Efficiency and Effectiveness of It in Production and Supply Chain

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Pakistan tobacco Company Ltd
2012
Efficiency and effectiveness of IT in Production and Supply chain Systems and Operations Management
Aleem Arif
www.ptc.com.pk
Pakistan tobacco Company Ltd
2012
Efficiency and effectiveness of IT in Production and Supply chain Systems and Operations Management
Aleem Arif
www.ptc.com.pk

Table of Contents
Executive Summery2
Introduction2
Value Chain3
Competitive Advantage5
Production Process Structure6
Process Analysis and Design7
Supply Chain Design8
Bullwhip Effect9
Use of IT in Supply Chain9
Capacity Management9
Inventory Management11
Issues with IT11
Conclusion12
Sources and References13

Executive Summary
This Report is prepared to access the implications on the use of information systems and operations management in an organization, how it affects the economy efficiency and effectiveness of an organization. Pakistan Tobacco Company is well known for its good management, and it is efficient organization in cigarette manufacturing.

To access how use of IT have improved the process at Pakistan Tobacco Company, Production Process and the supply chain were evaluated how these two have became a critical success factor for Pakistan Tobacco Company, and how these factors helped PTC to remain a profitable organization in last 6 years of economic turmoil in Pakistan.

PTC have worked very well in utilizing IT as a source of competitive advantage and its continuously improving its Information Systems to meet the future demands of the market. PTC’s well established supply chain and fully automated production process are keys of its success and have made PTC a flexible organization. Automated production line is extremely efficient and well established supply chain and proper management have provided PTC with effectiveness. Introduction

In current days the dynamics of businesses are altogether changed. Organizations are adopting more and more automation and IT systems are inducted in the core activities of the businesses. Current era of powerful computing has brought efficiency, effectiveness and economy in the business processes. Operations are the transformation conducted to perform those steps necessary for the business activities. Standard raw material input to finished goods in the production is the ordinary production process is the transformation, and converting scattered information into well structured knowledge is also a transformation. Systems and operations management is the study of managing the operations and the advanced systems. Pakistan Tobacco Company (PTC) is a part of British American Tobacco. PTC was formed in 1947. Previously it was known as Imperial Tobacco Company which started its operation in 1905, making it Pakistan’s first international Investment. It is largest organization in Pakistan’s Tobacco manufacturing industry.

PTC is highly reputed organization of Pakistan, due to its good corporate citizenship; its employees are well motivated and have long term affiliations with the company. From 1999 after a revival plan the business is in continuous growth.

PTC is extremely focused on its Supply chain and its information systems. In fact PTC is the leading organization of Pakistan in its Supply chain Management

Value Chain
We are involved in all aspects of cigarette manufacturing, from crop to consumer PTC’s value chain starts from converting raw tobacco into the consumable finished cigarette. But its operations extend from farming to distribution. PTC is largely involved in the farming process of tobacco in Pakistan. Because PTC believes that a superior quality tobacco will increase vale for the customers. PTC has two production factories in Pakistan One in Akora Khattak (AKF) and Second in Jhelum. Both of these factories are state of the art production facilities. And they are built closer to the tobacco farming areas of “Khyber Pakhtoon Khaw” To Analyse the Value Chain of PTC using the Porter’s value chain analysis, Porter argues...
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