Cosumar SA Supply Chain

Operations Management Final Project

09/05/2012

y!

Aicha Slassi Sennou Fatima"A##ahra $amrani Meryeme ouargan %nssa& 'l ou(ari )ora 'l a(raoui Alaoui

2 Cosumar SA Supply Chain

Table of Contents
Executive Summary. 2 Overview .3 AgriBusiness. ....5 Marketing Strategies ..6 SWOT Ana ysis ...! T"e Su## y $"ain ..% Su## y $"ain &r'cess ..() &r'cess Ana ysis an* +irst ,m#r'vement.(3 -e'r*er &'int an* Sa.ety St'ck 2( -ec'mmen*ati'ns 2/ A##en*ix .25 -e.erence ...2!

3 Cosumar SA Supply Chain

Executive summary: Cosumar *roup is the major player in the Moroccan sugar in+ustry since it o,ns all the Moroccan sugar re&ineries Cosumar SA- S./AC- S.0A- S.)A '$ an+ S.C/AFO/1 %n our report- ,e ,ill &ocus our analysis on the Cosumar SA- ,hich is locate+ in Casa2lanca an+ it inclu+es the re&ineries o& 3ou((ala! /e&inery si+i ennour an+ /e&inery 4emamra1 0he Cosumar SA pro+uces! $oa& sugar- granulate+ sugar- the ingot un+er the 2ran+ 5'nmer6 an+ Molasses 5&or e7port61 A&ter e8aluation o& the current supply chain strategy a+opte+ 2y the company- ,e con+uct a process analysis metho+ in ,hich ,e succee+ to increase the capacity 2y recommen+ing the purchase o& a ne, +rying machine that ,ill ensure an increase o& the pro+uction capacity1 Moreo8er- ,e calculate the amount o& sa&ety stoc( an+ the reor+er point that ,ill guarantee the pro+uction that ,ill satis&y the yearly estimate+ increase in +eman+1

/ Cosumar SA Supply Chain

Overview: COSUMAR is the first Moroccan company in the sugar industry in Morocco. In 1929, a refinery in Casa !anca "as created under the sym o! COSUMA, y Saint #ouis de Marsei!!e. In 19$%, &he Moroccan go'ernment ac(uires )*+ sta,e of the company. In 19-), O.A ta,es contro! of ))+ the capita! Cosumar "hich is no" !isted on the Casa !anca Stoc, /0change. COS.MA/ +e8elope+ its e7pertise in three main 2usiness segments! re&ining- e7traction an+ pac(aging o& sugar in 8arious &orms1 0he *roup COS.MA/ continues to+ay its gro,th 2y mo+erni#ing its pro+uction- 2y impro8ing its competiti8eness- 2y supporting the +e8elopment o& the .pstream Agricultural an+ continuing to 2uil+ on the 9uality o& its pro+ucts1 %n &act- the *roup Cosumar relies on the e7pertise an+ commitment o& its human resources to meet all challenges o& the sector:s competiti8eness an+ to &ully assume the responsi2ilities o& its lea+ership1 In 2**), Cosumar ecame the ma1or p!ayer in the sugar industry since its ac(uisition of SURAC, SU&A, SU.A2/# and SUCRA3OR, un+er the pri8ati#ation process le+ 2y the State1 Actually- COS.MA/ engage+ in continuing the +e8elopment o& the ,hole sugar in+ustry an+ the upgra+ing o& the .pstream Agricultural- 2y 2ene&iting ;0-000&arming &amilies that consi+er the pro+uction o& sugar 2eet an+ sugar cane as their main acti8ity1

5 Cosumar SA Supply Chain Mission:

4COSUMAR is specia!i5ed in the production, pac,aging and mar,eting of se'era! sugar forms6 !oaf, !ump, cu e and granu!ated. &he production is carried out in t"o "ays6 7rocessing of sugar cane and sugar eet p!ants to "hite sugar Refining of imported ra" sugar

&he fi'e su sidiaries of COSUMAR6 COSUMAR SA, SURAC, SU.A2/#, SU&A and SUCRA3OR are esta !ished a!! o'er the Moroccan 8ingdom.9

Vision:

:e are !oo,ing for"ard to eing the !eader and di'ersified agricu!tura! industry in Africa.

COSUMAR subsidiaries:

Cosumar SA: Cosumar SA! the company inclu+es the re&inery Casa2lanca an+ 3ou((ala s,eets- an+ pro+uces! 2rea+ sugar- granulate+- the ingot an+ the piece an+ the 2ran+ 5'nmer61 SURAC is specia!i5ed in sugar cane production, the company it has a processing capacity of 1*,)** tons of cane per day and has a turno'er of ;*1.< Mi!!ion dirham. It se!!s its sugar under the rand name of 4A! 8as ah9. SURAC has produced 9;,<1- t of "hite sugar. SUTA is &he Sugar Refinery of &ad!a, and it "as created in 19%1. Its products are rand named 47a!m9. In 2**%, this refinery produced )),%1* tons of "hite sugar and its tota! turno'er "as stopped at 2$).; mi!!ion dirham. SUNABEL! this re&inery is locate+ in '$ *har2 an+ $ou((os1 %ts main acti8ity consists o& the pro+uction o& ,hite sugar- pellets an+ molasses un+er the 2ran+ name 5'$

6 Cosumar SA Supply Chain

'$$A/61 %t has three pro+uction units <=sar 'l =e2ir- Machr>a el =siri? ,ith a processing capacity o&1@- 000 tons o& 2eets per +ay1 SUCRAFOR ,as create+ in 19A21 0his re&inery is locate+ in the Moulouya an+ has a processing capacity o& @000 tons o& 2eet per +ay an+ its turno8er is 1A@15million +irham1 %t pro+uces an+ sells sugar pro+ucts such as the granulate+ ,hite sugar- an+ molasses un+er the 2ran+ name o& 5$a *a#elle61

Agribusiness sector in Morocco:

0he &oo+ sector is one o& the lea+ing sectors o& the Moroccan economy1 %t has more than 1A00 companies such as O)A- 3yana Bol+ing- Bolmarcom- castel an+ el1%t has a pro+uction o& o8er C0 2illion MA3 an+ contri2utes o& one thir+ as a contri2ution o& the in+ustrial *3P1 0his sector is gro,ing rapi+ly than(s to the strong per&ormance o& 2oth +omestic +eman+ an+ e7ports1 0his is mainly mani&este+ 2y the change o& gastronomic ha2its- lea+ing to a higher stan+ar+ o& national consumption- 2ut remains relati8ely lo, compare+ to countries ,ith compara2le economic le8el1
Sugar Industry in Morocco:

0he sugar in+ustry in Morocco occupies a strategic position in the economic )ational le8els1 %ts contri2utions o& the pu2lic sector an+ pri8ate sector ha8e le+ to the +e8elopment o& local pro+uction o& sugar ,hich co8ere+ a2out D5E o& national nee+s1 %n &actsugar crops contri2ute to impro8e the incomes o& ;0-000 &armers an+ create more than 9 million +ays per year &or seasonal ,or( in a signi&icant ,ay- accor+ing to the Ministry o&

0 Cosumar SA Supply Chain

Agriculture1 Since the +eman+ increase yearly ,ith 2E- these sugar crops contri2ute in co8ering only D5E o& the local +eman+1 0he annual consumption o& sugar ,as appro7imately A00-000 tons in 2010 ,here C0E ,ere co8ere+ 2y local pro+uction ,here the other D0E ,as importe+ ra, sugar in 2ul( &rom the &oreign mar(et such as ra#il an+ Argentina1 Cosumar pro+uces a 8ariety o& pro+ucts1 COS.MA/ pro+uces is the ingot an+ the sugar cu2es an+ they 2oth come in pac(age o& 1(g1 *ranulate+ sugar- use+ 2y 2oth the in+ustry an+ househol+s as ,ell- it is usually sol+ in 2 (g 2ags1 %n a++ition- COS.MA/ also pro+uces sugar in &orm o& loa8es1
Marketing Strategies:

Cosumar organi#ation concentrate+ all it struggle on its customers 2y choosing an appropriate mar(et approach1 0o attain this- the Sales F Comerciali#ation sectors ha8e+etermine &our +epartments o& impro8ement an+ progression! GH On the support o& stan+ar+ contentment researches- the &unctioning plan are per&orme+ to a&&or+ goo+s an+ ser8ices 2etter a+juste+ to the customer1 GH O&&er a suggestion o& a compoun+ pro+uct ,ith an accepta2le e7amination an+ e7ploration o& regionali#ation sales o& *roup pro+ucts1 0o ma(e secure su2stantial reser8es o& the mar(et an+ optimum analysis o& national territory- se8eral sales +epartments ha8e 2een a+opte+ 2y the organi#ation o& COS.MA/- an+ situate+ in (ey areas o& the Morocco1 GH %n8ol8ing an important project &or +eli8ery un+er the application agreement 2et,een the State an+ Fimasucre to attain continuously the 2usiness net,or( an+ get closer to the ultimate consumer1 GHApplying the /ules o& usual proce+ures through the project certi&ication IS' o& Sales an+ Mar(etingJ its pro+uction capacity an+ storage ma(e it the largest units1

! Cosumar SA Supply Chain

COS.MA/ *roup has set up a /esearch F 3e8elopment- ,hose commission contri2utes to enhancing ,or( rate an+ commo+ity attri2utes- &eatures an+ con+itions1 GHAnticipating mar(et li2erali#ation an+ the intro+uction o& competition- these impro8ements ,ent nota2ly through the e7pansion o& current systems &or the manu&acture o& sugar0he i+ealism o& pro+uction &acilities an+ impro8e+ ,ater conser8ation an+ energy an+ the mar(et initiate contemporary goo+s to con&ront customer &orecasts1 COS.MA/ *roup has implemente+ its plan to mo+erni#e an+ upgra+e its pro+uction &acilities ,ith the aim o& enhancing pro+ucti8ity an+ per&ormance1 Many transactions ha8e 2een reali#e+ inclu+ing! GH %mpro8ement o& the &a2rication amplitu+e o& granulate+ sugar le+ to @000 tons per +ay1 GH e7pansion o& the insurance o& the &air use o& scope o& 2ul( ,hite suga1r GH Fa2rication o& t,o 9ualities o& ,hite sugar1 GH Progressi8e an+ continuous restore o& physical &a2rication o& Sugar $oa& 2y automate+ shape or con&iguration1

% Cosumar SA Supply Chain

COS.MA/ +istri2utes its pro+uction o& re&ine+ sugar to 52E o& the granulate+ sugar an+ a2out @515E o& the sugar template an+ 1215E o& the sugar cu2es1 COS.MA/ also +e+icates the pro+uction o& sugar &or in+ustrial use1 %t pro+uces other pro+ucts calle+ co"pro+ucts o& sugar manu&acturing1 0he pulp +ehy+rate+ &orm o& pellets- treatment outcome an+ is ,i+ely use+ as ra, material &or animal &ee+ an+ li8estoc( in particular1 0here is also MolassesJ a 2ypro+uct o& the last re&ining ra, sugar is use+ as su2strate &or the pro+uction o& yeast1

SWOT ANALYSIS:

Strengths:

COS.MA/ has 2een the lea+ing company &or ;D years an+ it has a 100E mar(et share ,hich means there is no ri8alry in the mar(et1

Weaknesses:

Since COS.MA/ cannot pre+ict the ,eather- this a&&ects the amount o& pro+uction o& sugar 2eet an+ sugar cane1

Opportunities:

0he +eman+ o& sugar increases e8ery year 2y 20000 tons per year o& sugar1 An+ the a8erage Moroccan citi#en consumes an amount o& @5 (g/year1

0he go8ernment protects the agricultural an+ the sugar in+ustry since they contri2ute in increasing the national *3P ,hich represents an entry 2arrier to potential competitors1

() Cosumar SA Supply Chain

Threats:

One o& the threats COS.MA/ is &acing is the price &luctuation o& imports! the prices o& sugar &luctuate in the mar(et +epen+ing on the la, o& +eman+ an+ supply1

0he ,eather represents a threat to COS.MA/ since gro,ing sugar 2eet an+ sugar canes rely on a huge amount o& ,ater an+ in case o& +rought Cosumar may &ace a shortage o& pro+uction1

T e Su!!"y C ain:

I.

Supp ! Chain La!ers:

1? Supp iers!

0he main CosumarKs suppliers are categori#e+ as! Suppliers o& physical materials Ser8ices suppliers Foreign suppliers o& ra, materials

2? "anu#a$turing! Cosumar SA- inclu+ing its t,o &actories Si+i ennour an+ #emmamra- +eal ,ith all the manu&acturing process1 %& 'istri(ution: Cosumar SA- chooses the outsourcing as a strategy to manage the transportation process1 D? C ients!

(( Cosumar SA Supply Chain

0he main CosumarKs customers are! Lholesalers Supermar(ets %n+ustrial customers

Su!!"y C ain #rocess:

)& Ra* Sugar Cosumar- in or+er to satis&y the +eman+ o& sugar- 2ases its pro+uction on the local an+ importe+ ra, sugar1 Lo$a ra* sugar: 0he company pro+uces the ra, sugar &rom the e7tracte+ 2eet an+ cane- precisely &rom the region o& 3ou((ala1 0he company has signe+ contracts ,ith &armers in this region in or+er to pro8i+e Si+i ennour an+ 4emamra &actories ,ith the 2eet an+ cane that ,ill 2e

trans&orme+ into ra, sugar in these &actories- then into ,hite sugar that itsel& ,ill 2e trans&orme+ into &inishe+ pro+ucts <2rea+ sugar- granulate+- the ingot an+ the piece?1 0he trans&ormation o& the 2eet an+ cane into ra, sugar +eman+s many steps- (no,ing that the sugar pro+uce+ &rom 2eet is the same as the sugar pro+uce+ &rom cane1 ase+ on the in&ormation pro8i+e+ in an internship 5in Cosumar SA6 report <2010?- the major steps are!

(2 Cosumar SA Supply Chain

A&ter collecting the 2eet an+ cane &rom the &arms- they are 9uic(ly transporte+ 2y truc(s to &actory in ,hich they ,ill 2e store+1

0he secon+ step is ,ashing the 2eet in or+er to get ri+ o& all the +usts1 A&ter cutting the 2eet 2y speciali#e+ machines- using a+8ance+ +i&&usion machines the sugar +isperse &rom the 2eet an+ cane1

0he ne7t process is the parching- ,hich is reali#e+ in machines that e8aporate appro7imately 22 tons o& ,ater per hour1

A&ter a 9uic( step o& puri&ication- there is the crystalli#ation step- ,hich is the e7traction o& compact sugar &rom the li9ui+1

An+ &inal step is the +rying an+ storage step1 0he storage shoul+ 2e un+er speci&ic con+itioning1

Importe+ Ra* Sugar: ra#il supplie+ practically 100 percent o& Morocco:s importe+ sugar1 <$ematin - 2010? Cosumar imports 2asically 50E o& the ra, sugar nee+e+ &or the re&ining process1 ,& White Sugar 0he &actories- a&ter either pro+uction or collection o& ra, sugar- start the re&ining o& ra, sugar into ,hite sugar1 0he re&ining is processe+ using +e8elope+ machines an+ technologies that guarantee+ an optimi#ation o& pro+uction an+ a high e&&iciency 2y minimi#ing the ,ater an+ &uel consumption1 %& Fina -ro+u$ts:

(3 Cosumar SA Supply Chain

A&ter re&ining the ra, sugar into ,hite sugar- the ,hite sugar is con8erte+ into &inal mar(eta2le pro+ucts 2ase+ on a parallel process that allo,s the pro+uction o& the &inal mar(eta2le pro+ucts at the same time- ,hich are! 2=g $oa& Sugar *ranulate+ Sugar $ump Sugar Molasses! ,hich is the syrup remaining &rom processing 2eet or cane- an+ Cosumar e7ports this 2ypro+uct to the international mar(et Pellets! &or animal &oo+- an+ it is generally gi8ing to the 2eet &armers1

.& -a$kaging an+ 'istri(ution: 0he &inal pro+ucts are pac(age+ an+ store+ in con+itioning spacesJ then- the pro+ucts are +eli8ere+ to CosumarKs clients! ,holesalers- supermar(ets- an+ in+ustrial customers1 Cosumar is counting mainly in its transportation on e7ternal companiesJ ,hich means they are outsourcing the transportation 2ut the pro2lem is that sometimes there are some incomplete shipments or +elaye+ ones1 Sometimes the contractors +onKt meet Cosumar e7pectations an+ there&ore cause many pro2lems1

0he &ollo,ing chart summari#es the supply chain process!

(/ Cosumar SA Supply Chain ( Suppliers: -aw sugar1 .r'm Bra2i W"ite sugar1 .r'm Si*i Benn'ur an* 3emamra 2 Transportatio nExterna c'm#anies 3 Manufacturin g: $'sumar SA 4$asa5 anca6 / Customers: Transportati W"' esa ers7 onExterna su#ermarkets7 c'm#anies in*ustria cust'mers

"

5
Warehouses St'rages in w"ic" t"e .ina #r'*ucts are st're*

#rocess $"o% &iagra':

Ana"ysis o( t e !rocess:

(5 Cosumar SA Supply Chain

C!$ e Time O# The Stages

S1G 5 minutes /1 tonne G 5 minutes/tonne1 S2G 5 minutes / 1 tonne G 5 minute /tonne S@G C minutes / 1 tonne G C min/tonne M1G D min / 1tonne G D min / tonesM2G D min / 1tonne G D min / tonesthus SD G 2 min /tones S5G C min / 1 tonne G C min /tonne

Capa$it! O# the Stages

S1G 1 tonne / 5 minute G 012 tones/ minute S2G 1 tonne / 5 minuteG 012 tones/ minute S@G 1 tonne / C minG 011CCC tones/ min M1G 1 tonne / D min G 0125 tones/ minM2G 1 tonne / D min G 0125 tones/ minSD G 0125 M 0125 G 015 tones/ min S5G 1 tonne / C min G 011CCC tones/ min

thus

SCG C min / 1 tonne G C min /tonne

SCG 1 tonne / C min G 011CCC tones/ min

SAG 5 secon+s / 1 tonne G 5 min /tonne S;G5 min / 1 tonne G 5 min /tonne S9G 1D min / 1 tonne / ). min

SAG 1 tonne / 5 s G 012 tones/ min S;G 1 tonne / 5 min G 012 tones/ min S1/ ) tonne 0 ). min / 2.23). tones0 min MK1G 1 tonne / D min G 0125 tones/minMK2G 1 tonne / D min G 0125 tones/minMK@G 1 tonne / 5 min G 0120 tones/minMKDG 1 tonne / C min G 011CCC tones/min-

0tonne

MK1G D min / 1tonne G D min/ tonesMK2G D min / 1tonne G D min/ tonesMK@G 5 min / 1tonne G 5 min/ tonesMKDG C min / 1tonne G C min/ tones-

From the a2o8e calculations- ,e conclu+e that the 2ottlenec( stage is S9 2ecause it has

the lo,est capacity o& the process- 2.23). tones0 min4 an+ the highest Cycle 0ime! ).
min

0tonne1

(6 Cosumar SA Supply Chain

Conse9uently- the process capacity is 2.23). tones0 min1 An+- the Cycle 0ime o& the process is ). min0 tones.

0he Minimum Manu&acturing $ea+ 0ime is: 52min

%& ,e ,ant to increase the capacity o& the process ,e shoul+ in8est on a machine that ,ill 2e a++e+ at the 2ottlenec( station S91 0his solution ,ill help increase the capacity o& the machine an+ increase the total capacity o& the process1 0he least ne, capacity shoul+ 2e 011CCC tones/ min- in or+er to mo8e the 2ottlenec( to station @- 5- C an+ 10 that all ha8e the same capacity1 0a(ing 7 to 2e the cycle time o& the ne, machine! Capacity G <1/1D? M <1/7? G 011CCC tones/ min- so the ne, machine ,ill ha8e a cycle time 10125 min /tones1 0hus- a capacity o& 0109 tones/ min1 Accor+ing to the gi8en +ata- a ne, jo2 enters the Stage 1 e8ery 10 min1 The S!stem 6antt $hart:

(0 Cosumar SA Supply Chain

'es$ription o# The 6antt $hart : 0he *antt chart sho,s the process since +uring the eight &irst stages the process mo8es smoothly ,ith i+le time &or the eight machines1 Lhen ,e arri8e at stage 9- ,e remar( that jo2s 2- @ an+ D ,ait in a 2u&&er 2e&ore mo8ing to the machine at Stage 91 No2 2 ,aits D min- jo2 @ ,aits ; min 2e&ore mo8ing to stage 9 an+ jo2 D ,aits 12 min 2e&ore mo8ing to the ne7t stage ,hich is 91 Finally- all the jo2s are +i8i+e+ into D to go to MK1- MK2- MK@ an+ MKD1 )o, ,e ,ill +etermine the actual cycle time o& the process! A unit comes out o& the system at times! For No2 1! From MK1! C0 From MK2! C0 From MK@! C1 From MKD! C2 From MK1! ;; From MK2! ;; From MK@! ;9 From MKD! 90 For No2 2! From MK1! AD From MK2! AD From MK@! A5 From MKD! AC From MK1! 102 From MK2! 102 From MK@! 10@ From MKD! 10D

For No2 @!

For No2 D!

(! Cosumar SA Supply Chain

Bence the a$tua CT is %.). min0tone. Calculate the A8erage Manu&acturing $ea+ 0ime! For No2 1! From MK1! C0min From MK2! C0min From MK@! C1min From MKD! C2min From MK1! C; From MK2! C; From MK@! C9 From MKD! A0 For No2 2! From MK1! AD"10G CDmin From MK2! AD"10G CDmin From MK@! A5"10G C5min From MKD! AC"10G CCmin

For No2 @!

For No2 D!

From MK1! A2 From MK2! A2 From MK@! A@ From MKD! AD

The a7erage "LT! the units o& the system spen+ +i&&erent times in the system1 Bence- the a8erage M$0 is 55.38 minutes1

%n or+er to impro8e the capacity o& the system- ,e suggest a++ing a ne, machine that

has a capacity o& 0109 tones/ min an+ a cycle time o& 10125 min /tones ,hich ,ill 2e place+ in parallel ,ith the machine e7isting at the stage 9 that is calle+ the +ryer1 The ne* -ro$ess # o* +iagram *ith impro7ement on stage 1

M1, 4 S1, 5 S2, 5 S3, 6 S5, 6 S6, 6

M2, 4

M1, 14 S7, S8,

M1, 4

M2, 10.25

M2, 4

M3, 5

M4, 6

%n this ne, process &lo, +iagram- ,e see the ne, machines implemente+ in parallel in stage 91

(% Cosumar SA Supply Chain

Ana !sis o# impro7e+ pro$ess C!$ e Time O# The Stages

S1G 5 min / 1 tonne G 5 min/tonne

Capa$it! O# the Stages

S1G 1 tonne / 5 min G 012 tones/ min

S2G 5 min / 1 tonne G 5 min /tonne

S2G 1 tonne / 5 min G 012 tones/ min

S@G C min / 1 tonne G C min /tonne

S@G 1 tonne / C min min

/ 2.)555 tones0

M1G D secon+s/ 1tonne G D min / tonesM2G D secon+s/ 1tonne G D min / tonesthus S5G C min / 1 tonne G C min /tonne

M1G 1 tonne / D min G 0125 tones/ minM2G 1 tonne / D min G 0125 tones/ minSD G 0125 M 0125 G 015 tones/ min S5G 1 tonne / C min G 2.)555

tones0min
SCG C min / 1 tonne G C min /tonne SCG 1 tonne / C min G 2.)555 min

tones0

SAG 5 min / 1 tonne G 5 min /tonne S;G5 min / 1 tonne G 5 min /tonne M61G 1D min / 1 tonne G 1D min /tonne M62G 10125 min / 1tonne G10125 min /tonne1

SAG 1 tonne / 5 min G 012 tones/ min S;G 1 tonne / 5 min G 012 tones/ min M61G 1 tonne / 1D min G 010A1D tones/ min M62G 1 tonne / 10125 min G 0109 tones/ min thus S9G 010A1D M 0109

/ 2.)5 tones0 min

MK1G D min / 1tonne G D min / tonesMK2G D min / 1tonne G D min / tonesMK@G 5 min / 1tonne G 5 min / tonesMKDG C min / 1tonne G C min / tonesMK1G 1 tonne / D min G 0125 tones/ minMK2G 1 tonne / D min G 0125 tones/ minMK@G 1 tonne / 5 min G 0120 tones/ minMKDG 1 tonne / C min G 2.)555

tones0

min4

At this stage- the 2ottlenec( o& the system is Stage @-5-C-9 an+ MKD1 0his time ,e ,ill in8est on all these 2ottlenec(s in or+er to mo8e to the ne7t 2ottlenec( le8el that has a capacity o# 2., tones0 min. 0hus- ,e nee+ to impro8e the capacity at each stage 2y a++ing

2) Cosumar SA Supply Chain

2.2.tones0min. A&ter loo(ing at the *antt Chart an+ its analysis ,e ,ill mo8e to the ne7t stage that is impro8ement o& these ne, 2ottlenec(s1 Accor+ing to the gi8en +ata- a ne, jo2 enters the Stage 1 e8ery 10 minutes1 The S!stem impro7e+ 6antt Chart

'es$ription o# The 6antt $hart : 0he *antt chart sho,s that our solution is e&&icient since ,e remar( that there is no 2u&&er anymore an+ that the jo2s 2- @ an+ D +o not nee+ to ,ait anymore 2e&ore mo8ing to stage 101 )o, ,e ,ill +etermine the actual cycle time o& the process! A unit comes out o& the system at times! For No2 1! From MK1! C0 From MK2! C0 From MK@! C1 From MKD! C2 From MK1! ;0 From MK2! ;0 From MK@! ;1 From MKD! ;2 For No2 2! From MK1! CC125 From MK2! CC125 From MK@! CA125 From MKD! C;125 From MK1! ;C125 From MK2! ;C125 From MK@! ;A125 From MKD! ;;125

For No2 @!

For No2 D!

Bence the a$tua CT is ).9) min0tone.

2( Cosumar SA Supply Chain

Calculate the A8erage Manu&acturing $ea+ 0ime! For No2 1! From MK1! C0 From MK2! C0 From MK@! C1 From MKD! C2 From MK1! C0 From MK2! C0 From MK@! C1 From MKD! C2 For No2 2! From MK1! 5C125 From MK2! 5C125 From MK@! 5A125 From MKD! 5;125 From MK1! 5C125 From MK2! 5C125 From MK@! 5A125 From MKD! 5;125

For No2 @!

For No2 D!

The a7erage "LT! the units o& the system spen+ +i&&erent times in the system1 Bence- the a8erage M$0 is 89.93 min1

)o, that the 2ottlenec( is at stage @-5-C-9 an+ MKD1 Le ,ill nee+ to impro8e the capacity o& all o& them in or+er to impro8e the capacity o& the system1 The ne* -ro$ess # o* +iagram *ith impro7ement on stage %4 84 54 1 an+ ":.

M1, 4 S1, 5 S2, 5 S3, 5 S5, 5 S6, 5

M2, 4

M1, 14 S7, S8,

M1, 4

M2, 7.77

M2, 4

M3, 5

M4, 5

%n this ne, process &lo, +iagram- ,e change+ the cycle times o& the 2ottlenec( stages1 As ,e remar(- at stage 10 ,e ha8e increase+ the capacity in the secon+ machine1 %t has no, a capacity o# 2.), tone0min ,hich is e9ui8alent to a cycle time o& 3.33 min 0tone1 %n the other 2ottlenec( stages- ,e ha8e change+ the cycle time ,ith 5 min/tone as it appears in S@-S5-SC-MKD1

22 Cosumar SA Supply Chain

Ana !sis o# impro7e+ pro$ess

At this stage- the 2ottlenec( o& the system 2ecomes Stage 1- 2- @- 5- C- A- ;- an+ 91 0his time i& ,e ,ant to increase the capacity o& the system- ,e ,ill nee+ to in8est on all these 2ottlenec(s in or+er to mo8e to the ne7t 2ottlenec( le8el that has a capacity o# 2.,8 tones0 s. 0hus- ,e nee+ to impro8e the capacity at each stage 2y a++ing 2.28tones0se$on+. Acc'r*ing t' t"e given *ata7 a new 8'5 enters t"e Stage ( every () sec'n*s. The S!stem impro7e+ 6antt Chart

'es$ription o# the 6antt $hart: Le notice that ,e ha8e a 2u&&er in the ne, system1 Moreo8er- the jo2 2 an+ D ,aits in the 2u&&er 1 min 2e&ore mo8ing to the machines MK@ an+ MKD1 Conse9uently- ,e assume that ,e ,ill (eep only the pre8ious impro8ement as a possi2le in8estment ,hich is the impro8ement on stage 91 For this reason- ,e nee+ to chec( 2oth the price o& the ne, machine an+ the )et %ncome o& Cosumar in or+er to (no, i& the in8estment is &easi2le!

Cosumar Net Income 2 !!: 5;1019 Million +e 3irham

23 Cosumar SA Supply Chain

Cost of t"e #ryer $ac"ine: .S O 9-999 ,hich is appro7imate to ;0 000 3hs

Cost o& the Machine! ;0 000 3hs 1 Pro+uction! 112 million tone/Pear1 Annual /e8enue! 5AA15 million MA31 /e8enue Per ton G D;1 MA31 3i&&erence in Pearly Capacity a&ter in8estment! 011CCC 0one/ min " 010A1D 0one/min G 010952 0one/min GH 010952 Q C0 Q 9 Q 511 G 2C 2C91D;; 0one /Pear1

*ain A&ter %n8estment! 2C 2C91D;; 0one /Pear Q D;1 MA3 G 12 C@5 C2@1A2; MA3

Pay2ac( Perio+! $ess than one Pear1

Reorder !oint and sa(ety stock:

Appro7imately- each year the +eman+ o& sugar in Morocco increases 2y 20000 tons,hich create a pro2lem o& &ailing to satis&y this increase in +eman+1 %n &act- Cosumar as a sugar monopoly in Morocco has to prepare its stoc( &or this (in+ o& &luctuation1 For instanceCosumar SA has to (eep a speci&ic 9uantity o& ra, material <mainly ra, sugar? in its sa&ety stoc( so that it can react easily an+ increase pro+uction ,hen an increase in +eman+ is &orecaste+ &or the &uture or happene+1

2/ Cosumar SA Supply Chain

One o& the issues that Cosumar SA su&&ers &rom is the issue concerning the amount o& ra, material nee+e+ 2ecause o& the lac( o& the accuracy o& the &orecast o& +eman+1 As ,e (no,- Cosumar can get only D5E o& ra, sugar &rom its re&ineries- 2ut the remaining 55E it has to import it &rom ra#il1 Cosumar SA nee+s a2out C50 000 tons per year o& ra, sugar &or the sugar pro+uctionso 2ase+ on some con+ucte+ estimations- here is our calculation &or the amount o& sa&ety stoc( an+ the reor+er point using these +ata!
T"e mean *eman* 4*95ar6 : 65))));3(( : 2)%).)32(5/ t'ns;*ay <ea* time 4<6 : (2 =ays st.*ev 4>*6 : /!0.((/3!6( t'ns;*ay ? 4service eve 6 : %5@ T"e c'rres#'n*ing 3 va ue .'r %5@ is1 3? : (.6// S'1 Safety stock = Z* *!" = #$$%&%'(%)$ Tons *eor"er point +*,-. = *+"/0ar. 1Z* *!" = #$(%%&)2''% Tons

25 Cosumar SA Supply Chain

26 Cosumar SA Supply Chain

From these results- ,e can conclu+e that in or+er to 2e a2le to satis&y the changing +eman+ o& Cosumar SAKs customers 2y the pro2a2ility o& 95E- Cosumar has to (eep a sa&ety stoc( o& ra, material o& appro7imately 2AA5155 tons o& ra, sugar- an+ it has to ma(e or+ers at

20 Cosumar SA Supply Chain

the reor+er point- ,hich means ,hen it has e7actly the amount o& 2A;5519@ tons o& ra, material in its in8entory1

Reco''endations:

%n conclusion- our recommen+ation is to 2uy a ne, +rying machine that ,ill increase the capacity o& the system1 0he in8estment is &easi2le since the company has enough yearly income an+ a goo+ pay2ac( perio+ that is less than one year1 Also Concerning the sa&ety stoc( capacity- 2ase+ on our analysis- ,e conclu+e+ that ,ith a pro2a2ility o& 95E- the sa&ety stoc( o& Cosumar shoul+ 2e appro7imately 2AA5155 tons o& ra, sugarJ also- the reor+er point is ,hen the company has 2A;5519@ tons o& ra, sugar in its in8entory stoc(1

Appen+i;:

2! Cosumar SA Supply Chain

PROCESSUS DE FABRICATION DU SUCRE BLANC
SUCRERIES DES DOUKKALA

R=$eption Bettera7e

Sto$kage et La7age

'=$oupage

Cossettes E;tra$tion -ressage et S=$hage -u pes

<us Brut

-r=$hau age Lait CaO

-ierre Ca $aire

Chau age Four > Chau; et Chau erie

-e ets

"aturation

Coke

)=reCar(onatation

CO,

)=re Fi tration

Boues )

Fi tration

,=meCar(onatation

E$umes

,=me Fi tration

Boues ,

'=$a $i#i$ation <us Epur= E7aporation Centra e Chau##erie

Sirop

Crista isation

Su$re B an$

"= asse

2% Cosumar SA Supply Chain

Figure : The +i##erent La!ers o# the Supp ! Chain

3) Cosumar SA Supply Chain

Figure : "anu#a$turing pro$ess

3( Cosumar SA Supply Chain

Re#eren$e: A(es2i- )1 <n1+1?1 &he structura! ad1ustment po!icy in agricu!ture in morocco1 /etrie8e+ &rom http!//,,,1uclou8ain12e/cps/ucl/+oc/ecru/+ocuments/0F5M@3191p+& Agence pour le +e8eloppement agricole1 <2009?1 3i!iere sucriere1 /etrie8e+ &rom http!//,,,1a+a1go81ma/plansRregionau7/&iliere"sucriere1php COS.MA/1 Annua! report 2*1*1 <2010?1 /etrie8e+ &rom http!//,,,1cosumar1co1ma 'l jaa&ari- P1 <2009? Cosumar %nternship /eport1 0angier- Morocco1 .ni8ersity A2+elmali( Assaa+i1 F%$%'/' S.C/%'/' <2009?1 Agence Pour $e 3e8eloppement Agricole1 /etrie8e+ Mai 09- 2012- &rom "tt#1;;www.a*a.g'v.ma;# ansAregi'naux;.i iere9
sucriere.#"#.

Billali et al1 <2011?1 Supply Chain Management o& Cosumar1 %&rane- Morocco1 Al A(ha,ayn .ni8ersity1 $eMatin1 <2010?1 %n+ustrie sucriSre ! Cosumar sKou8re +e nou8eau7 hori#ons1 /etrie8e+ &rom http!//,,,1jeunes+umaroc1com/MA2@@"%n+ustrie"sucriere"Cosumar"s" ou8reM1html