INFORMATION SYSTEMS AT SHAKARGANJ

Group Members:Muhammad Abubakar Mourige

Agha Sarmad DawarSaad Naveed

Overview Shakarganj Mills began operations in

1974. Short supply of sugar in 1970s. Regulated prices. “Gur” producers preferred by farmers.

Overview 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.

Operations 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.

Cane Procurement 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.

Cane ProcurementMethod 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.

Computerization 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)

Advantages of Computerization

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.

Monroe Ledger Card Computer System

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

Agreement with Systems Limited

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

Computerisation Strategy Development

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

Modernisation Efforts Spare-parts inventory management

systems New procedures and forms for ordering Ordering time and paper-work reduced Material management system

Modernisation Efforts 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

Conclusion 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