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Production planning: Show 'em you can do it

May 3, 2012 - Tags: Planning

Istock 000008027025xsmallThis guest blog post is provided by the Atlantic Canada Opportunities Agency who is responsible for creating opportunities for economic growth in Atlantic Canada.

Regardless of which industry you are in, your business plan is an opportunity for you to demonstrate your thorough grasp of how to manage business operations in a cost-effective manner. The production planning part of your business plan is a good place to include details about:

1. Your facilities and assets, such as:

  • The location and size of your facility, including floor plans
  • Your facility's capacity for materials and equipment, percentage being used and how long that will last
  • Whether you lease or own the facility and equipment
  • Your proximity to suppliers, if applicable
  • The quality of your machinery and equipment
  • Your access to transportation
  • Any future considerations for expansion or moving
  • Any renovation considerations and associated costs

2. Your materials and supplies, such as:

  • The number and reliability of your suppliers
  • Whether you have adequate storage facilities for materials
  • Any regulations or permits for supplies / materials
  • Any risks associated with materials and supplies, i.e. customs regulations, transportation concerns, environmental issues

3. Your personnel, such as:

  • Your number of employees, including past, present and future projections
  • An organizational chart showing how your staff is organized
  • The skills, training and experience required of your employees, including the cost of training
  • What compensation and benefits you provide each position, including all salaries, wages, overtime, and/or fringe benefits

4. Your operations, such as:

  • The industry standards for production, such as ISO requirements, environmental, and health and safety standards
  • Any relevant government regulations, such as environmental safety, hazardous material handling and insurance
  • If you are starting a new business, how long it will take to acquire facilities, equipment and personnel before setting up your operations and completing your first production run

Spelling out the details of your business operations in your business plan can go a long way in showing potential investors you have what it takes to succeed.

Stay tuned for more on this topic: All in the numbers: financials for your business plan

See related blog articles: Getting started with your business plan | Executive Summaries: a key part of your business plan

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