A customer walks up to the Spoke & Wrench stall with a bike that will not shift gears. What happens next? Who looks at it, what parts are needed, how long does it take, and are those parts actually on the shelf? The production plan answers these questions before the first customer arrives. It matters because time is the limit for any small venture: Leah and Dev have only so many hours a week, and every minute spent hunting for a missing part is a minute they cannot sell.
Input, Process, Output
Every production plan has the same three parts. Inputs are what goes in: materials, equipment, labour and time. The process is the series of steps that changes the inputs. The output is the finished good or delivered service. To plan a process, list each step in order, estimate the time each step takes, and add them up to get the time per unit. From that you can work out capacity: the most units you can produce in the time available. Capacity equals hours available divided by hours per unit, always rounded down, because a half-finished bike cannot be sold.
| Step | What happens | Time (minutes) |
|---|---|---|
| 1. Inspect | Check the frame, wheels, brakes and gears; list the parts needed | 15 |
| 2. Strip and clean | Remove the chain, degrease the drivetrain, wash the frame | 30 |
| 3. Replace parts | Install new tubes, cables, brake pads or chain | 45 |
| 4. Adjust | Tune brakes and gears, true the wheels | 30 |
| 5. Safety test | Test ride, check every bolt, attach a safety checklist tag | 15 |
| Total | 135 |
Choosing a Production Process
- Job (custom) production: each unit is made or fixed to one customer's needs. Every repair at Spoke & Wrench is a job, because every broken bike is different.
- Batch production: a group of identical or similar units goes through each step together. Refurbishing four donated bikes at once, with one degreaser setup, is batch production.
- Continuous production: an assembly line runs non-stop making the same item, as in a large bicycle or car factory. It needs high, steady demand and expensive equipment, so it does not fit a small student venture.
- Service blueprint: for a service, a diagram of every step the customer sees (booking, drop-off, pickup, payment) and every step behind the scenes (ordering parts, the repair, the safety check). It shows where a customer might wait or be disappointed.
Goods Needed and Choosing Suppliers
List the goods the plan needs: raw materials that become part of the product (used bikes, tubes, chains, cables), supplies that are used up but not sold (degreaser, rags, grease), and equipment that lasts (the repair stand and tools). Then choose suppliers. The cheapest one is not always the best. Compare suppliers on five factors: price, quality, reliability (do orders arrive complete and on time?), terms (minimum order, shipping charges, payment due date, returns) and location (a nearby supplier means a shorter wait).
| Factor | Local bike wholesaler | Online parts supplier |
|---|---|---|
| Price per inner tube | $4.50 | $3.80 |
| Shipping per order | Free (pick up) | $15 |
| Lead time | 2 days | 10 days |
| Minimum order | 10 tubes | 50 tubes |
| Returns | Easy, in person | Shipping paid by buyer |
Managing Inventory: Reorder Points, JIT and FIFO
Inventory is the stock of materials and goods a business holds. Too much inventory ties up cash, takes space, and can spoil or go out of date. Too little causes stockouts: a customer waits, or leaves, because the part is not there. The goal is to reorder at the right moment. The reorder point is the stock level that triggers a new order. It must cover what you will use while you wait for delivery (the lead time), plus a cushion called safety stock in case demand jumps or the delivery is late.
- Just-in-time (JIT): order materials so they arrive just as they are needed, keeping almost no stock. Spoke & Wrench orders a special derailleur only after a customer books the repair. JIT saves cash and space but depends on reliable suppliers.
- FIFO stock rotation (first in, first out): use or sell the oldest stock first. Tire sealant, patch glue and rubber tubes age on the shelf, so new boxes go to the back and old ones to the front.
- Count regularly: a weekly count of fast-moving parts catches theft, damage and record errors before they cause a stockout.