POM 102 – BUSINESS PLAN PROJECT GUIDELINES

A. BACKGROUND
For the project, you are to assume the role of entrepreneurs who is looking to start a
business by the year 2018. There is no budget limit on initial capital investment. However,
the company should be designed to be medium-sized in nature. The company should target
to employ at least 25 employees and to attain around P25 Million annual gross revenue by
the third year of operations.

The business plan must be grounded on sound business strategy and it must integrate the
use POM tools and techniques in making key business decisions.

B. PROJECT MECHANICS
1. Form a team of up to 5 members each.
2. Each team is required to submit three (3) partial project deliverables; to serve as periodic
updates of progress in completing the Business Plan. These deliverables will be graded.
3. There will be a graded mid-term defense preceding the final presentations.
4. Final presentations will be scheduled on one Saturday in March. An external panel of
judges will grade the final presentation.
5. You are highly encouraged to consult with your instructor regularly.
6. Each student will be asked to force rank their team members at the end of the semester.
Grades for the project will be adjusted upward or downward to account for each individual’s
relative contribution to the team effort.

C. PAPER FORMAT
Papers must be prepared on A4 paper
1.5 line spacing
Size 12 Font (Times New Roman)
1 inch margin on all sides
Pagination on lower right corner
Illustrations should be provided for:
 process flows,
 layouts,
 equipment in use and
 business locations (use maps)
Illustrations should be properly labeled
Table of contents should be provided

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Use APA format for referencing

D. SUBMISSIONS
Submission Required Contents Word Requirement
Pass #1 5,000 words.
1. Introduction *exclude Appendix
2. Product / Service Design and images from
3. Demand Forecasting word count
4. Process Design
5. Capacity Planning

Appendix:
Group’s work program
- Detail the activities you will
undertake, a tentative timetable,
and individual work assignments.
- Present using a Gantt Chart

Pass #2 10,000 words.

6. Quality Management *Submit with
7. Location Plan revised pass#1:
8. Facilities Layout
9. HR and Design of Work
Systems
10. Supply Chain Management

Pass #3 15,000 words for

11. Inventory Management the entire paper
12. Aggregate Planning
13. Scheduling
14. Costing and Financials

Final Pass Complete paper; 15,000 words

To be submitted to the excluding images,
department: tables, appendix
4 hardcopies and references
1 soft copy (CD)

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E. FINAL PAPER COVERAGE/OUTLINE:
Following is an outline of a typical business plan. Each component of the outline will have
guidelines and guide questions. However, these are only pointers to help you start with each
of the sections; do not limit your study to this outline. You are expected to carry out
necessary analysis and application of tools as you deem fit for your project.

Executive Summary
Table of Contents
List of Tables and Figures
List of Abbreviations

1. Introduction
1.1. Company Overview and Key Strategies
 Industry structure (business clusters, major players & linkages)
 Development trends (industry directions, external factors affecting growth)
 Target market (customer base in terms of age, income, lifestyle; growth projection of
customer base)
 Competition (nature/basis of competition)

1.2. Industry Background

 Industry structure (business clusters, major players & linkages)
 Development trends (industry directions, external factors affecting growth)
 Target market (customer base in terms of age, income, lifestyle; growth projection of
customer base)
 Competition (nature/basis of competition)

2. Product/Service Design
2.1. Product/Service
 Differentiation (how unique is your product/service?)
 Appropriateness (are products user-friendly? are products competitive?)
 Justification (why do you think your target market will buy your product/service?)

2.2. Product/Service Design

 Mix (list the range of your product offerings if more than 1)
 Specifications (details of the product/service, quantitative descriptions/dimensions)

2.3. Product/Service Development

 Growth potential (does the product/service have opportunity for
growth/development?)

3. Demand Forecasting
Forecast for the demand of your product. Indicate what you are forecasting. Discuss the
methodology. Present research data from Surveys, Population Data, Foot Counting, &
Benchmarking. Analyze your data. Check for behaviors and patterns like trend, seasonality
& variations. Finally, present your forecast for the next 5 years.

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4. Process Design
4.1. Key processes
What are the key processes involved in making the product/service?
 Provide detailed steps and show process flow charts of each of the processes (you
may use variations of the process flow charts i.e. swim lanes/time based process
maps).
 For services, explain the detailed processes from opening to closing, including
employee involvement.
 If necessary, do a make-or-buy analysis for each step of the process and provide a
basis for deciding to make or buy.
 How long does it take to produce a product/service?

4.2. Process Technologies/Equipment

Identify the key technologies/Equipment used in production

Provide some pictures of the machines or equipment used. For each machine: Explain the
simple use of that machine in your production process. Give your suppliers and their
quotations of the prices. What is your choice among the suppliers? Why? --Be sure to give
explanations why you chose that particular machine or equipment. Identify the capacity of
your chosen type/brand/model of that machine.

5. Capacity Planning
From the processes involved conduct capacity analysis
 Identify your limiting capacity (through bottleneck analysis).
 Compute your design and effective capacity estimates.
 Match actual capacity with demand forecast. Using your demand forecast as “actual”,
evaluate the efficiency and utilization rates.

6. Quality Management
From the processes involved discuss where quality management will be involved

What is quality for the company?

 Determinants of quality (specific criteria)

How will the company manage quality?

 Discuss Quality management practices
 Discuss how machineries will be maintained
 Discuss how wastes are managed

7. Location Planning
 What are the areas of operations? (i.e. office, warehouse, retail etc)
 Location Requirements (For each of the areas of operation, what were the factors
you considered? Explain.)
 Choices of Location(s) (Provide a very detailed address, show location in map, if
possible provide pictures of the locations).
 Use of tools to arrive at a decision for the locations of the areas of operations (i.e.
center of gravity, factor rating method, breakeven analysis)

8. Facilities Layout
For each of the location of areas of operations, provide detailed facilities layout. Provide
Facilities Layout Floor Plan with proper scaling. Describe your layout and provide BASIS.
(The reader should be able to visualize your layout without looking at your floor plan). Be
sure to have the restrooms and the fire exits in your layout.)

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9. HR and Design of Work Systems
 Provide a structured organization chart
 Identify the workforce needed, give detailed job design.
 Explain selection process, recruitment process and training process.
 Explain compensation package.
 Indicate performance management system.
 Explain the working conditions.

10. Supply Chain Management

10.1. Supplies Sourcing
 Identify your prospective suppliers and provide BASIS why you chose them.
 What strategies are being used in choosing and maintain suppliers?

10.2. Distribution Systems

 How and when are the products distributed to? What is the structure in place?
 How are products delivered?

11. Inventory Management

11.1. Inventory Strategies
 Identify all the inventories maintained. (raw materials, work-in-process, finished
products)
 Discuss Procurement methods/practices
o Discuss replenishment parameters (lead time, buffer stock, order policy)
o Determine the Order Policy (EOQ, ERS, Fixed?) Check if quantity discounts
will apply
o Identify the needed safety stock. (Be sure to show all your explanations or
computations.) What is your service level?
 Discuss inventory control. Inventory Counting System?

11.2. MRP
Using details in your inventory strategies make an MRP table for your products. Provide
explanation on the details used for computation.

12. Aggregate Planning

Using details in demand forecasting, capacity planning and inventory management, discuss
your aggregate plan for the year 2016, 2017 and 2018.

13. Scheduling
Prepare GANTT Charts for pre-operational and operational scheduling

14. Costing and Financials

 Compute initial investment,
 Conduct break-even analysis
 Show income statement and balance sheet for the first three years of operations
 If possible do capital budgeting analysis.