[ENTRPRENEURSHIP]

4.0 INDTRODUCTION

Operation management is process of produce output through the transformation process. The operation process comprises three main components. There are business input, transformation system and output. Business input is refers to all resources required to produce a particular output. Examples of input are raw materials, machines and equipment. The transformation system refers to the activities involved in transforming input into output. Among others, the processing system involves planning of raw materials, designs of operational process, planning of floor layout and distributing. Output refers to the end product created as the result of the transformation process. Business output can be categorized into either products or services. As input is transformed into output, it acquires added value, whereby the value of the output is higher than the total input value.Our purpose focus in operational plan is to ensure our Missy Murukku that we produce is high quality to fulfil our customer needs and wants. It also to recognize and list down all the materials needed to effort by making some arrangement for the quantity and quality of material needed and recognized supplier.

4.1 OPERATION PROCESSOur business operation starts from 9.00am 6.00pm. We picked this time as it is the appropriate time for any company or business to start and close their business daily. They are our operation time. Tuesday Sunday: 9.00am 1.00pm : 2.00pm 6.00pmMonday: Holiday

4.2 PROCESS PLANING/ OPERATION FLOE CHART (ORGINAL MURUKKU)4.2.1 Representation of the operation flowMixed with rice powder, planta, coconut milk and some salt

Peel into murukku shape

The murukku is fried in a medium heated oil

After the fried, rest the murukku from 5 to 10 minutes

The murukku must be checked first

The small packaging has been used for packing the murukku around 300g

The murukku is distributing

(SPICY MURUKKU)4.2.2. Representation of the operation flowMixed with rice power, planta, coconut milk, chili powder and some salt

Peel into murukku shape

The murukku is fried in a medium heated oil

After the fried, rest the murukku from 5 to 10 minutes

The murukku must be checked first

The small packaging has been used for packing the murukku around 300g

The murukku is distributing

(CHOCOLATE MURUKKU)4.2.3 Representation of the operation flowMixed with rice powder, planta, coconut and some salt

Peel into murukku shape

The murukku is fried in a medium heated oil

After the fried, rest the murukku from 5 to 10 minutes

Dip into chocolate

The murukku is drying

The murukku must be checked first

The small packaging has been used for packing the murukku around 300g

The murukku is distributing

4.2.4 Activity chart for Missy MurukkuMeasure and mix the rice powder, coconut milk, planta and some salt

ORGINAL (MISSY MURUKKU) Checked the mixing

Put mixing into murukku making machine and peel into shape

Fried the murukku

After the fried, rest the murukku 5 to 10 minutes

Checked the quality of packing

Packs murukku into packing

Packages are put into boxes

Keep box in store

Distributing

4.2.5 Activity chart for Missy MurukkuMeasure and mix rice powder, planta, chilli powder and some salt

SPICY (MISSY MURUKKU) Put mixing into murukku making machine and peel into shapeChecked the mixing

Fried the murukku

After the fried, rest the murukku 5 to 10 minutes

Checked the quality of packing

Packs murukku into packages

Packages are put into box

Keep box in store

Distributing

4.2.6 Activity chart for Missy MurukkuMeasure and mix the rice powder, planta, coconut milk, and some salt

(CHOCOLATE MURUKKU) Checked the mixing

Put mixing into murukku making machine and peel into shape

Fried the murukku

After the fried, rest the murukku 5 to 10 minits

Dip into chocolate

Drying the murukku

Checked the quality of packing

Packs murukku into packages

Packages are put into boxes

Keep in store room

Distributing

4.2.6 Flow chart conventional symbol SYMBOLACTIVITYDESCRIPTION

OperationMaterial are being processed of planning

InspectionInspect the quality of murukku and packing.

StoreKeep in store

DistributingDistributing the murukku

4.3 CAPACITY PLANINGThe capacity of any production operation refers to the amount of output that can be produced within a specified time. Capacity planning is a method to calculate machinery requirement and production demand based on sales murukku packets.The daily produce rate is:NO ITEMSAVEREGE SALES PACKETS PER MONTHPRICE PER PACKETSNUMBER OF OUTPUT PER MONTH

1.Missy Murukku (Original)30packetsRM 3.2030/3.20= 9.38

2.Missy Murukku (Spicy)25packetsRM 3.5025/3.50= 7.14

3.Missy Murukku (Chocolate)35packetsRM 3.8035/3.80= 9.21

If the number of working day per month 24 days, then the amount of output to be produced per day is:NOITEMSNUMBER OF PACKETS OUTPUT PER DAY

1.Missy Murukku (Original)9.38/24= 0.391per day

2.Missy Murukku (Spicy)7.14/24= 0.298 day

3.Missy Murukku (Chocolate)9.21 /24= 0.384per day

If one works can produce 25 packets in 1 hour, then works standard produce time per packets is:NOITEMSSTANDARD PRODUCE TIME PER PACKETS

1. Missy Murukku (Original) 1hour/25= 0.04hour

2.Missy Murukku (Spicy)1hour/25= 0.04hour

3.Missy Muruuku (Chocolate)1hour/25= 0.04hour

Therefor the number of works required is:NOITEMSNUMBER OF WORKS REQUIRED

1.Missy Murukku (Original)(0.391/9hour) x 0.04hour= 1.74workers

2.Missy Murukku (Spicy)(0.298/9hour) x 0.04hour= 1.32workers

3.Missy Murukku(Chocolate)(0.384/9hour) x 0.04hour= 1.71workers

TOTAL WORKS: 1.74 + 1.32 + 1.71 = 4.77workers

Finally, the business needs 4 workers.

4.4 MATERIAL REQUIREMENT4.4.1 Below is table of material requirementNOMATERIALQUANTITYPRICE (RM)TOTAL PRICE

1.Rice Powder20kgRM 3.00 (1kg)RM 60.00

2.Bengal Gram Flour20kgRM 2.80 (1kg)RM 56.00

3.Chickpea Flour20kgRM 2.50 (1kg)RM 50.00

4.Wheat Flour20kgRM 2.80 (1kg)RM 56.00

5.Ajwan Sesame Seed10gRM 1.50 (1g) RM 15.00

6. Cumin Seed10gRM 1.50 (1g)RM 15.00

7.Chili Powder5packetRM 2.70 (1packet)RM 13.50

8.Salt3packetRM 1.00 (1packet)RM 3.00

9.Planta10kgRM 4.80 (1kg)RM 48.00

10.Chocolate5packetRM 5.50 (1packet)RM 27.50

11.Coconut Milk3litterRM 2.10 (1 litter)RM 6.30

TOTALRM 350.30

4.4.2 Below is table of material requirement for monthlyMATERIALQUANTITYSAFETY STOCKTOTAL MATERIAL REQUIREMENTPRICETOTALPRICE

Rice Power50kg20kg70kgRM 3.00 (1kg)RM 210.00

Bengal Gram Flour50kg20kg70kgRM 2.80 (1kg)RM 196.00

Chickpea Flour50kg20kg70kgRM 2.50 (1kg)RM 175.00

Wheat Flour50kg20kg70kgRM 2.80 (1kg)RM 196.00

Ajwan Sesame Seed30g10g40gRM 1.50 (1g)RM 60.00

Cumin Seed30g10g40gRM 1.50 (1g)RM 60.00

Chili Powder7packet3packet10packetRM 2.70 (1pac)RM 27.00

Salt6packet2packet8packetRM 1.00 (1pac)RM 8.00

Planta40kg20kg60kgRM 4.80 (1kg)RM 288.00

Chocolate8packet2packet10packetRM 5.50 (1pac)RM 55.00

Coconut Milk6litter3litter9litterRM 2.10 (1litter)RM 18.90

TOTALRM1293.90

4.5 LIST OF MACHINES AND EQUIPMENT4.5.1 List of machine and equipmentNOITEMPRICE / UNIT (RM)QUANTITYTOTAL PRICE

EQUIRMENT

1.Flour KneaderRM 848.002RM 1696.00

2.Frying MachineRM 1000.003RM 3000.00

3.Murukku Making MachineRM 900.002RM 1800.00

4.Packing Machine RM550.001RM 550.00

5.Air ConditionRM 1200.002RM 2400.00

6.Other RM 700.00

TOTALRM 10146.00

4.5.2 List of FurnitureNOITEMQUANTITYPRICE / UNIT (RM)TOTAL PRICE

FURNITURE

1.Desk2RM 47.00RM 94.00

2.Rack5RM 135.00RM 675.00

3.Chair6RM 23.00RM 138.00

4.OthersRM 100

TOTALRM 1007.00

4.6 LAYOUT PLAN OF OPERATION AREA / FACTORY4.6.1 Layout Plan on Operation AreaEMERGENCY DOORPEEL INTO SHAPEDIP INTO CHOCOLATE

MAIN DOORDRYINGFRYINGHALLOFFICE ROOMBATHROOMKITCHENPACKING AREAFLOUR MIXING AREA

STORE ROOM

30 FEET

30 FEET

DOOR

CHAIRS

DESK

TELEVISYEN

SOFA

4.6.2 Location Plan

No 219, Jalan Tun Sambathan, Brickflied, Wilayah Persekutuan, 50470 Kuala Lumpur

4.7 OPERATION OVERHEAD4.7.1 Below is the operation overheadNOPOSITIONNO. OF EMPLOYEE (RM)MONTHLY SALARYEPF (11%)SOCSO (5%)TOTAL

1.Store Keeper1 RM 900RM 99.00 RM 45.00RM1044.00

2.Van Driver

1RM 900RM99.00RM 45.00RM1044.00

3.

Workers

44 X RM 900= RM 3600RM 99.00RM 45.00RM3744.00

TOTAL9RM 5200RM297RM135RM5832.00

4.7.2 Below is the operation overheadNO

ITEMAMOUNT PER MONTH (RM)

1.

Utility (electricity and water)RM 500.00

2.

Maintenance of MachineryRM 150.00

3.

Indirect MaterialRM 350.00

TOTAL

RM 1000.00

4.8 OPERATION BUDGET4.8.1 Operation BudgetITEM

FIXED ASSETS(RM)MONTHLYEXPENSES(RM)OTHEREXPENSES(RM)TOTAL(RM)

Fixed Assets

Machine and RequirementRM 10146.00RM 10146.00

Furniture

RM 1007.00RM 1007.00

Monthly Expanses

Raw Materials

RM 1293.00RM 1293.00

Salary, EPF,SOSCORM5832.00RM 5832.00

Other Expenses

Deposit for utility RM 1500.00RM 1500.00

Factory RenovationRM 2000.00RM 2000.00

TOTALRM 11153.00RM 7125.00RM 3500.00RM 21778.00

4.9 IMPLEMENTATION SCHEDULE4.9 Implementation scheduleACTIVITIESDEADLINEDURATIONS

Incorporation of business JANUARY FEBRUARY2 months

Application for license and premiseMARCH - APRIL2 months

Searching for business premiseMAY1 month

Renovation of premiseJUNE AUGUST3 months

Procurement of machine and raw material SEPTEMBER - OCTOBOR2 months

Recruitment of laboursNOVEMBER1 month

Installation of machines DICEMBER1 months

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