Operational/Production Plan

In the operational phase of business planning, you will describe the facilities, labour and overheads required to manufacture your propose product(s) or render your proposed services(s). If you are in the manufacturing business, your will explain the manufacturing
process for making your products. For a service business, you will describe the key process of offering your service(s). In both manufacturing and service industries, you should indicate any regulations, compliances and approvals that will affect your operations.

Plant, Facilities And Equipment
Type of Facilities Required

• List all equipment, machinery showing the cost, model and their capacities.
• List any other facilities required to set up the business and show your cost; lease purchases.
• Explain your plans for repairs and maintenance of the machinery
• Show your factory/office layout
• Levels of production (max. and mm)
• Explain expansion and future plans of your office/factory

Production Strategy

• Describe your product development from ideation to sellable product or services
• Indicate costs you will incur when developing your new product
• What kind of technology will you use?
• What changes do you anticipate in technology and how will you cope with them?
• Describe your material requirements
• Who will be your main suppliers
• What alternative sources are available?
• What stock level do you anticipate?
• Describe the skills required for efficient production both for direct and indirect workers.
• Describe monthly production costs per product/service.
• What will be the total production costs in a month?
• Purchasing and stock control
• Production information evaluation

Production Process

• Show stages to follow in producing the products/services
• Procedure/methods involved.
• What external factors are likely to affect your production process?
• How will you minimize the effects of external factors?

Regulations Affecting Operation

• Outline the Government regulations and approvals that will affect your business
• Describe the required licenses and cost of procuring them.
• Are you legible for VAT, Income Tax and Local Authority Rates?
• What other approvals are required before commencing operations? (Consider health, trademarks, copyrights, safety regulations and environmental regulations