A Production Service Management Model using Lean

Tools to Increase Productivity in an Agro-Export Company

Item Type info:eu-repo/semantics/article

Authors Ramos-Leon, Heissell; Montoya-Valdiviezo, Grecia; Castillo,

Javier; Cardenas, Luis

DOI 10.1063/5.0134879

Publisher American Institute of Physics Inc

Journal AIP Conference Proceedings

Rights info:eu-repo/semantics/openAccess

Download date 11/06/2024 16:53:23

Link to Item http://hdl.handle.net/10757/667611

RESEARCH ARTICLE | JANUARY 30 2023

A production service management model using Lean tools

to increase productivity in an agro-export company
Heissell Ramos-Leon  ; Grecia Montoya-Valdiviezo; Javier Castillo; ... et. al

AIP Conference Proceedings 2613, 020003 (2023)

https://doi.org/10.1063/5.0134879

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 A Production Service Management Model using Lean Tools
to Increase Productivity in an Agro-Export Company

Heissell Ramos-Leon1,a), Grecia Montoya-Valdiviezo1, Javier Castillo1, Luis Cardenas2

Downloaded from http://pubs.aip.org/aip/acp/article-pdf/doi/10.1063/5.0134879/16648645/020003_1_online.pdf

Ingenieria Industrial, Universidad Peruana de Ciencias Aplicadas, Prolongación Primavera 2390, Lima 15023, Peru
1

Direccion de Investigacion, Universidad Peruana de Ciencias Aplicadas, Prolongación Primavera 2390, Lima 15023,
2

Peru

a)
Corresponding author: u201423807@upc.edu.pe

Abstract. The growth of Peruvian exports has been remarkable in the last two decades, and especially in non-traditional products,
which include vegetables, cereals, and fruit, among others. The industries dedicated to processing these products often report large
food losses during their production process, which translates into low productivity rates. For this reason, this research study
develops a Production Management model to address this problem and improve conditions through a model that fosters
Continuous Improvement. This includes the implementation of Lean tools such as Work Standardization and an organization
model based on the 5S. Likewise, the Systematic Layout Planning (SLP) method is applied to determine the spaces of problem
areas. For this study, the processing of frozen mango was assessed and the causes that generate the low productivity issues were
identified. Based on this, the processes are evaluated, and the corresponding solutions are determined. After the implementation of
the model, productivity increased to 74%, waiting times were reduced to 24 minutes, and the total distance traveled was reduced
by 32 meters.

INTRODUCTION

In Peru, economic growth through exports experienced a significant increase and recovery in Q4-2019.
This may be explained by an increase in external demand for traditional and non-traditional products of
1.2% and 4.8%, respectively [1]. The latter, which has a greater impact, has also increased the economic
participation of the agro-business industry to 46% [2]. Non-traditional products include legumes, fruits,
several vegetables, cereals, tea, coffee, and cocoa, among others. In fact, fruit exports have grown by
16.97% in the last two decades [3], and frozen mango is among the top ten most exported products [4].
However, the industries dedicated to processing non-traditional products often report production problems
that generate low productivity rates due to different factors.
For example, low production rates are commonly caused by food losses, production waste, and
downtimes, among others, and usually exert a heavy economic impact as a consequence. In this case, the
company reports 11.5% losses in its annual turnover. Within this context, researchers such as Maalouf and
Zaduminska [5] propose increasing production capacities and reducing excessive changeover times in a
food processing industry by applying the Value Stream Mapping (VSM) and Single-Minute Exchange of
Die (SMED) methodologies. Costa, Filho, Fredendall and Ganga [6] also apply Lean Six Sigma to reduce
production process preparation times and, thus, improve industry performance. Putri and Dona [7]
contribute with process standardization to eliminate waste coupled with a plant layout redesign that may

11th Annual International Conference (AIC) 2021

AIP Conf. Proc. 2613, 020003-1–020003-8; https://doi.org/10.1063/5.0134879
Published by AIP Publishing. 978-0-7354-4311-2/$30.00

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reduce the problems reported by the company. Hence, there are several Lean tools applicable to the food
processing industry that may prove effective in obtaining results.
Therefore, this research study seeks to improve the productivity rate of the frozen mango process by
implementing a Production Management model at a Peruvian company. The foregoing, considering the
possibility of adapting the proposed model to any industry with similar conditions. The model is
developed based on the Lean philosophy through the use of tools such as Work Standardization, the 5S
principles, and the SLP method [8] [9]. For the purposes hereof, Work Standardization establishes
parameters for a better working methodology through the integration of method studies. Likewise, the 5S
establishes an orderly work environment, and the SLP determines an adequate layout distribution of the
working spaces. These tools have a wide range of application and given the extremely few research
studies focusing on the processing described in our case study, this study also set forth the foundation for a
precedent.
This paper also includes additional sections that summarize the research conducted. For example, the
State of the Art section provides an overview of previous studies in different categories. Likewise, the

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Contribution section details the proposed model and its implementation steps according to the restrictions
of the case study. Finally, the Validation section denotes an initial company assessment, the validation
methods applied, and the results obtained, thus providing a scope for our conclusions.

State of the Art

1.1. Lean Manufacturing

The main objective of the Lean Manufacturing philosophy is to identify and eliminate waste in each
process [10]. This philosophy includes tools that add value by reducing excessive times, rework and
waiting times; however, finding the appropriate application combination may prove quite a challenging
task [9]. Within this context, the changes brought about by a Lean transformation, the short-term losses
and the resistance exhibited by employees to adapt to change must also be understood and assessed [11]
[12]. Many knowledgeable manufacturing industries apply Lean tools and achieve significant
improvements, but not all are successful. This may be due to factors preventing a successful Lean
implementation, such as staff member engagement, full commitment from senior top management and the
nature of the process, product and plant [11] [9]. The aforementioned factors are also relevant in agri-food
industries, whose insertion has been slow, but with improvements in cost reduction and increased
productivity [13].

1.2. The 5S technique

This is the Lean tool with the highest level of popularity and applicability in manufacturing industries
[14] [15]. The 5S has evolved over the years, extending its application from 3 to 5 elements, as it is
currently known. However, its initial implementation is completely feasible [15]. Its application requires
commitment and objective execution at all levels of the organization to promote and motivate its
importance to employees [14]. This is critical for implementing an effective solution of the problems of
disorder, downtimes, delays and competitiveness within a company. In this way, companies may improve
their quality and productivity rates, procure an efficient use of the workspace, optimize costs, and
establish a safe working environment [14] [16] [17]. The correct application of this tool has generated
success stories wherein productivity has increased (44%), quality has improved (44%), waiting time have
been reduced by 40 minutes and a better environment for the spare parts and tools used by the company
has been established [16] [18].

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 1.3. Work Standardization
Work Standardization (WS) is another of the Lean tools, whose level of use, implementation and
effectiveness in manufacturing industries is highly relevant due to its immediate results on behalf of the
company [19] [20]. Basically, this tool proposes the best working method for the execution of a given task,
avoiding performing random tasks [21]. This tool can be combined and supported by parallel studies and
assessments to obtain results with greater impact. For example, a company applied WS, an analysis of
employee motion, and anthropometric studies to redesign its workstations, thus reducing inefficient
movements by 66% and standard times by 18.66%. Still, a work study analysis also generates optimal
effects in reducing time and increasing production [20] [22]. On the other hand, another case study
managed to reduce its idle time, activities that did not generate value, and operator interventions, thus
gaining back 31.6 seconds of time lost due to inactivity, which caused a production increase of
approximately 17.24% in a single work shift [23].

1.4. The SLP method

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An approach that designs and restructures the areas applied to different industries is the Systematic
Layout Planning (SLP) [24]. The development of this method provides an optimal distribution of spaces to
establish a better environment for the movement of materials, storage, and all operational activities.
Furthermore, it improves the distance flow of the complete system between machines, workstations and
material storage places [25] [7]. In this sense, it generates improvements through the reduction of
distances and lost times due to an incorrect plant layout. Its application causes immediate changes in the
industries that implement it. For example, a textile company managed to reduce transfer distances by 23%
and cut lost time by 34%. On the other hand, another research study presents optimal waste reduction
designs with the new layout with a 40% reduction in trips made [26] [27].

Contribution

1.5. Rationale
The design of the model proposed herein has been developed based on three basic stages that promote
the development of Continuous Improvement and includes part of the PDCA methodology. In this sense,
our production model stages are Plan, Do and Check, which together present a series of steps aimed at
mitigating the causes that originate the problem described in the case study. Within this model, we have
also incorporated the application of some Lean tools related to success stories that address similar
problems. Based on a rigorous study of scientific articles, the use of Work Standardization (WS) and an
organization model based on the 5S and the SLP method have been determined. For each of the tools
proposed in stage two, a step structure has been developed based on the models previously applied in
other manufacturing industries. The WS steps were structured under a combination of variables between
the model [21] and the work methodology study [28]. Likewise, the model [16] was considered to develop
the steps for the 5S-based organization model proposed, and, finally, a selection of model steps [24] was
conducted to implement an optimized layout distribution. In this way, the construction of this model is
properly supported, and its application is essential to obtain results and changes within the production
process.

1.6. Proposed Model

The previously supported proposed model is shown in Figure 1 and comprises the aforementioned
three main stages. The first is “Plan” and its objective is to collect information from the production
process to conduct an assessment and determine the solution opportunities based on the essential problem
identified. The second is “Do”. In this phase, the development and implementation of the components that
function as improvement tools are conducted, which will then mitigate the causes that originate the main

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problem. The third stage is “Check” and compares the results obtained after the implementation of the
tools with the results proposed by the literature review. This way, the project is validated and the evolution
of the results for these industries is confirmed.

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FIGURE 1. Production Management Model.

1.7. Model Details

The success of the improvement proposal, materialized in a Production Model, consists of three phases
and the steps described below must be properly executed in full.

1.7.1. PHASE 1: Plan

In the first instance, production process information is compiled through by collecting data from the
company and other similar industries. Subsequently, the information is analyzed, and the main problem is
identified for the company. The foregoing, in order to propose improvement and solution opportunities
that can eliminate or mitigate the problem causes and reduce the existing gap between the initial
assessment of the case study and the industry.

1.7.2. PHASE 2: Do
In the second instance, the previously defined and structured tools are applied. Each tool includes steps
that will ultimately validate the proposed model.
Work Standardization: Information must be compiled for all process activities to conduct an evaluation
and define a new working methodology through an AVA matrix, which determines the activities that add
value or not to the process. In this way, a visual diagram is prepared in which the new activities for each
improved workstation and the corresponding information will be reflected to proceed with the
implementation. Likewise, changes are introduced based on a training program to educate staff members
on tool considerations and the records used in order to control and monitor the new working methodology.
Organization Model based on the 5S: The first step is an internal audit to assess the current “as-is” state
of the area to be improved. Then, the tools are classified, determining their operational, necessary, or
repairable condition, and grouped into kits within the requiring areas. For non-repairable tools already in
their corresponding kits, the type of storage where they will be placed is established. The next step is to
locate and determine the space in which the kits will remain in order to keep the work space organized.
The SLP method: The development of the current layout distribution for the problem areas is essential
since it contains information on the spaces, distances, and location of each subject. This information is

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critical to assess the relational table and diagram based on the importance between areas and other criteria.
According to this information, new layout distributions are proposed, and the best option is selected for
subsequent representation in a 3D model.

1.7.3. PHASE 3: Check

The validation of the improvement proposal is conducted through a comparison between initial and
final results considering the reference levels of each indicator proposed. At this point, we will determine
whether the production model can be used as a benchmark in similar industries.

1.8. Proposed Process

Execution of the Production Management model conducted accurately has inputs and generates outputs
that support the next activity throughout the development process. This model is structured based on a
detailed review of scientific articles with a high impact factor. Likewise, the project considerations include
its scope and limitations. In this sense, the project starts by gathering information on the company and the

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specific industry segment. Then, this information is assessed, and the corresponding solutions will be
proposed. For these purposes, the first tool applied will be Work Standardization since it provides new
working conditions, activities, a list of tools used, and a list of tools that must be removed. This last item
is essential for the application of the organization model based on the 5S in selected areas with disorderly
work environments since it classifies tools by kits and determines their subsequent storage location. Once
this is defined, the space layout in problem areas will redesigned through the SLP method since, at this
point, we already have the location and measurements of new materials or spaces defined by the previous
tools. To obtain positive results, this model must be strictly followed. These results represent the success
of the model proposed, and indisputably validates it by comparing initial and final results.

1.9. Model Indicators

The model presents evaluation indicators that ratify the development and fulfillment of the components.

TABLE 1. Component Indicators.

Component Indicator Formula

Model Productivity
Work
Time Lost Percentage
Standardization
Work Production Increase
Standardization Percentage
5S-based
Waiting Time
Approach
The SLP Total Distance Traveled
method Reduction

VALIDATION

1.10. Case Study

This research project has conducted its studies at a Peruvian fruit processing company. Since
confidentiality is important, this company will be referred to as "Company M", which operates in the
Callao province of Peru. “Company M” provides frozen mango processing services and reports a

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stationary demand from October to March. Currently, “Company M” has a wide client portfolio; however,
its process is not efficient, and this immediately affects the annual turnover of the company, which reports
sales losses at 12%. For this reason, an initial assessment of the total process has been conducted to
identify the main problem, which turned out to be the low frozen mango processing productivity rates.
Their current productivity rate is set at 51%, but the industry-wide productivity rate is currently at 85%.
Since this represents a clear disadvantage to “Company M”, an analysis of the causes that may generate
this problem is conducted. The study determines three significant causes: the amount of time lost
throughout the entire production process, the lack of sufficient mango input due to high selection
discarding rates, and the number of reprocesses conducted throughout the process. This research study
proposes a production model aimed at mitigating or reducing the main problem reported by “Company M”.

1.11. Validation Method

This project is validated through a pilot test and the preparation of a 3D model, which are two
validation methods that will be developed to determine the functionality of the proposed model in this

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specific industry. The pilot test is conducted in the most critical areas of the company, and the 3D model is
developed to demonstrate the results from redistributing space layouts and the changes it generates. This
validation process was developed under a confidence level of 94%, with a 6%, error, and an equitable
probability of success and failure to determine the right sample size as per the data collected during the
pilot test. In this sense, the result determined a minimum collection of 233 data per tool for its validation.
The following table summarizes the validation methods used.

TABLE 2. Validation Model by Component.

Component Validation Model Stroke

Work Standardization Pilot test 1 month

Organization Model based on the 5S: Pilot test 1 month
The SLP method 3D Model 1 month

1.12. Validation Design

The execution of the pilot test of the components follows the guidelines of the second phase of the
proposed management model, which is detailed in the detailed model section presented in this research
study. In this way, the first step is the application of the first model component, which is Work
Standardization. This allows the development of a new working methodology to standardize times and
increase production rates. Then, an organization model based on the 5S is implemented, wherein tools are
classified, and kits created. This is done in order to establish storage types and their subsequent location.
At the end, the tools will be better organized, thus establishing a better work environment. Finally, a 3D
model is developed depicting the areas whose transfers are excessive and cause time losses. The
determination of spaces shown in the model is critical for demonstrating the reduction of travel distances.
With this, the proposed model is validated and the foundations for the next section are laid.

1.13. Results
Comparing the results from the initial and the improved mango processing process is essential to
validate the model. For this reason, the value obtained from each indicator proposed by component is
presented in the following table.

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 TABLE 3. Indicator Results.

Component Indicator Current Value Improved Value

Model Productivity 51% 74%
Work Standardization Time Lost Percentage 53% 2%
Work Standardization Production Increase Percentage - 13%
5S-based Approach Waiting Time Reduction 79 min 24 min
The SLP method Total Distance Traveled Reduction 63 m 32 m

CONCLUSIONS

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The Management Model implemented in the frozen mango processing service obtained effective
results by increasing productivity rate by 23% from its initial value. This positively increases company
sales by 9%.
Likewise, the most relevant changes were a reduction of idle times from 53% to 2%, and the reduction
of time spent searching for tools from 79 minutes to 24 minutes. To achieve these results, the components
related to these indicators underwent an exhaustive and very controlled monitoring throughout the entire
pilot test.
Since the model validation included the collection of 233 data per component, we hereby recommend
generating the appropriate sample size if this model is applied at a similar company.
Please note that this model was implemented at a company that exports kent and haden mangoes. A
different variety of mangoes may produce different results. In addition, the variation of fruit processing
activities at similar companies must also be considered when adapting this the model.

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