What will be the effect on Production Plan in the following situations:
a. When there is no manufacturing b. When there is partial manufacturing c. When there is complete manufacturing

Question

What will be the effect on Production Plan in the following situations:

a. When there is no manufacturing b. When there is partial manufacturing c. When there is complete manufacturing

Accepted Answer

(a) No manufacturing involved: If the venture is a trading firm or service provider, this section of the production plan is eliminated. (b) Partial manufacturing: If some or all manufacturing is subcontracted or outsourced, the plan should describe the name and location of subcontractors, reasons for selection, cost and time involved, and any completed contracts. (c) Complete manufacturing: If manufacturing is done entirely by the entrepreneur, describe the physical plant layout, machinery and equipment required, raw materials and suppliers, cost of manufacturing, and future capital equipment required.