ADMAS UNIVERSITY

SCHOOL OF POST-GRADUATE STUDIES

MASTER OF BUSINESS ADMINISTRATION PROGRAM
OPERATION MANAGEMENT ASSIGNMENT 2

PRACTICAL VISIT REPORT ON SAINT GEORGE BEER

FACTORY(BGI)

No. Name of Students ID

1. Mulugeta Chekol--------------------PGMGB/1417/22
2. Frew Takele -------------------------- PGMGB/1371/22
3. Feven Zewdie------------------------ PGMGB/ 1160/22
4. Mamit Derbie ------------------------ PGMGB/ 1137/22
5. Abebe Habtamu --------------------- PGMGB/ 1355/22
6. Abebayehu Yifru --------------------PGMGB/ 1048/22
7. Rediet Tegegn ----------------------- PGMGB/ 1389/22
8. Muluemebet Aklilu------------------ PGMGB/ 1100/22
9. Roman Tayine------------------------PGMGB/ 1110/22

: Submitted by Section 2 Group 3 Students

Submitted to: Mebratu L. Teklehaimanot (PHD)

Date: December,2023
 EXECUTIVE SUMMARY

The term paper or visit report on the decision areas of operational management at Saint George
Beer Factory provides valuable insights into the operations of the organization. The report
highlights the critical role of operational management in the success of any business and how
effective implementation of operational management practices can lead to increased
productivity, efficiency, quality, customer satisfaction, employee engagement and retention, and
financial performance.

The report covers the ten decision areas of operational management, including design of goods
and services, quality management, process and capacity design, layout design and strategy,
location, organizing human resources, supply chain management, inventory, scheduling, and
maintenance. It provides recommendations for Saint George Beer Factory to improve its
operational management practices, such as investing in quality management, optimizing supply
chain management, improving employee engagement and retention, exploring export
opportunities, and investing in sustainability.

Overall, the report serves as a useful reference for other businesses in the beer industry or those
seeking to improve their operational management practices. By implementing the
recommendations provided in the report, Saint George Beer Factory can improve its operational
management practices and achieve higher levels of performance, customer satisfaction, and
profitability.

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Table of Contents
EXECUTIVE SUMMARY ........................................................................................................................ II
INTRODUCTION ....................................................................................................................................... 1
BACKGROUND OF THE COMPANY ..................................................................................................... 2
MAIN OBJECTIVES OF THE COMPANY .............................................................................................. 3
KEY OPERATION DECISION AREAS .................................................................................................... 4
I. Design of Goods and Services ............................................................................................................. 4
II. Quality Management............................................................................................................................ 4
III. Process and Capacity Design ........................................................................................................... 5
IV. Layout Design and Strategy ............................................................................................................. 6
V. Location ............................................................................................................................................... 9
VI. Organizing Human Resource ........................................................................................................... 9
VII. Supply Chain Management ............................................................................................................ 11
VIII. Inventory ........................................................................................................................................ 12
IX. Scheduling ..................................................................................................................................... 13
X. Maintenance ....................................................................................................................................... 14
PURPOSE OF THE COMPANY .............................................................................................................. 15
OPERATIONAL MANAGEMENT EFFECT ON PERFORMANCE ..................................................... 16
CONCLUSION.......................................................................................................................................... 18
RECOMMENDATION ............................................................................................................................. 19
REFERENCES .......................................................................................................................................... 21

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INTRODUCTION

St. George Beer is the oldest and most well-liked beer in Ethiopia.St. George was established in
1922 and is made in Addis Ababa by BGI Ethiopia. The beer bears the name of Ethiopia's
patron saint, who also happens to be England's patron saint and is responsible for the country's
rich Christian history.
In the beginning, the factory imported fundamental raw materials from Europe, including beer
barley and hops, and its management team, along with the chief technicians who oversaw the
brewery's operations, were all foreign nationals. But eventually, in 1952, an Ethiopian business
acquired the brewery. According to reports, this business was set up as a shareholding concern,
with Emperor Haile Selassie, the ruler of Ethiopia at the time, owning the majority of the shares.
With time, the brewery expanded and gained popularity throughout the nation, making the
people happy to drink Ethiopian beer rather than a foreign import. Currently, the factory is
owned by BGI, a highly recognized global brewing company that ships its products to both
North America and Europe. The bottle of the beer features a unique cover. A knight akin to one
from the Middle Ages defeats a dragon. Naturally, that knight is none other than St. George, the
brave man who long ago slew a large dragon.
When we look at it, it has a lovely golden colour and a large head on the pour. Lots of pleasant
carbonation occurring. It appears to be a good beer overall, with a great clarity.

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BACKGROUND OF THE COMPANY
BGI Ethiopia is a multinational company owned by the Castel Group. It focused on making
drinks. Many sister companies exist, especially in Africa. BGI is Group Castel's broad brewing
and beverage production division with operations in over 53 nations. Beer, wine, and other non-
alcoholic beverages are produced and supplied by BGI Ethiopia PLC since 1998. Six breweries,
including the well-known St. George Brewery in Addis Abeba, are owned by BGI. Together,
these breweries, together with the Kombolcha, Hawassa, Zebidar, and Maychew Northern
breweries, produce 3.6 million hectoliters of beer annually (in bottles and on draft). BGI
Ethiopia P.L.C. also owns and runs the Castel winery and vineyard, which are located in the
town of Zeway.
The garden vineyard was established in 2012 ec and produces 12,000 Hectoliters of several
wine types year under the Rift Valley and Acacia trademarks. Kenya, Tanzania, South Africa,
South Sudan, Djibouti, etc.) and Asia (China, Japan, etc.) are just a few of the nations to which
BGI Ethiopia exports its goods. Other countries that receive them include the Middle East
(Israel and UAE), North America (USA and Canada), Europe (UK, Italy, France, Germany,
Switzerland, Belgium, Netherlands), and Australia. BGI Ethiopia's products are distributed all
over the country through partner agencies.
Nearly two decades ago, BGI launched its first product, "Bati Beer," onto the Ethiopian market.
It then carried on with its journey, opening more plants in Addis Ababa, Kembolcha, and
Hawassa, among other Ethiopian cities. BGI is Ethiopia's largest for a reason.
The two main broad organizational structures of the company are the executive body and the
workforce. The employees were spread throughout multiple departments, such as finance,
quality control, sales, marketing, production, and fabrication. The executive body of the
company is composed of the CEO, HR director, administration manager, and department heads
who are above grade 12. The company wears family-friendly styles. Positive employee
connections are fostered by a number of social gathering activities, and the company is very
supportive of its clients as well as its own employees. The leadership of the organization is
friendly and approachable. A newcomer to the establishment cannot even identify the manager
or staff. They labor together and eat the fruit.

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MAIN OBJECTIVES OF THE COMPANY
The goal of Saint George beer can vary depending on the viewpoint, but generally speaking, the
goal is to give customers a great and enjoyable beer experience. This can involve a variety of
things, like using high-quality ingredients, brewing according to traditional methods,
maintaining consistency in flavor and taste, and providing a wide range of beer styles to
accommodate a wide range of preferences. Like many other beer companies, Saint George also
probably wants to establish a strong brand reputation, gain market share, and make money from
the sales of its beer products.
The company's objective

❖ Fulfilling the gap of demand of Beer requests in Ethiopia and creating many job
opportunities.

Mission of the company

❖ To produce, sell and give our consumers the greatest quality, and most appreciated
brands in Ethiopia.

Vision of the company

❖ To maintain our position as Ethiopia's undisputed leader in the beer business.

Company values

❖ Integrity, ownership, quality emphasis, and result-oriented innovation

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 KEY OPERATION DECISION AREAS

I. Design of Goods and Services

Depending on the particular brand and company, Saint George beer's product design may
change. Nonetheless, a beer's product design generally consists of the following essential
components:

1. Packaging: This comprises the labeling, logos, and graphics that are applied to the bottle or
can, as well as the design of the item itself. Target market appeal and brand identification are
two common goals of packaging design.
2. Typography: The brand's image and message can be communicated through the typography
and font selection utilized on packaging and promotional materials.
3. Colors: Because they have the ability to arouse feelings and project a certain image or mood,
colors are extremely important in product design. The target market and brand positioning
would determine the color scheme for Saint George beer.
4. Logos and Branding: A strong logo is crucial for a beer company, as it aids in generating
recognition and differentiation in a congested market. The logo design should align with the
brand's ideals and personality.
5. Labeling Information: Important details about the ingredients, brewing method, alcohol
content, and any other information required by law or regulation to be listed on the label are all
included in the design of the beer product.
In the end, Saint George beer's particular product design would depend on the brand's placement
within the beer market, target market, and overall marketing plan.

II. Quality Management

Ethiopia is home to the well-known Saint George Beer brewery. Although we don't know
anything specific about their QMPs, it's typical for beer companies to use a number of quality
control methods to guarantee that premium beer is produced. These methods may include
rigorous beer selection processes, meticulous monitoring of fermentation conditions, regular

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 sensory evaluations, and adherence to tight cleanliness and sanitation requirements in the beer
production facility. It's also likely that Saint George beer has implemented quality management
systems, such as ISO 9001 certification, which can further demonstrate their devotion to quality.

III. Process and Capacity Design

A number of factors are involved in the process and capacity design of Saint George beer, such
as the brewing procedure, equipment choice, production scheduling, and capacity estimation.
The following are some essential details about the procedure and capacity planning of a
brewery:
1. The Brewing Process: The components, which include malted barley, water, hops, and yeast,
are first malted, then mashed, and last boiled. Filtration, packing, conditioning, and fermentation
come next. Specialized tools and knowledge are needed for every stage to guarantee consistency
in flavor and quality control.
2. Equipment Selection: Considering their production volume and range of products, Saint
George Beer must choose the right brewing equipment. Choosing mash tuns, fermenters,
boilers, filtration systems, packing lines, and storage tanks that meet their unique needs is part
of this process.
3. Production Planning: A well-crafted production plan considers variables such as product mix,
lead times, market demand, production volume, and storage needs. In order to maximize
resources and reduce downtime or bottlenecks in the production line, it entails arranging the
production processes.
4. Capacity Determination: Variables include the size of brewing vessels, the length of
fermentation, the speed of packing, and the general efficiency of the operation all affect a
brewery's capacity. It is critical to assess the production capacity in terms of beer produced per
unit of time, expressed as barrels or liters, accounting for both projected future demand and
present demand.
5. Quality Control: For any facility producing beer, maintaining a constant level of quality is
essential. Throughout the brewing process, quality control procedures must be followed to
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 guarantee that the beer will have the proper flavor, aroma, and safety levels. This could entail
consistent testing, sensory analyses, and adherence to quality control protocols.

IV. Layout Design and Strategy

a) Business level and Operation Strategy

The beer sector, including Saint George beer, follows a similar framework for business level
and operation strategy. Here are some crucial elements to consider:
1. Operational Efficiency: Breweries must maximize the efficiency of their fermentation,
brewing, packaging, and distribution processes. Profitability is increased and costs are decreased
through efficient operations.
2. Quality Control: Breweries need to uphold strict standards of quality in order to build a solid
reputation and devoted clientele. Implementing stringent quality control techniques throughout
the brewing process provides consistency in taste, fragrance, and overall beer quality.
3. Product Differentiation: Craft breweries can set themselves apart from competitors by
creating a distinctive range of products that appeal to specific consumer preferences. This can be
achieved by experimenting with different ingredients, brewing techniques, or flavors.
4. Branding and Marketing: To attract customers and boost sales, breweries must invest in brand
development, marketing campaigns, and distribution channels. Based on consumer preferences,
breweries may choose to target audiences such as craft beer enthusiasts or specialty beer
enthusiasts.
5. Sustainability and Environmental Considerations: In order to satisfy both customer
preferences and environmental concerns, breweries are progressively implementing sustainable
processes. This can involve cutting back on the use of dangerous chemicals, conserving water,
managing waste responsibly, and employing renewable energy sources.
6. Distribution and Sales Channels: It's critical for brewers to identify the best possible
distribution and sales channels. In order to reach a larger audience, this can involve direct-to-
consumer sales through brewpubs, taprooms, internet platforms, or joint ventures with
wholesalers and retailers.
7. Customer Experience: Fostering long-lasting relationships and promoting repeat business
need offering an outstanding customer experience. To improve the whole beer-drinking
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experience, this can entail providing brewery tours, tastings, events, beer education programs,
and tailored suggestions.
b) Differentiation Strategy
The following are some ways that the Saint George beer brand sets itself apart:
1. Distinctive Brewing Methods: Saint George beer is made using age-old brewing methods that
have been handed down through the centuries. Because of this, their beer has a unique flavor
and quality that makes them stand out from other breweries.
2. Premium Ingredients: The brand is committed to finding the best malts, hops, and yeast for its
brews. This dedication to use excellent ingredients guarantees an outstanding final product.
3. Variety of Flavors: To accommodate a wide range of consumer preferences, Saint George
beer comes in a variety of flavors. They offer both distinctive and experimental brews that
highlight their inventiveness and inventiveness, as well as classic varieties like Pilsner and IPA.
4. Limited Edition Releases: During certain seasons or special occasions, the brand releases
limited edition beers. These special beers inspire enthusiasm among beer fans and create a sense
of urgency to experience them before they're gone.
5. Branding and Packaging: Saint George beer invests in great branding and eye-catching
packaging designs. This makes their products more noticeable on the shelves and gives the
brand a recognized and unforgettable image.
6. Engaging Marketing Campaigns: The brand employs successful marketing campaigns to
engage with consumers and establish brand loyalty. This includes collaborations with local
artists, sponsoring community events, and employing social media to interact with their target
demographic.
7. Community Commitment: Saint George beer exhibits a dedication to aiding regional
communities and issues. To engage with consumers who appreciate socially conscious
companies, they could give away a portion of their earnings to nonprofits or take part in local
activities.
All things considered, Saint George beer sets itself apart by providing distinctive flavors,
premium ingredients, compelling branding, limited edition releases, and a dedication to
community involvement. Through these tactics, they are able to draw in a certain group of beer
connoisseurs who value their unique products and principles.

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 c) Strategic Focus
The company's specific aims and objectives can influence Saint George Beer's strategic focus.
Nonetheless, a Saint George beer company's strategic strategy often centers on the following:

1. Quality: Ensuring that the beer is made with the highest quality ingredients and techniques.
This includes maintaining consistency in flavor, scent, and texture to match client expectations.
2. Market expansion: Locating untapped markets or market niches and formulating plans to
increase the brand's exposure. This could entail looking into export prospects, focusing on
particular demographics, or expanding into other geographic areas.
3. Innovation: To remain competitive and cater to changing consumer preferences, companies
should constantly experiment with new flavors, brewing methods, and packaging ideas. This
could include working with other brewers, experimenting with other beer genres, or producing
limited edition brews.
4. Building a strong, recognizable brand identity that appeals to customers is known as brand
building. This entails creating a devoted client base, positioning the brand, and running
successful marketing and advertising campaigns.
5. Sustainability: Including eco-friendly procedures in the whole supply chain and brewing
process. This includes reducing waste, conserving energy and water, and supporting local
communities.
It's important to note that the strategic focus of Saint George beer may evolve over time as
market dynamics change, consumer trends evolve, or new opportunities arise

d) Operation Strategy
The method or plan that Saint George Beer uses to efficiently manufacture and market its beer
goods is referred to as its operation strategy.
1. Production Planning: This include figuring out how much beer can be produced, as well as
the manufacturing procedures and where to get the raw materials needed. It entails maintaining
constant quality and maximizing production efficiency.
2. Quality Control: To maintain the intended flavor and adhere to legal requirements, quality
control procedures must be put into place at every stage of the production process. Strict testing
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 and observation are necessary to guarantee premium beer.
3. Supply network Management: A well-managed supply network guarantees seamless raw
material acquisition and prompt delivery of completed goods to wholesalers and retailers. This
could entail controlling inventory levels, streamlining logistics, and building solid connections
with suppliers.
4. Packaging and Distribution: Selecting the best ways to package the beer cans or bottles and
making sure they are delivered to retailers or wholesalers quickly. This include coordinating
with distributors, scheduling transportation, and planning logistics.
5. Marketing and Branding: Creating marketing plans to draw customers, advertise beer
products, and raise brand awareness. This could involve running marketing campaigns, getting
sponsorships, being active on social media, and interacting with clients in different ways.
6. Customer Service: Maintaining good customer service by resolving inquiries, handling
complaints, and guaranteeing customer satisfaction. This could entail setting up channels for
consumer feedback and constantly enhancing the offering in accordance with user preferences.
It is crucial to note that these ideas establish a broad approach, and the precise operation plan of
Saint George beer may differ dependent on their unique business model, target market, and
competitive environment.

V. Location

Recently moved its factory and head office from Lideta area in the capital Addis Ababa to
Sebeta town, some 25 kilometers west of Addis Ababa, the capital city of Ethiopia, Saint
George beer is a well-known beer brand in Ethiopia with numerous branches and distribution
facilities spread throughout the country.

VI. Organizing Human Resource

The organizing of human resources at Saint George Beer involves various processes and
considerations. Some key aspects to consider in organizing human resources at Saint George
Beer include:

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1. Workforce Planning: Assess the current workforce and identify future needs based on the
brewery's strategic goals and objectives. This involves analyzing staffing requirements, skills
gaps, and projected growth.

2. Job Analysis and Descriptions: Conduct a comprehensive analysis of each job role at the
brewery to understand the tasks, responsibilities, qualifications, and competencies required.
Develop accurate job descriptions to guide recruitment and selection processes.

3. Recruitment and Selection: Implement effective recruitment strategies to attract qualified

candidates. This may include advertising job openings, utilizing online job boards, networking,
and collaborating with educational institutions. Develop a systematic selection process,
including screening resumes, conducting interviews, and assessing candidates' skills and cultural
fit.

4. Onboarding and Training: Design and implement an onboarding program to ensure new
employees are familiarized with the brewery's values, policies, and procedures. Provide
adequate training and development opportunities for both new hires and existing employees to
enhance their skills and knowledge.

5. Performance Management: Establish a performance management system that includes setting

clear performance expectations, conducting regular feedback sessions, and providing
opportunities for professional growth. Implement performance appraisal processes to evaluate
employee performance and provide constructive feedback.

6. Employee Relations: Foster a positive work environment by promoting open communication,

addressing employee concerns and grievances, and recognizing employee achievements.
Develop policies and procedures to ensure fair treatment, diversity and inclusion, and
compliance with labor laws.

7. Compensation and Benefits: Design a competitive compensation structure that aligns with
industry standards and acknowledges employees' contributions. Offer attractive benefits
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 packages, such as healthcare, retirement plans, and other incentives, to attract and retain top
talent.

8. Employee Engagement and Retention: Implement initiatives to enhance employee

engagement, such as team-building activities, recognition programs, and opportunities for career
advancement. Regularly assess employee satisfaction levels and address any concerns to
improve retention rates.

9. HR Information Systems: Utilize technology solutions, such as HR management software, to

streamline HR processes, maintain accurate employee records, and generate necessary reports
for decision-making.

It's important to note that the specific strategies and approaches to organizing human resources
may vary based on Saint George Beer's unique needs and circumstances.

VII. Supply Chain Management

Supply chain management at Saint George Beer involves the coordination and management of
various activities from sourcing raw materials to delivering the final product to customers.
Here's an overview of how supply chain management might be implemented at Saint George
Beer:

1. Sourcing: The supply chain management process begins with identifying and selecting
suppliers for the necessary raw materials, such as malt, hops, water, and yeast. Factors like
quality, cost, and reliability are considered when choosing suppliers.

2. Procurement: Once suppliers are selected, procurement activities revolve around negotiating
contracts, placing purchase orders, and managing the overall relationship with suppliers. This
includes ensuring on-time delivery, quantity accuracy, and compliance with quality standards.

3. Production Planning: Supply chain management also involves planning the production
process, including demand forecasting, batch scheduling, and capacity management. Efficient
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 production planning helps ensure a smooth flow of materials throughout the production cycle.

4. Manufacturing: In the manufacturing phase, raw materials are transformed into finished
products. This includes processes like mashing, fermentation, filtration, and packaging. Supply
chain management aims to optimize these operations to minimize waste, reduce costs, and
maximize throughput.

5. Distribution: Once manufactured, the beer needs to be distributed to retailers or wholesalers.

This involves transportation logistics, warehousing, inventory management, and order
fulfillment. Supply chain management ensures timely delivery, appropriate shelf-life
management, and accurate tracking of inventory levels.

6. Customer Relationship Management: Supply chain management also encompasses managing

relationships with retailers and end customers. It involves initiatives like customer service, order
visibility, collaborative planning, and information sharing to meet customer demands
effectively.

7. Sustainability and Compliance: Supply chain management within the Saint George Beer
supply chain may include sustainability practices, such as reducing carbon emissions,
minimizing waste, and optimizing energy usage. Compliance with legal and regulatory
requirements is also a crucial aspect of supply chain management.

In summary, supply chain management at Saint George Beer involves coordinating the flow of
materials, optimizing production processes, ensuring on-time delivery, managing inventory, and
maintaining good relationships with suppliers and customers throughout the entire supply chain.

VIII. Inventory
Inventory management at Saint George Beer involves the management of raw materials, work-
in-progress, and finished goods inventory. Here are some key aspects of inventory management
at Saint George Beer:

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 1. Inventory Planning: Saint George Beer plans its inventory based on demand forecasting and
production schedules. The company maintains a reserve inventory of 2-3 days to meet
unexpected demand.

2. Just-in-Time (JIT) Production: Saint George Beer has shifted its production to Just-in-Time
(JIT) production, which makes inventory cost less and demands significantly less space for
inventory storage. JIT production helps to reduce inventory holding costs and minimize waste.

3. Inventory Control: Saint George Beer uses inventory control techniques to manage inventory
levels and ensure that the right amount of inventory is available at the right time. This includes
setting inventory targets, monitoring inventory levels, and implementing reorder points.

4. Inventory Tracking: Saint George Beer tracks inventory levels using inventory management
software. This software helps to track inventory levels, monitor inventory movements, and
generate inventory reports.

5. Inventory Auditing: Saint George Beer conducts regular inventory audits to ensure that
inventory levels are accurate and to identify any discrepancies. This helps to prevent inventory
shrinkage and improve inventory accuracy.

6. Inventory Optimization: Saint George Beer continuously optimizes its inventory levels to
minimize inventory holding costs while ensuring that the right amount of inventory is available
to meet customer demand.

Overall, effective inventory management is critical to the success

IX. Scheduling
Scheduling at Saint George Beer involves coordinating and planning the various tasks and
activities involved in beer production. Here are some key aspects of scheduling at Saint George
Beer:

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1. Production Planning: An effective production plan considers factors like market demand,
product mix, production volume, lead times, and storage requirements. It involves scheduling
the production activities to optimize resources and minimize downtime or bottlenecks in the
production line.

2. Capacity Determination: The capacity of a brewery is determined by factors such as the size
of brewing vessels, fermentation time, packaging speed, and overall process efficiency. It is
important to evaluate the production capacity in terms of barrels or liters of beer produced per
unit of time, taking into account both current and future demand projections.

3. Batch Scheduling: Scheduling the brewing process, fermentation, filtration, conditioning, and
packaging to ensure that each batch is produced on time and meets quality standards.

4. Equipment Maintenance: Scheduling regular maintenance and cleaning tasks to avoid

unplanned downtime and ensure that equipment is in good working condition.

5. Raw Material Availability: Ensuring that an adequate supply of ingredients like malt, hops,
yeast, and water is available when needed.

6. Packaging and Logistics: Coordinating the packaging process (bottling or canning) and
scheduling transportation to warehouses or distribution centers.

7. Order Fulfillment: Prioritizing orders based on urgency and maintaining a balanced

production schedule to fulfill customer requirements.

By implementing effective scheduling practices, Saint George Beer can optimize production
efficiency, minimize downtime, and meet customer demand.

X. Maintenance
Maintenance in the context of Saint George Beer involves ensuring the optimal conditions for
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beer production and storage to preserve quality and freshness. Here are some aspects of
maintenance at Saint George Beer:

1. Equipment Maintenance: Regular maintenance of brewing equipment, fermentation tanks,

packaging machinery, and other production-related equipment is essential to ensure efficient and
safe operations.

2. Facility Maintenance: Maintenance of the brewing facility, including cleaning, sanitation, and
upkeep of the production environment, is crucial to prevent contamination and maintain quality
standards.

3. Quality Control: Implementing quality control measures to ensure that all equipment and
facilities meet the required standards for producing high-quality beer.

4. Storage Conditions: Maintaining proper storage conditions for raw materials, work-in-
progress, and finished products to preserve their quality and freshness.

5. Cleaning and Sanitization: Regular cleaning and sanitization of brewing equipment, storage
tanks, and packaging facilities to prevent contamination and ensure product quality.

6. Equipment Calibration: Regular calibration of brewing and packaging equipment to maintain

accuracy and consistency in the production process.

7. Preventive Maintenance: Implementing a preventive maintenance program to identify and

address potential issues before they lead to equipment breakdown or production disruptions.

By prioritizing maintenance activities, Saint George Beer can ensure consistent product quality,
operational efficiency, and compliance with industry standards and regulations.

PURPOSE OF THE COMPANY

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The purpose of BGI Ethiopia, the company behind Saint George Beer, is to provide quality
beverages to consumers in Ethiopia and beyond. The company objectives likely include:

1.Satisfying Consumer Demand: BGI Ethiopia aims to meet the demand for high-quality beer in
the Ethiopian market by producing a popular and well-loved beverage like Saint George Beer.

2. Economic Development: The company likely contributes to the economic development of

Ethiopia by providing employment opportunities, supporting local suppliers, and contributing to
the country's tax revenue.

3. Brand Recognition: BGI Ethiopia likely seeks to build a strong brand presence and
recognition for its products, such as Saint George Beer, both within Ethiopia and internationally.

4. Quality and Consistency: The company likely focuses on maintaining the quality and
consistency of its products, ensuring that consumers can trust the taste and reliability of Saint
George Beer.

5. Social Contribution: BGI Ethiopia may also have objectives related to corporate social
responsibility, such as promoting responsible drinking, investing in community development
projects, and supporting sustainable business practices.

Overall, the purpose of BGI Ethiopia is likely aligned with creating value for its consumers,
employees, and the broader Ethiopian society.

OPERATIONAL MANAGEMENT EFFECT ON PERFORMANCE

Operational management plays a crucial role in determining the performance of Saint George
Beer in Ethiopia. Here are some ways in which operational management can impact the beer's
performance:

1. Quality Control: Implementing effective quality control processes ensures that the beer
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consistently meets high standards. This helps to maintain customer satisfaction and loyalty, as
well as protect the brand's reputation.

2. Supply Chain Management: Efficiently managing the supply chain is crucial for sourcing raw
materials, production, and distribution. Optimizing the supply chain helps reduce costs,
minimize wastage, and ensure timely availability of the beer to meet consumer demand.

3. Production Efficiency: Streamlining production processes and utilizing technology effectively

can increase productivity and decrease production costs. Enhanced efficiency allows for higher
production volumes, shorter lead times, and better utilization of resources.

4. Distribution and Logistics: Effective distribution and logistics management ensure that Saint
George Beer reaches its target markets efficiently and on time. It involves optimizing
transportation routes, managing inventory levels, and coordinating with distributors to meet
customer demands promptly.

5. Inventory Management: Maintaining optimal inventory levels is critical to prevent stockouts

or excess inventory. Effective inventory management minimizes carrying costs while ensuring
sufficient stock to meet consumer demand.

6. Quality Assurance and Compliance: Adhering to quality assurance standards and complying
with regulatory requirements are essential for the beer industry. Ensuring compliance helps to
maintain product safety, legality, and consumer trust.

7. Cost Management: Implementing cost-effective strategies in operational management helps to

keep production costs low while maintaining product quality. This can be achieved through
efficient resource allocation, process improvement, and strategic sourcing.

8. Continuous Improvement: Establishing a culture of continuous improvement in operational

management leads to enhanced performance over time. Regularly reviewing and refining
processes, employing feedback mechanisms, and embracing new technologies help drive
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innovation and maintain competitiveness.

Overall, effective operational management positively impacts performance of Saint George Beer
in Ethiopia by ensuring quality, timely availability, cost efficiency, and customer satisfaction.

CONCLUSION

In conclusion, operational management plays a critical role in the success of any business,
including Saint George Beer Factory. The decision areas of operational management, including
design of goods and services, quality management, process and capacity design, layout design
and strategy, location, organizing human resources, supply chain management, inventory,
scheduling, and maintenance, all have a significant impact on the performance of the
organization.

Effective operational management practices can lead to increased productivity, efficiency,

quality, customer satisfaction, employee engagement and retention, and financial performance.
It is essential for organizations to implement and continuously improve their operational
management practices to remain competitive and achieve their strategic goals.

The term paper or visit report on the ten decision areas of operational management at Saint
George Beer Factory provides valuable insights into the operations of the organization and can
serve as a useful reference for other businesses in the beer industry or those seeking to improve
their operational management practices.

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RECOMMENDATION

Based on the findings of the term paper or visit report on the ten decision areas of operational
management at Saint George Beer Factory, here are some recommendations for the
organization:

1. Invest in Quality Management: Saint George Beer Factory should continue to prioritize
quality management practices to ensure consistent product quality and customer satisfaction.
This can include implementing rigorous quality control measures, regular sensory evaluations,
and adherence to strict hygiene and sanitation standards in the beer-making facility.

2. Optimize Supply Chain Management: The organization should focus on optimizing its supply
chain management practices to ensure smooth procurement, timely delivery, and effective
inventory management. This can involve establishing strong relationships with suppliers,
optimizing logistics, and managing inventory levels.

3. Improve Employee Engagement and Retention: Saint George Beer Factory should prioritize
employee engagement and retention by implementing effective human resource practices, such
as onboarding, training, performance management, and employee relations. Engaged and
satisfied employees are more likely to contribute to improved overall performance.

4. Explore Export Opportunities: The organization should explore the potential for exporting its
beer products to international markets if feasible. This can open up new business opportunities
and increase revenue.

5. Invest in Sustainability: Saint George Beer Factory should consider adopting sustainable
practices to align with consumer preferences and environmental concerns. This can include

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using renewable energy sources, implementing water conservation techniques, practicing
responsible waste management, and minimizing the use of harmful chemicals.

By implementing these recommendations, Saint George Beer Factory can improve its
operational management practices and achieve higher levels of performance, customer
satisfaction, and profitability.

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REFERENCES
9, 2023

1. Berry Advertising, H.Z. (no date) BGI Ethiopia. Available at: https://bgiethiopia.com/
(Accessed: 14 December 2023).
2. Yoga, D. (2023, January 16). 10 Essential Decisions in Operations Management and Its
Role in Your Business. Nimbly Technologies -. https://hellonimbly.com/10-essential-
decisions-in-operations-management-and-its-role-in-your-business/
3. A. (2016, September 21). 10 Critical Decisions of Operations Management | Kettering
University Online. https://online.kettering.edu/news/critical-decisions-operations-
management
4.

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