This document discusses the process of setting up a microbrewery business. It outlines 9 key functions that make up the microbrewery development life cycle: conceptualization, market research, feasibility study, business plan, financial analysis, project planning, implementation, inspection/review, and operational management. For each function, important areas to consider are described at a high level, such as defining the business concept, analyzing the target market, developing financial forecasts, creating a project schedule, and eventually managing daily operations once completed. The overall goal is to break down the complex project into clear stages that can be systematically planned and managed from start to finish.

1. DESIGN MANAGEMENT
- MANOJ KUJMAR SHUKLA
BD/12/966

2. Setting
Up A
microbrewery
VINTAGE BARREL
• VINTAGE BARREL is a hypothetical brand name which deals with
alcohol wines and drinks etc.
• As if to set up this company and dig its roots deeper into the
business market better we should have a plan for the management
of the setting up business.
• From the designer perspective things will pass though the design
department at every stage of setting up. Thus managing all
requirements at its best, there should be some to assist separate
things efficiently and perfectly.
• For setting up the business lots of hierarchical systems, management
system, planning system etc. should be monitored. There should be
a managing team, R&D department, Design department, Retailing
department, Sampling Department, packaging department, etc.
• The better synchronisation and functioning of the system should be
there so as to give the best output as imagined.

3. MICROBREWERY DEVELOPMENT LIFE CYCLE
• Setting up a Microbrewery from scratch is a capital project that can be broken
down into nine basic functions. You can also call it a Microbrewery
development life cycle. Each function is very critical and must be managed
properly, from very first step of conceptualization to the end step serving.
Microbrewery development life cycle, 9 functions of a microbrewery set up
project
• Conceptual examination
• Market examination/Intelligence
• Feasibility study
• Project justification
• Financial analysis
• Project planning
• Construction/implementation
• Inspection/Testing/Review
• Operational management

4. CONCEPTUALIZATION
• As in locality there are less shops and pubs , a microbrewery can be set up in the
locality. Seeking a good public feedback it will be taken for further expansion of
business.
• Will it be a partnership or own venture?
Who are your potential partners, their strengths/weakness in the business.
• What will be the size, capacity of microbrewery?
1000L or more per batch of brewing(the stock for brewery)
• Where will the microbrewery located?
Land cost, acquisition, registration, market and its environment.
• What are the kinds of Beer that will be produced/ will be there?
What flavours, brands, introduction of any other brand etc.
• Where will you source the raw materials
Agencies, Distributors, locally/ internationally
• What kind of documentation will be required?
Licensing, paperwork etc.

5. • How will the packaging, brand naming etc. Work?
Branding agencies,
• How will the logistics (distributions) work?
Through agents or will you bee selling to a larger brewery.
• Where will the financing come from?
Though this is complete step in our process which only can be analysed once the
market is defined, type of Beer to be produced, raw material, equipment have been
selected and their cost. However a rough estimate about costs and form where the
money is coming from should be known to go ahead for the project.
• Malt extract or whole grain
Based on your objective, target audience, you can take your decision.
• What are your manpower requirements?
Brew masters, Accountant, Engineer, Logistics, and Admin etc.
• Where to find expert advice?
Hire a consultant, contact to some existing microbrewery owners.

6. MARKET RESEARCH
• Target market and the market segmentation based on initial objectives.
• What will be the structure and size of target market and their purchasing power?
• What all kinds of Beer are available and popular in the target market?
• How significant is size of target market to size of the microbrewery project.
• What are the localization of demand for specialty Beers and the level of
competition
• What kind of Beer people prefer in target area.
• Income groups and price range of target market.
• What are the distributive trade practices, restrictions, preferences?
• Regulatory requirements, local approvals, product approvals etc.
• Estimates of sales revenue, costs of sales, distribution costs.

7. FEASIBILITY STUDY
• Defining company, resources, skill, level of expertise, deficiencies, challenges
• Pros and cons of selected marketing strategy
• Reasons of selected technology and equipment
• Potential of targeted market and production capacity, location (Where will the
facility be located relative to the potential customers), logistics
• Initial or preliminary design
• Site plan, building layout, different processes to be followed,
• Capital cost estimate
• Construction/equipment set up cost estimate
• Operating cost estimate (This includes the daily costs involved in running the
business, such as wages, rent, utilities, and interest payments on outstanding debt
etc.)
• Financials analysis, profit & loss, balance sheets, alternative/variable cost analysis
• Based on the estimated revenues and costs, what is ROI (return on investment),
tax considerations.

8. • Who are “Qualified” suppliers – There are many manufacturers, suppliers (raw
material like barley, hops, yeast etc. and equipment), even consultants. We need
to ensure to get a quality product, whether equipment or service.
• In essence the feasibility study should answer all the questions related to market,
technical and organizational requirement and also about financial review.

9. BUSINESS PLAN
A business plan is similar to operating a company on paper. It sets out the goals of the
microbrewery and how we intend to reach those goals.
There are two basic purposes of a business plan:
• External purpose – The business plan helps to obtain financing from potential
investors/banks. A business plans generally an answer to the common question of
the investors, “Why should I invest in this business?” They analyse how well we
have analysed the business opportunity and planned accordingly. So the business
plan becomes the primary fund raising tool also. That is why it should provide an
honest and straightforward examination of the business opportunities.
• Internal purpose – A business plan provides a blueprint for us to follow. It helps in
listing down all the business activities which is useful to evaluate the all aspect of
business. It also serves as parameter against which our performance can be
measured as we go on gradually to setting up a successful microbrewery.
• The other areas which need to address in business plan are industry knowledge
gathering, market intelligence, operation management, financial plan, risk analysis,
review and right implementation.

10. FINANCIAL ANALYSIS
Following are some points which should be addressed in course of doing the financial
analysis:
• How to raise fund – shareholders, partners, cooperative, venture capital, equity
drive etc.
• Debt analysis – mortgage, bank loan, lease financing, tax calculations etc.
• Operating cost – Daily costs involved in running the business like wages, rent,
utilities, and interest payments on outstanding debt etc.
• Licensing cost and other basic amenities cost.
• Equipment cost- used or new one
• Manpower requirements – How many human resource will be required like Brew
masters, Accountant, Engineer, Logistics, Admin, Legal, Marketing, Consultant etc.
How many of them would be on payroll, contractual basis. What would be the
total manpower cost.
• Doing this activity gives us a fair picture on the kind of costs that one has to incur.
This also helps us in identifying areas where we can save on costs like renting a
property already available or acquiring land or for example raising funds from
friends and family or mortgaging property to raise funds.

11. PROJECT PLANNING
Project planning basically is a discipline to pin down as what all steps are required to
complete a project within a certain timeframe, along with defined stages, and with
designated resources.
It can be divided into 4 simple steps as follows:
• Setting objectives – measurable objectives in terms of timeframe.
• Identifying deliverables – specify when and what task would be delivered.
• Planning the scheduling – Effort required for different series of tasks along with
the schedule.
• Making supporting plans – who will do what work, communication channel,
amount of risk involved in accomplishing the different tasks etc.

12. Some of the points to look at while doing a project planning for a
microbrewery set up:
• Master schedule – with smaller tasks and respective goals
• Work break up – who is doing what, how and with timeline
• Complete details of every step – like detailed engineering, working
drawings.
• Lists – for different vendors/contractors/suppliers
• Procedural strategy
• Procurement commercial terms and conditions, warranties
• Liability list ready – during construction, operation, product
• Cost control estimates
• Cash flow forecasts, establish contingency plan
• Equipment decision – new/old, who will supply
• Basic amenities – like electricity, water, transportation/logistics

13. IMPLEMENTATION
• It will help us organize our thoughts and work. It may help us in following ways:
• Prediction of deliverables
• Planning resource requirements
• Controlling resource allocation
• Internal program review
• External program review
• Performance evaluation
• Easy to use
INSPECTION AND REVIEW
• Without a thorough testing/inspection effort, the project will undoubtedly fail
overall and will impact the entire operational performance of the project. So the
verification and validation are very important to ensure that we are moving in the
right direction. I am sure there would be many things which will not fall as per the
planning and need last minute attention. This can only be point out with a proper
inspection/review of the progress.
• Since we have our check list ready from the previous steps, we just need to make
sure that the implementation is as per expectation.

14. OPERATIONAL MANAGEMENT
• In general terms Operational Management is the business function that is
responsible for managing and coordinating the resources needed to produce a
company’s products and services. Simply put Operational Management transforms
inputs to outputs.
Points to look at during operational management:
• Manpower like operator, staff, brew master – hiring and training
• Performance and acceptance testing
• Trial brew with very less volume
• Product testing, formulating
• Performance evaluation of the brew process and report
• Trouble shooting, correction, modification
• Monitoring the operation of plant, process and production
• Plant maintenance
• Inventory and production control
• Operation accounting
• Final acceptance

16. THANK YOU