80. Production TimeframeBy Roger Bryan
The timeframe measures the times it takes to produce and commercialize a product.
The timeframe of your company is divided into these topics:
Average time to order materials from suppliers
Average time for materials to arrive in your warehouse, after you order them
Average time for the materials go to the first section from the warehouse
Average time the first section takes to end up its work
Average time it takes to go to the second section (repeat this step and the step before for as many sections as you have in your production line)
Average time it takes to get the final product
Average time for the final product enters the stock, coming from the factory
Average time for the consumer to buy it, after it is on stock
The sum of all this times will give you the timeframe. It means if you buy the materials today, in how many days would you have made a sale. In essence, the timeframe is the time passed between your cost and your profit.
Explain all these factors in your business plan. You should also provide the extreme other than the average time and find possible explanations for those facts.