Supply Chain Analysis and Improvement - Towards High Quality Ripe and Ready Avocados

Abstract

This project considers the avocado supply chain of Bertie van Zyl (Pty) Ltd, more commonly known as ZZ2. ZZ2 s avocado production is rapidly expanding and they are currently introducing Ripe and Ready avocados into the market. Ripe and ready avocados are avocados that have been ripened in ripening chambers at ZZFresh in Lanseria. There are however, added risks to ripening fruit. Since avocados only show bruising when they ripen, independent of where in the supply chain the bruising occurred, the fruit could show damage after the ripening process. According to research conducted by Ogunleye & Adefemi (2007) post-harvest losses are approximately 10-20% worldwide. It is therefore important for ZZ2 to limit post-harvest losses as far as possible In order to successfully ripen avocados, a synchronized supply chain that can ensure the timely delivery of unbruised avocados is required. To achieve this, strict control over the post-harvest supply chain processes needs to be implemented. Since there are so many variables that influence agricultural practices, this can be a challenge. The aim of this project is to carefully analyse the supply to identify possible areas for improvements and develop suggested solutions for these problems. Firstly existing literature from similar enterprises were researched. Six different Industrial Engineering Mechanisms that could help with the completion of this project were also researched and reviewed. These techniques include time studies, method engineering, business process modelling notation (BPMN), information systems design, supply chain operations reference (SCOR) and business model canvas (BMC). The results can be seen in the Literature review. For the AS-IS analysis, time was spent carefully analysing each section of the supply chain. A batch of avocados was followed through the entire supply chain whilst time, temperature and humidity measurements were taken. The supply chain was also mapped with BPMN to help clearly understand all the processes and how they interact with each other. Through the supply chain analysis two key problems were identified: Problem 1: Addressing damage caused to the trees during the picking process. Problem 2: Addressing the lack of information captured throughout the supply chain. These problems are addressed in two separate chapters. Each of the problems were carefully analysed and alternative solutions were developed. The alternative solutions were then evaluated against criteria and the optimal solution chosen. 3 For the first problem, the chosen solution to reduce the climbing of the trees is to improve the picking pole that the workers use to pick the fruit. A new picking pole was designed, developed and built. A time study was done to compare the new picking pole to the current design. The results show that the new picking pole picks avocados faster than the current picking pole, reducing the average picking time per fruit from 13.98 seconds to 7.04 seconds, a reduction of 49.65 %, almost cutting the picking time per fruit in half. The new pole is also more accurate. On average one in three tries (34.4%) with the current picking pole does not cut the fruit compared to only 12.96% missis from the new pole. This can be attributed to the fact that the new pole requires much less aiming than the new pole. Further improvements for the new design were also discussed. These improvements include increasing the ring diameter as well as the bag size, selecting the best material for the bag and increasing the length of the cutting blades. The second problem is addressed in a separate chapter. To attempt to satisfy a growing demand for ripe and ready avocados, ZZ2 will need to utilise the ripening chambers at their full capacity. If the correct information could be captured, at the right times into a central database, the data could then be extracted from the database and used to calculate more accurately the ripening time and conditions required for each batch of avocados. Accurate and reliable information is therefore required throughout the supply chain. To ensure all the information that is required is captured, a flow chart was developed that maps out each section of the supply chain. The flow chart lists at each section of the supply chain the data fields that need to be captured. This information is then used to construct an Entity Relationship Diagram (ERD). An ERD is a graphical representation of an information system that defines the relationship between people, objects and places that form a system (Rouse, 2014). Linking the correct entities for the ERD would also create a path of traceability, implying that a final product, such as a box of avocados, could be traced back through the supply chain. In addition to determining a more accurate ripening time, this would allow ZZ2 to answer questions such as who handled the fruit and from which field and when the fruit was harvested. This project forms a full avocado supply chain analysis, looking at pre-harvest, harvesting and post-harvest operations. The information gathered through this project can aid ZZ2 in improving their avocado supply chain by eliminating problem areas in order successfully implement the ripening process at ZZFresh.