Business Plans, Making Production & Operation Plan – there are several information that have been written down for you for free of charge in this Business Plans, Making Production & Operation Plan Article. As a matter of facts, important tips were also given a highlighted information.
Although, there more to say that meets the eyes on business plans. Writing a business plans is unique in different ways, this is why will do advice clients to get professionals like us to get the work down.
Business Plans, Making Production & Operation Plan emphasizes more on the importance of production plan, contents of production plan, production planning process, how to determine production quantity, basis for decision making for competitive advantages and others.
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Important keys of discussion in writing a Business Plans under Making The Production And Operation Plan, Emphasizes should be on;
- Explain the role of the production and operation plan in the business plan
- Describe contents of a production and operation plan
- Describe the process of preparing a production and operation plan
- Explain bases for decision making in planning for production
THE IMPORTANCE OF A PRODUCTION PLAN
- How the product will be made?
- Which resources will be used?
- What will be cost of production?
- The production plan will examine the following;
- If current capacity is able to meet sales demand?
- If the company can provide products on time for the market?
- What will be the action plan and what resources are needed?
- Description and proposed production volume
- Description of production procedures
- Plans for equipment and machinery
- Plans for raw materials and other resources
- Estimation of operation costs (cost of investment and cost of production)
- Operating competitive advantages
HOW TO DETERMINE PRODUCTION QUANTITY
BASIS FOR DECISION MAKING FOR COMPETITIVE ADVANTAGES
- 1. State of the art technology
- 2. Cost of production
- 3. Quality
- 4. Know-how
Machinery and equipment decisions
- Buy new equipment or use existing?
- Which equipment? With what capacity?
- What is area location and layout of factor?
- 1. Capacity requirement plan
- 2. Current capacity
- 3. Production procedures and process plan
RAW MATERIALS AND OTHER RESOURCES
- 1. What should be the quality of the raw materials needed?
- 2. Who will be suppliers?
- 3. What should be level of stock?
- 4. How many workers are needed?
- 5. What are the skills and qualification requirements?
BASIS FOR DECISION MAKING
- 1. Competitive advantage on product quantity, production cost, technology.
- 2. Time of delivery, terms of payment
- 3. Cost of stock, characteristic of material cost of purchasing
- 4. Production procedures and process plan
- Land and infrastructure
- Building and plant
- Machinery, equipment
- Working capital
- VARIABLE COST
- FIXED COSTS
- Materials cost
- Direct labour cost
- Other production costs
- General production costs
- Indirect labour cost
- Depreciation cost
- Be clear about the target readers of the business plan and their motivation
- Information in a production plan should be convincing but should not provide information on corporate secrets.
- Describe contents of a financial plan
- Describe the steps of the financial projection process
ROLES OF A FINANCIAL PLAN
- 1. Demonstrates the viability of the project in terms of profitability, investment return and ability to repay debt in order to get financing
- 2. Prove this feasibility with a financial index in the financial projection
CONTENT OF A FINANCIAL PLAN
- 1. Summary of history financials; include the growth of turnover, property turnover for about 2 years should not be over two pages long. This is not applicable to new business
- 2. Summary of forecasted financials; should not be over 3 pages estimated result, feasibility, financial outlook of the project
- 3. Appendices; detailed calculations; attached at the back of your work
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SECTION 1(Business plan section)
- SECTION I – EXECUTIVE SUMMARY
- NAME OF BUSINESS / COMPANY
- OFFICE & SITE LOCATION
- MISSION STATEMENT
- SOCIAL/ECONOMIC VALUE
- PROJECT STATUS & START UP
- WHY PREPARE THIS BUSINESS PLAN?
- SECURITIES FOR THE PROPOSED LOAN
- SECTION II – STUDY AREA
- STUDY AREA
- COMPANY OVERVIEW
- MANAGEMENT TEAM
- DEPARTMENTS IN THE COMPANY
- MANAGEMENT TEAM GAPS
- SECTION III – INDUSTRY ANALYSIS
- DEFINING YOUR INDUSTRY
- YOUR INDUSTRY SIZE GROWTH RATE AND SALES PROJECTIONS
- INDUSTRY STRUCTURE
- MARKET OVERVIEW
- MARKET SEGMENTATION
- RELEVANT MARKET SIZE
- KEY SUCCESS FACTORS
- LONG TERM PROSPECTIVE
- MARKET CHARACTERISTICS
- SAMPLING TECHNIQUE
- SECTION IV – CUSTOMER ANALYSIS
- TARGET CUSTOMERS
- CUSTOMER NEEDS
- MARKET NEEDS / SOCIAL PROBLEMS AND SOLUTIONS
- BUYERS BEHAVIOUR
- MARKET SHARE
- SALES FORECASTING
- SECTION V – COMPETITIVE ANALYSIS
- DIRECT COMPETITORS
- COMPETITIVE ADVANTAGES
- SECTION VI – MARKETING PLAN
- PRODUCTS & SERVICES
- FINISHED PRODUCTS
- PRODUCT QUALITY AND PRODUCTION QUANTITY
- PRODUCTION CAPACITY
- PROMOTIONS PLAN
- DISTRIBUTION PLAN
- SECTION VII – OPERATIONS PLAN
- GENERAL APPROACH TO PRODUCTION
- TECHNICAL ANALYSIS / PRODUCTION PROCESS
- PACKAGING REQUIREMENTS
- SECTION VIII – FINANCIAL PLAN
- REVENUE MODEL
- FINANCIAL ANALYSIS
- FINANCIAL ASSUMPTIONS
- FINANCE CHARGES
- FINANCIAL PROJECTIONS
- FUNDING REQUIREMENTS/USE OF FUNDS
- CRITICAL ASSUMPTIONS
SECTION 2(Feasibility study section)
- FINANCIAL MODELS
- SUMMARY OF PROJECT COST
- BUDGET OF FIXED ASSETS / CAPITAL EXPENSES / INVESTMENTS
- OPERATING EXPENSES (OPEX)
- TOTAL REQUIRED INVESTMENT OUTLAY (REQUIRED START-UP CAPITAL)
- FINANCING PLAN
- INSTALLED / AVAILABLE EQUIPMENT
- BREAK-EVEN ANALYSIS
- LOAN REPAYMENT SCHEDULE AND INTEREST PAID
- FORECAST OF PROFIT AND LOSS
- CASH FLOW
- BALANCE SHEET
- GENERAL ASSUMPTIONS (BREAK EVEN ANALYSIS)
- BUSINESS RATIOS – PROFITABILITY ANALYSIS
- SECTION 3 – APPENDIX
Click other related clicks that may interest you below;
- NOTE; According to our policy, we are not “allowed / permitted” to disclose peoples business or written feasibility study, “to anyone”, irrespective of their personality.
- BUT, WE are permitted to display only executive summary.
- This is just a sample of our executive summary on poultry feasibility study and business plan, carried out in Rivers State.
- 1st sample;
These Feasibility study on poultry farming business (specializing on layers and boilers production), was conducted using projections, impressive publications, compounding interest/values, tables, graph, bar chart, pie chart, profits analysis and cash flow positions in other to give a clear picture of what is obtainable in that location, using eight plots of land, at Esemdiary village, Off Effurun Sapele Road, Okpe LGA of Delta state, Nigeria as a case study.Esemdiary village is a community in Okpe Local Government Area of Delta State with coordinates 05°26’N 5°57’E, which also plays the host community to the Warri Airport, which is actually located at Osubi.
Okpe Local Government is a territory that used to be part of the original Okpe Kingdom, its headquarters is at Orerokpe, with a population of 128,398 people whose primary occupations include commercial farming, fishing, hunting, trading and gas exploration.
After carrying out the feasibility study on Esemdiary village, Off Effurun-Sapele Road, Okpe LGA of Delta state, Nigeria, it was discovered that, farming generally will do well both on crop and animal production.
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