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.
|Office||2 rooms||40,000||5 units|
|Store||2 rooms||20,000||1 ton of|
|Electricity||3 phase||30,000||1000 Kw|
- 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.
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