Improvement of production process operations to reduce production costs in tannery Piel Trujillo S.A.C, 2016

Abstract

This study sought to improve production-process operations to reduce production costs at the “Trujillo Piel Tannery S.A.C.” in 2016, given that currently companies are faced with competitive markets and must seek economic efficiencies in their activities in order to be competitive. The 36 activities of the production-process of the Ribera stage were taken as a sample, for which a flowdiagram detailing the work was prepared, plus activity and process-operations diagrams. Likewise, activity-based costing methodology was used to identify critical activities, which were analyzed

using Pareto, Ishikawa, 5-Why Analysis, and Failure Mode Effects Analysis. The study enabled improvements in the processes of defleshing, division, cutting, pickling and reduction. After analyzing and implementing improvements in activities, it was possible to reduce the unit cost per skin by 8.95%, showing statistically with the Wilcoxon test that operational improvements significantly improved production costs at the “Trujillo Piel Tannery S.A.C.” (p = 0.018). Financial analysis of Net Present Value and (NPV) and Internal Rate of Return (IRR) were carried out, showing that the improvements are profitable.