Cosumar Report

8/12/2019 Cosumar Report

1/31

Cosumar SA Supply ChainOperations 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


2/31


3/31

Cosumar SA Supply Chain

3

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.A- S.)A'$ an+ S.CAFO

%n our report- ,e ,ill &ocus our analysis on the Cosumar SA- ,hich is locate+ in Casalanca

an+ it inclu+es the re&ineries o& 3ou((ala! e&inery si+i ennour an+ e&inery 4emamra he

Cosumar SA pro+uces! $oa& sugar- granulate+ sugar- the ingot un+er the ran+ 'nmer6 an+

Molasses &or e7port6 A&ter e8aluation o& the current supply chain strategy a+opte+ y the

company- ,e con+uct a process analysis metho+ in ,hich ,e succee+ to increase the capacity

y recommen+ing the purchase o& a ne, +rying machine that ,ill ensure an increase o& the

pro+uction capacity 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+


4/31


/

Overview:

COSUMAR is the first Moroccan company in the sugar industry in Morocco. In

1929, a refinery in Casa!anca "as created under the symo! COSUMA, y Saint #ouis

de Marsei!!e. In 19$%, &he Moroccan go'ernment ac(uires )*+ stae of the company. In

19-), OA taes contro! of ))+ the capita! Cosumar "hich is no" !isted on

the Casa!anca Stoc /0change. COS.MA +e8elope+ its e7pertise in three main usiness

segments! re&ining- e7traction an+ pac(aging o& sugar in 8arious &orms

he *roup COS.MA continues to+ay its gro,th y mo+erni#ing its pro+uction- y

impro8ing its competiti8eness- y supporting the +e8elopment o& the .pstream Agricultural

an+ continuing to uil+ on the uality o& its pro+ucts %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 responsiilities o& its lea+ership

In 2**), Cosumar ecame the maor p!ayer in the sugar industry since its ac(uisition

of SURAC, SU&A, SUA/# and SUCRA3OR, un+er the pri8ati#ation process le+ y the

State Actually- COS.MA engage+ in continuing the +e8elopment o& the ,hole sugar

in+ustry an+ the upgra+ing o& the .pstream Agricultural- y ene&iting ;0-000&arming

&amilies that consi+er the pro+uction o& sugar eet an+ sugar cane as their main acti8ity


5/31


5

Mission:

4COSUMAR is specia!i5ed in the production, pacaging and mareting of se'era!

sugar forms6 !oaf, !ump, cue 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 susidiaries of COSUMAR6 COSUMAR SA, SURAC, SUA/#, SU&A and

SUCRA3OR are esta!ished a!! o'er the Moroccan 8ingdom.

Vision:

:e are !ooing 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 Casalanca an+

3ou((ala s,eets- an+ pro+uces! rea+ sugar- granulate+- the ingot an+ the piece an+ the ran+

'nmer6

SURACis 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! 8asah. SURAC has produced 9;,


6/31


6

'$$A6 %t has three pro+uction units


7/31


8/31


!

COS.MA *roup has set up a esearch 3e8elopment- ,hose commission contriutes to

enhancing ,or( rate an+ commo+ity attriutes- &eatures an+ con+itions

GHAnticipating mar(et lierali#ation an+ the intro+uction o& competition- these

impro8ements ,ent notaly through the e7pansion o& current systems &or the manu&acture o&

sugar-

he i+ealism o& pro+uction &acilities an+ impro8e+ ,ater conser8ation an+ energy an+ the

mar(et initiate contemporary goo+s to con&ront customer &orecasts

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&ormance Many transactions ha8e

een reali#e+ inclu+ing!

GH %mpro8ement o& the &arication amplitu+e o& granulate+ sugar le+ to @000 tons per +ay

GH e7pansion o& the insurance o& the &air use o& scope o& ul( ,hite sugar

GH Farication o& t,o ualities o& ,hite sugar

GH Progressi8e an+ continuous restore o& physical &arication o& Sugar $oa& y automate+

shape or con&iguration


9/31


%

COS.MA +istriutes its pro+uction o& re&ine+ sugar to 52E o&

the granulate+ sugar an+ aout @55E o& the sugar template an+ 125E o& the sugar cues

COS.MA also +e+icates the pro+uction o& sugar &or in+ustrial use %t pro+uces

other pro+ucts calle+ co"pro+ucts o& sugar manu&acturing he pulp +ehy+rate+ &orm

o& pellets- treatment outcome an+ is ,i+ely use+ as ra, material &or animal &ee+ an+

li8estoc( in particular here is also MolassesJ a ypro+uct o& the last re&ining ra, sugar is

use+ as sustrate &or the pro+uction o& yeast

SWOT ANALYSIS:

Strengths:

COS.MA has een the lea+ing company &or ;D years an+ it has a 100E

mar(et share ,hich means there is no ri8alry in the mar(et

Weaknesses:

Since COS.MA cannot pre+ict the ,eather- this a&&ects the amount o&

pro+uction o& sugar eet an+ sugar cane

Opportunities:

he +eman+ o& sugar increases e8ery year y 20000 tons per year o& sugar

An+ the a8erage Moroccan citi#en consumes an amount o& @5 (g/year

he go8ernment protects the agricultural an+ the sugar in+ustry since they

contriute in increasing the national *3P ,hich represents an entry arrier to

potential competitors


10/31


()

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+

supply

he ,eather represents a threat to COS.MA since gro,ing sugar eet an+

sugar canes rely on a huge amount o& ,ater an+ in case o& +rought Cosumar

may &ace a shortage o& pro+uction

Te Su!!"y Cain:

I. Supp! Chain La!ers:

1? Suppiers!

he 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 process

%& 'istri(ution:

Cosumar SA- chooses the outsourcing as a strategy to manage the transportation process

D? Cients!


11/31


((

he main CosumarKs customers are!

Lholesalers

Supermar(ets

%n+ustrial customers

Su!!"y Cain #rocess:

)& Ra* Sugar

Cosumar- in or+er to satis&y the +eman+ o& sugar- ases its pro+uction on the local an+

importe+ ra, sugar

Lo$a ra* sugar:

he company pro+uces the ra, sugar &rom the e7tracte+ eet an+ cane- precisely &rom

the region o& 3ou((ala he company has signe+ contracts ,ith &armers in this region in

or+er to pro8i+e Si+i ennour an+ 4emamra &actories ,ith the eet an+ cane that ,ill e

trans&orme+ into ra, sugar in these &actories- then into ,hite sugar that itsel& ,ill e

trans&orme+ into &inishe+ pro+ucts


12/31


(2

A&ter collecting the eet an+ cane &rom the &arms- they are uic(ly transporte+ y

truc(s to &actory in ,hich they ,ill e store+

he secon+ step is ,ashing the eet in or+er to get ri+ o& all the +usts

A&ter cutting the eet y speciali#e+ machines- using a+8ance+ +i&&usion machines the

sugar +isperse &rom the eet an+ cane

he ne7t process is the parching- ,hich is reali#e+ in machines that e8aporate

appro7imately 22 tons o& ,ater per hour

A&ter a uic( step o& puri&ication- there is the crystalli#ation step- ,hich is the

e7traction o& compact sugar &rom the liui+

An+ &inal step is the +rying an+ storage step he storage shoul+ e un+er speci&ic

con+itioning

Importe+ Ra* Sugar:

ra#il supplie+ practically 100 percent o& Morocco:s importe+ sugar


13/31


(3

A&ter re&ining the ra, sugar into ,hite sugar- the ,hite sugar is con8erte+ into &inal

mar(etale pro+ucts ase+ on a parallel process that allo,s the pro+uction o& the &inal

mar(etale pro+ucts at the same time- ,hich are!

2=g $oa& Sugar

*ranulate+ Sugar

$ump Sugar

Molasses! ,hich is the syrup remaining &rom processing eet or cane- an+ Cosumar

e7ports this ypro+uct to the international mar(et

Pellets! &or animal &oo+- an+ it is generally gi8ing to the eet &armers

& -a$kaging an+ 'istri(ution:

he &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 customers

Cosumar is counting mainly in its transportation on e7ternal companiesJ ,hich means

they are outsourcing the transportation ut the prolem is that sometimes there are some

incomplete shipments or +elaye+ ones Sometimes the contractors +onKt meet Cosumar

e7pectations an+ there&ore cause many prolems

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


14/31


(/

( 2 3 /

"

5

#rocess $"o% &iagra':

Ana"ysis o( te !rocess:

Suppliers:

-aw sugar1 r'm

Brai W"ite sugar1

r'm Si*i Benn'uran* emamra

Transportatio

nExterna

c'm#anies

Manufacturin

g:

$'sumar SA4$asaanca

Warehouses

St'rages in

w"ic" t"e ina

#r'*ucts arest're*

Customers:

W"'esaers7

su#ermarkets7

in*ustriacust'mers

Transportati

onExterna

c'm#anies


15/31


(5

C!$e Time O# The Stages Capa$it! O# the Stages

S1G 5 minutes /1 tonne G 5

minutes/tonne

S1G 1 tonne / 5 minute G 02 tones/

minute

S2G 5 minutes / 1 tonne G 5 minute

/tonne

S2G 1 tonne / 5 minuteG 02 tones/

minute

S@G minutes / 1 tonne G min/tonne S@G 1 tonne / minG 01 tones/ min

M1G D min / 1tonne G D min / tones-

M2G D min / 1tonne G D min / tones-

thus SD G 2 min /tones

M1G 1 tonne / D min G 025 tones/ min-


thus SD G 025 025 G 05 tones/ min

S5G min / 1 tonne G min /tonne S5G 1 tonne / min G 01 tones/ min

SG min / 1 tonne G min /tonne SG 1 tonne / min G 01 tones/ min

SG 5 secon+s / 1 tonne G 5 min /tonne SG 1 tonne / 5 s G 02 tones/ min

S;G5 min / 1 tonne G 5 min /tonne S;G 1 tonne / 5 min G 02 tones/ min

S9G 1D min / 1 tonne / ) min 0tonne S1/ ) tonne 0 )min/ 2.23) tones0 min

MK1G D min / 1tonne G D min/ tones-

MK2G D min / 1tonne G D min/ tones-

MK@G 5 min / 1tonne G 5 min/ tones-

MKDG min / 1tonne G min/ tones-

MK1G 1 tonne / D min G 025 tones/min-

MK2G 1 tonne / D min G 025 tones/min-

MK@G 1 tonne / 5 min G 020 tones/min-

MKDG 1 tonne / min G 01

tones/min-

From the ao8e calculations- ,e conclu+e that the ottlenec( stage is S9 ecause it has

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

min 0tonne


16/31


(6

Conseuently- the process capacity is 2.23) tones0 min An+-the Cycle ime o& the

process is ) min0 tones.

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

%& ,e ,ant to increase the capacity o& the process ,e shoul+ in8est on a machine that

,ill e a++e+ at the ottlenec( station S9 his solution ,ill help increase the capacity

o& the machine an+ increase the total capacity o& the process he least ne, capacity

shoul+ e 01 tones/ min- in or+er to mo8e the ottlenec( to station @- 5- an+ 10

that all ha8e the same capacity a(ing 7 to e the cycle time o& the ne, machine!

Capacity G


17/31


(0

'es$ription o# The 6antt $hart :

he *antt chart sho,s the process since +uring the eight &irst stages the process mo8es

smoothly ,ith i+le time &or the eight machines Lhen ,e arri8e at stage 9- ,e remar( that

jos 2- @ an+ D ,ait in a u&&er e&ore mo8ing to the machine at Stage 9 No 2 ,aits D min- jo

@ ,aits ; mine&ore mo8ing to stage 9 an+ jo D ,aits 12 mine&ore mo8ing to the ne7t stage

,hich is 9 Finally- all the jos are +i8i+e+ into D to go to MK1- MK2- MK@ an+ MKD

)o, ,e ,ill +etermine the actual cycle time o& the process! A unit comes out o& the

system at times!

For No 1! From MK1! 0 For No 2! From MK1! DFrom MK2! 0 From MK2! DFrom MK@! 1 From MK@! 5From MKD! 2 From MKD!

For No @! From MK1! ;; For No D! From MK1! 102From MK2! ;; From MK2! 102From MK@! ;9 From MK@! 10@From MKD! 90 From MKD! 10D


18/31


(!

Bence the a$tua CTis %.) min0tone.

Calculate the A8erage Manu&acturing $ea+ ime!

For No 1! From MK1! 0min For No 2! From MK1! D"10G DminFrom MK2! 0min From MK2! D"10G DminFrom MK@! 1min From MK@! 5"10G 5minFrom MKD! 2min From MKD! "10G min

For No @! From MK1! ; For No D! From MK1! 2From MK2! ; From MK2! 2From MK@! 9 From MK@! @From MKD! 0 From MKD! D

The a7erage "LT! the units o& the system spen+ +i&&erent times in the system Bence- thea8erage M$ is 55.38 minutes

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

has a capacity o& 009 tones/minan+ a cycle time o& 1025min/tones ,hich ,ill e

place+ in parallel ,ith the machine e7isting at the stage 9 that is calle+ the +ryer

The ne* -ro$ess #o* +iagram *ith impro7ement on stage 1

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

stage 9

M1,4

M2, 4S1,5 S3,6S2,5 S5,6 S6,6

S7, S8,

M1, 4

M2, 4

M3,5

M4,6

M1, 14

M2,

10.25


19/31


(%

Ana!sis o# impro7e+ pro$ess

C!$e Time O# The Stages Capa$it! O# the Stages

S1G 5 min / 1 tonne G 5 min/tonne S1G 1 tonne / 5 min G 02 tones/ min

S2G 5 min / 1 tonne G 5 min /tonne S2G 1 tonne / 5 min G 02 tones/ min

S@G min / 1 tonne G min /tonne S@G 1 tonne / min/ 2.)555 tones0

min

M1G D secon+s/ 1tonne G D min / tones-

M2G D secon+s/ 1tonne G D min / tones-



thus SD G 025 025 G 05 tones/ min

S5G min / 1 tonne G min /tonne S5G 1 tonne / min G 2.)555

tones0min

SG min / 1 tonne G min /tonne SG 1 tonne / min G 2.)555 tones0

min

SG 5 min / 1 tonne G 5 min /tonne SG 1 tonne / 5 min G 02 tones/ min

S;G5 min / 1 tonne G 5 min /tonne S;G 1 tonne / 5 min G 02 tones/ min

M61G 1D min / 1 tonne G 1D min /tonne

M62G 1025 min / 1tonne

G1025 min /tonne

M61G 1 tonne / 1D min G 001D tones/ min

M62G 1 tonne / 1025 min G 009 tones/ min

thus S9G 001D 009

/ 2.)5 tones0 min

MK1G D min / 1tonne G D min / tones-

MK2G D min / 1tonne G D min / tones-

MK@G 5 min / 1tonne G 5 min / tones-

MKDG min / 1tonne G min / tones-

MK1G 1 tonne / D min G 025 tones/ min-

MK2G 1 tonne / D min G 025 tones/ min-

MK@G 1 tonne / 5 min G 020 tones/ min-

MKDG 1 tonne / min G 2.)555 tones0

min4

At this stage- the ottlenec( o& the system is Stage @-5--9 an+ MKD his time ,e ,ill

in8est on all these ottlenec(s in or+er to mo8e to the ne7t ottlenec( le8el that has a

capacity o# 2., tones0 min. hus- ,e nee+ to impro8e the capacity at each stage y a++ing


20/31


2)

2.2tones0min. A&ter loo(ing at the *antt Chart an+ its analysis ,e ,ill mo8e to the ne7t

stage that is impro8ement o& these ne, ottlenec(s

Accor+ing to the gi8en +ata- a ne, jo enters the Stage 1 e8ery 10 minutes

The S!stem impro7e+ 6antt Chart

'es$ription o# The 6antt $hart :

he *antt chart sho,s that our solution is e&&icient since ,e remar( that there is no

u&&er anymore an+ that the jos 2- @ an+ D +o not nee+ to ,ait anymore e&ore mo8ing to

stage 10

)o, ,e ,ill +etermine the actual cycle time o& the process! A unit comes out o& the

system at times!

For No 1! From MK1! 0 For No 2! From MK1! 25From MK2! 0 From MK2! 25From MK@! 1 From MK@! 25From MKD! 2 From MKD! ;25

For No @! From MK1! ;0 For No D! From MK1! ;25From MK2! ;0 From MK2! ;25From MK@! ;1 From MK@! ;25From MKD! ;2 From MKD! ;;25

Bence the a$tua CTis ).9) min0tone.


21/31


2(

Calculate the A8erage Manu&acturing $ea+ ime!

For No 1! From MK1! 0 For No 2! From MK1! 525From MK2! 0 From MK2! 525

From MK@! 1 From MK@! 525From MKD! 2 From MKD! 5;25

For No @! From MK1! 0 For No D! From MK1! 525From MK2! 0 From MK2! 525From MK@! 1 From MK@! 525From MKD! 2 From MKD! 5;25

The a7erage "LT! the units o& the system spen+ +i&&erent times in the system Bence- thea8erage M$ is 89.93 min

)o, that the ottlenec( is at stage @-5--9 an+ MKD Le ,ill nee+ to impro8e the

capacity o& all o& them in or+er to impro8e the capacity o& the system

The ne* -ro$ess #o* +iagram *ith impro7ement on stage %4 84 54 1 an+ "

%n this ne, process &lo, +iagram- ,e change+ the cycle times o& the ottlenec(

stages As ,e remar(- at stage 10 ,e ha8e increase+ the capacity in the secon+ machine %t

has no, a capacity o# 2.), tone0min,hich is eui8alent to a cycle time o& 3.33 min 0tone %n

the other ottlenec( stages- ,e ha8e change+ the cycle time ,ith 5 min/tone as it appears in

S@-S5-S-MKD

M1,4

M2, 4S1,5 S3,5S2,5 S5,5 S6,5

S7, S8,

M1, 4

M2, 4

M3,5

M4,5

M1, 14

M2,

7.77


22/31


22

Ana!sis o# impro7e+ pro$ess

At this stage- the ottlenec( o& the system ecomes Stage 1- 2- @- 5- - - ;- an+ 9 his

time i& ,e ,ant to increase the capacity o& the system- ,e ,ill nee+ to in8est on all these

ottlenec(s in or+er to mo8e to the ne7t ottlenec( le8el that has a capacity o# 2.,8 tones0 s.

hus- ,e nee+ to impro8e the capacity at each stage y a++ing2.28tones0se$on+.

Acc'r*ing t' t"e given *ata7 a new 8' 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 u&&er in the ne, system Moreo8er- the jo 2 an+ D ,aits in

the u&&er 1 min e&ore mo8ing to the machines MK@ an+ MKD Conseuently- ,e assume that

,e ,ill (eep only the pre8ious impro8ement as a possile in8estment ,hich is the

impro8ement on stage 9 For this reason- ,e nee+ to chec( oth the price o& the ne, machine

an+ the )et %ncome o& Cosumar in or+er to (no, i& the in8estment is &easile!

Cosumar Net Income 2!!: 5;109 Million +e 3irham


23/31


23

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

Cost o& the Machine! ;0 000 3hs

Pro+uction! 12 million tone/ear

Annual e8enue! 55 million MA3

e8enue Per ton G D;1 MA3

3i&&erence in early Capacity a&ter in8estment!

01 one/ min " 001D one/min G 00952 one/min

GH 00952 Q 0 Q 9 Q 511 G 2 29D;; one /ear

*ain A&ter %n8estment! 2 29D;; one /ear Q D;1 MA3

G 12 @5 2@2; MA3

Payac( Perio+! $ess than one ear

Reorder !oint and sa(ety stock:

Appro7imately- each year the +eman+ o& sugar in Morocco increases y 20000 tons-

,hich create a prolem o& &ailing to satis&y this increase in +eman+ %n &act- Cosumar as a

sugar monopoly in Morocco has to prepare its stoc( &or this (in+ o& &luctuation For instance-

Cosumar SA has to (eep a speci&ic uantity o& ra, material


24/31


2/

One o& the issues that Cosumar SA su&&ers &rom is the issue concerning the amount o&

ra, material nee+e+ ecause o& the lac( o& the accuracy o& the &orecast o& +eman+ As ,e

(no,- Cosumar can get only D5E o& ra, sugar &rom its re&ineries- ut the remaining 55E it

has to import it &rom ra#il

Cosumar SA nee+s aout 50 000 tons per year o& ra, sugar &or the sugar pro+uction-

so ase+ 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*9ar : 65))));3(( : 2)%).)32(5/ t'ns;*ay


25/31


25


26/31


26

From these results- ,e can conclu+e that in or+er to e ale to satis&y the changing

+eman+ o& Cosumar SAKs customers y the proaility o& 95E- Cosumar has to (eep a sa&ety

stoc( o& ra, material o& appro7imately 2555 tons o& ra, sugar- an+ it has to ma(e or+ers at


27/31


20

the reor+er point- ,hich means ,hen it has e7actly the amount o& 2;559@ tons o& ra,

material in its in8entory

Reco''endations:

%n conclusion- our recommen+ation is to uy a ne, +rying machine that ,ill increase

the capacity o& the system he in8estment is &easile since the company has enough yearly

income an+ a goo+ payac( perio+ that is less than one year

Also Concerning the sa&ety stoc( capacity- ase+ on our analysis- ,e conclu+e+ that

,ith a proaility o& 95E- the sa&ety stoc( o& Cosumar shoul+ e appro7imately 2555 tons

o& ra, sugarJ also- the reor+er point is ,hen the company has 2;559@ tons o& ra, sugar in

its in8entory stoc(

Appen+i;:


28/31


2!

SUCRERIES DES DOUKKALA

-ierre

Ca$aire

Cossettes


29/31


2%

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


30/31


3)

Figure : "anu#a$turing pro$ess


31/31


3(

Re#eren$e:

A(esi- )

Documents

Cosumar Report