OPERATION PLAN – END OF WEEK 11

7.1 Operations process (process flow chart)

Start

Order materials to sell from seller

Pick up the order from the seller

Receive orders from customers

 Making packages of Vietnam rolls in the form of
plastics container according to the order make by
customers

Hand over the finished product package to

customers who made a reservation

Receive payment from customers

Finish

7.2 Capacity planning

- A business plan must include capacity planning since it guarantees that the organisation has the
resources necessary to meet demand in the future. Here are some illustrations of capacity planning in
various corporate contexts:

 Manufacturing Industry
 - Over the following five years, the manufacturing of Vietnam rolls intends to boost its capacity
by twenty percent.
- Capacity planning steps
- Make plans to expand current facilities or purchase new equipment.
- Employ and train more workers to manage higher output.
- Use new technology to increase productivity and decrease idle time.

 Retail Industry
- Within the next two years, a retail chain intends to add five new locations.
- Capacity planning steps
- Carry out market research to identify the ideal sites for new retail establishments.
- Calculate inventory levels to make sure new stores have enough merchandise.
- Appoint and train new employees for every store.

 IT Services
- Boost product promotion interaction on social media sites like Instagram and TikTok.
- Capacity planning steps
- Develop promotion skills by studying from more knowledgeable individuals.
- Watch promotional adverts on Instagram and TikTok for every video that go viral.
- Develop your editing skills and focus on key content when creating videos to
advertise products.

7.3 Material requirement planning

- In order to satisfy production schedules for these well-liked delicacies, Material Requirement
Planning (MRP) for Vietnamese roll manufacture entails making sure that all necessary
ingredients are accessible. This is a thorough example that shows how MRP might be used in
this situation:

Vietnam Rolls Production

Scenario:

A company that makes Gỏi cuốn (Vietnamese bread) needs the following ingredients for each
roll: rice paper, lettuce, mint, shrimp, crab sticks, and dipping sauce. One roll's bill of materials
(BOM) is as follows:
 1 piece of rice paper
 1 shrimp
 1 crab stick
 10 grams of vermicelli noodles
 1 leaf of lettuce
 10 ml of dipping sauce

MRP Process:

1. Forecast Demand: For the upcoming week, the business anticipates a 500
Vietnamese roll demand.
2. Calculate Gross Requirements:
 Rice paper: 500 rolls * 1 piece = 500 pieces
 Shrimp: 500 rolls * 1 shrimp = 1,000 shrimp
 Crab sticks: 500 sticks * 5 grams = 2,500grams
 Vermicelli noodles: 500 rolls * 10 grams = 5,000 grams (10 kg)
 Lettuce: 500 rolls * 1 leaf = 500 leaves
 Dipping sauce: 500 rolls * 10 ml = 5,000 ml (10 liters)
3. Check Inventory:
 Current inventory: rice paper = 50 pieces, shrimp = 200 shrimp, crab
stick= 150 sticks, vermicelli noodles = 3 kg, lettuce = 100 leaves,
dipping sauce = 2 liters
4. Calculate Net Requirements:
 Net requirement for rice paper: 500 - 50 = 450 pieces
 Net requirement for shrimp: 500 - 200 = 300 shrimp
 Net requirement for crab sticks: 500- 150 = 350 sticks
 Net requirement for vermicelli noodles: 10 kg - 3 kg = 7 kg
 Net requirement for lettuce: 500 – 100 = 400 leaves
 Net requirement for dipping sauce: 10 liters - 2 liters = 8 liters
5. Plan Orders:
 Order 450 pieces of rice paper
 Order 300 shrimp
 Order 350 crab sticks
  Order 7 kg of vermicelli noodles
 Order 400 leaves of lettuce
 Order 8 liters of dipping sauce

Summary

The organization guarantees that all materials are accessible to make the needed quantity of
Vietnamese rolls without interruption by adhering to the MRP procedure. This entails estimating
demand, figuring out gross requirements, assessing the stock on hand, figuring out net requirements,
and scheduling orders appropriately. This methodical technique keeps production running smoothly and
keeps ingredients from running out or being overstocked.

7.4 Manpower planning (Direct workers only)

- A business plan must include labour planning, sometimes referred to as manpower planning,
particularly for direct employees who handle the day-to-day activities of the company. The
following are some instances of how various business kinds might benefit from careful
workforce planning:
Manufacturing company
1. Production Line Worker
Current Workforce: 30 workers
Projected Workforce Needs:
Year 1: 35 workers
Year 2: 40 workers
Year 3: 45 workers
2. Shift Schedules
o Day Shift: 15 workers
o Night Shift: 10 workers
o Overtime Requirements: 10% of workforce during peak seasons
3. Training and Development
 Initial Training: 2 weeks for new hires
 Ongoing Training: Quarterly training sessions for efficiency and safety
4. Turnover Rate
 Current Turnover Rate: 10% annually
 Replacement Hiring: 5 workers per quarter
 5. Productivity Goals
 Daily Production Target: 500 units
 Worker Efficiency: 10 units per worker per day

Retail Store

1. Sales Associate
 Current Workforce: 5 sales associates
 Projected Workforce Needs:
Year 1: 10 sales associates
Year 2: 15 sales associates
Year 3: 20 sales associates
2. Shift Schedules
Weekday Shifts: 8 workers (3 shifts)
Weekend Shifts: 10 workers (4 shifts)
3. Training and Development
Initial Training: 1 week for new hires
Customer Service Training: Monthly refresher courses
4. Turnover Rate
Current Turnover Rate: 10% annually
Replacement Hiring: 3 workers per quarter
5. Sales Goals
Daily Sales Target: RM 2500
Sales per Associate: RM 150 per day

Cafe

1. Kitchen Staff
Current Workforce: 5 cooks
Projected Workforce Needs:
 Year 1: 10 cooks
 Year 2: 12 cooks
 Year 3: 14 cooks
2. Shift Schedules
 Day Shift: 3 cooks
 Night Shift: 2 cooks
 3. Training and Development
 Initial Training: 1 week for new hires
 Customer Service Training: Monthly refresher courses
4. Turnover Rate
 Current Turnover Rate: 10% annually
 Replacement Hiring: 3 workers per quarter
5. Productivity Goals
 Daily Preparation Target: 200 rolls
 Efficiency: 50 rolls per day

This illustrates how workforce planning can be adapted to different businesses types, focusing on
specific needs and goals related to direct employees. This planning ensures that the business can meet
its operational targets efficiently and sustainably.

7.5 Machinery & equipment planning

Planning the machinery and equipment needed to produce Vietnamese rolls, or spring rolls, entails
making sure that the equipment is readily available, kept in good working order, and utilized effectively
to fulfils production goals. This is a thorough blueprint for a production plant or commercial kitchen that
makes Vietnamese rolls.

Vietnamese Roll Production Facility

Monthly Plan Overview

Objective: Produce 4,000 Vietnamese rolls over one month.

1. Machinery and Equipment Inventory

 Commercial Dough Mixers: 1 unit
 Rice Paper Soaking Stations: 3 units
 Vegetable Choppers: 2 units
 Steamers: 3 units
 Deep Fryers: 3 units
 Cooling Racks: 4 units
 Packaging Machines: 1 unit
 Refrigerators: 3 units
 Freezers: 2 units
2. Maintenance Schedule
 Commercial Dough Mixers: Every day cleaning, every Monday thorough maintenance.
 Rice Paper Soaking Stations: Weekly inspection, sanitization, and cleaning after every
use.
 Vegetable Choppers: Weekly motor inspections, daily blade cleaning and sharpening.
 Steamers: Every Wednesday, descale and clean.
 Deep Fryer: Change the oil and filter every day; deep clean every Friday.
 Cooling racks: every day, wash and sanitize.
 Packaging machines should be inspected, cleaned, and maintained once a week.
 Refrigerators: deep clean and defrost once a month, and check the temperature every
day.
 Freezers: monthly defrosting, comprehensive cleaning, and temperature checks.
3. Operational Planning

Production Schedule:

 Commercial Dough Mixers: These machines run for six hours every day to prepare dough.
 Rice Paper Soaking Stations: Run nonstop for eight hours a day during production hours.
 Vegetable Choppers: When preparing ingredients, they run for four hours every day.
 Steamers: They run for six hours every day to cook.
 Deep fryers: They run for eight hours every day to fry buns.
 Cooling racks: Always use them when producing.
 Packaging machines: Work for four hours a day to package final goods.
 Freezers and refrigerators: Always under observation, always running.
4. New Equipment Acquisition
 Planned Purchased:
To enhance the frying capacity, add one more deep fryer.
Two mechanized vegetable cutters to increase preparation productivity.
 Installation and Training:
Install the deep fryer during the second week and provide staff training right away.
Installing and training vegetable cutters takes place during the third week.
5. Production workflow
1. Ingredient Preparation:
  Vegetable chopper: Cut up veggies (carrots, cabbage, etc.) for the filling.
 Mixing: If not using rice paper, make the dough for the wraps using commercial dough
mixers.
2. Assembly:
 Rice paper soaking: Use soaking stations to soften rice papers by soaking them.
 Filling: Rolls are assembled by packing prepared components into rice paper.
3. Packaging
 Packaging machines: Rolls should be packaged cold for distribution and storage.
4. Storage:
 Refrigerators: If necessary, store constructed rolls and prepared components.
 Packaged rolls should be kept in freezers for long-term storage.

6. Production Goals

 Daily Production Target: 200 rolls per day.

 Efficiency Goals:
Vegetable Choppers: 10 kg of vegetables per hour.
Rolling the Vietnamese rolls: 200 per hour

Conclusion

The meticulous machinery and equipment planning required for a Vietnamese roll production facility is
demonstrated by this example. The plant may effectively fulfill production targets and uphold strict
quality and hygiene requirements by carefully planning for new equipment acquisitions, scheduling
maintenance, and controlling operating hours.

7.6 Operations layout plan

Objective

- To design a productive process that will enable the monthly production of 10,000 Vietnamese
rolls.

Layout Plan

1. Ingredient Preparation Area

 Vegetable chopper: Three vegetable cutters are placed in a row for convenience.
 Work table: Sizable tables used for component assembly and mixing.
2. Rice Paper Soaking Area
 Soaking stations: Five units arranged with plenty of room to made over along a single wall.
3. Assembly Area
 Assembly Tables: To facilitate effective roll assembly, long tables are placed in a U form.
 Storage Bins: Located close to assembly tables to facilitate simple access to ready-to-use
ingredients.
4. Cooking Area
 Four steamers are situated in a corner with good ventilation.
 Deep fryers: six units placed in a line, with enough room between them for safety.
 Cooling Racks: positioned next to the steamers and fryers to facilitate quick transfers.
5. Packaging Area
 Three packaging machines are situated close to the cooling racks.
 Work tables: Next to packing equipment for extra packaging duties.
6. Storage Area
 Refrigerators: Six refrigerators are conveniently located next to the area where ingredients
are prepared.
 Freezers: Four freezers are located close to the packaging area to store completed goods.
7. Flow of Operations
o The areas for preparing the ingredients come first, followed by the areas for soaking
the rice paper and assembling the group.
o Proceed to the Cooking Area from the Assembly Area and then to the Cooling Racks.
o Proceed to the Packaging Area and then the Storage Area once it has cooled.
o Checks for quality control take place prior to final packaging.
7.7 Operation overheads
- The term "operation overheads" refers to a range of costs associated with the production
process of Vietnamese rolls that are not directly related to the labour or raw materials
utilized in their creation. Here are some illustrations of operational overheads for a roll
production factory in Vietnam:

Operation Overhead for Making Vietnamese Rolls

1. Utilities
Electricity: Used to run HVAC systems, lights, and kitchen appliances.
 Water: Used for cooking, cleaning, and soaking rice paper.
Gas: Used as fuel in deep fryers, ovens, and stoves.
2. Depreciation
Equipment Depreciation: Wear and tear on appliances such as mixers, fryers, and
refrigerators is known as equipment depreciation.
Depreciation of Furniture: This refers to the wear and tear on the facility's tables,
chairs, and other furniture.
3. Maintenance and Repairs
Routine Maintenance: The routine upkeep of kitchen appliances.
Repairs: The price of mending damaged or inoperable equipment.

4. Marketing and Advertising

Promotions: Costs for running promotions and discounts.
Advertising: Expenses for print, online, and social media advertising.
5. Safety and Compliance
 First aid kits, gloves, aprons, and fire extinguishers are examples of safety equipment.
 Costs related to adhering to health and safety laws are known as compliance costs.
7.8 Operations budget
- For a Vietnamese roll production facility, estimating income and outlining all anticipated
expenses both fixed and variable are essential components of an operational budget.

Monthly Operational Budget for Vietnamese Roll Production Facility

Revenue

 Estimated Selling Price per Roll: RM 1.50

 Total Rolls Produced: 4,000
 Total Revenue: RM 6,000

Costs

1. Direct costs
Raw Materials: RM 0.40 per roll
Total: RM 0.40 * 50,000 = RM 20,000

Direct Labor: RM 0.30 per roll

Total: RM 0.30 * 50,000 = RM 15,000

2. Operation overheads
Utilities
 Electricity: RM 2,000
 Water: RM 400
 Gas: RM 800

Rent and Property Costs

 Kitchen Space Rent: RM 8,000
 Property Taxes: RM 800
 Building Maintenance and Repairs: RM 900

Depreciation
 Equipment Depreciation: RM 900
 Furniture Depreciation: RM 200

Insurance
 Property Insurance: RM 1,200
 Liability Insurance: RM 800
 Workers' Compensation Insurance: RM 600

Administrative Costs
 Salaries for Administrative Staff: RM 8,000
 Office Supplies: RM 400
 Software Licenses: RM 800
7.9 Online operation strategy
- Businesses employ online operation strategies as plans and techniques to function
efficiently in the digital sphere. Depending on the industry, target market, and corporate
objectives, these tactics can differ significantly.
1. Digital Marketing
Information marketing: Producing interesting and useful information (blogs, videos,
infographics) to draw in and keep users interested.
 Social Media Marketing: Marketing goods and services by interacting with consumers
on sites like Facebook, Instagram, and LinkedIn.
Email marketing: creating and maintaining an email list to distribute updates and
campaigns that are specifically targeted.
2. Customer Relationship Management (CRM)
 Personalization: Using data to personalize communication and offers to specific
customers.
 Customer Support: Providing numerous channels for support (live chat, email, social
media) and using CRM software to manage interactions.
3. Supply Chain Management
 Inventory management: To effectively control stock levels, real-time inventory tracking
systems should be implemented.
 Fulfillment Solutions: Coordinating shipment and return policies with outside logistical
companies.
4. Global Expansion
 Localization: Making necessary cultural and linguistic adjustments to products,
marketing collateral, and customer support.
 International Shipping: Organizing logistics to effectively manage orders from overseas
5. Sustainability Practices
 Eco-friendly Packaging: Using eco-friendly packing materials to attract customers that
care about the environment.
 Carbon Offsetting: Putting policies in place to lessen the carbon impact of internet
operations.