Question

‘Bharat Ltd.’ is a manufacturer of electronic items. In 2022-23, the company decided to enter into manufacturing Artificial Intelligence-based computers. Being highly complex and tedious, the manufacturing process of these computers needed to be thoroughly planned.

1. Identify the component of business plan discussed in the above paragraph.
2. State the objective of the component identified in (a) above.
3. List five points that are needed to be described in this component of business plan, if the manufacturing is to be carried out in whole by ‘Bharat Ltd.’.

Answer 1

1. The component of the business plan discussed in the paragraph is the Production Plan.
2. The Production Plan’s goal is to describe the manufacturing process, list required resources, establish quality control measures, and ensure smooth production to meet market demand.
3. If the manufacturing is to be carried out in whole by the entrepreneur, he/she will need to describe:
   1. the physical plant layout,
   2. the machinery and equipment required to perform the manufacturing operations,
   3. raw materials and suppliers’ names, addresses, terms and conditions,
   4. cost of manufacturing
   5. any future capital equipment required, etc.