c8 operation management

7/31/2019 C8 Operation Management

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Yusuf Islam

Bagaimana hidup sekarang (setelah Islam)?

Menukar sesuatu yang bersifat sementara

kepada yang kekal abadi !!!.. Menjadi orang yang dipuja oleh peminat?

Transform yang dipuja kepada yang memuja yaknibilamana saya berkomunikasi dengan Allah swt didalam solat.

Minat dengan muzik?

Transform muzik yang diminati dengan hibur tangisanak-anak dirumah.


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OPERATION MANAGEMENT


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A380 is a symbol of economic strength,

technological innovation, the dedication of

the work force that built it and above all of

a confidence that we can compete andwin in the global market.

Tony Blair, Prime Minister of Britain


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Operation Management

1. The Transformation Process

2. Productivity Index

3. Process Planning4. Material Requirement Planning

5. Layout Plan

6. Selection of Location7. Calculation of Operational Costs


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1. The Transformation Process

INPUT______

LABOUR RAW MATERIALS MACHINES &

EQUIPMENTS

TECHNOLOGY &METHODS

CAPITAL

TRANSFORMATIONPROCESS

OUTPUT___

SERVICES

OR

PRODUCTS

External Environment Forces


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2. Productivity Index

The productivity index (P.I) can be more orless than 1.

P.I > 1 = business running efficiently

P.I < 1 = business running inefficiently

InputofValueTotal

OutputofValueTotalIndextyProductivi


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3. Process Planning

Symbol Type ofActivities

Description

Operation Activities that modify, transform or givevalues to the output

Transportation When materials are transported fromone point to another.

Inspection Measures standard of the in-processmaterial, finished product or services

Delay When in-process material is restrained ina location waiting for next activity

Storage When in-process materials or finishedproducts are stored in the storage area.


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4. Material Requirement

Planning

Step I : Identify and list down the rawmaterials required

Step II : Prepare the bill of materials

Step III: Calculate the quantity of rawmaterial required

Step IV: Identify supplier


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Step I

Identify and list all the raw materialsrequired to manufacture the productor provide the service.

Restaurant:the raw materials requireddepend on the menu for the day

Cleaning service:the materials requiredinclude consumable items like detergents

and scrubbing pads.Retail business:fresh goods, sundry goods,

canned goods.


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Step II

Prepare a bill of

materials required fora unit of product.

Ingredient Amount required for100 cookies

Flour 2 kg

Margarine 0.5 kgSugar 1 kg

Eggs 4 units

Water 0.5 litre


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Therefore, the bill of materials

for a unit of cookies will be:

Ingredient Amount Required/Cookies

Flour 0.02 kg

Margarine 0.005 kg

Sugar 0.01 kgEggs 0.04 of an eggs

(1 egg for 25 cookies)

Water 0.005 litre


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Step III

Estimate the raw material requirementby multiplying the bill of materials withthe total number of cookies to be

produced monthly.

The number of units to be producedmust be based on the sales forecast in

the marketing plan.


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Example:

If the forecast demand per month is 50,000units of cookies.

If the amount of stock at the end of themonth is 5% of the amount.

nthcookies/mo500,52

500,2000,50)000,50%(5000,50


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The materials required for the month:

Ingredient Amount Required/Month

Flour 0.02kg/unit x 52,500 = 1050kg

Margarine 0.005kg/unit x 52,500 = 2025kg

Sugar 0.01kg/unit x 52,500 = 525kg

Eggs 0.04/unit x 52,500 = 2100 units

Water 0.005litre/unit x 52,500 = 262.5 litre


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Step IV

Identify supplier

Look through yellow pages/publications bytrade associations, and seek quotations

from suitable suppliers.

1. Price and discountoffered

2. Quality of materials

3. Sales terms & conditionse.g payment terms

4. After sale service andwarranty

5. Lead time i.e the timebetween orders anddelivery

6. Delivery terms e.g freetransportation

7. Reliability of supplier


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Capacity Planning

The capacity of any productionoperation refers to the amount ofoutput that can be produced within a

specified time.

It is a method to calculate machineryand manpower requirements so that

production demand based on salesforecast can be met.


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Based on monthly sales forecast, thedaily production capacity can bedetermine by dividing it by the number

of working days per month.

This capacity should be divided by thenumber of working hours per day to

give the capacity per hour.


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If sales forecast is 520 units of tudung per

month.

If working days per month is assumed to be

26 days per month, the daily production rateis:

daypertudung''35days

26

910

hourpertudung''5hours7

35


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Purchasing oftudung materials

Storage of tudungmaterials

Cutting of raw materials to size.i.e large, medium and small

Quality inspection

Transport the materials thathave been cut to tailors

table

Sewing bytailors Ironing Packaging Storage before

shipping out


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Activity: Tudung cutting

If one cutter can cut 1 tudung in 1/3 hour, thereciprocal of this is:

= the cutters capacity to cut per hour

= 3 tudung per hourTherefore, the number of cutter required is:

= Production capacity per hour/cutters capacityper hour

= 5/3 = 1.67 (needs 2 cutters)


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Determine the number of workers required

If one tailor can sew 1 tudung in hour,

then his hourly capacity is:

= 1/0.5 hr

= 2 tudung per hour

Therefore, the number of tailors required is:

= 5/2= 2.5 tailors (3 tailors) and also, at least 3

sewing machines + 1 (standby)


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If one tailor requires a working spaceof 8 ft by 10 ft, than the total spacerequired for 4 tailors is:

= 8ft x 10 ft x 4 tailors

= 320 square ft


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5. Layout

Layout refers to the arrangement ofmachinery, equipment, workers and otherfacilities used in the operation.

The arrangement should be made in such away that the production of goods andservices can be done efficiently.

It should take into consideration the

integration of several factors including workstation, tool room, store, office, prayer roomand toilet.


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Types of layout

Layout based on product

The design is done according to the

sequence of activity to produce the

product.


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Packaging AreaArea for soakingthe Soya Bean

Grinding

Sieving Area

Boiler room

Office

Toilet

Prayer room

Pumping Area


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Layout based on process

The design is based on the production

process.

It is suitable for a factory producingseveral products that undergo a similar

process.


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Cutting Machine

Forming Machine

Pray

ing

Are

a

Toil

et

Welding Area

Office

Storefor

RawMaterials

Display ofFinished Goods

Inspection

Painting andSpraying


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Layout based on marketingThe layout is designed to utilise the

available space to display goods.

Example: retailed shop and bookshop. Arrangement of goods are interactive

Goods are easily accessible and convenientfor the customers

It is easy for the entrepreneur to protect goodsfrom theft

The entrepreneur can maximize the return ofinvestment form the space used.


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6. Physical Location

It is crucial to choose the right locationfor the business because a strategiclocation can contribute to the success

of the business.

The choice of location will depend onthe following factors:

Distance from the source of raw materials

Availability of manpower


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Transportation facilities

LPT

Distance from customer

Price of premises

Other factors

Utilities, banks, schools and housing,government policies and safety ofsurrounding.


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7. Operations Costs

It is essential to determine the totaloperational cost in order to calculatethe cost per unit of the goods

produced.

Operations costs include costs ofdirect material, direct labour and

overheads


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Direct materials costs

Money spend on materials that are directly usedto produce the products or services.

Direct labour costs The money paid as wages, salaries and benefits

to the workers involved directly in the productionof the products and services.

Overhead costs Include rents, insurance, wages of indirect

labour, maintenance and depreciation.


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(Units)OutputofNumberTotal

(RM)CostOperationsTotalUnitperCost

OverheadlabourDirectmaterialDirectCostsOperations


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Thank You

c8 operation management

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