet forecast demand from 2010-2017; accommodate testing and manufacture of new products; and achieve dramatic improvement in quality, cost, and customer service.
    • Year 1: Complete design phase and begin construction by year-end
    • Year 2: Complete construction and start-up production by year-end
    • Year 3: Achieve initial running rate of 177 million units per year at a cost of $.325 per unit
  • Steps: (simplified for purposes of illustration)


  • Year 1

    What

    Who

    When

    Establish design specifications

    Manufacturing team; Engineering leads

    January 2010

    Approve specs

    Senior management

    February 2010

    Flow-chart and system design; costing

    Manufacturing team; Engineering and Finance lead

    June 2010

    Detailed drawings for bid purposes; costing

    Manufacturing team; Engineering and Finance lead

    August 2010

    Approval

    Senior management

    August 2010

    Bids

    Purchasing and construction

    October 2010

    Construction starts

    Construction team from Manufacturing and Facilities takes over

    November 2010

  • Resources: Need to hire one full-time construction manager, two plant managers from groundbreaking on, and three assistants to support these managers.
  • Interlocks: (simplified for purposes of illustration)


  • Manufacturing unit works with

    To

    When

    Construction unit

    Manage entire construction process

    Start January 1, 2010

    Legal

    Handle all licenses, liability assessment, and insurance

    Start March 1, 2010

    Customers

    Form customer service committee to design order-entry shipment systems

    Start May 1, 2010

  • Impact estimate:


  • Cost:

    Expense capital = $125 million
    Capital = $125 million
    Equipment = $250 million
    Total investment = $500 million

    Revenue:
    (new plant)


    Yr 1

    Yr 3

    Yr 5

    Price/unit

    $.425

    $.400

    $.350

    Cost/unit

    $.325

    $.270

    $.180

    Units

    177M

    525M

    700M

    Revenue

    $75M

    $210M

    $500M

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