|
| Production Plan | Competition Analyze is concerned with Production Plan as it covers production process, purchasing of the necessary equipment and raw materials, productive capacity, transport, commercial, energetic inputs and everything that are able to raise general project’s costs.
The main purpose of the Production Plan is to give information on production provision of goods and elaboration of arrangements how to maintain and develop production. You have to include in this chapter information on enterprise’s location, required production capacity, equipment that is needed to purchase, characterize the whole production process. While writing Production Plan you have to follow some rules:
1. As you business plan will be read by not persons engaged in production but financiers make sure it is clear for laity.
2. Production plan size has to be 10-15% from total size of the business plan. If you think something very interesting, it is better to make special appendix of any size.
3. In some instances the choice of the business location is very important. If it is necessary, prove your opinion, show an opportunity of convenient drive and ease parking, availability of loading-unloading area, railway remoteness and so on.
4. Take into account that investors prefer to purchase facility or lease with option to purchase.
5. A new building has to be substantiated in depth as it is hard enough to get money for this action. Don’t forget to include costs for estimation, registration and so on.
6. It is also difficult to convince investors of the need for financing the repair. In such case you have to prepare an estimate of expenditures.
7. Describe only installed equipment or if you have an offer for supply with showed complex costs.
8. Analyze in details an opportunity of heat supply, power supply, availability and reliability of existed communications.
9. Point out whether ecological and sanitary-epidemiological permissions are needed. Such problems can put off starting a business to uncertain term.
Production plan’s content depends on kind of business. As for example one for process industry has to contain description of supply management policy and determined suppliers. Human services require special attention to business location. It is also necessary to provide description of the main production facilities. For existed business this item must contain description of production and warehousing facilities, special equipment, machines owned by the enterprise. For the new one you should analyze condition of existed basic assets and assess necessity of purchasing new ones. It is worthwhile to calculate equipment requirements for 2-3 years.
Production program, estimated for existed capacity, compares with market needs. In such a way the necessary and sufficient increase of production is defined. The necessary production potential, as well as basic production assets and physical recourses requirements are based on market needs of products.
The calculation of basic assets needs is carried out of each kind of basic assets. Then one or some the most effective variants are chosen. And they are the basis of the production plan.
|
|
