Shakarganj Mills began sugar operations in 1974 but faced short supply issues in the 1970s due to regulated prices and competition from "Gur" producers. In 1981, deregulation of prices and government incentives motivated SML's expansion through increasing storage capacity, adding turbines/generators, and boosting cane crushing capacity. SML also transitioned to a cheaper and more environmentally friendly carbon dioxide sugar refining process. In 1976, SML partnered with UBL to computerize cane accounting to reduce fraud, issues with multiple cheques, and the 60,000-70,000 manual transactions per year. This helped make payments to cane growers more promptly and maintain good relationships.

1. Group Members:
Muhammad Abubakar Mourige
Agha Sarmad Dawar
Saad Naveed

2.  Shakarganj Mills began operations in 1974.
 Short supply of sugar in 1970s.
 Regulated prices.
 “Gur” producers preferred by farmers.

4.  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.

5.  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.

6.  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.

7. Method 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.

8.  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)

9.  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.

10.  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

11.  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

12.  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

13.  Spare-parts inventory management systems
 New procedures and forms for ordering
 Ordering time and paper-work reduced
 Material management system

14.  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

15.  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