TECHNOPRENEURSHITECHNOPRENEURSHI

P_HIT P_HIT 220220

PRODUCTION PLAN_2

DR. M. CHANAKIRA

2014

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

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?

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?

PRODUCTION PRODUCTION /OPERATIONS /OPERATIONS

OBJECTIVEOBJECTIVE

Explain clearly what product you want to produce or manufacture or

What service do you want to offer

TYPE OF TYPE OF MACHINERY/EQUIPMENT MACHINERY/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

TYPE OF TYPE OF MACHINERY/EQUIPMENT MACHINERY/EQUIPMENT

REQUIREDREQUIRED

Size of facilty: 2X6C - 1,000 Egg Combo Incubator

Location: Belvedere Technical Teacher Training College

DESCRIPTION OF DESCRIPTION OF PRODUCTION PROCESSPRODUCTION PROCESS

Provide details of product design and development

Include diagrams and explain how the processes work.

PROCESS MAPPROCESS MAP

Chicken Incubation process map

1.Raw materials/Process eggs/Incubate eggs/Place chicks in a warm place2.Listing of process steps

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?

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.

ENVIRONMENTAL ENVIRONMENTAL COMPLIANCECOMPLIANCE

What environmental concerns do your project present?

i.e. Pollution, smoke, noise, waste disposal etc.

Permits required for compliance?

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)

PRODUCTION/OPERATIONS PRODUCTION/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

RAW MATERIAL NEEDED RAW MATERIAL NEEDED (INVENTORY)(INVENTORY)

Incubators (Suppliers: Pleysier)

Fertilised eggs (Suppliers: Surehatch)