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Production Plan in Business Plan: A Comprehensive Guide to Success

Last Updated:  

February 26, 2024

In any business venture, a solid production plan is crucial for success. A production plan serves as a roadmap that outlines the steps, resources, and strategies required to manufacture products or deliver services efficiently. By carefully crafting a production plan within a business plan, entrepreneurs can ensure optimal utilisation of resources, timely delivery, cost efficiency, and customer satisfaction. In this article, we will delve into the intricacies of creating an effective production plan in a business plan , exploring its key components, strategies, and the importance of aligning it with overall business objectives .

Key Takeaways on Production Plans in Business Planning

• A production plan : a detailed outline that guides efficient product manufacturing or service delivery.
• Importance of a production plan : provides a roadmap for operations, optimises resource utilisation, and aligns with customer demand.
• Key components : demand forecasting, capacity planning, inventory management, resource allocation, and quality assurance.
• Strategies : lean manufacturing, JIT inventory, automation and technology integration, supplier relationship management, and continuous improvement.
• Benefits of a well-executed production plan : improved efficiency, reduced costs, enhanced product quality, and increased profitability.

What is a Production Plan?

A production Seamless Searches plan is a detailed outline that specifies the processes, resources, timelines, and strategies required to convert raw materials into finished goods or deliver services. It serves as a blueprint for the entire production cycle, guiding decision-making and resource allocation. The production plan considers factors such as demand forecasting, capacity planning, inventory management, and quality assurance to ensure efficient operations and optimal customer satisfaction.

Why is a Production Plan Important in a Business Plan?

The inclusion of a production plan in a business plan is vital for several reasons. First and foremost, it provides a clear roadmap for business operations, helping entrepreneurs and managers make informed decisions related to production processes. A well-developed production plan ensures that resources are utilised efficiently, minimising wastage and optimising productivity.

Additionally, a production plan allows businesses to align their production capabilities with customer demand. By forecasting market trends and analysing customer needs, businesses can develop a production plan that caters to current and future demands, thus avoiding overstocking or understocking situations.

Furthermore, a production plan helps businesses enhance their competitive advantage. By implementing strategies such as lean manufacturing and automation, companies can streamline their production processes, reduce costs, improve product quality, and ultimately outperform competitors.

Key Components of a Production Plan

To create an effective production plan, it is crucial to consider several key components. These components work together to ensure efficient operations and successful fulfilment of customer demands. Let's explore each component in detail.

Demand Forecasting

Demand forecasting is a critical aspect of production planning. By analysing historical data, market trends, and customer behaviour, businesses can predict future demand for their products or services. Accurate demand forecasting allows companies to optimise inventory levels, plan production capacity, and ensure timely delivery to customers.

One approach to demand forecasting is quantitative analysis, which involves analysing historical sales data to identify patterns and make predictions. Another approach is qualitative analysis, which incorporates market research, customer surveys, and expert opinions to gauge demand fluctuations. By combining both methods, businesses can develop a robust demand forecast, minimising the risk of underproduction or overproduction. Utilising a free notion template for demand forecasting can further streamline this process, allowing businesses to organise and analyse both quantitative and qualitative data efficiently in one centralised location.

Capacity Planning

Capacity planning involves determining the optimal production capacity required to meet projected demand. This includes assessing the production capabilities of existing resources, such as machinery, equipment, and labour, and identifying any gaps that need to be addressed. By conducting a thorough capacity analysis, businesses can ensure that their production capacity aligns with customer demand, avoiding bottlenecks or excess capacity.

An effective capacity plan takes into account factors such as production cycle times, labour availability, equipment maintenance, and production lead times. It helps businesses allocate resources efficiently, minimise production delays, and maintain a consistent level of output to meet customer expectations.

Inventory Management

Efficient inventory management is crucial for a successful production plan. It involves balancing the cost of holding inventory with the risk of stockouts. By maintaining optimal inventory levels, businesses can reduce carrying costs while ensuring that sufficient stock is available to fulfil customer orders.

Inventory management techniques, such as the Economic Order Quantity (EOQ) model and Just-in-Time (JIT) inventory system, help businesses strike the right balance between inventory investment and customer demand. These methods consider factors such as order frequency, lead time, and carrying costs to optimise inventory levels and minimise the risk of excess or insufficient stock.

Resource Allocation

Resource allocation plays a pivotal role in a production plan. It involves assigning available resources, such as labour, materials, and equipment, to specific production tasks or projects. Effective resource allocation ensures that resources are utilised optimally, avoiding underutilisation or overutilisation.

To allocate resources efficiently, businesses must consider factors such as skill requirements, resource availability, project timelines, and cost constraints. By conducting a thorough resource analysis and implementing resource allocation strategies, businesses can streamline production processes, minimise bottlenecks, and maximise productivity.

Quality Assurance

Maintaining high-quality standards is essential for any production plan. Quality assurance involves implementing measures to monitor and control the quality of products or services throughout the production process. By adhering to quality standards and conducting regular inspections, businesses can minimise defects, ensure customer satisfaction, and build a positive brand reputation.

Quality assurance techniques, such as Total Quality Management (TQM) and Six Sigma , help businesses identify and rectify any quality-related issues. These methodologies involve continuous monitoring, process improvement, and employee training to enhance product quality and overall operational efficiency.

In addition to the core components of a production plan, it's also important for businesses to consider the broader aspects of their business strategy, including marketing and advertising. Understanding the costs and returns of different marketing approaches is crucial for comprehensive business planning. For instance, direct response advertising costs can vary significantly, but they offer the advantage of measurable responses from potential customers. This type of advertising can be a valuable strategy for businesses looking to directly engage with their target audience and track the effectiveness of their marketing efforts.

Strategies for Developing an Effective Production Plan

Developing an effective production plan requires implementing various strategies and best practices. By incorporating these strategies into the production planning process, businesses can optimise operations and drive success. Let's explore some key strategies in detail.

Lean Manufacturing

Lean manufacturing is a systematic Seamless Searches approach aimed at eliminating waste and improving efficiency in production processes. It emphasises the concept of continuous improvement and focuses on creating value for the customer while minimising non-value-added activities.

By adopting lean manufacturing principles, such as just-in-time production, standardised work processes, and visual management, businesses can streamline operations, reduce lead times, and eliminate unnecessary costs. Lean manufacturing not only improves productivity but also enhances product quality and customer satisfaction.

Just-in-Time (JIT) Inventory

Just-in-Time (JIT) inventory is a strategy that aims to minimise inventory levels by receiving goods or materials just when they are needed for production. This strategy eliminates the need for excess inventory storage, reducing carrying costs and the risk of obsolete inventory.

By implementing a JIT inventory system, businesses can optimise cash flow, reduce storage space requirements, and improve overall supply chain efficiency. However, it requires robust coordination with suppliers, accurate demand forecasting, and efficient logistics management to ensure timely delivery of materials.

Automation and Technology Integration

Automation and technology integration play a crucial role in modern production planning. By leveraging technology, businesses can streamline processes, enhance productivity, and reduce human error. Automation can be implemented in various aspects of production, including material handling, assembly, testing, and quality control.

Continuous Improvement

Continuous improvement is a fundamental principle of effective production planning. It involves regularly evaluating production processes, identifying areas for improvement, and implementing changes to enhance efficiency and quality.

By fostering a culture of continuous improvement, businesses can drive innovation, optimise resource utilisation, and stay ahead of competitors. Techniques such as Kaizen, Six Sigma, and value stream mapping can help businesses identify inefficiencies, eliminate waste, and streamline production workflows.

Frequently Asked Questions (FAQs)

What is the role of a production plan in business planning.

A1: A production plan plays a crucial role in business planning by providing a roadmap for efficient production processes. It helps align production capabilities with customer demand, optimise resource utilisation, and ensure timely delivery of products or services.

How does a production plan affect overall business profitability?

A2: A well-developed production plan can significantly impact business profitability. By optimising production processes, reducing costs, and enhancing product quality, businesses can improve their profit margins and gain a competitive edge in the market.

What are the common challenges faced in production planning?

A3: Production planning can present various challenges, such as inaccurate demand forecasting, capacity constraints, supply chain disruptions, and quality control issues. Overcoming these challenges requires robust planning, effective communication, and the implementation of appropriate strategies and technologies.

What is the difference between short-term and long-term production planning?

A4: Short-term production planning focuses on immediate production requirements, such as daily or weekly schedules. Long-term production planning, on the other hand, involves strategic decisions related to capacity expansion, technology investments, and market expansion, spanning months or even years.

How can a production plan be adjusted to accommodate changes in demand?

A5: To accommodate changes in demand, businesses can adopt flexible production strategies such as agile manufacturing or dynamic scheduling. These approaches allow for quick adjustments to production levels, resource allocation, and inventory management based on fluctuating customer demand.

In conclusion, a well-crafted production plan is essential for business success. By incorporating a production plan into a comprehensive business plan, entrepreneurs can optimise resource utilisation, meet customer demands, enhance product quality, and drive profitability. Through effective demand forecasting, capacity planning, inventory management, resource allocation, and quality assurance, businesses can streamline production processes and gain a competitive edge in the market.

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Production Planning 101: Making a Production Plan (Example Included)

As the creation of products and services has become more extensive and varied, the manufacturing industry has become more competitive. There are many things to keep an eye on such as material requirements planning, supply chain management and inventory control. Operations continue to become more complex, meaning manufacturing companies require more thorough production planning.

A production plan is the best way to guarantee you deliver high-quality products or services as efficiently as possible.

What Is Production Planning?

Production planning is the process of deciding how a product or service will be manufactured before the manufacturing process begins. In other words, it’s how you plan to manage your supply chain, raw materials, employees and the physical space where the manufacturing process occurs.

Production planning is important for manufacturers as it affects other important aspects of their business such as:

• Supply chain management
• Production scheduling
• Material requirements planning
• Production lead time
• Capacity planning

ProjectManager is project management software that helps manufacturers cover every aspect of production planning. Plan with Gantt charts, execute with kanban boards and manage resources along the way. No other software offers sophisticated project and resource management features in one intuitive package. Get started today for free.

Why Is Production Planning Important?

If a manufacturing operation wishes to expand, that evolution demands careful production planning and scheduling. Someone must take on the responsibility of managing resources and deciding how they’ll be allocated. This process is a big part of capacity planning —how much can be made in a certain period, with the available resources?

Without production planning, it’s easy to use too much of a resource for one product and not leave enough for another, or fail to schedule your resources properly, which results in delays that affect your overall production management process. It’s just as easy to let resources go to waste. These issues indicate a lack of efficiency in your production planning process.

Production planning is the best way to ensure resources are used appropriately, products and services are high-quality and nothing goes over budget . In most organizations, a production manager manages the production planning process.

What Does a Production Planner Do?

A production planner is a team leader who oversees the production planning process, which defines how an organization will approach major areas of production management such as production scheduling, resource capacity planning, production control and production budgeting to manufacture products.

To better understand what a production planner does and the importance of this role in any manufacturing organization, let’s dive into each of the steps of the production planning process.

10 Steps of the Production Planning Process

The production planning process consists of an organization’s actions to make a production strategy that allows it to manufacture products most efficiently and profitably. Here are 10 key steps you should follow when planning your production process.

1. Use Production Forecasting Methods for Estimating Customer Demand

The first step of the production planning process is to forecast the customer demand for your product for a future period like a year or a quarter. To do so, manufacturers rely on quantitative and qualitative techniques such as Delphi method, historical analogy method, moving average method and the analysis of business data and sales forecasts.

This process is known as demand planning , which helps manufacturers be better prepared to meet the demand for their products and manufacture the right quantity so they can minimize production and operational costs.

2. Gauge Your Production Capacity

The term production capacity refers to the maximum quantity of product a manufacturing company can produce based on its available production resources such as raw materials, labor, equipment and machinery.

Once you better understand the customer demand for your product, you’ll need to gauge the total quantity of product that needs to be manufactured and then evaluate if your production capacity is sufficient.

3. Map Out the Shop Floor Layout

Now think about the steps of the production process itself. Outline the production tasks that must be executed to transform raw materials, parts and components into a final product and the physical route that those elements will follow to move across the shop floor. This will allow you to pick a production floor layout that minimizes the time and effort required from your employees.

4. Make a Production Budget to Find the Optimal Production Volume

The next challenge in the production planning process is determining the exact number of units to manufacture to keep up with customer demand and maintain your desired stock levels.

This requires a production budget , a document used to calculate the number of units that should be produced by a company to meet the customer demand for a period such as a month, quarter or even a year.

Creating a production budget involves assessing the current product inventory, the production capacity, sales forecasts and the ending inventory that should remain at the end of the period. Once you analyze these variables and use the production budgeting formula, you’ll know the required production level for a given time.

5. Choose a Production Costing Technique

Choose a costing method for your production process such as activity-based costing, process costing, job costing or simply standard costing. Each has its pros and cons depending on your organization’s particular characteristics.

6. Create a Production Schedule

Now it’s time to make a production schedule that allows your organization to create a stock inventory, deliver products to distribution channels, fulfill customer orders and meet the obligations of any manufacturing contracts the organization has in place for the production timeline you’re planning for.

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7. Establish a Production Control System

Next, it’s important to establish standard operating procedures and key performance indicators and use a variety of production control tools to create a system that allows you to track the production process to ensure your products meet quality standards and are manufactured on time and under budget.

8. Set Production Reporting Guidelines

After you’ve decided what KPIs will be used to monitor the efficiency of your production process, you’ll need to determine what types of reports will be used to communicate these metrics with stakeholders and the frequency in which they’ll be produced.

The documentation from each of these production planning stages, such as the production budget and production schedule are gathered in a larger document called the production plan.

What Is a Production Plan?

A production plan is a document that describes how production processes will be executed, and it’s the outcome of the production planning process. It describes the human resources, raw materials and equipment needed and the production schedule that will be followed.

The person responsible for production planning must also be very familiar with the operation’s inner workings, project resources and the products/services they produce. This usually entails collaborating with people on the floor, in the field or in different departments to create products and deliver services.

Production Plan Example

The best way to illustrate this process is through an example. When you set out to create a production plan, make sure to follow these steps to make it as robust as possible.

Sales Forecast

Making a sales forecast greatly helps you decide which product planning method is best for your operation given your production capacity. You’ll need to use diverse sales forecasting techniques to better understand what will be the future demand for your product. From here, you can estimate which resources are required and how they’ll be used in the manufacturing process to begin the production capacity planning process.

Inventory Management Plan

Accessing inventory is about more than simply taking stock: you should make an inventory management plan for your production inventory and work-in-progress inventory so that you don’t experience shortages that might halt production or let things go to waste. For this step, focus on the inventory control and inventory management techniques you can use to handle inventory in the most efficient way possible.

Production Budget

Most manufacturers use the production budgeting formula below to make a production budget that indicates the ideal production volume based on a starting inventory, sales forecasts, production capacity and expected ending inventory levels.

Required Production = Sales Forecast Expected Units + Desired Ending Inventory – Beginning Inventory

Resource Plan

A successful production plan requires you to be familiar with the resource planning details of the manufacturing process, which is why you’ll need to make a resource plan that outlines what resources such as labor, raw materials, equipment and any other capital assets are available for production and when they’re scheduled to be utilized.

Production Cost Estimate

Once you’ve determined what the required level of production is and the resources that will be needed, you’ll need to estimate the cost of production . It’s important to ensure the production process will be profitable before creating a production schedule.

Production Schedule

As stated above, a production schedule is key to making sure your manufacturing team delivers products on time, but also guides efforts in other areas such as supply chain management and logistics management.

Production Control Plan

A production control plan should describe all the metrics, procedures, guidelines and tools that will be utilized to monitor how the results compare to the production schedule and resource management projections. This is something that should continually take place and be documented during the production process.

Types of Production Planning

Every operation is unique, and the same production plan isn’t right for everyone. To get the most from project planning, you decide which method is best for your manufacturing process. Here’s a quick intro to the different types of production planning.

The job method is often used when manufacturing a single product, for which a unique production plan is created. This production planning method is generally used in smaller-scale productions, but it can also be applied to larger manufacturing facilities. The job method is especially advantageous when a production order requires specific customizations.

Batch Production Method

Batch production consists of manufacturing goods in groups, instead of being produced individually or through continuous production . This method is useful when manufacturing products on a large scale.

Flow Method

The flow method is a demand-based manufacturing model that minimizes the production lead time by speeding up the production line. The manufacturing process starts based on work orders, and once it starts, it doesn’t stop until all finished goods are produced. This is called continuous production and it’s achieved by using machinery and little intervention to minimize waiting time.

Process Method

The process method is more or less what most people picture when they think about production—an assembly line. With the process method, there will generally be different types of machinery that complete separate tasks to put together the finished goods.

Mass Production Method

The mass production method primarily focuses on creating a continuous flow of identical products. It’s similar to the flow method, but at a much bigger scale, which cuts production costs. When uniformity is just as critical as efficiency, use “standardized processes” to guarantee all products look the same.

Production Planning Best Practices

No matter what product or service is being manufactured, there are many tried-and-true best practices to increase your operational efficiency . When creating a production plan, keep these two in mind.

Make Accurate Forecasts

When you don’t properly estimate the demand for your product or service, it’s impossible to create a detailed production plan. Demand planning is never static. Consider buying trends from previous years, changes in demographics, changes in resource availability and many other factors. These demand planning forecasts are the foundation of skillful production planning.

Know Your Capacity

Capacity planning means knowing the maximum capacity your operation can manage—the absolute most of a product or service it can offer during a period of time. This is the only way to anticipate how much of each resource you need to create X amount of products.

When you don’t know the production capacity, your production planning is like taking a shot in the dark.

Common Production Planning Mistakes

Stay vigilant of common missteps as you go through the production planning process. Here are three mistakes often made during production planning. Luckily, they can be prevented.

Not Expecting the Unexpected

This means having risk management strategies in place if things go awry. The goal is to never have to employ them, of course, but it’s better to have them and not need them. Production planning is incomplete if it doesn’t anticipate risks, issues and changes. When you plan for them, you’re ready to problem-solve if and when they happen.

Getting Stuck Behind the Desk

You should work with intelligent production planning tools, but that doesn’t mean you should only rely on enterprise resource planning software for production planning and not oversee resources and manufacturing operations in person. When production planning is only done from behind a screen, the result won’t be as informed as it could be. The best production planning is active and collaborative.

Neglecting Equipment

To get the most from your equipment, you need to take care of it. This means tracking usage and keeping up with regular maintenance. This looks different depending on the industry and product or service, but the principle is the same: continually take care of your equipment before it becomes a problem that slows down production.

Use ProjectManager for Production Planning and Scheduling

As the nature of manufacturing goods and services changes, you need modern tools to plan production and make schedules. ProjectManager is award-winning project management software that offers all the tools you need for excellent production planning and scheduling. With it, you can plan projects, create schedules, manage resources and track changes with one tool.

Plan With Gantt Charts

Manage your product manufacturing across a timeline with our Gantt chart view. With it, you can view your resources to help you track your cost of production to ensure you’re never overspending. You can then link any dependent tasks to avoid bottlenecks in your manufacturing.

Get a Bird’s-Eye View

To keep your production plan on track, you need a high-level view to pinpoint setbacks before or as they occur. Our real-time dashboard collects data and converts it into colorful graphs and charts that give you at-a-glance analytics.

Easily Measure and Report Your Progress

Any operation will have stakeholders who want to be kept in the loop. ProjectManager’s project status reports make it easy to share key data points. They can be generated in a single click, making it simple to generate them before important meetings.

Related Production Planning Content

The production planning process involves many different activities such as estimating the quantity of goods to be produced, the resources needed, the production schedule and much more. That’s why we’ve created dozens of blogs, guides and templates on production management topics. Here are some of them.

• Production vs. Manufacturing
• How to Make a Production Flow Chart for Manufacturing
• Best Production Scheduling Software Rankings
• How to Create a Master Production Schedule (MPS)

Manage every detail of your operation with ProjectManager’s powerful online project management tools. Our suite of tools is trusted by tens of thousands of teams, from NASA to Volvo, to aid them in the planning, scheduling, tracking and reporting on the progress and performance of their production plans. Our software lets you get out from behind your desk and make adjustments on the go. Try it for yourself for free for 30 days!

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What Is Production Planning & Why Is It Important?

Business success often hinges on making the products that customers want in a timely and cost-effective way. Production planning helps companies achieve those goals. It maps out all the processes, resources and steps involved in production, from forecasting demand to determining the raw materials, labor and equipment needed. Production planning helps companies build realistic production schedules, ensure production processes run smoothly and efficiently, and adjust operations when problems occur.

What Is a Production Plan?

A production plan describes in detail how a company’s products and services will be manufactured. It spells out the production targets, required resources, processes and overall schedule. The plan also maps all of the operational steps involved and their dependencies. The goal is to design the most efficient way to make and deliver the company’s products at the desired level of quality. A well-designed production plan can help companies increase output and save money by developing a smoother workflow and reducing waste.

What Is Production Planning?

Production planning involves developing a comprehensive strategy for making the company’s products and services. Initially adopted by large manufacturers, production planning has since become more popular among small and midsize businesses in multiple industries — largely because technology has made it easier to plan and track production processes with less effort. Production planning covers many different aspects of production, from forecasting demand to determining the raw materials, workforce, equipment and steps needed to make the company’s products.

Production Planning vs. Production Scheduling

While production planning provides an overview of what the company plans to do, production scheduling creates a more detailed view of exactly how the company will do it. The production schedule describes when each step in the production plan will occur, as well as the workers, machinery and other specific resources assigned to the job. Production scheduling can be extremely complex, especially when there are many interdependent production steps and the company is making multiple products simultaneously. Production scheduling software (opens in new tab) can help businesses create complex schedules, monitor progress in real time and quickly make adjustments when necessary.

Key Takeaways

• Production planning describes in detail how a company’s products and services will be manufactured.
• A production plan defines the production targets, required resources and overall schedule, together with all the steps involved in production and their dependencies.
• A well-designed production plan helps companies deliver products on time, reduce costs and respond to problems.
• Technology has made it easier for small and midsize companies in multiple industries to use production planning to optimize operations.

Product Planning Explained

Production planning is a broad discipline that involves much more than a focus on manufacturing process efficiency. It is intertwined with nearly every other aspect of the business, including finance, sales, inventory and human resources. Production planning activities include demand forecasting to determine the right mix of products to meet customer needs, as well as selecting the optimal approach to building those products. Production planning also assesses the resources needed to meet production goals and lays out in detail all the operations in the production process. Production plans must include the flexibility to make operational adjustments when problems occur — such as machine breakdowns, staffing shortages and supply-chain problems.

Why Is Production Planning Important?

A well-constructed production plan can help to boost revenue, profit and customer satisfaction, while a poorly designed plan can cause production problems and perhaps even sink the company. Specific benefits of production planning include:

• Knowledge. A production plan provides a framework for understanding the resources and production steps required to meet customer needs. It also helps companies understand the potential problems that may occur during production and how to mitigate them.
• Efficiency. Detailed production planning reduces bottlenecks and helps minimize costs. It also helps ensure the high quality of a product, and it keeps expenses on budget.
• Customer satisfaction. Production planning helps ensure that the company can make and deliver products to customers on time, leading to higher customer satisfaction and a greater likelihood of repeat business.

Types of Production Planning

The design of a product plan depends on the production method that the company uses, as well as other factors, such as product type, equipment capabilities and order size. Here are three of the main types of production planning:

Batch production planning.

Refers to manufacturing identical items in groups rather than one at a time or in a continuous process. For some businesses, batch production can greatly increase efficiency. A bakery creating items for sale the next day might first make a batch of chocolate chip cookies, then move on to oatmeal raisin cookies followed by loaves of semolina bread. A clothing manufacturer making goods for the summer might first set up its cutting and sewing machines to make 500 navy-blue T-shirts, then switch to red fabric and thread to make 400 tank tops. A good production plan for batch processing should look out for potential bottlenecks or delays when switching between batches.

Job- or project-based planning.

Used by many small- and medium-sized businesses, job production planning focuses on the creation of a single item by one person or team. Job-based planning is typically used where the specificity of each client’s requirements means it is difficult to make products in bulk. Many construction businesses use this method. Makers of custom jewelry and dresses are other examples of businesses that may use job production planning.

Flow production planning.

In flow production, also known as continuous production, standardized items are continuously mass-produced on an assembly line. Large manufacturers use this method to create a constant stream of finished goods. During production, each item should move seamlessly from one step along the assembly line to the next. Flow production is most effective at reducing costs and delays when there’s steady demand for the company’s products. Manufacturers can then readily determine their needs for equipment, materials and labor at each stage along the assembly line to help streamline production and avoid delays. The automotive industry and makers of canned foods and drinks are among the companies that use this method.

5 Steps to Make a Production Plan

Production planning is a robust undertaking that starts with forecasting and includes process design and monitoring. Here are five typical production planning steps:

Forecast product demand.

Estimate how much of each product you’ll need to produce over a designated period. Historical data can help with forecasting, but you’ll also need to pay attention to other factors that can affect demand, such as market trends and the economic situation for your customer base. Demand planning software can help companies make more informed decisions about the right amount of product needed to meet demand.

Map out production steps and options.

This step determines the processes, steps and resources needed to produce the required output. At this stage, the company may also examine different options for achieving its production goals, such as outsourcing some stages. The production mapping identifies which steps are interdependent and which can be performed simultaneously. Let’s say the job is to produce 1,000 children’s bicycles. Manufacturing the bicycle frames consists of a series of steps that must happen in sequence — cutting metal tubes, welding and painting — while other activities like assembling wheels can occur in parallel. Do you have all the right equipment? What happens if a machine breaks down? Are your suppliers able to meet your demand?

Choose a plan and schedule production.

Select a production plan after comparing the cost, time required and risks for each option. Sharing the selected plan with all necessary stakeholders typically helps assure a smoother production process since all the stakeholders are aware of what’s needed. Create a detailed production schedule that lays out in detail how the company will execute the plan, including the resources and timing for each step.

Monitor and control.

Once production has begun, you’ll need to track performance and continually compare it against the targets described in the production plan. Careful monitoring helps the company to detect any issues as soon as they pop up, so they can be quickly addressed.

Adjust accordingly.

It’s almost inevitable that production will be affected by events that you can’t plan for or predict. Those events can include changes to client specifications, supply chain lags, equipment failures and worker illness. You may also see ways to improve the production plan after seeing it in action for a while. So it’s vital to keep production plans flexible enough to allow for adjustment when needed. Football coaches often make adjustments to their game strategy at halftime — and the same holds true for production planning.

3 Common Product Planning Mistakes

Being aware of potential pitfalls ahead of time can help companies avoid or mitigate problems once production has started. Here are three of the most common production planning mistakes.

Not anticipating hiccups along the way.

In any complex production process, plans can go awry. Production planning should therefore include risk management strategies, including backup plans companies can rely on in the event of problems. Failing to do so can result in serious problems. For example, if a machine breaks on the line and you didn’t budget for repairs and workforce overtime, the issue may strain the company’s financial resources.

Keeping your distance.

Though production management software can provide real-time visibility into a company’s production status, it’s a good idea to supplement that information with in-person visits to the production line. Those visits can provide valuable insights into how production works in practice — insights that you might not gain if you’re stuck behind a desk.

Failing to maintain equipment.

There’s a tradition in football that the quarterback buys presents for his offensive linemen at the end of each season. Why? Because they protect him and enable him to do his job. Your manufacturing equipment is your company’s offensive line, so don’t neglect it. Tracking usage and paying for regular preventive maintenance helps ensure that your machines can keep your business functioning.

Production Planning KPIs

Key performance indicators (KPIs) are important metrics that help companies track the health of their production processes. By monitoring KPIs and comparing them to target values defined in production plans, businesses can determine whether production is on track and pinpoint problems that need to be addressed. Typical production KPIs include:

This key efficiency metric tracks the percentage of time that production is not occurring during scheduled operating hours. Causes include machine breakdowns, tool adjustments and accidents. Some downtime may be necessary for functions such as machine maintenance, but generally, the less downtime the better.

Setup time.

Also referred to as changeover time, this is the amount of time it takes to switch between jobs. Setup time impacts overall productivity because production is halted during these periods. Production schedules should consider how much time and effort it takes to reconfigure production for each job, including changes to the equipment, raw materials and workforce. Designing production schedules to minimize changeover time can increase efficiency.

Production rate.

In a manufacturing environment, this is typically measured as the number of units produced during a specific period. Comparing the actual production rate for each process with the planned rate can help businesses identify strengths and weaknesses and begin to address problems.

Overall equipment effectiveness (OEE).

This is a measure of overall manufacturing productivity that accounts for quality, performance and availability. The formula for OEE is:

OEE = Quality x performance x availability

Quality is typically measured as the percentage of parts that meet quality standards. Performance is how fast a process is running compared to its maximum speed, which is expressed as a percentage. Availability is the percentage of uptime during a company’s scheduled operating hours. Increasing OEE can be achieved by lowering downtime, reducing waste and maintaining a high production rate.

Rejection rate.

This is the number or percentage of products that failed to pass quality checks. Depending on the nature of the product and the problem, it may be possible to salvage some rejected items by reworking them, while others may need to be scrapped.

On-time orders.

Production delays can be costly both in terms of money and reputation. Generating products on schedule means you’re less likely to need costly expedited shipping or other emergency measures to meet deadlines. And delivering orders on time helps keep customers happy, which means they’re more likely to keep doing business with your company.

Production Planning Tools

Businesses rely on a variety of tools to build production plans and track progress, ranging from visualization tools to sophisticated software that automates many of the steps involved. Typical tools include:

Gantt charts.

A Gantt chart is a detailed visual timeline of all the tasks scheduled for a particular job. More than 100 years since its invention by mechanical engineer Henry Laurence Gantt, this chart remains integral to manufacturing and many other industries. Production planning involves coordinating and scheduling many tasks , and the Gantt chart visually represents when each task will take place and how long it will last. Manually creating and updating Gantt charts to reflect complex, ever-changing production schedules can be a time-consuming and error-prone job, however.

Spreadsheets.

Small companies sometimes start out by tracking simple production plans using spreadsheets. However, for most companies, the inherent complexity of production planning quickly outstrips the capabilities of spreadsheet software.

Production planning software.

Production planning involves a wide range of activities, including forecasting, managing the supply chain, tracking inventory and scheduling jobs. Those activities require information from across the company and beyond. Production planning information is integral to business operations and is used by other groups within the company, including finance. That’s a key reason many companies use enterprise resource planning (ERP) application suites that include production planning software and provide a single solution for managing the entire business.

Manage and Optimize Production With NetSuite

NetSuite cloud-based production management software helps companies maximize manufacturing productivity and minimize cost. NetSuite provides real-time visibility into each aspect of the production process, from inventory tracking and monitoring the production floor to fulfilling orders. Production scheduling capabilities let businesses create and update complex real-time production schedules with minimal effort. Because NetSuite production management software is part of an integrated suite of ERP applications , businesses can share production progress with the entire organization and link production processes to financial reports, inventory management and order management.

Production planning is an important function that can boost profitability and customer satisfaction as well as efficiency. It helps companies match output to demand, optimize production processes and determine how to overcome production problems.

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Production Planning FAQs

What are the 5 steps in production planning.

Here are five typical steps in the production planning process:

• Forecast the short- and long-term demand for your product.
• Map out the various options and processes for manufacturing these goods
• Choose the option that checks as many boxes as possible, and develop a production schedule.
• Monitor production against the plan.
• Adjust the plan where needed. In other words, if it’s broken, fix it.

What are the 3 activities of production planning?

Production planning activities can be divided into three main areas: Develop a production process and strategy; gather the resources needed, from raw materials to machinery and personnel; and select and train the necessary people.

What are the types of production planning?

Three of the main types of production planning are batch planning, job planning and flow or continuous planning . The choice depends on your resources as well as the nature of the product. Batch planning makes the same item in bulk before moving on to another item. Job planning, also called project-based planning, focuses more on custom design and single-item production. Flow production involves a steady stream of mass-produced items moving along the line.

What is the role of production planning?

Production planning is critical to ensure the production process runs smoothly and efficiently and delivers products on time. Planning allows a business to make certain that all necessary preparation is completed before starting production.

Inventory Management

What Is Perishable Inventory? Strategies, Tracking & Free Template

Inventory management is a challenge faced by any business selling a product, but the challenge is particularly acute for businesses dealing in products that expire or quickly lose value over time. By giving special attention…

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• Business Plans

How To Write the Operations Plan Section of the Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Stage of Development Section

Production process section, the bottom line, frequently asked questions (faqs).

The operations plan is the section of your business plan that gives an overview of your workflow, supply chains, and similar aspects of your business. Any key details of how your business physically produces goods or services will be included in this section.

You need an operations plan to help others understand how you'll deliver on your promise to turn a profit. Keep reading to learn what to include in your operations plan.

Key Takeaways

• The operations plan section should include general operational details that help investors understand the physical details of your vision.
• Details in the operations plan include information about any physical plants, equipment, assets, and more.
• The operations plan can also serve as a checklist for startups; it includes a list of everything that must be done to start turning a profit.

In your business plan , the operations plan section describes the physical necessities of your business's operation, such as your physical location, facilities, and equipment. Depending on what kind of business you'll be operating, it may also include information about inventory requirements, suppliers, and a description of the manufacturing process.

Keeping focused on the bottom line will help you organize this part of the business plan.

Think of the operating plan as an outline of the capital and expense requirements your business will need to operate from day to day.

You need to do two things for the reader of your business plan in the operations section: show what you've done so far to get your business off the ground and demonstrate that you understand the manufacturing or delivery process of producing your product or service.

When you're writing this section of the operations plan, start by explaining what you've done to date to get the business operational, then follow up with an explanation of what still needs to be done. The following should be included:

Production Workflow

A high-level, step-by-step description of how your product or service will be made, identifying the problems that may occur in the production process. Follow this with a subsection titled "Risks," which outlines the potential problems that may interfere with the production process and what you're going to do to negate these risks. If any part of the production process can expose employees to hazards, describe how employees will be trained in dealing with safety issues. If hazardous materials will be used, describe how these will be safely stored, handled, and disposed.

Industry Association Memberships

Show your awareness of your industry's local, regional, or national standards and regulations by telling which industry organizations you are already a member of and which ones you plan to join. This is also an opportunity to outline what steps you've taken to comply with the laws and regulations that apply to your industry. 

Supply Chains

An explanation of who your suppliers are and their prices, terms, and conditions. Describe what alternative arrangements you have made or will make if these suppliers let you down.

Quality Control

An explanation of the quality control measures that you've set up or are going to establish. For example, if you intend to pursue some form of quality control certification such as ISO 9000, describe how you will accomplish this.

While you can think of the stage of the development part of the operations plan as an overview, the production process section lays out the details of your business's day-to-day operations. Remember, your goal for writing this business plan section is to demonstrate your understanding of your product or service's manufacturing or delivery process.

When writing this section, you can use the headings below as subheadings and then provide the details in paragraph format. Leave out any topic that does not apply to your particular business.

Do an outline of your business's day-to-day operations, including your hours of operation and the days the business will be open. If the business is seasonal, be sure to say so.

The Physical Plant

Describe the type, site, and location of premises for your business. If applicable, include drawings of the building, copies of lease agreements, and recent real estate appraisals. You need to show how much the land or buildings required for your business operations are worth and tell why they're important to your proposed business.

The same goes for equipment. Besides describing the equipment necessary and how much of it you need, you also need to include its worth and cost and explain any financing arrangements.

Make a list of your assets , such as land, buildings, inventory, furniture, equipment, and vehicles. Include legal descriptions and the worth of each asset.

Special Requirements

If your business has any special requirements, such as water or power needs, ventilation, drainage, etc., provide the details in your operating plan, as well as what you've done to secure the necessary permissions.

State where you're going to get the materials you need to produce your product or service and explain what terms you've negotiated with suppliers.

Explain how long it takes to produce a unit and when you'll be able to start producing your product or service. Include factors that may affect the time frame of production and describe how you'll deal with potential challenges such as rush orders.

Explain how you'll keep  track of inventory .

Feasibility

Describe any product testing, price testing, or prototype testing that you've done on your product or service.

Give details of product cost estimates.

Once you've worked through this business plan section, you'll not only have a detailed operations plan to show your readers, but you'll also have a convenient list of what needs to be done next to make your business a reality. Writing this document gives you a chance to crystalize your business ideas into a clear checklist that you can reference. As you check items off the list, use it to explain your vision to investors, partners, and others within your organization.

What is an operations plan?

An operations plan is one section of a company's business plan. This section conveys the physical requirements for your business's operations, including supply chains, workflow , and quality control processes.

What is the main difference between the operations plan and the financial plan?

The operations plan and financial plan tackle similar issues, in that they seek to explain how the business will turn a profit. The operations plan approaches this issue from a physical perspective, such as property, routes, and locations. The financial plan explains how revenue and expenses will ultimately lead to the business's success.

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• HR & Payroll

Production Planning and Scheduling: The Complete Guide

Has your company expanded from a one-person gig to a large team? You may be in-charge of a busy workshop and want to increase productivity there. Whatever the reason, you'll need a solution to make your production planning and scheduling as efficient as possible.

The overall adequate use of resources has always been a focus of production planning and scheduling. Production planning's main objective is to ensure that the supply chain process moves smoothly. The more smoothly your production and supply chains move, the less money you'll spend and the more you make.

One of the most crucial elements and indicators of the health of your supply chain is the flow. You're on the right track if your production process moves smoothly.

Various possibilities are available today for your growing manufacturing company to locate production planning software. These softwares have been created especially for contemporary manufacturers.

You will learn everything you need to know about using production scheduling and planning to organize your resources in this guide. Continue reading to learn how to enhance production scheduling in your expanding manufacturing company.

The following are the topics covered:

What is Production Planning?

What is production scheduling, difference between production planning and scheduling, importance of production planning and scheduling processes, 4 benefits of using a production schedule, how do you optimize production scheduling, the right production plan for you, key takeaways.

Production planning involves scheduling processes, raw materials, and resources to produce goods for consumers within predetermined time frames. Production scheduling specifies who will conduct the operations and when.

• Production planning determines what and how much work needs to be done. Production planning and scheduling help your manufacturing process run as smoothly as possible.
• It is done by combining your production needs with your available resources in the most cost-effective way.
• It ensures that your orders are processed as quickly, smoothly, and stress-free as possible. Do you think that's just a dream? All your production planning flow requires are a few minor adjustments.

In any case, effective production planning and scheduling are essential. For manufacturers, production planning is crucial since it has an impact on other critical parts of their business, such as

• Capacity Planning
• Supply Chain Management
• Production Lead Time
• Production Scheduling
• Material Requirements Planning

Production Planning Process

Production planning is a key process in any manufacturing organization. It helps to ensure that the right products are produced in the right quantities, at the right times, and with the right resources. The following are the five key steps of the production planning process:

• Calculate product demand

It will provide a general idea of how many products need to be produced at a specific time. A combination of analysis of current market trends and historical production trends is used to create this estimate.

This involves estimating the number of products that must be produced to meet customer demand. This step also involves forecasting future demand and understanding customer needs to ensure the right amount of product is produced.

• Evaluate production alternatives

It entails assessing the available resources and determining how to use them best. It is done in light of anticipated demand estimations.

This includes evaluating different production methods, such as batch production, continuous production, and job shop production, as well as different production locations, such as on-site or off-site production. This step helps to identify the most efficient and cost-effective production alternative.

• Select the most effective solution

After evaluating the different production alternatives, the next step is to select the most effective solution. This involves considering factors such as cost, time, quality, and efficiency. It is important to select the solution that will provide the best results for the organization.

• Monitoring and evaluation

As the plan is implemented, businesses keep an eye on what is occurring. They compare it to what should be happening as per the plan. They then assess how well the two line up.

Once the production plan is in place, it is important to monitor and evaluate its progress. This involves tracking the production plan's progress and ensuring that it meets the organization’s objectives. Additionally, it is important to evaluate the effectiveness of the plan in order to identify areas that need to be improved.

• Adjust plan

This may involve making changes to the production process or adjusting the production schedule in order to accommodate changes in demand or other factors. This step helps to ensure that the production plan remains effective.

Types of Production Planning

There are numerous varieties of production planning that concentrate on different aspects of the production process. Here are a few of them:

• Master Production Schedule (MPS)

These are production schedules for specific commodities that must be manufactured one at a time. They are frequently produced by software and subsequently modified by users.

• Material requirements planning (MRP)

MRP is a system for inventory management, production scheduling, and planning. Raw material availability is guaranteed by MRP, which also maintains internal material and product levels as low as feasible.

MRP also schedules manufacturing and purchase activities. Although software frequently partially automates it, it can also be done by hand.

It is the process of figuring out how well-equipped a company is to handle shifting demands.

• Level Production Planning

Level Production Planning is a type of production planning that focuses on the production of a constant rate of output over a given period of time. This means that the same amount of raw materials and resources are used throughout the production period, resulting in consistent and predictable output.

The goal of this type of planning is to achieve high efficiency and reduce costs by ensuring that resources are used in the most efficient way possible.

• Lean Production Planning

Lean Production Planning is a type of production planning that focuses on minimizing waste and optimizing the use of resources. This type of planning emphasizes the use of small batches and the elimination of overproduction. The goal of lean production planning is to reduce costs, increase efficiency, and improve customer satisfaction.

• Kaizen Production Planning

Kaizen Production Planning is a type of production planning that focuses on continuous improvement and process optimization. This type of planning emphasizes the use of data and feedback to identify areas for improvement and to make changes that will increase efficiency and reduce costs.

• Agile Production Planning

Agile Production Planning is a type of production planning that focuses on making quick and effective decisions. This type of planning emphasizes the use of data and feedback to make decisions quickly and to adapt to changing conditions quickly.

Agile production planning is used to reduce costs, improve efficiency, and increase customer satisfaction.

• Workflow Planning

Workflow planning refers to scheduling a series of tasks to be carried out by a single employee or group of employees. Several planning kinds use the logic of production planning in adjacent or unrelated fields to manufacturing.

For instance, optimizing hiring and talent management processes is a component of human resources planning. Other illustrations include:

• Enterprise resource planning (ERP)

Enterprise resource planning (ERP) is a business process combining primary corporate operations into a single, cohesive system. It is often accompanied by software.

• Sales and operations planning (S&OP)

This procedure helps manufacturers more precisely match their supply with market demand.

Types of Production Planning Methods

The same production plan is only appropriate for some operations because every business is different. You must choose the approach that works best for your manufacturing process. It is to maximize the benefits of project planning. Having stated that, here is a brief introduction to the various production planning methods.

When producing a single product for which a particular production plan is made, the task approach is frequently utilized. This method of production planning can be employed in more extensive manufacturing facilities. It is typically used in smaller enterprises. The work technique is beneficial when a good or service needs precise adjustments.

Batch Production Method

In contrast to individual or continuous production, a batch production is a form of production. Batch production involves producing things in groups. When delivering goods on a vast scale, this strategy is helpful.

Flow Method

By accelerating the production line, the flow method is a demand-based manufacturing strategy. It reduces the length of the production lead time. Based on work orders, the production process begins and ends once all finished goods are produced.

Continuous manufacturing is what is accomplished by employing machinery and minimum human intervention. It is done to reduce waiting time.

Process Method

The process method is essentially an assembly line, which is what most people envision when they think of production. The process method often assembles the finished goods with various types of machinery doing different jobs.

Mass Production Method

The main goal of the mass production method is to produce an endless stream of identical goods. Like the flow method, it reduces production costs by operating on a much larger scale.

When efficiency and uniformity are equally important, "standardized processes" must be used. It ensures that all products have the same appearance.

How to Make a Production Plan

Follow these five steps to ensure that your production plan is as robust as it can be when you set out to construct one.

1. Project/Estimate Product Demand The easiest way to choose which product planning strategy is ideal for your operation is to understand product demand planning. The first step is to understand product demand planning.

Then you may determine which resources are necessary and how they will be utilized during the manufacturing process.

2. Access Inventory

Making an inventory management plan will help you avoid experiencing shortages or letting items go to waste. Accessing inventory involves more than just taking stock. To handle inventory as efficiently as possible, concentrate on the inventory control and management strategies you might use in this stage.

3. Resource Planning

Knowing the specifics of resource planning for the manufacturing process is necessary for a successful production plan. Keep in mind the bare minimum of laborers and supplies needed to complete a task (producing a good or providing a service).

Additionally, think about the equipment and systems necessary for your manufacturing plan.

4. Monitor Production

Keep an eye on how the output stacks up against the production schedule and resource allocation forecasts as production progresses. Throughout the production process, this should be ongoing and documented.

5. Modify the Strategy to Improve Production Efficiency in the future

Reflecting on the knowledge, you obtained in step four and making plans for improving the production plan are the final steps in production planning. It is the final step in production planning.

However, production planning aims to manufacture a good or service. It should also serve as a learning opportunity to improve production plans in the future.

Components of Production Planning

Making a proper production plan requires the following inputs:

• Bill of Materials: The Bill of Materials (BOM) is an important document in production planning, as it provides a detailed list of all the components and parts needed to manufacture a product. It is commonly used to track the cost of materials, labor and overhead used to manufacture the product. The BOM also provides a means of tracking the status of each component, from initial procurement to final assembly.
• Stock Levels: Production planning also requires the tracking of stock levels. This is because having too much stock can lead to expensive storage costs, while too little stock can lead to production delays. By monitoring stock levels, production planners can ensure that the right amount of stock is available at the right time.
• Price of Materials: The price of materials is an important factor in production planning. Knowing the cost of materials helps production planners to accurately estimate the cost of producing a product. Additionally, by regularly comparing the current price of materials with the market price, production planners can make sure that they are getting the best value for their money.
• Lot Sizes: Lot sizes are another important factor in production planning. Lot sizes are the number of items produced in a single production run. Lot sizes are determined based on the demand for the product, the cost of production, and the availability of materials.
• Manufacturing Lead Time: Manufacturing lead time is the amount of time that it takes for a product to be manufactured from start to finish. This includes the amount of time required for the procurement of materials, assembly, testing, and packaging. Knowing the lead time can help production planners accurately estimate the time required for production and plan accordingly.

Assigning various raw materials, resources, or production processes to multiple products is the process of product production scheduling. The goal is to produce goods on schedule while making your production process as effective and economical as possible. It is possible in terms of labor and material costs.

All parts of the supply chain depend on the production schedule. In fact, the supply chain as a whole depends on it for some of the most significant key performance indicators (KPIs) . A few typical KPIs for production schedules are listed below:

• Order management
• Daily performance
• Cost reduction
• Production time
• Production service rate
• Inventory turns

Production Scheduling involves planning out how many units need to be produced and when they should be produced. This includes allocating resources (labor, materials, and equipment) to each component of the production process, as well as determining the sequence in which they should be used. To streamline this process and enhance precision in scheduling, consider incorporating a reliable schedule maker for work that caters to your unique production requirements.

Production Scheduling also entails setting deadlines for each step of the process and monitoring the progress of the project to ensure that all tasks are completed on time. It is essential for ensuring that production costs are kept to a minimum, as well as allowing organizations to meet customer demand in a timely manner.

We will need to establish an acceptable timetable and create a plan for accomplishing our objectives. We will need to develop a proper timetable for the KPIs mentioned above.

Types of Schedules

• Master Schedules

The completion dates for significant production items are specified in this timetable. Each product's production requirements were divided into separate columns in this schedule.

Before entering any order into the master schedule, we always consider resource availability when receiving an order. As it includes information on the product's quantities and delivery schedules. The master schedule is beneficial for in-depth planning.

• Manufacturing Schedule

When the master schedule has been created, the manufacturing schedule will be ready. A manufacturing schedule will then be created.

Here, we give a particular store a set amount of time to produce the goods that must be prepared. As well as the deadline, which should be a day or a week from now.

Types of Scheduling

• Forward Scheduling: This scheduling starts on a fixed date. The last operation comes before the first operation, as well. It is made easier to find the date the final product was completed.

The goal of advanced scheduling is to accomplish mass production at a low cost while also maximizing the usage of the plant's capacity.

• Backward Scheduling: To determine the needed start date and ensure that the finished product is produced by the due date, it starts with a due date that has been established. It works backward from there.
• Chase: This type of scheduling is used when the production process is quite simple and does not require a lot of resources. It is used to plan the production order for each stage, starting from the demand for the finished product and moving forward until the production process is completed.

This type of scheduling is mainly used when the production process is quite simple and does not require a lot of resources.

• Infinite Capacity Planning: This type of scheduling is used when the production process has no limitations in terms of resources. It is used to plan the production order for each stage, starting from the demand for the finished product and moving forward until the production process is completed.

This type of scheduling is mainly used when the production process has no limitations in terms of resources.

• Finite Capacity Planning: This type of scheduling is used when the production process has limited resources. It is used to plan the production order for each stage, starting from the demand for the finished product and moving forward until the production process is completed.

This type of scheduling is mainly used when the production process has limited resources.

• Make-To-Stock: This type of scheduling is used when the production process is used to produce a certain number of products in advance, without any specific customer orders. It is used to plan the production order for each stage, starting from the demand for the finished product and moving forward until the production process is completed.

This type of scheduling is mainly used when the production process is used to produce a certain number of products in advance, without any specific customer orders.

• Make-To-Order: This type of scheduling is used when the production process is used to produce a certain number of products based on specific customer orders. It is used to plan the production order for each stage, starting from the demand for the finished product and moving forward until the production process is completed.

This type of scheduling is mainly used when the production process is used to produce a certain number of products based on specific customer orders.

What Is a Production Schedule Used For?

The production schedule is a flexible and significant document for organizing, predicting, and satisfying demand. It helps you maintain the timeliness and affordability of your operations. It supports you in upholding your obligation to your clients. Let's look more closely at its primary functions.

• Planning: Predicting demand and balancing it with available labor, supplies, and equipment.
• Scheduling Resources: A production schedule is used to plan and schedule resources for the production process. This includes personnel, equipment, materials, and other resources. By scheduling resources, producers can ensure that the production process can be completed efficiently and on time.
• Preventing stock-outs: Planning to maintain output even if supplies are delayed or demand surges due to increased orders.
• Improved efficiency: Increased effectiveness in identifying bottlenecks and seeking out areas for development is essential. It leads to shorter lead times and more fluid demand flows. By tracking the progress of production, producers can identify areas where production can be improved and make adjustments accordingly. This helps to ensure that production is as efficient as possible.
• Tracking Progress: A production schedule is also used to track the progress of production. Producers can monitor how the production is progressing, identify problems, and make adjustments as needed. This helps to keep the production on track and ensure that it is completed on time and within budget.
• Improved communication: Communication has been improved because there is now a single document that contains information on every step of the production workflow.

Overall, a production schedule is an important tool used to plan, organize, and track the progress of a production process. It helps to ensure that the production process is completed efficiently and on time, and that all resources are allocated correctly.

Components of Production Scheduling

The following steps are involved in production scheduling:

• Identifying and assigning the correct number of employees;
• Identifying and allocating suitable raw materials;
• Identifying and allocating the right machinery and equipment, and
• Synchronizing all the resources to establish priorities and meet customer needs.

As you can see, it is crucial to recognize that resources are limited at both stages. Combining the scarce resources in the best possible method will enable the creation of the finished goods.

Production scheduling focuses on how and when something will be manufactured. Production planning outlines the potential dates when something could be made generally.

Factors to Consider While Scheduling Production

Production scheduling is an essential element of production planning and is a key factor in determining how well the production process runs. It is important to consider many factors when scheduling production, such as customer demand, resource availability, and cost considerations.

Below are some key factors to consider when scheduling production.

• Raw Material Availability: One of the most important factors to consider while scheduling production is the availability of raw materials. This includes the required components' availability, the materials' quality, and their cost. The availability of materials should be checked in terms of quantity and time to ensure that production can be completed within the desired timeline.
• Production Capacity: The plant's production capacity should also be considered when scheduling production. This includes the number of machines, the work hours available, and the number of workers available. Having enough capacity will ensure that the production is completed according to the desired timeline and that the quality of the products is not compromised.
• Customer Demand: Customer demand is another important factor to consider when scheduling production. Knowing the demand for the product, the number of orders and the time of delivery will help to determine the timeline for the completion of the production. This will help to ensure that production is completed on time and that customer expectations are met.
• Quality Assurance: Quality assurance is another important factor to consider while scheduling production. Quality assurance should be taken into consideration when determining the timeline for production and should be monitored throughout the entire process. This will help to ensure that the products are up to the desired standard and that the customer is satisfied with the final product.
• Labour Efficiency: Labour efficiency is also an important factor to consider when scheduling production. The number of workers available and their skill levels should be taken into account when determining the timeline for production. Having enough skilled workers will ensure that the production is completed within the desired timeframe and that the desired quality is maintained.
• Cost Control: Cost control is another essential factor to consider when scheduling production. This includes the cost of raw materials, labor, energy, and other resources used in the production process. It is important to keep costs in check in order to ensure that production is completed within the desired timeline and that the desired quality is maintained.

Stages of Production Scheduling

The number of orders to be filled, the availability of employees and resources, and the production schedule are all considered. In essence, you want to strike a balance between the demands of your clients and the resources at your disposal. The following seven steps are used to design and carry out the production schedule:

Static and dynamic planning are both options. Production planning can be divided into two categories: static planning and dynamic planning.

Static Planning: The premise behind static production planning is that a process's phases can be specified and won't change. Retail clothing is one instance of this when manufacturing volumes are chosen up to a year in advance.

Dynamic Planning: With this alternative approach to production planning, it is assumed that process stages will vary. As a result, plans are made when demand is observed. A floral store may have a few arrangements on display and available for purchase.

The main emphasis is on making custom arrangements once an order is received. It is an example of dynamic planning in action. Dynamic assume anything could change. Static believes nothing will change during the production process. Both include gathering and examining the available resources. These include financial plans, schedules, and staffing levels.

Manufacturing production planning ensures you have enough labor, raw materials, and other resources to produce completed goods on schedule. It is an important stage in the planning and management of production. Complete production planning necessitates the precise monitoring of the following:

Raw materials

• Team members
• Workstations

Knowing numbers and measurements is insufficient. You must comprehend how each step of your manufacturing process interacts with one another and functions best as a whole.

The route raw materials take to become final goods is called routing. Production routing should pinpoint the manufacturing process steps that are economical and effective.

The manufacturing pathway outlines the process from procuring raw materials to creating a final good. If everything is done correctly, you can determine your item's stage and the machine, tool, or work center it needs to go to next.

3. Scheduling

This is the process of determining (with time and date) when each step must be finished to fill a manufacturing order on schedule. You can build a variety of schedules throughout this procedure, including

• Master schedule: master production scheduling considers resources, routing procedures, and personnel.
• Operations or Manufacturing schedule: The manufacturing or operations schedule covers the routing phases.
• Scheduling for retail operations: For the retail industry, this refers to product routing procedures. Products are different because they are produced to be placed on a shelf or in a queue for e-commerce rather than delivered directly to the customer.

You have "the knowledge" — the recipe for everything your company makes — at your disposal. So you don't need to estimate or guess when a sizeable order will arrive. This recipe is a critical component of your master production schedule (MPS) and is included in your bill of materials (BOM).

4. Communicating

Make sure everyone involved knows the production timeline and understands it.

5. Dispatching

Dispatching involves putting the procedures that schedulers have created into action. Production schedulers ensure all resources are on hand and prepared to start production. They also give directions to production team members. It is so that they know their specific responsibilities within the production schedule.

6. Execution

Realizing the plans of the schedule is the last phase in the production scheduling process. Schedulers ensure the following:

• Every process runs smoothly.
• The production is completed by the deadline.
• Every consumer gets their order quickly and effectively.

7. Maintenance

Production schedulers may need to make changes to the plan due to changes that arise during the production process. These changes have an impact on the initial schedule. Production managers may ensure the plan is always current by keeping an eye on the schedule and revising it as necessary.

To ensure that all team members know the revised expectations and strategy, they must distribute the updated schedule to everyone involved.

An effective calendar necessitates several components, as we've seen above, and it can occasionally feel daunting to know where to begin. We won't abandon you in the cold; learn about our go-to method for controlling production scheduling.

The two scheduling procedures—production planning and detailed scheduling—are frequently complementary, but businesses can only employ one in some circumstances. The decision is mainly based on the type of production. Check out how the two processes differ from one another.

• The main distinction is that scheduling transforms orders planned by the MRP into fixed-planned orders with the MPS.
• These are converted into work orders once they enter the production time window or within the cumulative lead time.
• At the same time, production planning works with orders planned by the MRP and fixed orders designed by the MPS.
• The MRP can plan orders outside the cumulative lead time window.

Planning Horizon

The planning horizon is a term used in the manufacturing sector. It is a time in the future (often a business year) during which production-supporting departments arrange production activities. The planning horizon is used to decide how much material is required. Planning scopes are separated into periods where specific actions occur:

• Execution window: the number of days or weeks during which work orders are issued as per the production schedule;
• Scheduling window: the cumulative lead time established minus the execution interval.
• Schedule window: all days/weeks outside the cumulative lead-time window.

Planning focuses on the tasks and how we must complete them. Compared to scheduling, which deals with who will carry out the functions and when they will be completed.

Time Fences

There are various time fences kinds, and they vary depending on the organization and the ERP system being used. The demand time fence and the planning time fence are the two main ones.

• Only customer orders are taken into account during this period. That is when the forecast is no longer considered in the calculations of total demand and predicted inventory.
• Beyond this time frame, depending on the consumption forecasting method selected, the total demand will be made up of both actual orders and forecasts.
• Due to the planning time fence, changes to the timetable are not permitted during MRP regeneration. It is done without determining if the change is feasible and getting the support of executive decision-makers.
• In fact, altering plans during this time can cost the business money. It may result in delays or shortages in customer shipments, disrupt the supply of raw materials, and amplify a domino effect throughout the entire supply chain.
• Stabilizing production loads and ensuring uninterrupted product flow into and out of manufacturing enterprises' facilities are two of their top priorities.
• A solid demand management strategy, a well-balanced production plan, competent schedulers, a statistically calculated security stock, and buffer/kanban are all necessary.

Even though the term "production planning and scheduling" can be a bit vague. It is important to remember that the main objective is the effective use of resources. This phrase refers to all facets of the business, from employee activities to product deliveries.

This idea is primarily applied in manufacturing settings. Many service-oriented organizations use different production planning strategies.

Problems inevitably arise if your order fulfillment process needs to be addressed. Small inefficiencies might be apparent later. But if you let them go on, the problem will become significant.

Your production process becomes congested as a result of this. Bottlenecks are areas of your production line that move slowly. They may seriously disrupt the way your production process operates. These problems impact your entire company:

• Customers will become irate if orders are delayed.
• Crew members will experience tension and demotivation as they struggle to keep up.

A production manager needs to be effective in identifying and treating the reasons for bottlenecks. These are resources and time that could be used in other ways. After that, precautions must be taken to ensure that nothing similar happens again.

• Using production planning tools, you may simplify this process by breaking it down into manageable steps.
• Finding methods to optimize the production flow saves time for operation managers. You can maintain control over your management at the floor level. Some people believe that you can skip management or gloss over strategy.
• Production scheduling is one of the most challenging yet crucial aspects of manufacturing. There will be delays if any aspect of your work needs to be fixed.

Making sure there are no finished goods or dissatisfied consumers. It is what manufacturing process optimization entails. A solid production strategy typically includes the following:

• Using the most logical and simple manufacturing process possible.
• Planning and foreseeing circumstances such as excessive demand, shortages, and bottlenecks.
• Finding areas of the production chain that are inefficient.
• Choosing the best strategy for delivering orders on time.

A production schedule is a document that establishes a timeline and workflow for the production process. It helps to ensure the production process runs smoothly and efficiently, and it can be used to manage resources, personnel, and costs. Here are four key benefits of using a production schedule.

• Improved Efficiency: A production schedule can help to maximize the efficiency of the production process. It can be used to identify bottlenecks in the process, manage resources, and optimize workflow. By utilizing a production schedule, production times can be minimized and production output can be maximized.
• Reduced Costs: A production schedule can help to reduce costs associated with the production process. It can be used to identify areas where costs can be reduced and to ensure that resources are being used efficiently.
• Increased Productivity: A production schedule can help to increase the productivity of the production process. By scheduling tasks in a logical order, it can help to ensure that tasks are completed in a timely manner, and it can help to reduce the amount of time wasted on non-essential tasks.
• Improved Communication: A production schedule can help to improve communication between production personnel. By providing a clear timeline and workflow, everyone involved in the production process can be kept informed of the progress of the project. This can help to ensure that tasks are being completed in a timely manner and can help to reduce the potential for misunderstandings.

Demand planning, supply planning, and the shifting demands of your consumers will all benefit from your production scheduling. Then you can start to plan your production schedule. It should give you a better sense of how work will fluctuate and a structure to fall back on when things don't go according to plan. Here is a list of what your production schedule accomplishes:

• It lets HR know how many employees you'll need at any given time.
• It provides a list of your goods so that you always know what you have and where to restock them.
• It will help you navigate risks and stop problems from halting production.
• Knowing how much raw material you have on hand, how long production will take, and how much you'll need helps you avoid stock-outs.

There are several methods for streamlining the production scheduling process. Yet, Agile scheduling is the best. Consider how the shop floor may take control of manufacturing operations when things inevitably go wrong. Rather than imposing due deadlines on projects instead of forcing them. A flexible production schedule can be created as follows:

• Create a dynamic timetable: When something goes wrong, you must be ready to react quickly. It requires allocating resources, calling in reinforcements, and assessing worker capability.
• Manage the work-in-progress (WIP) that is being done: If everything is WIP, nothing is a priority. Use the WIP label only for tasks that need to be finished immediately.
• Place on-time delivery as a higher priority than setting due dates for tasks: Your manufacturing schedule might give tomorrow's order deadline priority. However, the order won't arrive by the deadline in five days if nothing is done today. You can give the latter more priority using a dynamic schedule.
• Use project management tools: You can use a Gantt chart to make your timetable utilizing a project management application. It essentially functions as a virtual diagram that aids work and resource scheduling across a timeline. Individuals can submit their data as the project develops.

The chart automatically changes in real time, so everyone is simultaneously on the same page. The team can change it if raw material delays or staff absences occur. The new data will be transformed into an updated schedule with revised timings, costs, and other metrics. No more manual changes or emails with updates—the entire team operates as smoothly as possible.

With the appropriate planning and scheduling tools, it is possible to create a dynamic timetable and workflow. It should enable you to

• Meet demand and plan for change.
• Avoid downtime in your workshop.
• Significantly lessen scheduling mistakes.
• Create precise, realistic deadlines.
• Reduce the price of moving and storing inventory.
• Identify inefficiencies that can result in production bottlenecks.
• Ships goods promptly and delivers them to clients.

While most technologies bind you to a single deadline, some offer the flexible assistance an operations team needs. It is essential to manage a production schedule at peak performance.

Planning your production is essential for any manufacturing or handicraft enterprise. A precise and regulated flow is required to transform even simple products from raw materials into high-quality finished goods. If this is done, the quality of your items will undoubtedly improve.

Your standardized procedures are sure to be forgotten without a robust approach. So what are the main things to consider while scheduling product production?

Team management

Effective team use. Your company's most significant resource is its workforce. They are crucial to the improvement of the manufacturing process.

• Knowing your employees' talents and limitations should be a priority. You can assign each team member the duties and equipment best fitting them.
• You have the additional capacity to make up for the temporary loss if someone gets sick or takes a vacation.
• You can maximize the performance of both your employees and equipment by using effective production planning.
• Each team member is aware of the tasks they have been given and the results they should anticipate producing. Monitoring this process enables you to compensate for shortcomings and meet strong demand.

Full capacity

Is your workshop consistently producing at full capacity? Things can come to a complete stop with just a tiny bump. A solid rule of thumb is to always calculate your capacity planning so that your maximum production is more significant than what you are now producing.

You will be happy you were prepared if you get one or two abnormally large orders. The same is true for your crew, who has all the tools necessary to finish their work on schedule.

Production planning delays frequently require paying workers and equipment to sit on standby. MRP can now be integrated into industrial process planning software. It implies that you can always have the necessary raw materials on hand. Production will never need to be delayed due to stock-outs or delayed supply orders.

Due to a lack of supplies, priority dates can be completed on time. It's unnecessary to walk on extra raw materials on your shop floor constantly. If done correctly, storing and shipping costs will stay the same because of an excess product. Additionally, each team member always has something to do as they utilize your resources.

Workshop logistics

Each step in your manufacturing process's logistical flow needs to be considered. You might not think this is significant, but you would be wrong. As a result of one weak link being placed on the incorrect stage, numerous production lines have come to a complete stop. Efficiency can suffer if people and machinery are pushed into inappropriate spaces. Even basic sense can sometimes be detrimental to your flow.

Determining the flow of materials, resources, people, and supplies on your shop floor requires rigorous investigation. A design or arrangement might be more effective for your company. Sometimes a simple adjustment to your production plan might have a significant impact.

Problem-solving

Your company loses money on each failed attempt when you solve problems via trial and error. A temporary fix is to over-order or overproduce, as this results in additional expenses or employee stress.

Get to the bottom of a problem by tracking your flow and identifying production schedule problems. Identify production schedule problems with effective production planning software.

Learn about your manufacturing techniques.

You can manage your manufacturing methodically and quickly resolve production challenges by understanding production planning and scheduling.

Effectively manage and track everything, and everything should go well. Effective production scheduling makes it simpler to follow the rules. It is laid out clearly for your entire team and is accessible around the clock.

How Can Scaling Firms Achieve Optimal Production Efficiency?

Finding the appropriate instruments is a simple solution. It requires sound management and the right software for production planning and scheduling. If you do this well, the order fulfillment process will function as it should.

• Determine the Production Capacity: The first step in achieving optimal production efficiency is to determine the capacity of the production facility. This means understanding the maximum amount of products that the firm can produce in a given period of time.
• Evaluate Current Production Processes: The second step is to evaluate the current production processes and identify areas for improvement. This includes examining the efficiency of the equipment, labor, materials, and other resources being used in the production process.
• Implement Lean Manufacturing Techniques: Lean manufacturing techniques can help firms achieve optimal production efficiency by reducing waste and improving efficiency. This includes streamlining processes and eliminating unnecessary steps.
• Invest in Quality Control: Quality control is essential for achieving optimal production efficiency. Investing in quality control measures can help identify and address any problems before they become serious.
• Utilize Automation: Automation can help reduce labor costs and improve efficiency. Automation can also help reduce errors and improve quality control.
• Monitor Production Performance: Regularly monitoring production performance can help ensure that the firm is achieving optimal production efficiency. Implementing a performance tracking system can help identify areas of improvement.
• Take Advantage of Technology: Technology can help firms achieve optimal production efficiency. Investing in the right technology can help streamline processes and improve accuracy.
• Utilize Data Analysis: Analyzing data can help identify areas of improvement and help the firm make better decisions. Utilizing data analysis tools can help firms achieve optimal production efficiency.
• Invest in Training: Investing in training can help ensure that employees are properly trained and knowledgeable about the production process. This can help reduce errors and improve efficiency.
• Invest in Research and Development: Investing in research and development can help firms identify new technologies and processes to improve production efficiency. Research and development can also help firms stay ahead of the competition.

Why Do Some Scheduling Projects Fail?

A project with thorough scheduling can fail for two primary reasons. One is about the systems' underlying technologies, and the other is about the input data.

System technology for scheduling

The first justification has to do with the technology of the current scheduling system. Most planning systems in use today are built on operations research methods.

• It is sufficient to click the "execute" command, wait, and find the best course of action.
• When the operations research-based scheduler is used, it produces a production plan near the ideal one. However, you must be careful because this only holds true for a short period.
• These results degrade rapidly with time, the introduction of new items and processes, variations in mix and demand, and so on. As a result of the numerous hazards involved with this tool, planners are eventually forced to return to Excel.
• The quality of the created plan needs to be better. It is because operations research-based schedulers must be modeled and optimized for the particular scenario. It is in order to provide a high-quality result while preserving an acceptable computing time.
• The model needs to be adjusted whenever anything in the production environment changes. It is impossible to predict when a system will need to be tuned. A qualified operations researcher must work with the system to make the necessary adjustments.

As a result, there is a systematic delay in realigning the model with production because the plan cannot be issued after a few days or weeks. It explains why there are few operations research-based programmers used for discrete production.

Schedule input

The scheduler uses the aim established by planning to guide and optimize the plan. This issue relates to the plan received and communicated by the scheduler. The scheduler cannot produce a viable program if the goals are impractical, unclear, or lacking in resources.

In fact, the scheduler plans with a "blind horizon" if the plan is not connected with the detailed schedule. The plan needs to be more balanced over the medium-long period. The strategy, in this instance, is repeatedly modified the following day, changing virtually all together.

Excel usage

Many manufacturers have had to make do with spreadsheets due to a lack of or the high cost of production planning software for businesses. The three primary issues with this strategy are as follows:

• Spreadsheets are slow; Excel may be faster than using a pen and paper, but it still requires too much work.
• Spreadsheets are prone to errors. It can result in confusion, production delays, and issues that disrupt the company.
• Spreadsheets do not automatically update; they are static. The failure to convey changes, may cause delays.
• Excel is the only alternative available to many contemporary producers. They don't perceive any other options. It is comprehensible.

Most manufacturers do not require the massive Gantt charts and flow diagrams found in business applications. Excel, a program that can be purchased, appears like a simple and quick solution. However, it needs more power to use production management well.

Production planning varies depending on the type of production method being used. Such as single-item manufacturing, batch production, mass production, continuous production, etc. Creating a production plan for a predetermined time frame is known as the planning horizon.

The planning horizon is short-term, medium-term, long-term, etc. A successful planning system will do the following to generate a comprehensive and adaptable production plan:

• Choose the actual work to begin in the manufacturing facility and schedule it;
• Match the required level of production to the available resources;
• Determine the necessary product mix and factory load to meet customer expectations.

Accurately estimating the productive potential of the resources at hand is a crucial component of production planning.

• The availability of raw materials, the availability of resources, and knowledge of future demand should constantly be considered during production planning.
• Plans for production must also be adaptable and quick to adjust to meet the demands of the industry and the markets.
• Digital production planning solutions are rarely separate systems, however, they can be.
• To better oversee order execution and maintain ongoing alignment with customer demand and sales. They are frequently integrated with ERP and Manufacturing Execution Systems (MES).

Production Planning Best Practices

No matter what kind of goods or services are produced, several tried-and-true best practices position your business for success. Be sure to have these two in mind while drafting a production strategy.

• Make Reliable Predictions

Developing a thorough production strategy is possible if you correctly estimate your good or service demand. Demand forecasting is never constant. You must consider past purchasing patterns, population shifts, resource availability, and other factors. The basis for expert production planning is these projections for demand planning.

• Identify Resources Needed

Before production planning can begin, businesses must have a clear understanding of the resources that will be needed. This includes both human and material resources, and will vary depending on the production process. Companies should have a list of all the resources they need, such as machinery, equipment, personnel, and supplies, as well as an estimate of the cost required to acquire them.

• Establish Goals

It’s important to set clear and achievable goals when planning production. Companies should identify specific objectives and performance metrics that will help them measure their progress and guide their decision-making. This includes setting targets for output, quality, cost, and delivery times.

• Analyze Processes

Companies should take the time to analyze their production processes to identify any areas that need improvement. This includes looking for potential bottlenecks and inefficiencies and deciding how to address them. They should also look for opportunities to streamline processes and reduce costs.

• Monitor Performance

Once production planning is complete, companies should monitor their performance to ensure they are meeting their goals. This includes tracking output, quality, cost, and delivery times and making adjustments if needed. This will help ensure that the production process is running smoothly and that goals are being achieved.

• Know Your Capacity

Knowing your operation's total capacity—the most goods or services it can provide at any given time—is the first step in capacity planning. The only method to calculate how much of each resource you will need to produce X number of items is in this way. The planning of your production is equivalent to shooting a blind shot when you don't know the manufacturing capacity.

• Organize with Gantt charts

Utilize our Gantt chart view to plan and manage the production of your products across time. To make sure you're never overspending, you can monitor your resources (like raw materials) tracked by cost with it. Then, you can connect any related tasks to prevent manufacturing bottlenecks.

What Is Production Scheduling Software?

You may create and maintain your production schedule using software that is specifically designed for that purpose.

• Production scheduling software is a type of software used to optimize and manage the production process. It is an important tool for production managers to manage resources, production orders and staff in the most efficient way possible.
• Production scheduling software can be used to plan and manage the production process from start to finish. It can be used to track the production of each product and also to manage the number of parts and materials required for each product.
• The software can also be used to track the cost of production, analyze production efficiency and identify areas for improvement.

The best of the lot, also known as advanced planning and scheduling (APS) software, can interface with your enterprise resource planning (ERP) or manufacturing resource planning (MRP) program. It means that data is automatically updated throughout all tools.

How Can Deskera Help You?

As a manufacturer, you must keep track of your inventory stock. The condition of your inventory has a direct impact on production planning. It also has a direct impact on people and machinery use and capacity utilization.

Deskera MRP is the one tool that lets you do all of the above. With Deskera, you can:

• Control production schedules
• Compile a Bill of Materials
• Produce thorough reports
• Make your dashboard

Deskera ERP is a complete solution that allows you to manage suppliers and track supply chain activity in real-time. It also allows you to streamline a range of other company functions.

Deskera Books allows you to manage your accounts and finances better. It helps maintain good accounting standards by automating billing, invoicing, and payment processing tasks.

Deskera CRM is a powerful tool that organizes your sales and helps you close deals rapidly. It enables you to perform crucial tasks like lead generation via email and gives you a comprehensive view of your sales funnel.

Deskera People is a straightforward application for centralizing your human resource management activities. Not only does the technology expedite payroll processing, but it also helps you to handle all other operations such as overtime, benefits, bonuses, training programs, and much more.‌‌

It is crucial to note that a well-organized manufacturing company can only function with both production planning and production scheduling. The logical first stage in every production process is production planning. Production scheduling is the more in-depth extension of that.

These procedures make it feasible to produce precise production schedules. It allows for effective production control. The statistics can be used to optimize both processes further. Production activity will ultimately deliver the actual volumes and results.

A variety of persons and duties are involved in production scheduling, making it a difficult process. Then there are factors like the unpredictable nature of supply and demand, the transportation of resources, and the intricate production process. All of which have the potential to ruin your previously thought-out plan.

The entire process could come to a standstill if one of those objects deviates from its intended course. Dynamic production schedules are crucial for this reason.

• Production planning's function is to use the business's resources to keep the production flow steady. By doing this, production is maximized by lowering downtime and mitigating bottlenecks.
• When planning dynamically, it is assumed that the order of the phases in the process will alter. Materials must therefore be prepared, but production cannot begin until the demand has been established.
• Scheduling is the process of producing items from parts or raw materials using the defined planning level. It must meet the demand set at the planning level and is time-based.
• Master production schedules are used to define product timelines at the highest level. Sub-schedules for sub-assemblies or mixes and blends may be department-specific.
• The process of assigning the order of tasks to be completed next from a subset of tasks in the production queue is known as dispatching. Making decisions for immediate action is done through dispatching.
• To guarantee that all operations are completed correctly and in the order, they are supposed to be produced. Production scheduling must rely on proper execution.
• The process of creating your production strategy could reveal waste sources. To reduce waste, speed up processes, and enhance deliveries and costs. Operational efficiency and value-added manufacturing concepts can be applied.

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Operations Plan

• Lesson Materials Operations Plan Worksheet
• Completion time About 40 minutes

The operations section of your business plan is where you explain – in detail – you company's objectives, goals, procedures, and timeline. An operations plan is helpful for investors, but it's also helpful for you and employees because it pushes you to think about tactics and deadlines.

In the previous course, you outlined your company's strategic plan, which answers questions about your business mission. An operational plan outlines the steps you'll take to complete your business mission.

Your operations plan should be able to answer the following:

• Who – The personnel or departments who are in charge of completing specific tasks.
• What – A description of what each department is responsible for.
• Where – The information on where daily operations will be taking place.
• When –The deadlines for when the tasks and goals are to be completed.
• How much – The cost amount each department needs to complete their tasks.

In this session, we explain each item to include in your operations plan.

Goals and Objectives

The key to an operations plan is having a clear objective and goal everyone is focused on completing. In this section of your plan, you'll clearly state what your company's operational objective is.

Your operational objective is different than your company's overall objective. In Course One , you fleshed out what your strategic objective was. Your operational objective explains how you intend to complete your strategic objective.

In order to create an efficient operational objective, think SMART:

• Specific – Be clear on what you want employees to achieve.
• Measurable – Be able to quantify the goal in order to track progress.
• Attainable & Realistic – It's great to be ambitious but make sure you aren't setting your team up for failure. Create a goal that everyone is motivated to complete with the resources available.
• Timely – Provide a deadline so everyone has a date they are working towards.

Different departments will have different operational objectives. However, each department objective should help the company reach the main objective. In addition, operational objectives change; the objectives aren't intended to be permanents or long term. The timeline should be scheduled with your company's long-term goals in mind.

Let's look at the following example for a local pizza business objective:

• Strategic objective : To deliver pizza all over Eastern Massachusetts.
• Technology department operational objective : To create a mobile app by January 2017 to offer a better user experience.
• Marketing department operational objective : To increase website visitors by 50% by January 2017 by advertising on radio, top local food websites, and print ads.
• Sales department operational objective : To increase delivery sales by 30%, by targeting 3 of Massachusetts's largest counties.

Sales department operational objective: To increase delivery sales by 30%, by targeting 3 of Massachusetts's largest counties.

Production Process

After you create your objectives, you have to think strategically on how you're going to meet them. In order to do this, each department (or team) needs to have all the necessary resources for the production process.

Resources you should think about include the following:

• Suppliers – do you have a supplier (or more) to help you produce your product?
• Technology team: app developing software
• Marketing team: software licenses for website analytical tools
• Sales team: headsets, phone systems or virtual phone system technology
• Cost – what is the budget for each department?

In addition to the production process, you'll also need to describe in detail your operating process. This will demonstrate to investors that you know exactly how you want your business to run on a day-to-day basis.

Items to address include:

• Location – where are employees working? Will you need additional facilities?
• Work hours – will employees have a set schedule or flexible work schedule?
• Personnel – who is in charge of making sure department tasks are completed?

Creating a timeline with milestones is important for your new business. It keeps everyone focused and is a good tracking method for efficiency. For instance, if milestones aren’t being met, you'll know that it's time to re-evaluate your production process or consider new hires.

Below are common milestones new businesses should plan for.

When you completed your Management Plan Worksheet in the previous course, you jotted down which key hires you needed right away and which could wait. Make sure you have a good idea on when you would like those key hires to happen; whether it’s after your company hits a certain revenue amount or once a certain project takes off.

Production Milestones

Production milestones keep business on track. These milestones act as "checkpoints" for your overall department objectives. For instance, if you want to create a new app by the end of the year, product milestones you outline might include a beta roll out, testing, and various version releases.

Other product milestones to keep in mind:

• Design phase
• Product prototype phase
• Product launch
• Version release

Market Milestones

Market milestones are important for tracking efficiency and understanding whether your operations plan is working. For instance, a possible market milestone could be reaching a certain amount of clients or customers after a new product or service is released.

A few other market milestones to consider:

• Gain a certain amount of users/clients by a certain time
• Signing partnerships
• Running a competitive analysis
• Performing a price change evaluation

Financial Milestones

Financial milestones are important for tracking business performance. It's likely that a board of directors or investors will work with you on creating financial milestones. In addition, in startups, it's common that financial milestones are calculated for 12 months.

Typical financial milestones include:

• Funding events
• Revenue and profit goals
• Transaction goals

In summary, your operations plan gives you the chance to show investors you know how you want your business to run. You know who you want to hire, where you want to work, and when you expect projects to be completed.

Download the attached worksheet and start putting your timelines and milestones together on paper.

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Production Planning: How to Create The Ideal Production Plan

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Supply chains have grown more complex over time. There’s no end to all of the different challenges that warehouse managers face from manufacturing in-house and maintaining multiple locations.

Production planning is one beneficial way of getting ahead of the rush and having a good understanding of your supply chain management and strength.

Waiting for a rush of orders to disrupt your warehouse flow should never be an option. Use these production planning tips to improve your warehouse planning.

How Does Production Planning Work?

Production planning is the process of efficiently coordinating resources, activities, and processes in manufacturing to meet customer demand. It begins with demand forecasting and aligns production with sales plans through sales and operations planning (S&OP). The plan considers resource availability, schedules production tasks, manages inventory, and incorporates quality control measures.  Capacity planning ensures production aligns with manufacturing capabilities, while risk management addresses potential disruptions. Continuous monitoring allows for real-time adjustments, and the process fosters continuous improvement. Production planning aims to optimize production efficiency, cost-effectiveness, and customer satisfaction, making it a vital aspect of supply chain management.

Benefits of Good Production Planning

There are a few key benefits that come with good production planning.

• Improved customer service : When you can accurately forecast production needs, you can better meet customer demand and avoid stockouts.
• Increased production efficiency : A well-planned master production schedule prevents bottlenecks and allows for a smooth workflow through the warehouse.
• Reduced production costs : A good production planner will optimize the production process, reducing waste and ensuring that resources are used in the most efficient way possible.

Key Methods of Productions Planning

One of the most important production planning tips is to communicate your production plan to all parties involved.

Your production planning team should work closely with purchasing, operations, quality contro l, and sales teams to create an effective production schedule.

Ongoing communication about changes or disruptions within the supply chain is critical for production planning.

Specific to manufacturing a single product, the job method production planning is a production-oriented plan that uses routings to define the sequence of operations and tasks required to manufacture a product.

The job method production plan starts with the finished goods and works backward, defining each operation and task needed to produce the final product.

This type of production planning is common in batch and repetitive manufacturing environments with single products and smaller warehouses.

Batch Production Method

Batch production refers to individual products produced in batches or groups specific to a single product. In this type of production, products are made to order and typically in varying quantities.

Operations within a batch production environment will generally have some common characteristics:

• The same product is produced over and over again
• Operations are usually done sequentially
• There is often a lot of setup time required between each batch

Flow Method

This method is based on the continuous production of large quantities of one or more products. Flow production refers to the continual production flow and uses assembly lines, conveyors, and other automation tools. Systems are closely monitored using an OEE calculator and similar tools to ensure operations run efficiently.

Flow production typically requires less setup time than batch production methods because there is no need for multiple setups between different production runs.

Process Method

The production planning process is closely aligned with the production scheduling of jobs. Production planners determine which steps come after, how they should be processed, and the production rate.

Production planners work to determine when each step will be processed and how many staff are needed for each step in production scheduling.

This method is common in businesses with a high mix of products and frequent changes to the production schedule.

Mass Production Method

A production planning approach that uses standard routings to produce products in large quantities is known as mass production.

This type of production planning is common in businesses with low product variety and high demand.

In mass production, the goal is to produce as many product units as possible while maintaining quality standards.

How to Choose the Best Production Plan

Most obviously, the type of product you’re producing and the most appropriate production process will impact the production planning method you choose.

Here are some factors to consider as you determine what production plan is best for you.

The Level of Demand

One key question to ask yourself when choosing the right production plan is whether or not your products experience a high volume of orders. Flow production may be the best option to maintain production levels if products are constantly in demand.

The Number of SKUs That Will be Produced

The more unique products you produce, the less likely job or batch production planning will be effective. In these cases, process or mass production methods are better suited for producing large quantities of products.

How Many Steps to Production Are There?

Another important factor to consider when choosing a production plan is whether or not there are multiple production steps required for each product. If so, you’ll want to know if the production processes can be performed simultaneously or sequentially. The decision on how to produce your SKUs will depend heavily on this information.

The Level of Variability in the Production Process

If production processes are highly variable, it can be difficult to use batch production planning. In this case, flow production is often a more effective option because it allows for greater flexibility and faster changes to production schedules.

The Skill Level of Your Workforce

If your workforce has limited production skills or production is performed by untrained workers, your planning will be different than if you’re working with a skilled labor force. Many companies find that process production planning is a good option because it allows for better control of production lines and minimizes the need for highly skilled labor to perform complex steps.

Steps to Creating Your Production Plan

Now that you have a better understanding of the different production planning methods and how you’ll choose the right method for you, it’s time to create your own production plan.

The following steps will help you develop a production plan that meets the specific needs of your business.

1) Gather Estimates and Forecasts of Product Demands

The first step in production planning is to gather data on estimated product demand. This information can come from sales forecasts, customer surveys, or other market research sources.

Once you have an idea of the level of demand for your products, you can begin to plan production around these estimates.

2) Assess Current Inventory Levels

Inventory data is also essential for production planning. You need to know what inventory levels are currently available and how much stock you’ll need to produce your estimated product demand.

This information will help you determine the production schedule and identify any potential bottlenecks in production.

It’s important to note that not all products can be produced in large quantities. If you have products only produced in small batches, production planning will need to take this into account.

3) Plan and Determine Needed Resources

The next production planning step is determining production capacity, overall production costs, and the required resources. This includes equipment, raw materials, and labor. Once you have an idea of what’s needed, you can develop a production plan.

Many factors will impact production capacity, including the number of products being produced and the level of demand.

4) Monitor Production Levels and Plan Release Dates

Monitoring production levels and planning release dates is the next step in your process. This will ensure production is on track and running smoothly. You should also set goals and track key performance metrics (KPIs) for production, such as the number of products to be completed per day or week.

These production planning steps can help your business run more efficiently and ensure products are delivered to customers on time.

5) Make Adjustments to Improve Production for the Future

Finally, production planning should include an evaluation of production processes and assessing how production was managed during the process.

This information can be used to make production methods or equipment changes for future product runs. This helps you avoid issues that occurred in previous production runs, saving time and money down the road.

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Product Planning FAQs

An Enterprise Resource Planning (ERP) system plays a significant role in production planning and scheduling by providing a comprehensive and integrated platform to manage various aspects of manufacturing operations. An ERP system streamlines production planning by integrating various aspects of the manufacturing process, providing visibility, and enabling efficient utilization of available resources. It leads to improved production efficiency, reduced lead times, on-time delivery, and enhanced production control.

A product plan typically includes several key components that help guide the development, launch, and life cycle of a product. These components are interconnected and provide a clear roadmap to reach production goals. A typical production management plan includes components such as material requirements, real-time market analysis, product vision and strategy, product roadmap, features and prioritization, resource allocation, marketing and launch plans, etc.

Demand planning and production planning are closely interconnected in the supply chain and manufacturing process. Demand planning is the process of forecasting customer demand for a product, while production planning is the process of determining how to meet that demand efficiently. Demand forecasting is a critical input to production planning, as it provides valuable insights into customer demand, which allows production planners to optimize resources, streamline production schedules, and meet customer orders efficiently. By aligning production with demand, organizations can reduce costs, improve stakeholder and customer satisfaction, and enhance overall supply chain profitability.

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How and Where to Write About Technology in Your Business Plan

6 min. read

Updated October 27, 2023

Often, a business plan introduces a new technology that requires some explaining.

On one hand, as a reader of business plans for investors, I see way too many business plans that ask a reader to wade neck-deep through technology to get to the business. That’s a great way make your reader run in the other direction! It’s a business plan, not a term paper or thesis. Establish technology as a differentiator, when it is. Tell me about it in relation to its importance to the business. Don’t force me to understand it when I don’t need to.

On the other hand, as a writer, manager, and user of business plans as tools for steering a business, I believe you should discuss your technology in the plan for any business. Even if technology isn’t the driving force of your business or your main differentiator, these days, almost all businesses have to manage technology as part of branding, marketing, and communications.

To the extent that technology matters, I want to see it in the priorities and in specific milestones. Are we developing what we should? Are we using what we should? Are we competitive with tools and process?

• Let your business purpose be your guide

The point of my opening paragraphs is that the right way to handle technology in a plan depends on the context of the plan. As always, in business, form follows function.

As you develop technology descriptions, priorities, milestones and such in your own business plan, consider first the business plan’s purpose.

Business plans aren’t all the same. They are used for different things, such as:

• Some business plans are intended for outsiders, as summary and description of the business, to serve the purpose of raising money with investors, backing up a commercial loan document, and so forth. In these cases the purpose of describing your technology is validation, proof of value; you’re making your technology part of the reasons that your business is a good investment or a good risk for a loan.
• Most business plans are intended to optimize management and allow business owners and management teams to better steer the business. For these plans, technology is not describing, but rather planning, setting milestones, dates, priorities, directions, and so forth.
• Technology in a plan for outsiders

Investors, bankers, and other outsiders look at technology as part of the secret sauce, the things that make your business better than competitors, defensible, or differentiated. They want to know about the technology for its business impact. But they rarely want to wade through the ins and outs of how that technology works and evaluate it for themselves. They want to know about the technology, not know the technology. The only exception is the technology they know and work with themselves.

To explain the difference, let’s take me as an example:

I’m a software entrepreneur, and, in recent years, a member of an angel investment group. I looked to scientists in the group to evaluate technology when we invested in molecular chemistry that can ease the pain of chemotherapy. I get involved in detail when the group is looking at startups in software, web, mobile apps, or financial forecasting.

When a business plan involves expertise in software, the web, apps, and technologies related to financial forecasting, I’m curious, and I’ll look for an appendix with interesting details. I’ll join in the due diligence for my angel group, test for myself, and develop my informed opinion. In fact, during my consulting years in the 1980s and 1990s, I had multiple consulting engagements with venture capital firms that contracted me to evaluate software as an expert.

When a business plan involves pharmaceuticals, medical electronics, biotechnology, clean energy, and so many other technologies that aren’t within my areas of expertise, I validate as I suggested above, with background checks, patents, and so on. I don’t, however, wade through scientific documentation.

I’m comfortable with what I don’t know. When it involves my specific investment group, I trust other members who do know.

The detailed look at the technology comes during due diligence, not in the plan or during the pitch. For plans and pitches, we look for the patents, customer testimonials, and backgrounds and achievements of the team as validators. We want to see those for sure, and we expect good summaries as part of the business plan discussion of product-market mix, or company background (in either section, whichever seems better to the founders). Technical background and technical details go into appendices, or extra docs used for due diligence, not the main body of the plan.

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• Technology in business planning for owners and managers

For business owners, I recommend a lean business plan as a dashboard and GPS. It’s just big enough to steer the business. It skips the text summaries and descriptions you won’t need because it’s for your own use only. It’s reviewed and revised frequently. It includes strategy and tactics as summary bullet points to serve as reminders. It includes milestones and schedules too.

Since the lean plan is just for you and the team, not for outsiders, it doesn’t necessarily include or cover your technology. Does your technology differentiate your business from all others? Is it vital to staying competitive? Does it create barriers to entry? Does it create competitive advantage? If you answer yes to any of those questions, then you are probably already managing technology as part of your strategy and tactics. So you include bullet points related to technology in your lean plan, in strategy, tactics, milestones, and schedules.

For example, tech businesses managing product development road maps, research and development teams, extending software features or tech features in hardware would be likely to build strategy and tactics around technology. More traditional businesses, on the other hand, such as real estate, restaurants, or personal training, would be less likely, on average.

But, even within traditional businesses, some innovative leaders set themselves apart for the use of new technology. Maybe the real estate brokerage is working on its app to show houses, or the restaurant is developing new techniques for cold pressed processes. Maybe the personal trainer is offering subscriptions to remote workouts.

The key to where technology goes into your lean plan is the execution and management. You don’t describe for description only. Instead, you list tasks and deadlines and action points. If there are none of those related to technology in your business, then leave it out of the lean plan.

• Stick with the business purpose

Remember, a business plan is about business. It’s not a forum for showing off. Even in the case of a show-off business plan for angel investors, keep to the business side of it. The business plan is about what you’re going to do, not what you know.

Give the investors what they need to know, and spare them from the rest. They’ll thank you. For you business owners and managers, how you develop and manage technology is a critical factor for steering the business. Make sure you plan for it, with reinforcement in strategy, tactics, and milestones to develop accountability and keep you on track.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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Production Company Business Plan Template

Written by Dave Lavinsky

Production Company Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their production companies.

If you’re unfamiliar with creating a production company business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a production company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Production Company Business Plan?

A business plan provides a snapshot of your production company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Production Company

If you’re looking to start a production company or grow your existing production company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your production company to improve your chances of success. Your production company business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Production Companies

With regards to funding, the main sources of funding for a production company are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for production companies.

Finish Your Business Plan Today!

How to write a business plan for a production company.

If you want to start a production company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your production company business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of production company you are running and the status. For example, are you a startup, do you have a production company that you would like to grow, or are you operating a chain of production companies?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the production industry.
• Discuss the type of production company you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of production company you are operating.

For example, your production company might specialize in one of the following types of production companies:

• Feature Film Production Company : this type of production company handles all of the necessities that go with producing a major film – hiring on-screen and off-screen talent, writers, musicians, location scouts, a team for pre-production, post-production, legal, etc.
• Commercial Production Company: this type of production company can produce stock footage, short corporate videos, training videos, and creative projects such as music videos and short films
• Post Production Company: this type of production company handles video editing, special effects, color correction, sound mixing, and editing to eventually produce the final video.
• Niche Production Company: this type of production company focuses on one specific niche that it has perfected. They often combine the best of animation, commercial, and post-production companies.

In addition to explaining the type of production company you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of films with positive reviews, reaching X number of clients served, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the production industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the production industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your production company business plan:

• How big is the production industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your production company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your production company business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, companies, filmmakers, studios.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of production company you operate. Clearly, small businesses would respond to different marketing promotions than filmmakers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other production companies.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes social media platforms, web developers, apps and even college or university students. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of clients do they serve?
• What type of production company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide concierge services or customized packages for your clients?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a production company business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f production company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide video editing, music editing, pre-production, or post-production services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your production company. Document where your company is situated and mention how the site will impact your success. For example, is your production company located in New York or Los Angeles, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your production company marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Be part of filmmaker associations and networks
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your production company , including client communication and interaction, planning and producing production services, billing clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth client, or when you hope to reach $X in revenue. It could also be when you expect to expand your production company to a new city.  

Management Team

To demonstrate your production company’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing production companies. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a production company or successfully running a small filmmaking company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you book 5 films or videos per day, and/or offer production packages ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your production company, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a production company:

• Cost of equipment and production studio supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your studio location lease or a list of production services you plan to offer.  

Writing a business plan for your production company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the production industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful production company.  

Production Company Business Plan FAQs

What is the easiest way to complete my production company business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your production company business plan.

How Do You Start a Production Company Business?

Starting a production company business is easy with these 14 steps:

• Choose the Name for Your Production Company Business
• Create Your Production Company Business Plan
• Choose the Legal Structure for Your Production Company Business
• Secure Startup Funding for Your Production Company Business (If Needed)
• Secure a Location for Your Business
• Register Your Production Company Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Production Company Business
• Buy or Lease the Right Production Company Business Equipment
• Develop Your Production Company Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Production Company Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Production Company business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to hire someone to write a business plan for you from Growthink’s team.

Other Helpful Business Plan Articles & Templates

How to describe your product and service in a business plan like a pro

It’s deceiving.

You’d think that this part of a business plan does exactly what it says on the tin–describe your product & service offering– right ?

And yes, you are partially right. 

But there’s a very specific way in which this description should be written to make sure that your business has the best chance of succeeding – in real life and under the eagle eye of a potential backer (if you’re preparing a business plan for external financing purposes).

Keep reading to find out the secret sauce to writing a winning product and service description:

WHAT is the Product and Service Description in a Business Plan?

This business plan section is also known as:

• Product and/or Service Overview

HOW Do You Write a Product and Service Description in a Business Plan?

So, what should a good product/service overview contain?

Here are some items to consider including into this section:

1.     Portfolio:

The range of products and/or services that a business offers to potential and current customers.

2.     Features and benefits (value proposition):

Explain what the product/service does and how it works.

3.     Problem and solution (value proposition cont.):

The problem(s) the product or service solves. Every business needs to solve a problem that its customers face. Explain what the problem is and how the product or service solves it.

4.     Innovation:

If the company is doing something new and different, explain why the world needs the innovation.

5.     Proprietary advantages:

Any proprietary features that contribute to a competitive advantage. This could include: intellectual property (e.g., copyright, trademark, patent filings, trade secret), exclusive agreements with suppliers or vendors, exclusive licenses (e.g., for a product, service or technology), company’s own research and development activities.

6.     Development stage:

Current stage of development of the product / service (e.g., idea, development, testing, prototype, already on the market).

7.     Product life-cycle:

Estimate the life span of the product or service.

Specify whether the product or service under consideration is a short-lived fad or has a long-term potential.

8.     Future:

Mention plans for changes and new additions to the current portfolio of products / services.

Describe any plans to move into new markets in the future (e.g., serving different types or sizes of customers, industries, geographic areas).

Make your best guess at when the business will be ready to address these markets and what it needs to do first to be ready.

9.     Limitations:

If applicable, explain any risks or limitations associated with the product (e.g., liability issues like guarantees or returns), along with any legal advice received regarding these issues.

10.  Visual aids:

Use photos, images, diagrams and other graphics to help the reader visualize and learn about the products / services.

If the business is tackling several distinct problems through different products / services, describe the solutions individually .

However, for a large line of products / services, there is no need to list each one, just identifying the general categories will suffice.

How LONG Is the Product and Service Chapter of a Business Plan?

This part of a business plan can be very short, just a couple of paragraphs, or it can spread over multiple pages, depending on how many products/services you offer and how much explanation they require.

If your products or services are particularly complex , technical , innovative , or proprietary , you will want to provide more information and spend considerable time describing them.

This is especially true if you are seeking funding for a new product or service, particularly one that is not immediately understandable to the business plan readers, and if potential funders are likely to be motivated by the specifics.

In any case, when describing a product or service, provide just enough information to paint a clear picture of what it is and does . A brief explanation of what you will be making, selling or doing is appropriate here.

Excessive detail makes this section cumbersome for a reader to wade through. Reserve detailed descriptions (e.g., production processes) for the Appendix.

In any case, it is a good idea to first summarize the value proposition of each product or service into a one short sentence, and only then continue with a more detailed description of the product or service.

If any images or graphics are available that would contribute to the understanding of the product or service, the writers of a business plan should use them.

Otherwise, include any product or service details , such as technical specifications, drawings, photos, patent documents and other support information, in the Appendix section of the business plan document.

TOP 4 TIPS for Writing a Product and Service Overview

Tip #1: features v. benefits.

Don’t just list the features of the product / service.

Instead, describe the specific benefits it will offer to customers – from their perspective.

Make it clear what your customers will gain through buying your product or service. Include information about the specific benefits of your product or service – from your customers’ perspective.

Features are not the same thing as benefits. And you need to understand both.

Confused? Let’s clarify:

What Is the Difference Between Features and Benefits?

Tip #2: problem v. solution.

If at all possible, present the information in the Problem >> Solution format.

Start by describing the key problem that your customers have, immediately followed by the solution with which you will address this need for your target market.

Tip #3: Competitive Advantage

You should also comment on your ability to meet consumers’ key problems or unmet needs in a way that brings your product or service advantages over the competition.

For example:

• If you have a common business, such as a restaurant:

Explain why your customers need your particular restaurant. Do you offer lower prices? More convenient hours? A better location? A different concept, such as a vegan ice-cream pop up store? A specialty that is not otherwise available in your area, such as a Peruvian ceviche or Hungarian goulash?

• If your company is doing something new and innovative :

What is it about the existing solutions that is subpar? Maybe you are improving on a mediocre product category, such as creating better medical uniforms for healthcare workers (e.g., more flattering cut, trendy designs, sustainable materials). Or perhaps your new blockchain solution has the potential to entirely eliminate the middle-men in an entire industry.

Although the subject of competitive advantage regarding the business as a whole will be fully explored in the Market and Competitor Analysis part of a business plan, it is advisable to touch on it here also – in the context of the company’s products and service.

Tip #4: Validating the Problem and Solution

Speaking of which, when you are doing market research and analysis for your business plan, remember to validate the problem and solution your product or service is addressing.

There is a plethora of minor issues out there that people are perfectly fine with just tolerating. To build a solid business, though, you need a problem that a sufficient number of people are motivated to solve. That is, that they recognize it as a problem that’s worth paying you to solve. Even if they didn’t realize it was solvable until they were presented with your solution.

So, how do you get evidence that prospects are willing to pay for your solution?

Validation of Problem

Describe what you’ve done so far to confirm that the problem you are focused on is a real problem for your customers.

• Existing Business:

For an established business, this is probably just a matter of recapping your success in the marketplace. Your customers have already voted with their wallets.

• New Business:

For a startup, it is important to survey and have conversations with as many potential customers as possible about where they are having problems, how they solve them today, and validate that they are interested enough in addressing those problems to pay for a good solution.

Validation of Solution

Describe how you have tested your ideas with existing or potential customers to confirm that there is a good market for the products or services you plan to offer. Summarize the positive customer feedback or market traction that you have achieved with your solution so far.

For an established business, the answers probably lie in your paying customer base – their existence itself, combined with their repeat business, word-of-mouth referrals, follow-up customer surveys, and other indicators of customer satisfaction.

For a new business, you can start validating your solution immediately by trying it out with potential customers, even informally or at no charge, to get their opinion. If your product or service does not exist yet, talk to prospects about what you plan to offer and measure their feedback.

In summary, this section should answer the million dollar question:

What makes you think that people will buy, be satisfied with, and recommend your products or services?

Related Questions

What are products and services.

Products and services are items that businesses offer for sale to a market. While services are intangible, meaning that they do not exist in a physical form, products are of tangible nature, in other words – you can touch them.

What is a Product Line?

Product line is a group of related products that are all produced or sold by one entity and typically marketed under one brand name.

What is a Service Line?

Service line is a group of related services that are all produced or sold by one entity and typically marketed under one brand name.

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How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

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Plan Projections

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Home > Business Plan > Product and Technology in a Business Plan

Product and Technology in a Business Plan

… our product looks like this …

The Product and Technology

In this section, describe the current state of development of the product (concept, prototype, or market-ready), explain what further work needs to be done, and what skills you need if any, in order for it to be ready for the market place. Unless they are already obvious and apparent make sure that the uses of the product are explained to the investor.

Minimum Viable Product

A minimum viable product, often abbreviated to MVP, is a product with just enough features to see whether it will work in the real world. It is important for a startup business that the minimum viable product is low cost, can reach the customer quickly, and is effectively an early prototype of the final product, so that the customers can get an early indication of what the product is trying to achieve.

The idea of a minimum viable product is to rapidly build a minimum set of features into a product and release it onto the market to test customer reaction. The feedback obtained from the early adopters can then be used to adapt and improve the product. This process can be repeated in a loop until the product is fully developed.

The minimum viable product method is in contrast to the conventional method of bringing products to market. The conventional method incorporates the maximum number of features the customer might want, carries out market research and adapts the product, and then launches the product fully developed.

Intellectual Property

Intellectual property is an asset of the business and can be bought or sold like any other asset. It can be used for example, to earn royalties from licensing, create strategic alliances with other businesses, and to secure loans. Set out the intellectual property rights your business has.

A patent is a form of intellectual property right granted by the state which gives an inventor the sole right to make, use, sell, or dispose of their invention for a limited number of years. A patent protects the way products and processes work, how they are made, what they are made of, what they do, and how they do it. If the patented invention is infringed, then the owner can take legal action to try and stop others making, using, importing or selling the invention without their permission.

It should be noted that not all inventions are patentable as to get the intellectual property rights associated with patent protection, the invention needs to be new, have a non obvious inventive step, and be capable of being made or used in some form of industry.

Trademarks legally distinguish the products of one business from another and give protection for the name of the product using a distinctive symbol, logo, word, phrase or signature normally placed on a product, packaging, or advertisements. Registering a trade mark gives the business the exclusive right to use it, and another business using the same or similar trademark is said to have infringed the trademark and could be sued for damages.

A registered trade mark is identified by the letter “R” surrounded by a circle ® .

Design Registration

A design registration is a type of intellectual property right protecting the way an object looks, its shape, and visual appeal. A registered design can protect such things as color, shape, and texture. Registering a design gives the business the exclusive right to use it, and another business using the same or similar design is said to have infringed the design registration and could be sued for damages.

Copyrights protect material when it is written down or recorded. For example, copyright will protect music, films, books.

Presenting Product and Technology in the Business Plan

There is no set style for the product and technology section of the business plan, a few paragraphs together with bullet points should be sufficient to explain the product itself, what it does, and the technology behind it.

Keep the description of the product and technology as simple as you can and avoid technical jargon where possible. The amount of technical detail will depend on the nature of the product itself, but should only be included to the extent that it is needed to explain to someone who is reasonably familiar with the industry, why the product is innovative and viable.

This is part of the Financial Projections Business Plan Guide a series of posts on what each section of a simple business plan should include. The next post in this series is about the traction your business idea has.

About the Author

Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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Production Company Business Plan

Videos capture or display emotions like no other medium is present. And if you are creative or want to take up projects related to film and video, then a production company business might be a good choice for you. Making videos is no longer restricted to films and TV.

Due to the increasing usage of OTT platforms and streaming platforms like YouTube video production is growing by leaps and bounds.

From learning something new to purely for entertainment purposes, people watch videos for everything. And if you want to get into this business, then all you need is a production company business plan and a good team of creatives.

Industry Overview

The video production industry stood at a whopping value of 2.09 billion dollars in 2021 in the USA and Canada. And is expected to grow at a rapid rate going forward as well.

The major reason for this rise is the increase in the consumption of video content. Video content is no longer just used for movies. It has a wide variety of usage from digital marketing, education, entertainment, and many more.

But as so much content is present on the web, it is essential to do something that helps you stand out. Hence, it is important to plan and strategize before getting started.

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Things to Consider Before Writing a Production Company Business Plan

Choose a niche.

Video production is used in many aspects from making films, TV, and web series, to direct advertisements, music video advertisements, and so on. Video production is also either done entirely by your company including to’ve processed, or you might be hired by other businesses or agencies to produce videos, but you aren’t a part of the creative process.

It is essential to choose a niche before getting started because different strategies work for different niches. Also, picking one niche before getting started helps you focus on the area and develop a thorough understanding and expertise in it.

Develop a creative process

All of us know that there’ll be days when you have important deadlines, but you won’t be able to think of anything new or good. On such days, you’ll need a process that helps you get decent ideas in an autopilot sort of way. A creative process can help you actively look for ideas instead of waiting for ideas to come to you.

Build a good team

Having a team that understands and supports your vision is essential in any creative profession. Your team should be an amalgamation of individuals with different and complementary perspectives. It helps you develop new and unique ideas as well as move forward with them creatively.

Organize your finances

It is necessary to do your research and find out what would be the financial requirements of starting your production company, how much you can manage on your own, how much funds you’ll need, and what are the sources for acquiring the same.

Chalking out Your Business Plan

If you are planning to start a new production company business, the first thing you will need is a production company business plan. Use our sample production company business plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new production company business, spend as much time as you can reading through some samples of entertainment & media business plans .

Reading sample business plans will give you a good idea of what you’re aiming for. It will also show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample production company business plan for you to get a good idea about how a perfect production company business plan should look like and what details you will need to include in your stunning business plan.

Production Company Business Plan Outline

This is the standard production company business plan outline, which will cover all important sections that you should include in your business plan.

• Market Validation
• Short-Term (1 -3 Years)
• Long Term (3-5 years)
• Mission statement
• Unique Selling Proposition
• Black Screen Productions – 3-Year Financial Highlights
• Company Ownership/Legal Entity
• Interior Operating Facilities
• Hours of Operation
• Startup summary
• Media Production
• Media Distribution
• Market segmentation
• Market Trends
• Target market
• Competitive Advantage
• SWOT analysis
• Target Market Strategy
• Market Size
• Positioning Statement
• Online Marketing Channels
• Offline Marketing Channels
• Pricing strategy
• Organization chart
• Management Team
• Hiring plan
• BLACK SCREEN PRODUCTIONS
• Important Assumptions
• Break-even analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

After getting started with Upmetrics , you can copy this Production Company business plan template into your business plan and modify the required information and download your production company business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Download a sample production company business plan

Need help writing your business plan from scratch? Here you go;  download our free production company business plan pdf  to start.

It’s a modern business plan template specifically designed for your production company business. Use the example business plan as a guide for writing your own.

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10.1 Production and Operations Management—An Overview

• Why is production and operations management important in both manufacturing and service firms?

Production , the creation of products and services, is an essential function in every firm. Production turns inputs, such as natural resources, raw materials, human resources, and capital, into outputs, which are products and services. This process is shown in Exhibit 10.3 . Managing this conversion process is the role of operations management .

The goal of customer satisfaction is an important part of effective production and operations. In the past, the manufacturing function in most companies was inwardly focused. Manufacturing had little contact with customers and didn’t always understand their needs and desires. In the 1980s, many U.S. industries, such as automotive, steel, and electronics, lost customers to foreign competitors because their production systems could not provide the quality customers demanded. As a result, today most American companies, both large and small, consider a focus on quality to be a central component of effective operations management.

Stronger links between marketing and manufacturing also encourage production managers to be more outwardly focused and to consider decisions in light of their effect on customer satisfaction. Service companies find that making operating decisions with customer satisfaction in mind can be a competitive advantage.

Operations managers, the people charged with managing and supervising the conversion process, play a vital role in today’s firm. They control about three-fourths of a firm’s assets, including inventories, wages, and benefits. They also work closely with other major divisions of the firm, such as marketing, finance, accounting, and human resources, to ensure that the firm produces its goods profitably and satisfies its customers. Marketing personnel help them decide which products to make or which services to offer. Accounting and human resources help them face the challenge of combining people and resources to produce high-quality goods on time and at reasonable cost. They are involved in the development and design of goods and determine what production processes will be most effective.

Production and operations management involve three main types of decisions, typically made at three different stages:

• Production planning. The first decisions facing operations managers come at the planning stage. At this stage, managers decide where, when, and how production will occur. They determine site locations and obtain the necessary resources.
• Production control. At this stage, the decision-making process focuses on controlling quality and costs, scheduling, and the actual day-to-day operations of running a factory or service facility.
• Improving production and operations . The final stage of operations management focuses on developing more efficient methods of producing the firm’s goods or services.

All three decisions are ongoing and may occur simultaneously. In the following sections, we will take a closer look at the decisions and considerations firms face in each stage of production and operations management.

Gearing Up: Production Planning

An important part of operations management is production planning . Production planning allows the firm to consider the competitive environment and its own strategic goals to find the best production methods. Good production planning has to balance goals that may conflict, such as providing high-quality service while keeping operating costs low, or keeping profits high while maintaining adequate inventories of finished products. Sometimes accomplishing all these goals is difficult.

Production planning involves three phases. Long-term planning has a time frame of three to five years. It focuses on which goods to produce, how many to produce, and where they should be produced. Medium-term planning decisions cover about two years. They concern the layout of factory or service facilities, where and how to obtain the resources needed for production, and labor issues. Short-term planning, within a one-year time frame, converts these broader goals into specific production plans and materials management strategies.

Four important decisions must be made in production planning. They involve the type of production process that will be used, site selection, facility layout, and resource planning.

Concept Check

• What are the three types of decisions that must be made in production planning?
• What are the three phases of production planning?

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Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/introduction-business/pages/1-introduction

• Authors: Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt
• Publisher/website: OpenStax
• Book title: Introduction to Business
• Publication date: Sep 19, 2018
• Location: Houston, Texas
• Book URL: https://openstax.org/books/introduction-business/pages/1-introduction
• Section URL: https://openstax.org/books/introduction-business/pages/10-1-production-and-operations-management-an-overview

© Apr 5, 2023 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

Technology Business Plan Template

Written by Dave Lavinsky

Technology Business Plan

You’ve come to the right place to create your own Technology business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Technology businesses.

Technology Business Plan Example & Template

Below is a Technology business plan template and sample to help you create each section of your own business plan.

Executive Summary

Business overview.

Kearney Tech Inc., located in Houston, Texas is a tech startup that focuses on developing and commercializing new artificial intelligence (AI) technology applications designed for small-to-medium sized businesses. The company has created proprietary technology that helps businesses improve their profitability by using AI to increase customer engagement. We offer multiple products, including AI hardware, marketing AI software, and CRM AI software. Many of our most basic services are free, but the rest can be accessed by paying a subscription fee. By providing flexible and affordable subscription options for our clients, Kearney Tech Inc. aims to be the next big technology company in the AI space for small and medium-sized businesses.

Kearney Tech Inc. was founded and is led by Abigail Kearney. Abigail has been a senior software engineer for nearly 10 years and has extensive experience in artificial intelligence and machine learning. In addition to her experience, she has a bachelor’s degree in computer science and an MBA. Her education and experience are sure to lead Kearney Tech Inc. to success.

Product Offering

Kearney Tech Inc. will showcase a variety of different applications for its AI technology that companies can utilize to increase their customer engagement from day one. Businesses can choose the platform package that works for them, based on a freemium subscription pricing structure.

The following are the services that Kearney Tech Inc. will provide:

• AI Hardware
• Marketing AI Software
• Customer Relationship Management AI Software
• Customer Support AI Software
• Technology Training: Training sessions on how to use our AI solutions and integrate them into their businesses

Customer Focus

Kearney Tech Inc. will serve small to medium-sized businesses within a 30-mile radius of Houston, Texas. Many of the businesses in our target demographic are startups looking to expand their reach and thus would benefit from technology that can increase their customer base.

Management Team

Kearney Tech Inc. will also employ an experienced assistant to work as a business analyst and help with various administrative duties around the office. She will also hire several developers, salesmen, and other administrative staff to assist her.

Success Factors

Kearney Tech Inc. will be able to achieve success by offering the following competitive advantages:

• Management: Abigail Kearney has been extremely successful working in the technology industry and will be able to use her previous experience to provide the best service experience. Her unique qualifications will serve customers in a much more sophisticated manner than Kearney Tech Inc.’s competitors.
• Relationships: Abigail Kearney knows many of the local leaders, business managers, and other influencers within Houston, Texas. With her 10 years of experience and good relationships with business leaders in the area, she will be able to develop an initial client base.
• Proprietary technology : The company has developed proprietary AI technology that will be used to add new data sources, expand on valuable insights, launch advanced features like benchmarking, provide predictive and prescriptive analytics, and ensure self-guided data discovery.
• Client-oriented service: Kearney Tech Inc. will have full-time customer service and sales managers to keep in contact with clients and answer their everyday questions.

Financial Highlights

Kearney Tech Inc. is seeking a total funding of $400,000 of debt capital to open its office. The funding will be dedicated to office design, software development, marketing, and working capital. Specifically, these funds will be used as follows:

• Office design/build: $50,000
• Software development: $150,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $25,000
• Working capital: $25,000

The following graph below outlines the pro forma financial projections for Kearney Tech Inc.:

Company Overview

Who is kearney tech inc..

Abigail began researching what it would take to create her own technology company and did a thorough analysis of the costs, market, demographics, and competition. Abigail has compiled enough information to develop her business plan in order to approach investors.

Kearney Tech Inc.’s History

Once her market analysis was complete, Abigail Kearney began surveying the local vacant office space and located an ideal location to house the technology company. Abigail Kearney incorporated Kearney Tech Inc. as a Limited Liability Corporation in April 2023.

Since incorporation, the company has achieved the following milestones:

• Located available office space for rent
• Developed the company’s name, logo, and website
• Determined equipment and necessary supplies
• Began recruiting key employees

Kearney Tech Inc. Services

Industry analysis.

As of 2021, the global technology industry was valued at approximately $5.2T. Of all countries worldwide, the United States currently has the largest technology market, with 32% of the market share at $1.7T. The technology industry in the U.S. accounts for a large part of the nation’s economy.

The Information Technology market can be segmented by categories such as software, devices, infrastructure IT and business services, emerging technology, and telecom services. In the United States, IT and business services hold the greatest market share (30%), followed by software (20%) and telecom services (20%).

Market drivers include the economy, employment rates, and the digital transformation of daily life for a growing number of people and businesses worldwide. Corporations and organizations are seeking IT service providers that can help improve their software, cybersecurity, data, and infrastructure. Technology companies that can provide products and services that cater to these issues can be competitive in the constantly evolving market.

Technology is an integral part of society. Developments in AI and machine learning are essential to keep society moving forward and make businesses more efficient. Therefore, businesses will always be in need of AI solutions to bring in more customers and streamline their services and products. According to Market Watch, the Technology industry is set to grow at a CAGR of 25.73% from now until 2027. Very few industries see this growth, which shows how much demand there is for technological solutions. Therefore, we expect Kearney Tech Inc. to see great success in our local market.

Customer Analysis

Demographic profile of target market.

Kearney Tech Inc. will serve the small and medium-sized businesses of Houston, Texas, and the surrounding areas.

Many small businesses in the community are startups or established enterprises looking to expand their reach and thus would benefit from technology that can increase their customer engagement.

Customer Segmentation

Kearney Tech Inc. will primarily target the following customer profiles:

• Small businesses
• Medium-sized businesses

Competitive Analysis

Direct and indirect competitors.

Kearney Tech Inc. will face competition from other companies with similar business profiles. A description of each competitor company is below.  

Tekuserv has been a reliable technology company in Houston, Texas for more than fifteen years. The company is known for its wide range of technology solutions that serve many small-to-medium-sized businesses. With its large number of experts focused on delivering customer satisfaction, the organization maintains its high standard of developing quality products and providing exceptional customer service. Tekuserv provides business software on a freemium subscription basis. It develops enterprise technology solutions with a focus on customer relationship management.  

Prime AI Business Solutions

Prime AI Business Solutions is a technology development company in Houston, Texas. In business for several years, the company has developed highly-rated AI solutions used by many well-known businesses in a variety of industries. Prime AI Business Solutions now offers a range of AI hardware and software products geared toward helping businesses of all sizes increase their customer base. The company has also introduced a “pay-as-you-grow” pricing model that scales to provide users with more support as they scale up.  

AICE Developments

AICE stands for Artificial Intelligence for Customer Engagement. AICE Developments is also a local technology company that manufactures and distributes a variety of technology products. AICE Developments was established in 2009 in Houston, Texas, providing integrated AI applications and platform services. Its products include applications and infrastructure offerings delivered through various IT deployment models, including on-premise deployments, cloud-based deployments, and hybrid deployments. The company serves automotive, financial services, healthcare, hospitality, retail, utilities, construction, etc. It provides AI solutions for enterprise marketing and customer engagement.

Competitive Advantage

Kearney Tech Inc. will be able to offer the following advantages over the competition:

• Proprietary technology: The company has developed proprietary AI technology that will be used to add new data sources, expand on valuable insights, launch advanced features like benchmarking, provide predictive and prescriptive analytics, and ensure self-guided data discovery.

Marketing Plan

Brand & value proposition.

Kearney Tech Inc. will offer a unique value proposition to its clientele:

• Service built on long-term relationships
• Big-firm expertise in a small-firm environment
• Thorough knowledge of the clients and their varying needs
• Proprietary technology developed by skilled software engineers

Promotions Strategy

The promotions strategy for Kearney Tech Inc. is as follows:

Kearney Tech Inc. understands that the best promotion comes from satisfied customers. The company will encourage its clients to refer other businesses by providing economic or financial incentives for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

Kearney Tech Inc. will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Website/SEO

Kearney Tech Inc. will invest heavily in developing a professional website that displays all of the features and benefits of the technology company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Direct Mail

Kearney Tech Inc. will blanket businesses with direct mail pieces. These pieces will provide general information on Kearney Tech Inc., offer discounts, and/or provide other incentives for companies to use the AI platform.

Kearney Tech Inc.’s pricing will be on par with competitors so clients feel they receive great value when purchasing the technology.

Operations Plan

The following will be the operations plan for Kearney Tech Inc.:

Operation Functions:

• Abigail Kearney will be the Owner and CEO of the company. She will oversee all the operations and executive functions of the company. In the beginning, she will also provide customer support and market/sell AI products to potential clients.
• Abigail will employ an experienced assistant to work as a business analyst and help with various administrative duties around the office.
• Abigail will also hire several developers to maintain and develop AI products and services.
• Abigail will also hire a solid sales team to sell our products to potential clients. As the company grows, she will also hire a team that is solely dedicated to customer service.

Milestones:

Kearney Tech Inc. will have the following milestones completed in the next six months.

5/2023 – Finalize lease agreement

6/2023 – Design and build out Kearney Tech Inc.

7/2023 – Hire and train initial staff

8/2023 – Kickoff of promotional campaign

9/2023 – Launch Kearney Tech Inc.

10/2023 – Reach break-even

Financial Plan

Key revenue & costs.

Kearney Tech Inc.’s revenues will come primarily from its technology solution subscription sales. The company will use a freemium subscription model, in which basic functions can be used by any company for free. Additional solutions and support will be available in a tiered package model based on the enterprises’ size and the number of users.

The office lease, equipment, supplies, and labor expenses will be the key cost drivers of Kearney Tech Inc. Ongoing marketing expenditures are also notable cost drivers for Kearney Tech Inc.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Average number of clients per month
• Annual rent: $20,000

Financial Projections

Income statement, balance sheet, cash flow statement, technology business plan faqs, what is a technology business plan.

A technology business plan is a plan to start and/or grow your technology business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Technology business plan using our Technology Business Plan Template here .

What are the Main Types of Technology Businesses?

There are a number of different kinds of technology businesses, some examples include: Network technology, Software technology, and Customer relationship technology.

How Do You Get Funding for Your Technology Business Plan?

Technology businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Technology Business?

Starting a technology business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Technology Business Plan - The first step in starting a business is to create a detailed technology business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your technology business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your technology business is in compliance with local laws.

3. Register Your Technology Business - Once you have chosen a legal structure, the next step is to register your technology business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your technology business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Technology Equipment & Supplies - In order to start your technology business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your technology business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful Technology business: How to Start a Tech Company

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Production Business Plans

JUL.25, 2013

Do you want to start a Production business plan?

Do you want to start a production company? With how beneficial a production company is, this is a great idea. However, to execute this idea, you will need to write a business plan for production company. You can start a production company at any scale and then expand it as you go. So, there is a lot of potential for scalability.

Writing a business plan isn’t always easy especially if you don’t have any prior experience. If you are new to starting a business, you can enlist the help of professional business plan writers. You can also go through this document if you want to learn how to write a business plan for a production company. You can also take a look at a business plan of a furniture startup for reference.

• Executive Summary

2.1 The Business

Cocoon Productions will be a production company started by Calvin Kornwell. The target of the business will be to provide production services to the businesses in and around Illinois. It will be offering a wide range of services including but not limited to content development, casting and scripting.

2.2 Management of Production Company

To ensure that all aspects of your business are well managed and organized, you need to write a business plan for a production company. Your production company business plan pdf should include all relevant technical and logistic details of your company. If you pay attention to the production portion of business plan, it will help you manage all of your financial and human resources efficiently.

If you want to further improve your business plan, you can take a look at some other plans such as organic skin care business plan . For even more refinement of your business aspects, you can take guidance from business consulting services.

2.3 Customers of Production Company

The customers of Cocoon Productions will belong mainly to the entertainment industry. The main target customers for the business are listed below:

• Event and Live Streamers
• Social Media Marketers
• Big Agencies
• Creative Branding Partners

2.4 Business Target

Our primary target is to become a trustworthy production company in the Illinois area so that they can call upon us any time they need production-related services.

The financial targets we want to achieve in the first three years of launch are mentioned below:

Company Summary

3.1 company owner.

Cocoon Productions will be owned and operated by Calvin Kornwell. He completed his master’s in media studies 4 years back after which he worked for a few production companies. Afterwards, he decided to start his own production company in Illinois.

3.2 Why the Production company is being started

Calvin noticed a lack of supporting production companies in his hometown Illinois. He realized that he could bridge the gap by developing his own production company that focused mainly on supportive functions. He also realized that he could bring a bit of flexibility and innovation to his company that would help it be more beneficial to the aspiring individuals in the entertainment industry.

3.3 How the Production company will be started

Step1: Plan Everything

The first step to starting any business is to write up a business plan for it. So, naturally, you will need to develop a sample business plan production company. You can refer to a template for starting a biodiesel company business plan , etc. to understand the nuances of the document. To help you in creating your business plan, we have provided a reference production management business plan for Cocoon Productions here. You can refer to this document to learn how to make a business plan for a production company.

Step2: Define the Brand

After developing a business plan production company, the next step is to attract customers to your business. For this, you will need to establish a brand for your company that will emphasize your values and benefits to your customers. You will then need to highlight this brand and market it so that your customers can come to you in response.

Step3: Establish Your Corporate Office

Calvin decided to rent out a couple of offices in a commercial building in the business centre of Illinois to start his production company. He will now take care of stocking up on the required equipment to start the business.

Step4: Establish a Web Presence

The success of a business in the entertainment industry is heavily dependent on its reach. Understanding this, Calvin decided to put some manpower towards the creation and maintenance of social media accounts for his production company. He also decided to get a website developed for the business to showcase all the important details and make communication with clients easier.

Step5: Promote and Market

The last step in developing a business is to execute its marketing plan and attract more people to the business.

Before you start a production business and start to develop a business plan production, you need to decide on the list of services you will initially be offering to your customers. This filtering is an essential part of describing the production process in business plan. These details in a business plan will help you organize your resources more efficiently so that you can cater to all of your customers in the best way.

Since Calvin decided to offer a wide range of services through his company, Cocoon Productions, you can use this production business plan example to guide the development of a business plan for your business. You can also take a look at guides explaining how to start a candle making business plan for a better idea about explaining your services in a business plan.

Below, we have described the services provided by Cocoon Productions:

• Content Development

Cocoon Production will offer services for the development of different types of media including but not limited to the following:

• Graphic Content
• Sharable Social Media Content

Entertainment companies and media houses usually need to hire talent agencies for casting for different projects. Therefore, we will provide casting services in our company as well.

Just like media companies outsource casting, they often outsource the hiring of the entire production crew. We will offer our clients a developed and filtered list of required candidates for different crew posts.

• Script Writing

We will also offer professional script writing services for our clients. Our clients can hire us for assistance in script and plot development as well as for independent scriptwriting for different projects.

• Logistic and Planning Assistance

Media companies usually handle a lot of projects at the same time. A lot of planning goes into different production projects. Therefore, Cocoon Productions will offer assistance, logistic and planning assistance for our clients as well.

Marketing Analysis of Production Company

When you want to start a business, you should have a deep understanding of the target market. And the best way to gain this kind of insight for your production company is to go through a production business plan sample. Business plan for a production company should contain an analysis of past, present and future market trends. This will help you set prices for your services in a way that is profitable to your business.

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To write your business plan for production company, you can take help from an industry business plan. This will guide you when conducting a marketing analysis for your business. A business plan production that contains information about market trends will help you understand your customers better and present your services in a way that gains attraction.

Here, we have described the market trends and customers of Cocoon Productions.

5.1 Market Trends

According to IBISWorld, production companies in the US have a market size of $17 billion with a growth rate of 3.6%. With how much content is consumed daily in just US, there is no expected decline in the industry any time soon. And since the demand is so high, you can be assured that a production company will thrive in the current entertainment climate.

5.2 Marketing Segmentation

The potential customers of Cocoon Productions are categorized as follows:

5.2.1 Event and Live Streamers

Our primary customers will be the agencies holding symposiums and big events. We expect these customers to utilize our services time and time again. So they will be consistent and lucrative clients of the business.

5.2.2 Social Media Marketers

Most corporate agencies have started to embrace the importance of social media in marketing. As such, they will need our services to make videos to post on social media. We expect to gain many corporate clients through this gig.

5.2.3 Big Agencies

Big agencies are always on the lookout for more help on a project here and there. We expect to gain an in into these agencies through our flexible services. So, we expect big agencies to be regular customers as well.

5.2.4 Creative Branding Partners

Lastly, many standalone creative producers and content creators are looking for support. We aim to present our resources to these clients and gain them as long term customers of the business in a content-driven world.

5.3 Business Target

• To become a reliable source of production resources and assistance.
• To expand the services we provide over time.
• To increase the scale of the company over the years.
• To earn a profit margin of around $75k/month at the end of the first 2 years of launch.
• To gain at least 50 regular clients by the end of our third year.

5.4 Product Pricing

Since we are offering a wide variety of services flexibly, our resources will be less pricey as compared to the market standard.

Marketing Strategy

To succeed in a saturated market, you need several competitive advantages over your competitors. And you need to advertise them adequately. The best way to develop and present your brand is by developing a marketing strategy. You need to work on this strategy while creating your production company business plan.

In this sample production company business plan, we are presenting the marketing strategies to be employed by Cocoon Productions. You can use this as a guide to shape your marketing plans.

6.1 Competitive Analysis

• We offer the flexibility of service packages. Our customers don’t have to pay for services they’ll never use.
• We offer support and resources for not just big agencies but also independent content creators.
• We have an excellent rapport with our clients. They can contact us any time they need.
• Our customers can contact us through our website or reach out to us on social media. So there is no need to cover the distance unless the need to.

6.2 Sales Strategy

• We will attract customers through posters, billboards, social media and Google Ads.
• We will offer service packages at a discounted rate for first-time clients
• We will offer regular discounts to regular clients.
• We will offer budget-friendly services to independent creative minds.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

The success of a business in the entertainment industry needs a lot more than a few clients to be successful. For gaining and retaining clients, the behaviour of employees is essential. Calvin understood the importance of a good rapport between clients and the workforce. Therefore, he decided to implement a selection criterion which he included in the production business plans as well.

To find out how to include details about your employees in your business plans, you can refer to the sample production business plan here.

7.1 Company Staff

• 6 Experienced Production Video Editors
• 6 Experienced Content Creators
• 12 Support Creatives
• 3 Technician to upkeep the machinery
• 1 Web Developer
• 2 Sales Executives to organize and promote sales
• 1 Accountant

7.2 Average Salary of Employees

• Financial Plan

Profits are just one part of the equation of the success of a business. Good management is a very important factor. You need to manage your resources and finances efficiently to make sure that you don’t go into a loss. To ensure good management of all money-related affairs, you will need to conduct a financial analysis. This will help you set the prices of your services in a way that doesn’t bankrupt you and still keeps you attractive to customers.

You can use this production company business plan template to carry out a financial analysis for your business. You can also refer to a production company business plan pdf for help.

Here we’re providing the detailed financial plan for Cocoon Productions. This will help you get a good idea of how to adequately manage your business finances.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

• How do you write a production plan for a business plan?

You can take a look at the above production company business plan sample to learn how to write a production plan for a business plan.

• What are the 5 basic elements of a business plan?

The 5 basic elements of business plans for production companies or any general business plan are:

• Business Summary
• Services of a business
• Marketing Analysis
• HR Management Plan
• How do I write a simple business plan?

You can write your own business plan by following the template above.

• What are the 4 main parts of a business plan?

These 4 things make an essential part of business plan:

• Management Plan
• Marketing Plan

Download Production Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Overview of the plan production operations business process area

• 2 contributors

Applies to: Dynamics 365 Supply Chain Management

This article describes the business process area plan production operations . It explains the context of the process area, provides a list of the benefits of using Dynamics 365 to support the process area, and lists the processes within the area.

Planning production operations picks up where the plan supply and replenishment process area finishes. Production orders are either firmed from the generated planned orders or they're manually created. Then, the orders are organized into a production schedule that often includes sequencing or otherwise organizing production based on efficiency, due dates, and material and machinery availability. Once the production schedule is complete for the next time period, the information is sent to the shop floor, and the run production operations process area can begin.

This business process area should be included as part of the initial implementation, unless the business is only implementing financial business processes in the first phase. Additionally, some organizations choose to continue with a manual production planning and scheduling process and implement the functionality in Dynamics 365 Supply Chain Management in a later phase. The production planning functionality is flexible and can be adapted as the business changes over time.

Stakeholders

Many people across the organization should contribute to the decision-making process and design of the  plan production operations area. The list includes but isn't limited to the following roles:

Production stakeholders , such as production schedulers and production supervisors, provide details on the business requirements in this process.

Operations/Planning stakeholders , such as master planners, provide information about the upstream processes to generate the production plan.

IT stakeholders , such as business analysts, communicate information about expected performance of production scheduling activities and similar tasks.

Warehouse stakeholders , such as warehouse managers, describe the relationship between the production schedule and related warehouse work, such as picking and put-away of finished goods.

Plan production operations process flow

The following diagram illustrates the plan production operations business process area. Each solid gray rectangle on the diagram represents an end-to-end business process. The solid blue rectangle represents the business process area. The diagram shows the subprocesses for the business process area. The arrows on the diagram show the flow of the business process in an organization. If a subprocess can lead to more than one other subprocess, the parallel subprocesses are shown as branches.

The flow diagram covers the following steps.

A parallel branch from 1. Start includes the Plan to produce end-to-end process.

Plan production operations business process area

Define production strategies business process area

Schedule production operations business process

A parallel branch from 1. Start includes the Hire to retire end-to-end process.

Plan and recruit your workforce business process area

Forecast to plan end-to-end process

Plan supply and replenishment business process area

Modify production plan business process

Confirm production plan business process

• A parallel branch from 6. Confirm production plan includes the Outsource production operations business process area.

Release production to the shop floor business process

• A parallel branch from 8. Release production to the shop floor includes the Run production operations business process area.

Plan production operations benefits

Many key benefits can be used to monitor and measure the success of implementing technology to support the plan production operations area. The following sections outline the key benefits that an organization might monitor and measure for plan production operations .

Reduce equipment changeovers

By using Dynamics 365 Supply Chain Management features such as sequencing rules and batch order consolidation , organizations can increase efficiency in production by sequencing and grouping similar products in production. They can reduce the number of equipment changeovers or line cleaning activities, which allows for increased efficiency and throughput. Learn more about sequencing production in Dynamics 365 at Sequence production jobs for process manufacturing .

Improve decision making with visual scheduling

Dynamics 365 Supply Chain Management provides visual scheduling tools for the various modes of production, allowing production schedulers to easily review and adjust the schedule. Decisions can be made while using visual indicators of material availability, resource capacity, and preceding or succeeding operations. Learn more about visual scheduling in Dynamics 365 in the following articles:

• Gantt chart for job scheduling
• Visual scheduling for lean manufacturing

Increase on-time and in-full (OTIF) shipments

When organizations use the automated production planning and scheduling tools in Dynamics 365 Supply Chain Management, they can make sure that customer delivery dates are honored in the production plan. This way, they make sure that orders are prioritized appropriately in production to meet delivery dates.

If you want to implement Dynamics 365 solutions to assist with your plan production operations business processes, use the following resources and steps to learn more:

Define product costing overview

Define production strategies

Plan production operations (the article that you're currently reading)

Run production operations

Outsource production operations

Control production quality

Track production costs

Return to the overview of business process areas at Plan to produce business process areas .

Related resources

You can use the following resources to learn more about the plan production operations process in Dynamics 365:

Schedule a production order with operations and job scheduling

Kanban job scheduling for lean manufacturing

Mixed mode planning - Combine discrete, process, and lean sourcing

Find definitions of terminology used in content for planning production operations in the Glossary of terms in Dynamics 365 business processes article, including the following terms:

• Finished good
• Modes of manufacturing
• Production schedule
• Production strategies
• Raw material
• Subassembly
• Subcontracting

Contributors

This article is maintained by Microsoft. It was originally written by the following contributors.

Principal author:

• Anne Krupke | FastTrack Solution Architect

Other contributors:

• Phillip Seaton | FastTrack Solution Architect

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