Financial Gain From The Increase In The Quality Results Of The Garlic Cut

Financial Gain From The Increase In The Quality Results Of The Garlic Cut - Success Case L2 Agronegócios


Knowing the Company:

L2 Agronegócios emerged in August 2012, from a young dreamer who had his father as a mirror. The company is a dream come true for a family business that brings food to the tables and employs many people who share this same dream.

The company is focused on the production of garlic, cattle and cereals, and is located in Tiros - MG. The climate in the region is highly favorable to these segments, which allows for healthy products, with a high level of quality and flavor.


Challenge:

L2 agribusiness stands out in the market through its products with high quality requirements, in addition to adopting the philosophy of operational excellence, strong relationship, fast and efficient service to its customers.

In a market scenario in which the company is inserted, it is increasingly fierce, with the need for an improvement in its production process, aiming at reducing operating costs and implementing Quality Control. Thus, in partnership with Avilla Consulting, a project was started to identify opportunities for improvement in the process, which started with the garlic processing process.

In the initial mapping carried out by Avilla Consulting, some opportunities for financial gain were identified, but this case study aims to cite one in particular: in the Quality Management of the field (garlic cut), which would differentiate the company from its competitors, being increasingly more competitive in the field in which it operates. When it comes to the quality of the garlic cut, we observe some defects classified as: non-standard pito, large root, profile, bruised garlic. Among these defects mentioned, the "bruised garlic" is the one that has the greatest impact on adding value to the final product, as it is not producing a garlic with all the "teeth", resulting in a loss of around R$ 20.00 at BRL 70.00 per 10 kg box.

With the objective of increasing quality, investing efforts in products with greater added value, and reducing the amount of damaged or defective garlic, the management methodology of Avilla Consulting was implemented, together with its SIT (Integrated Technology System) tool, with the purpose of individually monitoring the performance in relation to quality for each employee.


The following steps were taken:
  • Implementation of Standard Operating Procedures determining work standards and types of products;
  • Defect identification training to reduce failures during process execution;
  • Implementation of SIT – Integrated Technology System – as a way to monitor quality results in real time;
  • Quality Stratification by Planting.

L2 Agronegócios implemented Quality Management methods based on the Lean Manufacturing philosophy, focused on enhancing processes. Quality monitoring was the first objective to be outlined for this project.


Solution:

The analysis model implemented by Avilla Consulting, aiming to increase the quality and reduce the “bruised garlic” defect, was based on daily feedbacks, training so that it was possible to reach an effective solution.

At first, it is possible to visualize the increase of the daily quality results through the SIT system since the beginning of the implementation until the present day.

Financial Gain From The Increase In The Quality Results Of The Garlic Cut
*Some information has been hidden due to confidentiality


Based on daily monitoring, the % of damaged garlic defects was stratified and how much this particular defect symbolized daily losses according to the volume produced and lost value (value: difference between a garlic with all teeth and one garlic missing cloves).

With the formula below, we were able to calculate the value of financial losses per injured garlic in reais and we were able to stratify it by Planting (PL).

[Produced Volume (Kg) / 10 (1 box with 10 Kg)] x [% Defects Injured Garlic] x [Value Difference Between Garlics]

After identifying the losses, we evaluated the increases in the PL quality indexes, as shown below:

Financial Gain From The Increase In The Quality Results Of The Garlic Cut
*Some information has been hidden due to confidentiality

With the data stratified, we approach growth rates per capital through quality enhancement (defect reduction).

Produced Volume (Kg) / 10 (1 box with 10 Kg)] x [% Quality Increase] x [Value Difference between Garlics]


With this stratification, daily training was carried out with employees, addressing analyzes of individual paretos and identifying the biggest defects per person.


Results:

L2 Agronegócios achieved a significant reduction, in the order of 4.5% in the reduction of defects in the products, that is, in the increase of quality results referring to the field, related to 16 days evaluated.

In addition to the quantitative results, qualitative gains were found through the qualification of those responsible and managers of the process, achieving greater integration and communication between the sectors and greater engagement on the part of the teams to identify potential improvements.

These improvements, as well as all others implemented with the Avilla project, will be perpetuated by the professional who has been trained and qualified to monitor and identify anomalies in the process. Managers meet on a daily basis to discuss indicators, as a way of engaging those involved in achieving goals and seeking solutions to problems.

The biggest beneficiaries of the specific actions, in addition to the company itself, were the partner producers who are being financially, positively and directly impacted by the increase in operating efficiency at L2 Agronegócios.

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