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Business Planning and Entrepreneurship by Michael Kraten

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Part III

Volume Estimation

Chapter 5

Estimating Supply Capacity With Process Flow Analysis

About This Chapter

Chapter 5 begins our review of the volume estimation section by explaining how process flow analysis can be utilized to quantify production or service capacity. This analytical technique requires business planners to (a) describe their activities in a storyboard format, (b) add target volume estimates for each resource utilized and for each finished good or service produced under a “normal conditions” assumption, and (c) expand each significant target into a range to account for “challenging conditions.”

The information that was included in the process chain analysis (see chapter 2) should serve as the basis of this process flow analysis. ...

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