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Production or Manufacturing Every manufacturing business has a production process - the way it goes about fabricating a raw or component material and creating an item with greater usefulness or desirability. Integral to the overall understanding of a production oriented business is an appreciation of how the company will manufacture its products.
One straight forward way of conveying such information is to examine this activity in terms of resources, processes, and output. Resources may be characterized as those elements the firm must utilize in an effort to manufacture a desired product. Typically, these include manufacturing facilities, machinery, equipment, materials and related assets, and labour.
Depending on their relative importance, attention might be focused on each of these elements. In the case of a production facility, it is important to discuss the process by which a company will manufacture its products.
This usually involves some description of the plant, equipment, material, and labour requirements. What techniques and processes are going to be used in combining these resources, such as assembly lines and robotics; and the capability of the business in terms of production rates, critical constraints such as productive capacity, or quality assurance programs.
The operational plan might include a profile of the facility, that will be used, including comments regarding size, location, and related specifications - clearance, loading docks, and proximity to other outlets such as railways and airports. There should be some comment as to the nature of the machinery and equipment being used or acquired.
Also, sources of raw materials or components availability, price volatility, and key supplier relationships are often worth mentioning. The number one question being asked here is how you are going to implement the techniques and processes to get your product out the door. What sort of machinery are you going to be using and who's going to be using it?
Take the time to evaluate your production process and assess the plan to see if you can enhance efficiencies and improve the quality of the finished product. In doing so, you may find little gaps here and there that may serve impede the bottom line - profit.
Look at the various stages involved in creating your product or service, can these stages be shortened? Remember, you must use your judgement in deciding how much detail should be offered in the operational plan.
Just remember that you want to convey to your reader that you have covered all of your bases when it comes to production.
Here are some points you may want to consider when putting your operational plan together: Capacity Capacity is the measure of how much work your facilities, labour force, and equipment can handle.
Does your production process have the capacity to keep orders up? Do you have too much capacity? Productivity Productivity measures how long and how many people it requires to produce your product or service. If you can produce more goods in less time, you can improve the bottom line from every dollar spent on equipment and operating costs such as salaries and rent.
Labor What kinds of and how many employees do you require to produce your product or service?
How are you going to use them? Are you going to be using seasonal workers? Quality Assurance How are you going to keep consistent and maintain the same standards with each product or service?
Such activities include regular inspections throughout the production process, occasional testing or sampling of goods. Facilities In business, the location of your facilities can prove a critical factor for your success.
If your business is going require a large outlay of capital assets at the onset, you will need to make sure the facilities are adequate and are positioned properly.
What's the use of setting up a manufacturing facility in a rural setting with no transportation mechanisms? You will need to decide how you are going to get your product to your consumer and position your facility that will be both cost effective and efficient.
When evaluating your facilities, examine those aspects most important for your particular business. Do you need to be close to certain transportation facilities?
Do you need to be close to key suppliers? Do you need to be downtown?Comments () Marlowe October 20th, Hey, it’s Marlowe.
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