Can Lean Management Principles Help Optimize Agriculture? Application and Evaluation on Selected Farm Cultivating Spring Barley in the Czech Republic

Bc. Miloš Hána

Master's thesis

Abstract:

Constantly increasing global competition challenges businesses, to optimize operations, to stay profitable and ahead of the competition. Even the agronomists know their business thoroughly based on their previous long experience, continually evolving management practices on the one side, and rigidity of established stereotypes on the opposite side, encourages the adoption of new methods. In order to improve the performance of the company, an external viewpoint is often necessary to discover bottlenecks and evaluate each step accordingly in value adding process. The objective of the study “Can Lean Management Principles Help Optimize Agriculture? Application and Evaluation on Selected Farm Cultivating Spring Barley in the Czech Republic »; is to observe and research applicability of lean principles usually used in the production industry, in different segment, in the agriculture. The goal of the research is to evaluate possibility of introducing the Lean Management principles into specific industry. A sector, which is highly volatile, where the price depends on the weather, the season, the location, Agro-technological development and all lined up with the need of thorough forecasting up to several years ahead. On the other hand, low product variability, logistics and repetitive working operations, favours for implementing/evaluating Lean methods to the process. The output of the work is to evaluate processes during the whole cultivation of barley, with goal to shorten the lead times between every step and eventually optimize the business process of order cycle, to find bottlenecks and inefficient workflow. We work with two hypotheses. Can be Lean techniques applied on selected farm regarding cultivation of the malt barley? Second hypothesis is, can be 5S method applied and what are the results of hypothetical implementation? A literature study is performed in order to gain an insight to factors influencing the business cycle of growing barley and adjacent processes. Information retrieved from the literature study helps to detail the theoretical framework. As the main analysing tools are used Value Stream Mapping, GANTT framework and 5S for floor plan designation. Proposed method is to identify all ongoing processes, which adds value to the final quality of barley required by malt industry. We examine all the actions and processes from the preparation of field, through cultivation and final delivery to the customer. These steps comprise of mapping existing farming processes - planning purchasing seeds based on negotiated amount proposed by a malt factory, farm preparation in terms of availability of machinery and human resources, seeds minimizing sowing techniques, proper care of growing crop from standpoint of steps involved within exact time windows, drying and then final conservation in the storage (silos) to prepare finished product for a final transport to the customer. This will present the current situation and overall efficiency from which we can deduct non—add value activities and recommend which lean techniques should the Company implement, to achieve better and stable quality outcome during the whole year. Obtained information will be in form of panel data and questionnaire evaluating the hypothetical implementation of Lean methods (5S) and literature overview. Three sub-objectives have been set in the processing of this work: • Literature research of the subject and adjacent topics – History of Barley in Czech Republic, current situation regarding procurement of malt and description of quality measures that provides the value for the customers, Lean history, principles of Kaizen philosophy, Lean management used in the production, presentation of the chosen methods, Value Stream Mapping, GANTT Chart and 5S. • Characteristic of AGRA Řisuty s.r.o., analysis of internal materials and description of the business cycle regarding barley cultivation. Evaluation of order cycle, value stream, timeline and lead

Abstract:

times during cultivation. • Preparation of a semi-structured interview with Agra Řisuty’s storage mister in order to obtain general information on the use of the 5S method.

Keywords

Supply Chain Management, 5S, Lean production, Lean Management, Spring Barley, GANTT chart, Farm Management, Kaizen, Information System, Agriculture, Quality, Malting Barley, Czech Industry, Gemba

Language used: English

Date on which the thesis was submitted / produced: 6. 9. 2021

Thesis defence

• Supervisor: prof. Ing. Ivana Tichá, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management