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Grain Operations Grain Operations WebinarWebinar SeriesSeries

WebinarWebinar 22

Keys to a Successful Keys to a Successful Grain Handling OperationGrain Handling Operation

Presenter: Presenter: Jim Voigt, President, JFV Solutions Inc.Jim Voigt, President, JFV Solutions Inc.

Outline Outline –– WebinarWebinar 22

1)1) Definition of successDefinition of success2)2) Customer serviceCustomer service3)3) Employee developmentEmployee development4)4) Creating and retaining valueCreating and retaining value5)5) Asset managementAsset management6)6) Questions and discussionQuestions and discussion

Purpose of a grain handling Purpose of a grain handling facilityfacility

•• To To receive,receive, process, store, and ship process, store, and ship grains and oilseeds.grains and oilseeds.

•• Provide the first steps in the feed, Provide the first steps in the feed, food, and fuel supply chains acting food, and fuel supply chains acting as the facilitator between producers as the facilitator between producers and feeder/processors.and feeder/processors.

•• Provide storage and secure the Provide storage and secure the worlds grain related food supplies worlds grain related food supplies (sustainability).(sustainability).

Sustainability = Value added Sustainability = Value added supply chainsupply chain

What is What is ““SuccessSuccess””??

The achievement of something desired, planned, or attempted.

Standard Operating Goals• Safe operation• Profitable operation• Sustainable operation

Safe OperationSafe Operation

•• Safe work placeSafe work place•• TrainingTraining•• Behavioral Safety / engaged Behavioral Safety / engaged

employeesemployees•• Commitment of management Commitment of management

and supervisionand supervision

Profitable OperationProfitable Operation

•• Satisfactory return to investorsSatisfactory return to investors•• Manage total facility costManage total facility cost

•• Operating costOperating cost•• LaborLabor•• EnergyEnergy•• MaintenanceMaintenance•• Supplies, etc.Supplies, etc.

•• Administrative costAdministrative cost•• Capital costCapital cost

Sustainable OperationSustainable Operation

•• Long term viewLong term view•• PlanningPlanning•• Customer serviceCustomer service•• Employee DevelopmentEmployee Development•• Continuous ImprovementContinuous Improvement

•• Eliminate wasteEliminate waste•• Eliminate varianceEliminate variance

•• Cash flow and profitsCash flow and profits

Customer ServiceCustomer Service

•• Meet customerMeet customer’’s needss needs•• Needs vs. WantsNeeds vs. Wants

•• ReliableReliable•• RepeatableRepeatable•• ResponsiveResponsive•• Two way communicationTwo way communication•• PerceptionPerception

Employee DevelopmentEmployee Development

Trained / motivated employees Trained / motivated employees •• Employee selectionEmployee selection•• Employee trainingEmployee training•• Workplace issuesWorkplace issues•• Consistent and fair treatmentConsistent and fair treatment•• Employee recognitionEmployee recognition•• Career vs. a jobCareer vs. a job

Creating and retaining valueCreating and retaining value

•• SamplingSampling•• GradingGrading•• WeighingWeighing•• Inventory managementInventory management

•• QualityQuality•• QuantityQuantity

•• Blending for profit maximizationBlending for profit maximization

Sampling, Grading, Sampling, Grading, WeighingWeighing

Sampling Sampling –– elements of a elements of a good programgood program

•• Written and verified proceduresWritten and verified procedures•• TrainingTraining•• EquipmentEquipment

•• SamplingSampling•• DeliveryDelivery

•• MaintenanceMaintenance•• Follow up Follow up –– ““you can expect what you can expect what

you inspectyou inspect””!!

Types of SamplersTypes of Samplers

Probes

Grab

Spout

Pelican

Belt

Probing PatternsProbing PatternsFlat Trailer

Hopper Trailer

X

X

X X

X

X X

XXX

X X

X

Grading Grading –– elements of good elements of good programprogram

•• Written and verified proceduresWritten and verified procedures•• TrainingTraining•• EquipmentEquipment•• MaintenanceMaintenance•• TestingTesting•• FollowFollow--upup

Sample PreparationSample Preparation

Grading EquipmentGrading Equipment

Test weight

Micotoxins

MoistureProteinOil

Grading EquipmentGrading Equipment

Grading ChartsGrading Charts

Weighing Weighing –– elements of a elements of a good programgood program

•• Design and installationDesign and installation•• TrainingTraining•• TestingTesting•• MaintenanceMaintenance•• ProceduresProcedures•• SecuritySecurity

Weighing EquipmentWeighing Equipment

PlatformBelt weigher

Bulk weigher

Typical design for a bulk Typical design for a bulk weighing scale ( Garner)weighing scale ( Garner)

http://www.gipsa.usda.gov/fgis/vrml/scale1.htm

Inventory Management Inventory Management –– elements of a good programelements of a good program

•• Handling lossesHandling losses•• Moisture lossesMoisture losses

•• DryingDrying•• AerationAeration

•• WeightsWeights•• Grading Grading •• Quality degradationQuality degradation•• TheftTheft

Inventory Management Inventory Management PracticesPractices-- QualityQuality

•• Coring and turningCoring and turning•• CleaningCleaning•• DryingDrying•• AerationAeration•• FumigationFumigation•• Minimal elevationsMinimal elevations•• Management by Management by ““walking aroundwalking around””

Inventory Management Inventory Management -- QuantityQuantity•• Physical loss Physical loss

•• Leaks and spillsLeaks and spills•• Moisture loss Moisture loss –– drying & aerationdrying & aeration

•• Quality LossQuality Loss•• Grade degradationGrade degradation•• Mixed or Mixed or mismis--binnedbinned•• InsectsInsects

•• Inventory proceduresInventory procedures•• SecuritySecurity

BlendingBlending

•• An opportunity to add value!An opportunity to add value!•• Provides service to producerProvides service to producer•• Provides service to end userProvides service to end user•• Requires management attentionRequires management attention

Blending Blending

Prohibited practices:Prohibited practices:••to add or combine FM or dockage to to add or combine FM or dockage to grain once such material is removed grain once such material is removed ••Blend one kind of grain with another Blend one kind of grain with another except to make mixed grainexcept to make mixed grain••Addition of waterAddition of water

ItIt’’s not s not ““MagicMagic””

•• Know specs or contract Know specs or contract requirementsrequirements

•• Know what you have Know what you have •• PlanPlan•• Utilize appropriate blending methodUtilize appropriate blending method

•• PearsonPearson’’s squares square•• CuCu--sum Loading plansum Loading plan•• Automated blending programAutomated blending program

PearsonPearson’’s Squares Square

Bin 1 moisture  16.1 ‐0.9 0.9

Desired 14.5

Bin 2 moisture 13.6 1.6 1.6Total 2.5

Convert all variances to positive numbers

PEARSON'S SQUARE

PearsonPearson’’s Square Solutions Square Solution

16.1% 0.9 36%

Desired 14.50%

Bin 2 moisture 13.6% 1.6 64%2.5

Bin1 Mositure .9 / 2.5 = .36 x 100 =

1.6 / 2.5 = .64 x 100 = 

Pearson's Square

Blend woud be 36% of of Bin 1 and 64% out of bin 2

Automated blending and Automated blending and weighing systemsweighing systems

Asset ManagementAsset Management

•• Preventative MaintenancePreventative Maintenance•• InspectionInspection•• TestingTesting•• TrainingTraining•• UpdatingUpdating•• CertificationCertification•• Planning Planning –– useful lifeuseful life

Why are we spending time Why are we spending time on this topic?on this topic?

Cost of not doing it right!! Cost of not doing it right!!

$/bu. 0.25% 0.50% 1.00%$8.00 10,000$   20,000$    40,000$     $6.00 7,500$     15,000$    30,000$     $4.00 5,000$     10,000$    2,000$       $16.00 20,000$   40,000$    80,000$     $12.00 15,000$   30,000$    60,000$     $8.00 10,000$   20,000$    40,000$     

500,000 bushel corn 

bin

% shrink or loss

500,000 bushel bean 

bin

Missed Discount # of Bushels $0.01 100,000 1,000$       0.05 100,000 5,000$       0.01 500,000 5,000$       0.05 500,000 25,000$     0.01 1,000,000 10,000$     0.05 1,000,000 50,000$     0.01 5,000,000 50,000$     0.05 5,000,000 250,000$  0.01 1,000 10$             0.05 1,000 50$             

Cost of not doing it right!! Cost of not doing it right!!

Summary Summary -- Elements of Elements of Success Success

PeoplePeoplePeoplePeople

PeoplePeople

Summary Summary –– Elements of Elements of successsuccess

•• Know your customersKnow your customers•• Know your capabilitiesKnow your capabilities•• Know your costKnow your cost•• PlanPlan•• Written proceduresWritten procedures•• TrainingTraining•• Active supervision and managementActive supervision and management

Information sourcesInformation sources

•• http://http://www.gipsa.usda.gov/fgismain.www.gipsa.usda.gov/fgismain. htmlhtml

•• Local inspections serviceLocal inspections service•• State UniversitiesState Universities•• State Feed and Grain Ass.State Feed and Grain Ass.•• GEAPSGEAPS•• NGFA or other trade associationsNGFA or other trade associations

WebinarWebinar 22

Questions?Questions?

EE--mail us at:mail us at:jfvsolutions@hotmail.comjfvsolutions@hotmail.com

DisclaimerDisclaimer•• This lesson is intended for a global audience that works in This lesson is intended for a global audience that works in

a variety of different styles of facilities as well as economic a variety of different styles of facilities as well as economic and governmental conditions. The content of this lesson is and governmental conditions. The content of this lesson is for informational purposes and to be used as it applies to for informational purposes and to be used as it applies to your specific situation.your specific situation.

•• The content of this lesson is not to take precedent over The content of this lesson is not to take precedent over your current plant and /or company policies and programs, your current plant and /or company policies and programs, nor any governmental regulations.nor any governmental regulations.

•• The photos used in this lesson were for illustration of the The photos used in this lesson were for illustration of the topic and are not to be taken as a recommendation for any topic and are not to be taken as a recommendation for any design or equipment depicted in them.design or equipment depicted in them.