Production and Operation Management (MBASC 122)

Critique Paper No. 3

“Transformation Process in Operation Management: Dangote

Cement Nigeria”

Shayma D. Mokamad
MBA student
May 18, 2022
 Table of Content

The Research Inquiry or the Article 1

The Critique 2

References 3
The Research Inquiry or the Article
A. ENGINEERING MANAGEMENT IV, SUBJECT CODE: MGNA411, PRJECT
ASSIGNMENT 2018, TRANSFORMATION PROCESS IN OPERATIONS
MANAGEMENT, AKINOLA AA, 218075655; DANGOTE CEMENT NIGERIA,
pp1-10

B. Operations control is described as how items and offerings are produced/supplied

through an organization that is what offers motive for existence. In an organization,
operations are visible to be one of the most important features which address her devotion
to manufacturing of true or offering offerings. (Albert, 2009). Goods and offerings
withinside the proper type is produced to fulfill customers. Producing most output
making use of all of the restricted to be had resources. Ensuring good enough excellent is
met as prescribed withinside the pre-set specifications. Effective and most use of man-
power, machines, methods, cash etc. Services and items manufacturing price minimized.

C. Every organization's operational process relies heavily on producing reliable products

and delivering such products in a timely manner. The cost of production or service is
greatly affected by operational management. This is in line with the degree of production,
service provision and ultimately the provision of such a process. The operational aspect is
a transformational aspect and is essential to transforming the input into the desired output
that brings value to the customer. The result of customer satisfaction motivates the
customer to pay for such a product or service, thereby generating the profit margin of the
organization. Competitive advantage is very important for operational management.
These are functions in the operation of the organization. (Albert, 2009); Goods;
Production: This is either an assembly or an industry. After-sales service: In-sales and
after-sales service, call center, warranty department.

D. Operations management impacts the overall productivity and profitability of any

business. It measures the efficiency of managers and other employees, thereby
accelerating the progress of individuals and companies. Operations management is the
engine room of a company where careful decision making and planning are done. The
final product is obtained based on input and additional conversion processes.
Measurements are taken at various points in the conversion process to achieve the desired
results and weighted against standard targets to ensure proper design or corrective action
is initiated if deviations occur. Will be done. An important aspect of checking whether a
company is productive is assessing the work of its employees in relation to the added
value of their customers. (William, no date)
The Critique
Dangot Cement focuses on an "export to import" strategy in West Africa and Central Africa.
Nigeria has relatively abundant high-quality limestone, especially in the major southern regions
near demand and export facilities. Due to the lack of limestone in many of West Africa and
Central Africa, especially coastal countries, some of these countries usually import bulk cement
or its intermediate clinker from outside the African Continent. Their vision is that West Africa
and Central Africa will be self-sufficient in cement and clinker, and Nigeria will be a major
export hub. This is especially helpful in improving regional trade within and beyond the
ECOWAS region with the African Continental Free Trade Area. Nigeria can serve potential
markets in more than 350 million people in 15 countries. Higher utilization in Nigeria's
operations:
Increased production from exports will increase utilization in Nigeria's operations, thereby
lowering fixed costs per ton.
Duty Free Trade:
Build on the incentives of the Regional ECOWAS Agreement to support the launch of the
African Continent Free Trade Area and strengthen cement self-sufficiency in the African
Continent. Exchange year:
Forex income from the Nigerian business helps offset forex risk.
LOWER CLINKER COST FOR PANAFRICA OPERATION:
Due to proximity to Nigeria, Justin time supply enables working capital and landing costs
optimization. DC has also resolved to gaining more market share by implementing the following
specific action plan; expansion drive that is so strategic; wider distribution network (customer
direct delivery plan); modern technology investment and implementation
DC has gained more than 70% of the market share in cement production and still aims to share
part of the remaining 30% which there is a high tendency of achieving this laid down goal but it
is recommended that DC invest on the skills level of the workers since DC is going modern with
technology and technological advancement requires a high rate of technical skills. However,
training worker for such a big organization will require a huge sum of money for training and
development. It is also recommended that DC drops the price of 32.5R grade cement by 40% as
there is still greater advantage of sales on the 42.5R grade cement. The recommendation is given
because the cost of production of cement is extremely low which has made DC to earn a profit of
60% per bag over the years and the profit is been used to develop the company at the expense of
faithful citizens. At this point, this rate of return loss is a big asset for companies with large
capital to invest in more than 170 million countries and poses a major threat to DC, so price cuts
are needed. It creates a competitive advantage over other cement manufacturers in the country.
Reference:
https://www.researchgate.net/publication/
327752290_TRANSFORMATION_PROCESS_IN_OPERATIONS_MANAGEMENT
https://www.dangotecement.com/