Session 5.

2
TECHNICAL PLAN
This section presents the production and operational aspect of the business. At the end
of the session, the learners shall be able to:
1. Outline manufacturing process and identify resources needed for each process.
2. Describe company’s operation and the flow of orders for good and/or services.
3. Illustrate a physical plant (floor plan) depicting the flow of movements.

Lecture:

The product and service description describes the features of your product or service, the
unique selling points offered by your product or service, and how your product or service satisfies
client needs and expectations.
Type of Business Operation
✓ Production/Manufacturing- type of business that converts inputs such as materials, labor
and overhead etc. into finished products.
✓ Service – type of business that provides services, instead of products
✓ Merchandising – type of business that sells products to its customers
✓ Other

Product Description and Specification

This includes product information such as product description, product technical details,
product drawing and specifications. You may also include her the product name and product logo
to be able to provide identity to the product and/or service of the company.

Material Requirements
This includes information such as direct and indirect materials needed to produce a product
or to render service. Similarly, this section presents whether the materials are design for
manufacture (DFM) of design for assembly (DFA). Example: if you will produce a cabinet, the
direct material such as wood is considered a DFM materials because it will undergo process of
cutting, polishing, and painting. On the other hand, direct materials such as screws, nails, hinges
are considered DFA materials because they are ready to use for assembling the product. Indirect
materials are those materials used in packaging the product, or materials used in making the
product but do not become part of the product itself.
 Also included in this section are the machineries and equipment needed to facilitate
production of goods and/or services. It is also important to have the list of suppliers to identify
the sustainability and availability of supplies.

Labor Requirements
Manpower or workers are one of the important resources needed to run a business. Here,
labor requirements are referring to the direct and indirect workers involved in production
department. List the number and types of employees you need to run your business now and
that you might have to employ in the future as your business grows.

Manufacturing Process
Manufacturing processes defined by a specified combination or sequence of steps, or
by a particular operation on a particular material or component. The manufacturing process
consists of many procedures and consumes plenty of resources and energy.
When a manufacturing company begins production of a new material, it has a choice
as to the manufacturing process it uses. The type of process depends on the facility, the staff,
and the information systems available. Each process has its advantages and some are best at
certain tasks, for example, large batches of finished goods, or small numbers of custom items.
When the decision is being considered about which manufacturing process to use, there are a
number of questions that should be asked; what are the volumes to be produced, what are the
requirements to make the product, and does the company manufacture a similar product? There
are a number of basic manufacturing processes that they can select from; production line,
continuous flow, custom manufacturing, and fixed position manufacturing.