OPERATION

1.1.8 OPERATION PLAN

1.1.8.1 Introduction
Operating unit is one of a very important part of doing business, whether big or small
business. This is because through the operation of this product will bring business
growth. With business operations of our company, it can increase profits.
Our business operations are carried out according to plan. It can meet the expectations
of ours customers. This business may be able to meet customer demand. We will
ensure that customers are satisfied with our products. This operation also expressed
about the cost of product information, salaries, operational flow chart, operating time,
budget and list of suppliers.
In addition, we make a schedule management to ensure that our business operations
running smoothly. Therefore, it can meet the demand of customers and gain customer
satisfaction. So indirectly this business can gain the optimum profit
.
1.1.8.2 Operation planning
Using machinery and equipment, this work will be easier and faster. So in a day will
produce a lot of product sales. Businesses can produce large scale production where
production costs can be reduced. it can also facilitate the process of making the
product.

In addition, we will ensure that our customers are satisfied with the products we
produce. We will always keep our employees to be a responsible, diligent, efficient and
honest in performing the work.

1.1.8.3 Process planning

This is an activity chart for manufacturing table:

Raw material arrived from supplier

Move material to premise

Set up the material, put it on storage

Once customer order

Put one scoop ice cube into blender

Secondly, put 2 tbsp sugar syrup

Then, put 2 tbsp of syrup flavor or

coffee powder choosing by customer

After that, put water 400 ml, blend until

all mix
Lastly, put the blend mix in a cup, and
seal it in machine

Packaging and give to customer

Table 1 : Process of Flow Chart

1.1.8..3.1 Production schedule

Business hours refers to the time businesses operate. Business hours also refers to the
time employees must come to work. Our business will be operated for 12 hours per day,
from 10 am to 10 pm. Because AEON MALL operates for 12 hours, so we have to follow
the rules and conditions set by the AEON MALL.

The business and operation schedule

The business and operation hours in our operation business are as follow:

Days

Rest

Time

Monday Friday

10.00 a.m. 10.00 p.m.

Saturday Sunday
10.00 a.m. 10.00 p.m.

Lunch
12.00 a.m. 1.00 p.m.
1.00 a.m. 2.00 pm.
Dinner
6.00 p.m. 7.00 p.m.
7.00 p.m. 8.00 p.m.

Lunch
12.00 a.m. 1.00 p.m.
1.00 a.m. 2.00 pm.
Dinner
6.00 p.m. 7.00 p.m.
7.00 p.m. 8.00 p.m.

Table 2: The business and operation hour

1.1.8.3.2 Employee incentive

To upgrade our quality services at Tanting Tangy Taste Sdn Bhd, we have give incentive
to our staff so that they can work more efficiently and impressive consists to our mission
and vision. The incentive that we have been agrees to give to sour staff as follows:
1. Working period: Our working period is from Monday until Sunday and we give one
day from one week to leaves. Our staff will start work from 10.00 a.m until 10.00 p. m. It
means that our staff duty for 12 hours including an hour for rest and pray.
2. EPF Tanting Tangy Taste Sdn Bhd already contributes about 12 % to all staff from
their monthly salaries.
3. SOCSO Our company has prepared social safety policy (SOSCO) for all staff if they
have got into accidents while doing their work. About 2% will be deducted for SOSCO.

1.1.8.4 Material Requirement Planning

1) Syrup Fruit Flavour
- Lychee

- Mango
- Green Apple
- Strawberry
- Passion Fruit
- Blueberry
- Lemon
- Grape
2) Verity Type Of Coffee
-Espresso
- Cappuccino
- Mocha
- Latte
- Chocolate
-Frappe
- Irish Coffee
3) Verity Of Jelly
- Coffee Jelly
- Mango Jelly
- Green Apple Jelly
- Cranberry Jelly
- Lychee Jelly
4) Starch Balls
5) Cups
6) Straws
7)Plastic Bag
8)ice cubes
9)sugar
10)fresh milk
1) Blender
2) Rice Cooker
3) Water Heater
4) Seal Machine
5) Chiller
6) Pots And Bowl
7)Ice Box And Ice Machine
8)Stainless Steel Equipment
1) Operation Supervisor
2) Employees

The Raw Material

Machine And Equipment

Manpower

Table 3 : Material Requirement Planner

1.1.8.4.1 Monthly Budget Raw Material Requirement Schedule
Material

Quantity
(per box)

Safety
stock
(up to 10%)

Total material
requirement

Price/unit
(RM)

Total Price
(RM)

Syrup fruit
flavour

16

24

15.00

360

Verity type
of coffee

14

21

15.00

315

Verity of
jelly

10

15

13.00

195

60.00

120

12.00

72

39.00

234

Plastic bag

28.50

127.50

Ice cube

120

30

150

180

60

240

60

20

Starch
balls
Straws

Cups

sugar
Fresh milk

TOTAL

80

3.00

450

2.00

480

2.30

184

2 537.50

Table 4 : Monthly Budget Raw Material Requirement Schedule

Each syrup fruit flavour, we buy it 3 unit. Total 24 unit. Each unit have 1 bottle = 5 liter.
We have eight type of coffee. Each coffee flavour we purchase3 unit, total 24 unit. Each
box have 9 packet.
There are 5 types of jelly. Each box have 1 jar of jelly so we purchase 5x3 = 15 unit

Each box of straw have1000 pieces. We purchase 6 boxes x 1000 pieces =6000 pieces.
Each packet of cup have 100 pieces. 1 box have 10 packet = 1000 cups. We purchase
6 box.

1.1.8.4.2 List of Supplier

Raw Material
1. Sween Chan Food Co. Sdn Bhd
No 159, Jalan Panglima Tuan 3,

34570, Ipoh, Perak Darul Ridzuan

2. Yoong Mee Plastic Trdg Sdn Bhd

51872 Industrial Area Taman Meru
Jelapang
Ipoh,Perak, Malaysia

3. ICC Marketing Sdn Bhd

Lot 34, Jalan Rishah Section 15/11,
Industrial Mengelembu,
42300 Ipoh, Perak, Malaysia

Labelling and Packaging

1. Yoong Mee Plastic Trdg

51872 Industrial Area Taman Meru
Jelapang
Ipoh,Perak, Malaysia

. Machine and Equipments

1. IOP Industries Sdn Bhd
Lot 10, Jalan Bendahara ,
Bandar Sri Damansara,

Kuala Lumpur 52210 Wilayah Persekutuan Selangor

2. Technology (M) Sdn Bhd

No. 17, Jalan Emas 9, Taman Emas II,
Bandar Baru Sentosa,
Shah Alam, 43300, Selangor

1.1.8.5 Manpower Requirements

No
.
1

Position
Operation manager

Qualification

Number

Bachelor

Operation supervisor

Workers

Diploma

SPM

Total

4
Table 5: Manpower Requirements

1.1.6.5. Schedule of Remuneration

No

Position

No. of staff
requirement

Salary /
Month
(RM)

EPF
(RM)
12%

SOCSO
(RM)
2%

Total
(RM)

2, 000

240

40

2280

1,200

144

24

1368

1,800

216

36

2052

Operation manager
2
Operation
supervisor
3
Workers
TOTAL

5 000

600

100

5 700

1.1.8.6 Machines and Equipment

No.

Machine

Quantity

Blender

Price / unit Total price

(RM)
(RM)

1.
1 050

2 100

2.
Sealer cup machine

1 850

1 850

Ice machine

3 400

3 400

Chiller

1 300

1 300

Cashier counter

1 400

1 400

Jar and bowl

Ice box

189

189

Other stainless steel equipment

6.00

48

3.
4.
5.
6.

12.00

TOTAL

108

10395.00

Table 8 : Machine and equipment

1.1.8.7 Operations Layout Plan

Layout refers to the arrangement of machine, equipment, workers and other facilities
used in the operations. Our business layout is design in such a way that the production
of goods and services can be done smoothly and efficiently.

1.1.8.7.1 Locations
Location selection is something that is very important as it will impact on sales revenue
and the cost of business operations. So we had to choose a location that has many
visitors. We choose to operate in AEON MALL. This is because the area around the
mall is near 90% residential and 10% manufacturing.

1.1.8.7.2 Distance from raw materials

a raw material supplier location not too far from our premises. It does not take too long.
We can take raw materials from suppliers without taking a long time period. The cost for
transportation also can be reduced.

1.1.8.7.3 The labor supply

Our business location is close to housing. This will give the advantage to get the supply
of labor. The workers also can easily go to work because it is near their home.

1.1.8.7.4 Rental
Our premises are held in a mall namely AEON mall. Rental rates for this premise is
reasonable. so it does not become a burden because the region is a strategic area for
the conduct of business operations with the surrounding residential area and there are
also manufactured.

1.1.8.8 Operation overhead

1.1.8.8.1 Operation cost
Operation cost

Cost (RM)

Water

300

Electricity

300

TOTAL

600

Operation cost per month

Raw material
Workers salary
Utilities
Patty expenses

Cost (RM)
2 537.50
5 700
600
200

TOTAL

9 037.50

Monthly operation cost

Direct material cost
Raw material

Cost (RM)
2 537.50

Direct labour cost

Worker salary

5 700

Overhead cost
Utilities
Patty expenses

600
200

TOTAL
9 037.50

1.1.8.8.2 Operation budget

Item

Fixed Assets
(RM)

Monthly
expenses
(RM)

Fixed Assets
Machine and
equipment

10 395

Monthly expenses
Raw material

2 537.50

Salary
(EPF/SOCSO)

5 700

Petty expenses

200

TOTAL

10 395

8 437.50

FINANCIAL

1.1.9 FINANCIAL PLAN

1.1.9.1 INTRODUCTION
Financial management is a decision making process concerned with planning, acquiring
and utilizing funds. It can be used as a statement to check and evaluate and

organization is performance that is crucial to its development, growth and survival. The
financial manager is the man or woman that is responsibility to in charge with the
financial management.
The financial plan is the step in the preparation of business plan. It is the most crucial
aspects of the business plan and involves determining the total project cost, choice of
sources of financing and preparation on financial projection in terms of pro forma
statements, which include cash flow, income statement and balance sheet. In addition,
the financial plan should be supported by depreciation schedules for every fixed cost
owned as well as amortization schedules for loan and hire purchase repayments. The
financial plan is prepared after all budgets pertaining to marketing, operation and
administration (knows as operating budgets) is completed.
Financial plan shows the short term and long term financial requirement in order to start
a new business. Financial plan give the upper management a financial picture of the
business. It serves as a report, summarizing a business financial status to aid in
managerial decision making. Managers can be use financial statement to obtain
information about events in the time to enable them corrective action in the coming
period or month.
Financial plan also provide to reliable information about charges in net resources
resulting from profit directed activities. It is important to determine the profit of loss of
the business for the relevant year. It was prepared because it will assist partners in
order to know some information that related such as:
Payment of the term loan that company had made.
Their potential return from the business.
Cash flow statement for the accounting period.
To determine the size of investment as implementation coast.
To identify and propose the relevant sources of finance.
To ensure that the initial capital is sufficient for the project to take off.
To appraise the viability of the project before actual investment is committed.
To be used as a guideline for implementation.

Develop a workable and meaningful plan, the entrepreneur have the process of
developing a financial plan. These processes are:

 Gather all financial input.

Prepare the sources of finance schedule.
Prepare the pro forma cash flow statement.
Perform financial analysis based on the above pro forma statements.
The business financial data gathered in the financial statements are analysis in order to
obtain an overall financial picture of the business. The financial ratios are used to
analysis the financial performance of the business, whereas even analysis is used to
determine the volume of sales needed to cover total costs.

OBJECTIVE OF FINANCIAL PLAN

Assess the business environment

Confirm the business vision and objectives

Identify the types of resources needed to achieve these objectives

Quantify the amount of resource (labor, equipment, materials)

Calculate the total cost of each type of resource

Summarize the costs to create a budget

Identify any risks and issues with the budget set

1.1.9.2 Financial information

The estimated cost to start the business is about RM 80, 000.00. The sources of fund
are contributions from partners as opening capital business.

POSITION

NAME OF PARTNERS

PERCENTAGE

General Manager

Nur Merlissa bt Mohd

Izzat

50%

Marketing Manager

Putri Aleesya bt Yusof

30%

Financial Manager

Dhia Delisha bt Izwan

20%

Table 1 : Financial Information

Contribution of the capital by the partners:

NAME OF PARTNERS

AMOUNT (RM)

Nur Merlissa bt Mohd Izzat

40, 000

Putri Aleesya bt Yusof

25, 000

Dhia Delisha bt Izwan

15, 000

Table 2 : Financial information

1.1.9.3 PROJECT IMPLEMENTATION COST & SOURCE OF FINANCIAL

Table 3: project implementation cost & source of financial
PROJECT IMPLEMENTATION COST & SOURCE OF FINANCIAL

Project implement cost

Requirement

Cost

Fixed assets
Land & building

Sources of finance
Loan

Hirepurchase

Own contribution
Cash

2 000

2 000

Signboard

1 000

1 000

Machine & equipment

10 395

10 395

Working
capital

1 month

Administrative
Marketing
Operation
Pre-Operations & Other
Expenditure
Contingencies 10%
TOTAL

8
300.00
6
700.00
8
437.50
6 000

40
832.5

1.1.9.4 PROFORMA BALANCE SHEET

8
437.50

2 000

21
832.50

Existing
F .assets

PRO FORMA BALANCE SHEET

Month 1

Month 2

Month 3

10 359

10 650

12 600

2 537.50

2 537.50

5 700

5 700

Assets
Raw Materials

Current Month Purchases

Raw Materials Used
Salaries, EPF & SOCSO

CONCLUSION

2 537.50
5 700

We are grateful and proud to be able to set up this business plan. A lot of useful
knowledge and experience we have obtained while performing this task. We also know
a little bit and learn how to start a business. So we do planning workers, capital,
financial budget and equipment that will be used. We will make observations for a
business to be conducted.

In addition, we also expect our business to run smoothly and get the target sales.
Although many competition exists. We will make the best products and satisfy our
customers who buy them. We also hope that with all the effort and hard work can
achieve the vision to make this business successful all over the country.

Lastly, we expect this business to be more widespread and spreading nationwide. We

will provide a full commitment to this business.