8.

0 OPERATIONAL PLAN

8.1 Process flow chart

Identify the main steps or phases of operations and construct a flow

chart to indicate the flow of the steps.

Figure 8.1: A flow chart showing steps involve in developing and

selling of CD Mathematics

Identify customer requirements

Propose design and content of

the courseware

Develop prototype of the

Purchase of raw courseware
material
courseware
Test the prototype & determine
final design of the courseware

Develop the courseware, testing

and finalization

Packaging and Storage

Supply to customers/marketing
department based on the
request

Supply todesign
Propose customers/marketing
and content of
the courseware
department
Identify
Test
Develop
Packaging
the based
customer
prototype
theand on the testing
courseware,
Storage
requirements
of
& determine
the
request
courseware
final
and finalization
design of the courseware
 Figure 8.1: A flow chart showing steps involve in ordering and
selling of CD Mathematics

Plan and manage order or CDs Promote the CD and get sales
according to sales trend order

Receive CDs from Send sales order to storage

manufacturers/Production & store
them in the storage rooms

Prepare/Package of the CDs

according to sales order

Supply the CDs to customers

Manage Collection of payment

CDs and account
receivable/Financial
 8.2 Production schedule

The production schedule is prepared to enable the business to meet

the desired outputs. The production schedule planning is closely
guided by the sales forecast done earlier in the marketing plan.

Table 8.1: Production and Order of CDs schedule for 2008

Months Units of CDS Units of CDs to develop Units of CDs to

required based on by production order from
the sales forecast department manufacturers
Jan 2000 700 1300
Feb 2000
Mac 2000
April 4000
May 4000
June 4000 1400 2600
July 4000 1400 2600
August 4000 1400 2600
Sept 6000 2100 3900
Oct 6000
Nov 6000
Dec 6000
2008 50000 17500 32500
 8.3 Material requirements

Materials needed for the operations of the business can be either in

the form of raw materials or ready products. The materials required
must be listed according to the amount required and cost. Main
suppliers to supply the materials must also be listed.

Table 8.2: Material requirements

Item Quantity Safety Price per Total Supplier

required stock unit (RM) purchase
(RM)
CD 17500 500 0.30 5400.00 XXX
CD covers
CD case
Boxes 3500 100 0.30 1080.00 KKK
 8.4 Manpower requirements

The operations plan needs to list all the manpower required in the
operations section of the business. This list takes into consideration
only the people involved directly in the operations. The list needs to
state the nature of employment (fulltime/part-time/contract),
remuneration and any related compensation such as EPF and
SOCSO.

Position No. of Job status Remuneration EPF SOCSO Total

emp per month (13%) (2%)
Head of 1 Contract RM3000 390.00 60.00 3450.00
Courseware
Dev

Engineer 1 Fulltime RM7800 1014.00 156.00 8970.00

(Dev)

Sys Ana 3 Fulltime

Tech (CD) 2 Fulltime

Tech (Test) 2 Fulltime

Crk (Ord) 2 Fulltime

Crk (Inv) 2 Fulltime

Store Keeper 1 Fulltime RM700 91.00 14.00 805.00

Laborers 10 Part-time RM6000 780.00 120.00 6980.00

 8.5 Machine and equipment

All machine and equipment required must be listed together with

the estimated price, number of units and supplier’s name.

Item Price per Unit No required Total cost Supplier

Soft wares 3500 3 10500.00 XYX
Testing equipment
Packaging machine
Course ware 10500 2 21000.00 XYT
processing
equipment
8.6 Operational layout plan

The operations layout plan of a business refers to the planning of

how best to utilize the operations area. You need to highlight
relevant factors that need to be considered for efficient operations
as well as how machines and equipments are to be placed for
maximum productivity.

Figure 8.3: Operation lay out for the production of Mathematic CD

Production Raw
department material
office Storage

Course ware
dev
machineries

Course ware
testing
equipment &
Quality
verification

Storage of
CDS
8.7 Operation overheads

The operation overheads encompass water, electricity, telephone,

and gas facilities as well as other basic utilities that are essential in
moving the operations.

Table 8.2: Operation overheads for the production of Mathematics

CD

Item Cost (RM)

Electricity
Water
Gas
Telephone
 8.8 Operation budget

In preparing the operation budget, you must consider fixed assets cost, monthly
expenses and other expenses.

The fixed assets cost under the operation section includes the cost of the building or
buying the operations space (factory, shop, etc) and any relevant renovation work, as
well as the purchase of machines and equipment.

The monthly expenses cover material cost, remuneration and all factory overheads

Other expenses include deposit on factory rental, deposit for utilities and insurance.

Table 8.4: Operational budget

Item Fixed asset Monthly expenses Other expenses

Machines 13000
Equipment
Wages
Factory rental 8000.00
Deposit on factory 10000.00
rental
Deposit on utilities
Insurance
Material cost 30000.00
Factory overheads 2800.00
Renovation 10,000.00