Optimizing Your Business: Production, Operations, and Strategy
Chapter 2: Production Process
2.1 Detailed Definition of the Product or Service
List, through bullets, all the products or services the company will offer, indicating as much detail as possible.
2.2 Production Process
2.2.1 Raw Materials and Suppliers
List all the components or supplies that you will require for the development of your product or service. It is important to identify the closest suppliers or those that offer better quality in the inputs.
Name | Address | Material Supplies | Amount (Units) | Cost (Per Unit) | Purchase Frequency |
2.2.2 Machinery and Equipment
- List the necessary work equipment for the production of the service or product.
- It is an exercise similar to the previous one, although here it is important to consider that this equipment is acquired once and replaced as depreciated.
Equipment and Machinery Supplies List
Name, Address, Phone | Name of Equipment | Units | Cost per Unit | Technical Features | Photo | |
2.2.3 Definition of Operating Costs
- Define all costs related to the operation of the business, without considering salaries.
- Include all payments for services such as electricity, water, gas, telephone, office lease, etc.
Service | Approximate Cost |
Water | $238.81-$665.42 |
Gas | $2580.00 |
- Indicate the location that your company will have, including the exact address and if the place will be rented, or if you are the owner, or if you will buy the property.
Blvd Harold R. Pape 101, Guadalupe, 25750 Monclova, Coah.
- Include remodeling costs in case you have to make some adaptations.
- Design a layout with the distribution of the different areas of the business departments or work areas.
2.4 Quality System
Design strategies to ensure the quality of the products and services offered by the company.
Think about customer service: how will you know that your product or service meets customer expectations?
Quality is a very important element for the competitiveness and success of any business.
- Define your own delivery procedure for your product or service.
- There will be people.
- Focus on your customer needs.
3. Description of the Company
The section of the business plan contains the following:
3.1 Mission of the Company
One of the essential points in planning a company is the establishment of the mission statement, which can be defined as the reason why the company exists.
Some elements to evaluate the mission of a company are:
- Essential purpose of the organization.
- Product or service that you offer.
- Who is the product or service for?
- What are the means to achieve the goals?
3.2 Vision of the Company
- The vision of a company focuses on the future; describe the situation in the near future, what to expect of the company.
- Some elements to evaluate the vision of a company are:
- Clear and possible goals.
- Measurable time.
- Time flexibility.
- Measurable resources.
- Expected image of the company in the future.
3.3 SWOT Analysis
Strengths: These are the elements that, internally, help the company succeed, that is, the main business forces such as experience, knowledge, business idea, etc.
Weaknesses: Describe the internal elements that your business needs to be successful: lack of capital, lack of experience, availability of time or resources, etc.
External Elements
Opportunities: Describe the elements that you consider important to take advantage of and that currently exist in the market you will serve. These elements must be external to your business: significant demand growth, unattended market segment, etc.
Threats: Describe those elements that externally impact your business, in the present or future demand: regulations, permits, competition, variability of demand, reforms in legislation.