Kanban design and implementation to reduce costs in a SME fragance producer

Abstract

The application of Lean methodologies is widely recognized for optimizing workflow, ensuring production efficiency, and minimizing costs. While methodologies such as Kanban have proven effective across various industries, their application in fragrance microenterprises remains largely unexplored. This study aims to assess the impact of the Kanban methodology on cost reduction in a fragrance-producing microenterprise by developing a replicable model. By applying realistic constraints to select the optimal alternative, followed by its design and implementation, the findings indicate a significant improvement in operational efficiency of 10.65%. Additionally, the reduction in opportunity costs resulted in a profit increase of $5,953.25. Furthermore, financial indicators, including a net present value (NPV) of $264.82 and an internal rate of return (IRR) of 16.20%, confirm the financial viability of the proposal. This study contributes to the adoption of Lean methodologies in resource-constrained microenterprises by providing a practical and effective approach to process improvement.