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” yakni bilamana
saya berkomunikasi dengan Allah swt di dalam solat.
– Minat dengan muzik?
• Transform muzik yang diminati dengan hibur tangis anak-anak
dirumah.
 OPERATION
MANAGEMENT
 “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 and win in the global market.”

Tony Blair, Prime Minister of Britain

 Operation Management
1. The Transformation Process
2. Productivity Index
3. Process Planning
4. Material Requirement Planning
5. Layout Plan
6. Selection of Location
7. Calculation of Operational Costs
 1. The Transformation Process
External Environment Forces

INPUT______
OUTPUT___
• LABOUR
• RAW MATERIALS SERVICES
• MACHINES & TRANSFORMATION
EQUIPMENTS PROCESS OR
• TECHNOLOGY &
METHODS PRODUCTS
• CAPITAL
 2. Productivity Index

Total Value of Output

Productivity Index 
Total Value of Input

The productivity index (P.I) can be more or less than

1.
P.I > 1 = business running efficiently
P.I < 1 = business running inefficiently
 3. Process Planning
Symbol Type of Description
Activities
Operation Activities that modify, transform or give values
to the output

Transportation When materials are transported from one point

to another.

Inspection Measures standard of the in-process material,

finished product or services

Delay When in-process material is restrained in a

location waiting for next activity

Storage When in-process materials or finished products

are stored in the storage area.
 4. Material Requirement Planning
Step I : Identify and list down the raw
materials required
Step II : Prepare the bill of materials
Step III: Calculate the quantity of raw
material required
Step IV: Identify supplier
 Step I
Identify and list all the raw materials
required to manufacture the product or
provide the service.
– Restaurant: the raw materials required depend on
the menu for the day
– Cleaning service: the materials required include
consumable items like detergents and scrubbing
pads.
– Retail business: fresh goods, sundry goods,
canned goods.
 Step II
• Prepare a bill of materials
required for a unit of
product.
Ingredient Amount required for
100 cookies
Flour 2 kg
Margarine 0.5 kg
Sugar 1 kg
Eggs 4 units
Water 0.5 litre
• 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 kg
Eggs 0.04 of an eggs
(1 egg for 25 cookies)
Water 0.005 litre
 Step III
• Estimate the raw material requirement by
multiplying the bill of materials with the total
number of cookies to be produced monthly.
• The number of units to be produced must be
based on the sales forecast in the marketing
plan.
Example:
If the forecast demand per month is 50,000 units of
cookies.
If the amount of stock at the end of the month is 5%
of the amount.

 50,000  5%(50,000)
 50,000  2,500
 52,500 cookies/month
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
 Step IV
Identify supplier
• Look through yellow pages/publications by trade
associations, and seek quotations from suitable
suppliers.

1. Price and discount offered 5. Lead time i.e the time

2. Quality of materials between orders and delivery
3. Sales terms & conditions e.g 6. Delivery terms e.g free
payment terms transportation
4. After sale service and 7. Reliability of supplier
warranty
 Capacity Planning
• The capacity of any production operation
refers to the amount of output that can be
produced within a specified time.
• It is a method to calculate machinery and
manpower requirements so that production
demand based on sales forecast can be met.
• Based on monthly sales forecast, the daily
production capacity can be determine by
dividing it by the number of working days
per month.
• This capacity should be divided by the
number of working hours per day to give
the capacity per hour.
• 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 rate is:

910
days  35 ' tudung' per day
26

35
hours  5 ' tudung' per hour
7
 Purchasing of ‘tudung’
materials

Storage of ‘tudung’
materials

Cutting of raw materials to size. i.e

large, medium and small

Quality inspection

Transport the materials that have

been cut to tailor’s table

Sewing by
tailors Ironing Packaging Storage before shipping
out
Activity: ‘Tudung’ cutting
If one cutter can cut 1 ‘tudung’ in 1/3 hour, the reciprocal
of this is:
= the cutter’s capacity to cut per hour
= 3 ‘tudung’ per hour
Therefore, the number of cutter required is:
= Production capacity per hour/cutter’s capacity per hour
= 5/3 = 1.67 (needs 2 cutters)
Determine the number of workers required
If one tailor can sew 1 ‘tudung’ in ½ 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)
If one tailor requires a working space of 8 ft
by 10 ft, than the total space required for 4
tailors is:
= 8ft x 10 ft x 4 tailors
= 320 square ft
 5. Layout
• Layout refers to the arrangement of machinery,
equipment, workers and other facilities used in the
operation.
• The arrangement should be made in such a way
that the production of goods and services can be
done efficiently.
• It should take into consideration the integration of
several factors including work station, tool room,
store, office, prayer room and toilet.
 Types of layout
Layout based on product
– The design is done according to the sequence of
activity to produce the product.
 Area for soaking
Packaging Area
the Soya Bean

Grinding

Sieving Area

Pumping Area Boiler room

Prayer room
Office
Toilet
Layout based on process
– The design is based on the production process.
– It is suitable for a factory producing several
products that undergo a similar process.
 Praying
Toilet

Area
Store
Cutting Machine for
Raw
Materials

Welding Area

Forming Machine
Office

Display of
Inspection
Finished Goods

Painting and
Spraying
Layout based on marketing
– The 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 convenient for the
customers
• It is easy for the entrepreneur to protect goods from
theft
• The entrepreneur can maximize the return of
investment form the space used.
 6. Physical Location
• It is crucial to choose the right location for the
business because a strategic location can
contribute to the success of the business.
• The choice of location will depend on the
following factors:
– Distance from the source of raw materials
– Availability of manpower
– Transportation facilities
• LPT
– Distance from customer
– Price of premises
– Other factors
• Utilities, banks, schools and housing, government
policies and safety of surrounding.
 7. Operations Costs
• It is essential to determine the total operational
cost in order to calculate the cost per unit of
the goods produced.
• Operations costs include costs of direct
material, direct labour and overheads
• Direct materials costs
– Money spend on materials that are directly used to produce
the products or services.
• Direct labour costs
– The money paid as wages, salaries and benefits to the
workers involved directly in the production of the products
and services.
• Overhead costs
– Include rents, insurance, wages of indirect labour,
maintenance and depreciation.
Operations Costs  Direct material  Direct labour  Overhead

Total Operations Cost (RM)

Cost per Unit 
Total Number of Output (Units)
Thank You