Kolej Profesional MARA Bandar Melaka

Lesson Plan

Course : MGT3573 OPERATION MANAGEMENT

Topic : CHAPTER 2 - Facility Location/Plant Location
Sub Topic : Methods of Evaluating facility location/Plant Location Model
i. Break-even analysis
ii. Profit-loss approach
iii. Breakeven Analysis – Choice of Production Process
iv. BEP: Selecting Location based on Total Cost Analysis
Semester : 5 Class: DEN 6A
Date: Tuesday
Week: 24.10.17
2
Time: 8.30am – 10.30am 2.00pm – 4.00pm
Venue: BK07-A4
Learning Outcomes:
By the end of the lesson, students should be able to:

1. Discuss the formula given for plant location model.

2. Calculate for calculation Breakeven Analysis – Choice of Production Process based on example 2.4 (text-
book)
3. Calculate for calculation BEP: Total Cost Analysis based on example 2.5(textbook)
4. Discuss questions (include Past year questions) that relate to calculation Break Even Point, Profit and To-
tal Cost.
Previous Knowledge:
Students relate previous knowledge for subjects economics and Entrepreneurial Finance
Contents:
Methods of Evaluating facility location/Plant Location Model

i. Break-even analysis: BEP = FC / (SP – VC)

ii. Profit-loss approach: P = TR –TC
(SP x Q) – [FC + (VC x Q)]
iii. Breakeven Analysis – Choice of Production Process
Total Cost (TC) = Fixed Cost(FC) + Total Variable Cost (TVC) – without selling price
iv. BEP: Selecting Location based on Total Cost Analysis
Total Cost (TCA) = Total Cost (TCB)– indifferent point
Learning Activities:

1. Set induction (5 minutes)

2. Lecture (35 minutes)
3. Discussion (15 minutes)
4. Question and answer ( 5 minutes)
Soft Skills: Teaching and learning aids:
Knowledgeable: 1. White board
- Students get extra knowledge by using sim- 2. Module & Textbook (page: 15 – 78)
ple calculation techniques. 3. Marker pen
Evaluation: References:
Exercises and Past year questions Rosliza Md Zani, Mohd Radzi Mohd Khir, Operations
Management for UiTM, Oxford Fajar 2016 – Textbook

Heizer, J. and Render B. (2014). Principles of Operations

Management: Sustainability and Supply Chain
Management (Global Edition), 11th edn., New jersey,
US: Prentice Education Inc.book)
Reflection:

Prepared by: ________________________ Date: __________

(NORHAFIDZAH BINTI AB. RAHAMAN)

Checked & Approved by: ________________ Date: __________

H.O.D :( PN.NORASHIKIN BINTI ALI HASAN)
 Kolej Profesional MARA Bandar Melaka
Lesson Plan

Course : MGT3573 OPERATION MANAGEMENT

Topic : CHAPTER 2 - Facility Location/Plant Location
Sub Topic : Methods of Evaluating facility location/Plant Location Model
- Ranking/factor rating technique
Semester : 5 Class: DEN 6A
Date: WEDNESDAY
Week: 25.10.17
2
Time: 8.30am – 10.30am 2.00pm – 4.00pm
Venue: AV LIBRARY BK08-A4
Learning Outcomes:
By the end of the lesson, students should be able to:

1. Explain the differences between tangible and intangible factor that related to Ranking / Factor rating method
2. Discuss the formula given for plant location model – rating & ranking
3. Calculate for calculation Ranking / Factor rating method –based on example 2.6 (textbook)
4. Discuss all exercises that related to the subtopic.
Previous Knowledge:
nil
Contents:
Tangible and intangible factors: Ranking/Factor Rating Method

A company is conducting a survey on three (3) sites for a new fast food outlet. Annual operating costs (RM million)
Tangible Factor Muara Sg. Baru Chengei
Labour 0.95 1.10 1.20
Supplies 0.06 0.06 0.05
Transportation 0.13 0.15 0.18

Intangible Factors Muara Sg. Baru Chengei

Labour availability Good Excellent Very Good
Proximity to market Very Good Very Good Good
Community facilities Good Poor Good
Transportation system Fair Good Good

Among the intangible factors to be considered, proximity to market is the most important factor, followed by the labour
availability, community facilities and transportation system.

The rating for each factor is done as follows:

Excellent: 5, Very Good: 4, Good: 3, Fair: 2, Poor: 1

Learning Activities:
1. Set induction (5 minutes)
2. Lecture (35 minutes)
3. Discussion (15 minutes)
4. Question and answer ( 5 minutes)
Soft Skills: Teaching and learning aids:
1. Clarify
 students clarify on how to choose the best location 1. White board
for their business 2. Module (page: 15-78)
3. Textbook
2. Knowledgeable:
4. Marker pen
 Students get extra knowledge in location decisions.
Evaluation: References:
1. Exercises Rosliza Md Zani, Mohd Radzi Mohd Khir, Operations
2. Past year questions Management for UiTM, Oxford Fajar 2016 – Textbook

Heizer, J. and Render B. (2014). Principles of Operations

Management: Sustainability and Supply Chain
Management (Global Edition), 11th edn., New jersey,
US: Prentice Education Inc.

Reflection:

Prepared by: ________________________ Date: __________

(NORHAFIDZAH BINTI AB. RAHAMAN)

Checked & Approved by: ________________ Date: __________

H.O.D :( PN.NORASHIKIN BINTI ALI HASAN)