CHAPTER 4

PRODUCTION/OPERATIONAL PLANNING

4.1 DESCRIPTION OF COMPANY’S PRODUCTION/OPERATION

Our group intends to run a business selling fruit ice cream products. We also have a target
audience of 6 and 65 years old. This fruit ice cream is 100% of the local fruit mix. In
addition, we also make sure that the fruit ice cream product meets the customer's taste and
nutritional value.

To further expand this business, we have conducted business operations in Section 7, Shah
Alam, Selangor and we also have branches around the Klang Valley. The business is open
Monday to Saturday except Sundays from 9 am to 5 pm.

However, the fruit ice cream we make is not only sold in plastic and sticks but we diversify
ice cream packing by providing cups and cones for easy access and enjoyment of all ages.
We also offer a variety of fruit mixes so that our customers have the option to shop at our
stores or stockists.

4.2 MANUFACTURING/PRODUCTION PROCESS PLANNING

The production process is mainly related to converting various inputs into output through the
transformation process. Fruit ice cream is a re-branded ice cream that can be enjoyed by all
ages. The fruit ice cream products we run provide customer satisfaction and the quality of our
service is friendly. In addition, the prices we offer are affordable and affordable for every
customer. Furthermore, the process of making ice cream is very easy to process and design.
The main objective of our business is ice cream fruit to support the recommendations of the
government to encourage people to enjoy the local fruit. Even fruit ice cream is ideal for hot
weather and easy to carry anywhere.
4.3 MANUFACTURING / PRODUCTION PROCESS WORK FLOW (FLOW
CHART)

Fresh Fruit

Process Fruit

Package and Vacuum

Seal Processed Fruit

Ingredients for Ice

Freeze Fruit Ingredients
Creamfor Ice C

Batch Freezer

Package into Containers

4.4 PHYSICAL PLANT- SITE PLAN AND LAYOUT

Site Plant
 Ice 3
Cream Compartment
Batch Sink
12X 24 Freezer Employee Washroom
Walk-in
Freezer
Table Vacuum Sealer and
Weigh Scale Table

40' X 40' Building Cherry Pitter

Table
Cherry Sorter and Conveyer
Cooler

Cooler

Insulated Door

Layout
4.4 PROXIMITY TO SUPPLIERS AND ACCESS TO TRANSPORTATION

Distance to suppliers is a combination of companies that provide businesses with goods and

services. According to Fruity Enterprise, proximity to suppliers is the supplier that supplies

the product to our store. For our shop here there will be more than one supplier providing

products such as ice cream, fresh fruit, ice cream equipment and more.

Fruity Enterprise business is a shop that provides fruit ice cream services according to its

customers' preferences and business categories. The store prefers running an ice cream

business different from other ice cream businesses for its customers. In addition, the fruit ice

cream sold in our store is quite cheap and can be purchased directly at our store.

Furthermore, access to transportation is one of the main requirements for all types of

businesses and for themselves. Transportation plays a central role in every business. This is

because even having your own transport from business or entrepreneurship does not have to

depend on others either.

Transportation will be provided to employees as needed. Most workers need transportation to

get home. In addition, cars need to be used as transportation to buy some ice cream

merchandise to meet customer demand.

4.5 MACHINERY AND EQUIPMENT

No Equipment Quantity Total Amount

(RM)
1 Freezer 2 RM 5,198
2 Ice cream packaging 2 RM 3,200
machine

3 Juices and Fruit Extractors 2 RM1,000

4.6 MATERIAL PLANNING – RAW MATERIALS

No Materials Quantity Price/ Unit Total Amount

Requirements (RM) (RM)
1 Guava 2Kg RM 3.99 RM 7.98
2 Strawberry 2Kg RM 17.80 RM 35.60
3 Watermelon 4Kg RM 3.18 RM 12.72
4 Mango 3Kg RM 4.99 RM 14.97
5 Dragon fruit 2 Kg RM 5.00 RM 10.00
6 Grapes 2Kg RM 10.00 RM 20.00
7 Banana 1Kg RM 6.00 RM 6.00

8 Apple 2Kg RM 6.00 RM 12.00

9 Jelly powder 1 Package RM 5.65 RM 5.65

10 Basil seeds 1 Package RM 1.98 RM 1.98

11 Bicarbonate soda water 3 Bottles RM 2.80 RM 8.40

12 Yogurt 5 Boxes RM 6.35 RM 31.75

13 Fresh milk 6 Boxes RM 5.57 RM 33.42

14 Condensed milk 2 Cans RM 2.25 RM 4.50

 4.7 NAME AND SUPPLIER OF RAW MATERIALS

No Name and Address of the Name of Company Raw Materials

Suppliers
1 Checkers Hypermarket Checkers Hypermarket Sdn  Fruits
Suppliers Bhd  Yogurt
7, Persiaran Selangor,  Fresh milk
Seksyen 15, 40200 Shah  Condensed
Alam, Selangor milk
 Jelly powder
 Basil seeds
 Bicarbonate
soda water
2 Eco Shop Suppliers Eco-shop Marketing Sdn Bhd  Ice cream
plastics
26, 28 & 30 (Grd & 1st Flr
 Ice cream
Jalan 25/65, Taman Sri
sticks
Muda, Seksyen 25, 40400  Ice cream mold

Shah Alam, Selangor  Knifes

 Water jug

4.8 MANPOWER PLANNING

Position Number Job Remuneration EPF EPF SOCS EPF MONTHL

 of Status / Monthly (11% (13% O + Y TOTAL
Worker ) ) (2%) SOCS (RM)
s (RM) (RM) (RM) O
Employe 4 Permanen RM 1,200 x 4 RM RM RM 96 RM RM 6,048
e t = RM 4,800 528 624 1,248

4.9 GANTT CHART

Activity Week 1 Week 2 Week 3 Week 4

Buy raw
materials
Meeting with
employees
Product arrive
and ready to
display
Update the
number of
products that
sold out and
remain at shop

4.10 PRODUCTION / OPERATIONAL BUDGET

No Sales Budget Yearly Total Sales (RM)

1 Sales of Product and Services RM 240,000
 No Production Yearly Expenses
(RM)
1 Raw materials RM 49,192.80

No Operational Budget Yearly Expenses (RM)

1 General Expenses RM 687.80
2 Utilities RM 12,000
3 Payment of manpower RM 36,612
Total RM 98,492.60

CHAPTER 7

CONTROL AND EVALUATION

7.0 TIMING AND OBJECTIVES/TIMES MANAGEMENT

As previously we have mentioned that, there are four objectives for our company. Firstly,
being a competitive business and compete in a very challenging business. Secondly, to
produce a product that can meet the needs and requirement of users. Thirdly, to provide the
best product to customers of a long time. Lastly, generate income and business profits
towards o more successful and dynamic. All these objectives are needed to be achieved based
on long-term goals which are more than 1 year. Therefore, it takes a few years to achieve and
to evaluate whether the objective is achieved or not.

7.1 DEADLINES AND MILESTONE-GANTT CHART OF THE BUSINESS PLAN

ACTIVITIES

Activity Week 1 Week 2 Week 3 Week 4

Buy raw
materials
Meeting with
employees
Product arrive
and ready to
display
Update the
number of
products that
sold out and
remain at shop

7.2 RELATIONSHIP OF EVENT

The definition of related events is the relationship in which one event that causes makes
another event happens that gives effect. One cause can have several effects. The relationship
event is on customer relationship and marketing meetings. Based on the Fruity Enterprise the
customer relationship and marketing meetings trade show and meeting place for customer
relationships and insights, digital marketing and research, which aims to facilitate direct face-
to-face meetings with Top Decision-makers and Exhibitors through the medium of Top – tier
meetings scheduled prior to the event in a relaxed and friendly atmosphere. The customer
relationship and marketing meetings is a premium meetings event.
 7.3 EMPLOYEE MANAGEMENT-STAFF PERFORMANCE APPRAISAL FORM
AND SYSTEM

Having regular discussions that focus on your career with employees is critical to the success
of the company. If employees fulfil their full potential, customers will be satisfied with the
services they receive and the rate of recoupment will increase. Therefore, to grow a business
and help employees develop professionally, constantly evaluating employee performance is
important.

Businesses should provide all staff records and review them well in advance. The fruit ice
cream business has a written form that addresses each of the job responsibilities that assess
each one on a scale. We also evaluate our employees on teamwork, passion, communication
and other cultural matters.