Production plan business plan: description, functions, content

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2020-04-13 05:00:15

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A Document that gives the project a detailed justification and an opportunity to assess comprehensively the decisions taken and activities planned as a highly efficient and enables to answer positively to the question about whether the project investment, - production plan. The business plan should be reflected in almost all the actions that are needed when setting up production.

the production plan in the business plan

Functions

First, you need to show that the service or product will find the consumer, and to calculate the capacity of the market and to make the perspective plan of its development. Secondly, it is necessary to accurately estimate the costs that will be required in the manufacture and sale of products or provision of services or works on the market. Thirdly, it is necessary to determine the profitability of production in the future, showing all its efficiency for the investor (the company), for the state, regional and local budgets. And this entrepreneur will help the production plan. The business plan contains and its main functions.

1. It should be the instrument through which the entrepreneur assesses the actual results of a certain period activities.

2. In the concept development of promising business also uses the production plan. The business plan has all the tools to attract investment.

3. Enterprise strategy is implemented also by using it.

the production plan in the business plan example

Contents

In the process of planning the most important stage - the production plan. The business plan should be all you need for planning within the firm, and to justify the subsidization of the enterprise from external sources, i.e. get money for a specific project is Bank loans, budgetary allocations, equity of other companies for the project.

It is therefore necessary to reflect all facets of commercial and industrial activities and financial results of the company. The structure of this document is subject to greater uniformity in the rules that provides for any production plan. In the business plan (example included below) should contain specific sections. For clarity, we take a standard sample.

Summary

The First section of the review. This is a summary. It is the most important because, in summarized form reflects the essence of this project. Virtually all success depends on the content of the first section, from what is the production plan in the business plan. An example of non-cooperation after meeting with a summary of the entrepreneur can result in far more than one. The first section should pique the interest of the company to potential investors.

In summary must be displayed the following items. First of all, the goal of this project and a brief company description. Then also summarized the most attractive points and the positive aspects of the business idea that is offered (here you need to choose the facts of all other sections, business plan, production enterprise is always formed so). Next, indicate the volume of attracted credit resources and investments the key financial indicators that characterize the efficiency of the project. Be sure to specify estimated date of return of borrowed funds. List the dates and numbers of certificates and patents. Finish summary recommended facts that confirm the economic and legal guarantees and the reliability of operation of the future enterprise.

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business plan for production company

Company Description

The Second section is devoted to a detailed description of the planned enterprise. This is not a production section of a business plan, but many of the items there in a compressed form, transferred here - as if they anticipate the gradual unfolding of the attractiveness of this object.

1. Profile: service sector, or manufacturing, or production, the nature of the company and the principal activities of the company.

2. The business and stage of development.

3. Key goals of the company, all of its legal norms.

4. The proposals, which the company released for its customers.

5. If the company already exists, you need to imagine all major economic and technical indicators over the past last 5 years.

6. Today the geographical boundaries of the activities in the future.

7. Detailed coverage of the competitiveness indicators: all services, goods of such enterprises for specific periods and markets.

8. To explain what distinguishes the company from all the rest of this profile.

production section of the business plan

Activity Description

The third section of the business plan of the production contains a detailed physical description of the services or products with the opportunity to use them. You need to specify all of the most attractive sides of the products and the services that are offered to indicate the degree of novelty.

It is important to specify the degree of readiness of their services and products to the market entry (it is very appropriate will be the information from those consumers or experts, who are products reviewed andcan give a written favorable opinion about them).

Marketing strategy

The fourth section production plan of the business project should contain detailed analysis of the market, you must also outline your marketing strategy. The purpose of this analysis is to explain how future business is going to affect the existing market will respond to the situation there to the sales of goods or services were provided. It is primarily a definition of capacity and demand, competition analysis and many other factors. The results of the market study needs to be given predictions on sales volumes. Appropriate here all that relates to the sales promotion, pricing, product promotion, that is the whole strategy of marketing, including advertising.

In a marketing strategy includes many components. It is the result of market segmentation and new technologies, pricing strategy for products and services of the company and price forecasts, market coverage, developing a assortment, resource strategy, the correct choice of methods of distribution of products, promotion of its sales, advertising strategy and development prospects of the enterprise.

business plan production activities

Production plan

In the business project the production plan is the most meaningful part of it. Starts developing the operational plan (business plan) with the overall approach to the organization of production: it is necessary to specify what materials are needed, where are their sources and what are the conditions of supply. Next: describe the processes of the entire production with the necessary equipment and a designation of its power to transfer labour and all requirements in this respect (staff, clerical, technical, production), indicating not only labor conditions, but also the structure and composition of the units, including training and prospective changes with the development of the company.

According to the upgrade of products is also needs to be a plan with a description of scientific approaches, principles, systems, methods, technologies, substantiation of investment projects technical and economic indicators of competitiveness, the intensity and quality of competitors ' products and the enterprise. Must be the R & d plan (research and developmental works).

the production plan of the business project

In addition, the business plan production the production should include a section devoted to the sale of products. Definitely need to address the following questions:

1. Calculations of capacity of all departments of the enterprise.

2. Operational schedules for the sale of products.

3. A detailed analysis of the capacity utilization.

Production section of the business plan should include sections regarding the technical level of enterprises and improve organizational level, the development of the team in social terms, the mandatory list of the activities of environmental protection. And finally - investment projects for production development. This made schedules of works with a list of the main stages of implementation of the proposed project, funding requirements for implementation (step by step), a reflection of the expected timing of work at each stage.

In the production plan business planning section to be paid for the provision of production, analysis of efficiency of resource use and estimating forms. In terms of material and technical supply of the enterprise, information management and normative-methodical support of activities must also be appropriate sections.

Organization and administration

Seventh section of the business plan includes a description or listing with a brief description of all major participants in the proposed venture. It is the entrepreneur and his partners, investors, Board of Directors and staff, occupying key positions. Should be a diagram of the organization of the company with all internal communication and division of responsibilities, the selection and training of staff and their remuneration.

The Implementation of the business plan includes such important issues as development, coordination and approval implementation programmes drawn up strategic plans. To be organized by the accounting and control over the implementation of plans and motivation to ensure that the plan was implemented accurately in a timely manner, without losing the required quality and without increasing costs. The process of implementing the business plan needs to be adjusted if there are changes in the internal or external environment of the new production.

Finances

The Eighth section of the business plan, coordinated with the materials that were submitted in the rest with generalizations and providing the value of each section, - financial, and therefore it must incorporate the forecast of sales volumes, the balance of income and expenditure in monetary terms, the financial budget of the company and the balance of the forecast.

In addition, the financial section must be submitted to the operating budget of the company, management on insurance, risk in securities transactions, the mainindicators of project effectiveness, and that the payback period, and net present value, and internal rate of return, and profitability.

developing the operational plan of the business project

Risks

The Ninth section is devoted to risk assessment, the most likely for this project, and possibly more accurate prediction, in that these risks may result in case of realization of force majeure.

Here should be answered to minimize risk and potential losses because of them. Usually the business plan is divided into two parts: the first describe organizational measures to prevent any risks, and secondly, outlines a program of self-insurance or external insurance.

Second option

There are examples of preparing a business plan with more advanced additional eighth and ninth and tenth sections. Regarding the financial plan, we can say that he's just a little expanded. There are recognized monthly, quarterly and each year the change in the dollar / ruble exchange rate, given the list and rates of taxes, the outlines of ruble inflation. Detailed information is given about the formation of capital through loans, issues of shares or equity and the payment procedure of these loans and interest thereon.

In the financial section, three main documents: the statement of profit and loss statement (operating activities of the enterprise in each period), the movement plan of Finance and the balance sheet on the financial condition of the company at the moment. Attached: predpolagaemyj repayment schedules of loans payment of interest, information indicating the assumptions and changes on working capital and payment of taxes. Additionally usually are making the calculation of indicators of solvency, liquidity and anticipated effectiveness of the project.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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