Economics Toward a lean management ECO1. I ORGANIZE MY PROCESS OF PRODUCTION
ECO2. I REDUCE MY WASTES OF PRODUCTION
Flower is perishable agricultural product, so in order to avoid losses as many as possible, it is the most economical to produce the product what cust omer needs, the exact amount, and to deliver it at the right place, at the right time. For example, responsive order system, production schedule following
ECO3. I AM READY TO EXPORT MY PRODUCTION
the order, shipment instructions to growers, and fast reliably distribution from producers to customers. For build it, we are inspired by Just-in-time of Toyota Production System or method of eliminating waste, and eventually we will adapt the s a m e m e ch an i s m t o international export.
ECO1. I ORGANIZE MY PROCESS OF PRODUCTION
India has good prospects in the floriculture industry but it is still largely unorganized. So far growers have not been receiving orders, and they sell the volume of flowers which could be harvested at the auctions or to the wholesalers. In the first step, we shift from the old system to the new optimized production process. We aim at establishing a process for deploying the order system, building the production schedule and delivering quickly to customers.
REFERENCES
BENEFITS Farm products are unlike industrial products in difficulty of production control. Therefore, in the traditional process, there is no production schedule and not enough to respond to customer needs, or a lot of losses had been made. Thanks to new process, we are able to achieve quick response to customer needs, lean production and cutting of losses during transportation. Moreover, we can expect that the price will be lower when the supply exceeds the demand.
The necessity of precision agriculture. – Use appropriate technology to bring precision agriculture to Africa and India. Global-economic-symposium.org
EXAMPLES
STEPS 1.
You should set up an electronic order system which can use with your customers.
2.
You can make a production schedule thanks to orders.
3.
You must find transporters or own logistic chain for deliver in time, at the right place without fail.
For the electronic order system. – The system calls cultivators to harvest and shipment after receiving orders from several sales destinations. Itmedia.co.jp (in Japanese) For the production planning: interface.highwire.org For the logistic system: ideas.repec.org , Growdirect.com
ECO2. I REDUCE MY WASTES OF PRODUCTION
In the second step, we will completely eliminate elements of production that do not create value (MUDA = wastes) in order to reduce the cost while producing timely the high quality product and receiving customer orders. It calls “MUDA” in Toyota Production System. The most important thing is to continue struggling on elimination of MUDA, and also to put 5S get clues to find wastes.
BENEFITS Eliminating MUDA is required in various phases, for example, to cut extra motion and transportation promotes your operational efficiency. Also, we can expect cost reduction to avoid over-production, too much inventory and defects. Just keep the workplace neat and tidy, we can discover wastes, and it will lead to improvement of the workplace.
STEPS For eliminate MUDA and improve for the better , there are several approach. 1.
You introduce the method of 5S on your production process.
2.
You find ways to visualize your wastes (reference 1).
3.
You make an effort for the continuation of improvement.
REFERENCES Reference 1 : About the seven MUDA, and the 5S : doshnsclick.files.wordpress.com
EXAMPLES There is example of initiative that was introduced into agriculture Toyota Production System in Japan. It was a salad leaves farmer. Similarly, Indian rose grows fast and it can be harvested several times a year. Therefore it’s easy to measure the improvement. Tokyokeizai.net (in Japanese)
ECO3. I AM READY TO EXPORT MY PRODUCTION
India’s share in international trade in floriculture is around 0.18%. To compete with Kenya and Uganda which are major exporters to the European market, we have to take more overseas orders. For the third step, in order not to miss the opportunity to enter foreign market, we ready for export such as we could respond quickly to international orders.
BENEFITS Computerization allows for immediate response and does not miss the overseas demand. To facilitate both logistics and export conditions in cooperation will lead to lowering the barriers for many farmers to export. As a result, Indian trade would rise in the world market.
REFERENCES CBI (Centre for the Promotion of Imports from developing countries) : cbi.eu
EXAMPLE
STEPS 1.
You connect with international customers through real-time order system.
2.
You improve your logistics with other farmers in collaboration.
3.
You work on the negotiation for conditions of export.
Example of joint export in Israel : hortibiz.com Example of joint project CBI and Ethiopian flowers : cbi.eu