Beruflich Dokumente
Kultur Dokumente
Operational Plan
Learning Outcome
At the end of the module, students should be able to:
Control/Feedback
The operations plan comprises of the following topics:
Process Planning
Operations Layout
Production Planning
Material Planning
Machine and Equipment Planning
Manpower Planning
Overheads Requirement
Business and Operations Hours
License, Permits and Regulations Required
Operations Budget
Implementation Schedule
Process planning
Process planning involve the identification of the step-
by-step processes from beginning to end in making the
product or in providing the services.
For manufacturing business, the processes involved
will be explained clearly such as the activity involved,
its duration and the equipment used.
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.
The step by step processes can be illustrated using
diagram such as a flow chart or a process chart.
The process chart will use symbols that are universally
recognized in the operations management field.
These symbols are also used in the job activity chart to
show a worker’s activity.
Symbols used in the process chart
Check the quality of the fruits and segregate the bad fruits
Put the fruits into the fruit chopper for chopping process
Put the chopped fruits into the boiler for steaming process
Poor quality fruits are separated or rejected Mix crackers with the right amount of sugar
RECEIVING AREA
FINISHED GOODS STORAGE
WASHING AREA
MIXING SECTION
GRATED SECTION
FILTERING SECTION
TOILET
PRAY ROOM
OFFICE
IN
Milling Grinding
Machine Machine
Drilling
Machine
Tool
Storage
Room
Area
Product layout
This type of layout is suitable for a business that has
product focus or continuous flow production.
The design of this layout is made according to the
sequence of activities to produce the product.
Example of a business that have this kind of layout is a
food processing factory.
Product layout
Office
Filling Area
Finished
Goods
Steaming
Storage
Fruits Chopper
Fruits Cleaning Area
Receiving
Area
Washing Area
Marketing layout
This layout is designed with an intention to maximized
the area available to display goods.
Examples of layout based on marketing can be
observed in the retail business such as book store or
departmental store.
Marketing layout
Pastry Products Frozen Food
Store
Aisle Aisle
Aisle
Cashier
Production planning
It is important to make sure that the business is able to
produce output or to provide services that is enough to
fulfill the expected market demand or sales.
This can be achieved by having a good production
planning.
In production 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.
The business may need the information from the
marketing plan, e.g. average sales forecast.
Example of calculation for output per day:
1. Salaries 4200.00
2. SOCSO 69.25
3. EPF 546.00
4. Rental (Building) 1000.00
5. Telephones bill 60.00
6. Electricity bill 600.00
7. Water bill 300.00
8. Internet bill 68.00
TOTAL 6,843.25
Material planning
Material planning is done to determine the type and
amount of raw materials need for the production
Material planning involved four steps:
o Identify and list down the raw materials required
o Prepare the Bills of Materials
o Calculate the quantity of raw material required
o Identify the suppliers of raw materials
Identify and list down the raw materials required:
Usually in manufacturing business, the raw materials
used is easily identified.
For example, to manufacture pencils, raw materials
needed are hollow wood, lead, eraser, metal band,
paint, glue and packaging box.
In case of retail business, the raw materials is known
as goods. The business need to estimate the amount
of initial goods to be purchased to start the business
operation.
Prepare the bills of materials:
The bills of materials will contains a complete list of
materials, parts or components and the amount
needed to produce a unit of product.
To prepare the bill of material, the entrepreneur must
understand the design of the product.
This bill of material is important information for
purchasing activities.
Examples of bills of materials:
To produce a unit of pencil, the bills of materials is as
follows:
Product No. Description Specification Quantity
101 Half hollow wood 17 cm long 2
102 Lead 17 cm long 1
1.5mm diameter
103 Eraser 0.75 cm long 1
6mm diameter
104 Metal band 2 cm long 1
105 Paint 0.5 ml 1
106 Glue 0.5 ml 1
Examples of materials requirement schedule:
Material Quantity Safety Total Material Price / Total price
Stock Requirement unit (RM)
(RM)
1. Manufacturing activity
Priority should be given to the cost factors.
In manufacturing cost saving would contribute to profit.
2. Service acitivity
In service priority should be given to distance from
market or customers.
Distance from customers will influence sales revenue.
In service business cost saving may not contribute to
sales revenue.
Increase in revenue will contribute to increase in profit.
Factors to be considered for choice of location
• Distance from raw material/suppliers
• Labor supply
• Transportation
• Price of Land or rentals
• Infrastructure
• Climate
• Local Government Policy
• Security
• Facility for expansion and business development
* Business hour and Operations hour:
Business hours refer to the time the business is open
and close the business to the customers.
Example: business hour for bank is 9.30am-4.30pm