Information systems at Shakarganj
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Shakarganj Mills began sugar operations in 1974 but faced short supply issues in the 1970s due to regulated prices and competition from "Gur" producers. In 1981, deregulation of prices and government incentives motivated SML's expansion through increasing storage capacity, adding turbines/generators, and boosting cane crushing capacity. SML also transitioned to a cheaper and more environmentally friendly carbon dioxide sugar refining process. In 1976, SML partnered with UBL to computerize cane accounting to reduce fraud, issues with multiple cheques, and the 60,000-70,000 manual transactions per year. This helped make payments to cane growers more promptly and maintain good relationships.
Information systems at Shakarganj
- 1. Group Members: Muhammad Abubakar Mourige Agha Sarmad Dawar Saad Naveed
- 2. Shakarganj Mills began operations in 1974. Short supply of sugar in 1970s. Regulated prices. “Gur” producers preferred by farmers.
- 4. Deregulation of prices and government incentives in 1981. Motivated SML for expansion. Three phases: Storage capacity of sugar, molasses and bagasse were enlarged. Addition of turbines and generators. Cane crushing capacity increased. Emphasis on Balancing, Modernization, Replacement and expansion.
- 5. Sulphur-dioxide refining to Carbon-dioxide refining. Cheaper, environmental friendly and superior quality of sugar. Continuous process – breakdown anywhere caused production stoppage. Plant shut down resulted in Rs 0.9 million loss/day.
- 6. Operations dependent on continual large supply of sugar cane. Harvest varied from year to year causing fluctuations. Good relationship with the grower vital for SML. First one to install hydraulic cane dumpers in Cane yard – reducing the unloading time.
- 7. Method of Payment: Cane Purchase Receipt (CPR) issued to the grower against the amount of cane purchased. Particulars of the CPR were recorded in Purchase Centre's log sheet and sent to accounts section along with copies of CPR. Problem: Accounts section carried 60,000-70,000 transactions a year. Cases of fraud. Multiple cheques.
- 8. Problems with manual as well as desire to reduce dependence on human workforce made SML adopt computerization. In 1976, UBL was contacted for processing the cane accounting data. Copies of CPR were sent to UBL every fourth day which would generate these output reports: Payment Log (within seven days) Growers Ledger (at the end of the season) Purchase Log (at the end of the season)
- 9. Reduction of delays in processing Prompt information for loan recovery and status of different growers Helped in making payments within two weeks limit. Aided in establishing a good relationship with the cane growers.
- 10. Cane accounting programmes Errors observed Low morale Time consumption Shifted back to UBL Monroe shifted to financial applications PROM – changes required reprogramming Errors persistent SML consequently stopped payments
- 11. Computerisation strategy Cane procurement system Disorganised data management Cane crop surveyors distorted data Accurate and organised data needed for better cane procurement schedules Accounting Finance Control department Included receivables, payables, inventory accounting, and cane accounting
- 12. Inventory Accounting system IBM S/36 for Finance & Control Department Cane Accounting applications developed Payroll programme installed 3 IBM AT’s for Technical House for computer aided design, worksheet analysis, and word- processing
- 13. Spare-parts inventory management systems New procedures and forms for ordering Ordering time and paper-work reduced Material management system
- 14. Cane-procurement systems Existing system replaced by a station with 2 weighbridges Unloading time reduced by industrial automation Auto-data entry for cane accounting saved time & costs Computer awareness programme 4 more microcomputers bought for managers Courses on WordStar and Lotus
- 15. Role of MIS increased in importance Key areas requiring MIS attention: Cane procurement Plant operations Immediate goals: Complete automatic cane weighing system Develop applications for Spare parts buying Personnel management Maintenance management system
Editor's Notes
- #12: The agreement with the software development consulting firm Systems Ltd in 1985 comprised of the computerisation strategy which highlighted the need of its presence in two major areas – CPS and ACC
- #14: 1c A material management system was designed for computerized inventory control which enabled different managers to get online information regarding parts and order through their terminals.
- #16: Opening line: The conclusion derived from the Corporate Planning Seminar held highlighted the significance of the role of MIS in carrying out its operations.