production plan, (business plan)

1. TECHNOPRENEURSHITECHNOPRENEURSHI
P_HITP_HIT 220220
PRODUCTION PLAN_2
DR. M. CHANAKIRA
2014

2. LECTURE OUTLINELECTURE OUTLINE
• Introduction
• Production/Operations Objective
• Type of Machinery/Equipment Required
• Description of Production Process
• Process Map
• Quality Management
• Environmental Compliance
• Capital Investment
• Production/operations staff

3. INTRODUCTIONINTRODUCTION
This section of the business plan provides details of the
product that is being manufactured or alternatively, the
service that is being offered.
It answers the questions:
 What do you want to produce or manufacture?
 How do you want to do it?

4. INTRODUCTIONINTRODUCTION
What resources (financial/material and human)
do you require to manufacture the product or
produce the service?
Do you have a reliable source of raw materials?
How will you ensure quality of your products or
services?

5. PRODUCTIONPRODUCTION
/OPERATIONS/OPERATIONS
OBJECTIVEOBJECTIVE
Explain clearly what product you want to
produce or manufacture or
What service do you want to offer

6. TYPE OFTYPE OF
MACHINERY/EQUIPMENTMACHINERY/EQUIPMENT
REQUIREDREQUIRED
Example: To produce and sell one day old chicks
Required: 6C - 1,000 Egg Combo Incubator, with the following characteristics
* Auto Tilt Turning – Combo.
* 1,320 chicks monthly
* Capacity
* Manufactured by Pleysier South Africa
* Relatively little maintenance required

7. TYPE OFTYPE OF
MACHINERY/EQUIPMENTMACHINERY/EQUIPMENT
REQUIREDREQUIRED
 Size of facilty: 2X6C - 1,000 Egg Combo Incubator
 Location: Belvedere Technical Teacher Training College

8. DESCRIPTION OFDESCRIPTION OF
PRODUCTION PROCESSPRODUCTION PROCESS
 Provide details of product design and
development
 Include diagrams and explain how the
processes work.

9. PROCESS MAPPROCESS MAP
Chicken Incubation process map
1.Raw materials/Process eggs/Incubate eggs/Place
chicks in a warm place
2.Listing of process steps

10. QUALITY MANAGEMENTQUALITY MANAGEMENT
 Quality is consistent conformance to customers’
expectations (standards/measurement/control)
1. Define the characteristics of the quality
2. Decide how to measure each characteristic
3. Set quality standards
4. Control quality against those standards
How is quality in chicks to be implemented?

11. QUALITY MANAGEMENTQUALITY MANAGEMENT
 Warranties and guarantees (quality)
 Are you going to provide warranties or
guarantees for your products?
This reflects confidence in the quality of your
product.

12. ENVIRONMENTALENVIRONMENTAL
COMPLIANCECOMPLIANCE
What environmental concerns do your project
present?
i.e. Pollution, smoke, noise, waste disposal etc.
Permits required for compliance?

13. CAPITAL INVESTMENTCAPITAL INVESTMENT
 Capital investment in the manufacturing process (Details
refer to your Financial Plan)
▼1. Cost of machinery –US$6,000 (Itemise)
▼2. Operational (Running) expenses- US$4,000 (Itemise)
▼3. Amounts required over next 3 years-US$24,000 (Itemise)

14. PRODUCTION/OPERATIONSPRODUCTION/OPERATIONS
STAFFSTAFF
▼1. How many operations staff are
required?
▼2.Who is going to do what?
▼3.What are their skills set?
Provide this information in a table

15. RAW MATERIAL NEEDEDRAW MATERIAL NEEDED
(INVENTORY)(INVENTORY)
Incubators (Suppliers: Pleysier)
Fertilised eggs (Suppliers: Surehatch)