Applying theory of constraint to create overall benefits for individual Distell wineries

Heyns, Andries Dirk Michiel (2008-12)

Thesis (MBA (Business Management))--Stellenbosch University, 2008.

Thesis

ENGLISH ABSTRACT: Distell Group limited is South Africa's leading producer and marketer of fine wines, spirits and ready-to-drinks. The wine division has been confronted with limitations on pressing capacity for a number of years. Sales of Distell wine brands are projected to grow substantially, in particular in the premium and super premium categories. Therefore a need for increase sUstainable supply of wine was created. The objective of this study was to increase the throughput in Distell wineries significantly, without or with minimal cash investment, by applying the principles of a combined supply chain strategy. To achieve this, the study needed to allow for the analysis of various scenarios, and indicate where the various constraints were within the process. Theory of constraint, which is a management philosophy aiming to continually achieve more of the system's goal was applied to the Distell situation. The focus points were to create value for the organisation, with collaboration between grape farmers and the wineries. It was necessary to follow a process of data capturing, and the data obtained from the various sources in 2008 was combined into one database to develop a capacity evaluation model. There is no doubt that the Distell wineries as a group, improved their efficiency over the last number of years, with effective management of the individual wineries. There is however enough evidence to support the change to a combined supply chain strategy, which could unlock more total benefits than the individual management. It is clear from the findings in this study that not all the current available capacity is fully utilised. This study found that the white process in Distell was working at a higher than required rate of the set capacity targets, and would need substantial capital investment to increase throughput. The red process indicated opportunities for increase throughput in the total system. It is possible to increase total throughput and maintain quality for Distell wineries.

AFRIKAANSE OPSOMMING: Distell is een van Suid Afrika se grootste produseerders en bemarkers van hoe gehalte wyn, spiritus produkte en alkoholiese drankies. Die wynkelder omgewing ervaar al vir 'n geruime tyd kapasiteit tekorte. Die vraag na Distell wynhandelsmerke verwag om 'n konstante groei te toon oor die volgende paar jare, veral op die premium en super premium katogoriee. Oit veroorsaak 'n groeiende behoefte vir die volhoubare voorsiening van wyn, binne die maatskapy. Die doel van die studie was om produksie te verhoog binne die Distell kelders, met min of geen kapitale beleging, deur 'n holistiese strategie te volg ten opsigte van die bestuur van die waardeketting. Die studie het verskeie alternatiewe ondersoek met die doe I om die beperkings in die proses te identifiseer en te ontleed. Die bestuurs filosofie 'Theory of constraint' is toegepas, waar daar gestreef word om meer te bereik, van die mikpunt wat ge5tel is vir 'n spesifieke proses. Die hoofdoel van die maatskapy was om waarde te skep, deur samewerking tussen druiwe produsente en die verskiliende Distell kelders. Die nodige data vir die ontleding van die beskikbare kapasiteit is verkry gedurende die 2008 seisoen. Die inligting is saamgevoeg in een data-stel, en 'n kapasiteitsmodel is ontwikkel. Daar is geen twyfel dat Disteli kelders as 'n groep hul doeltreffenheid verbeter het, deur die individueele prosesse te bestuur. Die studie lewer egter genoeg bewyse dat daar 'n groter potensieeHe voordeel is, indien die proses op 'n holistiese waardekettingstrategie bestuur sal word. Die studie lewer bewyse dat die huidige beskikbare kapasiteit nog nie optimaal benut word nie. Die verwerking van druiwe in die witwyn proses vind plaas teen 'n hoer kapasiteitsbenutting as wat waarvoor beplan was. Om enige verdere witdruiwe volumes te hanteer, sal tot groot kapitale besteding lei. Die rooiwyn proses wys daar is ruimte vir verbetering, sonder groot kapitale spandering. Die studie het gevind dat die totale proses meer volumes rooidruiwe kan hanteer, en steeds voldoen aan die nodige kwaliteit vereistes.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/6386
This item appears in the following collections: