NAMAL UNIVERSITY

MIANWALI

FUNDAMENTALS OF
OPERATIONS
Final Project Report

CANE-V JUICE

Presented To:
Dr. Syed Tariq

GROUP NAMES:
Alveena Basheer NIM-BBA-2020-13

Ajmal Rafique NIM-BBA-2020-14

Junaid Asif NIM-BBA-2020-13
Rashid Nawaz NIM-BBA-2020-14
 Cane-v Juice

The Exordium

“In the Name of Allah the compassionate the Merciful”

All the acclamation and admiration is for Almighty Allah the
most merciful, gracious and beneficent who is entire source of
all the knowledge and wisdom endowed to mankind. We offer
our humblest thank from the core of our heart to Holy Prophet
Muhammad (Peace Be Upon Him), who is forever source of
guidance and knowledge for the humanity.

“Praise to Allah, Lord of the creation, the

Compassionate, the Merciful, the King of the Judgment day!
Alone.”
(Al-Quran)

ACKNOWLEDGEMENT
First of all, we are thankful to Almighty ALLAH for giving us
much cooperation and supporting parents who have given us this
opportunity to study at Namal University Mianwali. I would

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 Cane-v Juice

like to thanks Dr. Syed Tariq for giving us the confidence and
opportunity to prove ourselves.

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Table of Contents

Objectives of the project----------------------------------------------------------------6

Introduction of Cane-V juice -----------------------------------------------------6

Vision------------------------------------------------------------------------------------6

Mission----------------------------------------------------------------------------------6

Values -----------------------------------------------------------------------------------7

Operation strategies (differentiation, quick response and low cost) ------ 8

Cost-Profit-Volume Analysis----------------------------------------------------9

Process Selection--------------------------------------------------------------------10

Forecasting----------------------------------------------------------------------------11

Design Layout -----------------------------------------------------------------------11

Design Capacity---------------------------------------------------------------------12

Location Strategy-------------------------------------------------------------------13

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 Cane-v Juice

Recommendations ------------------------------------------------------------------14

Processing Machine images---------------------------------------------------------16

Business Owners----------------------------------------------------------------------18

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 Cane-v Juice

OBJECTIVES OF THE PROJECT:

The basic purpose of this project is to understand the operations
of Cane-V juice and to know about their finances as well as other
operations by applying our analytical and professional skills.
This project will help the reader to understand and analyze the
Operations of Cane-V juice.

Cane-V Juice
Introduction:
We have chosen Cane-V Juice, a remarkable student-led startup from the
business department. Launched in 2022, this venture continues to thrive. The
team cleverly named their endeavor the MAARQS organization, incorporating
the initials of each member. Additionally, they go by the name Cane V Juice.
Their offerings include refreshing sugar cane juice, catering to the Namal
family, which comprises faculty, male and female students, and other staff
members.

Mission Statement
Our mission is to empower hostel students by providing them with convenient
access to revitalizing sugar cane juice, thereby enhancing their overall well-
being and fostering a spirit of entrepreneurship among all our valued
shareholders.

Vision Statement

To be the leading brand of sugar cane juice, catering to hostel communities,

promoting local economy, and establishing a recognized name for quality and
taste.

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 Cane-v Juice

Values:
Quality Convenience
We are committed to providing our We prioritize convenience by
customers with the highest quality offering our services within the
sugar cane juice, using fresh and hostel premises, making it easy and
natural ingredients, ensuring a accessible for students to enjoy our
delightful and refreshing sugar cane juice without having to
experience. leave their living area.
Empowerment Community
We believe in fostering an We value building a sense of
entrepreneurial spirit among our community within the hostel,
shareholders, empowering them to creating a welcoming and inclusive
actively participate in the business environment where students can
and contribute to its growth and come together, socialize, and enjoy
success. a healthy beverage option.

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 Cane-v Juice

OPERATION STRATEGIES
OFCane-V juice:

Differentiation Strategy of Cane-V juice:

If we talk about the differentiation of Can v Juice then they are highly involved in
customer specifications and customer satisfaction. Because if they are receiving
feedback about their juice then they add some additional ingredients in juice which
help them in engaging customers. Here is the important thing is that there is no
specific competitor in this area so, they focus on customers’ interest and
satisfaction.

Quick Response strategy of Can V Juice:-

Can V Juice have an edge in quick response because their customers
are mostly hostelite students so on the spot they give a response
about juice. But except this, they also receive responses in
university and other places where students give responses. The big
advantage of this quick response is to improve the quality of the
juice if anything is missing and also helps to know about that what
kind of juice is required by the customer. The big advantage of this
quick response is to improve the quality of the juice if anything is
missing and also helps to know about that what kind of juice is
required by the customer.
The big advantage of this quick response is to improve the quality
of the juice if anything is missing and also helps to know about that
what kind of juice is required to the customer.

Low cost and High Quality strategy of Can V

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 Cane-v Juice

juice:
If we discuss the low cost and High-Quality strategy then this
juice is totally hygienic because some other that have business of
this juice then they mix water in the juice but Can v is no kind of
that because each ingredient in this juice is natural and fresh
hygienic. So there is a high quality of this juice at an affordable
price for hostelite students.

Cost-profit-Volume Analysis
Total revenue
TR = Selling Price per Unit (SP) x Quantity Sold (Q)
Selling Price per Unit (SP) = Rs.80
Quantity Sold (Q) per day= 38 glasses
TR= 80*38
TR= 2400

Total Variable Costs (TVC):

TVC = Variable Cost per Unit (VC) x Quantity Sold (Q)
Variable Cost per Unit (VC) = 54 (Sugarcane= 44 , Disposable cup=10 )
TVC= 54*38
TVC=2052

Contribution Margin (CM):

CM = TR – TVC
CM= 2400 – 2052
CM=348

Contribution Margin Ratio (CMR):

CMR = CM / TR
CMR= 348/2400
CMR=0.145
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Total Fixed Costs (TFC)

(Ice+ lemon=Rs.4)

Profit (P) per day

P = TR - TVC – TFC
P= 2400 – 2052 – 4
P= 344

Break-even Point (BEP) in Units:

BEP (Units) = TFC / CM per Unit
BEP= 4 / 26 (CM per unit = 80-54)
BEP= 0.11

Break-even Point (BEP) in Sales Dollars per day

BEP (Sales Dollars) = TFC / CMR
BEP= 4 / 0.145
BEP= 27.

Target Sales Volume per day

Target Sales Volume = (TFC + Desired Profit) / CM per Unit
TSV= (4 + 500) /26
TSV=19.38

Margin of Safety (MOS):

MOS = Actual Sales - Break-even Sales
MOS = 2400 – 1400
MOS= 1400

Process Selection:
They have a bit simple and easier process selection to process the
sugar cane juice. They have a machine to process sugar cane called as
processing unit.
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 Cane-v Juice

There are various parts of the machine shown in the image above. Moreover,
they have three major steps,
 Washing sugar cane:
As they receive sugar cane from one of the
suppliers belonging to D.I Khan. As sugar cane is supplied from
miles away, it gets so much dust. First of all, they wash the sugar
cane. Then store it and keep using it for ten to fifteen days.
 Processing through Processing Unit:
They simply put sugar cane into the unit through
the inlet, and rollers process it and produce juice in the juice outlet.
 Filtering and mixing:
After getting juice out of the processing unit, they
use a strainer to avoid impure substances. Then they mix lemon, salt, and
sometimes mint to enhance the tast

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 Forecasting:
Currently, they are not using any forecasting technique as they are in the initial
stage of business. But they can use the naive method and moving average
technique to conduct forecasting.

Design/Layout Strategies

Warehousing and Storage Layout:-

Cleaning sugarcane

Storing in room

Extracting juice

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 Capacity Planning
Design Capacity of cane-v juice
According to the working mechanism of the processing unit they can
produce maximum numbers of glass of juice. According to the
design capacity processing unit take only five minutes to produce 2
glass of juice. As they work for 5 hrs. So,

Design capacity for 5 hrs. = 5×60 = 600

600÷5= 140

Machine capacity 140×2= 240

They can produce 240 glasses within 5 hrs. that they

selected to work. But as they have less demand. Therefore they easily
make 40 glasses per day.

Utilization of cane-v juice

Actual output per day = 40 glass
Design Capacity = 140
Utilization = 40 / 140
Utilization = .33 x 100 = 33%

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Location Strategies

Location:

The MAARQS organization has meticulously identified a highly suitable

location for their business, which holds immense significance in relation
to their targeted audience. Situated prominently in front of the canteen and
in close proximity to the mess, their chosen outlet stands as a central point
of convergence, ensuring effortless accessibility for boys, girls, and faculty
alike. Moreover, this strategic placement not only facilitates easy reach for
the internal stakeholders but also allows them to effectively cater to
individuals arriving from outside the premises, courtesy of its close
proximity to the main entrance gate. By capitalizing on this prime location,
the MAARQS organization is able to present its exceptional services to a
diverse range of customers, accommodating the dynamic needs of their
clientele

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Recommendations:
 Currently the machines used by Cane-V juice is no doubt
one of the best machines which are being used in Pakistan
and is producing a good quality of juice but still they can
improve their production by importing quality machine
that can have uniquefeatures which are not available in the
machine in use. By using imported machines they can
further reduce labor cost as well as energy and labor
hours.

 Proper training facility should be provided to labor.

 The company must keep safety measures for itsLabor Staff

as well as Products.

 In order to develop business Cane-V juice, must have well-

equipped business premises as well as trained Labor.

 Although MAARQS company has good reputation, but

they should need to improve timings to get more better
results.

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EXECUTIVE SUMMARY

This project is undertaken to analyze the operations of Cane-V juice

and then to measure their performance in accordance with Operations
Management Strategies and Policies. For this purpose various aspects,
techniques and financial tools are used in this project. The tools used in
this report are as follows:

A. Operation Strategies

B. Layout Strategies

C. Capacity Planning

D. Location Strategies

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 Exhibit 1:
Processing Machine:

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EXHIBIT 2: Business Owner , MAARQS group,

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