4.

OPERATIONAL AND PRODUCTION PLAN

In this chapter I will talk about the pertinent features of the operational plan which are as
follows;

a) Production facilities and capacity

b) Production strategy
c) Production process
d) Regulations services

A) Production Facilities and Capacity

The table below shows machinery and equipment and their capacities, number of machines,

acquisition method and supplier.

Serial Description No. of Acquisition Supplier Remarks

Machines method
No.

1 Laptop 4 purchased Bigman

electronics

2 Desktop 10 purchased Bigman

computer electronics

3 Printer 2 purchased Bigman

electronics

4 Photocopier 2 purchased Bigman

electronics

5 Digital 4 purchased Garrun Hire 2 on

camera demand
electronics

The machines and equipment repair and maintenance will be on a weekly basis or as per need
arise. The spare parts are readily available to be supplied by the above suppliers and any spare
that is not available in the market will be imported. The cost of spare parts will be
approximately Kshs. 10,000.

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I will open other branches in the other parts of Garissa when I expand and unable to work in
this space. In the near future I shall also need land to build a bigger workshop for production to
meet my demand. I will also need two motorbikes.

B) Production Strategy

The table below shows the materials required per month, source, cost, transportation, number
of direct and indirect workers, their level of skills and total labour cost per month.

SERIAL MATERIAL SOURC COST TRANSPO NO. OF LEVEL OF TOTAL Remark

S E - DIRECT & SKILLS LABOU s
NO. IN INDIRECT R COST
KSHS RTATION WORKER OF PER
S WORKER MONT
S H

1 HD Bigman 650 50 2 1-skilled 1400 Hired

Camera
1-
unskilled

2 Laptop Bigman 4000 100 1 Skilled 40000

0

3 Paper Cbd 900 200 3 3- 3300

reams unskilled

4 Desktop Bigman 2800 100 4 1-skilled 11600

0
3-
unskilled

5 Lights Mirax 5000 40 1 skilled 5400

The following table shows a list of preliminary production cost, production overheads and total
production cost.

Number Preliminary Amount Production Overheads Amount Total

Production Cost Production
Cost Cost
percentage

1 Business 2000 5 100 2100

registration

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 2 Water 5000 3 450 5450
installation

3 Electricity 3000 5 1750 4750

4 Rent + deposit 10000 7 4900 14900

5 Trading 15000 5 2250 17250

license

6 Telephone 6000 2 300 6300

installation

7 Internet 7500 5 375 7875

installation

8 Insurance 20000 2 400 20400

policy

9 Installation 50000 10 8000 58000

expenses

C) Production Process

The following is a breakdown of cost of production per unit

Take hollow blocks as an example;

Given raw video, edit, give it effects and make final quality video.

Production is affected by some factors both external and internal.

External factors

1. Lack of skilled manpower

2. Government policies
3. Poor infrastructure
4. Lack of raw materials
Internal factors

1. Lack of funds to produce

2. Lack of proper machinery and equipment
3. Poor management
We will put in place proper strategies to minimize both internal and external factors as follows

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Plans to minimize internal factors

1. Manage funds well

2. Hire or lease and purchase proper machines and equipment
3. Ensure right management skills is employed
Plans to minimize external factors

1. Consult with government agencies more

2. Employ skilled manpower
3. Import raw materials

D) Regulations Affecting Operations

In business I am aware of governmental regulations, compliances and approvals that likely are
to affect my business. I shall adhere to the following as shown in the table below;

Numbe Permits and Where to be Cost Local taxes Approvals Cost

r licenses obtained and
required compliances

1 Business Garissa city 2000 PAYE NEMA 1500

permit council offices

2 Safety permit Garissa city 500 VAT NEMA 500

council offices

3 Good DCI Offices 1100

conduct

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The following is the site layout plan where Sarun Video is located and its offices.

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