Production plan in the business plan: description, functions, content

The document that gives the project a detailed rationale, as well as the opportunity to evaluate comprehensively adopted decisions and planned activities as highly effective and allowing to respond positively to the question of whether a project for investing money is a production plan. The business plan should reflect almost all the actions that will be necessary in setting up production.

Functions

First, you need to show that the service or product will necessarily find a consumer, calculate the capacity of the sales market and make a long-term plan for its development. Secondly, you need to accurately estimate the costs that will be required when manufacturing and marketing products or providing services or works in the market. Thirdly, it is necessary to determine the profitability of production in the future, showing all its effectiveness for the investor (enterprise), for the state, regional and local budgets. And in this entrepreneur will help the production plan. The business plan also contains its main functions.

1. It should be an instrument by which an entrepreneur assesses the actual results of a certain period of activity.

2. In the development of the concept of prospective business is also used production plan. The business plan has all the tools to attract investment.

3. The strategy of the enterprise is also realized with its help.

Content

In the planning process, the most important stage is the production plan. The business plan should have everything necessary for planning within the firm, and to justify subsidizing the enterprise from external sources, that is, they receive money for a specific project - bank loans, budgetary allocations, share participation of other enterprises for the implementation of the project.

That is why it is necessary to reflect absolutely all aspects of commercial and production activities and financial results of the enterprise. The structure of this document is subject to unification according to the norms that provide for any production plan. The business plan (an example will be given below) should contain certain sections. For clarity, take a standard sample.

Summary

The first section is a survey. This is a summary. It is the most important, because it briefly reflects the whole essence of this project. Virtually all the success depends on the content of the first section, on what exactly is the production plan in the business plan. An example of refusing to cooperate after getting acquainted with the resume of an entrepreneur can be given far more than one. The first section should bring interest to the enterprise from potential investors.

The following items should be displayed in the summary. First of all - the purpose of this project and a brief description of the company. Then, also briefly stated the most attractive moments and positive aspects of the business idea that is proposed (here it is necessary to choose facts from all other sections, the business plan of the production enterprise is always drawn up so). Further, to designate the volume of attracted credit resources and investments with the main financial indicators, which can characterize the effectiveness of this project. It is obligatory to indicate the expected terms of repayment of borrowed funds. List the dates and numbers of the certificates and patents received. To finish the summary is recommended by the facts, which confirm the economic and legal guarantees and reliability of the future enterprise.

Company description

The second section is devoted to a detailed description of the planned enterprise. This is not yet a production section of the business plan, but many items from there are condensed here - they seem to anticipate the gradual disclosure of the attractiveness of this object.

1. Profile: the service industry, or trade, or production, the nature of the company and the main types of its activities.

2. Business and the stage of its development.

3. The main objectives of the establishment of the enterprise, all its organizational and legal standards.

4. Suggestions, with which the company will reach its customers.

5. If the enterprise already exists, then it is necessary to provide all the main economic and technical indicators over the past 5 years.

6. Today's geographical boundaries of activities and in the future.

7. Detailed coverage of indicators of competitiveness: all services, goods of similar enterprises for specific periods and markets.

8. Explain how this enterprise differs from all the rest of this profile.

Description of activity

In the third section, the business plan for production activities contains a detailed physical description of services or products with the potential for their use. It is necessary to indicate all the most attractive aspects of the products and services that will be offered, to indicate the degree of their novelty.

It is very important to indicate the degree of readiness of the offered services or products to enter the markets (information from those consumers or experts who have familiarized with the product and can give a written favorable response about them is very relevant).

Marketing strategy

In the fourth section, the production plan of the business project must contain a detailed analysis of the market, and it is also necessary to outline your own marketing strategy. The purpose of such an analysis is to explain how the future business intends to influence the existing market, how it will react to the situation emerging there, so that the sale of goods or services is provided. This is primarily a definition of capacity and demand, an analysis of competition and many other factors of impact. As a result of market research, forecasts should be made on sales volumes. Everything that relates to the promotion of sales, pricing, product promotion, that is, the entire sales strategy, including advertising, is relevant here.

The marketing strategy includes many components. This is the result of market segmentation and new technologies, the pricing strategy for goods and services of the enterprise and price forecasts, market coverage, product assortment development, resource strategy, the right choice of methods and methods of product distribution, promotion of its marketing, advertising strategy and development prospects of the enterprise.

Production plan

In the business project, the production plan is the most meaningful part of it. The development of a production plan (business plan) begins with a general approach to the organization of production: it is necessary to indicate what materials and raw materials are needed, where their sources are and what the terms of supply are. Further: to describe the technological processes of the whole production with the necessary equipment and the designation of its capacity, to list the labor resources and all the requirements in this plan (administrative, engineering, production), indicating not only the working conditions, but also the structure and composition of the units, including training And the expected changes as the company develops.

To update the products, a plan should also be drawn up with a description of scientific approaches, principles, systems, methods, technologies, justification of investment projects from the technical and economic side, indicators of competitiveness, resource intensity and quality of products of competitors and the enterprise. There must necessarily be a plan for R & D (research and development).

In addition, the business plan for production should include a section on the sale of products. It is necessary to address such questions:

1. Calculation of production capacity of all divisions of the given enterprise.

2. Operational calendar plans for the sale of products.

3. Detailed analysis of the use of production capacity.

The production section of the business plan should include sections concerning the technical level of the enterprise and its enhancement, the organizational level in production, the development of the team in the social plan, and a list of environmental protection measures is mandatory. And finally - investment projects for the development of production. This is accompanied by schedules for the implementation of the work with a list of the main stages of the implementation of the submitted project, financing needs for implementation (in stages), reflecting the planned timeframe for each stage.

In the production plan for business planning, a section is included on production support, analyzing the efficiency of resource use and calculating the needs for their types. In terms of material and technical support of the enterprise, information management and normative and methodological support of activities, too, there must be corresponding sections.

Organization and management

The seventh section of the business plan includes a description or an enumeration with a brief description of all the main participants of the planned enterprise. This is the entrepreneur himself and his partners, investors, the board of directors and employees holding key positions. The scheme of organization of the company with all internal communications and division of responsibility should be presented, the order of selection and preparation of employees, and also payment of their work is designated.

The implementation of the business plan provides for such important points as the development, approval and approval of programs for the implementation of the strategic plans drawn up. There should be organized accounting and control over the implementation of plans, as well as motivation to ensure that the plan was implemented in a clear time, without losing the required quality and without increasing costs. The process of implementing a business plan must be regulated if there are changes in the internal or external environment of the new production.

Finance

The eighth section of the business plan, coordinated with the materials that were presented in all its other parts, with generalizations and the provision of the value of each section, is a financial one, and therefore it must include the forecast of the volumes of implementation, the balance of revenues and expenditures in monetary terms, The financial budget of the whole enterprise and the forecast balance.

In addition, the financial section should present the company's operating budget, its management of insurance, risks, the forecast for operations with securities, the main indicators of the project for its efficiency, the payback period, and net income, and internal rates of return , And profitability.

Risks

The ninth section is devoted to assessing the risks most likely for this project, and perhaps a more accurate prediction, in what these risks can result in the implementation of force majeure.

Here, answers should be given to minimize risks and possible losses because of them. Usually in the business plan they are divided into two parts: in the first they describe the organizational measures for the prevention of any risks, and in the second they outline the self-insurance or external insurance program.

The second option

There are examples of drawing up a business plan with a more extended eighth and additional ninth and tenth sections. Concerning the financial plan, it can be said that it has just been expanded somewhat. There are reflected monthly, quarterly and for each year, the change in the dollar to the ruble rate, given a list and rates of taxes, outlines ruble inflation. Details are given on the formation of capital at the expense of loans, issues of shares or equity, as well as the procedure for the payment of these loans and interest on them.

In the financial section, three main documents: a profit and loss statement (the operating activity of the enterprise for each period), a financial plan and a balance sheet about the financial state of the enterprise at the moment. The following are attached: the proposed repayment schedules of loans with interest payments, information indicating the initial parcels and changes in working capital and the payment of taxes. In addition, calculations of indicators of solvency, liquidity and projected effectiveness of the project are usually applied.