Improvement plan to reduce costs in a potato processing company

Abstract

This work was prepared to provide a solution to the problems identified in the company Inversiones Max Papas E.I.R.L. These are identified through a comprehensive diagnosis, using Porter's 5 forces, the Pest tool, the value chain, and SWOT analysis. Different problems were identified in the production and logistics area of the company, such as the high number of non-conforming products, time due to unplanned stops, a high degree of accident rate and waste of raw materials. All these problems have been generating high costs for the company, affecting it economically. For this reason, 3 alternative solutions were proposed, which when evaluated with technical engineering criteria and realistic restrictions, the result was the application of alternative A, which is developed with the tools conformed by the production procedures manual, the quality control technical sheet, preventive maintenance schedule, occupational health and safety training, the Kardex (FIFO) and the material reception control sheet. The improvement plan was simulated using the Promodel software, which for non-conforming products reduced the cost by 80.07%; and the Montecarlo model, which was used for costs regarding unplanned stops of the peeling and cutting machine, obtaining a variation of -79.44% and -56.36% respectively; downtime due to accident, decreasing by 71.43%, and finally for losses per production batch, where a reduction of 80.49% was achieved. Thus, the economic profitability of the improvement plan was demonstrated by obtaining an NPV of S/19, 951.47, an IRR of 30.49% and a B/C of 4.49.