OPERATIONAL PLAN

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7. Operational Plan

7.1 Component of Operating Systems

7.1.1 Business Input

Business input refers to all resources that are required to produce our

product which includes raw materials such as rice, fillings (chicken floss),

water, seaweed, optional ingredients like sugar, salt, manpower, machine and

equipment, technology, information and capital.

7.1.2 Transformation Process

The transformation process or system is the activities that involves in

transforming our product from input into output such as the process flow

material requirement planning and cycle time and it also include the machines

which involve in producing the product.

7.1.3 Output

Output refers to our finished product, specifications, quantities, costs

and delivery target time. Output also provides the last final answer or mainly

called as the last decision making that to be displayed.

7.1.4 Feedback

Feedback from the customer is needed by giving their reactions,

comments, and complaints. This is because it helps our company to improve

our production of the product and also helps to detect if there is any lack in

our product.

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7.1.5 External Environment

This refers to converting the raw material into our company product in

order to gain a profit. Plus, it involves a conditions, entities, events and factors

surrounding our organization that influence its activities and choices. Besides

that, it also determines the opportunities and risks of our business.

7.2 Process Planning for Manufacturing

7.2.1 Symbol of Process Chart

SYMBOL TYPE OF ACTIVITY DESCRIPTION

Operation Activity that modify, transform or give added

values to the input.

Inspection Activity that measures the standard or quality.

Delay Process is delayed because in process

materials are waiting for next activity.

Transportation Movement of materials of goods from one place

to another place

Storage Finished product or goods are stored in the

storage area or warehouse

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7.2.2 Process flow chart

Flow Chart for the Production of Onigiri (rice ball)

Transfer the raw materials from the store to the production area.

Blend the onion, garlic and

ginger for stir-fry. Fry the
caraway and coriander without
oil and then blend it grossly.
Boil the chicken until the meat
is tender. Then, peel the meat
into small pieces and toss it.
Stir-fry the onion and the other
ingredient with chilli paste until
it is crispy and put the blended
caraway and coriander.

Put in the coconut milk and stir it well. Then, put in the boiled chicken
meat, salt, sugar and roasted coconut.

Last process for the chicken floss is frying it until it become crispy.

Transfer the chicken floss into the freezer and take out the chicken
floss that we had made the day before.

Clean the rice using clean water

Put a little bit of salt into the rice and cook it about 15 minutes.

Let the rice stand for 5 minutes to cool down the rice before
proceeding. 

Check the quantity of ingredient to get the correct measurement of rice

and chicken floss before put it into the machine.

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Put the rice and chicken floss into the rice ball machine to get the
shape, wrap the onigiri with seaweed and then the machine will wrap it
using plastic.

Inspect of quality of the onigiri.

Pack 6 unit of onigiri per packaging and sort it at the labeling machine.

Arrange the packet at the seal machine.

Then, put it into the box.

Store it in the freezer room.

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7.2.3 Activity chart

Symbol Steps Time Machine/ Operator

(minutes) equipment

Transfer the raw materials 5 minutes Trolley Operator 1

from the store to the

production area.

Boil the chicken until the 30 minutes Pot Operator 1

meat is tender. Then, peel

the meat into small pieces

and toss it.

Blend the onion, garlic 20 minutes Blender and Operator 1

and ginger for stir-fry. Fry Frying pan

the caraway and

coriander without oil and

then blend it grossly.

Stir-fry the onion and the 20 minutes Frying pan Operator 1

other ingredient with chilli

paste until it is crispy and

put the blended caraway

and coriander.

Put in the coconut milk 30 minutes Frying pan Operator 1

and stir it well. Then, put

in the boiled chicken

meat, salt, sugar and

roasted coconut.

Last process for the 90 minutes Frying pan Operator 3

chicken floss is frying it
until it become crispy.

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Transfer the chicken floss 5 minutes Trolley Operator 1

into the freezer.

The chicken floss was 480 minutes - -

delay for the next day.

Take out the chicken floss 5 minutes Trolley Operator 1

that we had made

yesterday.

Clean the rice using clean 20 minutes - Operator 1

water.

Put a little bit of salt into 15 minutes Pressure rice Machine

the rice and cook it. cooker Operator 1

Let the rice stand for 5 5 minutes - Operator 1

minutes to cool down the

rice before proceeding.

Check the quantity of 5 minutes - Operator 1

ingredient to get the

correct measurement of

rice and chicken floss

before put it into the

machine.

Put the rice and chicken 30 minutes Rice ball Machine

floss into the rice ball machine Operator 1

machine to get the shape,

wrap the onigiri with

seaweed and then the

machine will wrap it using

plastic.

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Inspect of quality of the 5 minutes - Quality

onigiri. checker 1

Pack 6 unit of onigiri per 30 - Operator 2

packaging. minutes

Arrange the packet at the 30 minutes Seal Operator 2

seal machine. machine

Then, put it into the box. 15 minutes - Operator 1

Store it in the freezer 5 minutes Trolley Operator 1

room.

TOTAL 845 - 22

minutes

7.3 Operations Layout

7.3.1 Layout based on the product

STORAGE 
CUTTING 
WASHING 
AREA  AREA 
COOKING 
AREA 
RICE BALL MACHINE

SEAL MACHINE RICE 
PACKAGING   COOKING 
AREA  AREA 
FREEZER 

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7.4 Production Planning

7.4.1 Sales forecast per month

Output per month

Average sales forecast per month = RM 186,912

The sales price = RM 1.00

Number of output per month = Average sales forecast

Sale price per unit

= 186,912
1.00

= 186,912 units per month

7.4.2 Number of output per day

If the number of working days per month is 24 days (6 days/week)

= No. of output per month _

No. working days per month

= 186,912
24
= 7,788 units per day

7.4.3 Number of units per hour

Such as daily working hour = 8 hours

= No. of output per day

Daily working hours

= 7,788
8

= 974 units per hour

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7.5 Material Planning

7.5.1 Material Requirement Planning

7.5.1.1 Raw Material Required per Month (Bill of Material)

No Material Quantity Safety Total Material Price/Unit Total

(kg) Stock Requirement (RM) Price

(20%) (RM)

1 Sugar 50 10 60 3.00 180

2 Salt 50 10 60 2.50 150

3 Chicken 2,000 400 2,400 8.00 19,200

4 Coconut Milk 150 30 180 8.00 1,400

5 Caraway 30 6 36 10.00 360

6 Coriander 30 6 36 6.00 216

7 Chilli Paste 40 8 48 25.00 1,200

8 Onion 70 14 84 12.00 1,008

9 Ginger 70 14 84 10.00 840

10 Garlic 50 10 60 8.00 480

11 Roasted 40 8 48 8.00 384

coconut

12 Oil palm 70 14 84 3.00 252

13 Japan Rice 2,500 500 3,000 7.00 21,000

14 Seaweed 30 6 36 15.00 540

15 Plastic Rolls 500 100 600 5.00 3000

Total 5,680 1,136 6,816 130.50 50,210

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7.5.2 Identify supplier

Material Material
Sugar, salt, onion, garlic, chilli Amani Enterprise
paste & ginger No. 45 Jln P 10/21,
Taman Perindustrian Selaman,
43650 Bandar Baru Bangi, Selangor.
Chicken Fitrah Global Food Sdn Bhd
No. 23 Jln Pasar Baru 3,
Off Jalan Meru,
41050 Klang, Selangor.
Coconut milk Pelangi Processing Sdn Bhd
No. 45 Lingkung Raja Lumu,
Kawasan Perindustrian Pandamaran,
42000 Pelabuhan Klang, Selangor.
Caraway, Coriander & Seaweed Habsah Holdings Sdn Bhd
No. 128, Jln 7/3D, Seksyen 7,
43650 Bandar Baru Bangi, Selangor.
Roasted Coconut Abadi Utama Enterprise
No. 10, Jln Kantan,
Kawasan Perindustrian Jln Kantan,
Bukit Beruntung,
48300 Rawang, Selangor.
Oil Palm Famas Enterprise
No. 12 A Jln Taman Tasik Semenyih,
4/8 Taman Tasik Semenyih,
43500 Kajang, Selangor.
Japan Rice Jasmine Food Corporation Sdn Bhd
Lot 5, Jln Sejahtera 25/124,
Seksyen 25,
40000 Shah Alam, Selangor.
Plastic Rolls Plastic Winloy Sdn Bhd
No. 157, Jln 27 Kaw 16,
Kawasan Perindustrian Sungai Rasa,
41400 Klang, Selangor.

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7.6 Machine and Equipment Planning

7.6.1 Amount of machine & equipment required

= Planned Rate of Production per day X Standard production time

Machine productive time per day

Trolley

= 7,788 x 5

960 1000

= 0.04 @ 1 trolley

Pot

= 7,788 x 30

960 250

= 0.97 @ 1 pot

Blender

= 7,788 x 20

960 250

= 0.65 @ 1 blender

Frying pan

= 7,788 x 20

960 250

= 0.65 @ 1 Frying pan

Frying pan

= 7,788 x 20

960 250

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= 0.65 @ 1 Frying pan

Frying pan

= 7,788 x 30

960 250

= 0.97 @ 1 frying pan

Frying pan

= 7,788 x 90

960 250

= 2.92 @ 3 frying pan

Trolley

= 7,788 x 5

960 1000

= 0.04 @ 1 trolley

Trolley

= 7,788 x 5

960 1000

= 0.04 @ 1 trolley

Pressure rice cooker

= 7,788 x 15

960 200

= 0.61 @ 1 rice cooker

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Rice ball machine

= 7,788 x 30

960 300

= 0.81 @ 1 machine

Seal machine

= 7,788 x 30

960 200

= 1.22 @ 2 machine

Trolley

= 7,788 x 5

960 1000

= 0.04 @ 1 trolley

7.6.2 List of machine & equipment

Machine & equipment No of machine / equipment

Pressure rice cooker 1

Rice ball machine 1

Seal Machine 1

Frying pan 3

Pot 1

Freezer 1

Trolley 1

Blender 1

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7.6.3 List of machine supplier

Machine Supplier

Pressure rice cooker, Blender, Senheng Electric Sdn Bhd

Frying pan & Pot 35 & 36G, Jalan Medan PB 4, Pusat 43650

Bandar Baru Bangi, Selangor.

Rice ball machine, Seal Machine & Han Trading & Services

Freezer No. 34 (G) & (1st), Jalan Nenas,

41400 Klang, Selangor.

Trolley Vees Marketing Sdn Bhd

45g Jln Bandar 12 Pusat Bandar Puchong,

47100 Puchong, Selangor.

7.6.4 Machine and Equipment ( purchase)

Item Quantity Price/unit Total Cost

(RM) (RM)

Pressure rice cooker 1 399 399

Rice ball machine 1 1,700 1,700

Seal machine 1 2,000 2,000

Frying pan 3 120 360

Pot 1 120 120

Trolley 1 40 40

Blender 1 250 250

Freezer 1 1,600 1,600

TOTAL 10 6,229 6,469

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7.7 Manpower Planning

7.7.1 Organization Chart for Operation Department

Figure 7.7.1 Organizational Chart

OPERATION
MANAGER

QUALITY OPERATOR
SUPERVISOR TECHNICIAN
CHECKER

7.7.2 Amount of direct labour required (Calculate for every man power)

= Planned Rate of Production per day x Standard production time

Machine productive time per day

Trolley operator

= 7,788 x 8

960 1000

= 0.06 @ 1 operator

Pot operator

= 7,788 x 30

960 250

= 0.97 @ 1 operator

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Blender operator

= 7,788 x 20

960 250

= 0.65 @ 1 operator

Frying pan operator

= 7,788 x 20

960 250

= 0.65 @ 1 operator

Frying pan operator

= 7,788 x 20

960 250

= 0.65 @ 1 operator

Frying pan operator

= 7,788 x 30

960 250

= 0.97 @ 1 operator

Frying pan operator

= 7,788 x 90

960 250

= 2.92 @ 3 operator

Trolley operator

= 7,788 x 5

960 1000

= 0.04 @ 1 operator

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Trolley operator

= 7,788 x 5

960 1000

= 0.04 @ 1 operator

Cleaning rice operator

= 7,788 x 20

960 200

= 0.81 @ 1 operator

Pressure rice cooker operator

= 7,788 x 15

960 200

= 0.61 @ 1 operator

Cooling down the rice operator

= 7,788 x 5

960 200

= 0.20 @ 1 operator

Quantity checker

= 7,788 x 5

960 200

= 0.20 @ 1 operator

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Rice ball machine operator

= 7,788 x 30

960 300

= 0.81 @ 1 operator

Quality checker

= 7,788 x 5

960 200

= 0.20 @ 1 operator

Packing operator

= 7,788 x 30

960 200

= 1.22 @ 2 operator

Seal machine operator

= 7,788 x 30

960 200

= 1.22 @ 2 operator

Packing operator

= 7,788 x 15

960 200

= 0.61 @ 1 operator

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Trolley operator

= 7,788 x 5

960 1000

= 0.04 @ 1 operator

7.7.3 List of Operation Personnel

Position No of personel

Operational Manager 1

Supervisor 1

Operator 21

Quality checker 1

Technician 1

7.7.4 Schedule of task and responsibilities

Position Task and Responsibilities

Operational Manager • To plan, control and coordinate the operational

activities.

• To ensure the business operation works effectively

and avoid wasteful of resources.

• To instruct the operations staff to do their task.

• Responsible to report to the General Manager

regarding the performance of Operational

Department.

Supervisor • To ensure the work is carry out in such a way that no

one’s security, safety or health is jeopardized.

• Play a critical role in supporting the drug-free

workplace program and enforcing the policy.

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Quality checker • To ensure that our product is well produce with the

good quality ingredients.

Technician • To ensure that the processes are maintain in a

preventive to ensure optimum realibility and uptime.

• Responsible for repairing mulfunctioning machine

and equipment.

Operator • To ensure that the product is well operated according

to the target and finish on time.

7.7.5 Schedule of remuneration

Position No. Monthly EPF SOCSO Amount

Salary Contribution (1.75%) ( RM )

(RM) (13%) (RM) (RM)

Operational 1 4,425 575 - 5,000

Manager

Quality checker 1 3,000 390 - 3,390

Supervisor 1 2,500 325 45 2,870

Technician 1 1,800 234 32 2,066

Operator 21 1,000 130 18 24,108

TOTAL 24 12,725 1,654 95 37,434

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7.8 Overhead requirement

7.8.1 Operations Overhead (indirect labor / indirect material / insurance /

maintenance and utilities)

No Types of Overhead Monthly Cost

(RM)

1 Driver 2,600

2 Cleaner 2,000

3 Security 2,000

4 Box for transportation 1,500

5 Electricity 1,500

6 Water 1,000

7 Machine maintenance 1,000

8 Vehicle maintenance 1,000

9 Cleanser 300

10 Gloves 200

11 Gas tank 500

12 Cellophane tape 50

13 Fuel 3,000

TOTAL 16,050

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7.9 Total Operations Cost

Total Operation Cost = Direct Material Cost (total raw material) + Direct

Labor Cost (total remuneration) + Overhead Cost

(Total operations overhead)

= 50,210 + 37,434 + 16,050

= RM 103,694

7.10 Cost per unit

Cost per unit = 103,694

186,912

= RM 0.55

7.11 Productivity Index (PI)

Productivity Index = 186,912

103,694

= RM 1.80

7.12 Business and operation hours

Business hour = 8 hours per day (8.00 a.m until 6.00 p.m)

Operating hour = 8 hours per day (8.00 a.m until 6.00 p.m)

Working days = 6 days per week (Monday – Saturday)

7.13 License, permits and regulations required

7.13.1 Business Premise Licenses And Signboard Licenses

Companies doing business in Malaysia are required to apply for business

premise licenses and signboard licenses from the respective State

Authorities. The requirements for the application of a business premise

license and a signboard license may vary according to each local authority.

Generally, an application for a business license and signboard license must

be accompanied by:

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1) Photocopy of the applicant’s identity card

2) Passport size photograph of the applicant
3) Copy of the company M&A and Forms 9.24 and 49
4) Copy of either the rental agreement or the sale and purchase agreement
of the company’s business premise
5) Copy of the Certificate of Fitness of the company’s business premise
6) Copy of the Fire Department’s support letter
7) Copy of the location plan of the company's business premise
8) Photographs of the business premise
9) Photographs showing the location of the company's signboard
10) Samples of the signboard indicating its design and colors

7.13.2 Halal Certificate by JAKIM

Applicants that are eligible to apply for the Halal Confirmation Certificate are

categorized as follows:

• Producer or manufacture

• Distributor or trade

• Sub-contract manufacture

• Repacking

• Food premise

We are producing a food which it is suitable to apply for the HALAL Certificate

from JAKIM. We must fill in the relevant form:

• Product or Consumer Goods

• Food Premise

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7.13.3 Certificate for safety and health

Factories and Machinery Act 1967 requires manufacturers to obtain

design approval of certificate machinery and certificate of fitness. The

application of approval should be send to Department of Occupational safety

and health. In addition, technical knowledge of occupational safety and

health, a successful safety and health manager and employee must possess

working knowledge of a broad range of business and financial principles and

understanding of related issues such as worker’s compensation, product

safety, environmental laws, quality and labor relations. The Certified Safety

and Health Manager program is designed to provide recognition of those who

can apply a broad range of safety and health management tools

7.14 Operations Budget

Item Fixed Assets Monthly Other

Expenses Expenses
(RM) (RM)
Fixed Asset
Vehicle (hire-purchase) 40,000 - -
Machine & equipment 6,469
Working Capital
Raw material 50,210
Salary, EPF & SOCSO - 37,434 -
Operation overhead 16,050
Rent 10,000
Carriage Inward and duty 500
Other Expenses
Worker’s uniform - - 1,080
Pre-Operations
Deposit Rent 30,000
Deposit utilities - - 1,500
Insurance & Vehicle 560
Roadtax
Halal Certificate 400
TOTAL 46,469 114,194 33,540

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