Applying “5S” – Creating a competitive advantage in the feed industry

image: Internet

According to a report by Grand View Research, by 2020 the size of Vietnam's animal feed market will reach 10.55 billion USD and need 25-26 million tons of animal feed. In recent years, this industry has grown and developed well with an increase of 13-15%/year.

According to USDA, although Vietnam's feed demand decreased by 15% in 2017 compared to 2016, USDA believes that Vietnam's feed demand will increase again in 2018. According to a report by the Ministry of Agriculture and Agricultural Development. pine. Currently, Vietnam's feed supply has exceeded demand, but prices continue to increase; The main reason is that Vietnam's feed industry is still strongly dependent on the import of raw materials (95% fishmeal, flavoring materials, 40-45% corn) and foreign currency conversion has contributed to the increase in production costs. 10-20% more. Not to mention the characteristics of the animal feed industry, which has a very high rate of material loss and is prone to change in quality due to being easily affected by the weather and the surrounding environment.

Many businesses believe that in order to minimize loss and stabilize quality, it is necessary to invest in advanced technologies. Indeed, investing in technology is one of the effective ways. However, to save costs and optimize equipment, businesses can rely on management methods. Loss prevention and product quality assurance

Feed products require an established process and ongoing monitoring.

Applying 5S through steps: Sort, Sort, Clean, Care and Ready – is an effective way to improve the working environment and enhance business performance from mobilizing human resources. , make use of available resources; help save investment costs for improvement projects. And especially, in terms of awareness, each employee has a sense of monitoring performance, regularly weighing and measuring, and making timely adjustments to help stabilize quality and quickly detect key points. the latch causes the problem.

In the past time, many enterprises have implemented improvement projects at factories through 5S; The results obtained from one of the French feed mills in Vietnam consulted by John&Partners in 3 months have achieved outstanding improvement indicators: OEE (Effective Equipment Operation Index) ) increased from 65% to 73%. The level of poor quality products decreased from 3.2 to 1.5%. This achievement can be achieved without spending too much investment in technology – this is also the preeminent point in applying 5S to save efficiency and continuously improve.

To overcome the difficulties caused by limited supply, the best way is to eliminate unnecessary waste. With the market trend gradually saturated, supply has exceeded demand, businesses need to make profits from cost savings, optimizing equipment efficiency, resources, and production operations.

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