Rodrigo Subirá Conceição
State University of Maringá, Brazil, Brazil
E-mail: rsubira7@gmail.com
Maria Carolina Pariz
Federal University of Technology of Paraná, Brazil, Brazil
E-mail: Mariac_pariz@hotmail.com
Vander Luiz da Silva
Federal University of Technology of Paraná, Brazil, Brazil
E-mail: luizvnder@gmail.com
Daiane Maria de Genaro Chiroli
Federal University of Technology of Paraná, Brazil, Brazil
E-mail: daianechiroli@utfpr.edu.br
Franciely Velozo Aragão
Federal University of Technology of Paraná, Brazil, Brazil
E-mail: fvaragao2@uem.br
Submission: 1/28/2019
Accept: 3/13/2019
ABSTRACT
In
practice, with the aim of achieving competitiveness, the industrial sector has
the primary function of looking for ways to increase productive performance,
improve the quality of products and processes, and reduce waste and production
costs. An alternative to these strategies is the deployment of improvement
projects, following the DMAIC structure of the Six Sigma approach. This study
aimed to present the results of Lean Six Sigma implementation oriented to cost
management. A case study was carried out in an agro-industrial cooperative,
specifically, in the grain receipts department. The tools applied in the case
study were: Requirements Tree; Charts Pareto and Stratification; Cause and
Effect Diagram; Failure Mode and Effect Analysis; Statistical Process Control,
and; Control Array, respectively. These tools are widely used in quality
management and continuous improvement of industrial processes, mainly. As
result, it was possible to apply all the tools proposed by the methodology and
achieve a satisfactory result of cost improvements. The improvements obtained
in the department’s cost management system, as well as the increase in the
capacity of the process, were both significant.
Keywords: Six Sigma; Industrial management; Cost
reduction; Cost management
1. INTRODUCTION
With
the growing competitiveness in the global market, industries have a newfound
need for maintaining a continuous evolution process, related to the aspects of
production, quality, costs, among others (AWAJ et al., 2013).
In
practice, the industrial sector has the primary function of looking for ways to
increase productive performance, improve the quality of products and processes,
and reduce waste and production costs, with the aim of achieving
competitiveness. According to Cho and Pucik (2005), in enterprises, controlling
the quality of products and processes and reducing costs are the main ways of
achieving competitive advantages.
An
alternative to these strategies is the deployment of improvement projects, Lean
Six Sigma. The Lean Six Sigma incorporate concepts of quality engineering,
statistical quality control, total quality management and offline quality
control (MAST; LOKKERBOL, 2012). Both methodologies work to improve processes
and reduce waste (ZHANG et al., 2012), including improvements in productivity,
growth of the enterprise’s participation in the market, reduced lead time,
reduction of cost and continuous quality improvements (JADHAV et al., 2015).
This
study aimed to present the results of Lean Six Sigma implementation oriented to
cost management, following the Six Sigma’s DMAIC method (Define, Measure,
Analyze, Improve and Control stages, respectively).
A
case study was carried out in an agro-industrial cooperative, specifically, in
the grain receipts department. A number of Quality Management tools have been
applied benefiting the industry under study, as well as the results presented
can provide subsidies to other industries and managers.
Firstly,
the research is contextualized and its goal is presented. Then, in the second
section, the theoretical approach, which encompasses concepts of quality
management and the DMAIC methodology, is described. In the third and fourth
sections, the research methodology and the results are presented, respectively.
In the fifth section, the conclusions are presented.
2. QUALITY MANAGEMENT
To achieve the ideals of quality in
an enterprise, its concept needs to be brought into the organizational
framework, giving way to the need for the Quality Management.
Juran (2009) establishes three
universal processes for quality management aiming at the satisfaction of the customers’
needs: quality planning, quality control and quality improvement.
Based on Quality Management
concepts, enterprises evolve to the vision of Total Quality Control, starting
from the 1950s, and later, in the mid-1980s, the concept of Total Quality
management is spread (PALADINI, 2008).
Total Quality Management (TQM) is a
management philosophy that seeks to integrate all functions of an organization,
with a focus on the customers’ requirements and organizational objectives
(HASHMI, 2016). For Oakland (1994), TQM is an approach that allows increasing
an enterprise’s competitiveness, providing greater efficacy and efficiency to
its processes, in addition to, according to Gharakhani et al. (2013), improving
the organization’s performance in terms of quality, productivity, customer
satisfaction and profitability.
For achieving organizational
objectives such as better product quality, cost reduction and lead time, among
others, enterprises in general begin applying the Lean Six Sigma principles.
2.1.
Lean
Six Sigma
Lean management was originated at
Toyota, in Japan, and then implemented by American enterprises (ARNHEITER;
MALEYEFF, 2015). According to Werkema (2006), with the Lean approach it becomes
possible to reduce the lead time, wastes and increase the speed of the process.
The Six Sigma approach it was
originated at Motorola in 1987. A year later, the enterprise received the
Malcolm Baldrige National Quality Award, and Six Sigma became recognized
worldwide (DROHOMERETSKIA et al., 2014). In the Six Sigma, the solution of
problems based on statistical quality tools is emphasized (WERKEMA, 2006).
Given the ascertained Lean and Six
Sigma management and deployment capacity of leading enterprises, the George
Group was the first to integrate and popularize the two methodologies,
resulting in the Lean Six Sigma program (SALAH et al., 2010). From the
perspectives of Zhang et al. (2012), Lean and Six Sigma are approaches of
reduction of waste and processes improvement.
The Lean Six Sigma refers to a
methodology geared towards variations of processes, reduction of waste,
improvement of organizational quality, among others (FURTERER; ELSHENNAWY,
2005; SALAH et al., 2010).
The Lean Six Sigma implementation is
based on DMAIC Methodology (nomenclature represents the sequence of stages),
represents a cycle to develop projects, for improving quality, both in relation
to the reduction of defects and to the increase in productivity or reduction of
costs.
3. METHODOLOGY
This study was carried out in the
grains receiving department of an agro-industrial cooperative located in the
state of Paraná, Brazil.
Based on the Lean Six Sigma
strategy, the project grounds itself on the DMAIC method for its elaboration.
3.1.
Define
The first stage of the project
should be defining its scope and goal, in accordance with the enterprise’s
business case (WERKEMA, 2006).
For the elaboration of the Six Sigma
project of cost reduction in the grains receiving department, during the Define
stage, the Project Charter was developed, based on a standard model proposed by
Domenech (2016). According to Werkema (2006), the Project Charter is intended
to align the design team with the enterprise’s strategy, from the definition of
the project’s scope and goals.
Tools were also applied, such as:
Requirements Tree - VOC/VOB, and; Pareto Charts and Stratification of Costs
(Ys), respectively.
In the department studied, the
variables Safety, Quality, Cost and Process were analyzed through the
Requirements Tree. Domenech (2016) reports that the Requirements Tree allows so
that project leaders may become aware about the needs of customers, converting
them into measurable variables. Of the variables analyzed, Cost was the one
prioritized in this study, given the need for its improvement.
Then, from the analysis of
historical data relating to costs generated by the grains receiving department,
Pareto Charts were applied to prioritize macro costs (apportionment, work
force, tax and technical expenditures). These costs were properly stratified.
For Domenech (2016), the stratification of costs (Ys) assists in the detection
of the causes of the process’ problems, though it does not allow the
identification of the root causes.
3.2.
Measure
The purpose of this stage is to
understand and document the current process, which will be improved through the
project. The costumer’s voice must be heard in more detail and the reliability
of the current process’ measures must be verified (FURTERER, 2009).
The Cause and Effect Diagram was
elaborated in the measure stage, and allowed presenting the possible causes of
increased costs in the industry. These causes were identified through the
stratification of costs and through the analysis of the process. The Cause and
Effect Array was then elaborated to prioritize the causes identified earlier.
3.3.
Analyze
In the Analyze stage, the
fundamental causes for the problems identified are determined, the reasons why
the problems occurred will be explained considering the project’s goals
(WERKEMA, 2006).
In this stage, the Failure Mode and
Effect Analysis (FMEA) methodology was applied, for analyzing the criticality
of the costs and failure modes present in them.
3.4.
Improve
The Improve stage begins with the
generation of ideas to solve, minimize or eliminate the fundamental causes of
the problems detected in the previous step. For this, appropriate tools are
used to support the project’s team in the generation and selection of solutions
(WERKEMA, 2006).
Then, in the Improve stage, the
possible solutions to the failure modes identified in the FMEA were generated
by the project team, and a plan for improvements containing eight procedures
was elaborated.
3.5.
Control
The control aims to maintain the
improvements made and determine the capacity of the current process (DOMENECH,
2016). In this study, the Control stage was performed by applying two
statistical tools, the Statistical Process Control and the Control Array,
respectively.
4. RESULTS AND DISCUSSION
The Table 1 presents the Project
Charter that was constructed.
Table 1: Project Charter.
Six Sigma
Project: Reducing Costs in the grains receiving department |
|||
Service |
Grains receiving |
Project’s revenue |
R$ 880,000.00 |
Belt
Leader |
Strategic Management |
Department |
Grains receiving |
Sponsor |
Operations Superintendent |
Representative of the process |
Manager of the grains receiving department |
Champion |
Master Manager |
Start date |
03-01-2016 |
End date |
12-16-2016 |
||
Information |
Explanation |
Description |
|
1.
Business case |
Connection of the project with the enterprise’s
strategy |
The project is related to strategic High Efficiency
management, which aims to achieve the result with the least possible loss of
resources. |
|
2.
Opportunity |
What are the project’s opportunities? |
In 2014, 1.2 million tons of products were received,
totaling R$ 7,500 million; in 2015, 1,160,000 tons were received, totaling R$
8,300 million, i.e., there was a decrease in the receiving of products and an
increase in cost. In addition, in the last 3 years, the values achieved were,
on average, 34% higher than the budgeted values. In 2015, the value achieved
(R$7.15/Ton) was 27% greater than the budgeted value (R$ 5.64/Ton). For 2016,
there will be the opportunity to reduce the value achieved in 2015. |
|
3.
Goal |
What is the project’s goal? |
Meeting the budget set for 2016, i.e., maintaining a
total expenditure of R$ 6,45/Ton, which represents a R$ 880,000.00. |
|
4.
Project’s scope |
Processes that will be affected by the project.
Beginning and end of the fundamental process |
All processes carried out in the department, from
classification to expedition, including support processes such as
maintenance, logistics and hiring of a temporary work force. |
|
5
Team members |
Name, department, function and dedication of the
participants |
Black Belt Leader (Strategic Management).
Dedication: 30% |
|
Green Belt (Trainee). Dedication: 100% |
|||
Green Belt Administrative Assistant (Grains
Industry) 50% |
|||
Yellow Belt: Manager (Grains Industry) 20% |
|||
Yellow Belt: maintenance manager 20% |
|||
Expert: finances analyst |
|||
6.
Benefits to external clients |
Mention the final customers and the key indicators
and benefits |
Reducing of the expenses of the grains industry,
alignment with the cooperative’s High Efficiency strategy and improvements in
cost management. |
|
7.
Agenda |
DMAIC Stages |
Planned start date |
|
Define |
03/01/2016 |
||
Measure |
03/21/2016 |
||
Analyze |
05/02/2016 |
||
Improve |
08/01/2016 |
||
Control |
10/03/2016 |
||
8.
Required resources |
Are any skills, among other required? |
Modification in the systems with the purpose of
improving the costs issue. |
The goal of the project was defined
as meeting the budget for 2016, seeing as in all previous years for which data
had been raised, the industry had blown the budget by about 30%.
The
project’s Requirements Tree, presented in Figure 1, was created for listening
to the costumers’ accounts. In this tool, the highlights for the achievement of
improvements, as well as for the existing restrictions, which may not be
changed or extrapolated, were identified.
Figure 1: Requirements Tree.
Souce: Authors (2018).
Initially,
the only need for improvement identified was related to the reduction of costs
in the enterprise. Subsequently, an external consultant hired by the enterprise
carried out an analysis to identify which of the project’s actions should be
evaluated in a sustainable manner, resulting in the reduction of the costs currently
generated by the department, and in the improvement of the management of future
costs.
The
customers’ needs and the constraints imposed by the business having been
identified through the Requirements Tree, analyses of the historical data on
costs were carried out and Pareto charts elaborated to stratify the project’s
scope.
The
first analysis to be carried out concerned the total expenditure in the period,
classifying costs at the macro level, as shown in Figure 2.
Figure 2: Cost categories at the macro level.
Souce: Authors (2018).
Based
on the cost analysis at the macro level, the two main cost categories (work
force and technical expenses) were explored, as presented in Figures 3 and 4,
respectively.
Figure 3: Subcategories of costs associated with the
work force.
Souce: Authors (2018).
Figure 4: Subcategories of costs associated with
technical expenses.
Souce: Authors (2018).
Considering this information, the
stratification of costs (Y) was carried out, having been schematized in Figure
5.
Figure 5: Stratification of Y.
Souce: Authors (2018).
To
achieve the objective proposed in the project, namely cost reduction (Y) in the
grains receiving department, costs were divided into four groups, Work Force
(y1), Electricity (y2), Maintenance (y3) and Technical Costs (y4). Y4 relates
to other technical expenses, except for electricity and maintenance that
correspond to separate groups. Y1 has a division between permanent work force
(y11) and temporary work force for each harvest (y12).
The charges
were removed from the scope of the project, seeing as they are directly related
to the permanent work force, and thus the improvements performed in this group
would directly affect them.
A
cause-and-effect diagram was created to identify and represent the possible
causes of increased costs in the industry, as shown in Figure 6.
Figure 6: Causes that promote the increase in costs.
Souce: Authors (2018).
The
four Ys stratified in the Define stage were used as the diagram’s primary axes
(Work Force, Electricity, Maintenance and Technical Expenses), with costs
associated with the process and other expenses not encompassed by any of the
previous divisions.
As
result of the application of the Cause-and-Effect diagram, 53 potential causes
for the increased costs in the studied enterprise’s grains receiving department
were identified.
To
prioritize the 53 potential causes for increased costs identified in the
Cause-and-Effect diagram, the Cause-and-Effect array was structured, as shown
in Table 2.
Table 2: Prioritization of causes that promote the
increase in costs.
To be continued |
|||||||||
Process: Grains receiving Project: Reducing costs in the grains receiving department |
Member of the
project’s team |
||||||||
Cost category |
Xn |
Variable |
A |
B |
C |
D |
E |
F |
Total |
Electrical energy |
X1 |
Motors
with low energy efficiency |
|
|
|
|
|
|
|
X2 |
Turning
the industrial dryer on when not needed |
|
|
|
|
|
|
|
|
X3 |
Lights
on at all times |
|
|
|
|
|
|
|
|
Electrical energy |
X4 |
Lack
of alignment between drilling and thermometry |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
X5 |
Not
programming aeration |
|
|
|
|
|
|
|
|
X6 |
Turning
aeration on when not needed |
|
|
|
|
|
|
|
|
X7 |
Poorly
designed engines |
|
|
|
|
|
|
|
|
X8 |
Leaving
machines turned on for longer than needed |
|
|
|
|
|
|
|
|
X9 |
Harvest
period (duration > expected) |
|
|
|
|
|
|
|
|
Maintenance |
X10 |
Not
knowing the source of the releases |
|
|
|
|
|
|
|
X11 |
Lack
of cost analysis in minor maintenance works |
|
|
|
|
|
|
|
|
X12 |
Replacement
of belts, bearings, cutting discs |
|
|
|
|
|
|
|
|
X13 |
Gardening
services |
|
|
|
|
|
|
|
|
X14 |
Maintenance
operations |
|
|
|
|
|
|
|
|
X15 |
Outsourced
work force |
|
|
|
|
|
|
|
|
Technical costs |
X16 |
Cleaning
services |
|
|
|
|
|
|
|
X17 |
High
fuel consumption |
|
|
|
|
|
|
|
|
X18 |
Excessive
consumption of materials |
|
|
|
|
|
|
|
|
X19 |
Lack
of control of expenditures |
|
|
|
|
|
|
|
|
X20 |
Waste
of materials |
|
|
|
|
|
|
|
|
Permanent work force |
X21 |
Overtime |
|
|
|
|
|
|
|
X22 |
Employee
supplying program |
|
|
|
|
|
|
|
|
X23 |
Charges |
|
|
|
|
|
|
|
|
Temporary work force |
X24 |
Harvest
period (duration > expected) |
|
|
|
|
|
|
|
X25 |
Absence
of temporary employees |
|
|
|
|
|
|
|
|
X26 |
Records
of absence of employees |
|
|
|
|
|
|
|
|
X27 |
Quality
of outsourced services |
|
|
|
|
|
|
|
|
X28 |
Lack
of controls on the part of the outsourced enterprise |
|
|
|
|
|
|
|
|
Process |
X29 |
Waste
of grains (corn and soy) |
|
|
|
|
|
|
|
X30 |
Shipping
box capacity |
|
|
|
|
|
|
|
|
X31 |
Bureaucratization
of operations |
|
|
|
|
|
|
|
|
X32 |
Lack
of programming of the night shift |
|
|
|
|
|
|
|
|
X33 |
Product’s
moisture level at arrival |
|
|
|
|
|
|
|
|
Others |
X34 |
Apportionment
expenses received |
|
|
|
|
|
|
|
X35 |
Grain
drying |
|
|
|
|
|
|
|
|
X36 |
Parking/storing
of trucks |
|
|
|
|
|
|
|
|
X37 |
Communication
failures |
|
|
|
|
|
|
|
To facilitate the analysis, the
priority causes were organized hierarchically and characterized according to
the groups to which they belong, such as electricity, maintenance, among
others, as shown in Table 3.
Table 3: Prioritization of causes that increase costs,
organized hierarchically.
Cost category |
Xn |
Variable |
Total |
Electrical
energy |
X6 |
Turning
aeration on when not needed |
|
X8 |
Leaving
machines turned on for longer than needed |
|
|
X1 |
Motors
with low energy efficiency |
|
|
X7 |
Poorly
designed engines |
|
|
X3 |
Lights
on at all times |
|
|
X2 |
Turning
the industrial dryer on when not needed |
|
|
X15 |
Outsourced
work force |
|
|
X13 |
Gardening
services |
|
|
X14 |
Maintenance
operations |
|
|
X11 |
Lack
of cost analysis in minor maintenance works |
|
|
Technical
costs |
X16 |
Cleaning
services |
|
X20 |
Waste
of materials |
|
|
X17 |
High
fuel consumption |
|
|
X19 |
Lack
of control of expenditures |
|
|
Work
force |
X24 |
Harvest
period (duration > expected) |
|
X25 |
Absence
of temporary employees |
|
|
X28 |
Lack
of controls on the part of the outsourced enterprise |
|
|
X21 |
Overtime |
|
|
X27 |
Quality
of outsourced services |
|
|
Process |
X33 |
Product’s
moisture level at arrival |
|
X32 |
Lack
of programming of the night shift |
|
|
Others |
X36 |
Parking/storing
of trucks |
|
Souce: Authors (2018).
This
step was applied to examine the results identified more critically. The Failure
Mode and Effect Analysis (FMEA) methodology was used in this stage.
FMEA
was applied to the analyzed cost-generating groups, such as maintenance,
electricity, work force, processes, technical expenses and others. For
prioritization of the failure modes, that is, the analysis of situations that
favor failure, values were assigned to the criticality factors Severity (S),
Occurrence (O) and Detection (D), with parameters between 1 and 5, as shown in
Figure 7.
Figure 7: Factors of criticality analysis of failure
modes.
Souce: Authors (2018).
Based
on the parameters described in Figure 7, a risk priority number (RPN) was
assigned to each failure mode, as shown in Table 4.
Table 4: Application of FMEA for analysis of failure
modes.
Continuing |
|||||||||||||||
Work front |
Group of
variables |
Failure modes |
Effects |
Causes |
S |
O |
D |
RPN |
|||||||
Maintenance |
Accounting |
Gardening costs should not be accounted on
maintenance |
Increased costs |
Accounting structure |
3 |
4 |
1 |
12 |
|||||||
Structure |
Lack of analysis in small maintenance |
Increased costs |
Deficiency in maintenance structure (lack and
connection between planning and execution) Delay in implementation of new maintenance plan due
to the lack of definition of on key |
4 |
3 |
2 |
24 |
||||||||
Maintenance labor outsourced |
Focus on core activities |
3 |
5 |
1 |
15 |
||||||||||
Work front |
Group of
variables |
Failure modes |
Effects |
Causes |
S |
O |
D |
RPN |
|||||||
Electricity |
Waste |
Aeration turned on when it is not needed |
Increased costs |
Failure on the Air master system operator failure |
4 |
3 |
4 |
48 |
|||||||
Machines turned on more than needed |
- |
3 |
1 |
1 |
3 |
||||||||||
Lights on all the time |
i) Lack of awareness, ii) Connected power grid
(tunnel and outside), iii) Electric discharge in the bulbs to bum, iv)
Location of lamps (inclination for example) |
4 |
4 |
2 |
32 |
||||||||||
Engines study |
Engines with low energy efficiency |
i) Moto age (the higher), ii) Rewind (the more), iii)
Policy for the purchase of high performance |
4 |
4 |
3 |
48 |
|||||||||
Electricity |
Engines study |
Poorly sized engines |
Increased costs |
i) Unavailability of correct motor (for emergency
care in the harvest), ii) Do not know the sizing coming from the supplier,
iii) Different capacities for the corn and soybean crop |
3 |
3 |
4 |
36 |
|||||||
Work front |
Group of
variables |
Failure modes |
Effects |
Causes |
S |
O |
D |
RPN |
|||||||
Labor |
- |
Harvest period longer than expected |
Increased costs |
Only available incumbent is Gilbert study
possibility of hiring effective x temporary for the function |
5 |
3 |
3 |
45 |
|||||||
Lack of operators – temporary |
3 |
2 |
2 |
12 |
|||||||||||
Quality of temporary outsourced services |
3 |
3 |
2 |
18 |
|||||||||||
Lack of control of outsourced labor |
3 |
4 |
4 |
48 |
|||||||||||
Overtime |
3 |
3 |
4 |
36 |
|||||||||||
Outsourced labor |
3 |
2 |
3 |
18 |
|||||||||||
Work front |
Group of
variables |
Failure modes |
Effects |
Causes |
S |
O |
D |
RPN |
|||||||
Process |
- |
Product arrival moisture |
Increased costs |
i) Climatic forecast, ii) Lack of programming in the
units, iii) There are more problems in the corn crop, iv) Driver already
comes with truck in bad condition, v) Load inappropriate location, vi) Lack
of employee training |
3 |
3 |
3 |
27 |
|||||||
Noncompliance with the receipt schedule |
3 |
4 |
4 |
48 |
|||||||||||
Truck wreckage due to bad operation on the tipper |
2 |
2 |
3 |
12 |
|||||||||||
Technical expenses |
- |
Cleaning services |
Increased costs |
i) Costs with removal of buckets, ii) Requests for
materials, iii) Already started control and is better, iv) Lack of control
that prevents analysis for improvement |
2 |
2 |
2 |
8 |
|||||||
Waste of materials |
2 |
2 |
3 |
12 |
|||||||||||
High fuel consumption |
2 |
3 |
3 |
18 |
|||||||||||
Lack of control |
1 |
2 |
2 |
4 |
|||||||||||
All technical expenses |
3 |
2 |
2 |
12 |
|||||||||||
Work front |
Group of
variables |
Failure modes |
Effects |
Causes |
S |
O |
D |
RPN |
|||||||
Other |
- |
Strategy definition |
Increased costs |
What makes it difficult is to predict units failure |
3 |
3 |
3 |
27 |
|||||||
Cameras maintenance |
Study preventive maintenance |
2 |
2 |
4 |
16 |
||||||||||
Truck stays |
It is fixed without asking the need at that moment Evaluate impact, see history |
2 |
2 |
2 |
8 |
||||||||||
Souce: Authors (2018).
Based
on the NPR results obtained, the main failure modes identified were organized
by priority, as shown in Figure 8.
Figure 8: Causes prioritization list.
Souce: Authors (2018).
Of
the 26 failure modes prioritized with FMEA, 12 were selected to propose
improvement recommendations. The remaining failure modes were already
encompassed by some other action for improvement being carried out in parallel
within the enterprise, or were outside the scope of the project under study.
In
this context, the failure modes considered to be eligible for the proposition
of improvement actions were: Turning aeration on when not needed; Motors with
low energy efficiency; Poorly designed engines; Lights on at all times; High
fuel consumption; Lack of cost analysis in minor maintenance works; Work force
of outsourced maintenance; Lack of control of the outsourced enterprise;
Overtime; Quality of temporary services; Union, and; Non-compliance with the
receiving schedule.
After
defining all the project’s key points, measuring the relevant data and
analyzing all possible causes for increased costs in the grains receiving
department, the project’s team initiated the Improve stage, with the aim of
generating solutions to the causes previously identified.
Based
on the results of the FMEA, actions of improvement to the problems identified and
analyzed in the previous steps of the project were suggested by the team
members. The meeting for generation of ideas was held in a different
environment to stimulate the creativity of the members, and the list of ideas
generated is shown in Figure 9.
Figure 9: List of ideas generated by the project’s
team.
Souce: Authors (2018).
Based
on these ideas, the team held another meeting to assess which of them could be
turned into solutions. The following criteria were used: Potential impact on
Costs; Complexity/Difficulty of the Solution’s Implementation, and; Need for
Investment, and scores were assigned to these criteria for each idea, as
presented in Table 5.
The
ideas concerning maintenance were not evaluated because they were already being
addressed in a project developed in parallel by the department’s maintenance
team, thus the project only helped with the management of costs associated with
these actions.
Table 5: List of ideas generated by the project’s
team.
Solutions selection |
Estimated amount - 2016 |
Aeration
turned on when it is not needed |
R$
2.399.529,00 |
Engines
with low energy efficiency |
|
Poorly
sized engines |
|
Lights
on all the time |
|
High
fuel consumption |
38.900,00 |
Lack
of control of outsourced labor |
932.624,65 |
Overtime |
11.236,20 |
Quality
of temporary outsourced services |
932.624,65 |
Quality
of outsourced services |
214.000,00 |
Noncompliance
with the receipt schedule |
- |
Lack
of analysis in small maintenance |
1.094.000,00 |
Maintenance
labor outsourced |
Souce: Authors (2018).
The
solutions were ranked according to the scores received (greater impact, less
complexity and lower investment), and six (6) action plans for improvement were
prioritized, which will be explained later.
a) Weekly cost control. The application of
the enterprise’s management system accompanies all the costs generated by the
department’s monthly, and their monthly balance is carried out by an external
enterprise. A spreadsheet that compiles the data inserted weekly into the
enterprise’s system, and creates indicators related to the cost of priority
work fronts (Work Force, Electricity, Maintenance and Technical Expenses), was
developed as a proposal for improvement.
b)
Standardization
of weekly meetings in the department. Once a week, the manager of the
grains receiving department meets with leaders of sub-departments to discuss
unresolved matters, update inventory numbers and align actions to be undertaken
during the week. However, these meetings used to take place without an agenda,
the only constant subject being the control of the stocks. An agenda was
developed for the meeting, encompassing the items that used to be treated in a
schematized manner, and the monitoring of the indicators generated in the
weekly cost control worksheet was also added.
c)
Aeration.
To solve the problem associated with aeration, a model for control of aeration
hours was developed. In this context, the filling of this model became the
responsibility of the leaders of each sub-department, whenever the aeration
system is turned on or off, to reduce the waste of electricity.
d) Engine efficiency study.
It was found that some engines had low energy efficiency and/or were poorly
designed, resulting in waste of electricity. To solve this problem, an
enterprise specialized in high-efficiency engines was hired to conduct a study
on the engines in question. This study aimed to identify engines with greater
energy-saving potential, as shown in Figure 10. Considering the replacement of
all engines of the aeration system, the total investment would be R$ 417,934.16,
with a potential saving per year of R$ 154,525.61, which generates a payback of
2.7 years, considering 16 hours of work per day and 268 days of operation in
the year. This proposal was presented to the board of directors and included in
the enterprise’s investment plans for 2017/2018.
Figure 10. Engine efficiency study.
Souce: Authors (2018).
e)
Mapping
of temporary employees. To solve the external enterprise’s
lack of control, it being responsible for the hiring of temporary staff during
periods of harvest, a specific mapping of the department was developed, which
revealed the need of employees by sub-department. That is, for soybean
harvesting, for example, the need for employees was as follows: 15 in the SNE
department; 27 in the LM department; 14 in Grains Classification; 6 in the
Grain Hoppers, 26 in the Bulk Carrier; and 30 in the JK department – a total of
118 temporary employees needed for soybean harvesting.
f)
Awareness
on electrical energy waste. One
of the problems identified in the study was the issue of lights remaining on at
all times, as well as machines being turned on without need. In this context,
posters were hung on strategic locations at the department, educating
employees.
g)
Control
of overtime hours and compensatory time. To control
excessive spending on overtime hours, a weekly report on the compensatory time
balance of each of the permanent employees started being analyzed by the
leaders of the sub-departments, to keep the balances near zero. Temporary
employees cannot be offered compensatory time, so their overtime hours generate
a cost that impacts directly on overtime balance, the daily monitoring of these
employees’ overtime reports being necessary to avoid compromising the
department’s budget.
h)
Maintenance.
Maintenance expenditure was identified as one of the most significant in the
department and, consequently, was defined as one of the work fronts.
Improvement actions were carried out in the management of maintenance, such as
the implementation of a management platform for maintenance planning and
control through work orders, and also for the registering of separate services
in preventive, predictive, reactive and corrective maintenance works,
classified as electrical, mechanical, building maintenance, among others. The
platform also allows analyzing suppliers regarding parts and services, and
regarding the amount of maintenance by equipment, which can be used for
possible cost reductions.
All costs associated with any type of maintenance in the
department were calculated in a single balance, making the analysis of the
concentration of expenses with different types of maintenance impossible. Thus,
a model that distributed the expenses in four categories was proposed to
analyze and manage them: preventive maintenance of the process (parts/equipment
or services contracted to carry out maintenance), maintenance of buildings and
patios (facilities of the department or furniture belonging to administration,
for example), corrective maintenance of parts and equipment (related to the
process) and corrective maintenance.
For process control to structure the Statistical Process Control (SPC), the subtraction of the Budgeted
Value from the Achieved Value of the department’s weekly costs was used as
control variable in the process. The limits were established based on
historical costs of the period (2012-2015). With this, measurement system to
record the data was defined, using the cooperative’s system for this purpose
and to generate the indicators presented and the SPC of the department’s costs.
The statistical control chart of the process, shown in
Figure 11, presents information in R$ by tons received, making it possible to
analyze and control all expenditures to make sure they are within the defined
threshold.
Figure 11: Statistical Control Charts of the Process.
Souce: Authors (2018).
The control array, shown in Figures 12a. and 12b.,
details in a procedural manner the department’s indicators, goal and frequency
and those responsible for their monitoring, in addition to the possible
investigations and measures to be taken in case of unfavorable situations, and
to create a monitoring culture.
Figure 12a: Control array of the process.
Souce: Authors (2018).
Figure 12b: Control array of the process.
Souce: Authors (2018).
In addition
to the development of control tools, tutorials for the monitoring of costs were
also created and made available in the system, making it possible for any
person who assumes responsibility after the project’s conclusion to work in
accordance with the control system installed.
Throughout
the Control stage, the administrative assistants were trained to control
maintenance costs in accordance with the department’s budget and to detail and
justify the cost indicator in R$ per ton received.
5. CONCLUSION
The tools applied in the case study
were: Requirements Tree; Charts Pareto and Stratification; Cause and Effect
Diagram; Cause and Effect Array; Failure Mode and Effect Analysis; Statistical
Process Control, and; Control Array, respectively. These tools are widely used
in quality management and continuous improvement of industrial processes.
We
concluded that it was possible to implement all the tools proposed by the
methodology and achieve a satisfactory result of improvements. The enterprise’s
board of directors valued the actions deployed by the project and opened the
doors to new projects that may arise as proposals of the project under study in
this work.
The
process’ capability had significant gain compared to the full year of 2015. In
this year, the Z value, which represents the process’ sigma level, was 5.2,
while in the months of January to October 2016 it rose to 0.8. The evolution of
the team during the project was essential for the success of the improvement
actions and for the smooth development of the project. In addition to
acceptance within the team itself, collaboration and acceptance within the
sector by all employees was also of extreme importance, seeing as they could
contribute with ideas for improvements, in addition to accusing many causes
that increased costs.
The
controls developed by the project also generate the need for those responsible
for the management of costs to give it continuity by feeding the database and
periodically reviewing the indicators so that the gains provided by the project
are maintained and create opportunity for other improvements.
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