4.

0 OPERATION PLAN

4.1 PROCESS PLANNING

Process planning involve the identification of the step-by-step processes from beginning to end
in providing the services. For service business, the process planning will explain all the steps that
should be taken from start to finish to provide the service to the customer. Below are the process
chart for washing and drying:

Process chart for washing:

Purchase or reload the smart card at the smart card top up

machine.
Load clothes loosely into washer and close door firmly.

Insert smart card.

Select cycle type and water temperature.

Add extra detergent and softener if needed.

Press “Start” and remove the smart card

Unload the laundry

Finish
Process chart for dryer:

Purchase or reload the smart card at the smart card top up

machine

Clean lint screen and load clothes into dryer.

Insert smart card

Select water temperature.

Press “Start” and remove the smart card

Unload the laundry

Finish
4.2 OPERATIONS LAYOUT

Office
Table
Door Storage room

Dryer Sink
Smart-card
topup machine

Massage chair
Table Washer

Vending machine

Figure 1: Operation Layout of Hippo Laundry

4.3 SERVICE PLANNING

Good operation planning is important to make sure that the business is able to produce output
that fulfill sales forecast. In operation planning, the business will determine how much output to
produce for a certain period of time such as in a day, a week or a month.

Hippo Laundry’s Calculation for Output per Day

Average sales forecast per month = RM 150000.00

Price per unit = RM 10.00

Number of output per month = RM 150000.00/RM 10.00

= 15000 units

Average number of laundry operating day is 30 days.

The amount of output to be produced per day is:

= 15000 units/30 days

= 500 units per day

4.4 MATERIAL PLANNING

Material planning is done to determine the type and amount of raw materials need for the
business operation. The first step in material planning is to identify and list down the raw
materials. For our laundry business, the materials that we need are detergent and softener. Since
there will also a vending machine in our laundry, we also need to estimate the amount of drinks
that need to be purchased.

Next, we need to prepare the bills of materials that will contains a complete list of materials,
parts or components and the amount needed for our business operation. The bills of materials will
be as follows:

Safety Price /
Total Material Total price
Material Quantity unit
Stock Requirement (RM)
(RM)

Detergent 250 liter 10 liter 260 liter 2.00 520.00

Softener 200 liter 10 liter 210 liter 2.00 420.00

Drinks (can) 200 units 20 units 220 units 1.00 200.00

Drinks (bottle) 150 units 10 units 160 units 2.00 320.00

Mineral water 50 units 10 units 60 units 1.00 60.00

Total 1520.00
4.5 MACHINE & EQUIPMENT PLANNING
The business’ machine and equipment requisition planning schedule will be as follows:

No. Machine Quantity Price / Unit (RM) Total Price (RM)

1. 14 kg washer 2 19 720 39 440

2. 10 kg washer 2 19 000 38 000

3. 6 kg washer 2 18 120 36 240

4. 14 kg dryer (double deck) 3 30 000 90 000

5. Vending machine 1 11 500 11 500

6. Massage chair 1 7 000 7 000

7. Smart card top-up machine 1 5 000 5 000

8. Smart card reader 12 1 000 12 000

10. CCTV & Alarm System 1 1600 1600

Total 239 330

WAITING AREA FURNITURE AND FITTINGS

TYPE PRICE/UNIT (RM) QUANTITY TOTAL AMOUNT

(RM)
Table 300.00 1 300.00
Chair 150.00 2 300.00
Sofa 200.00 1 200.00
Trash cans 10.00 1 10.00
Florescent lamps 40.00 3 120.00
Fan 120.00 3 360.00
Sink 100.00 1 100.00
Fire Extinguisher 80.00 1 80.00
Total 1470.00

4.6 OVERHEADS REQUIREMENT

Once the business's operations have been planned, the expenses associated with the
operation of the business can be developed. These are usually referred to as overhead
expenses. Overhead requirement or expenses refer to all non-labor expenses required to
operate the business. Expenses can be divided into fixed which is those that must be paid,
usually at the same rate, regardless of the volume of business and variable, those which change
according to the amount of business.
Overhead requirement for Hippo laundry include the following:

 Maintenance and repair

 Rent
 Utilities
 Loan interest
4.7 LICENSE AND PERMITS REQUIRED
 Get business license from Suruhanjaya Syarikat Malaysia (SSM)
 Attain fire and safety permit from Jabatan Bomba Penyelamat Malaysia (JBPM)
 Obtain air and water pollution control permit from Majlis Pembandaran Kuantan (MPK)
 Acquire license for signboard from Majlis Pembandaran Kuantan (MPK)

4.8 OPERATIONS BUDGET

MONTHLY
ITEM FIXED ASSET OTHER EXPENSES
EXPENSES
Machine and equipment RM 239330.00
Furniture and Fittings RM 1470.00
Shop renovation RM 3000.00
Piping and plumbing RM 1500.00
Electric wiring RM 2500.00 RM 1520.00
Raw materials RM 1529.50
Wages + EPF + SOCSO RM 5000.00
Utilities RM 2800.00
Maintenance RM 300
Shop rent RM 4500.00
Deposit for rent RM 1000.00
Deposit for utilities

Total RM 247800.00 RM 11,149.50 RM 5500.00

4.9 IMPLEMENTATION SCHEDULE

ACTIVITIES DEADLINES DURATIONS

Incorporation of Business

February – April 2017 3 Months

(Mdm, we are not sure about this. Do
we need incorporation of business?)

Application for Permits and License February – May 2017 4 Months

Searching for Business Premise June – August 2017 3 Months

Renovation of Premise September 2017 2 Months

Procurement of Machines and Raw September – November 3 Months

Material 2017

Installation of Machines December 2017 1 Month