* The calculations use the average data for the World

Step 7: preparing a section of the business plan "Production Plan"

If you are opening a manufacturing enterprise, there should be an additional chapter in your business plan dedicated to describing the production process of the goods.

The main goal of this section of the business plan is to prove to the potential investor that you can ensure the production of the planned volumes of high quality products and on time.

Process description

First of all, answer the question whether your company is already operational or is it just being created. This is what interests your investors and partners in the first place.

Often, a production plan is compiled on the basis of a sales plan for products. In this section, write about how you plan to produce your product, and consider all the stages of creating a product or service. It is best to arrange it in the form of a calendar plan, which will include a forecast of the timing of activities and the amount of funding required for their implementation.

Describe in detail all the nuances of the technological process (best of all with visual schemes) from the moment of acquisition of raw materials and to the sale of finished products to wholesalers.

Think about how you can improve the process and what it takes. The composition and structure of production capacities may not be considered in great detail.

If this information is of particular importance (for example, for large manufacturing companies), it can be indicated in the appendix to the business plan.

But the issues of supplying raw materials, materials and components deserve more attention, since the stability of the technological process largely depends on them. Write what material values (land, buildings, production facilities), stocks of raw materials and materials, what equipment and components your company has now and how it will be delivered in the future.

If the raw materials you use require special conditions of transportation and storage, write about how these conditions will be observed. Consider how quality control and timeliness of deliveries will be carried out, because the profit and reputation of your company depend on this.

Evaluate productivity indicators, which are determined by the amount of time and human resources needed to produce a product or service. This indicator also directly affects the size of profit, which is especially interesting for investors.

Describe what equipment is required to produce the product. If, at the time of writing the business plan, the enterprise does not have all the necessary equipment, indicate what it takes to acquire it and how long it will take to purchase, install, debug and launch it from the moment it receives the required financing.

Consider in detail the requirements for quality control at all stages of production, specify the standards by which you will be guided.

Pay attention to energy supply issues: list the requirements for energy sources, analyze their availability and consider alternative options in case of interruptions in the operation of the main energy sources.

For example:

In the production process of our products, we plan to use _____. Our main supplier of raw materials is ______. If this supplier fails to fulfill its obligations, we will use the services of another company _____. Components will be transported ____.

____ equipment will be used on our production line. According to the contract, this manufacturing company will provide technical support, which will increase the efficiency of operations by ___%. Thanks to the use of new equipment, we will be able to reduce production costs by ___%.

In the production process, a patented technology will be used, which will further reduce the cost of one unit of production to ___ rubles.

____ is required for the purchase and maintenance of equipment. The owners of the enterprise plan to invest ____ of their own funds.

Qualification Requirements and Availability

In the second part of the production plan, characterize the staff of the enterprise. Pay particular attention to administrative, engineering, and production personnel. Describe the structure and composition of units, working conditions, payment and incentives. Consider staff development and training (if anticipated).

If over time you plan to make changes in the structure of the company’s personnel (as a rule, this is an expansion of the staff), be sure to mention this in the production plan: give forecasts for the development of the company for the next 2-3 years and write down which specialists you will need in this connection in future.

For example:

Currently, the company employs ___ people. The company has the following divisions / departments / working groups: ____. Administration includes ____. Their responsibilities include enterprise management, development of a common strategy, ____. Production staff includes ____. They are responsible for ____.

When assigning wages, we will use the classification of company positions / follow industry standards / strive to ensure that its size is ___% higher than the regional average. The system of benefits and benefits will include premiums, additional medical insurance, assistance in obtaining education and advanced training.

In connection with the expansion of the scope of the enterprise over the next 3 years, it is planned by this time to take ___ employees working part-time / on a freelance basis.