Operations Management Final Project

Embed Size (px)

Citation preview

  • 8/3/2019 Operations Management Final Project

    1/17

    Zafar Idrees Rice & Processing Plant

    Zafar Idris Rice & Processing Mills (Pvt.) Ltd. Okara

    Eexcutive Abstract

    Doctors Rice un-doubt one of the leading brand in the international market. Todayknown as Zafar Idris Rice Mills Processing Mills is sparkling legacy, was originally

    established by our respected father late Haji Ali Nawaz in Okara during early sixties.Now a day parboiled was prepared manually using conventional methods and the quality

    was not up to mark.

    In 1981 Dr. Capt. Zafar Iqbal completed MBBS from Allama Iqbal Medical CollegeLahore and then started his medical practice in Okara and also joins this rice mill.

    His continuous efforts have a result in being quality rice.

    Mrs. Shahnaz Zafar is a business graduate and 10 years milling experience. She hasprofessional expertise in Rice Milling and techniques for the expert quality production.

    Successful efforts of Mrs. Shahnaz Zafar Iqbal have given a good name of the company

    within the country and in international market as well.

    She ensures to serve her valued customer by keeping consistent and strict quality

    measures reliable and on time delivery on competitive price and take a very personalapproach to the products she represents.

    It is only because of the combine efforts of Dr. Capt Zafar Iqbal, Mrs. Shahnaz Zafar and

    Nadim Idris our professional team who work untired to convert this raw commodity intoa high quality food product. Our aim is to maintain the standard of our quality and tosatisfy our reputable clients. As per our buyers requirements we have variety of good

    products, to fulfill the demands of our customers.

    1

  • 8/3/2019 Operations Management Final Project

    2/17

    Zafar Idrees Rice & Processing Plant

    Introduction

    Their hard earned credibility of national and international level is because of combineefforts of Dr. Capt. Zafar Iqbal and Mrs. Shahnaz Zafar.

    All the process (paddy drying, husking) processing milling are out under the supervision

    of qualified, efficiently and experienced professionals.

    In 2003 a fully automatic parboiled plant and best of its kind was setup at Zafar Idrees

    Rice & processing mills. There hygienically pure extra long grain thoroughly cleaned and

    hygienically produce rice, capacity 40,000 Tons per annum.

    Management strongly believes in key role of technology in producing hygienic and goodquality product on consistent basis the processing plant installed at Zafar Idrees Rice &

    Processing mills Okara was supplied by world renowned Buhler Gmbh (German and

    Swiss) consisting of modern and sophisticated machines.

    Performance of these machines is ranked amongst very beat in the world. With an annualcapacity of 80,000 Tons (10 Ton/hr) the plant performs with remarkable finess and

    accuracy that other find hard to match.

    Buhler Gmbh is automatic name on food processing industry. High level of automation

    and well thought plant layout ensure no human contact from husking to packing stage,accurate grading excellent finishing no breaking and hairline cracks in final product.

    So our products have been authenticated for quality and exquisite taste by the nationals of

    many countries.

    An exquisitely designed project equipped with the most innovative, state of the art andquality sophisticated and modern technology is in operation.

    Exclusive features of the unit are:1. Paddy and rice storage warehouses..

    2. Most modern fully automatic parboiled plant ensuring yield of 40,000 tons of rice perannum.

    3. Milling & processing capacity falls 10 tons/hr around 80,000 tons per annum.

    4. Rice processing plant installed at here was supplied by world renowned Buhler

    (German, Swiss,

    Corporate Organization structure

    Their corporate and managerial hierarchy is given as below.

    Dr .Capt. Zafar Iqbal (Chief Executive), Mrs. Shahnaz Zafar (Managing Director),

    and Nadim ldris (Director).

    2

  • 8/3/2019 Operations Management Final Project

    3/17

    Zafar Idrees Rice & Processing Plant

    Vision and Mission

    Zafar Idris Rice and Processing Mills Pvt. Ltd. Has strongly emphasized on Hygiene,

    quality standards and nutritional rice. Their mission is, Our prime ambition has to beento achieve recognition for quality of Pakistani rice at world level.

    Our Aim is to:

    Provide quality rice most hygienic conditions.

    No compromise on quality.

    Buyers satisfaction and commitment honored.

    Latest and modern technology.

    Competitive Advantage

    Their competitive advantage is due to low cost leadership, differentiation and focus baseson latest technology, highly innovative, and efficient management and committed labor.

    They are strongly focused on both national and international market needs and following

    all new trends by producing quality rice to delight their customers.

    Products

    Their product range covers all the superior varieties of rice from the Punjab.

    Long Grain Super Basmati/Parboiled White.

    Extra Long Grain 1121/ Parboiled White.

    Long Rain Basmati 385. Parboiled/ White.

    Non Basmati 386 IRRI6 IRRI9 IRRI Fine Suprii.

    Carefully selected right from the farmers and processed under ISO9001 and HACCP

    certified Quality Management System where international quality and sanitationstandards are strictly adhered to.

    Nutrition Information and Ingredients (Design Of Products & Services)

    Zafar Mills has a good R & D based highly motivated, innovative and team based culture

    to design and manufacture their rice. The standard size of their rice is in-between 1.8 to1.3 mm based on robust design.

    Energy ---------------- -----------365.04 Calories CARBOHYDRATE---------------------82.75g

    PROTEIN-------------------------------------8.5g

    FAT (Which are saturated------------0.35g

    3

  • 8/3/2019 Operations Management Final Project

    4/17

    Zafar Idrees Rice & Processing Plant

    CHOLESTEROL------------------------Not detected

    CALCIUM --------------------------------- 9 gm

    Riboflavin--------------------------------- ---.05 mgs

    Thiamine------------------------------.021 mgs

    Fiber------------------------------------.04 g

    Niacin-----------------------------------3.8 mgs Iron--------------------------------------4 mg

    Parboiled Rice

    Parboiled is a unique hydrothermal process that enhances the nutritive properties of rice.To produce parboiled rice paddy has been boiled and stream heated before milling for a

    short time. During this process nutrients contained into the outer grain migrated to the

    grains centre. It also drives thiamine, Vitamins, Riboflavin Niacin and minerals from the

    outer grain of paddy into the centre grain called endosperm. So the parboiled rice isnutritional superior to highly mille raw rice.

    After boiling process the paddy is dried milled and polished by a fully automatic plant.

    During process due to starch gelatinization the parboiled rice is harder and has a higher

    resistance against insects and has a long storage life. Because of hydrothermal process itenhances the nutritive properties and has lower digestive values.

    It has better cooking properties the grain are loose and will not stick together by the

    consumers. Thats why healthy conscious generation is shifting sharply to parboiled ricefrom raw rice. Parboiled is a unique hydrothermal process is which nutrients contained

    into the outer grain migrated to the grains centre. So parboiled rice has added thiamine,

    Vitamins, Riboflavin, Niacin and minerals these nutrients persist even after washing &

    soaking prior to cooking.

    International Strategy

    Among Global strategy options Zafar Idris is following internation strategy cause of

    export of their quality rice to Middle East, European Countries, Canada, and Iran. This is

    based on low local Responsiveness and Low cost reduction considerations.

    Layout Strategy

    Description of Rice Milling Operation:

    Paddy in its raw form cannot be consumed by human beings. It needs to be suitably

    processed for obtaining rice. Rice milling is the process, which helps in removal of hulls

    and barns from paddy grains to produce polished rice. Rice forms the basic primaryprocessed product obtained from paddy and this is further processed for obtaining various

    secondary and tertiary products.

    4

  • 8/3/2019 Operations Management Final Project

    5/17

    Zafar Idrees Rice & Processing Plant

    The basic rice milling processes consist of:

    Process Definition

    1. Pre Cleaning: Removing all impurities and unfilled grains from paddy

    2. De-stoning: Separating small stones from paddy

    3. Parboiling (Optional): Helps in improving the nutritional quality by gelatinization ofstarch inside the rice grain. It improves the milling recovery percent during deshelling

    and polishing / whitening operation

    4. Husking: Removing husk from paddy

    5. Husk Aspiration: Separating the husk from brown rice/ unhusked paddy

    6. Paddy Separation: Separating the unhusked paddy from brown rice

    7. Whitening: Removing all or part of the bran layer and germ from brown rice

    8. Polishing: Improving the appearance of milled rice by removing the remaining bran

    particles and by polishing the exterior of the milled kernel

    9. Length Grading: Separating small and large brokens from head rice

    10. Blending: Mixing head rice with predetermined amount of brokens, as required by thecustomer

    11. Weighing and bagging : Preparing the milled rice for transport to the customer

    The flow diagram of the various unit operations is as follows:

    5

  • 8/3/2019 Operations Management Final Project

    6/17

    Zafar Idrees Rice & Processing Plant

    6

  • 8/3/2019 Operations Management Final Project

    7/17

    Zafar Idrees Rice & Processing Plant

    Envirnomental Background

    PEST ANALYSIS

    Political: Pakistan is facing political instability, Government is lacking good industrial

    policies to help and promote big industries and SMES, and moreover, high taxes nosubsidiaries, and not effective foreign policies that have negative impact on rice industry

    of Pakistan.

    Economic: Pakistan GDP has gone down to 4.1 % in 2009-2010, per capital incomehas decreased also, Unemployment rate is accelerating, inflation is very high, poverty

    line has been increased that is showing a bad impact on rice industry.

    Social: Pakistan has gone through lots of social and demographic changes since lastdecade; people are becoming very health conscious, focused on low diet food with highcalories and good nutritions and vitamins. Social trends of Pakistan are based on the

    following.

    Time: People of the Pakistan have time to cook and enjoy various deliciousdishes of rice on daily basis.

    Money: Majority of the people of Pakistan have money to buy and eat rice even

    low class, middle class and upper middle class based on the quantity they

    purchase.

    Energy: People of the Pakistan are very energetic and fun loving, they want to

    consume rice and get more energy.

    Technological: Following are the technological factors that impact the rice industrygiven as below.

    Raw Material: The increased prices of raw material due to global economic

    recession and inflation have a negative and bad impact on rice industry and cost

    of production has been increased.

    Energy: Pakistan is going through energy crisis now days such as (shortage of

    Electricity, Suigas, and CNG), High prices of patrol, diesel, kerosene oil, and

    furnace oil which has bad impact on rice industry and increased their cost ofproduction.

    Technology: There has been huge improvement in technology in Pakistan and

    through out the world which can have a positive impact on rice industry,improved or high quality of rice, high output and low production cost.

    Information and telecommunication: Huge improvement in Pakistan and

    through out the world in the telecommunication and information system and itsavailability on competitive price has a positive impact on better supply chain of

    rice industry and reduced the cost of production.

    Biomedicine: Since last decade there has been huge improvement in

    pharmaceutical sector based upon innovation and creativity. Biomedicine has

    7

  • 8/3/2019 Operations Management Final Project

    8/17

    Zafar Idrees Rice & Processing Plant

    other related products which are directly or indirectly used in the production of

    rice and showing a positive impact on rice industry and keeping the cost of

    production down.

    Rice Industry Analysis (Porters Five Forces)

    Porter Five Forces

    Bargaining Power of Buyer.

    Determinants Defining Question Assess the power of Buyers

    Circle one of thefollowing.

    1 = low, 5 = high, or N/A

    if it doesnt apply to your

    industry.

    Concentration Are the buyers fragmented of highly concentrated? If

    they are few concentrated then buyer bargaining poweris typically high,

    1 2 3 4 5N/A

    Product Costversus Total

    Purchases

    Does your product buyers purchase represent asignificant fraction of the buyers cost? If so, buyer

    bargaining power is typically high.

    1 2 3 4 5N/A

    Product

    Differentiation

    Is the buyer product or service a commodity? If the

    products are standard or undifferentiated, buyerstypically have high bargaining power.

    1 2 3 4 5N/A

    Switching Costs Are switching cost low or High? If buyers face few

    switching cost their bargaining cost is typically High.1 2 3 4 5

    N/A

    Profits Do buyers earn low profit? If so they are typically more

    likely to bargain hard.1 2 3 4 5

    N/A

    8

  • 8/3/2019 Operations Management Final Project

    9/17

    Zafar Idrees Rice & Processing Plant

    BackwardIntegration

    Can they make what you make themselves? If so thethreat is typically high.

    1 2 3 4 5N/A

    Impact on

    Quality/

    Performance

    Is the product you offer important to the quality of the

    buyers product or services? If not buyer power

    typically high.

    1 2 3 4 5N/A

    Buyers

    Information

    Does the buyer have complete information on the

    product he may purchase? If so buyer power typicallyhigh.

    1 2 3 4 5N/A

    1-2s, 3-1s, 6-4s

    So the bargaining power of buyer is (High)

    The above factors show that bargaining power of buyer is high because in this industry

    buyer are fragmented. Buyers are in three segments of rice industry, local market,

    national market and export market. Product differentiation is almost none all aremanufacturing rice but their product line varies from company to company. Switching

    cost of buyers is very low because there is hundreds of company producing rice at

    competitive prices so buyer can switch easily. As there are 3 main buyer segment of thisproduct so backward integration can also be done that way they can be self-supplier oftheir raw material and husk and have more bargaining power over their suppliers and

    create a completive advantage based on low cost.. Now a day customer is more aware of

    what he is purchasing so buyer information about the product are very high.

    Bargaining power of suppliers.

    Determinants Defining Question Assess the power of

    SuppliersCircle one of the

    following.1 = low, 5 = high, or N/A

    if it doesnt apply to your

    industry.

    Concentration Are your supplier fragmented or highlyconcentrated? If an industry is dominated by a

    1 2 3 4 5N/A

    9

  • 8/3/2019 Operations Management Final Project

    10/17

    Zafar Idrees Rice & Processing Plant

    few companies the suppliers are typicallypowerful.

    Presences of

    Substitute inputs

    Are there any substitutes for your supplier

    products? If not supplier are typicallypowerful.

    1 2 3 4 5N/A

    ProductDifferentiation

    Product is standard and undifferentiated.Suppliers with differentiated product typically

    have more bargaining power, then supplierselling commodities.

    1 2 3 4 5N/A

    Switching Costs How costly is it for you to switch from

    suppliers product? If switching cost is high

    suppliers are typically more powerful.

    1 2 3 4 5N/A

    Importance

    Relative toCustomer.

    Is your industry an important customer the

    supplier group? If not supplier are typicallypowerful.

    1 2 3 4 5N/A

    Forward

    Integration

    Can the supplier produce the product you

    make? Is their threat of forward integration? If

    so supplier is typically powerful.

    1 2 3 4 5N/A

    Impact onQuality/

    Performance

    Is your supplier product essential to thequality or performance of your business? If so

    suppliers are typically powerful.

    1 2 3 4 5N/A

    4-2s, 1-3, 2-4s.

    So the bargaining power of supplier is (low).

    Above factor of suppliers shows that suppliers have low bargaining power in this

    industry. Numbers of supplier are fragmented in this industry and there is no substituteavailable for the supplier product. Suppliers selling commodities there are no product

    differentiation in supplier product. Switching cost is low for the buyers. Rice Industry is

    the fastest growing industry so the industry is an important customer for the supplier

    group. Huge R&D and investment is required in this industry so forward integration isnot easy and not possible; company may have to bear huge loss because brand identity is

    also an important issue.

    10

  • 8/3/2019 Operations Management Final Project

    11/17

    Zafar Idrees Rice & Processing Plant

    Intensity of Rivalry

    Determinants Defining Question Assess the intensity of

    Rivalry.Circle one of the following.1 = low, 5 = high, or N/A if it

    doesnt apply to your industry.

    Industry growth How slowly or quickly is the industry

    growing? If it is slow growing industrythere is likely to be a more intense fight

    among rivals for market share.

    1 2 3 4 5N/A

    Fixed Cost Does your business have a high fixed cost?If so rivals will typically be tempted to cut

    price to ensure sales, thus posing a

    significant threat.

    1 2 3 4 5N/A

    Product

    Differentiation

    Is your product commodity? The closer the

    product is to being a commodity the higher

    intensity of rivalry.

    1 2 3 4 5N/A

    Switching Costs How costly is it for your buyer to switch

    between providers? Low switching costtypically increases rivalry.

    1 2 3 4 5N/A

    IntermittentOvercapacity

    How frequently is there a problem ofexcess capacity in your industry? Over

    capacity often lead to price cutting. If so

    there is typically a threat.

    1 2 3 4 5 N/A

    Brand Identity Is branding critical for your Rivalssuccess? Brand identification by buyer

    reduces the threat of rivals.

    1 2 3 4 5N/A

    Concentrationand balance

    Are there a large number of firms of equalsize and power, all chasing after the same

    customer? If so rivalry is typically intense.

    1 2 3 4 5

    N/A

    Diversity ofcompetitors

    Are there competitors with differentstrategies and frame of reference? When

    competitors are diverse it is more difficult

    to establish the rules of game so the threat

    form competitor is greater.

    1 2 3 4 5N/A

    Exit Barrier Are exit barrier are low or high? High exit 1 2 3 4 5

    11

  • 8/3/2019 Operations Management Final Project

    12/17

    Zafar Idrees Rice & Processing Plant

    barriers make it costly to abandon aproduct.

    N/A

    1-2s, 7-4s

    So the intensity if rivalry are (high)

    The factors select to identify the intensity of rivalry show that intensity of rivalry is highin this industry. The demand of rice is growing every year because the rice is substitute

    also among commodities and food items which are necessity of life but the rice industry

    is at is maturity because they have many big players in the industry and holding themaximum market share. Fixed costs are very high in this industry. Products have

    commodities and switching cost is low. There a large number of firms of equal size andpower and all chasing the same customers. Exit barriers are also high because specialized

    assets used in tires manufacturing cannot be easily sold.

    Threat of New Entrants.

    Determinants Defining Question Assess the power of BuyersCircle one of the following.

    1 = low, 5 = high, or N/A if itdoesnt apply to your industry.

    Economies ofScale and

    experience

    Does successful entry require thatcompanies have significant economies of

    scale or experience? Barriers to entry are

    typically high when an aspiring company

    must cut cost in order to compete in a

    large scale and /or experienced market.

    1 2 3 4 5N/A

    Brand Identity Do new companies need to spend heavily

    on brand identification? Brandidentification is typically a barrier to

    entry.

    1 2 3 4 5N/A

    Product

    Differentiation

    Do new entrants need to differentiate by

    spending heavily on advertising, customer

    services or product differences to over

    come existing customer loyalty? Productdifferentiation is typically barrier to entry.

    1 2 3 4 5N/A

    Switching Costs Does the buyer have to pay to switch fromone supplier product to another? High

    switching cost is typically barrier to entry.

    1 2 3 4 5N/A

    Capital Required Does the new company need to invest

    large financial resources? Huge capitalrequirement are typically barrier to entry.

    1 2 3 4 5N/A

    12

  • 8/3/2019 Operations Management Final Project

    13/17

    Zafar Idrees Rice & Processing Plant

    Access toDistribution

    Does the new comer have access todistribution channel for product or

    services? Difficult access can typically bea high barrier to entry.

    1 2 3 4 5N/A

    Cost advantage Established companies have costadvantages over new rivals because they

    have already obtained proprietary producttechnology, access to raw materials etc.

    Such cost advantages are typically a

    barrier to entry for new entrants.

    1 2 3 4 5

    N/A

    Government

    policies

    Government policies can help to preserve

    or limit competition. Policies can typically

    create a barrier to entry.

    1 2 3 4 5

    N/A

    Expected

    Retaliation

    New entrants may decide not to enter a

    new market if existing firms are likely toretaliate. Established firms may have a

    history of retaliating, resources to fight

    back a strong commitment to the industry.Also if the industry is growing slow, theymay retaliate against new players who

    would threaten sales growth

    1 2 3 4 5N/A

    7-2s, 1-4s

    So the threat of new entrant is (low)

    Above new entrant factors show that the threat of new entrant is low in this industry.Successful entry requires that companies have significant economies of scale or experience.

    Access to distribution is also another problem for the new comer in mature market.Established companies have cost advantages over new rivals because they have already

    obtained proprietary product technology, access to raw materials etc. New entrants may

    decide not to enter a new market if existing firms are likely to retaliate. Established firms

    may have a history of retaliating, resources to fight back a strong commitment to the industry

    Threat of SubstitutionDeterminants Defining Question Rate the threat.Circle one of thefollowing.

    1 = low, 5 = high, or N/A

    if it doesnt apply to your

    industry.

    Price

    performance

    Does the substitute offer a better price

    performance? A substitute product or1 2 3 4 5

    13

  • 8/3/2019 Operations Management Final Project

    14/17

    Zafar Idrees Rice & Processing Plant

    service is a threat to competition when itoffers a higher performance at a given price

    or the same performance at lower price.

    N/A

    Switching Cost Is it costly for buyer to switch to the

    substitute product or service? When buyersmust may more to switch a substitute, the

    threat of substitute is low.

    1 2 3 4 5 N/A

    4-1, 2-1

    So the threat of substitute is (Moderate)

    Based on above mentioned factors the threat of substitute is moderate in rice industry.

    Porter findings and result:After porter analysis we can say that the industry is neither unattractive nor attractive it ismoderate industry because buying power of buyer and intensity of rivalry is high in this

    industry which is not attractive but on the other hand power of supplier and threat of new

    entrant is low which shows attraction in the industry, substitute are not available

    currently.1-2s, 3-1s, 6-4sSo the bargaining power of buyer is (High)

    4-2s, 1-3, 2-4s.

    So the bargaining power of supplier is (low).

    1-2s, 7-4s

    So the intensity if rivalry are (high)

    7-2s, 1-4s

    So the threat of new entrant is (low)

    4-1, 2-1

    So the threat of substitute is (Moderate )

    SWOT Analysis

    Strength: Their main strength is innovative and efficient management highly trainedand committed labor force, latest technology, R & D, and organizational culture based onteam focused culture.

    Weakness: Their weakness is based on weak financial positions and lack of gooddistribution network nation wide. They took heavy loans from banks to expand their

    utility and import latest technology.

    Opportunity: Their main opportunity is based on increased population of Pakistan,opening of multinational restaurants, increased consumption of quality rice which is

    favoring their business growth. Also Pakistani rice is well known and well reputed in theworld market that also shows good opportunity for our rice industry.

    Threat: Inflation, new entrants in rice processing industry, energy crisis( Loadshedding and Sui Gas shortage), domestic violence and terrorism, and political

    instability of Pakistan.

    14

  • 8/3/2019 Operations Management Final Project

    15/17

    Zafar Idrees Rice & Processing Plant

    Ogrganizational Anlaysis

    International Strategy

    Among Global strategy options Zafar Idris is following internation strategy cause of

    export of their quality rice to Middle East, European Countries, Canada, and Iran. This isbased on low local Responsiveness and Low cost reduction considerations.

    Activities

    Zafar Idris Mills is performing tthree types of activities.

    1. Manufacturing rice for local Market2. Further processing as per customer demand of rice.

    3. Processing manufactured rice and extra polishing for export.

    Problems

    Based on our visit and discussion with Capt. Zafar Iqbal (CEO) of Zafar Mills and

    production supervisor of the mills we have identified the following problems through outtheir supply chain.

    1. They are facing energy shortages and crisis due to shortfall in the supply of

    electricity and sui gas.

    2. Their Sheller capacity is 40,000 tons/year, and processing plant capacity is80,000, so they are 40,000 tons/year behind.

    3. They are have few warehouses to hold raw material, and processed rice.

    4. They are lacking good distribution network.5. They dont have good advertisement programs.

    6. They face shortages and have to pay high prices for paddy because they are

    dependent on external suppliers.

    Recommendations

    Upon our analysis of Zafar Mills Pvt. Ltd as an organization and their activities regarding

    their business, we have the following recommendations.

    1. They should install their own power generation plant so they can avoid

    interruptions and cycle time wastage.2. They should install a new Sheller plant that can produce up to 50,000 tons/ year to

    match with the processing capacity.

    3. They should build new warehouses to hold their processed rice and raw materialto avoid wastages and losses.

    4. They should go for vertical backward and vertical forward integration.

    15

  • 8/3/2019 Operations Management Final Project

    16/17

    Zafar Idrees Rice & Processing Plant

    5. They should focus on local and national efficient advertisement to make more

    awareness to consumers and dealers about their quality rice.

    Summary

    We visited Zafar Idris Mills Pvt. Ltd. Okara. as a group and had a discussion withMrs. Shahnaz Zafar ( Managing Director ). She gave us brief detail information about

    their Mill, their rice manufacturing processes and their business strategies. Their

    location is based on their proximity to customers, competitors, skilled labor and rawmaterial. They are producing 5 types of rice, differentiated based on dynamic needs.

    They have emphasized over the quality, and environmental standards. They are

    following ISO9000, and ISO14000.

    They are focused on innovation and quality to meet the dynamic needs and have adeveloped and modern R & D (lab) for rice manufacturing. They are focused on

    robust design during processing of rice so they can avoid minor variations in the size

    of their rice. They are using computer software also during their manufacturing ofrice. They are very efficient in the production of Parboiled rice and which is creating

    competitive edge for them.

    Zafar Mills is serving three three segments of market such as local market ( Okara),

    national market, and international market ( Export). They are focused on high qualityand cost reduction as well as. They are using latest technology Buhler for the

    polishing of rice and trying to achieve 6 sigma.

    Zafar Mills is following product focus strategy because they are producing high

    volume and low variety product. In this process there is high fixed cost, high

    utilization of their machinery and low variable cost.

    Zafar Mills is having 5 Acre area in total; they always buy raw material and paddy in

    advance and stock it well in their warehouses to avoid shortages of paddy and high

    prices of paddy in season.

    Zafar Mills Pvt. Ltd. is following international strategy as well as because they are

    exporting rice to foreign countries such as middle east.Infuture they are focusing to

    expand their business by buliding a new rice sheller in Sahiwal area.

    They are always doing well ahead stocking before the rice processing season starts

    and they are not using any inventory management model such as POQ, EOQ, orDisount Quantity.

    16

  • 8/3/2019 Operations Management Final Project

    17/17

    Zafar Idrees Rice & Processing Plant

    17