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OPERATIONS PLAN

yy54yh Segregate all ingredients purchased from supplier to storage area

yh54hy45h54h

Fill in 56h

Packaging

3.2 OPERATIONS LAYOUT

WORKING

AREA
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WASHING AREA

SHOP

STEAMING

STORAGE AREA

OFFICE

3.3 CAPACITY PLANNING

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In production planning, the business will determine how much output to produce for a
certain period such as in a day, a week or a month. The calculations for outputs are as
follows.
Formula:
Average sales forecast per month = Sales/month
Average sales forecast per month = RM 843, 120/ 12 months
= RM70,260

Selling Price Per Unit = RM 30.00

Number of Output Per Month = RM70,260/RM30.00

= 2,342 units per month

If the number of working days per month is 22 days, the amount of output to be
produced per day is:
Number of Output Per Day = 2,342 units per month / 22 days
= 106.45@106 units per day

3.3.1 Capacity planning for xx product A

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YEAR MONTH NUMBER OF OUTPUT

Sales Price per Output per No. of Output per
Forecast unit month working day
(A) (B) (A x B) days per
(RM) (RM) (unit) month (unit)
2018 January 90,000 30.00 3,000 22 136
February 95,850 30.00 3,195 22 145
Month 3 105,000 30.00 3,500 22 159
Month 4 120,000 30.00 4,000 22 182
Month 5 150,000 30.00 5,000 22 227
Month 6 150,000 30.00 5,000 22 227
Month 7 150,000 30.00 5,000 22 227
Month 8 135,000 30.00 4,500 22 205
Month 9 135,000 30.00 4,500 22 205
Month 10 150,000 30.00 5,000 22 227
Month 11 150,000 30.00 5,000 22 227
Month 12 150,000 30.00 5,000 22 227
2018 Total Year 1 421,560 30.00 14,052 22 639
Total Year 2
2019 30.00 15,036 22 683
(increase by 7%) 451,069

3.3.1 Capacity planning for xx product B (please delete if you have only 1 product)
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YEAR MONTH NUMBER OF OUTPUT

Sales Price per Output per No. of Output per
Forecast unit month working day
(A) (B) (A x B) days per
(RM) (RM) (unit) month (unit)
2018 January 90,000 30.00 3,000 22 136
February 95,850 30.00 3,195 22 145
Month 3 105,000 30.00 3,500 22 159
Month 4 120,000 30.00 4,000 22 182
Month 5 150,000 30.00 5,000 22 227
Month 6 150,000 30.00 5,000 22 227
Month 7 150,000 30.00 5,000 22 227
Month 8 135,000 30.00 4,500 22 205
Month 9 135,000 30.00 4,500 22 205
Month 10 150,000 30.00 5,000 22 227
Month 11 150,000 30.00 5,000 22 227
Month 12 150,000 30.00 5,000 22 227
2018 Total Year 1 421,560 30.00 14,052 22 639
Total Year 2
2019 30.00 15,036 22 683
(increase by 7%) 451,069

3.4 MATERIAL PLANNING

3.4.1 List the Raw Materials Required
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Flour
Margarine
Sugar
Yeast
Milk powder
Condense milk
Bread softener
Salt
eggs
Cold water
Cooking oil
Chocolate chip
Milo Protomalt Soft Pack

3.4.2 Bill of Materials for doughnut for 25 pcs

Product No. Description Specification Quantity

101 Flour Bread flour 0.5 kg
102 Margarine Pelangi 0.06 kg
103 Sugar Fine Sugar ( gula prai ) 0.06 kg
104 Yeast Instant yeast 0.01kg
105 Milk powder Nestle powder full cream 0.03kg
106 Condense milk F&N 0.15kg
107 Bread softener Voltex abi 0.15kg
108 Salt - 0.01kg
109 eggs Gred A 2 biji 0.01kg
110 Cold water Capri 0.2lit
111 Cooking oil Murni 1kg
112 Chocolate chip 8gm 0.2kg
113 Milo Protomalt Soft Nestle powder 0.25kg
Pack  
114 Packaging Printed box with labeling 1 unit

Therefore, the bill of material for a piece of doughnut will be as follows:

Description Quantity required for a Cost/Unit Total Cost/Unit

piece of beryls doughnut (RM) (RM)
Flour 0.02kg 2.56 0.0512
Margarine 0.0024kg 8.00 0.0192
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Sugar 0.0024kg 2.80 0.00672

Yeast 0.0004kg 1.30 0.00052
Milk powder 0.0012kg 23.35 0.02802
Condense milk 0.006kg 3.50 0.021
Bread softener 0.006kg 3.40 0.0204
Salt 0.0004kg 0.60 0.00024
eggs 0.0004kg 8.00 0.0032
Cold water 0.008litre 1.38 0.0110
Cooking oil 0.04kg 2.50 0.10
Chocolate chip 0.08kg 3.30 0.264
Milo Protomalt Soft 0.01kg 19.22 0.1922
Pack  
Cost per unit (donut) 0.7177

Packaging (Box 1 0.50 0.50

with printed
labeling)
TOTAL COST PER BOX (3 pieces of doughnut) 2.653

Thus, the cost price for a packet of doughnut (3 pieces) = RM 8.00/box

3.4.3 Materials Requirement Schedule

Material Quantity Number Total Material Price / Total Price

(kg@ of Output Requirement unit (RM)
liter) Per (kg) (RM)
Month
Flour 0.02 3000 60 2.56 153.6

Margarine 0.0024 3000 7.2 8 57.6

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Sugar 0.0024 3000 7.2 2.8 20.16

Yeast 0.0004 3000 1.2 1.3 1.56

Milk powder 0.0012 3000 3.6 23.35 84.06

Condense milk 0.006 3000 18 3.5 63

Bread softener 0.006 3000 18 3.4 61.2

Salt 0.0004 3000 1.2 0.6 0.72

eggs 0.0004 3000 1.2 8 9.6

Cold water 0.008 3000 24 1.38 33.12

Cooking oil 0.04 3000 120 2.5 300

Chocolate chip 0.08 3000 240 3.3 792

Milo Protomalt 0.01 3000 30 19.22 576.6

Soft Pack  
Packaging 1 3000 3000 0.5 1500

TOTAL 3653.22

3.4.4 Purchase Projection Schedule

Table xx: Purchase projection schedule for Product A

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YEAR MONTH Purchase Projection (Product A)

No. of Ouput Total Output
Cost Price Safety Stock Total Purchase
per month per month
(2-5%) (Monthly)
(Unit) (RM) (Unit) (Unit) (RM)
[A] [B] [A x B = C] [C x %= D] [C + D = E]
2018 January 3,000 2.65 7,950 239 8,189

February 3,195 2.65 8,467 8,467

Month 3 3,500 2.65 9,275 278 9,553

Month 4 4,000 2.65 10,600 10,600

Month 5 5,000 2.65 13,250 398 13,648

Month 6 5,000 2.65 13,250 13,250

Month 7 5,000 2.65 13,250 398 13,648

Month 8 4,500 2.65 11,925 11,925

Month 9 4,500 2.65 11,925 358 12,283

Month 10 5,000 2.65 13,250 13,250

Month 11 5,000 2.65 13,250 398 13,648

Month 12 5,000 2.65 13,250 13,250

2018 Total Year 1 52,695 2.65 139,642 2,067 141,709
Total Year 2
2019 56,384 2.65 149,417 2,067 151,484.00
(increase by 7%)
Total Year 3
2020 57,229 2.65 151,658 2,067 153,724.92
(increase by 15%)

Table xx: Purchase projection schedule for Product B

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YEAR MONTH Purchase Projection (Product B)

No. of Ouput Total Output
Cost Price Safety Stock Total Purchase
per month per month
(2-5%) (Monthly)
(Unit) (RM) (Unit) (Unit) (RM)
[A] [B] [A x B = C] [C x %= D] [C+D = F]
2018 January 3,000 2.60 7,800 234 8,034

February 3,195 2.60 8,307 8,307

Month 3 3,500 2.60 9,100 273 9,373

Month 4 4,000 2.60 10,400 10,400

Month 5 5,000 2.60 13,000 390 13,390

Month 6 5,000 2.60 13,000 13,000

Month 7 5,000 2.60 13,000 390 13,390

Month 8 4,500 2.60 11,700 11,700

Month 9 4,500 2.60 11,700 351 12,051

Month 10 5,000 2.60 13,000 13,000

Month 11 5,000 2.60 13,000 390 13,390

Month 12 5,000 2.60 13,000 13,000

2018 Total Year 1 52,695 2.60 137,007 2,028 139,035
Total Year 2
2019 56,384 2.60 146,597 2,067 151,484.00
(increase by 7%)
Total Year 3
2020 57,229 2.60 148,796 2,067 150,863.45
(increase by 15%)

Table xx: Total Purchase projection schedule for Product A+B

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YEAR MONTH Purchase Projection (Product A + B)

Purchase (for Purchase (for Product
Total Purchase
Product A) B)
(Monthly) (Monthly) (Monthly)
(RM) (RM) (RM)
[E] [F] [E + F]
2018 January 8,189 8,034 16,223

February 8,467 8,307 16,774

Month 3 9,553 9,373 18,926

Month 4 10,600 10,400 21,000

Month 5 13,648 13,390 27,038

Month 6 13,250 13,000 26,250

Month 7 13,648 13,390 27,038

Month 8 11,925 11,700 23,625

Month 9 12,283 12,051 24,334

Month 10 13,250 13,000 26,250

Month 11 13,648 13,390 27,038

Month 12 13,250 13,000 26,250

2018 Total Year 1 141,709 139,035 280,744
Total Year 2
2019 151,484 151,484 151,484.00
(increase by 7%)
Total Year 3
2020 153,725 150,863 304,588.37
(increase by 15%)

CASH PAYMENTS FOR PURCHASES

In the month of purchase 80%
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1 month after purchase 20%

2 months after purchase 0%
Total 100%

ENDING STOCK OF RAW MATERIALS RM

End of Year 1 795
End of Year 2 636
End of Year 3 530

ENDING STOCK OF FINISHED GOODS RM

End of Year 1 -
End of Year 2 -
End of Year 3 -

3.5 MACHINES AND EQUIPMENT PLANNING

3.5.1 List the Machines and Equipment Required
Table #: List of Operations Machine

No. Machines Price/per unit

(RM)
1 Mixing machine 99.00
2 Cash register 399.00

Table #: List of Operation Equipments

No. Equipment Price/per unit

(RM)
1 Freezer 1450
2 Refrigerator 1060
3 Trays 27.00

3.5.2 Determine the Quantity for Machine and Equipment

The machine productive time: Operation hours – (Setting up time + Down Time)
Machine Productive Time per day = 8 hours – (10 minutes + 15
minutes)
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= 7 hours 35 minutes

If 1 mixer can produce 20 pieces of doughnut in 15 minutes, thus the mixer’s capacity to
produce per hour is 80 pieces.
Standard production time/ unit = 20 piece / 15minutes
= 1.33 minutes/unit
Therefore, the number of mixer required is:
No. of Machine = Planned Rate of Production per day Standard Production
Machine Productive Time per day x Time /Unit
Required
= 200 units
420minutes x 1.33 min
= 0.63 @ 1 mixer

Table 3.4
Machine and Equipment Requisition Planning Schedule

No. Machines Quantity Price/per unit Total Price

(RM) (RM)
1 Freezer 1 1450.00 1450.00
2 Refrigerator 1 1060.00 1060.00
3 Mixing machine 1 99.00 99.00
4 Trays 8 27.00 216.00
5 Cash register 1 399.00 399.00
Total 3224.00

3.5.3 Identify Suppliers

Chocolate AQUA MIX INDUSTRIES
chip Alamat
1937-c, Kompleks Kilang Sme Ba Jalan Iks Bukit Minyak, Bukit
Minyak, Pulau Pinang 14000
Telefon Fax
04-5025597 04-5080326

Sugar KOPERASI PEKERJA RAPID PENANG 62 BERHAD

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Mezzanine Floor Wisma Mic Pulau Pinang, 657, Jalan Dato’ Keramat ,
10460 Pulau Pinang Tel: 04-227 9007
Eggs - Gred NORTHERN LEGACY RESOURCE
A (PG03353794-M)
Mohamad Shafizan b. Saidin
Phone 0132475306

3.6 MANPOWER PLANNING

3.6.1 List of Operations Personnel
The workers productive hours: Working hours per day – rest time @ workers idling time
Workers productive time/day = 8 hours – 1 hour
= 7 hours @420minutes
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If 1 worker can produce 10 units of doughnut in 40 minutes, thus the worker’s standard
production time is:

Worker Standard Production = 40 minutes / 10 units

Time/Unit = 4 minutes/unit

Therefore, the number of workers required is:

No. of Worker = 200 Worker Standard Production

(8-1) HOURS @420mins x Time /Unit
= 200 units
420 minutes x 4 minutes
= 1.9 @ 2 workers

Table 3.5: Position and Number of Operations Personnel

Position Number of Marketing Personnel

Kitchen helpers 1
Supervisor 1
Total 2

3.6.2 Schedule of Task and Responsibility

Table 3.6: Schedule of Tasks and Responsibilities of Operations Personnel

POSITION Tasks and Responsibilities

Kitchen helpers ???
Supervisor ????
???
3.6.3 Schedule of Remuneration

The remuneration schedules that list the salary and wage structure for each position. Additionally, it
should include the contribution that a company has to allocate to different provident funds like Employees
Provident Fund (EPF) based on the rate stipulated in the Third Schedule of the EPF Act 1991
(www.kwsp.gov.my) and Social Security Organization (SOCSO) contribution to be paid is based on the
SOCSO Contribution Schedule (www.perkeso.gov.my).

Table 3.7: Schedule of Remuneration

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POSITION No. of Monthly EPF SOCSO Total

staff Salary Contribution Contribution
(RM) (RM)
Kitchen helpers 2 950 125 14.85 1,089.85
TOTAL 2 1,900 250 29.70 2,179.70

3.7 OVERHEADS REQUIREMENT

No. Particular Monthly Expenses Other Expenses

(RM) (RM)
1 LPG Gas 112.00 -
2 Indirect materials (dish cleaning soap, 62.00 -
floor cleaner, etc……)
3 Maintenance on machineries and 700.00
equipment
Total 174.00 700.00

3.8 LOCATION PLAN (production site)

Our business location is situated in Seberang Perai Tengah, which is suburb located in
Permatang Pauh, Pulau Pinang, Malaysia.

3.9 BUSINESS AND OPERATIONS HOURS

Business : 8 hours

Operation: 7 hours

3.10 LICENSE, PERMITS AND REGULATION REQUIRED

i) License for signboard

ii) Typhoid injection for the workers (RM 80)
iii) Premise License
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3.11 OPERATIONS BUDGET

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Particular Fixed Assets Monthly Other

Expenses Expenses Expenses
RM RM RM
Fixed Assets
Equipments and machineries 3,224.00

Working Capital
Raw Materials & packaging 8,189.00
Carriage inwards 2,500.00
Remuneration 2,179.70
Overheads 174.00

Other Expenditure
Machines Maintenance Expenses 700.00

Pre-Operations
Deposit (rent, utilities, etc.)
Business Registration & Licenses
Insurance & Road Tax for Motor Vehicle
Other Pre-Operations Expenditure
Sub-Total 3,224.00 13,042.70 700.00
Total 16,966.70

3.12 IMPLEMENTATION SCHEDULE

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Table xxx
Project Implementation Schedule