Relocation Feasibility Study and Communication Improvement of Microgreen Production at PicoGro CC

Abstract

The aim of this project is to determine the feasibility of the relocation of greenhouses at PicoGro CC. Edible greens called microgreens are produced at Pico 1, a farm located three kilometres away from where the microgreens are packaged and shipped. Microgreens are highly sensitive to their environment and can easily be damaged during harvesting or if handled incorrectly. Because microgreens are harvested while they are young, they need to be kept at precisely the correct temperatures to extend their short shelf life. Pico1 is experiencing problems with the management of microgreen production. The internal supply chain from sowing to shipping is frequently interrupted by poor communication and coordination. Orders are often fulfilled late or low-quality produce is supplied due to poor information flow. Other scheduling problems relating to the sowing and cutting of the produce that contribute to late delivery and low-quality product are also present. This project aims to consider three alternative options, namely greenhouse relocation, implementation of an information system and taking no action. The feasibility of relocating the greenhouses from Pico1 to the main farm so that unnecessary handling can be eliminated was investigated. The savings associated with the relocation included labour, overtime wages and fuel costs. The total cost of relocating the greenhouses was calculated to be R2 195 970,00 and the Net Present Value for this project was calculated as -R576 000,00, with the negative value indicating a loss. An additional solution that was considered was the implementation of an information system. The basic information system was designed using several diagrams and techniques resulting in the compilation of an entity relationship diagram. The information system is best suited for use in a Microsoft Access database which was compared to Microsoft Dynamics 365 and found to be a better option due to price and customisability. An extension of this option was suggested in which a visual information dashboard is integrated into the information system using Microsoft Visio. The dashboard would allow employees to record data in real time and from their location in the greenhouse using a portable device. The resulting data could be analysed and used to improve operations. The three options were compared and scored according to financial feasibility, effectiveness in addressing the problem and ease of implementation. It was suggested that the best option would be to implement an information system as it is the least risky option and allows for future development. The information system should be developed further and linked to systems regarding other aspects of the company to form a useful management tool.