CHAPTER FOUR PRODUCTION AND OPERATION PLAN

CHAPTER FOUR

                          PRODUCTION AND OPERATION PLAN.

This section offers information on how a product will be produced or how a service will be provided.

• Production facilities and capacity.

• Give the types of facilities required.
• List all the equipments, machineries and show the cost of each.
• List any other facility required to set up the business and show the cost.
• Elaborate more on plans for repairs and maintenance of machinery.
• Come up with the factory/office layout.
• Come up with the levels of production i.e. minimum and maximum.
• Elaborate more on expansion and future plans of office or factory.

Table 5 Production, Facilities and Capacity.

• Firm Layout

• Draw the firm layout.
  • Production strategy.
• The means and methods used to produce the products are given.
• Describe the production development from idea to saleable product/service.
• Indicate the costs that you will incur when developing your new products
• Highlight the methods to use e.g. JIT
• Take into account the changes you anticipate in technology and how you will address them.
• Are there any alternative sources available?
• Describe the skills required for efficient production for direct and indirect workers
• Describe the monthly production cost for products and services.
• Compute the total production cost in a month
• Elaborate more on purchasing and stock control methods to use e.g. EOQ,JIT
  • Production process.
• Give the stages in producing products and offering services.
• Give the production materials used in production process
• Give the external factors that are likely to affect the production process.
• How will you minimize the effects of external factors?
• Indicate the factors that affect the production process.

• Elements affecting production operations.
  • Health regulations
• Ensure that all public health guidelines are adhered to in handling all company’s products.
• Regular advice sought from government departments.
• Give the necessary measures that you would take or will be followed to guard against physical injuries of workers e.g. use of mask,boots,jackets and helmets
  • Environmental regulations.
• Environmental concerns are one of the emerging issues in running of any business.
• Adhere to the legislations set by the government.
• Regular audits should be undertaken to check their availability and efficiency
• Are there measures to conserve the environment? For instance, what environmental concerns will be undertaken e.g. planting trees.