TOPIC 7

OPERATIONAL PLAN

Lecture Content

Operation Concept
Site Location and Premises Selection
Manufacturing/Services Capacity Planning
Raw Materials/Production Materials Planning
Manufacturing System and Process Planning
Production Schedule
Quality in Production
Operating Costs and Budgeting

Learning Outcomes
To be able explain basic operational
concept in business plan
To be able identify main components of
operational plan
To be able carry out and explain the
importance of operational plan in business
plan
To be able develop the complete
operational plan

Introduction
Base on sales forecast
(qty,RM,daily,weekly etc)
Demand types (periodically, seasoning,
Period to deliver (monthly, weekly etc)
Target customer (business or customer
segment)

Operation and Other Functions

10 (Delivery)

Market/Customer
Market/Customer

Marketing
Marketing

1 (Sales Forecast)

2 (Production Order)
9 (Costing & Finish Products)

Machines/
Equipments
Suppliers

8 (Equipment
purchase)

Production
Management/
Operation

7
(Manpower)

Labor
Labor
Market
Market

Organization

6
(Employee Selection)

5 (Raw Materials Delivery)

Raw Materials
Supplier
4
(Raw Materials Order)

3 (Source of Financing)

9
(Costing & Finish Products)

Financial
Financial
Management
Management

Operational Concept
Environmental Forces

INPUT
Manpower
Raw Material

Output
Transformation
Process

Machine/equipment

Services
Mixes

Technology
Capital

Product

Feedback

Transformation Process Raw Materials

to Finish Product/Service
Input/Materials Distribution
C
O
N
T
R
O
L

Management Technology
Application
Capital/
Machines/
Finance
Manpower
Usage

Equipment
Usage
Processing
Method

C
Raw
Materials

O
N
T
R

Renovation/Modification Process O
Finish Products/Services
L

Objectives

To design proper operating system

To meet quality product
To minimize cost and increase profit
Production activity will be efficient and
consistent

Consideration in Select
Operational location/premises

Customer Distance
Supply in Raw Materials
Infrastructure facilities
Manpower Supplies
Purchase cost, Site or Premises
Rental consideration

Buyout or Rental???
Rental (Term agreement ex. 2+1)
Lease (long term)
Incubator concept (MDec, SME Bank,
SIRIM, MARA)

Layout

Organize operational space (machines,

equipment, raw materials allocation, working
space, work in progress, finished products)
Layout planning:1.

assemble machines/ equipment JKKP or local

authority requirement.
2. Operational process must be sequence, smooth
movement, avoid waste time and defect.

Layout planning:- (cont)

3.
4.
5.
6.
7.
8.
9.

Finished products are classified.

Customer friendly and convenience.
Convenience space and reduce movement time.
Easy machine maintenance & space cleaning.
Easy supervisory job.
Use optimum space utilise.
Take consideration on future need.

Capacity Planning
Capacity (Units, projects size, booking)
Operation Capacity Ratio (NKO)
x 100 (%)
Capacity Used
Total Availability Capacity

NKO indicated:-

production operation ability

under utilise/increase capacity
capital budgeting (purchase machine or
increase manpower)

Machine/Equipment
Requirement Planning
Depend business operation types.
Supplier and machines
No of machines meet current and medium term
demand
Technology lifecycle
Meet saleable product
Technology knowledge
Maintenance, spare parts and after sales services
Machines lifecycle and brand

Manpower Requirement
Planning
Divide to Direct and Indirect labor
Decide direct labor (permanent, contract,
part time)

Period of Contract/part time labor

Labor salary/reward (expertise, experience,
current market rate)

Raw Materials
Requirement Planning

Materials need (Production, retail (stock), services)

60%-80% production cost
Direct and Indirect Materials
Purchase decision (Quantity,Quality,Time,Supplies,Price)
Four Planning steps
1. Identify and list down the raw materials required
2. Prepare the bill of materials
3. Calculate the quantity of raw material required
4. Identify supplier and purchase method

Process/System Planning

Process:

System:

Production system benefit:-

Three Production Types:-

Work flow are need to be implemented (transform i/p to o/p).

Right production process, tested and proven to meet specification

and quality standard.

1.
2.
3.

Smooth production process, control cost and quality, improve

productivity.
Booking
Cluster
Flow

Process Planning
Symbol

Type of
Activity

Description

Operation

Activities that modify, transform or give value to

the input.

Transportation

Transport activity occurs when materials are

transported form one point to another.

Inspection

Activity that measures standard of the in-process

material, finished products or services.

Delay

The symbol is used when in-process material is

restrained in a location waiting for next activity.

Storage

The symbol is used when the in-process materials

or finished products ate storage area.

Production Schedule
Meet quantity, specifying and time
plan according to sales forecast.
Period next 6 months.
Advantages: Finish product inventory as a buffer.
Avoid wastage and lost customer
demand

Quality In Production
Quality management: Customer satisfaction,
loyalty, quality standard.
Focus on cost of quality & prevention:
product design and specification, continuous
improvement (kaizen).
Quality practices (QCC,SQC, SPC,TPM,JIT, 5S).

Quality as a business strategy (competitive

advantages)
TQM,ISO recognition, Benchmarking, Balance
Scoreboard, EVA

Operational Cost

Operational costs
= Direct Material Cost + Direct Labor Cost + Overhead
Cost
Direct material costs the money spent on materials
that are directly used to produce the products or
services.
Direct labor costs the money paid as wages, salaries
and benefits to the workers involved directly in the
production of the products or services.
Overhead costs include rent, insurance, wages of
indirect labor, maintenance and depreciation.

Jadual 7.2: Cth Pengiraan Kos Pengeluaram

(Ref P124)
Pengeluaran Produk X

Bulan Januari
(30 hari)

Kapasiti Pengeluaran setahun 500,000

unit

Kuantiti : 35,000
unit

RM

1.

Bahan mentah digunakan

20,000 kg

Hg / kg = RM
0.60

12,000

2.

Upah Pekerja

RM30 / hari

8 pekerja

7,200

3.

Bahan api pengeluaran

600

Jumlah Kos Langsung

19,800

3.

Penyelenggaraan setahun

RM 3,000

4.

Susut nilai Aset Tetap setahun

RM 8,125

Lain overhed setahun

RM 1,200

Cost Per Unit

Total Operational Cost (RM)

Total Number of Output (Unit)

(By refer page 125)

Kos Pengeluaran seunit X untuk bulan Januari :
Kos pengeluaran Langsung
RM
Bahan Mentah
12,000
Upah pekerja pengeluaran
7,200
Bahan Api
600
Jumlah Kos Langsung pengeluaran
19,800
*Kos Pengeluaran tidak langsung
Susut nilai
569
Kos penyelenggaraan
250
Lain overhed kilang
100
Jumlah Kos Langsung pengeluaran
919
Jumlah Kos Pengeluaran
20,719
Kuantiti Pengeluaran
35,000 unit
Oleh itu, kos pengeluaran seunit
=
RM 20,719 / 35,000 unit
=
RM 0.5948 atau 60 sen seunit.

Jadual 7.3: Latihan Pengiraan Kos Pengeluaram

Pengeluaran Produk X

Bulan Januari
(25 hari)

Kapasiti Pengeluaran setahun 650,000

unit

Kuantiti : 45,000
unit

RM

1.

Bahan mentah digunakan

30,000 kg

Hg / kg = RM
0.70

2.

Upah Pekerja

RM 30 / hari

8 pekerja

3.

Bahan api pengeluaran

600

Jumlah Kos Langsung

3.

Penyelenggaraan setahun

RM 3,600

4.

Susut nilai Aset Tetap setahun

RM 9,000

Lain overhed setahun

RM 1,200

Cost Per Unit

Kos Pengeluaran seunit X untuk bulan Januari :
Kos pengeluaran Langsung
RM
Bahan Mentah
21,000
Upah pekerja pengeluaran
6,000
Bahan Api
600
Jumlah Kos Langsung pengeluaran
27,600
*Kos Pengeluaran tidak langsung
Susut nilai
Kos penyelenggaraan
Lain overhed kilang
Jumlah Kos Langsung pengeluaran
Jumlah Kos Pengeluaran
Kuantiti Pengeluaran
Oleh itu, kos pengeluaran seunit

623
300
100
1023
28,623
=
=

45,000 unit
RM 28,623 / 45,000 unit
RM 0.6361 atau 64 sen seunit.

Operations Budget
Fixed Asset cost: cost of building or
buying the operations space (factory, shop
etc) and any relevant renovation work as
well as the purchase of machines and
equipment.
Monthly Expenses : cover material cost,
remuneration and all the factory overhead.
Other Expenses : deposit on factory
rental, deposit utilities, insurance etc.

Jadual 7.1 : Contoh Anggaran Bajet Pengeluaran (P122)

JENIS PERBELANJAAN
A

ANGGARAN KOS (RM)

Belanja Modal
Ubahsuai Kilang

20,000

Mesin dan Peralatan Pengeluaran

35,000

Perabot dan Kelangkapan

5,000

Lain peralatan pengeluaran

5,000

Jumlah belanja modal

65,000

Modal Kerja ( 3 bulan )

Belian bahan Mentah

4,000

Gaji / upah pekerja Pengeluaran

6,000

Sewa kilang

6,000

Elektrik / bahan api kilang

1,000

Penyelenggaraan bangunan / mesin

500

Jumlah modal kerja pengeluaran

17,500

Jumlah Bajet Pengeluaran

82,500