Mahesh, an entrepreneur is planning to enter into a new business of manufacturing laptop bags with an inbuilt lock facility. Being highly complex and tedious, its manufacturing operations need to be well planned. He decides that the complete bag will be manufactured at his own factory i.e. no part of its manufacturing process will be outsourced.
Identify the important component of business plan that is discussed above. Also, state what needs to be described in the above stated manufacturing situation.

Question

Mahesh, an entrepreneur is planning to enter into a new business of manufacturing laptop bags with an inbuilt lock facility. Being highly complex and tedious, its manufacturing operations need to be well planned. He decides that the complete bag will be manufactured at his own factory i.e. no part of its manufacturing process will be outsourced.

Identify the important component of business plan that is discussed above. Also, state what needs to be described in the above stated manufacturing situation.

Accepted Answer

Production Plan. Complete Manufacturing: If the manufacturing is to be carried out in whole by the entrepreneur, he/she will need to describe: i) the physical plant layout, ii) the machinery and equipment required to perform the manufacturing operations, iii) raw materials and suppliers' names, addresses, terms and conditions, iv) cost of manufacturing, v) any future capital equipment required etc.