Enterprise production plan - what it is, features of its preparation

Features of drawing up a production plan

After the leading sections of the production plan have been outlined, it is necessary to determine and predict the indicators used to justify professional calculations. Using a standard business example, the following parameters are clarified:

  • Cost of utilities. Almost any business production requires the use of electrical networks, gas, water consumption and sewerage. When determining the production plan, the costs of services of specialized companies are taken into account by month, quarter, and year;
  • Before drawing up a production plan for a business plan, it is important to determine the level of costs for paying wages to staff. It is quite possible that this will be the largest expense item in the first year of operation;
  • In the technological plan of a business, it is important to include supply. For certain categories of production, different formulas for cost and derivation of the ratio to sales can be used. The classic proportion of production in business is to calculate profitability 1:2. That is, if the cost of executing a unit of goods is 1 ruble, it should ultimately cost at least 2.

Production planning diagram

In addition to the costs included in business planning, the company's revenue is also taken into account. These include profit margins, efficiency in attracting qualified talent, and return on investment. Here it will be important to reflect the impact of production costs on the business.

Main principles of production process planning

Planning and organization of the production process is the ability to predict the goals and results of the company's activities and determine what resources are required to achieve the designated goals.

It is necessary to develop a production plan based on the following scientific principles:

  • The principle of the need for planning . This principle requires the mandatory and widespread application of plans for any process in the enterprise. If you neglect this, then some operations will be performed incorrectly or the change in orientation will occur at the wrong time. This can lead to a crisis in the enterprise or even its collapse.
  • The principle of continuity . He proclaims the need to plan production activities continuously, so that the plans drawn up follow one another without time gaps. For example, medium- and long-term plans require constant review and adjustment - always taking into account current circumstances. And since annual plans are developed on the basis of medium-term plans, they also need to be adjusted.
  • The principle of unity . It requires consistency when drawing up a consolidated plan for the socio-economic development of the company - it should be developed based on individual plans of the divisions and services of the organization, and must be linked to the general plan.
  • The principle of flexibility . It assumes the need to create plans, the focus of which can be changed depending on the situation on the market and within the company (level of demand, prices and tariffs). Not only plans should be flexible, but also the planning process itself.
  • The principle of precision . This principle speaks of the need to create the most accurate plans - as far as possible for the organization. The accuracy must also be sufficient to solve emerging problems. Its degree varies depending on the level of planning: the lower it is, the higher the degree of accuracy.
  • The principle of participation . The point is that it is necessary to involve every department of the organization, every element of the production process in the production planning process.
  • The principle of validity of goals and focus on achieving the required result . In accordance with this principle, the activities of all levels of production should be aimed at achieving a single goal that is a priority. This follows from the systematic nature of the planning process.

In addition to the above principles, when drawing up plans, we are guided by general principles, such as scientific, systematic, comprehensive, optimal, priority, objectivity, specificity.

Classification of production plans

Before you start working on a paragraph, you need to decide on the type of final result. This may be an aggregate section of the production business plan, a leading schedule of work performed and a supply plan. Depending on the frequency of work, they can be short-term (up to 2 years), medium-term (up to 5 years) and long-term (10 years and longer). When planning the creation or expansion of a large company, it is recommended to work out all types of production process plans. This will best reflect the picture of profitability.

Contents of the “production plan” section

The structure of the descriptive part of the technological process is inextricably linked with the expenditure of investments and the further distribution of finances into own working capital. Taking into account the features of the production plan, the following structure is used when drawing up project documentation:

  • Description of the main production technology that is used to manufacture the target product according to plan. This part of the project describes in detail all stages of the technological process - from the purchase of raw materials to sale to the consumer. If the workflow planning is based on a unique manufacturing method, the costs and time for patent approval should be included;
  • Description of the algorithm for purchasing raw materials, leading suppliers, and the cost of inventories. It would be advisable to include in the characteristics of the production plan the organization of transportation, storage and delivery to the production line, as well as methods for recycling waste raw materials;
  • Description of the premises, territories, land plots involved. In conditions of limited resources for opening an individual enterprise, it is advisable to attract capacities and transport on a lease basis.

The production part of the business plan contains the procedure for supplying energy resources or a plan for modernizing existing utility networks

This section should also include costing rules for determining the cost of finished products.

It is important to take into account that the technical and economic indicators of the business plan include the fixed and variable costs of the enterprise.

Structure of the production section of the business plan

Essentially, the purpose of this chapter is to familiarize the investor with the production process, the list of necessary equipment and the number of personnel. In other words, the production plan must show that you are able to organize the production of the required volume of high-quality goods, as well as establish the sales process and prepare the necessary space within the planned time frame.

If we are talking about an enterprise that is focused on the production of a certain product, the first thing you need to clarify is whether you are the owner of an existing production facility, or are just planning to open it.

Often the key guideline for writing this section is the product sales plan. Therefore, you need to describe in detail exactly how you plan to produce products and consider in detail all the stages of creating your product or service. Each position described should include an approximate time frame, as well as the costs that will be required to organize it.

Description of the production process

If you are planning to open a production facility, you definitely need to describe all the stages and features of the technological process, starting with the purchase of consumables and necessary raw materials, and ending with the sale of finished goods (even if you are planning to open a store, then a shortened version of the process from the delivery of goods to their placement in store and sale is simply necessary).

Think about how exactly you can modify this process. Describe your considerations and all the necessary activities and expenses for this. Particular attention should be paid to the structure and composition of production facilities. If you are planning to open a factory or, for example, a plant, this information should be presented in a special annex attached to the plan.

Description of raw materials and their suppliers

Supply issues should be a separate item. Describe what raw materials and supplies are required for production, and how exactly you plan to transport and store them. Moreover, you should also indicate how exactly you are going to carry out quality control and monitor timely deliveries, and whether there are alternative suppliers of raw materials in case of problems with existing ones.

Production premises and land plots

Next, you need to describe whether you own land, suitable buildings, raw materials or equipment. Where will the production be located, where is the warehouse for raw materials, where is the warehouse for finished products. If not, describe what kind of premises, equipment, etc. you plan to purchase or rent, what time frames will be required for paperwork and installation of equipment, and how much it will cost the company (information about the purchase of premises, equipment, and land plots will need to be indicated in the investment section of the business plan).

Energy supply

Again, if your project involves the opening of a serious production facility, you also need to describe the main issues of energy supply, namely the capacity of energy sources, their cost, availability on the market, and the possibility of temporarily replacing existing sources in the event of accidents and malfunctions.

Production costing and costing

In this section it will be necessary to show what costs of raw materials, materials or energy resources will be spent on the production of one unit of the project’s product. After which its cost must be calculated and the marginal profit of the product planned for production must be shown.

Fixed production costs

Remember, if you are planning to open a store, salon or other enterprise that does not involve the production of products, but only the sale of certain goods or services, this section of the production plan will be less detailed and highly specialized, but this does not mean that it can be completely ignored. In this case, you need to describe the area of ​​your establishment, retail outlet, etc., dividing them into special zones, indicate all the amounts required for equipping the premises, purchasing raw materials and starting the sales process, as well as maintaining and developing the enterprise.

Production resources and sales program

The standard classification of technical supply allows you to most accurately determine sources of consumption in order to justify production volumes in a business. In most cases, project documentation developers adhere to current standards. What applies to the resources described in the production and sales program:

  • Material supply – working capital, capital, land and energy supply;
  • Intangible resources. The production plan of the enterprise according to the model includes a description of patents, copyrights, brands and software used;
  • Personnel are presented as a key resource in any business idea to fulfill the current and future objectives of the enterprise;
  • The business plan should reflect the calculation of the need for labor resources, including the load on the factor of entrepreneurial ability and the administrative apparatus;
  • In the central section of the production plan, funds from various sources of origin are taken into account. This could be the money of the founders, the current assets of the enterprise, or attracted investments. Material factors of production have a direct impact on company processes. If they are insufficient, there is an increased risk of supply shortages or the inability to ensure the viability of other resources.

Key resources of the organization

The implementation program includes economic calculations of profitability, quality indicators of fixed assets, the amount of equipment depreciation and other figures.

What is included in the production plan

In the production plan, a large number of business processes relating to all areas of the planned business are justified and calculated. The main components of this part of the overall plan are:

  • product range, costs and expenses for the production of each unit;
  • costs for quality control and compliance with technical conditions and GOSTs;
  • the required volume of raw materials in warehouses and production;
  • unit cost of production and costs of its production;
  • logistics costs;
  • cost of goods and services;
  • optimal number of personnel;
  • costs for purchasing new and upgrading existing equipment;
  • production capacity;
  • depreciation costs for equipment and buildings;
  • expenses for training and advanced training of personnel;
  • rental payments;
  • determining the list of works that can be subcontracted and outsourced;
  • taxes;
  • profit under various development scenarios.

In addition to these indicators, the production plan must include requirements for the technologies used, which take into account:

  • characteristics of production areas, their size and zoning;
  • possible suppliers of equipment, comparative analysis of prices and technical features of machines and machines of similar performance;
  • production technologies, the cost of patents, the possibility of using one’s own developments.

This list of indicators is quite arbitrary, since the production plan depends on the characteristics of each specific business. The main thing when drawing up this section of the general business plan is to take into account all possible factors influencing the final result of the enterprise.

When forming a production plan, it is also important to clearly know the methods and formula for calculating reduced costs. This will help to more clearly define all the necessary indicators.

Justification of the premises

The location (location) of concentration of production capacity must at least correspond to the specialization of the organization in the chosen direction. Along with the choice of equipment and technology, the space used will be of particular importance. As a business location, buildings suitable for functionality (idle factories with similar characteristics) can be selected or a project for the construction of a new factory can be drawn up.

This should include calculations for storage facilities, boxes and other types of premises that will be used in business activities. The documentation should also take into account existing utility networks and their suitability or the installation of new communications.

Monitoring the implementation of the production plan

In any planning, one of the key elements that are responsible for the effectiveness of using the plan for business purposes is the analysis and control of the implementation of the established plan. The production plan itself, in the absence of tools for monitoring its implementation and without regularly assessing its effectiveness, is a completely useless document.

That is why it is recommended to provide for a procedure for monitoring the implementation of established indicators in the document itself. Thus, it is necessary to prepare periods during which the implementation of plans will be assessed, establish the forms of documentation used for reporting and the procedure for submitting such reports, and also provide for certain actions in case of discrepancies between planned indicators and real ones.

Monitoring of the plan should be carried out for all indicators considered in it, and include a comparison of actual results with expected ones. The optimal frequency of production plan review and analysis depends on the nature of the company's activities, but it is usually performed at least monthly when establishing a production plan for a calendar year.

In addition to control, regular adjustments to the plan are also of great importance. Particularly in situations where actual performance turns out to be very different from actual performance, the plan for the entire period may need to be revised in its entirety to take into account the information received and to ensure more realistic planning under the new circumstances.

Selection of transport

Sample business plans often contain calculations for the supply of supplies or the distribution of finished products. A vehicle fleet is not always profitable to maintain by a non-core company. Auxiliary transport of universal use can play an important role in the development of business in production. Used cars (for example, a gazelle) are perfect for meeting current business needs. Having your own car will allow you to save on carrier services, at least at first.

The organizational plan of a business associated with large volumes of production will require the purchase of a fleet of vehicles. This could be special equipment or a shipment order. In the early stages of development, it is possible to attract private carriers, for example, for one-time shipments. Engaging services on such terms will allow you to save about 30-40 percent of the budget on transportation.

Example of a production plan

Download ready-made business plan examples:

Business plans example for auto business

Business plans. Download ready-made examples of business plans related to the auto business, cargo transportation, equipment production and transport maintenance.

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Business plans example in the field of education and consulting

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Business plans for the financial sector and B2B

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Business plans for internet and communications businesses

Business plans related to Internet business, high technology and software.

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Business plans example of food production

Business plans. Examples of ready-made business plans for food production

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Business plans for catering

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  • Food delivery to the office. How to make money delivering ready-made meals 2020
  • Your own business: opening a herbal bar 2019
  • Your own business: how to make money on pizza in a cup 2019
  • Chebureks of the 21st century: nostalgia in a new business format 2019
  • Your own business: how to open a point selling “coffee to go” 2019
  • Pizza that cooks itself: how to make money from pizza machines 2019
  • WOKcircle of catering: opening our own noodle shop 2019
  • Your own business: how to open a restaurant from scratch 2019
  • Your own business: how to open a summer cafe 2019
  • Your own business: how to open an ice cream parlor from scratch 2019
  • Your own business: how to open a pancake kiosk 2019
  • Your own business: how to open your own point selling Hong Kong waffles 2018
  • Your own business: opening a juice bar 2018
  • Your own business: how to open a pizzeria from scratch 2018
  • Your own business: selling corn dogs 2018
  • Your own business: production and sale of shawarma 2018
  • Sushi bar business plan 2017
  • Business plan for a pie cafe 2017
  • Your own business: business plan for a yogurt bar 2017
  • How to open a bar: step-by-step instructions 2017
  • Smoothie bar business plan 2017
  • Dumpling business plan 2017
  • Fruits in caramel. Profitable business for 70 thousand rubles 2017
  • Ready-made business plan for a premium format cafe-confectionery 2017
  • Your own business: how to open a burger shop from scratch 2017
  • Business plan for the Glazur confectionery 2017
  • Business plan for pizzeria “ExoPizza” 2017
  • Catering Market Review 2016
  • Business plan for cafe-khinkalnaya 2016
  • Business plan for a pancake cafe 2016
  • Sports bar business plan 2016
  • Business plan for hookah club 2016
  • Business plan for the canteen “Sit and Eat” 2016
  • Kebab shop business plan 2016
  • Ready business plan for a pancake shop
  • Example of a business plan for opening a pizzeria
  • Example of a pizzeria business plan
  • An example of a business plan for a catering outlet in a business center
  • Bistro business plan
  • Ready-made coffee shop business plan
  • Fast food cafe business plan
  • Example of a cafe business plan
  • Business plan for opening a cafe chain

Business plans example in the field of real estate, construction and design

Ready-made business plans for enterprises operating in the field of real estate, construction, renovation and design.

  • Your own business: how to make money in 2020
  • Your own business: how to open a self-tapping screw production 2018
  • Building materials store: profitability, assortment, starting purchases 2018
  • Your own business: workshop for manufacturing furniture using the carriage screed method 2018
  • How to open a carpentry shop in the era of hypermarkets 2018
  • Business plan for an enterprise for the production of frame-modular buildings 2018
  • Business plan for a design studio 2017
  • Ready business plan: building materials database 2016
  • Example of a real estate agency business plan
  • Business plan for the production of office furniture
  • Business plan for a residential complex
  • Furniture production business plan
  • Business plan for the production of ceramic bricks
  • Brick factory business plan
  • Business plan for the production of roofing materials
  • Business plan for the production of building materials
  • Business plan for the production of tiles and paving slabs using sand-polymer technology
  • Business plan for the production of metal-plastic windows and doors
  • Business plan for window production
  • Methanol production business plan
  • Business plan for the production of metal-plastic structures
  • Mirror production business plan
  • Lumber production business plan
  • Ready-made business plan for wood processing production
  • Wood processing business plan
  • Business plan for the production of electrical equipment
  • Business plan for the production of reinforced concrete structures
  • Business plan for a reinforced concrete products plant
  • Training business plan for an industrialized nuclear power plant
  • Business plan for a production workshop
  • Transformer production business plan
  • Business plan for recycling household waste
  • Business plan for the production of computer furniture
  • An example of a business plan for opening a cabinet furniture production
  • Business plan for the production of asbestos-cement sheets
  • Business plan for the production of metal structures
  • Construction company business plan
  • Business plan for the construction of log houses

Business plans example for light industry

A selection of free business plans for light industry enterprises

  • Your own business for the production of paper bags and bags 2020
  • Business plan for furniture production 2019
  • Opening a brick production workshop 2018
  • We are opening a workshop for the production of cinder blocks 2018
  • Business plan for organizing the production of polypropylene monofilament 2017
  • Business plan for an enterprise for the production of ash blocks 2017
  • Business plan: organization of production of asphalt concrete mixture for road construction 2017
  • Business plan for a can production enterprise 2016
  • Business plan for the production of metal-plastic windows 2016
  • Business plan for a mobile concrete plant 2016
  • Business plan for a workshop for the production of church candles 2016
  • Market overview: coal production 2016
  • Textile Industry Market Review 2016
  • Machine tool market review 2016
  • Production of artificial surfaces for winter sports 2016
  • Ready-made business plan for the Pili-Pila sawmill 2016
  • Business plan for the production of fiberglass reinforcement 2016
  • Business plan for clothing production
  • Ready-made business plan for a sewing workshop
  • An example of a business plan for organizing bed linen sewing
  • Business plan for bed linen production
  • Business plan for a clothing modeling company
  • Business plan for the production of house shoes

Business plans examples for agriculture

Collection of ready-made business plans for agriculture

  • Beekeeping from scratch: how to open your own apiary in 2020 2020
  • Poultry meat. Production business plan 2019
  • Greenhouse business plan for growing greens 2017
  • Business plan for growing flowers in greenhouses 2017
  • Business plan for growing cherry tomatoes indoors 2017
  • Farm Animal Feed Market Review 2017
  • Review of the pea market in Russia 2017
  • Overview of the grain corn market in Russia 2017
  • Review of the egg market in Russia 2017
  • Review of the Russian duck meat market 2017
  • Business plan for a mini-farm for breeding rabbits 2017
  • Market overview: vegetable growing 2016
  • Business plan for breeding crayfish in artificial reservoirs 2016
  • Business plan. Laboratory for the production of seed mycelium 2016
  • Business plan: growing champignons 2016
  • Business plan: pheasant farm 2016
  • Ready-made business plan for growing mushrooms (oyster mushrooms) 2016
  • Financial calculations: quail egg production 2015
  • Ready business plan for a dairy plant
  • Dairy Farm Business Plan
  • Business plan for the sale of dairy products
  • Livestock farm business plan
  • Business plan for a livestock complex
  • Business plan for the production and sale of beef
  • Pig farming business plan
  • Pork meat production business plan
  • Business plan for a pig fattening farm
  • Business plan for a mini pig farm
  • Goat farming business plan
  • Horse breeding business plan
  • Rabbit farming business plan
  • Example of a business plan for raising rabbits
  • Rabbit breeding business plan
  • Chicken farming business plan
  • Quail farming business plan
  • Business plan for down and feather business
  • Business plan for feed production
  • Farm business plan
  • Turkey meat production business plan
  • Business plan for agricultural production
  • Elevator business plan
  • Business plan for the production and sale of beekeeping products
  • Business plan for growing tomatoes and cucumbers for sale
  • Mushroom Business Business Plan
  • Vegetable factory business plan
  • Business plan for growing potatoes
  • Fishing company business plan
  • Longline fleet business plan
  • Business plan for a fishing company
  • Example of a forestry business plan
  • Business plan for the development of the forestry enterprise
  • Handicrafts Business Plan

Examples of business plans for sports

Collection of ready-made business plans for sports

  • Yoga studio business plan 2017
  • Business plan for a gym 2017
  • Fitness Services Market Review 2017
  • Business plan for the billiard club “Round Ball” 2016
  • Billiard room business plan 2016
  • Bowling club business plan 2016
  • Financial calculations: fitness center 2015
  • Example of a sports bar business plan
  • Ready-made business plan for a sports and entertainment complex
  • Example of a business plan for a sports complex
  • Business plan for opening a gym

Business plans examples for pet business

Collection of ready-made business plans for pet business

  • Business plan for a hotel for animals 2016
  • Veterinary pharmacy business plan 2016
  • Business plan for the production of dry animal food 2016
  • Business plan for a veterinary clinic 2016
  • Business plan for a petting zoo 2016
  • Business plan for opening a dog cafe

Business plans for publishing and advertising

Ready-made examples of Russian business plans for the publishing business, advertising, media and entertainment industry

  • Creative business: how to make money from photographic paintings 2019
  • Media Market Review 2017
  • Review of the printing services market in Russia 2017
  • Business plan for the newspaper publication “Nizhny Novgorod Businessman” 2016
  • Market Review: Publishing 2016
  • Example of a typical newspaper business plan
  • Magazine business plan
  • Example of a printing house business plan
  • Ready-made business plan for a printing house
  • Printing house: example of a business plan
  • Printing house business plan
  • Production of corrugated cardboard
  • Business plan for the production of plastic packaging
  • Advertising agency business plan
  • Example of a ready-made business plan for an advertising agency
  • Business plan for a company installing advertising structures
  • Business plan for the production of plastic cards
  • Ready-made business plan for the production of glass containers

For tips on developing your own business plan, read the section:

Human Resources and Personnel Attraction

Before defining the main technological processes, it is important to plan personnel reserves. In the harsh realities of business, managers of young enterprises often resort to outsourcing services. This method of recruiting allows you to optimize the financial burden on the budget and adjust the development strategy until permanently working professionals are found to fill regular positions. Outsourcing is one of the ready-made examples of acquisition, when an enterprise receives uninterrupted resources on contractual terms.

In the case of recruiting workers, it will be necessary to provide for training time and costs in the overall production plan. Depending on the direction of the company’s activity, it will be necessary to draw up a horizon for reaching the required percentage of qualified specialists (critical for self-regulatory organizations and enterprises implementing a quality management system).

What does it give

Any sample production plan simultaneously includes several goals, which are as follows:

  1. Determining the number of units of services and goods that are necessary to make a profit in the enterprise.
  2. Lobbying for a certain amount of profit, as well as the ratio of income and expenses and other financial important indicators.
  3. Monitoring and evaluating the effectiveness of the use of raw materials and resources.
  4. Quality control. After the production plan of the enterprise is approved, certain characteristics of the product can be recorded in it, and then achieved.
  5. Planning of raw material consumption.
  6. Search for methods to optimize options and work processes.
  7. Power control. Monitoring the effectiveness of the use of labor resources.
  8. Ability to evaluate sales performance.
  9. Development of the most optimal ways to use the budget.
  10. Standardization of production reporting.

As you can see, the list of tasks that are included in the structure of the enterprise’s production plan is very large. In addition, this document may also include other indicators and goals that will be required for the structural unit. Speaking about why a production plan is needed, it should be noted that this document helps to develop a company’s development strategy, which consists of a list of specific actions of the company that are required to achieve its goals. This document helps to allocate resources most efficiently.

Environmental Safety

For a modern enterprise, environmental safety is not just respect for nature. Today this is a whole complex of measures for organizing storage, using raw materials processing with subsequent categorization. The concept of environmental safety by definition includes research in the field of impact on the natural environment. Without obtaining special conclusions from supervisory authorities, it will not even be possible to start production. The plan includes the position of a technospheric safety engineer, costs for one-time services from environmental agencies, and various fees and charges.

Cost forecast

When developing a production plan, it is extremely important to predict the costs of the enterprise. It is unlikely that the administration will get anything for free. Equipment, machinery, vehicles and other facilities can be purchased at the expense of investors or leased on the owner's terms. Salaries cannot be delayed, so wages will also be included in expenses. You will need to plan for both overhead and unforeseen expenses. To keep things from looking gloomy, a revenue forecast is included in the draft production plan. The difference between the planned indicators will be the cost forecast.

While waiting for the business to launch, managers face a Herculean task. In the course of cooperation with capital owners, it will be necessary to report not only at the stage of receiving investments, but also during the development of areas. Therefore, the attitude of the co-founders directly depends on the quality of the business plan, especially since financing can be organized in tranches.

Types of production planning

There are several classifications of types of production planning:

1. According to the timing and depth of elaboration of calculations for the plan: long-term, current and operational.

When planning ahead, the period of the forecasted operation of the production cycle is taken into account.

In current production planning, plans are drawn up for a period of a year and divided into quarters.

The tasks of operational planning are to ensure uniform implementation of the current production plan, that is, the production of products in the required range and volume, within the specified time frame, with the shortest production cycle.

2. According to the content of development prospects and designated goals and objectives: strategic, tactical and business plan.

Strategic planning aims to find new opportunities for the company, based on global goals and specific development objectives.

Tactical planning is aimed at ensuring the achievement of goals established during strategic planning, creating prerequisites for a possible increase in production volumes, increasing labor productivity, reducing wages, reaching a new level of product quality, reducing the need for capital injections, etc.

A business plan is developed to assess whether it is advisable to implement a particular project and attract investment. For some reasons, this type of planning differs significantly from those described above.

3. According to the degree of obligation of planned targets: directive and indicative.

The tasks determined during directive planning are obligatory for unquestioning implementation by planning objects.

Indicative planning involves setting goals that are advisory in nature and direct activities in the right direction. Mandatory tasks are also allowed, but in small quantities.

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4. Depending on the production-structural aspect, planning can be carried out:

  • at the corporate level (for a holding, concern, association);
  • at the level of independent and economically independent entities - enterprises, organizations, separate divisions, branches;
  • at the department level - workshop, section, team, workplace.
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