International Journal of Modern Science and Technology, 1(6), 2016, Pages 218-223.
Influence of Modern Technology on Cost Optimization of Sugar Processing in Kenya
John Obiero Abuto1, Adrian Mukhebi2, N. B. Okelo3
1 School of Business and Economics, 2 School of Agriculture and Food Security, 3 School of Mathematics and Actuarial Science, Jaramogi Oginga Odinga University of Science and Technology, P. O. Box 210-40601, Bondo-Kenya.
Technology in the sugar subsector in Kenya has remained virtually static in the last five decades. In some companies the mills are as old as fifty years. This has lead to increased maintenance cost because their spares are customized and are produced as per the order. The old mills have made the companies to have relatively low grinding hours leading to high cost of production in essence reducing productivity ranges per input. Increased productivity is the key goal and any production concern must put effort for its optimization. It is related to the efficient use of resources, including energy, equipment design reliability and performance optimization. In effort to incorporate new technology, it is important to note technology is divided into two types: Primary technology, which includes new equipment and operations, and secondary technology, which includes all knowledge and data based systems such as design, automation, performance evaluation and optimization. In Kenya, it is important that the various companies should outline this requirement to improve on cost optimization.
Keywords: Technology, Cost optimization, Sugar Processing, Kenya.