Value Chain Analysis Focusing on Organizational Production Process : The Case of Wonji/Shoa Sugar Factory

Abstract

The purpose of this study was to assess the value chain analysis in organization production process at Wonji/ Shoa sugar Factory. Therefore, cross sectional case study in both qualitative and quantitative approach was used in order to minimize weaknesses and reach a deeper understanding of the area. The sample of 127 upper level management staff and supervisors engaged in 5 sectors was taken for the study. A stratified random sampling technique was employed; in which the target population is stratified and then, simple random sampling was adopted to select the required sample from each stratum. In addition to these techniques, purposive sampling was applied for the interview of the key informant. Here, both primary and secondary sources of data were used for addressing the stated research questions according to their nature. Comprehensive research instruments, which are structured questionnaire and interview, were developed and used to gather data for analysis. A descriptive analysis was used for discussion of the results. The rate of sugar extraction decreases as the processing of cane is delayed. The findings reviled that the value adding activities were not adopted and performed properly. In line with findings the sugar extraction process in the factory has above desired loss of sugar through bagasse and molasses and that the expected maximum sugar cane yield is not achieved.