Operational Plans – Facilities and Improvements

  •  What are your sources of raw materials or components, lead times, availability, price volatility, and key suppliers?
  •  Are any of your raw materials restricted to one source, or unique in design and composition?
  •  What resources do you need to manufacture your product–manufacturing facilities, machinery, equipment, materials, and labour?
  •  What are some specifics on the machinery and equipment you are buying–capabilities, drawbacks, vendors?
  •  What does your facility look like (talk about size, location, clearance, loading docks, proximity to rail outlets and airports)?
  •  Does your site have any advantages in terms of wage rates, labor unionization, labor availability, closeness to customers or suppliers, access to transportation links, state and local taxes and laws, utilities and zoning?
  •  How long do you think it will take you to set up shop and complete your first full production run?
  •  Is your equipment and space owned or leased?
  •  How much of your financing will you put towards your plant and equipment?
  •  What processes will you use in manufacturing?  Are any of these special or unique?
  •  Will you need any special facilities to either manufacture your product, or test and inspect your product after manufacturing?
  •  Will you operate on an assembly line or job shop basis?
  •  Do you have any production advantages over your competitors?
  •  Is your manufacturing process labour intensive, or does it depend heavily on automation?
  •  How many people will you need to manufacture your product?
  •  Will your workers be full- or part-time, skilled or unskilled?
  •  What part of your manufacturing process will be done in-house, and what part will be contracted out?
  •  What are the limitations of your manufacturing output?  Will these hinder your future growth?
  •  Do you anticipate any future equipment needs?  If so, when, and how much will they cost?
  •  How much service and maintenance does your equipment require?
  •  What are your standard costs for production at different volume levels?
  •  Do you have any quality control measures in place, and what is your anticipated defect rate?