ORGANIZATIONAL

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PLAN
& PRODUCTION PLAN
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Table of Contents
 What is Organizational Plan?

 Four phases of a proper Organizational Plan

 Strategic Planning

 Tactical Planning

 Operational Planning

 Business Contingency

 Discuss about Production Plan

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ORGANIZATIONAL PLAN

 Organizational planning is the process of defining a

company's reason for existing, setting goals aimed at
realizing full potential, and creating increasingly
discrete tasks to meet those goals. There are four
phases of a proper organizational plan: strategic,
tactical, operational, and contingency.
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PHASES OF
ORGANIZATIONAL
PLAN
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STRATEGIC PLANNING
 The purpose of strategic
planning is to set overall goals
for your business and to
develop a plan to achieve
them. It involves stepping back
from your day-to-day
operations and asking where
your business is headed and
what its priorities should be.
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TACTICAL PLANNING
 Tactical planning occurs after a
business, team, or individual
has created a strategic plan
that outlines general goals and
objectives. A tactical plan
describes the steps and
actions that must be taken to
achieve the goals from the
strategic plan.
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OPERATIONAL PLANNING
 Operational planning is the
process of creating actionable
steps that your team can take
to meet the goals in your
strategic plan. An operational
plan outlines daily, weekly, and
monthly tasks for each
department or employee.
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BUSINESS CONTINGENCY PLAN

 A business contingency plan is a

strategy for how your organization
will respond to important or
business-critical events that knock
your original plans off track.
Executed correctly, a business
contingency plan can mitigate risk
and help you get back to business
as usual—as quickly as possible.
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PRODUCTION PLAN

 The production plan presents or describes activities

related to the production of goods. The production plan is
the result of the industry analysis, particularly the study
of supply and demand and consumer behavior.
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PRODUCTION PLAN
 The production plan usually includes the following:

 1. Production schedule

 2. Production process

 3. Processing plan and equipment

 4. Sources of materials​

 5. Production cost
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PRODUCTION SCHEDULE

 The production schedule

presents the total number of
goods to be produced and the
expected time to produce
them.

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PRODUCTION PROCESS

 The different processes or stages involved in the production of

goods must be clearly spelled out in this section, as well as
the description of the following:

 - Exact processing procedure.

 - Materials, parts, or ingredients required.

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PROCESSING PLAN AND EQUIPMENT

 This section of the production plan describes the

manufacturing plant, the machinery and equipment, and the
various tools to be used in the production of goods, including
their respective estimated cost. It also talks about the location
of the processing plant and the reason for the selection of the
site. In most instances, the layout of the processing plant and
the factory building is illustrated. The general perspective
presents the general view of the manufacturing plant.
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SOURCE OF MATERIALS

 The possible sources of raw material and manufacturing

supplies must be described in terms of the following:-
Proximity of the source to the processing plant

 - Payment terms and conditions

 - Discounts and damages- Terms of shipment

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PRODUCTION COST
 This section of the plan must show the estimated cost of
production. The three elements of cost, namely labor, direct
materials, and factory overhead must be properly described and
accounted for. In the event that the final product involves the
use of several direct or indirect materials, all the materials used
in the production of goods must be properly listed and provided
with the cost. The total cost of the proposed product may serve
as the basis in setting its selling price, which must not be lower
than its production cost.
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