Applying a Markov approach as a Lean Thinking analysis of waste elimination in a Rice Production Process

Eldon Glen Caldwell Marin

International Journal on Food System Dynamics, 2015, vol. 05, issue 4, 8

Abstract: The Markov Chains Model was proposed to analyze stochastic events when recursive cycles occur; for example, when rework in a continuous flow production affects the overall performance. Typically, the analysis of rework and scrap is done through a wasted material cost perspective and not from the perspective of waste capacity that reduces throughput and economic value added (EVA). Also, we can not find many cases of this application in agro-industrial production in Latin America, given the complexity of the calculations and the need for robust applications. This scientific work presents the results of a quasi-experimental research approach in order to explain how to apply DOE methods and Markov analysis in a rice production process located in Central America, evaluating the global effects of a single reduction in rework and scrap in a part of the whole line. The results show that in this case it is possible to evaluate benefits from Global Throughput and EVA perspective and not only from the saving costs perspective, finding a relationship between operational indicators and corporate performance. However, it was found that it is necessary to analyze the markov chains configuration with many rework points, also it is still relevant to take into account the effects on takt time and not only scrap´s costs

Keywords: Agribusiness; Farm Management; Production Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijofsd:198971

DOI: 10.22004/ag.econ.198971

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