uiding lines:
13. PRODUCTION
Current and potential production capacity should be described here, as well as the technical level of your production methods and advantages in relation to your competitors.
Company’s own production capacity
• What proportion of your products are you able to manufacture in-house?
• Where does production take place geographically?
• What phases of production is the company responsible for?
Sub-contractors
• What proportion of your products is manufactured by sub-contractors?
• What phases of production are the subcontractors responsible for?
• How many sub-contractors do you use?
• Is the company dependent on them?
• What are you doing to reduce the vulnerability of your position?
• Describe the economic situation of your subcontractors.
• Are any of the sub-contractors dependent on the company?
Efficiency
• Relevant business ratios, e.g. production per employee, machine efficiency. How many employees are engaged in production?
• Are there production bottlenecks?
• If so – how are you dealing with them?
Production methods
• The technical level of your production methods and their advantages in relation to your
competitors.
• Do your production methods require specially trained staff?
• Technical development of production methods and equipment.
Finances
• Describe purchasing and stock management procedures.
• Is production capital-intensive?
• Do you need to invest in production?
• Is there a potential for rationalising production?
• Provide production estimates and contribution margins 1 and 2 for each important product.