2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The purpose of any manufacturing enterprise is to create a valuable product for the consumer that would be successful in the market at minimal cost. Realizing this goal is impossible without forecasting and planning for the future.
It is no coincidence that the business plan includes a special section that describes in detail the upcoming technological and innovative processes, the tradition of quality control adopted at the enterprise, the potential and actual workload of equipment, and compliance with environmental standards. This section is called "Production Plan". The achievement of all other goals, including financial ones, depends on its content and validity.
What is a production plan? How is it compiled? First of all, this is a document for investors, which should convince them that the business idea is feasible and commercially attractive. It is impossible to achieve credibility without economic calculations and mathematical calculations, therefore a large number of formulas are always present in the technological section. Must bethe total capacity and planned output, equipment productivity, break-even point, labor efficiency index and other indicators were calculated. A manufacturing business plan should have the right mix of general language and specific information, and be highly readable and persuasive. It is important that the investor, even without deep technological knowledge, can understand whether it is worth supporting the project or not. For greater clarity, charts and graphs are constructed that display the dynamics of indicators by month. In the following economic and financial sections, these data will be used in the calculation of the most important indicators - profit, profitability, payback period, net income.
In fact, the production plan is the basis of all other sections. The information contained in it, its logical correspondence with economic calculations and calculations plays a decisive role in making a decision on project financing. It will be good if the investor finds in the document answers to questions about what the production dynamics will be, whether it will be necessary to open new factories, expand the equipment fleet, whether there are conditions for the normal supply of raw materials and the sale of finished products, whether waste disposal will be applied. If the production plan is developed not for investors, but for internal use, then a different approach to its preparation is applied.
The main goal here is the correct distribution of the load among individual workshops and departments,adequate loading of equipment, ensuring its coordinated work, the release of a sufficient amount of each product from the assortment without marriage, at minimal cost.
When an internal production control plan is drawn up at an enterprise, the results of marketing research, the state of equipment, staffing, and available reserves are necessarily taken into account. The more factors that are considered in the programming process, the more likely it is to produce quality products that meet customer expectations and commercial success.
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