Mysore Maligae Chethana Prithvi

Business Plan - Outline / Description of the production process and justification for the location.

Description of Good Manufacturing Process or service to offer

In the previous sections of your business plan, the employer may have convinced the reader that the product or service is superior to competition and that there are enough customers willing to buy at a price fair. But investors know that if the employer does not have the adequate infrastructure in a convenient location and if you have an efficient system of production and distribution, it is difficult for business to be sustainable, despite the benefits of the product or service.

If your company is engaged in the production , you should describe your business plan, what are the steps required for processing, which processes should be followed and what characteristics should the product their proper marketing. This requires that you have extensive knowledge about the product and total mastery of the manufacturing process.

For cases of productive activities must also develop the following considerations
:

• Technology to use. The technology to use should always be based on the market and plans to meet growth and expansion of the company. You may find many types of technology, so that by stage of project development and as the market that we serve is able to work with intermediate technologies and more or less advanced.
• Other issues to consider are those related to productivity and product quality. These issues are very important in our days and what better way to be included from the preparation the project. To plan the quality policy of your company, you should ask yourself the following goals:
  1. improving performance, coordination and productivity
  2. Establish objectives pursued
  3. Achieving and maintaining product quality to meet the underlying needs and explicit customer.
  4. establish indicators to assess compliance with the quality sought. (For ex.) Control of the characteristics of the product or customer satisfaction rating
• Finally, an increasingly important issue to consider in this chapter are the environmental aspects.

If your company is specialized in services, should consider the development stages of each of them, the resources available to perform them, the staff recruited for their achievement, working hours that must be used, etc..

Outsourcing services shall be indicated in the business plan, indicating which parts of the production process are the subcontractors or what service you are requesting to other companies.

Key points:
For companies Production:

• Singular elements to produce
• Value individualized process, from procurement of raw materials to product output market
• Parties process that engages
• production schedule that includes annual planning
• maximum production capacity with available resources
• Product rating ( raw material cost, labor cost )
• Volume production diary
• needs (water, electricity ,...)
• Characterization of means and equipment
• Work organization: spatial distribution

For service companies to other companies or individuals:

• description of available services, and phases of the process, defining the profile required for the task
• Schedule services
• Parties of the process subcontracts
• Maximum services with available resources
• Defining human and material resources
• individual rating of the service ( Material resources, HR )

process of producing the good or service

The production process is the set of measures to build, create or produce a good or service in a given period. A production process involves a series of operations, technical resources as tools and machinery and staff who possess the necessary skills to achieve its aims.
To establish a production process is necessary: \u200b\u200b

1. EBITDA define the good or service. The flowchart is a graphical representation of the production process of a good or service. The flowchart is a simple and clear to inform workers of the processes and allows to see the bottlenecks that may have the process, helping to establish the required improvements.
2. Set standards quality. quality indicators are needed to measure the problems that might arise during production and how best to overcome them. As already explained, a quality indicator is concerned mainly with the satisfaction that can reach a customer buying a product or service, ie to work as expected ... and better. This is what marketers call: to exceed customer expectations. These indicators are based on performance criteria, evaluation, efficiency, effectiveness and management.
3. Identify the critical factors in meeting the standards DECAL. critical factors in the process production are:
   • The human resource management: recruitment, selection, training, retention and development. Enterprises need to have a trained and skilled personnel to properly perform its tasks.
   • inventory management of raw materials, finished products or semifinished products. It requires having the necessary inputs to meet the business plan and deal with any contingency. Also required to respond to changes or variations in demand.
   • The life cycle of products. Given the constant changes that occur in the environment, the evolution of technology and globalization, the life cycle of products is getting shorter, so that companies must always look ahead to changes in its permanent mission meet customer needs.
   • technology. is a key success factor in business, because it depends: a) optimizing the production process, b) improvements, c) the efficient use of resources d) the prompt response to changing environment. Proper use of technology allows the reduction of total costs, and creates a competitive advantage for the company. This means not only the adequacy of the instruments, tools and knowledge, but ongoing training and adaptation to environmental changes.

Justification for the proposed location.

The issue of location for service companies is not determinative in many cases, except in services that include customer care. However, in where the location is important, it must be premised on minimizing installation costs and leverage resources from the environment to meet business demands. . In any case, we must be careful to satisfactorily answer the following questions :

• proximity to customers, if the local market.
• The proximity to suppliers of materials and supplies.
• The convenience of being so close to the competition and not be able to differentiate our product or service, or being around it for evidence of differentiation of our product or service.
• Ease of access for customers and employees.
• Proximity to relevant agencies and institutions for the company: city, banks, among others.
• The ease of access to services: water supply, garbage collection, surveillance and security, parking, etc. The possibilities of subcontracting parts of their operations that are not strictly their specialty, may be of primary importance. For example, for fresh agricultural products and semi will require cooling systems, technical assistance and other services contracted.
• The availability of adequate manpower.
• legal framework in the selected area.
• fiscal support, economic, educational or counseling that exist in the area to promote investment, as in the case of industrial parks.
• Provision of infrastructures, equipment and possible outsourcing of activity.
• Increased costs due to displacement.
• labor cost

business activities are highly dependent on location. location is quite a lot in these cases. Be careful to correctly locate business.
production companies for the issue to resolve is as follows: I place the plant where the market or in the location of inputs and other services for the production ? Do not continue without giving an answer to this question than meets .

Be proactive, future needs related to space and location for business growth and diversification. If you are able to enumerate and clarify the reasons for setting foot in one point or another, have the advantages and disadvantages of the election.

space requirements and business characteristics define the election as council visit or see other companies "like" going to give you ideas for improvement and above all allow you to have references.

design and layout of facilities
The facility layout is about the appropriateness and order of each one of the production process, ie how to physically plant order , office or workshop, so that the work is carried out efficiently. A good distribution helps minimize the costs of handling and transportation of supplies and materials, storage of information flows and the process of entry and exit of products and create a harmonious and friendly environment where you can perform staff.

For good plant layout should consider the following:

• Order and Supervision: efficiently order the production area for the activities flow freely and integrate all the elements to keep control over the production process.
• Production times: use schedules and work plans for the production is performed on time.
• Circulation: the production area must be free movement of both people or materials, in this way does not interrupt the production flow. Therefore, is important to know where is located the machinery, equipment and tools
• Safety and Health, the area where it occurs should be pleasant, comfortable and safe , to have an environment where all employees feel comfortable and insurance, ie a place where there are no accidents. The provision of machinery and equipment must be adequate. You must specify safety and protection. For example, a MyPE dedicated to manufacture wooden furniture, must have specific areas for their machines, so that does not generate danger to their workers also insist that their workers permanently meet safety standards minimum and wear masks to guard their airway sawdust, wear gloves to protect sharp tools or chemicals that burn skin and wear glasses to protect your eyes from chips and sawdust. Do not neglect these aspects, as some diseases occur when workers are exposed to chemicals and tools that are dangerous .
• Flexibility: make the production area to adapt to changes, either because must be increased or personal machines, or because you have to repairs.

MSEs can use the following models of physical distribution of facilities :

1. fixed distribution facilities. The production area is designed so that the area where materials are located is set in one place. The posts are positioned near the area where materials are located. This distribution is given, for example, in building houses, bridges and tunnels.

1. distribution facilities according to the processes. Distribution is on the basis of the specialization of labor, that is, workers are grouped to be devoted to the same function in the same area. This model is used when multiple products are manufactured in small volumes and when you have multiple types of customers. Companies that use a process layout are usually: garment companies, maintenance shops, carpentry shops.

1. distribution facilities according to the product. is best when it comes to production processes linear and uncomplicated. Machines and equipment are located next to the other according to the sequence or order to continue the process. It is recommended when mass production and produces large amounts, for example, bottled soft drinks, canned preserves, packaged cookies, auto assembly.

Sources - Business Plan

tool to assess the viability of a business

Karen Weinberger Villarán

- Guide for Preparation a business plan