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Improvement plan based on industrial engineering tools to reduce cost overruns in a heavy machinery rental company

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Date of Conference

July 18-22, 2022

Published In

"Education, Research and Leadership in Post-pandemic Engineering: Resilient, Inclusive and Sustainable Actions"

Location of Conference

Boca Raton

Authors

Cadillo-Estrella, Marilyn Brisly

Chacón-Mariño, Oswald Guissepi

Flores-Anderson, Ingrid Giomar

Muñiz-Luna-Victoria, María Sofía Carolina

Viar-Narro, Anghela Brisset

Geldres-Marchena, Teodoro

Geldres-Marchena, Teodoro

Abstract

This work was prepared in a heavy machinery rental micro-company, where the economic losses generated in the company in the last year were determined in order to then propose an improvement plan to reduce said cost overruns by at least 25%. The improvement proposal designed used the 5S methodology industrial engineering tools, including plant distribution, ABC classification and linear warehouse distribution; Materials Requirement Planning (MRP) and performance indicators. The implementation of the proposal was simulated in the ProModel software and in the Monte Carlo simulation model. It was determined that the improvement plan reduces the cost overruns to S/11,314.15, which means a reduction of 55.44%, that means that the hypothesis was verified. Likewise, the economic improvement proposal was analyzed where an IRR of 20%, a NPV of S/7,986.00 and a B/C of 1.79 were obtained, which indicates that the implementation of the proposed improvement plan is profitable for the company.

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