Monthly production plan example. business plan production plan

A production plan is a special section of business documentation containing a detailed description of technological processes. It is presented to investors for consideration. This paragraph should be given special attention, as it reflects the skills of the entrepreneur, and it evaluates the prospects of the business. Therefore, if a sufficiently serious event is planned with the involvement of third-party assets, the production plan in the business plan must be carried out professionally.

The calculations that accompany the production plan should be based on the projected volumes of sales and supply of raw materials. The most obvious will be to reinforce the information with a generated calendar (production table) for the supply of inventories, storage and shipment finished products to retailers or end consumers.

The content of the production plan is based on the chain of transformations of input resources into the result of the technological process. Personnel, investments, equipment, raw materials will be used as capacities at the enterprise. At the output, the organization, according to the production project, must issue goods or services that will be in demand in the market and of interest to the consumer.

Features of drawing up a production plan

After the leading sections of the production plan are outlined, it is necessary to determine and predict the indicators used to justify professional calculations. On a standard business example, the following parameters are specified:

• Price utilities. Almost any production in a business requires the use of electrical networks, gas, water consumption and sanitation. When determining the production plan, the costs for the services of specialized companies are taken into account by month, quarter, year;
• Before drawing up a production plan for a business plan, it is important to determine the level of costs for paying wages to staff. It is quite possible that in the first year of operation this will be the largest item of expenditure;
• In the technological plan of business, it is important to lay the supply. For certain categories of production, various formulas for the cost and output of the ratio to sales can be used. The classic proportion of production in business is to calculate the profitability of 1:2. That is, if the cost of producing a unit of goods is 1 ruble, it should cost at least 2 rubles in the end.

In addition to the costs included in business planning, the company's revenue is also taken into account. This includes marginal profit, efficiency in attracting qualified specialists and return on investment. It will also be important to reflect the impact of production costs on the business.

Classification of production plans

Before you start working on a paragraph, you need to decide on the type of end result. This can be an aggregate section of the production business plan, a leading work schedule and a supply plan. According to the frequency of development, they can be short-term (up to 2 years), medium-term (up to 5 years) and long-term (from 10 years and longer). When planning the creation or expansion of a large firm, it is recommended to work out all types of production process plans. This will best reflect the picture of profitability.

Contents of the "production plan" section

The structure of the descriptive part of the technological process is inextricably linked with the expenditure of investments and the further distribution of finances to own working capital. Considering the features of the production plan, the following structure is used in the preparation of project documentation:

• Description of the main production technology that is used to manufacture the target product according to the plan. In this part of the project, all stages of the technological process are described in detail - from the purchase of raw materials to the sale to the consumer. If the workflow planning is based on a unique manufacturing method, the costs and time for patent approval should be factored in;
• Description of the algorithm for the purchase of raw materials, leading suppliers, the cost of inventories. In the description of the production plan, it would be advisable to include the organization of transportation, storage and delivery to the production line, as well as methods for the disposal of waste raw materials;
• Description of involved premises, territories, land plots. In conditions of limited resources for opening an IP, it is advisable to attract capacities, transport on a lease basis.

The production part of the business plan contains the procedure for supplying energy resources or a plan for upgrading existing engineering networks

This section should also include calculation rules for determining the cost of finished products.

It is important to consider that the number of technical and economic indicators of the business plan includes fixed and variable costs of the enterprise.

Production resources and implementation program

A typical classification of technical supply allows you to most accurately determine the sources of consumption in order to justify the volume of production in the business. In most cases, project documentation developers adhere to current standards. What refers to the resources described in the program of production and sale:

• Material supply - working capital, capital, land and energy supply;
• Resources are intangible. The production plan of the enterprise according to the sample includes a description of patents, copyrights, brands and used software;
• The staff is presented as a key resource in any business idea to fulfill the current and future tasks of the enterprise;
• The business plan should reflect the calculation of the need for labor resources, including the burden on the factor of entrepreneurial ability and the administrative apparatus;
• In the central section of the production plan, funds are taken into account by various sources of origin. It can be the money of the founders, current assets of the enterprise, attracted investments. The material factors of production have a direct impact on the company's processes. If they are insufficient, the risk of supply cuts or inability to sustain the viability of other resources increases.

The implementation program includes economic calculations of profitability, quality indicators of fixed assets, the amount of equipment depreciation and other figures.

Justification of the premises

Places (place) of concentration of production capacities should at least correspond to the specialization of the organization in the chosen direction. Along with the choice of equipment and technologies special meaning will have a usable room. Buildings suitable for functionality (idle factories with similar characteristics) can be selected as a business location, or a project for the construction of a new factory can be drawn up.

This should include calculations for storage facilities, boxes and other types of premises that will be used in business activities. As part of the documentation, it is also worth considering the existing engineering networks and their suitability or the arrangement of new communications.

Transport selection

Sample business plans often contain calculations for the delivery of supplies or the delivery of finished products. The fleet is not always profitable for the maintenance of a non-core company. Auxiliary vehicles of universal application can play an important role in the development of business in production. Used cars (like a gazelle) are great for meeting current business needs. Own car will save on the services of carriers at least for the first time.

The organizational plan of a business associated with large volumes of production will require the purchase of a fleet of vehicles. This may be a special technique or a shipment order. In the early stages of development, there is the possibility of attracting private carriers, for example, for one-time shipments. Attracting services on such conditions will save about 30-40 percent of the budget on transportation.

Human resources and recruitment

Before defining the main technological processes, it is important to plan personnel reserves. In the harsh realities of business, leaders of young enterprises often resort to outsourcing services. This method of recruitment allows you to optimize the financial burden on the budget and adjust the development strategy until permanently working professionals are found for full-time positions. Outsourcing is one of the ready-made examples of acquisition, when an enterprise receives uninterrupted resources on contractual terms.

In the case of the recruitment of workers, it will be necessary to provide time and costs for training in the overall production plan. Depending on the direction of the company's activity, it will be necessary to draw up a horizon for reaching the required percentage of qualified specialists (critical for self-regulatory organizations and enterprises implementing a quality management system).

Environmental Safety

For a modern enterprise, environmental safety is not just a careful attitude to nature. Today it is a whole complex of measures for the organization of storage, use of processing of raw materials with subsequent categorization. In concept environmental safety by definition includes research in the field of environmental impact. Without obtaining special conclusions from supervisory authorities, it will not even be possible to start production. The plan includes the position of an engineer for technosphere safety, the cost of one-time services of environmental agencies, various contributions and fees.

Cost Forecast

When developing a production layout, it is extremely important to predict the costs of the enterprise. It is unlikely that the administration will get something for free. Equipment, machines, vehicles and other facilities can be purchased at the expense of investors or rented on the terms of the owner. Wages cannot be delayed, so wages will also be included in the cost items. You will need to plan for both overhead and unforeseen expenses. To keep things from looking gloomy, a revenue forecast is included in the draft production plan. The difference between the planned indicators will be the cost forecast.

In anticipation of the launch of the business, leaders have a titanic work. In the course of cooperation with capital owners, it will be necessary to report not only at the stage of obtaining investments, but also during the development of areas. Therefore, the attitude of the co-founders directly depends on the quality of the business plan, especially since financing can be arranged in tranches.

The production plan is an integral part of any business plan, which should describe all the production or other work processes of the company. Here it is necessary to consider all issues related to production facilities, their location, equipment and personnel, as well as pay attention to the planned involvement of subcontractors. It should be briefly explained how the system for the release of goods (provision of services) is organized and how production processes are controlled. It is also necessary to pay attention to the location of production facilities and the placement of tools, equipment and workplaces. This section should indicate delivery times and list the main suppliers; describes how quickly a firm can increase or decrease the output of goods or services. An important element of the production plan is also a description of the company's requirements for quality control at all stages of the production process.

The main task of this section of the business plan is to determine and justify the choice of a particular production process and equipment by the company.

It should be noted that industry specialized design companies are involved in the preparation of this section of the business plan, which is quite understandable, since the choice of technology and method of organizing the production process largely determines the effectiveness of any production project.

production system

Any organization has a production system, which receives various inputs (personnel, technology, capital, equipment, materials and information) and in which they are converted into goods or services (Fig. 1).

Rice. 1. Production system

Production planning

Production plans are usually classified by breadth (strategic and operational), time frame (short-term and long-term); nature (general and specific) and method of use (one-time and permanent) (Table 1).

Table 1. Types of production plans

If we talk about long-term strategic planning, then at this level decisions are made in four main areas: capacity utilization (how much a product will be produced or a service will be provided), production capacity location (where a product will be produced or a service will be provided), production process (what production methods and technologies will be used to produce a product or provide a service) and the placement of tools and equipment (how work centers and equipment will be located in enterprises). Having resolved these strategic questions for himself, the developer must also draw up and include in the production plan of his business plan the following three documents: a general (aggregate) plan (what is the general production plan for all types of goods or services offered by the company), the main work schedule (how many units of each type of product or service the company will have to produce or provide for a certain period of time) and a plan for the company's need for material resources (what materials and in what quantity the company will need to complete the main work schedule). These plans are called tactical.

Capacity utilization planning

Assume that ABC decides to produce lawn mowers. Through a comprehensive marketing research and market analysis, it determines that middle-class instruments are in the greatest demand among consumers. So the firm knows what it should produce. Next, she needs to determine in what quantity to produce the goods, i.e. how many lawnmowers of the selected model should be produced in a certain period of time. It is from this decision that other issues related to planning the utilization of production capacities will depend.

Capacity utilization planning is based on forecasts of future demand, which are translated into production volume requirements. For example, if ABV will produce lawn mowers of only one specific model, it plans to sell them for an average of 3,000 rubles. per piece and assumes that during the first year it will be able to achieve a sales volume of 3 million rubles, which means that it will need production facilities to produce 1000 mowers per year (3000 x 1000 = 3,000,000 rubles). This is how the physical requirements for loading production capacities are determined. It is clear that if ABV produces several models of lawn mowers and some other equipment, then in this case the calculations will be more complicated.

If the company has been around for a long time, then the commercial forecast of future demand is compared with its actual production capacity, which allows you to determine whether it will need additional capacity for such demand. It should be noted that capacity utilization planning is an activity that not only manufacturing firms, but also service companies are engaged in. Thus, administrators of educational institutions similarly determine the number of places needed to provide educational process for the projected number of students, and fast food chain managers how many hamburgers they need to cook during rush hour.

Once the business forecast data for future demand has been translated into capacity utilization requirements, the company then proceeds to develop other plans to meet those specific requirements. However, both the firm and the persons to whom it presents its business plan should remember that plans for the utilization of production capacities can subsequently change - both upwards and downwards. In the long run, these figures change quite significantly, because the firm acquires new equipment or sells its existing production facilities, but in the short run, the modifications should not be significant. The Company may introduce additional work shifts, change the amount of overtime, reduce the length of certain work shifts, temporarily suspend production, or engage third parties as subcontractors to perform certain operations. In addition, if the company's product can be stored for a long time, and especially if it is seasonal (as, for example, lawn mowers from ABC), it can create additional stock during periods of downturn in demand and sell them during periods of peak sales, i.e. at a time when its existing production capacity is not able to fully satisfy the demand for its goods.

Production capacity planning

If the firm plans to expand its production capacity in the future, in the section of the business plan we are describing, it should indicate what buildings and structures it will need to ensure a normal workflow. This activity is called capacity planning. The location of buildings and structures of any company, first of all, is determined by what factors most affect its overall production and distribution costs. These are factors such as the availability of qualified personnel, labor costs, the cost of electricity, the proximity of suppliers and consumers, etc. It should be noted that the importance and significance of these factors tend to vary depending on the business in which the company operates.

So, for example, many high-tech firms (which primarily need a large number of qualified technical specialists for normal functioning) are concentrated in large cities where there are universities and large research centers. On the other hand, many labour-intensive manufacturing companies locate their manufacturing facilities overseas, typically in countries with low level wages. For example, many software companies are actively setting up R&D centers in India, which Lately is famous for its specialists in this field, able to work with the same high productivity as their American and European counterparts, but at a much lower cost. American tire manufacturers have traditionally built their operations in northern Ohio, which allows them to operate in close proximity to their main customers, the giant automakers in Detroit. When it comes to service firms, consumer convenience is usually the deciding factor, with the result that most large shopping centers are located on major highways, and cafes and restaurants are located on busy city streets.

What factors will be the most important for the company ABV from our example? Clearly, it will need skilled technicians who can design and build lawnmowers. In this case, the location of consumers also plays a no less important role, which means that it is best for it to locate its enterprises near large agricultural centers. After choosing a region, the firm will need to select a specific location and land.

Production process planning

During the planning of the production process, the company determines how its product or service will be produced. When drawing up a production process plan for inclusion in its business plan, a firm must carefully analyze and evaluate its existing production methods and technologies and select those that will most effectively contribute to achieving its specific production goals. When choosing any production process, both in the production and in the service sector, there are various options. For example, when starting out in the restaurant business, a company may choose between a quick service business; a fast food restaurant with a limited menu; shipping company ready meals or in the service of motorists; she can opt for a deluxe restaurant offering gourmet cuisine, and so on. When planning its production process, a firm must answer a number of key questions that will determine its final choice. What technology will it use: standard or personalized? To what extent will its production process be automated? What is more important for the company: efficiency or flexibility production system?

So, for example, ABC may well choose such a common and effective way of organizing the production process as assembly line, especially if it does not plan to produce lawn mowers for special customer orders. But if a company is going to produce personalized products tailored to the specific wishes of consumers - which, admittedly, is becoming more and more common in both manufacturing and service industries - then it will, of course, need completely different technologies and production methods.

It should be noted that the planning of the production process is an extremely important and complex task. It is very difficult to determine the optimal combination of such indicators as the level of costs, quality, labor efficiency, etc., since there is a close relationship between them. This means that even a slight change in one component of the production process usually entails a number of changes in its other components. It is because of this complexity that the task of planning production processes, as a rule, is assigned to highly qualified specialists in the production sector, whose activities are directly controlled by the top management of the company.

Equipment placement planning

The last strategic decision when drawing up the production section of the business plan is to evaluate and select the optimal placement of equipment, tools and work centers. This procedure is called equipment placement planning. The goal here is to physically locate equipment, tools, work centers and locations in a way that maximizes the efficiency of the manufacturing process while also making it easy for staff—and often customers—to use them.

Planning for equipment placement begins with an assessment of the physical space required for this. At this stage, the company must determine which production areas, tool and equipment storage rooms, warehouses, workshops, employee break rooms, offices, etc. she will need to ensure the normal production process. Then, based on the production plans it already has, the company can evaluate the various options for configuring and placing equipment in terms of its production efficiency. In this case, a variety of methods and tools help firms to develop a solution - from elementary scaled plans and maps to complex computer programs that allow you to process huge volumes of variables and print different options for layouts of machines, tools and other equipment.

There are three main approaches to the physical organization of the production process. In the scheme of the production process, all elements (work centers, equipment, departments) are arranged in production areas based on the similarity of the functions they perform. The second way to place equipment and jobs is a linear (or in-line) layout of equipment placement. In this case, the components of the production process are distributed in space in accordance with the successive stages of the production of goods. The third approach is the layout, due to the fixed position of the product. It is used in cases where, due to its impressive size or for some other reason, the manufactured product must remain in one place, in a fixed position throughout the entire production process, and materials, tools, equipment and personnel are delivered to it. Hangars in aircraft construction or shipyards in shipbuilding can serve as examples of such a layout.

Drawing up a general (aggregate) plan

Having decided on strategic issues, the company proceeds to make tactical decisions and, above all, to the general, aggregate planning of its production activities and the production resources necessary for it. The result of this process is a document known as a general (aggregate) plan, which is drawn up for a certain period of time - usually for one year.

General (aggregate) planning allows the company to include in the business plan, as they say, the big picture. When drawing up a general (aggregate) plan, based on forecasts of future commercial demand and capacity utilization planning, the firm determines the levels of stocks, production rates and the number of personnel (per month) that it will need over the next year. It should be remembered that the main focus here is on the general concept of production, and not on specific details. Thus, in the course of aggregate planning, whole categories of goods are considered, and not their individual types. For example, in the general plan of a company specializing in the production of paints and varnishes, it will indicate how many liters of facade paint it will need to produce in a certain period, but it will not specify what colors and in what packaging it will be released. Such plans are especially important for large manufacturing enterprises that produce a wide range of goods. In a small firm with a single product (like ABC in our example), the overall plan will be more like a master schedule, except for a longer period (more on this in the next section). Thus, we can say that a correctly drawn up general (aggregate) plan reflects two main indicators of the company's activity: the optimal production rate and the total number of personnel that the company will need in each specific period within the framework of this plan.

Preparation of the main work schedule

The main work schedule is compiled on the basis of the general (aggregate) plan described above. We can say that this is a more detailed version of the aggregate plan. The main graph indicates the quantity and type of each type of product manufactured by the company; how, when and where they will be made the next day, next week, next month; it also includes information about the required labor force and the needs of the company in inventory (ie, the totality of all stocks of the enterprise, including stocks of raw materials and materials, components and semi-finished products, work in progress and finished goods).

First of all, the main work schedule is drawn up in order to disaggregate the general (aggregate) plan, i.e. break it down into separate, detailed operating plans for each product or service the company offers. Subsequently, all these separate plans are combined into a common master schedule.

Material requirements planning

Having determined what types of goods or services it will produce or provide, the company must analyze each of them and determine as accurately as possible its needs for raw materials, materials, components, etc. Material requirements planning is an advanced planning concept that includes modeling elements and the ability to create different scenarios for the development of events depending on the situation. Using this concept, a firm can accurately chart its future material requirements for the production of its final products, expressed in specific numbers. Thanks to the advent of the most sophisticated computer programs, modern managers have been able to analyze in detail all the specifications and specifications of their goods and services, as well as to accurately determine all materials, raw materials and components necessary for their production or provision. This critical information, combined with computerized inventory data, allows managers to determine how much of each part is in stock and therefore calculate how long the firm is in inventory. After the company has decided on the lead time (i.e., the time between the confirmation of the order for materials and the receipt of these materials) and the requirements for buffer (reserve) stocks (we will talk about them later), all these data are entered into the computer, and they become the basis for providing the firm with the material resources it needs. Thus, thanks to the material requirements planning system, the company has fairly reliable guarantees that all the materials it needs will be available and in the right quantity when they are needed in the production process.

The latest material requirements planning software is truly powerful in terms of production planning and scheduling. Thanks to it, managers, when making decisions about the allocation of resources of the company, can take into account various limiting and situational factors, such as equipment downtime, lack of labor resources, bottlenecks in the production process, shortage of important raw materials, etc.

Production planning tools

The following are the tools for making production plans, thanks to which the company can significantly increase the efficiency of this process and present in its business plan a really clear and complete plan for its future production activities.

If you observe the work of lower-level managers for several days, you can be sure that they are constantly discussing what work needs to be done by their subordinates, in what order, who exactly and what operations will be performed, and by what time this or that work should be completed. . All this activity is united under one common name - time-based (calendar) planning. Below, we will look at the three main tools that managers use in this process: the Gantt chart, the load distribution chart, and the PERT network analysis.

Gantt Chart

This tool - the Gantt chart - was created in the early 1900s by Henry Gantt, an associate of the famous theorist and practitioner in the field of scientific management Frederick Taylor. In fact, the Gantt chart is a histogram on which time periods are plotted horizontally, and all types of work activities for which, in fact, a schedule is drawn up vertically. The columns display the planned and actual results of the production process for a certain period of time. Thus, the Gantt chart clearly displays which production tasks should be performed and when, and allows you to compare the planned result with the actual performance of the work. This is a fairly simple, yet handy and useful tool that allows managers to determine fairly precisely what still needs to be done to complete a particular work order or project, and assess whether it is being done ahead of schedule, on schedule, or behind schedule. In the latter case, they should take steps to remedy the situation.

Load distribution scheme

The load distribution scheme is nothing more than a slightly modified Gantt chart. Unlike the Gantt chart, it does not indicate the types of work vertically, but departments or specific organizational resources. Thanks to this tool, firms can more effectively plan and control the use of the organization's production capacity.

PERT network analysis

However, it should be noted that the Gantt chart and the load distribution scheme are convenient if it is necessary to control the execution of a relatively small number of different types of work, and not interconnected. If a firm needs to plan a large-scale project - for example, aimed at a complete reorganization of one of its divisions, to reduce costs, or to develop a new type of product or service - then it will need to coordinate the actions of employees of various departments and services. Sometimes, when implementing such projects, hundreds and even thousands of types of work have to be coordinated, many of which must be carried out simultaneously, and others can only be started after the previous ones are completed. It is clear, for example, that during the construction of a building it is impossible to lay a roof without erecting walls. In such situations, managers use another tool known as PERT (Program Evaluation and Review Technique) network analysis.

Network analysis PERT is a diagram that shows the sequence of all the work that must be performed within the project, as well as the time and cost of each of them. This method was developed in the late 1950s to coordinate the construction of the Polaris submarine, a project that involved more than three thousand different contractors. Through PERT network analysis, the project manager can determine what exactly needs to be done within the project and which events will depend on each other, as well as identify potential project problems. In addition, with the help of PERT, he can easily compare how one or another alternative action can affect the schedule of work and the cost of the project. As a result, thanks to the PERT network analysis, the manager, if necessary, can redistribute the resources available to his company, thereby preventing the project from deviating from the planned schedule.

In order to build a PERT network graph, you need to know and understand four important concepts: events, activities, decline period, and critical path. Events are endpoints that separate major activities from each other and indicate the completion of one and the beginning of the next. Activities are the time or resources required to move from one event to another. A slump period is a period of time during which the execution of a particular type of work can be slowed down without slowing down the entire project. The critical path is the longest or most time-consuming sequence of events and activities in the PERT network. Any delay in the completion of events on the critical path will invariably delay the completion of the project as a whole. In other words, activities on the critical path have a zero decay period.

In order to draw up a PERT network diagram, a manager needs to identify all the major activities needed to complete the upcoming project, arrange them in order of completion, and estimate how much time it will take to complete each of them. This process can be represented in five stages.

1. Identify all significant activities to be performed to complete the project. During the execution of each of these types of work, certain events occur or certain results are achieved.

2. Determine the order of events that occurred in the previous stage.

3. Draw a diagram of the flow of work types from start to finish, identifying each type of work separately and its relationship with other types of work. Events in the diagram are indicated by circles, and activities by arrows; the result is a clear block diagram, which is called a PERT network (Fig. 2).

4. Estimate the time required to complete each type of work. This operation is performed through the use of the so-called weighted average. To obtain this indicator, an optimistic estimate of time, t 0 , is taken, i.e. an estimate of the duration of the performance of a particular type of work in ideal conditions; the most probable time estimate, t m ​​, i.e. an estimate of the duration of this type of work under normal conditions; and a pessimistic time estimate, t p , i. e. assessment of the duration of work in the worst possible conditions. As a result, we have the following formula to calculate the expected time t e:

5.

6. Using a network diagram that estimates the completion time for each type of work within the project, plan the start and end dates for each type of work and the project as a whole.

Rice. 2. PERT network diagram example

As we said above, a tool such as PERT network analysis is usually used to plan very complex projects consisting of hundreds or even thousands of events. Therefore, the calculations in this case are performed using computer technology using special software.

Production planning methods

Modern managers have to solve a very difficult task - to plan the activities of their organizations in a complex and extremely dynamic external environment. For its solution, well-established: project management and scenario-based planning. Both methods have one primary goal - to increase the flexibility of the company, without which it is impossible to succeed in today's ever-changing business world.

Project Management

Today, many manufacturing firms work on a project basis. A project is a series of interrelated activities that has clear start and end points. Projects vary in importance and scope; it could be like a startup project spaceship and the organization of a sporting event at the local level. Why are companies increasingly organizing and planning their activities around projects? The fact is that this approach is best suited to a dynamic external environment that requires modern organizations to have increased flexibility and the ability to quickly respond to any changes in the situation. Modern firms implement unusual and even truly unique production projects related to solving a huge number of complex interrelated tasks, the implementation of which requires specific skills and qualifications. All this absolutely does not fit into the standard production planning procedures that a company can use in its routine, daily activities. What are the features of project planning?

Project planning process

During a typical project, work is carried out by a dedicated project team whose members are assigned to work on the project on a temporary basis. All of them report to the project manager, who coordinates their work in cooperation with other departments and divisions. However, since any project is a temporary event, the project team exists only until such time as it completes its tasks. The group is then disbanded, and its members are transferred to work on other projects, or they return to the departments where they work full-time, or leave the company.

The planning process of any project, including production, includes a number of stages. It starts with a clear definition of the goals of the project. This stage is mandatory, because the manager and team members must clearly know what they need to achieve by the time the project is completed. Then it is necessary to determine all types of work to be performed within the framework of the project, and the resources required for this. In other words, at this stage it is necessary to answer the following question: what labor and material costs will be required to implement this project? This stage is often associated with certain difficulties and requires considerable time, especially if the project is fundamentally new or even unique, i.e. when the company has no experience in implementing projects of this type.

After determining the types of work, it is necessary to determine the sequence of their implementation and the relationship between them. What needs to be done first? What jobs can be done at the same time? In this case, the production project planner can use any of the production planning tools described earlier: create a Gantt chart, a workload distribution chart, or a PERT network diagram.

Then a project implementation schedule should be drawn up. The first step is to preliminarily estimate the deadline for each work, and on the basis of this estimate, a general project schedule is drawn up and the exact date of its completion is determined. After that, the project schedule is compared with the previously set goals and the necessary changes and adjustments are made. If it turns out that the project timeline is too long—which is not in line with the company's goals for the project—the manager can allocate additional resources to the most important activities to speed up the timeline for the entire project.

With the advent of many kinds of computer programs running on the Internet, the procedure for planning and managing production projects has been greatly simplified. It should also be noted that often suppliers of the company and even its consumers take an active part in this activity.

Scenario planning

A scenario is a forecast of the probable future development of events, which is characterized by a certain sequence of these events. In this case, it is estimated how this or that development of events will affect the environment in which the company operates, the company itself, the actions of its competitors, etc. Different assumptions can lead to different conclusions. The purpose of such an analysis is not to try to predict the future, but to clarify the situation as much as possible and make it as definite as possible, “losing” possible scenarios for the development of events, taking into account different initial conditions. Even the scripting process itself forces company leaders to rethink and better understand the nature of the business environment, because in the course of this activity they consider it from a point of view that they might never have.

Although scenario planning is a very useful way of predicting future events (which can be predicted in principle), it is clear that it is very difficult to predict random, arbitrary events. For example, hardly anyone could have predicted such a rapid spread and incredible popularity of the Internet in recent decades. Similar events will undoubtedly occur in the future. And although it is extremely difficult to predict them and correctly respond to them, managers need to strive to somehow protect their organizations from their consequences. This goal is served by scenario planning, including in the manufacturing sector.

Production control

An important element of the production plan in any business plan is a description of how the firm intends to exercise control over its production system, in particular over its elements such as costs, purchases, Maintenance and quality.

Cost control

It is believed that cost control is often treated by American managers as a kind of corporate "crusade" that is undertaken and conducted from time to time under the leadership of the firm's accounting department. It is the accountants who set the cost per unit of output, and managers must find an explanation for any deviation. Have the company's costs increased? Perhaps the labor force is not being used effectively enough? Perhaps, in order to reduce the amount of marriage and waste, it is necessary to improve the skills of workers? However, most specialists are now convinced that cost control should play a major role already at the stage of developing and planning the organization's production system, and that all managers of the company, without exception, should constantly engage in this activity.

Currently, many organizations are actively using the cost control approach based on the so-called cost centers. These are responsibility centers for which separate cost accounting is maintained, but which are not directly related to making a profit; the effectiveness of the activities of such units is determined based on the correspondence of actual costs to the planned or standard volume.

Since all costs must be controlled at some organizational level, the company needs to clearly define at what level certain costs are controlled, and require company managers to report on those costs that fall within their sphere of competence.

Procurement control

In order to effectively and efficiently produce certain goods and provide services, the company must be constantly provided with all the necessary resources, including materials. She needs to constantly monitor the discipline of deliveries, monitor the characteristics of goods, their quality, quantity, as well as prices offered by suppliers. Effective control over procurement not only ensures that all the resources the company needs in the right amount, but also their proper quality, as well as reliable long-term and mutually beneficial relationships with suppliers. All these points should be reflected in the production section of the business plan.

So what can a company do to make it easier and more efficient to control inputs? Firstly, to collect the most complete and accurate information about the dates and conditions of delivery. Secondly, to collect data on the quality of supplies and how they correspond to the company's production processes. And, thirdly, to obtain data on the prices of suppliers, in particular, on the correspondence of actual prices to the prices that were indicated by them when placing an order.

All of this information is used to rank and identify unreliable suppliers, allowing the firm to select the best partners in the future and monitor various trends. So, suppliers can be evaluated, for example, by the speed of their response to changes in demand, by the quality of service, the level of reliability and competitiveness. We will discuss supplier relationships in more detail in the next section.

Supplier control

Modern manufacturers strive to form strong partnerships with suppliers. Instead of dealing with dozens of sellers who will certainly compete with each other for a customer, manufacturers today often choose two or three suppliers and establish close relationships with them, ultimately increasing both the quality of the products supplied and the effectiveness of this cooperation.

Some firms send their design engineers and other specialists to their suppliers to solve all sorts of technical problems; others regularly dispatch teams of inspectors to supplier sites to evaluate various aspects of their operations, including supply methods, manufacturing processes, statistical controls that suppliers use to identify defects and their causes, and so on. In other words, today companies in all countries are doing what they have traditionally always done in Japan - they seek to establish long-term relationships with their suppliers. Suppliers partnering with a manufacturing company are able to provide higher quality inputs and reduce reject rates and costs. If there are any problems with suppliers, open and direct communication channels allow them to be resolved quickly and efficiently.

Inventory control

In order to effectively and efficiently achieve its goals, any company must control the replenishment of its inventory. For this, a reorder system is used upon reaching certain level stock.

This type of reordering system is used to minimize the ongoing cost of inventory and to provide a good level of customer service (because it reduces the chance that the right item will be out of stock at some point).

Using various statistical procedures, companies typically set the reorder point at a level that guarantees sufficient inventory to last between the reorder and fulfillment. At the same time, they usually retain some additional "safety net" stock, which allows them to avoid the complete depletion of the stock in unforeseen circumstances. This so-called "buffer" or reserve provides the company with reliable protection if there is a greater than usual demand for a product or material between the reorder and its fulfillment, or if replenishment of the stock is delayed for unforeseen reasons.

One of the simplest yet very effective ways to use the reorder system when a certain stock level is reached is to store traceable inventory in two different containers. At the same time, goods or materials are taken from one container until it is empty. At this moment, a reorder is made, and before it is completed, the products are taken from the second container. If the company has correctly identified the demand, then the reordered goods will arrive before the second container is empty, and there will be no delay.

The second modern and already very common method of reordering upon reaching a certain level of stock is based on computer control. In this case, all sales are automatically recorded by a central computer that is programmed to initiate a new order procedure when stock reaches a certain critical level. Currently, many retail stores are actively using such systems. Another fairly common system is the reorder system after a certain time interval. In this case, inventory control is carried out solely on the basis of a well-defined time factor.

Maintenance control

The production section of the business plan should also indicate how the firm will monitor the effectiveness of maintenance. In order to provide consumers with goods or services quickly and efficiently, a company must create a production system that guarantees the most efficient use of equipment and its minimum downtime. Therefore, managers, among other things, must constantly monitor the quality of maintenance. The significance and importance of this activity depends to a large extent on the production technologies used by the company. So, for example, even a minor glitch in a standard assembly line can bring down hundreds of workers.

There are three main types of maintenance in production organizations. Preventive maintenance is carried out before the accident. Restorative repair requires a complete or partial replacement of the mechanism or its repair on the spot immediately after the breakdown. Conditional repairs are overhaul or replacement of parts based on the results of an earlier technical inspection.

It should be noted that the need for maintenance control should be taken into account already at the design stage of the equipment. So, if a failure or downtime of equipment leads to serious problems in the production system or costs the company too much, then it can increase the reliability of mechanisms, machine tools and other tools by adding additional characteristics to the equipment design. In computer systems, for example, redundant, redundant subsystems are often introduced for this purpose. In addition, equipment may be designed from the outset to make future maintenance easier and cheaper. It should be borne in mind that the fewer components are included in the equipment, the less breakdowns and malfunctions occur. In addition, it is advisable to place parts that often fail in an easily accessible place or even mount them in separate units that can be quickly removed and replaced in the event of a breakdown.

Quality control

Quality control is a comprehensive, customer-focused program aimed at continually improving the quality of a company's manufacturing processes and the products or services it provides. The production section of the business plan should indicate how the firm will implement quality control.

This activity involves constantly monitoring the quality of products so that they consistently meet the established standard. Quality control must be performed several times, starting with the initial entry of inputs into the firm's production system. And this activity should continue throughout the entire production process and end with the control of finished goods or services at the output of the production system. This procedure also provides for quality assessment at intermediate stages of the transformation process; it is clear that the sooner you identify a marriage, or an inefficient, or an extra element of the production process, the lower your costs for correcting the situation will be.

Before performing quality control, managers must ask themselves whether 100% of the goods (or services) produced should be tested, or whether samples can be dispensed with. The first test option is appropriate if the cost of permanent evaluation is very low, or if the consequences of statistical error are extremely serious (for example, if a company manufactures complex medical equipment). Statistical sampling is cheaper and sometimes the only quality control option that makes economic sense.

Selective control upon acceptance consists in the evaluation of materials or goods purchased or manufactured by the company; it is a form of proactive or feedback control. In this case, a certain sample is taken, after which the decision on whether to accept or reject the entire lot is made based on the results of the analysis of this sample, based on a risk assessment.

Process control is a procedure in which sampling is carried out in the process of converting inputs into goods or services, thereby determining whether the production process itself has gone out of control. With this type of control, statistical tests are often used, with the help of which, at different stages of the production process, it is determined how much the deviations have fallen outside the acceptable level of quality. Since no production process can be considered perfect and some minor deviations are simply inevitable, such tests allow the company to identify serious problems in time, i.e. quality issues that companies need to address immediately.

Production control tools

It is obvious that the success of any organization is largely due to its ability to efficiently and effectively produce goods or provide services. This ability can be assessed using a variety of methods. production control.

Production control, as a rule, consists in monitoring the production activities of an organization or a separate unit in order to ensure its compliance with a previously drawn up schedule. Production control is used to determine the ability of suppliers to provide the appropriate quality and quantity of supplies at the lowest cost, as well as to monitor the quality of manufactured products to ensure that they meet established standards and to check the condition of production equipment. We've already discussed the basic aspects of manufacturing operations control, but the two most important manufacturing control tools—the TQM control chart and the economic order quantity model—deserve a closer look.

TQM Control Charts

It should be remembered that effective quality control, which we talked about above, is not only aimed at producing quality products or providing quality services. To ensure the high quality of both the products themselves and the processes by which they are produced, companies must control all aspects of their production system. Modern firms accomplish this task with a tool known as the TQM control chart.

The TQM control chart is an effective production control tool. Essentially, it is a graph that indicates the statistically determined upper and lower control limits and displays the results of measurements over reporting period. Control charts visually show whether the production process has gone beyond the pre-set control limits for it. As long as the results of checks at different stages of the production process are within a certain acceptable range, the system is considered to be under control (Fig. 3). If the measurement results are outside the established limits, then the deviations are considered unacceptable. Continuous quality improvement efforts should narrow the range between the upper and lower control limits over time as they eliminate the most common causes of deviations.

Rice. 3. Example of a control chart

When drawing up such a schedule, it is necessary first of all to take into account that in each production process there can be two sources of deviations. The first of these is unpredictability, due to which corresponding deviations can occur. Such deviations are possible in any process, and it is impossible to control them without fundamental changes in the process itself. Another source is non-random circumstances. Such deviations can be identified, and they are subject to control. It is clear that control charts are used to identify precisely such causes of deviations.

Control plots are based on some basic statistical concepts, including the well-known normal distribution (which states that deviations tend to be distributed in a bell-shaped curve) and standard deviation (a measure of variability in a group of numbers). When drawing up a control chart, the upper and lower limits are determined by the degree of deviation that is considered acceptable. According to the law of normal distribution, about 68% of the set of values ​​are in the range from +1 to -1 of the standard deviation indicator. (As the sample size increases, the sampling distribution tends to become more and more normal.) With 95% of the values ​​lying between +2 and -2 of the standard deviation. In the process of controlling manufacturing operations, limits are usually set in the range of three standard deviations; this means that 97.5% of the values ​​must lie within the control range (Fig. 4).

Rice. 4. Example of a control plot with a control range of three standard deviations

If the sample mean is outside the control range, i.e. is above its upper limit or below its lower limit, this means that the production process, apparently, is out of control and the company needs to do everything possible to identify the causes of the problem.

Model EOQ

We have already said that the control of the firm's inventory is the most important aspect of production control. Firms' investment in these reserves is usually significant; therefore, each organization strives to determine as precisely as possible how much to order new goods and materials and how often this should be done. The so-called EOQ model helps them in this.

The Economic Order Quantity (EOQ) model is designed to determine the quantity of items that should be ordered to meet projected demand and minimize the cost of holding and acquiring inventory.

Using the EOQ model, two types of costs are minimized - order fulfillment and operating costs. As the volume of orders increases, the average number of inventories increases, and the current costs of their maintenance grow accordingly. However, placing large orders means fewer orders, and therefore a reduction in the cost of fulfilling them. The lowest total costs and, accordingly, the most economical order size are observed at the bottom of the total cost curve. This point, at which order fulfillment costs and running costs are equal, is called the most economical order size point. To calculate this indicator, the following data is needed: the forecasted need for stocks for a certain future period (D); the cost of placing one order (OS); costs or purchase price (V) and current costs associated with storing and processing the entire volume inventory, in percent (CC). With all this data, you can use the standard EOQ formula:

However, it should be remembered that the use of the EOQ model assumes that the need and lead time of the order are precisely known and constant. Otherwise, it should not be used. So, for example, it is generally not applicable to determining the order volumes of parts used in the production process, since they, as a rule, come from the warehouse in large and uneven lots. But does this mean that the EOQ model is useless for manufacturing firms? Not at all. It can be used to determine the optimal cost and identify the need to change the size of the order lot. Although, it should be recognized that more complex models are used to determine the size of lots in conditions of intermittent needs and in other non-standard situations.

Modern aspects of production

When preparing the production section of a business plan, it is important to keep in mind the modern realities of the production sector. Today, companies face many of the most difficult tasks associated with increasing productivity. They should strive to maximize the benefits of new technologies, implement the described concept of TQM; certify their products by obtaining ISO 9000 certification; constantly reduce inventories; build partnerships with suppliers; achieve a competitive advantage through flexibility and quick response to changes in demand, etc. Therefore, the firm should reflect in its business plan how all these tasks will be performed.

Technologies

Ever-increasing competition in most markets is forcing manufacturers to supply consumers with ever higher quality products at ever lower prices, while significantly reducing their time to market. Two factors contribute to accelerating the process of developing new types of products: the company's focus on shortening the development cycle and the effectiveness of investments in new technologies.

One of the most effective tools With the help of which modern manufacturers reduce the time to bring new products and services to the market, is the integrated automation of production (Computer Integrated Manufacturing - CIM). CIM is the result of combining a company's strategic business plan and production plan with computer software. It is based on computer-aided design (CAD) and computer-aided manufacturing (CAM) technologies. As a result of the emergence and wide distribution of all kinds of automation tools, the old way of developing products is hopelessly outdated. With the help of computer technology, which allows visual display of graphic objects, design engineers design new products much faster and more efficiently than before. Automated production has been made possible by the use of computers in the course of managing the production process. So, numerically controlled machines can be programmed to produce new models in just a matter of seconds.

According to experts, further improvement of CIM technology will ensure the continuity of the entire production cycle. If each stage, from placing an order for raw materials to shipping finished products, can be displayed in the form of numerical indicators and processed on a computer, companies will be able to react very quickly to any changes in the market. They can make hundreds of changes to a project in a matter of hours, quickly scale to a wide range of product variations, and produce very small batches. An organization that uses integrated manufacturing automation will not have to stop the assembly line and spend valuable time replacing press dies or other equipment to produce a new standard or non-standard product. One change in the computer program, which takes a few seconds, and the production process is completely rebuilt.

The most important condition for the efficient operation of modern companies is the constant updating of technology, with the help of which the input stream of raw materials is converted into a stream of finished products. Major technological changes usually involve the automation of production, which we discussed above, as well as the introduction of new equipment, tools or work methods and computerization.

However, by all appearances, the most significant technological change in recent years has been universal computerization. Most organizations today have developed sophisticated information systems. For example, many retail chains use scanners connected to computers, with which you can instantly get full information about the product you are interested in (its price, code, etc.). And of course, today you will not find a single office that does not use computer technology.

Implementation of TQM

At present, the TQM philosophy has already been implemented by many companies. The idea of ​​total quality management covers not only large, but also small firms and enterprises. TQM (total quality management) is a concept that involves the participation of all company employees in improving the quality of products and services, optimizing production processes and management, etc.

Unfortunately, it must be admitted that not all efforts aimed at implementing the concepts of TQM have been successful. Research in this area does not confirm that firms that have implemented TQM consistently perform better than firms that have not. There are a number of factors that can significantly reduce the effectiveness of TQM. In particular, the researchers found that the success of applying some of the core concepts of TQM—for example, the use of teams, benchmarking, additional training, and employee empowerment—is highly dependent on the current performance of the company.

From a technological perspective, the TQM concept focuses on the development of flexible processes that are designed to support continuous quality improvement. The fact is that employees who have adopted the TQM philosophy are constantly looking for what can be improved or corrected, so work processes should easily adapt to constant changes. In this regard, for the successful implementation of the TQM program, the company must constantly improve the skills of its staff. It needs to provide its employees with the opportunity to acquire and develop skills in areas such as problem solving, decision making, negotiation, statistical analysis, and teamwork. Employees of these companies must be able to analyze and interpret data, and firms should provide their work teams with all the necessary information about the quality of their products, in particular, damage rates, rejects, waste, etc. They must also inform staff about the opinions of consumers, provide them with the information necessary for the preparation of control schedules and work with them. And, of course, the structure of the organization must provide the work teams with sufficient authority to continuously improve manufacturing operations.

Reengineering

Reengineering is a term for a radical change in all or part of the company's work processes in order to increase productivity and improve financial performance. In the process of reengineering, the structure, technologies and personnel of the company undergo major changes, since in this case the methods of doing work in the organization are revised almost from scratch. During reengineering, managers constantly ask questions: “How else can this process be improved?” or “What is the best way to complete this work task faster and better?” etc.

Regardless of whether the need for change is due to fluctuating demand, changing economic conditions, or a change in the strategic direction of the organization, the person who decides to reengineer must first evaluate the effectiveness of the work of people and the quality of interaction between people within the organization. After a critical assessment of the work processes, the company begins to look for ways to improve productivity and product quality: start implementing a TQM program, change the organizational culture or implement other changes. However, in any case, the essence of reengineering is that the company completely abandons the old ways of working and decides to radically change its workflow.

You may be wondering: Isn't the term "reengineering" synonymous with TQM? In no case! Although both of these processes are aimed at introducing changes in the organization, their goals and means are completely different. The TQM program is based on the idea of ​​continuous, incremental change. This means continual improvement in the performance of an organization that is generally doing well. In addition, TQM is implemented from the bottom up, and the main emphasis is on the participation of employees in decision-making regarding the planning and implementation of this program. And reengineering is a radical change in the way an organization operates. This process involves fundamental changes and a complete restructuring of working methods. Reengineering activities are initiated by the top management of the firm, but when this process is completed, almost all employees are usually given greater authority in their workplaces.

A characteristic feature of reengineering is that you have to start from scratch and rethink and rebuild the entire scheme of work, i.e. structure of all work processes. Traditional, well-known ways and methods are immediately excluded. In other words, the company completely abandons the gradual transformation of the production system, as the ways and methods by which the company will produce goods or provide services are radically changed. Completely new workflows and operations are being invented and implemented. In reengineering, what was before should by no means serve even Starting point, because reengineering is a radical, fundamental change in the very foundations of an organization. Despite the significant stress and increasing uncertainty of the staff, which usually accompany the process of reengineering, it is capable of producing excellent results.

ISO standards

In order to openly and clearly demonstrate their commitment to quality improvement, modern organizations are trying to achieve ISO certification. What is its essence? These are quality management standards that companies around the world are guided by. They cover literally everything: from the rules for drawing up a contract to the development of products and their supply. ISO standards are set by the International Organization for Standardization and are used as an international benchmark for comparing firms operating in the global market. The fact that the company has a certificate indicates that it has developed and implemented an effective quality management system.

Quality certificates are now awarded to small sales and consulting companies, software firms, city utilities, and even some financial and educational institutions.

However, it should be remembered that although the certificate provides the company with a lot of advantages and significantly strengthens its competitive position, the main goal of the company should be the process of improving the quality of its products or services. In other words, obtaining a certificate should not be an end in itself; to achieve this, a company must create work processes and a production system that will enable all its employees to perform their work with consistently high quality.

Inventory reduction

As we have said, a very significant part of the assets of most companies is its inventories. Firms that manage to substantially reduce their inventory levels—i.e. raw materials, semi-finished products and finished goods in stock, can significantly reduce the cost of their storage and thus increase their productivity. How the firm intends to solve this problem should also be reflected in the production section of the business plan.

Modern companies take this problem very seriously. In recent years, managers in all countries have been actively looking for ways to improve the efficiency of inventory management. Thus, at the input stage, they seek to improve the informative link between internal production schedules and projected customer demand. Increasingly, marketing managers are required to have accurate and up-to-date information about future sales volumes, which is then combined with specific data about the company's production systems and as a result determines the optimal production volume that can satisfy existing demand. Production resource planning systems are the best fit for this function.

Today, companies around the world are actively experimenting with another technique that has been successfully used in Japan for a long time and is called the Just-In-Time (JIT) system. Under this system, goods and materials are delivered to the manufacturer at the exact moment they are needed in the production process, rather than stored in a warehouse. The ultimate goal of implementing a JIT system is to completely get rid of raw material warehouses through the most precise coordination of the production process and the supply process. If such a system works effectively, it provides the manufacturer with significant benefits: reduced inventory, reduced equipment setup time, accelerated product conversion cycles, reduced production time, freed up production space, and often even improved product quality. Of course, in order to achieve all this, it is necessary to find suppliers who will supply quality materials on time.

However, it should be borne in mind that not every manufacturer can use the JIT system. So, for its implementation, it is necessary that suppliers are located close to the enterprises of the buyer and supply materials without defects. This system also requires reliable transport links between suppliers and the manufacturer, efficient methods for receiving, processing and distributing materials, and careful planning of the production process. If all these conditions are met, JIT will help to significantly reduce the company's warehouse costs.

Outsourcing and other types of partnerships with suppliers

The manufacturing section of the business plan should also indicate how the company intends to work with suppliers and improve the efficiency of this process. As already mentioned, one of the most important areas in the manufacturing sector in recent years has been a steady trend towards the formation of partnerships between manufacturers and suppliers. It should be noted that, among other things, this often involves the transfer of work, when manufacturers, in an effort to reduce high labor costs, transfer the production process of some parts and components to their suppliers, who can manufacture them at a lower cost. This relationship is called outsourcing.

Today, alliances between manufacturers and suppliers have become much closer and stronger. Suppliers are increasingly involved in the manufacturing process of a product manufacturer. Many operations that used to be exclusively the responsibility of manufacturers are now performed by their main suppliers, i.e. there is a transfer of part of the work to third-party performers. At the same time, manufacturers increasingly play the role of "conductors" and limit themselves to only coordinating the activities of different suppliers. According to experts, the trend towards strong and close partnerships between suppliers and manufacturers will continue in the future, as the latter are constantly looking for new sources of competitive advantage in the global market, and one of these sources is close relationships with suppliers.

Flexibility as a competitive advantage

In today's rapidly changing business world, companies that are unable to quickly adapt to change are doomed to failure. Since this ability is provided by the flexibility of the manufacturing process, many organizations are actively developing and implementing flexible manufacturing systems.

Modern factories and factories often resemble scenes from a science fiction movie in which remote-controlled carts transport workpieces to computerized machining centers. Robots automatically change the position of workpieces, and the machine, manipulating hundreds of tools, turns the workpiece into a finished part. Every minute and a half, a finished product leaves the assembly line, somewhat different from the previous ones. There are no workers or conventional machines in the shop. No costly downtime required to change dies or tooling. One modern machine is capable of producing dozens and even hundreds of very different parts, making them in any programmed order.

A unique feature of agile manufacturing systems is the integration of computer-aided design, engineering and manufacturing processes, enabling factories to produce small, custom batches at prices previously only possible with mass production.

As a result of the use of flexible manufacturing systems, economies of scale are being replaced by economies of breadth. Organizations no longer need to produce thousands of identical products to keep their unit costs down. To move on to the release of a new product, they need not change the machines and equipment, but only make changes to the computer program.

Speed ​​as a competitive advantage

It is known that a company that is able to quickly develop and bring new products and services to the market provides itself with a significant competitive advantage. Consumers prefer a particular firm, not only because its products or services are cheaper, have an original design, or are of high quality, but often because they highly value the opportunity to get them as soon as possible. There are many examples of companies that have achieved significant success in reducing the time it takes to design and produce goods and services. To speed up the production process and increase the pressure on competitors, many organizations around the world are seeking to reduce bureaucratic restrictions and simplify their organizational structures; they create complex working groups, restructure the sales structure, use JIT methods, CIM systems, flexible manufacturing systems, etc. And all this needs to be reflected in the production plan, indicating what opportunities you have at your disposal to accelerate the cycle of bringing new products or services to the market.

Is business planning always carried out at the initiative of an entrepreneur or investor in connection with the opening of a new business? Not always. Often the practice of preparing a business plan is integrated into the general context of managing a diversified company in the context of implementing a development strategy. This is done in most cases special unit within the financial department, not the project office. The development of a production plan in the business plan of business units or the entire company is a universal area of ​​​​planning activity. Consider its expanded context.

Main aspects of the production program

It is necessary to look directly at the difference in approaches to business planning in the cases of an external business project and internal planning of the activities of business units. The goals for these situations are different. This is especially true for the production plan. In the first case, the emphasis is on demonstrating to the customer and investor the availability of the project with production resources: equipment, personnel, and material and technical resources. In the second case, the business owners and the general management of the company must be convinced that:

• the production program takes into account the required stocks of finished products and probable losses;
• capacities are used optimally, bottlenecks in them are embroidered;
• disproportions of internal production units are eliminated;
• cooperation between strategic business units (SBU) is effective;
• from the standpoint of marginal analysis and sales plan, a verified profitability of production is planned for each SEB.

Given the above, it should be remembered that the importance of such a section as a production plan when integrating business projects into the plans of a diversified company is higher than for a separate business. Under the strategic business unit, it is proposed to understand the direction of activity, which in the financial structure has the characteristics of the CFD "profit" or "marginal profit". SEB is the carrier of a single business product or a whole range of products. In an ideal situation, SEB, being part of the company, nevertheless has the characteristics of a legal entity - a subsidiary.

In any case, the production plan is based on the program for the sale of products and (or) services. And the first aspect of this section is the forecast of production volumes, taking into account the necessary stock of finished products and losses. The volume of production of works, services, goods is determined through a certain set of indicators, the formulas of which are given at the end of the section.

1. Volume of products sold at planned prices. This volume includes products shipped to consumers that meet the conditions of quality standards, specifications, manufacturing technology and pre-sale preparation.
2. Commodity and gross output of the company. Marketable products (TP) are understood not only as manufactured products for external and internal consumption, but also works, services of a capital and industrial nature, semi-finished products that can be considered as goods. Gross output, in addition to commodity output, also includes a change in work in progress.
3. Unfinished production. This type should be understood as incompletely manufactured products that are at different stages of the production cycle and are not accepted as commercial products.
4. Value added, taken into account in the production plan as gross output, but minus material costs.

Formulas for calculating the planned sales volumes, TP and VP

Auxiliary calculations of production volumes

As you know, the production of industrial products is the most difficult type of business to plan and organize. This is especially evident when the production is multi-stage in nature, requiring a larger number of security and support measures (rigging, tooling, etc.). Product innovation also has an impact on planning processes.

Let us imagine an example of a medium-sized production enterprise operating in the oil and gas engineering industry, however, having several main and supporting industries. Let's ask ourselves a question: what else should be taken into account when developing a program for the production of such a complex product as an element of a pipeline and corresponding communications? Although many products for oil and gas customers are made exclusively to order, for serial products, a certain stock of products in the warehouse should always be included in the business plan. In addition, defect-free production simply cannot be.

Under the total volume of production, therefore, a stock of finished products (FP) should be laid down for a prompt response to applications potential buyers and reserve for losses. The size of the planned GP for reserves must be normalized. The reserve ratio is calculated based on the available statistics, the adopted marketing policy, taking into account the conditions of a particular project, the state of the market and the industry. When rationing, seasonal factors and standards for replacing defective products are taken into account.

The formula for calculating the adjusted production volume for the stock of HP and losses

Let's simplify our example to three commodity items. The normative values ​​of stocks of GP are usually formed as a percentage of the planned level of sales of products. In the same way, the standard of expected losses is formed (for marriage and replacement of products under other warranty conditions). Below is a table of estimated values ​​for production volumes, taking into account stocks and losses.

Example of Calculating Adjusted Production for FP Stock and Waste

In addition to the specified volume of output, the production plan also includes detailed information on the needs for the raw material component of production, semi-finished products, and components. Based on the identified needs in the dynamics of the business plan, a work plan is built with suppliers to ensure the purchase of components for the production process.

In addition to the composition of circulating goods and materials, fuels and lubricants and services in the field of energy supply for production, production capacities and production areas play an important role. When planning, the optimization of the main parameters of the use of capacities and areas is carried out, which is based on the normative values ​​of a number of key indicators. The formulas for such planning and optimization are given below.

Calculation formulas for preparing "bottlenecks" in planning for "expansion"
(click to enlarge)

Plan of production and capacity in interconnection

One of the elements of competent planning of the production program is the analysis and accounting in the calculation of the production capacity of the main and auxiliary divisions of the enterprise (workshops and industries). Only after that it is possible to design relationships with suppliers and achieve rhythm in the incoming flows of raw materials, components and equipment. In addition, in addition to issues of interaction with external partners, the implementation of the program can be severely limited by on-farm cooperation if the composition of capacities along the value added chain turns out to be unbalanced.

This point is important even if the enterprise has only a few production sites. And if the enterprise has 100 or more workshops (such giants operate in the country, for example, in metallurgy, in the automotive industry), this aspect of planning is critical. Of course, sales are the driving force behind business. Without them, production is powerless to lead the company to success, but the implementation plan is tied to the production potential of the enterprise, the criterion of which is its capacity.

In turn, the power parameter is based on three main indicators.

1. Static indicator of production capacity at the end of the billing period of the project (year), calculated by the balance method.
2. Average annual production capacity.
3. The coefficient of utilization of the production capacity of the enterprise.

Formulas for production capacity parameters when planning a production plan

Production units involved in the main business processes or auxiliary (providing) have a different degree of interfacing. For example, facilities, units and equipment of auxiliary workshops may not directly participate in the main value chain. Such productions (pilot, specialized areas, laboratories) are not involved in the calculation of production capacities for the purposes of determining bandwidth production. To calculate this production planning criterion, the contingency coefficient formula is used, which is presented to your attention below.

The formula for the contingency factor when calculating production capacity

There is another important question that usually always arises in its production aspect. It's a matter of changing equipment. Here are hidden significant opportunities for increasing sales, based on the formed or formed market demand for products. At the same time, the more unique and expensive equipment is used, the higher the probability of using two-shift and even three-shift operation.

Novice Economists investment activity often make the same mistake. An idealized version is taken into consideration, which does not take into account: the need for GP reserves, its probable losses. Moreover, the loss of working time due to the development of equipment and technology is not taken into account. A new workforce, even trained and certified, makes mistakes at first, marriage occurs, newly installed equipment fails. All these circumstances must be included in the production plan. The adjustment of power parameters is facilitated by such an indicator as the shift ratio of equipment for an enterprise with a continuous production process.

Shift Factor Formula for Calculating Production Capacity

Our story about the production plan of the business plan of the level of the operating enterprise is coming to an end. The extensive question of marginal analysis localized to each product and planning activities regarding the search for the optimum profitability for the purposes of the project's success remained outside of attention. This is done by a whole sub-branch of financial management - profit and working capital management. I express confidence that we will cover this block of issues in a separate article.

Touching upon the issues of business planning, I cannot get rid of the feeling of déjà vu, because I remember Soviet technical and industrial financial plans. That's where the school of management was, not inferior to the most modern methods of business planning. It only lacked a market part, but the level of integration, multi-factor consideration of the nuances of technology, organization and economy was one of the best in the world, although the calculations were performed using today's archaic EU-class computers. The Russian school of business planning from the position of the best domestic traditions needs to be revived, which will inevitably happen in the next decade. For some reason, there is no doubt about it.

Regardless of the type of future business activity, the foundation of a business plan is its production section. It can be less or more developed, which is determined by knowledge and practical experience compiler.

For example, during the liquidation of the former company, all positive developments are taken from there, which are subsequently adjusted taking into account the mistakes or oversights made. But most often this item has to start from scratch.

What should be included?

It is assumed that the industry of future economic activity is well known to the newly-minted businessman, otherwise at least one conscientious and faithful assistant will be required. If the enterprise is conceived alone, then one should begin with a comprehensive assessment of the prospects for the business for the next few years. As a result, a forecast of the demand for products or services in a given region is compiled and then analyzed.

If the result of the analysis is positive, the question of the prospects of the adopted technology should be considered - it should be at least 20-25% more perfect than its closest competitors. Special knowledge in this case weighs more than the services of a consulting firm: it is unlikely that the author of the business plan will immediately unfold the plan of the ideal enterprise to the slightest accuracy, most likely the consultants will limit themselves to general assessments of the degree of favorability of the business.

At the same time, it is characteristic that in almost all analytical notes the concept of a probabilistic assessment appears (“with a probability of 97% it can be assumed that ...”). You should always remember that the chance to get into the very 3% for which the analytical assessment did not work means not only wasted money, but also a delay in the business start.

So, your own knowledge, capabilities and experience are the surest conditions for a successful business plan.

The technology selected for implementation predetermines the need for premises for the installation of production equipment, mechanization, warehouse equipment, etc. In this matter, it is worth assessing both the location of production facilities and their composition.

The infrastructure of the future enterprise will also play an important role. Depending on the main technological processes, it will be necessary to have certain transport equipment, and not only trucks - many businessmen increase the prestige of their enterprises due to convenient and quick delivery of their company's personnel to the place of work.

How you can simulate and optimize the production section using a specialized program - see the following video:

Selection of the main technological processes

The key features of the choice are not only the above-mentioned 20-25% of equipment perfection, but also its availability and the possibility of using it in the specific conditions of the future enterprise. To do this, use the following sources of information:

• deployed equipment specifications, for which it is necessary to use information from the official websites of manufacturers, as well as objective results of using this device by consumers. If information from the sources of the first group should be considered more or less reliable, then individual consumers should be more cautious in assessing the usefulness: sometimes a positive “cheat” of reviews is used, which are not always fair on verification.
• Practical assessment of the work of the closest analogues at enterprises of the same profile located in neighboring regions. At the same time, excursions to nearby enterprises should be avoided: no one is happy with potential competitors, and therefore the actual advantages can be presented as disadvantages, and in the worst case, access can be generally closed for various reasons.

In the process of making a decision on equipment, they are guided by the following operational advantages:

• Durability(warranty hours per failure): if this parameter is not among the basic characteristics, this may be a serious argument against purchasing this equipment.
• Availability of a network of service centers in the region: if it is, then the issues of installation supervision of the purchased equipment, as well as its routine maintenance during the warranty period, are automatically resolved.
• The degree of equipment versatility and its ability to perform a wide range of operations. In the conditions of work of a small enterprise, the serial production of products or the provision of services is often quite low. So that the equipment does not stand idle, it makes sense to use it for another purpose. Therefore, attention is often paid to the versatility of the unit circuit and to equipping it with additional tools or equipment.
• The presence in the design of nodes produced by subcontractors- their routine maintenance can be difficult if there is no dealer center of this enterprise in the region. Modern technical means imply high-quality maintenance of the units, without which the risk of forced downtime turns into significant losses and loss of prestige of the newly created enterprise.

Do not forget that the production section should also include the calculation of the need for the quantity and standard sizes of the necessary office equipment.

Production facilities: buildings and premises

Having determined the overall dimensions of the equipment, its technological layout is carried out in accordance with the course of the main technological process. When developing a planning solution, the following are taken into account:

• Direct-flow production, which excludes loops and returns of the semi-finished product.
• Compliance with industrial, hygienic and fire safety standards.
• Availability of optimal areas for warehouses: raw materials, interoperational and finished products.
• Placement of all auxiliary zones - ventilation units, air conditioners, power devices for lighting and heating the building, water supply and sewerage systems.

Equipment layout plan should be developed for the prospect of a possible expansion of production(usually the coefficient of reserve areas is taken within 10%).

An appropriate room is being searched for a ready-made planning solution. It is better if it already has built-in energy and sewerage systems. However, a number of energy carriers (for example, compressed air, hot water- both for heating and for technological needs) you still have to bring it yourself.

Often, abandoned or rented large garages or vacant production facilities of converted factories are suitable options. Sometimes it is beneficial to conclude a lease agreement with the previous owners, which saves the new owner from many expenses. With the development of one's own business, the purchase of such premises is provided for by the leasing system itself.

During the selection process, pay attention to the following:

• Availability of natural light.
• The height of the room, which should provide for a technologically competent arrangement of equipment.
• Insulation of walls and roof, normal waterproofing, absence of cracks and deformations of the building.
• A reliable foundation that must withstand technological and vibration loads.
• The possibility of convenient travel and passage to production sites, as well as the export of finished products to warehouses or direct consumers.
• The degree of technological flexibility of the building, i.e. the possibility of its relatively inexpensive redevelopment in case of changes in the main technological process.

Vehicles

The production plan includes the best choice of both internal and external transport. In the first case, we mean various types of loaders, manipulators, conveyors operating on the territory of the enterprise itself. External transport means that which is used for the delivery of raw materials and materials, as well as for the export of finished products.

Internal transport is selected simultaneously when choosing the main technological processes and equipment.

For example, if automatic lines are to be purchased, then they usually include specialized vehicles. It is much worse to “save” on this and pick up transport separately: according to its production characteristics, it may not be suitable, as a result of which the productivity of the main equipment will decrease, and more personnel will be required.

The situation is different with external transport. In many cases, there is no need to purchase it: it is enough to rent it for a long time, or even conclude an appropriate service agreement with a transport company. This solves several problems at the same time:

• No need for a garage.
• The need for personnel who must deal with the daily qualified maintenance of this equipment is reduced.
• The need for energy carriers, fuel, consumables and spare parts will decrease.
• The cost of equipping production with fire-fighting and security equipment systems will decrease.

Production personnel

Since an increase in excess of the required staff negatively affects the cost of production, preference should be given to employees with experience in combining professions.

The staffing table is compiled for the already known composition of equipment and features of technological processes. The main categories of personnel are:

• Production staff, including also operators of internal transport.
• Office and management staff.
• Employees of supply and sales services (it is also permissible to include employees of warehouses here).
• Security service (although here it is more expedient to conclude an agreement with a specialized company).