Agricultural institutions contribute toward supporting the legislature in accomplishing food security in many countries. The Food and Agriculture Organization (FAO) of the United Nation is a non-profit organization with the goal to eradicate famine, malnutrition, and food shortages. As a result, the organization provides operational management to surmount the challenges of food production. Thus, an effective management system will reduce rural hunger and malnutrition. The non-profit organization is an appendage of the United Nations with the vision of accomplishing nourishment adequacy and diminishing the neediness levels. Considering that 75% of the Algerian population rely on agriculture for sustenance and wages, this study examines the operational management practices of the FAO in tomato, potato, and onion production. The objective of the operation management is to sustain agriculture, maximize profit, and eradicate hunger.
In Algeria, farming is a vital part of the national economy. The agriculture landmass of the nation covers 91 percent of the 1,541 districts. By implication, the Algerian agriculture sector gives immediate jobs to14 million Algerians who live in provincial zones, enhancing the living status of numerous families. Further, it is perceived that horticultural livelihoods produce three different sorts of occupation, which includes transport, exchange, and value. Considering horticulture and rustic improvement arrangements system, food production is described by an extraordinary connection that interfaces monetary action, family structure, and the domain. This study reviewed the operations supervision techniques enforced by FAO for tomatoes, potatoes, and onion production in Algeria. To fulfill this objective, the study was guided by the accompanying exploration goals, which include operational management techniques utilized by the organization, the challenges of profit maximization, and the correlation between operational management and crop performance.
The operations department within the FAO manages the operations and conversion of farm seeds, inputs to crop yields. Operational administration practices include item and process outline, supply arrange outline, stock arrangement, and control, scope, organization, store network, venture operations, quality management, design, change, and hazard evaluation (Slack, Chambers and Johnston 110). Operational management is the company’s accomplishment measured against a standard or endorsed pointer of adequacy, productivity, process duration, profitability, waste degeneration, and administrative consistency (Stevenson 78). Operations change, profitability, and performance are indicators of effective management. Operational administration is the arrangement of all units inside an organization to guarantee compliance to accomplish specific business objectives. At a key level, execution goals identify with the interests of the operation’s partners. In this analysis, the operation partner is Algeria. Thus, operation management performance mitigates the constraints facing crop production in Algeria. The constraints faced by a famer in Algeria include education status, legal status of arable land (Land Use Act), and age of participants and inadequate social and credit facilities.
The dynamic nature of farmers’ production conditions in Algeria prompts a multifaceted decision-making process. Operational managers must choose an effective production plan to accomplish better results or monetary proficient generation. Both horticultural ventures and individual homestead family units make synchronous choices concerning resource allocation, advertisement marketing, and funds. Applying the right innovation is insufficient, thus agriculturists require certain learning in agricultural business management (Barnes 34). Food production and planning is an overwhelming process, wherein the yield relations, yield cost value proportions, access to common assets, and the rancher’s inclinations must be considered (Chenhall 50). Consequently, the challenge of tomato, potato, and onion production planning can be associated with linear programing. By implication, the operational management wing of the organization must categorize the production plan of these vegetable crops as challenges of resource allocation and profit maximization.
The FAO developed a linear programming method to accommodate different vegetable production plan in Algeria. The approach empowers investigations of changing farm practices for vegetable production structures at different levels and farming conditions. Thus, the linear programing model is associated with the estimated gross margin, and constraints within the farm environment. Please note that different variables are analyzed based on the farming conditions. Consequently, the production plan of the sampled farms must be harmonized using the linear programing (LP) model. The LP model can be tested in MS Excel. The approach of this model is to characterize the mechanical coefficients for innovations connected to specific crop production. Please note that the production plan and operations for each crop must have a harmonized budget. Thus, the farm’s wage and expense figures must be analyzed using the linear programing model. By implication, the farm expenditures are mapped with hectare measurements.
The operations department within the FAO manages the operations and conversion of farm seeds, inputs to crop yields. Operational administration practices include item and process outline, supply arrange outline, stock arrangement and control, scope, organization, store network, venture operations, quality management, design, change, and hazard evaluation (Slack, Chambers, Johnston 101). Operational management is the company’s accomplishment measured against a standard or endorsed pointer of adequacy, productivity, process duration, profitability, waste degeneration, and administrative consistency (Stevenson 40).
The LP model incorporates 162 choice factors categorized into four clusters. The main cluster describes the most illustrative vegetable yields in Algerian horticulture. At this stage, three vegetable yields are incorporated into the model. The crops include tomatoes, potatoes, and onions. The second group displays the farming resources and inputs. Farm inputs include herbicides, pesticides, fertilizers, seedlings, arable land, and labor. The third gathering of exercises catches the framework limit of the ranch. The fourth group describes the balance production plan of the farm. However, the LP model offers extra plausibility to pick activities that enhance profit maximization and operational performance. The choice of a farmer depends on the farming constraints and available resources. By implication, the education status of famers, legal status of arable land, farmer’s age, labor, and seeds are categorized based on the model framework (Dilworth 46). Limitation for accessible land must be categorized as a constraint in the LP model. The accessibility limitation is considered as a seasonal variable in the LP model, thus family association can replace labor constraints.
The labor variable for this model must be divided on a monthly basis to accommodate the workload for different planting seasons. This principle is particular to vegetable generation, because of the uneven appropriation of labor activities. For example, labor activities are intensive during the seedling and harvest phase. Further, as an imperative endogenous requirement, the operating capital for this variable is categorized as an independent constraint in the model. Consequently, constraints that affect the supply chain are considered in the model. The constraints, which include market and approach requirements, can be external or internal factors of production.
The market confinements are seen through attractive amount limits, while the approach imperatives consider the country’s horticultural criteria. Finally, the balance constraints, which include land availability, number of farm locations, and resource cost supplement the linear programming model. The LP model supports the evaluation of shadow cost, which include social opportunity expenses of the assets utilized and resource cost analysis (Dreze and Stern 1994). In a LP model, the shadow costs, which are viewed as double factors, demonstrate the minor estimations of the marginal coefficients of assets utilized. Thus, the model ascertains the shadow costs by which the aggregate marginal value would be expanded additional unit of arable land utilized during the cropping season.
Speculative Data Analysis of the Linear Programing Model
Diverse sources of data must be utilized for supporting the instrument. Essential information for computing the venture spending plans include pertinent specialists: scientists, innovation experts, augmentation specialists, input suppliers, and vegetable ranchers. However, the farm’s budget expenditures must be calculated using the current production practice. Each farm space should be allocated using specific hectare dimensions. For example, the farm plot can be set at 4 hectares per crop. As a result, tomato, onion, and potato production will carry single plots of four hectares.
The supposition is that the homestead has framework for vegetable production under plastic passages that could be used at one hectare of arable land. However, the model accommodates additional hectare of plastic passages for cultivation. Please note that labor accessibility is estimated at 5,500 hours per year. Consequently, labor wages should be paid daily based on the LP model.
In looking for an ideal generation arrangement, it is imperative to perceive the model’s stability for profit maximization. Consequently, the model must be flexible to accommodate changing production conditions and practices. Three diverse situations have been utilized to examine the impact of the most restricting constraint in cultivating tomatoes, onions, and potatoes in Algeria. The fundamental distinction among model scenarios is in market and capital imperatives.
Figure 1. Linear programing model scenarios for tomato, onion, and potato cultivation in Algeria.
The operations management practices for the production of tomatoes, onions, and potatoes in Algeria as applied by FAO include human resources, supply chain management, inventory practices, maintenance, quality management, location strategy, scheduling practices, labor management, and quality of harvest, layout strategy, process, and capacity design (Food and Agricultural Organization 3).
The LP model must align with the cultural practices of cultivating vegetables. By implication, the operations department within the organization must sensitize farmers on the vegetable best practices. The operations management categories include transplant practices, plastic mulch cultivation, irrigation practices, fertilizer management, weed control, sprayer management, insect management, diseases, psychological challenges, and marketing and production cost.
Tomato cultivators can undertake spending plans to gauge production and initial investment costs. Spending plans incorporate cost for those variables that improve crop yield. Because crop production techniques vary among producers, every cultivator needs to adjust spending appraisals to accommodate his or her individual circumstance. However, the farmer must compute the fixed and variable cost of production after harvest. The difference in summation revealed the profit or loss for the planting season. Please note that the cost of production is an independent variable. By implication, the farmers must implement farm practices required for tomato production. Thus, seedling transplant must be carried out at specific periods of the crop’s life span. Consequently, insect management, weed control, lime application, fertilizer application, and disease control must be effectively managed.
The variable or working expenses change with social practices, location, and cultural practices. Variable cost for vegetable production include seed cost, manure, chemicals, fuel, and labor. The table below summarizes the cost of tomato production as applied by the organization.
The above table supports cost evaluation based on independent variables. As a result, the table gives you a chance to investigate the expenses at various phases of planting. However, the components of fixed cost include asset ownership, depreciation, security, taxes insurance, and general overhead costs. A large portion of these expenses is a perquisite for vegetable cultivation no matter the profit. Thus, land ownership cost can either be a fixed or variable expenditure. Because it shifts from region to region, from locale to district, and whether it is flooded or non-watered, it is excluded in this speculative spending plan.
Please note that personal land must be assigned a cost of production to avoid cost error estimation. Thus, land is fixed cost based on FAO assumptions for agriculture in Algeria. Cost is in this financial plan despite the fact that no cost has been recorded. Because yields and costs change from year to year, an endeavor is made to assess profit maximization in tomato production. Consequently, the LP model must be replicated for other vegetable production in Algeria. Fruitful tomato production and administration is challenging and. like any farming product, it is troublesome. It remains a financially plausible venture for Algerian vegetable cultivators. Undertaking spending plans can be utilized to aid farmers in the decision-making process. The cost estimation analysis must be conducted to ascertain the contribution margin, rates of returns, and profit.
Conclusion
This operation management practice will assist farmers in the planning and implementation of production practices. Consequently, the technique will improve the yield and maximize profit in tomato, onion, and potato production. Farmers can allocate and reassign resources based on the contribution margin of each variable. Thus, the linear programing model supports profit maximization in vegetable production. However, each department must be managed by competent personnel to improve the performance and productivity. To avoid the effect of change management and succession, employees must be included in the change strategy. In looking for an ideal production technique, it is imperative to perceive the model’s stability for profit maximization. Consequently, the model must be flexible to accommodate changing production conditions and practices.
Works Cited
Barnes, David. Operations Management: An International Perspective, London, England: Thomson Learning, 2008. Print.
Chenhall, Robert. “Reliance on Manufacturing Performance, Total Quality Management and Organizational Performance.” Management Accounting Research 12.3 (2010): 37-56. Print.
Dilworth, James. Operations Management: Design, Planning, and Control for Manufacturing and Services, New York, USA: McGraw-Hill, 2013. Print.
Food and Agricultural Organization (FAO). Web.
Slack, Nath, Chambers Sanders and Johnston Rall. Operations Management, New York, USA: Prentice Hall, 2011. Print.
Stevenson, Williams Operations Management: Operations and Decision Sciences, New York, USA: McGraw-Hill Series, 2014. Print.