SG7001 Managing Strategy Operations and Partnerships

Activity 1 4 Vs and SQFD&C

Vision The vision of the company is to excel in its core activities of manufacturing sugar and maintain its positioning as a leading sugar brand in Uganda.
   
Quality Evaluation Description & Justification Implications
Volume Moderate Currently, the company is running on the crushing capacity of 6000 Tons Cane per day and producing 150000 tons of sugar per year which is a moderate figure and can be improved further. The company is initially involved in supplying the final goods in Uganda and East Africa and with the support of grants and programs, this capacity s continuously increasing.
Variety Low The company Kakira Sugar Ltd has been operating since 1985 as a JV between Madhvani Group and the Government of Uganda where the variety of products is still limited to sugar (Clegg, 2019). The expansion, as well as co-generation project in this company, are formulated in order to produce one more variety which is bio-diesel.
Variation High There is expected a positive variation in demand as there are chances of population increase by 103 million by 2050 and per capita consumption of sugar is 12 kg. There will be continuous increment in the production of the sugar and the company will also expand its business units regionally (Zhang, et al., 2020).
Visibility High As there is a standard process of manufacturing sugar used by this company, there is higher visibility for the end consumers regarding the product (Yiu, et al., 2020). The company is clearly stating the figures related to its crushing capacities, manufacturing process as well as expansion plans to the consumers.
Speed Low As identified from the case company, the company approximately takes 10.5 months for the crushing capacity of 6000 tons Cane per year and this time needs to be minimized. The company is looking further to invest in its own nucleus estate to increase the speed of production.
Quality High The quality of the sugar offered by the company is quite high as compared to other brands and the vision of the company is also to maintain the leading position in the market and it is possible because of affordable prices and supreme quality. The company is involved in the natural processing of sugar and this is extracted from the cane grown on lush plantations on the shores of Lake Victoria (Benjaafar and Hu, 2020).
Dependability Low The company has low dependability for the raw materials as well as the processing of the canes as it has established its own nurseries of sugarcane and the in-house manufacturing of the product is being done. The company is in a joint venture with the government of Uganda and there is the support of grants from the government to expand the business operations.
Flexibility Low The supply chain model of the company is not flexible as there is higher operational control as well as the tight contribution of the parent company to this subsidiary company. There is centralized control of the parent company as well as the government of Uganda on the manufacturing process of the company as well as its distribution channels hence the lack of flexibility can be a concern.
Cost Moderate The costs of manufacturing, as well as distribution, are moderate for the company as it has its own nurseries as well as manufacturing facilities. The company is also getting grants from the government. On the other side, the company is also focused on its CSR responsibilities and philanthropic activities. There is a low variety of products and the production is made on a large scale which offers the benefit of economies of scale to the company while producing sugar for regional distribution.

 

 

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References

Benjaafar, S. and Hu, M. (2020) Operations management in the age of the sharing economy: What is old and what is new?. Manufacturing & Service Operations Management22(1), pp.93-101.

Clegg, B. (2019) Improving systemic success factors in a university to achieve more effective and efficient operations: Using the PrOH modelling methodology. Business Process Management Journal.

Yiu, L.D., Lam, H.K., Yeung, A.C. and Cheng, T.C.E. (2020) Enhancing the financial returns of R&D investments through operations management. Production and Operations Management29(7), pp.1658-1678.

Zhang, F., Wu, X., Tang, C.S., Feng, T. and Dai, Y. (2020) Evolution of operations management research: from managing flows to building capabilities. Production and Operations Management29(10), pp.2219-2229.

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