Introduction

BAGUS Baking Solutions with a wide and comprehensive range of HALAL baking
and food ingredients, baking tools, equipment, utensil, kitchen wares, recipes book, cake
decoration and baking accessories. BAGUS baking also sold variety of cake in their store and
one of the famous in Selangor state.
The input in the operation plays importance role. This includes the need of sufficient
manpower, material, machinery, and the right method. Cash flow and time is an importance
factor as well as its determine the output of product which is bakery.

Finance
A suitable budget is required to start off, with a 60% capital expenditure and a 40%
operation expenditure as a whole. The financial aspect requires the proper management of cash
flow of the company. The receivables and payables need to be monitored to make payments,
accounting records to be kept proper and prepare billing. Finally, the total operating transaction
needs to be recorded, financial statements generated and analyzed for improvements and
expansion.

I.

Capital Expenditure
Fixed assets will be purchased. This starts with a suitable premise and location for
production. The building must be able to house machineries such as grinder, mixer, oven
and also storage space for the raw material. Next, we will need to invest in transportations.
Most required would be lorry and vans to deliver finishing product to customer or retailer.

II.

Operation Expenditure
The operation expenditure has a wider scope although it only requires 40% from the
overall budget. The office supplies will be purchased. Utility expenses include telephone
bills, electrical bills and water bills will be covered. The logistic expenses need to be
budgeted. Upon employment, wages of employees need to be worked out to suite role
and expertise. As equivalent to this, purchases of raw materials such as flour, baking
soda, sugar, milk, and creamer are budgeted.

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Employee
Staffs are employed based on the departments and required work. As far as the
operation of the company is concerned, suitable employees are assigned to the respective
departments. Each staff has their own task and work to make sure all the activities for the
bakery are efficiency and the aiming task must be a line with company objective.
I.

Market Department
The marketer staff needs to be progressive to promote BAGUS Bakery to attract
customer buying their cake. It also importance for staff in market department to have
high knowledge about their product.

II.

Production Department
The production staffs need to be segregated to check on the incoming materials, halal
compliance from supplier and identify acceptable and materials that falls under reject
category. During production, staff needs to do sampling of each process and analysis of
product.

III.

Packaging Department
Staffs employed at packaging department will focus on the safety of the finished and
the packaging as well. Correct and suitable materials are selected for packaging. The
job scope includes storage of the packed product before delivery. Staff in this
department need to wear clean glove to pack the product. It importance to keep the
package clean and attractive for customer.

IV.

Logistic Department
Logistics department staffs will have an equally wide role to manage and control the
supplier, coordinate new products and establish service level requirements. Logistic
staff new to ensure all the raw material receive from supplier in acceptable quality and
quantity, just in time, and also HALAL.

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Production and Packaging

The production of bakery are compounded to a clean environment. Employees are
required to wear clean attire which includes apron, cap and gloves. This assures the product is
not contaminated during production.

The end product is packaged and sealed to preserve its freshness and this ensures no
bacterial contamination on the food. Packaging is done using materials that has been tested
safe and free from toxins. These materials are also tested to have good shelf life. Storage must
be done in the right temperature. This best suites storage in the cold room, until it is transported
to customer and retailer.

Packaging is also done in a way where it can attract customers and look appetizing on
the outside itself. Suitable and exciting advertisement on the package can help boost up the
sales of the product.

Quality assurance
Quality is checked on all materials used. To start off, the raw materials needs to be
checked on its freshness, free from contamination and from a halal source. Next the handling
of the raw materials into processing is monitored. The employees must be able to practice a
clean environment work and have self-hygiene during the production process. All the material
must be measure on precise amount before mixing process
The process of baking must be monitor by senior to maintain the quality and to avoid
the product defect cause by overcook. Quality control is done on final product to make sure it
meets the requirement of the market as well as the company. The quality of the packaging is
also checked to make sure the product can be preserved well until the shelf life stated on the
packaging.

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Logistics
Logistics covers 2 sections. This includes the supplier who is providing the raw
materials and the client who purchases the end product.

i) Supplier
Logistics which includes procurement will manage and control the activity of the
supplier. Purchases will be made through the finance department and logistics will take
over the stock and storage of the materials for production. The department will ensure
sufficient supply of materials for production. This will be done based on the demand
towards the product.

ii) Client
Logistics will take control of the delivery of the end product to the clients, which
includes shops, market and restaurants. A routine schedule is worked on based on the
regular clients and their volume for delivery.

Summary
The setup of 'BAGUS Baking Solution ' comprises the financial aspect, employment,
production and packaging, quality assurance and logistics. The employee is a very important
aspect as the right number of staff and qualification of the staffs will determine the volume and
quality of the end product. Staff in front row is critical because total quality management
(TQM) is starting from raw material and this also show how importance to choose the right
and suitable supplier for raw material. Staffs in production line also need to be pro-active in
company to maintaining the process smooth and evaluate the product in making process.
Marketing being another aspect is equally important as it is the key section to introduce the
product to the market outside and helps the company to expand the production volume as well
as the revenue.

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