Business plan for the production of knitwear
6. Drawing up a production plan
You need to start the production plan with a brief explanation of where the goods will be manufactured - at an existing or newly created enterprise. Then you can emphasize the profitability of the location of the enterprise (if this fact takes place) in relation to sales markets, suppliers, labor, services, etc.
The next step in writing this section might be to describe the manufacturing process. To do this, indicate the type of production (single, batch, mass), the method of its organization, the structure of the production cycle, a diagram of the technological process can be given, which clearly shows where and where all types of raw materials and components will come from, in which shops and how they will be processed into products. The production plan provides an assessment of the existing technology in the following areas: compliance of the technology with modern requirements, the level of automation of the production process, ensuring the flexibility of the process, the possibility of a rapid increase or decrease in production.
In this section, the main directions for improving the development of technology, provided by the business plan, are noted.
If the technology of production of a product changes in the future period, then the business plan notes how the proposed changes in technology will affect the quality of products, the level of production costs, and the price of the product.
If the production process provides for the execution of part of the operations by subcontractors, this is also specially noted in the business plan. The expediency of choosing specific partners is substantiated from the point of view of the minimum costs for production, transportation, incoming control of units and semi-finished products supplied by the subcontractor. When choosing partners, their reliability, production, financial, human resources, prestige are evaluated.
Particularly in the business plan, the product quality management system operating at the enterprise is considered. It is reported at what stages and by what methods the quality control will be carried out, what standards will be followed by the manufacturers of the products.
The production plan may also include information about the environmental protection system, indicate the measures taken for waste disposal and the corresponding costs.
The production program (forecast of production volumes and product sales), given in the business plan, is drawn up on the basis of the results of marketing research of the sales market with their subsequent comparison with the production capabilities of the enterprise.
The production program determines the required volume of production in the planning period, corresponding to the nomenclature, assortment and quality of the requirements of the sales plan. It determines the tasks for the commissioning of new production facilities, the need for material resources, the number of personnel, and transport.
Enterprises form a production program based on government orders, consumer orders identified in the process of studying the consumer demand market.
The main indicators of the production program are:
The article, using the example of a business plan for knitwear, describes the moments of organizing entrepreneurship in this area. The market for this type of product is now saturated with goods from China and Turkey, but the demand for them is constant, which indicates the attractiveness of the industry in terms of consumer demand and profitability.
If you decide to start your own business, start with simple things, narrow down your initial product range, and have your knitwear fabrication in-house to reduce dependence on supplier prices. By following these simple rules and increasing the volume of output, you can capture your market share and gradually break out into its leaders.
Appointment of a business plan for knitwear production
Any factory enterprise is a large-scale business, the presence of multifaceted tasks and a bunch of problems that arise from nowhere that require a prompt solution. Before starting a knitting factory, everything must be weighed, analyzed and calculated. Entering an established market requires innovative solutions based on a thorough study of its current state. The business system is complex, and to facilitate its perception, all the necessary data is drawn up in the form of a business plan for knitwear.
Its structure makes it possible to impose the methodological basis of strategic planning on the realities of the project. As a result, we will receive a full-fledged action plan, including all stages of preparation and development of a new business. Also, this document will justify the need to attract external investment and contains economic and financial calculations required by potential investors.
Example of a business plan for the production of knitwear
Table of Contents
The project provides for the opening of a knitwear factory with a universal technological line that allows you to quickly rebuild to new types of products. For this, it is necessary, first of all, to resolve the issues of supplying the factory with raw materials that will be produced here. Sales are planned on the retail market, through a network of branded departments and large trading enterprises.
The organization of the enterprise will require modern equipment, experienced employees and cash investments, which is reflected in the main stages described in the business plan for knitwear production:
- fabric production;
- assortment definition and finished goods release;
- finished goods realization.
Financial model of window production
Brief Investment Memorandum
Plastic windows made of rigid polyvinyl chloride (PVC) first appeared in the United States in the last century, and in our country they became popular only in the 90s. The advantage of plastic windows is obvious: they close tightly, have high noise insulation and keep heat longer. In addition, plastic windows do not need to be coated with paints and other protective compounds, you can immediately order frames of any of several dozen colors. It is easier to make arched windows and windows of complex configuration from PVC.
Also, these windows are easy to maintain, since the inner planes of the glass unit, due to their complete insulation, do not need to be washed. Reinforced surfaces of frames are not afraid of atmospheric influences, small particles of dust and sand that destroy the paintwork of ordinary windows.
Today, there is a tendency for a gradual growth in the introduction of PVC windows, this is due to the fact that for plastic structures the price / quality ratio is optimal, and such useful properties as durability, windproofness, noise protection and ease of use attract more and more buyers. In addition, the building materials market is on the rise, which indicates that the population is changing housing, making repairs and is ready to purchase related goods.
The initial investment is 2,308,000 rubles.
The break-even point is reached in the third month of operation.
Payback period: 11 months.
Average net profit: 295,000 rubles.
Description of business, product or service
The production process for the production of plastic windows includes the following stages:
- Cutting a profile;
- Milling drainage channels;
- Fixing a metal profile in a plastic one;
- Milling holes for lock of the main lock and under the handle;
- Milling the ends of the impost;
- Welding PVC windows;
- Cleaning the corners of metal-plastic products - removing the weld overlap;
- Installation of sealing rubber;
- Operations for assembling the window structure include the installation of imposts and fittings;
- Cutting glazing beads.
Among all sections of the business plan:
- Cover Page
- Confidentiality Memorandum
- Executive Summary
- Investment Plan
- Marketing plan
- Production plan
- Organizational plan
- Financial plan
- Risk analysis
The production plan describes the production process. Of course, if you are not opening a factory or factory, but a clothing store, this description will be less detailed and will exclude items on production, but this does not mean that you can do without this section in your business plan.
Structure of the production section of the business plan
In fact, the purpose of this chapter is to familiarize the investor with the production process, the list of required equipment and the number of personnel. In other words, the production plan must show that you are able to organize the production of the required volume of high quality goods, as well as to establish the implementation process and prepare the necessary areas within the planned time frame.
If we are talking about an enterprise that is focused on the production of a certain product, the first thing you need to do is to clarify whether you are the owner of an already operating production facility, or are just planning to open it.
Often, the key reference point for writing this section is the sales plan. Therefore, you need to describe in detail exactly how you plan to manufacture products and consider in detail all the stages of creating your product or service. At the same time, each described position should include approximate terms, as well as the costs that will be required to organize it.
Description of the production process
If you are planning to open a production facility, you definitely need to describe all the stages and features of the technological process, starting with the purchase of consumables and necessary raw materials, and ending with the sale of finished goods (even if you plan to open a store, then a shortened version of the process from the delivery of the product to its placement in the store and sale is simply necessary).
Think about how you can modify this process. Describe your considerations and any activities and costs involved. Particular attention should be paid to the structure and composition of production facilities. If you are planning to open a factory or, for example, a plant, this information should be stated in a special appendix attached to the plan.
Description of raw materials and their suppliers
Supply issues should be a separate item. Describe what raw materials and materials are required for production, how exactly you plan to transport and store them. Moreover, you should also indicate exactly how you are going to carry out quality control and monitor the timeliness of deliveries, whether there are alternative suppliers of raw materials in case of problems with the existing ones.
Industrial premises and land
The pasta market has always been popular, both in terms of the presence of producers and in terms of consumer demand. To understand the laws of the development of this business, in the article we will consider an example of a business plan for the production of pasta. The product is relatively inexpensive, has a huge number of varieties and allows, if desired, to prepare any dish - from the simplest to the most sophisticated.
Currently, both domestic and foreign manufacturers are working on the market, but there is also an opportunity for new brands to take their market share, since the consumer segments and potential market niches are extremely diverse. You can start working both in the expensive segment with manual production of elite products, and in the most profitable - mass, taking into account your ambitions and capabilities.
WHAT IS THE BUSINESS PLAN USED FOR
Entrepreneurial activity is good with the complete freedom that its initiator has at the stage of the project start. At the same time, it is a complex set of elements, without describing and structuring which your undertakings will not be able to give the planned result.
To structure the available information and certain stages of action, we will use our business plan for pasta production, which will combine all the elements of the system and describe their interaction. It also includes all the necessary calculations to substantiate the effectiveness of the business.
Sample Pasta Business Plan
Table of Contents
GENERAL PRINCIPLES OF PASTA PRODUCTS PRODUCTION
There are many ways to organize your business, from spontaneous, when you act on a whim, and ending with a purely scientific one - when all the smallest details are calculated and not a single step is taken without justification. All methods have pros and cons, but, as in any business, it is better to stick to the golden mean.
In order not to miss more than one detail of the process, it is necessary to comply with industry standards and principles, as well as the procedure for implementing its stages, which will form a single picture of the production cycle. This phasing will be reflected in the pasta business plan as follows:
- renting a suitable premises;
- purchasing flour of the required grades and other components for making a product;
- kneading dough and molding finished products; <