Is business planning always carried out on 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 multi-industry company in the context of implementing a development strategy. In most cases, this is done by a special unit within the financial department, and not by the project office. Developing a production plan in a business plan for business units or an entire company is a universal area of ​​planning activity. Let's 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 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 that the project is provided with production resources: equipment, personnel and material and technical resources. In the second case, business owners and the company’s general management must be convinced that:

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

Considering the above, it should be remembered that the importance of such a section as the production plan when integrating business projects into the plans of a multi-industry company is higher than for an individual business. It is proposed to understand a strategic business unit as a line of activity that in the financial structure has the characteristics of the central financial institution “profit” or “marginal profit”. SEB is the carrier of a separate business product or a whole range of products. In an ideal situation, SEB, being part of a 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 required stock of finished products and losses. The volume of production of work, 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. Commercial products (TP) mean not only manufactured products for external and internal consumption, but also works, services of a capital and production nature, semi-finished products that can be considered as goods. Gross output, in addition to commodity output, also includes changes 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. Added value, taken into account in the production plan as gross output, but minus material costs.

Formulas for calculating planned sales volumes, TP and VP

Auxiliary calculations of production volumes

As you know, industrial production is the most difficult type of business to plan and organize. This is especially evident when production is multi-stage in nature, requiring a larger number of support and auxiliary measures (equipment, tooling, etc.). Product innovation also leaves its mark on planning processes.

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

Therefore, under the total production volume, a stock of finished goods (GP) should be included for prompt response to requests from potential buyers and a reserve for losses. The size of the planned GP for reserves must be standardized. The stock standard is calculated based on available statistics, adopted sales policy, taking into account the conditions of a specific project, market and industry conditions. When rationing, seasonality factors and standards for replacing defective products are taken into account.

Formula for calculating adjusted production volume for GP stock and losses

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

Example of calculating adjusted production volume for GP stock and losses

In addition to the specified volume of production, the production plan also includes detailed information about the needs for the raw materials of production, semi-finished products, and components. Based on the identified needs in the dynamics of the business plan, a plan of work with suppliers is built to ensure the purchase of components to support 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 capacity and space is carried out, which is based on the standard values ​​of a number of key indicators. Formulas for such planning and optimization are given below.

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

Production and capacity plan in relation

One of the elements of competent planning of a production program is the analysis and taking into account in calculating the production capacity of the main and auxiliary divisions of the enterprise (shops and production facilities). Only after this can you 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 may be severely limited by intra-farm cooperation if the composition of capacities along the value chain turns out to be unbalanced.

This point is important even if the enterprise has only a few production areas. 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 of 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 power.

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

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

Formulas for production capacity parameters when planning a production plan

Production departments involved in main business processes or auxiliary (supporting) ones have varying degrees of interconnection with each other. For example, structures, units and equipment of auxiliary workshops may not directly participate in the main value chain. Such production facilities (pilot, specialized sites, laboratories) are not included in the calculation of production capacity for the purpose of determining production capacity. To calculate this production planning criterion, the contingency coefficient formula is used, presented below.

Formula for the contingency coefficient when calculating production capacity

There is another important question that usually always arises when developing a business plan in its production aspect. This is a matter of changing equipment operation. Hidden here are significant opportunities for increasing sales, based on the emerging or formed market demand for the product. Moreover, the more unique and expensive the equipment is used, the higher the likelihood of using a two-shift or even three-shift operating mode.

Novice investment economists often make the same mistake. An idealized option is taken into consideration, which does not take into account: the need for GP reserves and 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 a trained and certified one, makes mistakes at first, defects occur, and newly installed equipment malfunctions. 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 a business plan at the level of an operating enterprise is coming to an end. The broad question of marginal analysis localized to each product and planning activities regarding the search for optimal profitability for the purposes of project success remained unaddressed. An entire sub-branch of financial management deals with this – profit and working capital management. I am confident that we will cover this block of issues in a separate article.

Touching upon issues of business planning, I can’t get rid of the feeling of deja vu, because I remember Soviet technical industrial and financial plans. This is where the school of management was, not inferior to the most modern methods of business planning. It only lacked the market part, but the level of integration, multifactorial consideration of the nuances of technology, organization and economics 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 needs to be revived from the perspective of the best domestic traditions, which will inevitably happen in the next decade. For some reason there is no doubt about this.

Entrepreneurs involved in the production of goods or the provision of services should pay special attention to the section of the business plan dedicated to production planning. An example of a production plan in a business plan should be formed on the basis of forecasting the sales of products or the provision of services. The more detailed this section is, the higher the chance of attracting investors to the business.

Start of development

Before you begin to develop a production plan in a business plan, it is necessary to clarify whether the enterprise is operating or is at the stage of creation. This is the question that interests investors in the first place. If a company is just being created, investors may doubt the profitability of investing money. In order to avoid possible mistakes, it is necessary to correctly place emphasis when drawing up a production plan.

Basic moments:

1. Typically, a production plan is written using a product sales plan. The production plan should be fully described. It is better to formalize this using a calendar plan and include in it forecasts of ongoing events and the necessary funding.
2. The important points of the technological process are described, from the moment of purchasing materials to the sale of the finished product. It is necessary to think about how technologies will improve and what will be needed for this.
3. An analysis of the demand for products and services is carried out. It is necessary to think through issues regarding the prospects of the technology used. Ideally, it should be more advanced than that of potential competitors.
4. Issues related to the supply of materials and components are thought through, since in most cases the constancy of the technologies used depends on them.
5. The need for premises for the location of equipment and warehouse equipment is determined. The location of production facilities and their composition are noted.
6. The material assets that the enterprise possesses and the methods by which the necessary materials will be supplied in the future are indicated. If the materials used require special conditions for transportation and storage, it should be described how these conditions are met and what quality control is applied.
7. Practicality indicators are assessed, determined by the amount of time required and human resources required for production. Indicators affect the profit margin, and this is the point that worries many investors to a greater extent.

These are necessary points that you should pay special attention to. Of course, to correctly draw up a production plan, experience in the production of goods and provision of services is required. If production starts from scratch, both in terms of knowledge and in terms of work as a whole, when developing a production plan in a business plan, you should use the examples of other enterprises, drawing the most useful things from their experience.

How to determine the main technological processes

When choosing technological processes, attention should be paid not only to the perfection of equipment, but also to the availability of its use in various operating conditions of the enterprise.

For a more accurate analysis, you can use the following data sources:

1. Technical characteristics of the equipment. For example, you can use official websites of manufacturers, objective consumer reviews, etc.
2. Evaluation of the work of analogues used in enterprises of the same profile.

When choosing equipment, you should pay attention to the advantages of its operation:

• durability;
• availability of service centers located nearby;
• versatility.

The production section should also include a calculation of the required quantity of office equipment required for the normal functioning of the work process.

Justification of the premises

When choosing a premises for production, attention is paid to the following points:

• Ability to comply with industrial and fire safety requirements.
• Availability of space for warehouses.
• Possibility of placing ventilation, air conditioners, water supply and sewerage systems.
• Availability of heating in the building.

Along with developing a production plan, you need to create a plan for the location of equipment, taking into account possible expansion of production in the future.

Selection of transport

The production plan of the business plan should include options for choosing internal and external transport.

Internal transport:

• loaders and conveyors;
• manipulators operating on the territory of the enterprise.

The selection of internal transport should occur simultaneously with the selection of equipment and technology processes.

External transport is used to deliver materials and transport finished products to the market for sale. It is better to take this type of transport for a long-term lease - its acquisition is unprofitable, since it requires a separate parking space, consumables, spare parts and maintenance personnel. Purchasing ownership of external transport is beneficial for larger enterprises.

Cost forecast

When developing a production plan, you should indicate the possible costs that will have to be incurred during the planning of the work process:

Recruiting staff

When developing a production plan, attention must be paid to workers' working conditions, pay and incentives for efficiency. Costs may include bonuses and other surcharges. When expanding production, staff training may be required. In this case, planning should include training costs.

Developing a production plan in a business plan is a complex and time-consuming task that requires special attention and special knowledge in various fields. If possible, people knowledgeable in engineering, technical and economic issues should be involved in the development of the project.

Business from scratch - how to write a business plan: Video

A production plan is the established rules for the production of products or the provision of services. They are necessary to ensure the stable operation of the company.

What is included in the concept of a production plan?

The production plan (PP) refers to the administrative activities of the company. It includes various management decisions regarding the number of employees and the volume of raw materials used. The PP includes the following components:

• Work that will be subcontracted.
• Optimal volume of purchased raw materials.
• Control over the quality of goods and services.
• Unit cost of production.
• Usage .
• Analysis of existing premises, owned or leased, determining the need for new space.
• Analysis of staff: number, qualifications, salary.
• Marginal profit.

The exact structure of the production plan is determined based on the characteristics of a particular company.

Why do you need a production plan?

The main function of the PP is to achieve the goals set by the enterprise. Let's consider all the tasks that the production plan allows you to solve:

• Attracting new clients, increasing the loyalty of representatives of the existing client base.
• Full use of all available resources to meet consumer needs and reduce costs.
• Production of competitive goods, introduction of technological innovations.
• Improving the quality of products and services.
• Purchasing the optimal volume of good quality raw materials at low prices.
• Creating a reserve of resources in case of increased demand.
• Operating within the established budget.
• Reducing company loans.
• Standardization of reporting.
• Details of existing costs.
• Creating a strategy that will be relevant even in unplanned situations.

Large companies must have a production plan.

Principles used in planning

When drawing up the PP, it is necessary to be guided by the following principles:

• Continuity of planning: the plan is relevant throughout the entire production period.
• A plan is required when executing any form of company activity.
• Principle of unity: software must be systematic, taking into account the relationships between labor processes.
• The principle of economy: the software should be such as to obtain maximum results at minimum costs.
• PP must be flexible. That is, it can be changed if circumstances require it.
• The accuracy of the plan must be sufficient to achieve the set goals.
• As part of the partnership, all branches of the company are interconnected.

When drawing up a plan, you must also remember the principle of results orientation.

How is a general document for PP drawn up?

As a rule, a production plan is drawn up for a year. It contains general manufacturing specifications. The basis for drawing up is forecasts regarding future demand for products, as well as a production load plan. When drawing up the document, production standards, reserves, and number of employees are calculated. When drawing up a PP, it is necessary to formulate a general concept of the company’s activities. For example, the document takes into account everything, and not individual product categories. There is no need to dwell on details.

A general production plan is required by large enterprises that manufacture a large range of products. For a small company, it will be enough to draw up a work plan in the form of a work schedule.

IMPORTANT! The PP must reflect key aspects of the enterprise’s activities: the total number of employees, established production standards.

Composition of the production plan

Consider the structure of the production plan:

1. Title page.
2. Content.
3. Basic information about the company.
4. Basic information about manufactured products or services.
5. Organizational plan.
6. Marketing plan.
7. Production plan.
8. Investment plan.
9. Financial plan.
10. Applications.

The appendix specifies additional information that may be required as part of the PP.

How is capacity utilization determined for a production plan?

LET'S CONSIDER AN EXAMPLE: The organization plans to start manufacturing garden carts. Marketing research is conducted to determine consumer preferences. His results: garden carts in the mid-price category are most in demand among buyers. Marketing research data helps determine which products make sense to produce. After this, the volume of products to be produced is calculated. In this case, you need to focus on the expected demand for carts. If demand is less than the volume of products produced, some of the products will simply remain unclaimed.

If an organization has been operating for a long time, it makes sense to compare the commercial forecast of demand with the available capacity. This is necessary in order to determine the need for additional capacity. If such a need is identified, the PP must indicate a list of required equipment. The following information is also indicated:

• Costs of paying salaries to employees.
• Availability of employees with appropriate qualifications.
• Electricity costs.

The significance of each of these indicators depends on the characteristics of the company's activities.

How to reflect the production process in the PP?

When manufacturing a product, you need to determine the method of its production. When forming a software project, it is necessary to analyze the available equipment and technologies and select the most effective option. In this case, a choice is made between two forms of production:

• Low or high degree of automation.
• Standard or customized technology.
• Flexibility or system performance.

The conveyor production method is suitable for most companies. If the organization plans to work on special orders, other production methods will be needed. All these aspects must be reflected in the production plan.

Common mistakes when drawing up a production plan

Global errors in drawing up a production plan lead to the fact that the document becomes completely irrelevant. Let's look at these errors:

• Unjustified increase in stocks in the warehouse. The purchase of raw materials in excess quantities leads to the fact that part of the reserves simply remains unclaimed. This leads to a suspension of financial processes and an increase in the costs of maintaining warehouse premises.
• Misuse of reserves. Involves the direction of raw materials for third-party purposes. This results in all the goods being sold out, but new raw materials have not yet arrived from the supplier.
• Increase in work in progress. When urgent orders arise, a decision is often made to suspend production. This entails the suspension of work processes. The problem can be solved by refusing some urgent orders.

IMPORTANT! It is recommended to start drawing up the PP 1-2 months before the start of the financial year. If the financial year coincides with the calendar year, the formation of the PP should begin in early October. More than one specialist should work on drawing up a production plan. The heads of all departments of the company are involved in this work.

The basis for planning the work of any enterprise is the production plan. This document records the volume and procedure for the production of goods or the provision of services with associated characteristics: the volume of raw materials used, cost, labor costs. Let's consider how to draw up a production plan, what purposes it serves, what must be reflected in this document and its sample.

A production plan is a document with the help of which the management of an enterprise organizes work and controls the labor process, consumption of raw materials and energy, and the employment of personnel. The production plan is the basis of the company's activities. Without it, it is impossible to effectively control the enterprise, track profits and losses, and find ways to optimize.

Such a document sets a task for each department/structural unit. The production plan is drawn up at each enterprise independently. It is virtually impossible to find a ready-made template: each organization has its own specifics. At the same time, there are generally accepted approaches and algorithms for compiling this document. Their use greatly simplifies the procedure. It is also important to know that you cannot write a plan once and use it constantly. The document requires regular updating.

Working in accordance with the production plan is more promising

What does it give

Any production plan serves several purposes simultaneously:

1. Determining the number of units of goods and services needed to make a profit.
2. Planning a specific profit margin, the ratio of expenses and income, and any other important financial indicators.
3. Assessment of the efficiency of use of resources and raw materials.
4. Quality control. The document can record specific characteristics of goods and achieve them.
5. Planning of raw material costs.
6. Finding ways to optimize the process and work options.
7. Capacity control.
8. Monitoring the efficiency of use of labor resources.
9. Sales efficiency assessment.
10. Development of optimal ways to use the budget.
11. Standardization of reporting.

Thus, the list of tasks solved by the production plan is very wide. In addition, depending on the wishes of management, the document may include any other indicators and goals for structural units. The document helps to develop a development strategy - a list of specific actions of the enterprise necessary to achieve work goals. The plan helps to allocate resources effectively.

Types of production plans

All production plans can be divided into the following types:

1. Short-term - 1-2 years. Divided into quarters and half-years. They establish what goals the company must achieve within a year.
2. Medium-term - from 2 to 5 years. The main goal is to determine the organizational structure, the number of employees, capital investments and production capacity, the volume of annual income and growth dynamics, the need for investments and loans.
3. Long-term - from 10 years and above. The goal is to develop an economic strategy, determine the organization’s place in the market, and position among competitors.

The long-term plan is concretized in the medium-term, the medium-term - in the short-term. All three plans must be consistent with each other. They cannot contradict each other. Planning must provide for the dynamics of development. The documents should indicate what indicators the enterprise will consistently achieve.

Large organizations draw up all 3 types of plans, smaller ones - only medium-term and short-term ones. The work of any enterprise, especially one producing material assets, is ineffective without a plan. A development strategy is necessary even in the service sector and trade.

It is better to entrust drawing up a plan to specialists with specialized education

Features of drawing up a plan

A production plan is not one document, but several at once. The most standard kit includes:

1. A plan for the main activity, fixing the goals of the enterprise, categories of goods and volumes of their production.
2. Work schedule - a list of categories of goods indicating their quantity, cost, and required raw materials. Production dynamics - how much goods to produce and sell in each month, in each year.
3. Table of the company's needs for funds, investments, loans.

Among the important indicators that should be recorded in the plan of any manufacturing enterprise are:

• tariffs for utilities, costs for their payment;
• wage fund;
• consumption of raw materials per unit of product or service;
• production process technology;
• marginal profit;
• availability of specialists with a certain level of qualification;
• amount of borrowed funds, interest rate.

Identification of capacity utilization

Determining capacity utilization - that is, the optimal methods of using equipment and raw materials to produce the maximum volume of products - is one of the most important parts of the production plan. How is it calculated?

1. Determine the categories and specific product models most in demand on the market.
2. Calculate the amount of resources that must be used to produce one unit.
3. They predict the number of units of goods that can be sold in the shortest possible time.
4. They determine how many units of goods and in what time frame the existing equipment can produce.
5. They analyze how long it will take to produce the required batches of goods using existing equipment.

This is a simplified algorithm for calculating power. As a rule, these operations are trusted to professional economists. To correctly calculate modalities, you need to know the productivity of the equipment, the speed of work of personnel and the consumption of raw materials. This process involves planning and guessing about the market situation. Establishing the exact required production volume is almost impossible. Success is considered to be achieving the indicators that are closest to reality.

Sample production plan indicating units of production for each month of work

Reflection of the production process

Any sample production plan for an enterprise must include a description of the production process: both global and for each product model. Only accurate recording of the entire process will help you plan and optimize your work correctly.

It is most convenient to reflect the production process in the form of a diagram, where each action will be displayed in stages.

A clear diagram indicating the equipment, personnel and raw materials involved will help management evaluate the effectiveness of the existing work procedure and, if necessary, find ways to optimize. Based on the analysis, it will be possible to determine optimal operating methods.

Operating schedule

The production plan includes a section that describes the work schedule, namely:

• number of shifts, duration;
• number of days off/no days off;
• number of workers per shift;
• expected productivity of each shift.

Room or area for equipment placement

Such a document describes all available premises indicating their purpose. It is necessary to record the area, ceiling height, condition (whether repairs are required), connected communications, entrances, exits, windows, and, if necessary, describe the finishing. Make a conclusion about the suitability of the premises for production in the medium and long term.

If the analysis of the premises shows that it is unsuitable for increasing productivity, the search for suitable real estate with clarification of specific requirements should be included in the medium-term plan.

It is important to reflect the advantages and disadvantages of the existing workshop to achieve maximum profits.

An enterprise can plan to open new workshops, create representative offices in other regions - all this must also be recorded in medium- and long-term planning. Mandatory with a description of the requirements for real estate.

The planners independently think through its structure

Material requirements and raw material suppliers

Planning helps to use resources wisely, but only if it contains information about materials and their suppliers. Information about the quality and cost of raw materials will help evaluate the quality of products and the feasibility of working with a specific supplier. Information about the conditions of working with counterparties will help, if necessary, quickly predict how a change in the price of any of its goods will affect production.

• The most convenient way to describe the need for materials and their suppliers is through tables for each product. Please indicate:
• weight/color/size of goods;
• its key characteristics;
• full composition indicating the volumes of raw materials used;
• the ability to replace any components;
• supplier information;

the price of each component.

Fixed costs

• An important section that will present a list of fixed expenses similar to most enterprises:
• rental of premises;
• Communal expenses;
• raw materials and starting materials;
• taxes and mandatory payments;
• logistics and transport;

wage fund.

The document should record the current and planned values ​​of each flow rate, possibly indicating acceptable limits. This approach will help make the plan more flexible, adapted to changing market conditions. Knowing the acceptable limits of each area of ​​fixed costs will help, if necessary, more quickly regulate product prices.

The manufacturer must calculate the full cost of each of its products. Without knowing this indicator, it is impossible to correctly select the price, which means it threatens losses. To calculate the total cost, add up all the values ​​of expended resources:

• starting materials;
• depreciation of equipment;
• utility and other energy costs;
• employee salary;
• salary of management personnel;
• insurance premiums;
• transportation costs;
• advertising;
• sales expenses.

Example of a production plan

A typical example of a 1 year production plan is shown in the image below. It is made according to the most common structure and reflects the most important indicators for the manufacturer. You shouldn’t use someone else’s plans, but you can analyze them and adapt them for your own production.

Production plan option

Common errors

The most common mistakes when drawing up such a document are incorrect accounting of material consumption, incorrect assessment of equipment capacity, and inflated expectations of demand. These inaccuracies have a detrimental effect on the content of the document: it is less connected with reality. An incorrect development strategy built on erroneous calculations will inevitably lead to bankruptcy.

Therefore, it is extremely important to track indicators as accurately as possible and, if necessary, adjust them. The more the company monitors the content of the production plan, the more likely it is to achieve the optimal ratio of income and expenses.

When planning, it is extremely important to take into account the likelihood of unexpected circumstances: equipment breakdown, a large private order or a disruption in the supply of raw materials. The enterprise must have measures in place for each such case. It makes more sense to initially set lower indicators, not at the limit of the equipment’s capabilities, and if successful, increase them slightly.

Monitoring the implementation of the plan

The implementation of the control plan is carried out by virtually the entire management team of the enterprise in their area of ​​​​responsibility. So, the production manager controls the production of the required batch of goods within a specific time frame, the head of the supply department monitors how much raw material they need to receive and ship every day, and so on. Control over all areas and implementation of the plan as a whole is the responsibility of the manager.

Which examines the main production indicators and product sales volumes, variable and fixed costs, personnel plan, depreciation costs of fixed production assets, requirements for the organization of the production process and the main technical and economic characteristics of production, specialized equipment and technologies used.

This section describes in detail the path by which it is planned to establish production and sales of products, indicating problem and bottlenecks that require special attention and means (methods) to overcome them. The production plan reflects the following characteristics of the organization of the technological process of production:

General technical and organizational requirements for production.

Here we consider general design requirements for the organization of a production site, a list of basic and auxiliary production equipment necessary for the acquisition, and requirements for the technologies used.

1. Total area, zoning and technical characteristics of the production site, reflection of design and estimate documentation for new industrial and engineering construction (if necessary).

2. A list of the main and auxiliary technological equipment required for purchase, indicating its name, series and brand, quantity, price per unit of equipment, supplier and his contact information, total costs for the acquisition of technological equipment.

3. The production technologies used (their availability, patent protection, reliability, productivity and other characteristics).

Description of the production process and costs.

This part of the production plan includes a calculation of the needs for raw materials and components, a plan for production and sales of products, a calculation of fixed and variable production costs and depreciation charges.

1. The need and conditions for the supply of raw materials, materials and components. The main characteristics of supplying the production process with raw materials are also reflected in tabular form, indicating the type of raw materials (components, semi-finished products), the price per unit of raw materials, the main suppliers and their contact details. In order to ensure uninterrupted production activities of the company, the volumes of purchased raw materials and components must exceed those volumes that are necessary directly for the production of a certain amount of products. This is done in order to ensure a carryover supply of raw materials. The size of the production inventory is justified by its norm, which represents the average stock of materials during the year in days of its average daily consumption, and is calculated at the end of the year as a carryover stock. The size of the carry-over stock depends on the amount of demand for various types of materials and the seasonality of their supplies in accordance with the Order of the Federal Administration on Insolvency (Bankruptcy) dated December 5, 1994 No. 98-r “On the standard form of a financial recovery plan for an enterprise (business plan)” determined by the formula:

where: T – size of carryover stock;

Q – the need for appropriate material, natural. units;

M – carrying stock norm, days;

D – number of days of the planning period.

The carrying stock rate is determined by the sum of average, current and safety stocks.

2. Reflection in tabular form of the volume of production and sales of products, indicating the sales price of products and proceeds from sales. A number of business planning methods also include Value Added Tax as part of total sales revenues in this tabular form of the Production Plan. This is the main table within this section of the business plan.

For a potential investor (strategic partner), the table reflecting the schedule of production and sales of products, as well as sales revenue, will be of particular interest in the production plan, therefore this tabular form must be detailed in sufficient detail.

The time horizon for reflecting the production plan and product sales plan is usually equal to the full payback period of the investment project. However, at the request of the investor, it can be slightly increased if the goal is to model the distribution and reinvestment of profits after the project pays off.

3. Calculation of fixed and variable production costs. In the production plan, it is necessary to provide an estimate of costs for manufactured products, which is a calculation of costs for individual types of manufactured and sold products. Cost calculation for the production and sale of products can be carried out according to an integrated scheme based on existing standards for the costs of raw materials, components and semi-finished products for the manufacture of a unit of product. The consolidated cost estimate for the production and sale of products includes cost items related to the cost of production, without breaking them down into fixed and direct costs, as well as the balance of non-sales operations.

The consolidated cost estimate is based on the production and sales plan and describes the total cost of all manufactured products, as well as the cost of each individual type of product. Thus, cost estimates can be detailed for individual types of products.

The composition of costs and their classification must comply with the Decree of the Government of the Russian Federation dated 05.08.1992 No. 552 “On approval of the regulations on the composition of costs for the production and sale of products (works, services) included in the cost price, and on the procedure for the formation of financial results taken into account for tax purposes. - the wife of profit.” They are as follows:

SALES VOLUME, TOTAL

COST, TOTAL, including:

2. materials and components

3. fuel

4. electricity and thermal energy

5. payroll

6. accruals for personal wages

7. depreciation of OPF

9. other expenses

10. loan servicing (interest)

TOTAL NON-OPERATING OPERATIONS BALANCE, INCLUDING:

11. income according to the Central Bank

12. rental income

13. property tax

14. land tax

15. other income and expenses

BALANCE PROFIT

16. Income tax

17. Other taxes and payments from profit

NET PROFIT

When using business plan development software, the cost estimate is divided into two tabular forms - calculation of fixed (total) costs and calculation of variable (direct) costs for production and sales of products.

4. Calculation of depreciation charges for the restoration of fixed production assets is considered as part of the total (fixed) costs of production and sales of products. Project calculations may include various forms of depreciation of fixed assets:

Linear depreciation – the initial cost of fixed assets is paid evenly over the entire service life of the equipment;

Accelerated depreciation - the initial cost of fixed production assets is returned in a shorter period of time, and therefore depreciation rates are set higher (most often used in the leasing mechanism for lending and project financing).

Personnel plan.

The personnel plan is a mandatory and extremely important component of such a section as the “Production Plan”. The personnel plan displays quantitatively and qualitatively the structure of the company’s personnel involved in the implementation of a specific investment project, the level of personnel qualifications, personnel costs (payroll and deductions from it).

It is advisable to divide the personnel plan into 3 parts:

Administrative and management personnel;

Production personnel;

Marketing and support staff.

Within the framework of an investment project, two forms of wages can be used: in the form of a fixed salary and piecework wages. In the case of piecework wages, it is considered as one of the variable cost items for the production and sale of products and is taken into account in the consolidated cost estimate (Table 8). A fixed salary should be considered as one of the items of fixed (total) costs for production and sales of products.

Thus, the production plan within the business plan is considered as one of the key sections, the main task of which is to show the potential investor the reality of the company’s production (sales) program and the sufficiency of the resources available for this (both material and labor). In addition, the production plan reflects all the requirements for the organization of production and sales of products, reflects the author of the business plan’s knowledge of the production technological scheme, the availability of appropriate personnel with the required level of competence, licenses, certificates and permits.

Another important task of the production plan is the modeling and analysis of existing and future material flows within the enterprise, indicating specific sources of raw materials and specific consumers.

Source - Business planning and development of investment projects / Educational manual, edited by Savelyeva Yu.V., Zhirnel E.V., Petrozavodsk, 2007.