Operational/Production Plan Notes
In the operational phase of business planning, you will describe the
facilities, labour and overheads required to manufacture your propose
product(s) or render your proposed services(s). If you are in the
manufacturing business, your will explain the manufacturing process for
making your products. For a service business
you will describe the key process of offering your service(s). In both
manufacturing and service industries, you should indicate any
regulations, compliances and approvals that will affect your operations.
4.1 Plant, Facilities And Equipment
Type of Facilities Required
- List all equipment, machinery showing the cost, model and their
capacities. - List any other facilities required to set up the business and show
your cost; lease purchases. - Explain your plans for repairs and maintenance of the machinery
- Show your factory/office layout
- Levels of production (max. and mm)
- Explain expansion and future plans of your office/factory
4.2 Production Strategy
- Describe your product development from ideation to sellable product
or services - Indicate costs you will incur when developing your new product
- What kind of technology will you use?
- What changes do you anticipate in technology and how will you cope
with them? - Describe your material requirements
- Who will be your main suppliers
- What alternative sources are available?
- What stock level do you anticipate?
- Describe the skills required for efficient production both for direct and indirect workers.
- Describe monthly production costs per product/service.
- What will be the total production costs in a month?
- Purchasing and stock control
- Production information evaluation
4.3. Production Process
- Show stages to follow in producing the products/services
- Procedure/methods involved.
- What external factors are likely to affect your production process?
- How will you minimize the effects of external factors?
4.4. Regulations Affecting Operation
- Outline the Government regulations and approvals that will affect
your business - Describe the required licenses and cost of procuring them.
- Are you legible for VAT, Income Tax and Local Authority
Rates? - What other approvals are required before commencing operations?
(Consider health, trademarks, copyrights, safety regulations and
environmental regulations
