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Module 9 THE OPERATIONS PLAN
LEARNING OUTCOMES At the end of the module, students should be able to: ,[object Object],[object Object],[object Object]
INTRODUCTION ,[object Object],[object Object],[object Object]
Components in an operations system The components of an operations system that is involved in the transformation of business input into output comprises of the following: ,[object Object],[object Object],[object Object],[object Object],[object Object]
Schematic Diagram of an Operations System The components of an operations system can be portrayed in the schematic diagram as shown below: Input Output Feedback External Environment Factors Transformation Process Transformation Process
OPERATIONS PLAN ,[object Object],[object Object],[object Object]
The operations plan comprises of the following topics: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
PROCESS PLANNING ,[object Object],[object Object],[object Object]
PROCESS PLANNING (cont.) ,[object Object],[object Object],[object Object]
Symbols Used in the Process Chart Operation Activity that modify, transform or give added value to the input Transportation Movement of materials or goods from one place to another Inspection Activity that measure the standard or quality  Symbol Activity Description Delay Process is delayed because in process materials are waiting for next activity Storage Finished product or goods are stored in the storage area or  warehouse
Flow Chart for the Production of Mixed Fruits Jelly Transfer the fruits from the store to the production area Check the quality of the fruits and segregate the bad fruits Clean the fruits under running water Put the fruits into the fruit chopper for chopping process Use electric ladle to stir the fruit until the fruits change into pulp Add ten parts of water into the mixture Boil the mixture for 90 minutes Put the chopped fruits into the boiler for steaming process
Activity Chart for Web Designing Services Greet the client Invite the client into the discussion room Get the relevant information from the client Brief the client about terms and conditions Get the agreement from the client regarding terms and condition Work on the design of the web Get the feedback from the client Make the amendment accordingly Make a presentation to the client Send the client to the door
OPERATIONS LAYOUT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Types of Layout ,[object Object],[object Object],[object Object],[object Object]
Types of Layout (cont.) ,[object Object],[object Object],[object Object],[object Object]
Types of Layout (cont.) ,[object Object],[object Object],[object Object]
Example of Layout Based on Product Filling Area Office Steaming Receiving Area Finished Goods Storage Fruits Cleaning Area Washing Area Fruits Chopper
Example of Layout Based on Process Milling Machine Grinding Machine Drilling Machine Office Tool Room Storage Area
Example of Layout Based on Marketing Store Cashier Aisle Frozen Food Aisle Pastry Products Aisle
Example of Layout in a Restaurant Cashier Food Display Counter Beverages Dining Area Kitchen Store Food Counter Toilet
PRODUCTION PLANNING ,[object Object],[object Object],[object Object],[object Object]
Example of calculation for output per day Average sales forecast per month = RM 25,200.00 Price per unit = RM 15.00 Number of output per month =  RM 25,200.00   RM 15.00 = 1,680 units If the number of working days per month is 24 days The amount of output to be produced per day is: =  1,680 units 24 days = 70 units per day
MATERIAL PLANNING ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Identify and list down the raw materials required ,[object Object],[object Object],[object Object]
Prepare the bills of materials ,[object Object],[object Object],[object Object]
Example of Bills of Materials ,[object Object],1 0.5 ml Glue 106 1 0.5 ml Paint 105 1 2 cm long Metal band 104 0.75 cm long 6mm diameter 17 cm long 1.5mm diameter 17 cm long Specification Product No. Description Quantity 101 Half hollow wood 2 102 Lead 1 103 Eraser  1
Examples of Materials Requirement Schedule Material Quantity  Safety Stock Total Material Requirement Price / unit (RM) Total price (RM) Flour 50 Kg 5 kg 55 1.2 66 Sugar 50 Kg 5kg 55 2.8 154 Eggs 200 units 20 220 0.15 33 Corn Syrup 100 Liter 10 110 3 330 Margarine 100 Kg 10 110 2 220 Total         803
MACHINE & EQUIPMENT PLANNING ,[object Object],[object Object],[object Object],Steps to determine  machine and equipment requirement:
Factors to be considered in purchasing machine  and equipment  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Examples of Machine & Equipment Requisition Planning Schedule No. Machine Quantity Price / Unit  (RM) Total Price (RM) 1. Mixer 1 2000 2000 2. Cutter 2 1000 2000 3. Cash Register 1 1500 1500 Total 5500
Steps to determine quantity for machine & equipment ,[object Object],[object Object],[object Object],[object Object],[object Object]
Formula To Calculate the amount of machine require: Machine Productive Time per day Planned Rate of Production per day X Standard Production Time / Unit = No. of Machine Required
MANPOWER PLANNING Steps to determine the amount of direct labor required by the venture: ,[object Object],[object Object],[object Object],[object Object],[object Object]
Formula To Calculate the amount of direct labor required Worker Productive Time per day Planned Rate of Production per day X Worker Standard Production Time / Unit = No. of Worker Required
[object Object],No Position No. of Staff Required Salary/Month (RM) EPF  (RM) 13 % Socso (RM) 2% Total (RM) 1 Operation Manager 1 2000.00 260.00 2260.00 2 Total
OVERHEADS REQUIREMENT ,[object Object],[object Object],[object Object]
LOCATION PLAN ,[object Object],[object Object],[object Object],[object Object],[object Object]
Factors that Influence the Choice of Location ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Factors to be considered for Choice of Location ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BUSINESS AND OPERATIONS HOURS ,[object Object],[object Object],[object Object]
BUSINESS AND OPERATIONS HOURS (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object]
LICENSE, PERMITS and REGULATIONS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
OPERATIONS BUDGET ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
OPERATIONS BUDGET (cont.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
OPERATIONS BUDGET (cont.) ,[object Object],[object Object],[object Object]
Example of Operations Budget RM 7,000 RM 30,100 RM 80,500 Total RM 6,000 RM 1,000 RM 20,000 RM  6,500 RM  600 RM  3,000 RM 35,500 RM 45,000 Machine and Equipment Factory Renovation Raw Materials Wages + EPF + SOCSO Utilities  Factory Rent Deposit for rent Deposit for utilities Other Expenses Monthly Expenses Fixed Asset  Item
IMPLEMENTATION SCHEDULE ,[object Object],[object Object],[object Object]
The Importance of Project Scheduling ,[object Object],[object Object],[object Object],[object Object],[object Object]
Example of Project Implementation Schedule 1 month June 2009 Installation of machines 1 month June 2009 Recruitment of labours 3 months April – June 2009 Procurement of machines and raw material 1 month April 2009 Renovation of premise 3 months Feb – Mac 2009 Searching for business premise 4 months Jan – April 2009 Application for permits and license 3 months Jan – Mac 2009 Incorporation of business Durations Deadlines Activities
END OF MODULE 9

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Ent300 Module09

  • 1. Module 9 THE OPERATIONS PLAN
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  • 5. Schematic Diagram of an Operations System The components of an operations system can be portrayed in the schematic diagram as shown below: Input Output Feedback External Environment Factors Transformation Process Transformation Process
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  • 10. Symbols Used in the Process Chart Operation Activity that modify, transform or give added value to the input Transportation Movement of materials or goods from one place to another Inspection Activity that measure the standard or quality Symbol Activity Description Delay Process is delayed because in process materials are waiting for next activity Storage Finished product or goods are stored in the storage area or warehouse
  • 11. Flow Chart for the Production of Mixed Fruits Jelly Transfer the fruits from the store to the production area Check the quality of the fruits and segregate the bad fruits Clean the fruits under running water Put the fruits into the fruit chopper for chopping process Use electric ladle to stir the fruit until the fruits change into pulp Add ten parts of water into the mixture Boil the mixture for 90 minutes Put the chopped fruits into the boiler for steaming process
  • 12. Activity Chart for Web Designing Services Greet the client Invite the client into the discussion room Get the relevant information from the client Brief the client about terms and conditions Get the agreement from the client regarding terms and condition Work on the design of the web Get the feedback from the client Make the amendment accordingly Make a presentation to the client Send the client to the door
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  • 17. Example of Layout Based on Product Filling Area Office Steaming Receiving Area Finished Goods Storage Fruits Cleaning Area Washing Area Fruits Chopper
  • 18. Example of Layout Based on Process Milling Machine Grinding Machine Drilling Machine Office Tool Room Storage Area
  • 19. Example of Layout Based on Marketing Store Cashier Aisle Frozen Food Aisle Pastry Products Aisle
  • 20. Example of Layout in a Restaurant Cashier Food Display Counter Beverages Dining Area Kitchen Store Food Counter Toilet
  • 21.
  • 22. Example of calculation for output per day Average sales forecast per month = RM 25,200.00 Price per unit = RM 15.00 Number of output per month = RM 25,200.00 RM 15.00 = 1,680 units If the number of working days per month is 24 days The amount of output to be produced per day is: = 1,680 units 24 days = 70 units per day
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  • 27. Examples of Materials Requirement Schedule Material Quantity Safety Stock Total Material Requirement Price / unit (RM) Total price (RM) Flour 50 Kg 5 kg 55 1.2 66 Sugar 50 Kg 5kg 55 2.8 154 Eggs 200 units 20 220 0.15 33 Corn Syrup 100 Liter 10 110 3 330 Margarine 100 Kg 10 110 2 220 Total         803
  • 28.
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  • 30. Examples of Machine & Equipment Requisition Planning Schedule No. Machine Quantity Price / Unit (RM) Total Price (RM) 1. Mixer 1 2000 2000 2. Cutter 2 1000 2000 3. Cash Register 1 1500 1500 Total 5500
  • 31.
  • 32. Formula To Calculate the amount of machine require: Machine Productive Time per day Planned Rate of Production per day X Standard Production Time / Unit = No. of Machine Required
  • 33.
  • 34. Formula To Calculate the amount of direct labor required Worker Productive Time per day Planned Rate of Production per day X Worker Standard Production Time / Unit = No. of Worker Required
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  • 46. Example of Operations Budget RM 7,000 RM 30,100 RM 80,500 Total RM 6,000 RM 1,000 RM 20,000 RM 6,500 RM 600 RM 3,000 RM 35,500 RM 45,000 Machine and Equipment Factory Renovation Raw Materials Wages + EPF + SOCSO Utilities Factory Rent Deposit for rent Deposit for utilities Other Expenses Monthly Expenses Fixed Asset Item
  • 47.
  • 48.
  • 49. Example of Project Implementation Schedule 1 month June 2009 Installation of machines 1 month June 2009 Recruitment of labours 3 months April – June 2009 Procurement of machines and raw material 1 month April 2009 Renovation of premise 3 months Feb – Mac 2009 Searching for business premise 4 months Jan – April 2009 Application for permits and license 3 months Jan – Mac 2009 Incorporation of business Durations Deadlines Activities