The production plan, or the success vector of any enterprise

The meaning of the activity of any manufacturing enterprise is to create a product that is valuable for the consumer, with minimal costs, that would be successful in the market. It is impossible to realize this goal without forecasting and planning the future.

It is no coincidence that the business plan provides for a special section detailing the upcoming technological and innovation processes, the tradition of quality control at the enterprise, the potential opportunities and the real workload of equipment, compliance with environmental standards. This section is called the "Production Plan". It is from its richness and validity that the achievement of all other goals, including financial ones, depends.

What is a production plan? How is it compiled? First of all, this is a document for investors, which should convince them that the business idea is feasible and commercially attractive. To achieve credibility without economic calculations and mathematical calculations is impossible, therefore in the technology section there is always a large number of formulas. The aggregate capacity and planned output volume, equipment performance, break-even point, labor efficiency index and other indicators should be calculated. The business plan for production should have the right combination of general formulations and specific information, as well as high readability and credibility. It is important that the investor, even without deep technological knowledge, could understand whether to support the project or not. For greater clarity, diagrams and graphs are constructed that show the dynamics of the indicators by months. In the following economic and financial sections, these data will be used to calculate the most important indicators - profit, profitability, payback period, net income.

As a matter of fact, the production plan is the basis of all other sections. The information contained in it, its logical correspondence to economic calculations and calculations plays a decisive role in the decision to finance the project. It is good, if the investor will find in the document the answers to questions about what the production dynamics will be, whether it will be necessary to open new plants, expand the fleet of equipment, whether there are conditions for the normal supply of raw materials and the sale of finished products, whether waste utilization will be applied. If the production plan is developed not for investors, but for internal use, then another approach to its preparation is applied. The main goal here is to properly distribute the load to individual shops and divisions, to adequately load equipment, to ensure its well-coordinated work, to produce a sufficient number of each product from the assortment without marriage, with minimal costs.

When an internal internal production control plan is drawn up at the enterprise , the results of marketing research, the state of the equipment, the supply of personnel, and the available reserves are necessarily taken into account. The more factors will be taken into account in the process of drafting the program, the more likely will be the release of quality products that meet the expectations of customers and commercial success.