Module 6 Production / Operations Development Manufacturing process • The selected manufacturing process must be described simply and clearly, preferably with the aid of flow charts and diagrams. The alternative processes and the way they compare with the chosen process must be mentioned. The analysis would further touch on the manufacturing process used in existing plants with the same or similar activity, both domestic and foreign What kind of processes will be followed What are the jobs to be done? What kind of layout will be best? What kind of technologies will be required? What will the production schedule be like? Macasieb - Gumnad 2 Plant size and production schedule State the minimum and maximum rated capacity of the plant. The minimum capacity is that level of production where the resources are not fully use, but are employed at a minimum economical level. in general the minimum economical level is the level of production where the firms fixed costs are determined in the financial study. the maximum capacity is that level of production where all resources are fully used From there, the actual capacity utilization, the number of shifts per day, and the number of operating days per year may be defined, The production schedule describes the projected scale of operations for the next several years. will production increase in time? By how much? The factors which will provide the answer, the expected growth in market share, the availability of financing for possible expansion, the availability of more raw materials, and the level of utilizations of plant capacity Machinery and equipment • Machinery and equipment required must be identified listed according to types and use. Specification, capacities and costs must be described in detail. likewise, the origin of the machinery, whether local or imported, as well as the manner of and cots of transporting them must be indicated. balancing capacities must be presented to show that the machinery and equipment are capable of producing the desired maximum output • What equipment and materials do we need? • Here can we buy them? • How much do they cost • What are our choices? Plant location • A thorough and comparative analysis for each potential location should be made to determine the most ideal plant site. • It has to consider the following factors: • The accessibility to and availability of raw material sources • The availability of cheap or moderately priced utilities such as power, water or fuel • The combined costs of transporting raw material and fuel to the plant site • The proximity to distributing outlets • The availability of skilled and unskilled labor • Location map showing where the plant will be situated • Desirability of location in terms of distance to raw materials, markets and other factors • Parking lot, roads • Rental • Floor areas involved Plant layout • The plant layout should be clearly depicted though diagrams and descriptions. A good plant layout is characterized by minimum material handling, effective space utilization, smooth work flow through the plant, safe and conducive working areas for the workers, safety and sanitation facilities and flexibility of arrangements • Exterior design • Interior design • Floor plan Macasieb - Gumnad 6 ⚫ Straight Floor Plan ⚫ Straight Floor Plan The straight floor plan is an excellent store layout for most any type of retail store. It makes use of the walls and fixtures to create small spaces within the retail store. The straight floor plan is one of the most economical store designs. ⚫ ⚫ ⚫ Diagonal Floor Plan The diagonal floor plan is a good store layout for self-service types of retail stores. It offers excellent visibility for cashiers and customers. The diagonal floor plan invites movement and traffic flow to the retail store. ⚫ ⚫ Angular Floor Plan The angular floor plan is best used for high-end specialty stores. The curves and angles of fixtures and walls makes for a more expensive store design. However, the soft angles create better traffic flow throughout the retail store. ⚫ ⚫ Geometric Floor Plan The geometric floor plan is a suitable store design for clothing and apparel shops. It uses racks and fixtures to create an interesting and out-of-the-ordinary type of store design without a high cost. ⚫ ⚫ Mixed Floor Plan The mixed floor plan incorporates the straight, diagonal and angular floor plans to create the most functional store design. The layout moves traffic towards the walls and back of the store. Building and facilities • The site, types and costs of the building and land, should accurately presented. The construction costs of the building and facilities should be presented as adapted to the machinery and equipment they will used in the project. Land improvement such as roads, drainage facilities and their respective costs should be computed and included Macasieb - Gumnad 10 Raw materials and supplies The required raw materials and supplies should be listed down and the basis for their selection must be present. descriptions and specification on their physical, mechanical and chemical properties must also be given. Current and prospective cost of raw material, the availability and continuity of supply and the current prospective sources should also be included. The volume required at various phased of the operations must be clearly presented Current and prospective costs of raw materials, terms of payment Long term contracts Availability continuity of supply, current and prospective sources Comparison of suppliers Utilities • This portion describes the amount, costs and sources of electricity, fuel, water and or steam required. This must be determined in relation to the production schedule and capacity utilization defined. Alternative sources of these utilities and the feasibility of their use must also be described • Electricity • Water • Fuel Waste disposal A description of the quantity, manner of disposal and the costs involved in doing away with the expected waste from production is necessary. The analysis must be expanded to consider the possibilities of further using these wastes Description of quantity and quality of waste material Description of waste disposal method Cost of waste disposal Module 7 Organization and Management Types of Business Structures Organized under Philippine Laws Sole Proprietorship This is the simplest and least formal type of business structure, where a single individual has full control and authority over the business. The owner or proprietor owns all the assets of the company but is also solely responsible for all its liabilities. In other words, the owner and the business are the same entity. Foreigners are not allowed to own a business in the Philippines solely. Types of Business Structures Organized under Philippine Laws Partnership A partnership is formed when two or more individuals own the business. The Civil Code of the Philippines treats a partnership as a juridical person, which means its legal personality is separate from that of its business owners. There are two kinds of partnership: general and limited. In a general partnership, business partners share unlimited liability for the debts and obligation of the company. On the other hand, limited partnerships are called as such since some partners will have unlimited liability, while others will have liability equal only to the amount of their capital contribution. Types of Business Structures Organized under Philippine Laws Corporation Corporations are owned by a minimum of five (5) and a maximum of 15 shareholders. Each of the incorporators must hold at least one share in the corporation, and their liability is limited only to the amount of their capital share. In the Philippines, a corporation is treated legally as a personality separate and distinct from that of the stockholders who own the corporation. The corporation should be SEC-registered, with a minimum paid up capital of P5,000. A foreigner can have up to 40% ownership in a corporation. An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. 18 The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. Each division essentially operates as its own company, controlling its own resources and how much money it spends on certain projects or aspects of the division. TEAM The team slide and demonstrating why this team is superior here’s what investors look for in the team: Have they worked in a similar startup? And here there are of course bonus point if the previous startup was a success Have they worked in a similar market? Here there are especially bonus points for having people on board who has worked at any of your identified competitors Have they worked with similar technology? Is the team diverse? Ideally, investors like to see at least a tech/product person, a salesperson and a financial person in the team. Has the team worked together before? The longer you’ve worked together, the less risk there is that things blow up and you leave because you hate the sight of each other.
