Chapter 4: Operational Plan

CHAPTER 4: OPERATIONAL PLAN

4.0 OPERATION PLAN

The operation plan is one of the most important factors to consider in a business. Like
others companies, our target are to ensure that our products/services are the best in
quality and able to satisfy our customers’ need and wants. Hence, a systematic
operational plan is formed so that our business runs smoothly and achieves its
objectives.

4.1 OBJECTIVES
The objectives of our operational plan are as follows:
 To ensure the business operation system runs smoothly order to maintain the
quality of the products and services to customers.
 To optimize customer satisfaction and fulfill their expectations towards our ability
to provide high quality products and timely services.
 To achieve consistency and stability in our production and services.
 To ensure the quality of our products/services meet the established standards.
 To ensure our business is profitable and successful.

4.2 OPERATIONAL PROCESS

4.2.1 Activity chart

 Before the entrepreneur can produce an output either in the form of product or services,
he will have to undertake process planning.
 .This planning will involve identifying the step-by-step processes from beginning to end
to make the product or to provide the services.
 Entrepreneur must identify all activities involved in the manufacture of the product
 These activities will be arranged in the sequence from beginning to end
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4.2.2 Process Chart

 5 Universally recognize symbol
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Example: Activity Chart for laundry services (Services)

Clients fill in the form for a new member card

(If already a member)

Show member card

Get information from client

Weighing the apparels

Key-in the information

Give temporary receipt to client

Put copy of the receipt into the client’s apparel bag

Transfer the apparels basket

Check and diagnose the apparels

If damage
Call the client

Transfer to the washing department

Transfer to the dryer machine

Transfer to the fold section Transfer to the iron section

Special perfume spraying

Put into a plastic

Put the copy of receipt into the plastic

Put it on the rack

Deliver the client’s apparel

Keep the copy of the receipt for report and evidence

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4.2.3 Flow Chart

Example: Flow chart production Mixed fruits Jelly (Product)

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4.3 OPERATIONS LAYOUT

 Refers to arrangement of machinery, equipment, workers, and other facilities used in
operation.
 Types of layout (choose either one)
o Based on product
o Based on process
o Based on marketing

Example:

Operation layout based on process

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4.4 PRODUCTION PLANNING

Briefly explain what is production planning?

4.4.1 Calculation for output per day

Example:
Average sales / month : RM 23, 550.00 (refer sales forecast year1 in
marketing plan)
Price / unit : RM 10.00 (refer selling price in marketing plan)
No. of Output / month : RM 23, 550 / RM 10.00
= 2,355 units / month
Working days : 26 days
No. of Output / day : 2, 355 units / 26 days
= 91 units / day

4.4.2 Position and number of personnel

Position No. of personnel
Chef 10
General worker 14
Total 24

4.4.3 Schedule of Task and Responsibilities

Position Task and Responsibilities
Chef
General worker
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4.4.4 Schedule of Remuneration

The remuneration schedule 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).

POSITION NO. MONTHLY EPF SOCSO TOTAL

SALARY CONTRIBUTION CONTRIBUTION (RM)
(RM) (RM) (RM)
Chef 10
General 14
worker

4.5 MATERIAL PLANNING

Briefly explain regarding the function of raw materials used as stated before.

MATERIALS QUANTITY SAFETY TOTAL PRICE TOTAL

STOCK MATERIAL (RM) PRICE
(10%) REQUIREMENT
Flour 50 kg 5kg 55kg 1.20 66.00

Sugar 50kg 5kg 55kg 2.80 154.00

Margarine 100kg 10kg 110kg 2.00 220.00

TOTAL 440.00

4.5.1 FUNCTION OF MATERIAL

Explain each material that you used in the production plan
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4.6 MACHINE AND EQUIPMENT PLANNING

Item Quantity Price per unit Total cost (RM)

TOTAL

4.6.1 List of Suppliers

LISTS OF MACHINE FUNCTION OF SUPPLIERS ADDRESS

MACHINE
Rolling Pan To roll the dough Khind Penawar
and make it become Gemilang
thin. Trading
207A , Tingkat
Atas, Taman
Nenas,Jalan
Kelang Lama,
09000, Kulim.

4.7 BUSINESS AND OPERATION HOUR

4.7.1 Business Hour

Day Time
Monday – Thursday 9.00 a.m. – 5.00 p.m
Friday Close
Saturday - Sunday 9.00 a.m. – 2.00 p.m.
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4.7.2 Operation Hour

Day Time
Monday – Thursday 8.00 a.m. – 6.00 p.m
Friday Close
Saturday - Sunday 8.00 a.m. – 3.00 p.m.

4.8 LICENSE, PERMITS AND REGULATIONS

 Briefly explain the license required in doing the business.
Explain the procedure to apply the license and the license purpose

4.9 OPERATIONS OVERHEAD

No. Overheads Cost (RM)

1. Repairs and maintenance 300
2. Utilities 500
3. Transportation 300
TOTAL 1100
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4.10 OPERATION BUDGET

Item Fixed Assets Monthly Other Expenses

Expenses (RM) Expenses (RM) (RM)
Machinery and XXXX
equipment
Vehicles XXXX
Remuneration XXX
Raw Materials XXX
Utilities XXX
Other expenditure:
Road tax XXX
Insurance XXX
TOTAL

4.11 IMPLEMENTATION SCHEDULE

 Explain the time frame for each activity involved in operation plan by using Gantt chart

Activities Deadlines Duration

Incorporation of business Nov-Dec 2020 2
Application for permits & July 2018- Dec 2020 6
license
Searching of premise Feb-April 2020 3
Renovation of premise May-June 2020 2
Procurement of machine and July-September 2020 3
raw material
Recruitment of labors Oct 2020 1
Installation of machine Nov-Dec 2020 2