CHAPTER 4

OPERATIONAL

4.0 INTRODUCTION

Operation planning include the activities of planning, using, utilize and controlling the available sources. It is important in business because through it, the qualities and quantities of the product will be determined. In addition, it is important in producing product exactly as being decided by company. Operation planning can discover the factors that may effects the production process. Moreover, this operation plan is to full fill the demand of our target market. The Auto Coffee Caf Sdn. Bhd . is new in the business in selling coffee for the customer using automatic serving. In our first year, we will sell the coffee, supplier and delivery service to the customer. We want to ensure our customer are satisfied in our services.

4.1 OBJECTIVEThe objective of the operation is to : Produce a good quality of the coffee and our own products Maintain cleanliness of the caf Ensure the production flows smoothly Make sure the customer satisfying with our product4.2 PROCESS PLANNING Flowchart of being coffee cafstart

Find the coffee beans producer to get a good coffee beans. Buy coffee beans with a suitable price.

Roasting the coffee with a maintain temperature of about 550 degree Fahrenheit.

Grinding coffee to get the most flavour in a cup of coffee.

Brewing coffee. The coarse or fine the coffee depends on the method by which the coffee is to be brewed.

Sweeteners are added in the coffee

Coffee a serve to the customer using automatic serve

End

Flowchart of being Supplier

start

Find the coffee beans producer to get a good coffee beans. Buy coffee beans with a suitable price.

Roasting the coffee with a maintain temperature of about 550 degree Fahrenheit.

Grinding coffee to get the most flavour in a cup of coffee.

Brewing coffee. The coarse or fine the coffee depends on the method by which the coffee is to be brewed.

Packing the coffee powder in the sealing bag. Then vacuum the plastic using vacuum sealing machine.

Deliver the coffee powder to the market

End

Flowchart of being Delivery servicestart

Find the coffee beans producer to get a good coffee beans. Buy coffee beans with a suitable price.

Roasting the coffee with a maintain temperature of about 550 degree Fahrenheit.

Grinding coffee to get the most flavour in a cup of coffee.

Brewing coffee. The coarse or fine the coffee depends on the method by which the coffee is to be brewed.

Packing the coffee in a hot cups or cold cupsEnd

The worker will deliver the coffee to the costumer

4.2.1 OPERATION LAYOUT

Pantry

`1

ToiletwomenToiletmanPrayer roomwomenOffice

Prayer roomman

4.2.2 LOCATION PLAN

4.2.3 LOCATION ADRESS : 36B, Jalan Lembah 19Bandar Baru Seri Alam81750 MasaiJohor Darul Takzim.

4.3 FACTORS

Factors that influence the choice of location :

There are the certain factors why our company wants to operate in this area. Firstly, the location is near the city. This location are strategic because it was near the office, hotels and the other institution . In addition, the location are not busy like in the city and the costumer will comfortably to comes to the caf. Besides, the location is in developing process so this will attract people to come in this area. In this area, the targets selling is to sell the coffee to the students and worker because the locations is near the institution such as university, school and office.

4.4 SUPPLIERS OF RAW MATERIALS

NAGAMAS JAYA (M) SDN. BHD.DAN QIANG PACK (M) SDN. BHD.BCC BAN CHUAN SDN. BHDSUTASAN TRADING COMPANYINDOMA (P.P) SDN. BHD.HUANG XIN HANG TRADING SDN. BHD.

4.5 BUSINESS AND OPERATION HOURS

4.5.1 OPERATION HOUR DAYHOUR

SUNDAY - THUSDAYFRIDAY SATURDAY8.00 A.M 2.00 A.M8.00 A.M 4.00 A.M

The operation hour for Auto caf is from 8.00 a.m to 2.00 a.m on weekdays. While in weekends, Auto Caf operation hour is 8.00 a.m to 4.00 a.m. The operation hour is early one hour from business hour. It is because the worker will prepared the caf before the business is run. This is to make sure the business will run smoothly and the cleanliness of the caf will be maintain.

4.5.2 BUSINESS HOUR DAYHOUR

SUNDAY - THUSDAYFRIDAY SATURDAY9.00 A.M 1.00 A.M9.00 A.M 3.00 A.M

The business hour for this Auto Caf is from 9.00 a.m to 1.00 a.m in weekdays. But in weekends, the caf will closed at 3.00 a.m. the business hour is late from the operational hour. It is because the caf will be open after the worker finished do a preparation for start the business. This caf closed a bit late on the weekends because the probability to get many costumer is higher. It is because the students and worker can go to the caf to make a discussion or meeting with their client .

4.6 PRODUCTION PLANNING

4.6.1 PURCHASING FORECASTAuto coffee target is to sell 300 cups of coffee per day. It is about 180 cups of coffee sell in the caf while the other 120 will sell by delivery to the university or office. There are two types of cup which is large cups and small cups. The price for large cups is RM 14.00 per cup. While price for small cups is RM7.00 per cup.The total selling for a day is RM 2 100.00 for large cups and RM 1 050.00 for small cups. The overall output in a day is RM 3 150.00. RM 14.00 X 150 = RM 2 100.00RM 7.00 X 150 = RM 1 050.00RM 2 100.00 + RM 1 050.00 = RM 3 150.00

4.6.2 TOTAL PRODUCTION IN MONTHThe working day for Auto Coffee is 7 days a week. The total days in a month is 28 days. So, the number of output is RM 88 200.00.7 days X 4 = 28 daysRM 3 150.00 X 28 = RM 88 200.00

4.7 MATERIAL PLANNING

4.7.1 BILLS OF MATERIALS

NOITEM DESCRIPTIONVENDORPRICE/UNIT(RM)QUANTITYTOTAL PRICE(RM)

1Coffee cups sleevesMr.takeoutbags.com343.482686.96

2Coffee stirrers and coffee strawsKegworks85.012170.02

3Dispensers napkinWebstaurantstore50.002100.00

4Foam cup lidsAlibaba.com140.002280.00

5Green recycle paper hot cups and lidsMr.takeoutbags.com522.8221 045.64

6StrawsWebstaurantstore50.002100.00

7Take out cup carriersWebstaurantstore489.392978.78

8Foam cupsLazada.com.my383.002766.00

9Straws dispensersWebstaurantstore90.002180.00

10Sugar, sweetener and creamerWebstaurantstore250.003750.00

11Coffee / espresso machine cleaners Webstaurantstore100.192200.38

12Various type of coffee beansNAGAMAS JAYA140.0010014 000.00

TOTAL19 257.78

4.9.2 BILLS OF MACHINE

NOITEM DESCRIPTIONVENDORPRICE/UNIT(RM)QUANTITYTOTAL PRICE(RM)

1Cappuccino / espresso machineLazada.com.my699.0021 398.00

2Coffee machineLazada.com.my64.902129.80

3Multipurpose warmersLazada.com.my120.008960.00

4Commercial coffee grindersLazada.com.my399.002798.00

5Commercial coffee makers / brewersLelong.com.my999.002798.00

6High volume coffee machine urnsWebstaurantstore7 785.9817 785.98

7Hot tea urnseBay271.081271.08

8Hot water dispenserLazada.com.my129.001129.00

9Under bar ice binsWebstaurantstore1 454.2311 454.23

10Sugar caddiesWebstaurantstore80.008640.00

11Restaurant creamersWebstaurantstore90.008720.00

12Tea merchandisersWebstaurantstore70.008560.00

13Straws dispensersWebstaurantstore90.00190.00

14Signs and easelsWebstaurantstore200.001200.00

15Whole coffee bean dispensersLazada.com.my400.591400.59

16FurnitureIkea28 600.32

TOTAL44 935.00

4.7 OPERATION BUDGE

ITEMFIXED ASSETMONTHLY EXPENSESOTHER EXPENSES

Shop rentalRM 3000.00RM 4 000.00

Shop renovationRM 15 000.00

MaterialsRM 20 000.00

EPF + SOCSOUtilities : Transport Shop expenses

RM 66 000.00RM 1 500.00

RM 2 180.00

TOTALRM 81 000.00RM 26 680.00RM 4 000.00

4.8 LICENSE, PERMITS AND REGULATION REQUIRED

Procedure in Applying License From Companies Commission Of Malaysia1. Regulation of a new business to be done within 30 days from the date of commencement of the business.2. Registration can be done at any SSM counter or through the e-Lodgement services.3. Complete the Business Registration Form (Form A)4. Business name approval is according to Rule 15, Rules Of Business Registration 19575. Business registration can be made for a period of 1 year and not more than 5 years6. Business registration (Limited Liability Partnership) RM 5007. Trade name RM 708. The business registration certificate can be obtained within 1 hour after payment9. Trade Name that must obtain prior approval from the Register of Business10. Complete the Business Registration Form ( Form A) with the following information :- Business name- Commencement and date of business- Principle place of business- Information of owner and partners- Type of business carried out- Provide a copy of partnership agreement

4.9 IMPLEMENTATION SCHEDULE

ACTIVITIESDEADLINEDURATION

Incorporation of businessMac May 20153 month

Application for permits and licenseMac May 20153 month

Searching for business premiseApril 2015

1 month

Renovation of premise

Jun August 2015

3 month

Procurement of machine and equipment

Jun July 2015

2 month

Requirement of caf

July 2015

1 month