WONJI/SHOA SUGAR FACTORY

Proposal Title:

Replacement of Existing Computer Equipment

and

Printing Machines

Date: /6/03/2024

Proposed by:

Planning Management and Information Service

I. Executive Summary

The organization has successfully implemented a strategic plan for the phased replacement of
desktop computers, laptops, and printing machines over multiple fiscal years. The replacement
process is divided into three phases for each type of equipment, with specific quantities and
budget proposed outlined for each phase.

For desktop computers, the first phase involves replacing 105 units over 2016 and 2017 with an
estimated budget of 2,299,056 Birr. The second phase include 81 units in 2018 with a total
estimated budget of 5,518,000 Birr, while the third phase replaced 37 units in 2019 with
estimated budget of 2,177,000 Birr.

In terms of laptop computers, the first phase involves replacing 16 laptops in 2016 and 2017
with an estimated budget of 1,440,000 Birr. The second phase involves replacing 17 laptops in
2018 with estimated budget of 1,530,000 Birr, and the third phase replacement will be 3 laptops
in 2019 with estimated budget for 270,000 Birr.

Lastly, printing machines will also be replaced in three phases. The first phase replacement plan
is 7 machines in 2016 and 2017 with an estimated budget of 357,000 Birr. The second phase
involves replacing 15 machines in 2018 with an estimated budget of 765,000 Birr, while the third
phase replace 15 machines in 2019 with an estimated budget of 561,000 Birr.

Overall, the systematic approach to equipment replacement will ensure that the organization's IT
infrastructure remains up-to-date and supports operational efficiency. The final phase of
replacements is scheduled for 2019 EFY, marking the completion of this strategic initiative.
II. Introduction:
The aim of this proposal is providing a more efficient and smooth operation of replacing existing
computer equipment and printing machines that has deteriorated and is no longer efficient or
effective. This proposal is looking towards improving the latest technologies due to the
computers and printing machines are used more than years and in need of improvement. Besides
that, by replacing the old computer and printing machines to the modern technologies will
improve workflow, productivity; reduce repair costs and application of system improvement
initiatives such as ERP implementation.

III. Scope of the proposal

The proposal is to assess and plan for the replacement of existing computers and printing
machines within the organization’s department and services. The study has evaluated the current
existing conditions of equipment’s, prioritize necessary upgrades, and propose a cost-effective
replacement alternative.

IV.Statement of the problem

Wonji/Shoa Sugar Factory is currently facing a critical issue with its existing computer
equipment and printing machines. The deteriorated state of these devices is hindering the
efficiency and productivity of our operations. The outdated computers are slow, prone to
frequent failures, and unable to support the latest software applications essential for our daily
tasks. Similarly, the identified printing machines are not properly working, resulting in delays in
producing essential documents and reports.

This situation is impacting the overall performance of the factory, leading to decreased output,
increased downtime, and potential errors in data processing. Without reliable and up-to-date
computer equipment and printing machines, we are at risk of falling behind in our operations and
failing to meet the demands of our stakeholders.

To address this pressing issue, it is imperative to replace the existing deteriorated computer
equipment and printing machines with modern, efficient, and reliable technology. This upgrade
will not only improve the efficiency and effectiveness of our operations but also ensure that we
can continue to meet the demands of a competitive market and maintain our reputation as a
leading sugar factory in the country.

V. Description of the Situation

Managing the maintenance and upgrading of computer equipment and printing machines are
crucial for smooth operations. Neglecting these tasks can lead to delays, reduced productivity,
frequent breakdowns, lower-quality outputs and inefficiencies in workflows, software
compatibility issues, interruptions in daily operations, increased repair costs , data ruptures, and
limitations in strategic decision-making.

VI.Significance of Replacement
The significance of replacing the existing computer and printing machines extends beyond just
upgrading equipment – it is a strategic investment in the future success and competitiveness of
the factory and it includes:

• To enhance operational efficiency, smooth workflow, processing time and employee

productivity through upgrading to modern technology.
• To save costs by reducing downtime due to equipment failures.
 • Modern technology can help improve quality management system, ensuring that products
meet high standards and customer expectations. This can enhance the reputation of the
factory and lead to increased customer satisfaction.
• By investing in modern technology, the organization can stay competitive in the sugar
industry, keep up with technological advancements, and meet the evolving needs of
customers and stakeholders.

VII. Options to address replacement of existing computer equipment and

printing machines:
Replacing old computers and printing machines is a strategic move that will benefit both
employees and the organization. We seek approval from top management to proceed with this
initiative, ensuring a more efficient and secure work environment.

We have analyzed optimal replacement options that enhance performance, reliability, and
longevity as 1st phase, 2nd phase, and 3rd phase replacement priority respectively

7.1. Replacement of Desktop computer

“A” replacement priority (1st phase)
Department Quantity proposed Estimated Budget
2016 2017 2016 2017
Human Resource 10 11 140008 210008
Finance department 28 39 541020 237020
FESD 1 3 121,000 140,000
Agriculture department 4 9 280,000 630,000
Total 43 62 1,082,028 1,217,028
 “B” replacement priority (2nd phase)
Quantity proposed Estimated Budget
Department
2018 2018
Harvesting team 4 280,000
Civil and irrigation department 22 1,540,000
LPCD 3 210,000
Facility & Property Administration 17 1,133,000
Factory Division 21 1,451,000
Research & Extension 6 401,000
FESD 3 210,000
Agriculture department 5 293,000
Total 81 5,518,000

“C” replacement priority (3rd phase)

Quantity proposed Estimated Budget
Department
2019 2019
Hospital 7 414,000
Under GM office 21 1,190,000
procurement (A.A) 9 573,000
Total 37 2,177,000
Based on the information provided, it is evident that there is a structured plan for the replacement
of desktop computer equipment in different priority departments over multiple phases. Each
phase targets specific departments and proposes a budget for the replacement of Desktop
computer equipment. Here is a summary of the proposed replacements for each phase:

1st Phase Replacement:

“A” replacement Priority Departments: Human Resource, Finance Department, FESD, and
Agricultural Department

Quantity: 43 units in 2016 EFY, 62 units in 2017 EFY

Total Cost: 1,082,028 Birr in 2016 EFY, 1,217,028 Birr in 2017 EFY

Overall Budget: 2,299,056 Birr for 105 units in 2016 EFY and 2017 EFY

2nd Phase Replacement:

“B” replacement Priority Departments: Harvesting team, Civil & Irrigation Department,
LPCD, Facility and property administration, Factory Division, Research and extension, FESD,
and Agricultural Department

Quantity: 81 units in 2018 EFY

Total Cost: 5,518,000 Birr

3rd Phase Replacement:

“A” replacement Priority Departments: Hospital, Under GM office, and procurement (A.A)

Quantity: 37 units in 2019 EFY

Total Cost: 2,177,000 Birr

By following this phased approach to replacing desk top computer equipment in “A”, “B”&
“C” priority departments, the organization can ensure a systematic and cost-effective upgrade of
technology infrastructure to support the operational needs of each department. This approach
helps in budget planning, resource allocation, and ensuring that critical departments receive the
necessary equipment upgrades in a timely manner.

7.2. Replacement of Lap top computer

“A” replacement priority (1st phase)
Quantity proposed Estimated Budget
Department
2016 2017 2016 2017
Human Resource 1 3 90,000 270,000
Finance department 1 1 90,000 90,000
FESD 1 2 90,000 180,000
LPCD 1 90,000 -
Factory division 1 2 90,000 180,000
Civil and irrigation
1 90,000
department
Hospital 1 90,000
Under GM 1 90,000
Total 5 11 450000 990000
nd
“B” replacement priority (2 phase)
Quantity proposed Estimated Budget
Department
2018 2018
Civil and irrigation department 2 180,000
Agriculture department 4 360,000
Facility & Property
2 180,000
Administration
Under GM 9 810,000
1,530,000
Total 17
“C” replacement priority (3rd phase)
Quantity proposed Estimated Budget
Department
2019 2019
Hospital 3 270,000
Based on the additional information provided, it is clear that there is a detailed plan for the
replacement of laptop computers in different priority departments over multiple phases. Here is a
summary of the proposed replacements for each phase:

1st Phase Replacement:

“A” replacement Priority Departments: Human Resource, Finance Department, FESD,

LPCD, Factory Division, Civil & Irrigation, Hospital, and Under GM

Quantity: 5 laptops in 2016 EFY, 11 laptops in 2017 EFY

Total Cost: 450,000 Birr in 2016 EFY, 990,000 Birr in 2017 EFY

Overall Budget: 1,440,000 Birr for 16 laptops in 2016 EFY and 2017 EFY

2nd Phase Replacement:

“B” replacement Priority Departments: Civil and Irrigation Department, Agriculture

Department, Facility & Property Administration, Under GM, and Research & Extension

Quantity: 70 laptops in 2018 EFY

Total Cost: 1,530,000 Birr

3rd Phase Replacement:

“C” replacement Priority Departments: Only Hospital

Quantity: 3 laptops in 2019 EFY

Total Cost: 270,000 Birr

By following this phased approach to replacing laptop computers in “A”, “B”& “C” priority
departments, the organization can ensure that employees have access to up-to-date
technology to enhance their efficiency and productivity. The planned investments in laptop
replacements demonstrate a commitment to providing staff with the necessary tools to excel
in their roles and contribute to the overall success of the organization.
 7.3. Replacement of printing machines
“A” replacement priority (1st phase)
Quantity proposed Estimated Budget
Department
2016 2017 2016 2017
Finance department 1 1 51000 51000
FESD 1 51000
Human Resource 3 153000
Harvesting team 1 51000
Total 3 4 153,000 204,000

“B” replacement priority (2nd phase)

Quantity proposed Estimated Budget

Department
2018 2018
Agriculture department 4 204000
Facility & Property Administration 4 204000
Factory Division 1 51000
Research & Extension 1 51000
Finance department 2 102000
FESD 1 51000
Civil and irrigation department 1 51000
LPCD 1 51000
Total 15 765,000

“C” replacement priority (3rd phase)

Quantity proposed Estimated Budget
Department
2019 2019
Hospital 5 255000
Under GM 4 0
procurement (A.A) 3 153000
Factory Division 3 153000
Total 15 561000

Based on the detailed information provided, here is a summary of the proposed replacement plan
for printing machines in different priority departments over multiple phases:
1st Phase Replacement:
“A” replacement Priority Departments: Finance Department, FESD, Human Resources, and
Harvesting Team
Quantity: 3 printing machines in 2016 EFY, 4 printing machines in 2017 EFY
Total Cost: 153,000 Birr in 2016 EFY, 204,000 Birr in 2017 EFY
Overall Budget: 357,000 Birr for 7 printing machines in 2016 EFY & 2017 EFY

2nd Phase Replacement:

“B” replacement Priority Departments: Agriculture Department, Facility & Property
Administration, Factory Division, Research & Extension, Finance Department, FESD, Civil &
Irrigation Department and LPCD
Quantity: 15 printing machines in 2018 EFY
Total Cost: 765,000 Birr

3rd Phase Replacement:

“B” replacement Priority Departments:: Hospital, Under GM, Procurement (A.A), Factory
Division
Quantity: 15 printing machines in 2019 EFY
Total Cost: 561,000 Birr
By implementing a phased approach to replacing printing machines in priority departments, the
organization can improve operational efficiency and productivity. The planned investments in
printing machine replacements demonstrate a commitment to providing essential equipment to
support the daily operations of various departments. This strategic initiative will contribute to
enhancing overall workflow and output within the organization.
By prioritizing replacement of equipment’s in all the departments, we can streamline
• workflow processes,
• improve data management,
• enhance communication capabilities,
• support the day-to-day operations
• Facilitate document processing,
• increase printing speed and quality,
• Reduce downtime associated with outdated equipment of each department.
This strategic investment aligns with our vision to become center of excellence, create favorable
working environment for our employees and optimize the effectiveness of organization’s quality
management system (QMS) requirement.
In general all the three replacement phases 'A', 'B' & 'C' priority departments represents a critical
step towards optimizing operational effectiveness and laying the groundwork for future
application of system improvement initiatives like ERP implementation.

VIII. Pros and Cons of Replacement:

While replacement offers several advantages, it’s essential to weigh them against the associated
costs and potential disruptions

8.1. Pros of Replacement:

• New equipment will likely operate faster and more efficiently.
• Enhanced productivity due to reduced downtime and faster processing.
• Fresh hardware is less disposed to breakdowns and errors.
• Reduced maintenance costs and fewer interruptions.
• New purchases come with warranties, providing peace of mind.
• Repairs or replacements covered during the warranty period

8.2. Cons of Replacement

• Initial investment can be significant.
• Budget constraints may limit the feasibility of replacement.
• Transferring data from old to new devices can be complex and time consuming.
• Ensuring data reliability and compatibility.
• Installation and setup may cause temporary disruptions.
• Balancing replacement timing to minimize workflow impact

IX. Actions to be taken by Users & IT Professionals Post-Budget Decision on

resource utilization.
If the top management have a commitment for the budget decision for the replacement of
computer equipment and printing machines, users and IT professionals shall play a crucial role in
ensuring sustainable resource utilization. Here are some actions that users and IT professionals
has to take:
• Users have to attend training sessions that will be conducted by IT professionals to
familiarize themselves with the new equipment and understand its features and capabilities.
• Users will actively adopt sustainable practices in their daily use of the equipment, such as
turning off computers when not in use, printing only when necessary, and recycling old
equipment properly.
• Users will Provide feedback on the performance, usability, and sustainability features of the
equipment that will help identify areas for improvement and optimization
• IT professionals will schedule Regular cleaning, software updates, and preventive
maintenance that prolong the lifespan of the equipment and reduce the need for frequent
replacements
• Users and IT professionals will collaborate closely to identify opportunities for continuous
improvement in resource utilization, and waste reduction..

X. Conclusion:
In summary, we have strategically planned and executed the replacement of desktop computers,
laptops, and printing machines over multiple fiscal years. The phased approach included budget
proposed for each phase, with specific quantities of units to be replaced in each phase. The total
costs for each phase has outlined, ensuring that the organization's IT equipment remains updated
and supports operational efficiency. The final phase of replacements is scheduled for 2019 EFY,
completing the systematic upgrade of essential equipment within the organization.
Our proposal recommends the replacement of deteriorated computer equipment and printing
machines within our organization. The existing equipment suffers from slow performance,
frequent breakdowns, and incompatibility with modern software. The proposed solution involves
upgrading to advanced computers and advanced printing machines, ensuring faster processing
speeds, reliability, and improved document management.
Investing in new computer equipment and printing machines is essential for maintaining
operational efficiency and staying competitive. We seek approval from top management to
proceed with this vital upgrade.