A Productions and Operations Management Business Plan

Pure adaptation, pure ease, pure convenience, sheer genius

• Introduction (title slide)• What do we plan to do? Why would we do it?

– technology background and prototypes• How do we do that?

– Process design (process pictures), Location planning, Facilities layout

• Will it be a possible business idea? Is it feasible?– demand forecast, capacity planning, suppliers

• How will you make it into a business? Will it be good business?– HR, scheduling, quality (TQM)

• Are you profitable? Is it worth the investment? – Financials, costing

This additive would hasten the degradation process of the material; the material would breakdown and would return to the ecosystem.

Source: http://www.oxobio.org/faq.htm

Questions?Does the additive make the cup brittle? NO, the base material will be the same as any other plastic cup there is just a PLUS to it.

Will it break down (degrade) immediately 60days after production? NO, the additive catalyzes the break down process under the right conditions such as sufficient sunlight and oxygen. The conditions necessary arise when it’s thrown away.

• Main Tools Used– Interviews– Footcounting

• Interviewees (Franchisors)– Dimsum and Dumplings– Slammers– Taters– KFC (Inventory Manager)

Taters• 335,800 Snack and Slurp

Cups per year• Snacks considered – only

those expected to fit and be used with S&S cup– Potato Munchers– Fish and Chips– French Fries– Nachos

KFC• 5,234,976* Snack and

Slurp Cups per year• Total consumption of

26,174,880 food and drinks per year

* By supplying 20% of the total needs of KFC

• Lower initial costs• Dependence on

quality, frequency, and speed of delivery for the product

• Difficulty for expansion in the future

• Substantial amount of investment is needed

• Quality, frequency, and speed of delivery for the product can be controlled

• Easier expansion in the future

TO MAKETO BUY

Production CapacityTotal number of Snack and Slurp Cups produced in one day is 22,251 pieces.

Capacity VS Demand

Contingency Plans

• Level 1 – From raw materials to plastic sheets

• Level 2 – Molding• Level 3 – Stacking • Level 4 – Printing and

Packing• Level A – Straw making• Level B – Quality

control checking area

Production Line #1• Extruding, Thermoforming, Stacking and Packing

Total employees – 8• Big Cup – 3 • Small Cup – 3• Straw – 2

Production Line #2Total employees – 3 • Big Cup – 1 • Small Cup – 1• Straw – 1

Production lines need a minimum of 11 people.

Human ResourcesOrganizational Chart

General Overview

Job QualificationsTop 3 Positions - General Manager - Certified Public Accountant - Productions Supervisor

- at least a college graduate- 2 years of working experience for operations department- excellent communication, written , organizational and analytical skills

Machine Operators and Line Men

- at least 20 years old- with adequate skills and adequacy in equipments and crafts.

• Industrial fans and indoor ventilators will be installed at corners and sides of the room to maintain a circulation of the air within the plant.

• In order to provide ample lighting, 180 fluorescent luminaires will be installed

• For the machine workers and line men, 20 minute breaks will be given during the afternoon.

Working Conditions

Recruitment Process• Total number of

employees: 23• Orientation Seminar and

hands-on training for 10 days (P70 per hour)

Hiring or Layoff Policy

• All employees to be hired will be regular workers

• Subject for laying-off: tampering with company’s properties, misbehaviours, exceeding the maximum number of tardy and absences

Position No. to be hired

Salary(per person)

General Manager 1 30,000

Certified Public Accountant 1 15,000

Productions Supervisor 1 15,000

Supply Chain Manager 1 8,400

Line Man 2 6,300

Workers/ Machine Operators (8) 11 5,250

Security Guard, Receptionist, Driver Salesman 5 6,300

Technician 1 2,625

Janitor 1 4,830

Salaries will given on the 15th and 30th of every month.

21 working days used

Monthly Salaries of Employees

Benefits• 13th month pay -

December• Service Incentive Leave of

5 days - time to be specified by the company

• Social Security System - 60% to be paid by the employer and the 40% by the employee.

• Pag-ibig, Philhealth , medical insurances

Attendance• Working time frame:

Mondays to Fridays, 9 am up to 5pm

• Leeway of 15 minutes for latecomers

• Tardys – 10% deduction in daily wage

• Maximum in 1 year– 5 tardys – 3 days sick leave– 5 days vacation – 10 absences

Safety and Security

• Pre-entry to Operations Room Procedures: -wash hands

-wear overalls, gloves, goggles, hairnets and boots

• Low level of social contact among workers

EPI Environmental Technologies Inc. (Canada):Polypropylene resinOxo-biodegradable additive

Wenzhou Gettel Plastic Co., Ltd. (China): Plastic packaging film

Sylor (Philippines): Recycled boxes

Wenzhou Xiaohai I/E Industrial Co., Ltd. (China): Printing ink

Docking point for goods: Port of Manila

Carrier of choice: FedEx

Pick up and deliveries: Company truck/s

• Raw Materials:- Polypropylene (PP) Resin- Oxo-biodegradable Additive- Plastic Packaging Film

• Aggregate Plan – Match Demand

• Annual Demand – ____________

Pre-operational Activities

• 70 hrs training sessions• Warm up and checkups of

machines • Finished goods will be loaded

to delivery trucks• Qualitative inspection of raw

materials– Quantity received =

Quantity ordered– Packaging damages, leaks,

deformities• Orders must be stated 3 days

before date needed

Operational Activities

• Production is done continuously in batches of 13-all rejects are to be used for batch 13

• Line 1 – machine operators

• Line 2 – printing, quality control inspection, packaging and stocking up

Scheduling of Daily Operations(Monday-Friday)

Time Tasks9:00 – 9:15 Workers come into the facility and warm-up

of machines9:20 – 12.00 Working Time

-20 mins for printing, quality control, packaging and stocking up of inventory

12:00 – 1:00 Lunch Break1:00 – 3:00 Working Time

-20 mins for printing, quality control, packaging and stocking up of inventory

3:00 – 3.40 Break Times3:40 -4:40 Working Time4:40 – 5:00 Cool down of machines

5:00 Employees Leave

Scheduling of Deliveries

Day of Delivery

Client Location

Monday KFC PhilippinesBurger King

•Diliman, Quezon City•Gateway Mall•Kanlaon St. Quezon Ave.•SM City Manila•SM City North EDSA•Timog

Tuesday Golden Arches Phil.Taters Enterprises Inc.

•Paseo de Roxas, Makati City•Pasong Tamo, Makati City

Wednesday Wham! Burgers •Katipunan•Shangri-la Mall

Thursday Brothers Burger •Pasong Tamo. Makati CityFriday Jollibee Foods Corp. •Canlubang Laguna

Total Quality Management

•dimension and resistance through qualitative inspections

•Leaks and holes•Weight

Standardization•Conformity to the

standard dimensions of the Snack and Slurp Cup

Therefore, break-even will be at 4.8M units sold per year