Bakery Business Plan Chapter IV

CHAPTER IV PRODUCTION PLAN PRODUCTION FACILITIES AND CAPACITIES In our bakery we use quality material in order to produce good product at the end using the advanced technology reliable with no side effects to the customers. As we started the organization man power was the only technology but due to the time e improved to a modern that reduced delays in production thus improving the efficiency. As we started using modern machines we used to lease from other companies but due to the high cost incurred, we were forced to purchase our own and also we had to employ qualified personnel who are the technicians. The machines we are using, their spare parts are locally available thus reducing funds that could have been used to travel distant places. Because the number of customer rose at a higher rate and the demand increased we had to buy machines that were powerful and experience that were able and efficient in conducting and performing the task more powerful. EQUIPMENT NUMBER COST TOTAL Oven 5 Ksh.26,000 Ksh.130,000 Proofer 4 5 6 8 Ksh.12,000 Ksh.48,000 Ksh.24,000 Ksh.120,000 Ksh.28,000 Ksh.168,000 Ksh.2,500 Ksh.20,000 10 12 Ksh.3,000 Ksh.30,000 Ksh.4,000 Ksh.48,000 Refrigerator Mixer Shelves Showcase Furniture Ksh.564,000 FLOOR PLAN 1: SHELVING AREA 2: RACK AREA 3: COOLER 4: CASH REGISTER PRODUCTION STRATEGY The bakery can decide whether to use premixed or self mixed ingredients. Special suppliers or flour companies will provide you with a premix which includes all ingredients needed to make the products which include flour, yeast, milk, salt, sugar, water, cooking oil. TYPE OFRAW FREQUENCY SOURCE MATERIAL QUALITY Flour Yeast Milk Salt Sugar Daily Daily Daily Daily Daily Flour Mill Shop Flour Mill Shop Free Harvest Jooiz Supermarket Tek sugar company 20 sacks 10 sachets 100 litres 5 packets 2 sacks Water Cooking Oil Food color Eggs Daily Daily Daily Daily Borehole point Zion company Flour Mill shop Dion poultry Farm 200 litres 80 litres 10 sachets 5 crates COST TOTAL 4,000 Ksh.80,000 130 Ksh.1,300 100 Ksh.10,000 200 Ksh.1,000 10,00 Ksh.20,000 0 100 Ksh.20,000 100 Ksh.8,000 120 Ksh.1,200 250 Ksh.750 Ksh. The raw materials are always available in the whole year. Since we have our own vehicles which are normally used to transport the materials we do not incur more on transportation cost thus saving funds. At the end of every month the organization uses approximately Ksh.600, 000 to pay the workers. By now the organization has a lot of equipment that generate a lot of money through leasing to other companies and outsourcing some services by our qualified personnel in the organization. The production labor cost per month amounts to Ksh. 4.3M that is Ksh. 4,300,000 while the total money that the organization uses per month is; OVERHEAD Rent Security Water AMOUNT Ksh.40,000 Ksh.60,000 Ksh.10,000 Ksh.110,000 TOTAL The organization also incurs a lot of capital by paying to the government rules and regulations including permits, taxes and licenses. PERMITS/LICENCES SOURCE Single business permit Value Added tax Parking fee Local taxes County Government National Government County Government County Government COST Ksh.10,000 Ksh. 5,000 Ksh. 3,000 Ksh. 2,000 TOTAL Ksh. 12,000 REGULATIONS AFFECTING OPERATIONS HEALTH In terms of health, the organization has its own medical centre where if someone has an injury he or she can be given first aid and if serious referred to the nearby county referral hospital the organization being in charge of the cost to be incurred.