Design and implementation of Kaizen and the 5S Methodology to reduce costs in a poultry company

Abstract

This study focused on a poultry company, dedicated to the production and sale of eggs. Two main problems were identified: the presence of defective eggs at the end of the production process and disorder in the finished product warehouse. To address these issues effectively, the implementation of the Kaizen approach and the 5S methodology was proposed. Specific action plans were designed, a quadratic regression analysis was conducted to forecast the percentage of defective eggs, and the ABC method was employed to classify items in the warehouse. A positive cash flow was projected, and financial indicators were evaluated. The results demonstrated a significant 2.55% reduction in the percentage of defective eggs and profitability of 48.99% and 61.80% for the Kaizen approach and the 5S methodology, respectively. The economic evaluation indicated that the project would be profitable, with a Net Present Value (NPV) of S/. 1, 962 and an Internal Rate of Return (IRR) of 56.06%.