CC BY
4/Agricultural lin
Bulletin of Stavropol Region I I \J
_= № 1(21)/1 Supplement, 2016 s-
UDK 631.151.3
D. O. Gracheva
ON THE QUESTION OF THE VALUE CHAIN MANAGEMENT IN CROP PRODUCTION
This article describes the features of process-oriented management in the agricultural organizations functioning in the sphere of plant growing. Specifically identified two types of business process management upper level in the cultivation of winter wheat.
Key words: process-oriented management, business process, agriculture, winter wheat.
Darya Olegovna Gracheva -
Enterpreneurship and the Global Economy Department
Stavropol State Agrarian University
Stavropol
Tel: 8 (9624) 96-42-81 E-mail: pochtadg@mail.ru
Using the value chain allows a different angle to consider the characteristics of agricultural production management. Dividing the main business processes of winter wheat production into two parts: before and after obtainig products in the material form, having a certain customer value (figure 1), can be distinguished into two different types of management with diverse characteristics.
The first type covers the management of business processes associated with inbound logistics, growing crops, harvesting, and the object of the second type of management is a chain of consecutive
business processes from wheat transportation to the threshing-floor to its sale.
A distinctive feature of the first type of management is the probabilistic nature of obtaining planned harvest and various methods of material resources consumption and methods of work.
The second type of management is characterized by certainty results of the physical parameters of volume and quality of grain, purification methods and storage, but, from the other side, the probabilistic nature of revenue from sales, depending on prevailing market conditions.
border separation of the key business processes chain Í production yield, which has consumer cost
(grain heap)
incoming^^S logistics y growing crops / i transpor- N. tation / grain purification y storage and N. quality y evaluation / .„A
the 1 st type of management the 2d type of management
Figure 1 - Selecting of two types of management in the framework of the winter wheat production value chain
The main goal of the first type of management - to collect the maximum possible grain harvest in the current conditions of the agricultural year, and the task of the second type of control - to save the volume and quality of grain by minimizing losses during transportation, storage and processing, as well as selling products with the maximum benefit for the agricultural enterprise.
After harvesting in the economic turnover of agricultural enterprise appears product as an economic category, which has a certain value and quality indicators. Therefore, there are important questions, such as rational use and proper organization of storage and processing of grain, choosing the most economically feasible modes and methods.
Consider in more details features of processes control within the framework of the first type of management.
In accordance with the concept of M. Porter the kind of activity named «incoming logistics» means providing of production by certain kinds of raw materials, which then are converted directly into the product in technology conditions. This group of raw materials in the practice of management accounting is often referred as «basic raw materials».
Different types of raw and other materials relating to this group are used for production in accordance with technological norms and are variable costs, the value of which is directly proportional to the volume of output.
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The calculation of the need for raw materials is mainly is made on the basis of the planned volume of production, taking into account the technological standards of consumption and stocks.
In the production of winter wheat to this group of raw materials can be referred seeds, fuel, fertilizers, plant protection products (herbicides, fungicides, insecticides), as well as the water used for soil fertilizer and plant protection products. These conditions are related to the characteristics of agricultural production.
In the process of cropping the main types of raw materials transfer their value to products not directly as in industrial production, but indirectly - through incorporation into the soil. Technological standards for the use of the main raw materials are determined per hectare of crops for each specific culture.
Within the framework of the particular technology application, the rate of productive consumption of the main raw materials are not constant and are adjusted depending on the conditions of the agricultural year (weather conditions, phytosanitary environment, changes in the characteristics of the soil, etc.). Therefore, the volume of using raw materials for one production cycle for each crop year has a variant character (for winter wheat about 330 days).
For example, seeding rate set depending on the climatic and weather conditions (early or late planting dates), seed quality, grade, sowing method, field weediness, precursors, and other factors. The norms of mineral fertilizers is calculated taking into account the needs of the crop nutrition, reserves of nutrients in the soil, moisture, etc.
When modeling business processes as part of «incoming logistics» must be represented the information as a separate object input into the process of production. The information obtained by the evaluation (diagnostics) the conditions of agricultural production, on the basis of which application rates of the main raw materials are adjusted.
In the industry in the absence of at least one commodity item from the group of the main raw materials provided by technology, output of finished products, in principle, is not possible.
In agricultural production situation is rather different. Influence of commodity item as a part of the
main raw materials on the possibility of producing the crop is ambiguous.
So without the seed and a complex mechanized operations it is really impossible to get harvest (business process of growing crops will not take place). However, the crop can be obtained without fertilizers and plant protection, but in a relatively smaller volumes and lower quality.
Fertilization gives a boost to the future of the crop, and the use of plant protection products reduces the possible loss of future crops from pests and diseases.
Unlike most other economic activities in the agricultural production there is no direct proportional relationship between the volume of the crop and the amount of used raw materials.
As a result of impact on the process of growing crops such factors as climatic, biological, soil conditions, the relationship between the volumes of soil application of seeds, fertilizers and plant protection products and the volume of the resulting crop is probabilistic in its nature.
Even in the situation of «the one hundred percent» implementation of all agricultural activities some factors can provide the total or partial loss of weather can cause such natural phenomena as the long rains, the hot winds, droughts, ice crust, rising water, wind and water erosion, landslides and others.
The objective need is a crop insurance, and especially - for the winter wheat, which has among cereal the longest production cycle.
Modern types of insurance allow to insure agricultural crops in the event of loss or damage from drought, waterlogging, damping-off, freezing, hail, storms, hurricanes, floods, mudflows, lodging of plants, soil crusting, rotting of seeds in the soil, flushing, siltation and skid crops, a delay in the maturation and harvesting, as well as from disease and pests.
In our view crop insurance should be an important management (support) process in a process-oriented model of farm management.
The crop year conditions for growing the winter wheat make significant changes not only in the rules and make the volume of the main raw materials, but also in how to perform producing operations as a part of the business processes of the second and subsequent levels (figure 2).
The upper level basic processes
incoming logistics
tillage
growing crops
harvesting
The second level basic processes
sowing with
harrowing
mineral fertilizing
pesticides introduction
firebreaks stubbling
Figure 2 - Key business processes of the first and the second level of winter wheat production
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For example, the method of tillage (plowing, treatment with plane or disc harrow) depends on the precursor particle size distribution (mechanical) composition of the soil, power humus horizon, the humidity level and other parameters.
Winter wheat is one of the most diseased crops and requires constant phytopathological control. In the process of growing adverse phytosanitary conditions may occur in crops and the need for special
measures of plant protection from weeds, pests and diseases will increase.
On the stages of cultivation and harvesting almost every production process is preceded by an analysis and diagnosis of conditions of work. After getting results an agricultural enterprise management determines the need to adjust technology - the usage of a particular method of technological operations.
Table 1 - Types of diagnosis before starting the production process
Production processes Types of diagnosis (agro-technology processes)
Seed dressing Seed fitoexpertise
Presowing tillage Assessment and forecast weather conditions. Information about predecessor. Diagnosis of soil (type, soil density, humidity level, the degree of weed infestation by weeds, power of humus horizon, and others)
Seeding with fertilizing Assessment and forecast weather conditions (temperature, availability of precipitation). (mechanical) soil composition. PH of the soil. Evaluation of soil moisture reserves Assessment of the quality of seed (variety, reproduction)
Harrowing Analysis of the winter wheat crop before snowmelt. Diagnosis of density and uniformity of the crops. Diagnosis of the bulging crops
Adding fertilizer (spring fertilization, foliar application) Assessment and forecast weather conditions. Temperature and moisture level in the soil. Diagnosis of the nutrient content of the soil. Evaluation of the density of crops. Diagnosis of the foliar cover (separately - diagnostics of flag leaves). Monitoring the passage of plants vegetation season
Adding plant protection Diagnosis of phytosanitary condition of crops. Agrobiological control phase at the beginning of winter wheat outlet in the tube. Diagnosis of the foliar cover
Harvesting Assessment and forecast weather conditions. Preliminary assessment of the quality of grain by using threshing control method or sheaf approbation by taking him on a field diagonally
Entering data in the knowledge base after the completion of production cycle
Í
Measures to elim inate the causes of deviations
Act
TV
Monitoring results and deviation analysis
Check
t
Technological map development
Plan
D
growing
pesticides introduction
firebreaks stubbling
Knowledge base
Process execution
Do
Diagnosis of conditions of work operations performance
\7
Analysis and comparison of diagnostics results with the the information in the knowledgebase
Adjustment of application rates of m aterials and methods of works
Figure 3 - Modified Shewhart-Deming cycle of the business processes management of the process of
growing and harvesting of winter wheat
Thus, various types of diagnosis are an integral part of management and information is a basic resource inputs to the business process of upper and subsequent levels. From the perspective of business process modeling, process diagnostics can be de-
scribed in detail as part of the support process - «agricultural technology.»
Guidelines agricultural enterprises in the constantly changing environment perform production processes require flexible planning tools producing
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operations, using as input the results of diagnostic and have an automation functions with resulting parameters calculation.
In our opinion, in the management of the agricultural enterprise, and it is useful to have the knowledge base - accumulated structured historical data on the implementation and results of the production process, operations in certain weather, soil and phytosanitary conditions of each crop year.
Such knowledge base will support management decisions about determining application rates of seed, fertilizer, crop protection products, the timing and content of work, methods of agricultural machinery using, financial security of the company. In fact, the knowledge base is «digitized» the experience of doing business in different conditions of the agricultural enterprise.
Taking into account the specifics of farm management discussed above in the framework of specific business processes, the classic management Dem-
ing- Shewhart's cycle («Plan-Do-Check-Act») may include additional algorithms of management actions (figure 3).
Developed flow chart before executing business processes, depending on the varying soil and climatic conditions, phytosanitary situation is corrected in terms of application rates of the main raw materials, and methods of work.
Adjustment of the flow chart is the result of the corresponding type of diagnostic analysis of the results and comparison of results with the knowledge base of agricultural enterprises.
Further algorithms administrative actions, such as «the execution of processes,» «monitoring results and analysis of deviations,» «measures of elimination the causes of deviations» is not different from the Deming-Shewhart's cycle, except for the additional actions «adding data on completion production cycle in the knowledge base « (working knowledge).
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