Operations Management/OPM 530 ACKNOWLEDGEMENT

Bismillahirrahmanirrahim««. Assalamualaikum w.b.t«««. Alhamdulillah, with the permission of Allah S.W.T., we are able to complete this group assignment for subject Operations Management / OPM 530. This assignment requires a lot of hard works, patience and makes us to think out of the box. We also have tried our best to do this assignment with successful. First, we want to thank our lecturer, Miss Nooradzlina Mohd Pauzi for his precious guidance and supervision, from the beginning until the end in guiding us on how to complete this task. We are also thank to those who has sincerely helped in quest of seeking materials and information for this assignment especially to Puan Rohana bt Uji who has give cooperation with us to complete our assignment. Lastly, to all who those were supported us in any sense and anything, hopefully that this assignment can be use to increase our knowledge about this subject.

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Operations Management/OPM 530 ABSTRACT / SUMMARY The topic of our project is operations scheduling. Our major focus from that topic is scheduling services. In our project, we choose to make a research on bakery. The name of the company is NR Hana Trading. NR Hana Trading use the name of NR Hana Bakery for all its branches. The main business in NR Hana Trading is produce breads and cakes. NR Hana Trading started its business at Pasir Puteh, Kelantan. Then, they opened their branches that are two branches in Machang, Kelantan, one in Jertih, Terengganu and another one in Pasir Putih, Kelantan. The profit of this company earns approximately RM18, 240 per month. The objectives of the study are to identify we want to identify the scheduling of bakery¶s product and we need to identify either the company using forward or backward scheduling for their production. The company has it own mission and vision. The mission is to conquer the business market at Pasir Puteh. The visions are to conquer the business at all places in Kelantan and to become the number one producer of bakery and cake in Malaysia. From our survey, we know that to produce the cakes and breads, we need to know the scheduling of the bakery¶s product. This is they need to know the amount of the product that they produce everyday. They also need to make sure the quantity of raw material such as flour, icing, baking soda, sugar, eggs and so on are enough to produce their product. The company needs to minimize the time of producing cakes and breads that is when the company gets lots of order they have to extend their work time. They also need to make sure the raw material that been used everyday is fully utilized. Besides that, we also found that either the company using forward or backward scheduling. From our survey, NR Hana Trading are using the combination of forward and backward scheduling. Forward scheduling is the jobs performed to customer order. For example, this company taking order from customer that made order for special occasions. Backward scheduling is begins with the due date of the final operations; schedules jobs in reverse order. For example, this company producing the cakes and breads for selling to customer everyday.

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Operations Management/OPM 530 INTRODUCTION a) Background of the study Organizations schedule their activities in order to meet customers' requirements on time and improve their operational efficiency. Scheduling of activities is important for both manufacturing and service firms. An operation can be scheduled in different ways. But they can be broadly divided into three that are forward scheduling, backward scheduling and a combination of both. Routing, loading, and dispatching are the important activities in the scheduling of an operation. Routing describes the sequence of operations and the work centers that perform the work. Loading assigns jobs to various work centers. Dispatching is the release of an order to start the production operation. In this project, we are focusing on the scheduling services. Scheduling of services can also be complicated when it is necessary to coordinate and schedule more than one resource. Minimize completion time is to minimize the time of producing cakes and breads, that is when the company get lots of order they have to extend their work time. Maximize utilization is the raw material that been used everyday is fully utilized. Since customers don't like to wait, labour must be scheduled so that customer wait is minimized. This sometimes requires the use of queuing theory or waiting line theory. Queuing theory uses estimate arrival rates and service rates to calculate an optimum staffing plan. We also focusing on forward and backward scheduling. Forward scheduling, the scheduler selects a planned order release date and schedules all activities from this point forward in time. Backward scheduling, the scheduler begins with a planned receipt date or due date and moves backward in time, according to the required processing times, until he or she reaches the point where the order will be released. For the company that we choose, NR Hana Trading , they use the combination of forward and backward scheduling.

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Operations Management/OPM 530

b) Objective of the study 1) In producing this product, we want to identify the scheduling of bakery¶s product. These are we need to know the amount of the product that they produce everyday besides, minimize completion time, maximize utilization, minimize work-in-job (WIP) inventory and minimize customer waiting time. 2) We also need to identify either the company using forward or backward scheduling. Forward scheduling is the jobs performed to customer order. Backward scheduling is begins with the due date of the final operations; schedules jobs in reverse order.

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Operations Management/OPM 530 ORGANIZATIONAL ANALYSIS a) Company Profiles The name of the company that we have visited is NR Hana Trading. The NR Hana Trading is a single appropriation of company. This company is own by Puan Rohana binti Uji. This bakery was open started 2004 at the Pasir Puteh, Kelantan. NR Hana Trading use the name of NR Hana Bakery for all its branches. The main business in NR Hana Trading is produce breads and cakes. In Pasir Puteh, the location is very strategic and one of the advantages to the trading in terms of marketing, because of the environment structure that has many facilities. It is also located at the main road to the Pasir Puteh. The owner started the business with the small scale and from time to time she open many branch at the same place. She has two companies at Pasir Puteh, two companies at Machang, and one at Jerteh, Terengganu. The workers of that company are more than twenty workers. Her company in Pasir Putih, Kelantan has twenty two workers. The profit that the NR Hana Trading earns approximately RM18,240 per month. The company opens at 8.00 am till 10.00 pm. Besides that, the main activity of that company are selling and making the cakes. There are variety types of cakes flavors. Those are Vanilla, Chocolate, Blueberry, Tiramisu, and Mocha. This company also taking order for customer that order cakes for special occasions. This company also producing variety types of bread such as peanut bread, potato bread and so on. NR Hana Trading also takes the order of making biscuits for festive season. The operation of the company is divided into four parts that are, making cake, making bread biscuits, decoration cake and packaging,. The company also has the delivery service for their customers. The company plays some important rule to serve the customers based on their needs and wants. The rules that are used are first comes, first serve; earliest due date and shortest processing time.

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b) Vision and mission of the company Vision  To conquer the business at all places in Kelantan.  To become the number one producer of bakery and cake in Malaysia.  To develop skills among of the people who might interested to involve in this type of business. Mission  To conquer the business market at Pasir Puteh.

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FINDING AND ANALYSIS Finding What we have found in NR Hana Trading, previously it is type of bakery business that provide products and services. The products are breads, cakes, muffins, cupcakes and cookies. While their services are providing delivery to their customers¶ order and provide varies of cakes and breads. Usually they will get 6 till 10 orders from their customers per day. NR Hana Trading has more than 20 workers, where there can make cakes and breads everyday even though there are no orders. NR Hana Trading has practicing forward and backward scheduling. All breads need to be in 80kg for the making in one day and for cakes it divide into two types which is small cakes need to be in ½ kg while big cakes in 2kg. However bigger cakes can reach to 20kg per cake based on the customers¶ demand. i. Forward Scheduling

The will begin their operations as soon as they got the order. For example, if the customers have occasion and they need NR Hana to make cakes for them like birthday party and annual dinner. Usually, cupcakes will be in the forward scheduling because the demand of cupcakes is increasing during occasion like birthday party. In backward scheduling, NR Hana Trading begins their operating with the due date of the final operations by schedules job in reverse order. They will make 500 types of cakes and breads every day for ordinary customers who just passing-by to their bakery. The time taken to make cakes is two minutes for small cakes and one day for bigger cakes. In their production there is two dough for 30 unit small cakes and three gunnies of breads and could be more. Biscuits will be made due to the customers¶ order. For example during Eid Mubarak, they will produce about 30 types of biscuits to fulfil the customers¶ needs. ii. Backward Scheduling

The bakery starts their operation at 8.30 am till 6 pm. There are four areas in the cakes and breads making process, which is making cakes and breads, decoration and packaging. More workers will involve in bread-making process because the customers are tends to buy a lots of breads rather than cakes.

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Analysis Priority Rules for Dispatching Jobs Priority rules are evaluated in terms of average job flow time, and have been chosen mainly for their ability to coordinate the completion time of the various operations scheduling. A rule based on the minimum remaining job time has been found to produce the best results of scheduling services. Priority rules in our research consist of µFirst come, first served¶ (FCFS), Earliest Due Date (EDD) and Shortest Processing Time (SPT). i. First come, first served

It is the job to arrive at work to process first. They will make or produce, usually cakes that have many orders upon the customers. The customers, who make earliest order, will be the earliest to get their ordered. ii. Earliest Due Date

The job with the earliest due date is processed first. NR Hana trading workers will start to make cakes and breads based on the order. If the customer has ordered 20kg cakes for special occasion, then the workers in cake production will produce it in the due date immediately. Usually the will finish their orders before the due date to avoid any collision orders. iii. Shortest Processing Time

The job with the shortest processing time is processed first. Even though cakes and breads will processed first but bread will be in the first line. In ordinary days, breads have the higher demand compared to another NR Hana¶s products. Breads can be produced in 30 minutes at 80kg in three gunnies compared to cakes.

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Operations Management/OPM 530

The process of making cakes:

‡ Make a dough. ‡ Mix it all together. Step 1

‡ Heat the oven in 10 minutes. ‡ Put the dough in the oven and baked for 1 hour. Step 2

Step 3

‡ Take the cakes out from the oven after 1 hour. ‡ Let it cools down. ‡ Prepare the topping.

‡ Topping the cakes and decorate it. Step 4

‡ Display the cakes in the refigerator. Step 5

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Operations Management/OPM 530

The process of making breads (without filling) : ‡Make a dough and mix it all together. ‡Wait for 5 minutes until the ingredients well mixed.

Step 1

Step 2

‡Pellet the dough after 5 minutes to put in the brass. ‡After that wait until the dough expand

‡Ater 30 minutes place it in the oven and baked. Step 3

Step 4

‡wait until it cools down. ‡Cut the breads into the require form.

‡Then start the packaging. Step 5

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Operations Management/OPM 530

The process of making breads (with filling):

Step 1

‡Make a dough and mix it all together. ‡Wait for 5 minutes until the ingredients well mixed.

Step 2

‡Start to weigh the dough. ‡Wait until it turns to for 1/2 hours.

Step 3

‡Marinate it for 1 minute and lift it to the pastry. ‡Cut the breads and filling it.

Step 4

‡After the filling process, the breads will be baked until 1/2 hours. ‡After 1/2 hours lift it and let it cools down.

‡Then start the packaging. Step 5

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Operations Management/OPM 530

Process of making dough

Pastry machine

Marinate machine

marinating breads

Using oven in baking cakes and bread

Preparing cakes¶ topping

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Operations Management/OPM 530

Placing cakes and breads temporarily

Cakes¶ decorations

Cakes¶ inventory

Cakes displayed

Breads packaging

Breads displayed

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CONCLUSION As the conclusion we found that the company that we choose has effective operation management. Even though the company also needs some improvement to overcome the weaknesses and increase the profitability. The company also needs to focus on future market not only at the current market to satisfy the customers need and want. Based on scheduling services, the company need to increase their effectiveness of machines from time to time and make the maintenance of machines every three months. Based on that the company can avoid the damages of the machines and effecting the production, to fulfill the customers¶ needs and wants with the shorter time. Customers¶ satisfaction is crucial to the products and services that have been provided. The excellent operation scheduling will make the company succeed in terms of efficient utilization of labor and equipment, lead time, inventory levels and processing times. From our opinion, the owner and each department need to improve their own services to make the operation management run smoothly.

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RECOMMENDATION As we stated in findings and analysis, the company has a few weaknesses that can be improved in order to be successful in their business. Here, we have a few recommendations to the company so that they can attract more customers to come to their company and indirectly they can increase their profit although they are new in the business. The recommendations that we are going to suggest to them are: 1. Controlling of the inventory. From our observation, the controlling of the inventory produce is not efficient because the company have been produce 500 unit of cakes per day. Not all customers buy the product every day, so not all cakes can be sold within those days. It will cause losses for the company to suffer because inventory is not fully utilized. 2. Provide a regular schedule for employees We also notice that, the company does not provide any schedule to their workers. The company has four segment lines in produces the cakes and breads. There are packaging, decoration, making cakes and making breads. This company has difficulty scheduling because they overload the production processes. This often occurs because the company does not know actual performance in the work centers. Effective scheduling depends on matching the schedule to performance. Lack of knowledge about capacity and performance causes reduced throughput. 3. Do more advertising about the product. We also suggest that the company should make an advertising to introduce and announce the product to the customers. Lack of the advertising about the product makes this company¶s¶ products did not famous in the area. In our suggestion, the company should advertise their product in many ways such as in newspaper, television, radio, makes pamphlets or create own website to attract more customer because there are many competitors in their area.

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4. Should be eased to communicate with the manager. We notice that the manager of the company is difficult to communicate and contact. If something happened to the company, the workers cannot contact the manager because she always offs the telephone. In our suggestion she should hired (PA) to take over her responsibility when she not in office. personal assistant

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REFERENCES i. ii. iii. iv. Jay Heizer, Barry Render (10th Edition) Operations Management http://www.entrepreneur.com/tradejournals/article/176927922.html http://www.enotes.com/management-encyclopedia/operations-scheduling http://www.icmrindia.org/courseware/Operations%20Management/Operations%20Mana gement-DS17.htm

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