DOI: https://doi.org/10.62204/2336-498X-2025-2-7

IMPLEMENTATION OF MODERN PRODUCTION MANAGEMENT METHODS THROUGH THE DEVELOPMENT OF INTEGRATED MODELS OF PRODUCTION COMPETENCIES AT ENTERPRISES IN THE GRAIN STORAGE AND PROCESSING INDUSTRY

Oleksandr Voloshchuk,
Ph.D. student,
Poltava State Agrarian University, Poltava, Ukraine,
oleksandr.voloshchuk@pdau.edu.ua; ORCID: 0009-0009-8416-8073

Annotation. In today’s challenging external environment shaped by crisis phenomena in Ukraine due to martial law, there is a constant need to seek internal resources for optimizing all processes, reducing losses, and minimizing ineficiency. It is also necessary to learn to act under uncertainty, to flexibly adapt processes and approaches, and to conduct retraining even in traditional specializations. This is especially acutely felt by those industries that have significant production assets with a large number of personnel, because the main negative impact falls on people. While most enterprises, as well as the national educational system, have learned over decades to teach professional skills effectively, the situation is much more complicated when it comes to personal competencies. Yet it is precisely these competencies that are among the key ca- pabilities that can save companies in times of crisis, making them more eficient and competitive. Although there is a wide array of methodologies and tools available for study and development, there is a lack of understanding of how to create a shared vision and common understanding among all employees that aligns with the strategic needs of the company. For this purpose, in- tegrated models of corporate competencies are emerging. In this study, we examined how such models are developed and function based on the example of Ukrainian agricultural enterprises, and how they specifically affect the grain storage and processing sector. These tools can be used not only by enterprises in this industry but also by any manufacturing companies to systematize their production and personnel management methods, directing them not just toward improving the eficiency of individual processes but toward achieving their overall strategic goals.

Keywords: management, eficiency, production processes, grain storage and processing en- terprises, complex of modern methods, production management, lean manufacturing, lean-man- agement, corporate competencies. 

Formulation of the problem. Under current conditions, the primary resource for all companies – especially manufacturing ones, such as enterprises in the grain storage and processing industry – is people. It is precisely through human involvement that it becomes possible to improve the efficiency of existing processes, reduce resource consumption, minimize losses, and automate operations. However, unlike professional training, which is well developed and clearly understood, the personal characteristics of individuals are often overlooked – despite the fact that they contain an additional, valuable resource. The question arises: how can personnel be trained in such competen- cies, and how can it be communicated what the company needs and what aligns with its goals? To address this, it is necessary to create a clear and well-defined model at the company policy level, which allows for the systematization and utilization of human potential in achieving both tactical and strategic goals of enterprises.

Analysis of recent research and publications. There is a significant body of work – both international and domestic – on the principles and methods of managing pro- duction processes. Among the deep corporate models, it is worth mentioning Ohno, T. [1]; Liker J. K., Meier D. P. [2], [3], who described the production system of «Toyota», known as “TPS”, which became the foundation for the development of the lean produc- tion system (“Lean”), further elaborated by Womack J. P., Jones D. T., and Roos D. [4], and subsequently by many other international and Ukrainian authors. Among Ukrainian scholars, Bondarenko S. M. [5], Malichevskyi V., Hodniev Ye., Kashchenko V., Leleka [6], have made notable contributions. Prokipets O. K., Petrusha O. O. [7], has more specifically analyzed the food industry while Pysarenko S., Mykhailova O., and Nest- erenko R. [8] addressed personnel management issues.

Kozhan T. O. [9], Shpak L. I. [10], described corporate competencies in various industries and the more general conceptual apparatus was developed in the work of Tk- achuk O. L. and Shcherbak V. H. [11].

Most publications in this sector consist of descriptions of such models by the en- terprises themselves, such as the models developed and described by companies like «Kernel» [12], «Ukrlandfarming» [13], and others.

Setting the purpose and objectives of the study – to continue the research into the functioning and implementation of modern production management methods in the grain storage and processing industry, and to analyze examples of their development and implementation in the form of methodological systems that correspond to the strategic goals of companies and help achieve specific results. Furthermore, the study aims to identify the outcomes achieved through the introduction of such systematic models, and to determine how this general tool can be utilized by other manufacturing enterprises across various industrie.

The main research material. One of the complex issues in implementing modern production management methods at enterprises is the lack of understanding regarding which methods should be applied and how to integrate them into production activities. Although many methods exist, they produce the most effective results not individually but as part of a coherent system. Many enterprises, departments, and individual employ- ees study certain tools or methods, implement them in their work, and achieve some added value. However, real results are possible only when everyone in the enterprise operates under the same conditions. This enables the identification and adjustment of priorities in response to external or internal changes.

We analyzed how Ukrainian companies operating in the grain storage and process- ing sector create such systems and how these systems can be implemented at other man ufacturing enterprises.

One of the most prominent global examples of implementing a unified management system in a manufacturing company is «Toyota» and its “TPS” [1]. This is one of the most well-known examples, encompassing a vast number of individual tools, all har- monized into a single system. It remains a benchmark for companies across the world, while Lean management [4], based on this system, is now applied in all fields of activity. Naturally, Lean management tools are also used in agriculture in general and in the grain storage and processing sector in particular. However, the question again arises: how can a large set of individual, even if effective, tools be turned into a single cohesive system?

To achieve this, a documented system at the level of company policy or as part of the corporate code must be developed. For example, this may take the form of a «cor- porate competency model» [12]. One of the most accurate definitions of this concept is found in the work «Organization of Employee Performance Evaluation Based on a Functional Competency Model» by Tkachuk O. L. and Shcherbak V. H.: “A corporate competency model is a set of competencies developed for a specific organization, indi- cating specific behavioral indicators that the organization’s staff must possess in order to effectively perform their professional tasks in accordance with the corporate culture and goals of the organization to increase its competitiveness and effectively implement tactical and strategic goals.” [11]

This is the path taken by companies such as Kernel [12] and Ukrlandfarming [13]. They conducted research and developed corporate competency models that define which skills and guiding principles current and future employees should possess. Large-scale research was conducted within these companies to establish core competencies for all employees, along with additional competencies for managers and top-level executives.

As a result of implementing such models, a company can evaluate whether its cur- rent processes and personnel meet organizational needs. It can identify development ar- eas for employees and, most importantly, adjust and refine the system as the external en- vironment changes – adding what is necessary and removing what is no longer relevant.

In this way, each company can choose from the available tools those that best suit its specific circumstances. For instance, when a significant level of loss or workplace disorganization is identified, Lean management tools [4], including the 5S system, are implemented. All staff undergo training, and best practices are showcased. Consultants are often brought in, who begin to organize these processes directly at the production site and train managers and employees, who then continue to improve the system. When there is fierce competition, demand arises not only for product sales, but also for process- ing, transshipment, and other services. Accordingly, there is a greater need to communi- cate and cooperate with external clients, who must be engaged in cooperation. However, it is not enough for one manager to work on this alone. All employees must demonstrate customer orientation. In such cases, customer focus becomes part of the corporate mod- el, and employees are trained to understand the meaning of this competency – what behaviors are considered acceptable and encouraged, and which are not and may be seen as conflicts of interest. This creates a synergistic effect to which every employee contributes.

If a company sees growth potential in the development of new ideas and innova- tions, and seeks to instill a drive for innovation among all employees, it may introduce the competency of «inventiveness», for which the «Theory of Inventive Problem Solving (TRIZ)» [14] serves as a relevant tool. TRIZ teaches a methodical, algorithmic approach to invention. If a company needs to explore additional investment opportunities, it can introduce the competency of «internal entrepreneurship», which involves training em- ployees to identify business opportunities, create tools for submitting business ideas, allocate budgets for their implementation, and establish motivation systems.

For a more systematic understanding, I offer a table with examples of how the com- petency model can be used to achieve goals for specific tasks.

Table 1

This list is by no means exhaustive, as a competency can be developed for virtually any task – describing how employees should progress toward the goal and what tools are available to achieve it. A set of such competencies – those considered key to the enter- prise – forms the model that is most needed at a given moment. If it is a group of compa- nies, these models can differ between divisions, either partially or completely. However, a core set of competencies should be consistent across the organization.

Many companies have a general understanding of what they want, what their goals are, and even have a rough idea of how to achieve them, but in most cases, all these things are conceptual and clearly understood only by management. It is important to describe and establish these things at the policy level. Then it ceases to be an abstract concept and becomes concrete. As a result, it becomes possible to systematically analyze competencies and develop systems for motivation and employee ranking, ultimately en- hancing the demonstration of these competencies in practice.

All company structures, managers, and departments begin to shape their infrastruc- ture in a way that fosters the targeted competencies, and often employees themselves become carriers of these ideas.

This significantly reduces the costs of ineffective, sporadic, and unsystematic train- ing, searching for feedback, and trying to explain what exactly is not working, as it should in the workplace. Answers to questions appear automatically. The answers to these questions emerge automatically. It enables control over aspects typically related not to professional skills but to personal traits, which begin to evolve in a direction aligned with the company’s goals. Thus, the main resource addressed in such models is people. And since these people are already part of the production process, improving their effectiveness in achieving company goals naturally increases overall efficiency – without requiring substantial additional resources.

As an example, let us examine the second edition of the corporate competency model of the company Kernel.

Table 2

We see a clear picture of how a specialist in the company is expected to operate and which tools they are to use in their work. A comprehensive training course that enables employees to understand what the competency means, how it functions, and which tools are associated with it supports each competency. Every employee is required to study at least one competency per year, with the option to study additional ones if they consider it personally beneficial.

As a result, we observe a clear development strategy implemented by the Company, which identifies the tools most appropriate under current conditions and utilizes them to achieve greater efficiency.

From the perspective of results at Kernel’s grain elevators, the implementation of the corporate competency model has led to significant improvements in process effi- ciency. For instance, the introduction of the competency «Continuous Improvement» resulted in a major focus on applying the principles and methods of lean manufacturing. Most workstations were evaluated using the 5S methodology – an example of this im- plementation in a production laboratory is described in the study “Application of Work- place Organization Methods Based on the 5S System in the Production Laboratory of an Elevator” [2].

All production processes at the company were mapped using value stream mapping (VSM). All managers and a significant portion of specialists and regular staff underwent training and familiarized themselves with the results of application at various assets, and the best methods were scaled up. All production processes at the enterprises were mapped on a value stream map, described in detail, and subjected to time studies. Bot- tlenecks were identified at every stage of production, enabling targeted investments to address those weak points first, thus ensuring continuous improvements in efficiency.

In technical departments, approaches to equipment maintenance were completely changed. Where repairs were previously carried out on an ad hoc and intuitive basis,

«technical maintenance and repair» systems were created, with all equipment used on assets and maintenance and repair schedules recorded in electronic databases. This sig- nificantly reduced emergency breakdowns and virtually eliminated failures caused by poor-quality repair or maintenance. The system also allows for better workforce plan- ning, optimized procurement, reduced inventory of spare parts, and improved cash flow turnover.

Improvement suggestion systems were established at operational sites, with incen- tives for implemented ideas. This yields more than 100 employee-submitted ideas annually, some of which bring substantial financial returns [15].

Furthermore, these systems enabled a thorough analysis of bureaucratic workflows, leading to the elimination of most paper-based logbooks. All possible digital documen- tation tools are being adopted early, such as «Electronic bills of lading (e-BOLs)» and

«Digital signatures», which are now used wherever applicable. The number of adminis- trative and support staff is being significantly reduced, with greater emphasis placed on production roles. Many functions are now automated, consolidated, and integrated into unified centers.

Another critical competency is «readiness for change». In today’s environment, all employees and enterprises must constantly evolve, adapt, and seek new work ap- proaches. Since the beginning of the war, this need has intensified, as external factors have begun to exert unprecedented influence and changes now occur more frequently than ever before. However, like any skill, this one can be developed. The company has actively done so by providing training and designing dedicated workshops. Behaviors that demonstrate readiness for change are positively reinforced. For example, positive manifestations include: “Acts as a change agent, willingly takes on new challenges, and engages colleagues in their implementation – even beyond their immediate scope of responsibility.”

As a result, when new challenges arose, company employees were more prepared and better adapted to face them.

At present, in response to new challenges, the company has updated its corporate competency model, introducing two new competencies – «customer-centricity» and «in- ternal entrepreneurship». These additions stem from the growing necessity to develop not competitive, but rather partnership-based relationships with business stakeholders. A comprehensive and powerful logistics chain has been established – capable of handling and processing significantly more products than the company can independently produce or purchase. Therefore, building proper relationships with both internal and external clients, based on partnership and trust, has become critically important.

As for the «internal entrepreneurship» competency, it arises from the need to search for new ideas to create value and generate additional profit, often from non-obvious sources. While many companies tend to avoid entrepreneurial behavior among employ- ees, this company sees it as an opportunity to generate additional income, often without substantial additional costs.

This approach has led to the implementation of numerous business initiatives – for instance, the development of turbines for green energy production using sunflower husks, and the installation of solar panels at grain elevators to increase energy independence and reduce resource consumption. All implemented ideas are showcased to employees to inspire motivation and provide scalable examples that can be adapted in other contexts. Conclusions. The application of a corporate competency model is an extremely important tool for implementing any modern production management methods or technologies. This model allows multiple key objectives to be achieved simultaneously:

• To formally document personnel requirements in terms of not only professional competencies but also personal traits that influence company results.

• To update the model when new factors emerge or when new competencies need to be developed, thereby significantly enhancing organizational flexibility.
• To define the specific behaviors associated with each competency for employees at a particular enterprise or within its subdivisions, allowing for tailored competency requirements across different personnel categories.
• To outline specific tools, conduct targeted training and workshops that best support competency demonstration under the specific enterprise’s conditions.
• To enable additional employee assessment and ranking, leading to a differentiated motivation system.
• To improve process efficiency through properly organized workforce

Thus, this model should become an integral part of the company’s core internal regulatory documents – a guiding framework for employees, a management tool, and a communication mechanism for conveying strategic and tactical objectives to senior management and company owners.

 References:

1. Ohno Toyota Production System: Beyond Large-Scale Production. Portland, OR: Productivity Press, 1988. 143 p.
2. Liker K. The Toyota Way: 14 Management Principles from the World’s Great- est Manufacturer. New York: McGrawHill, 2004. 330 p.
3. Liker J. K., Meier D. P. Toyota talent: Developing your people the Toyota way. New York: McGraw-Hill, 2007. 326 p.
4. Womack J. , Jones D. T., Roos D. The Machine That Changed the World: The Story of Lean Production. New York: Harper Perennial, 1990. 352 p.
5. Bondarenko S.M. The system «lean production plus six sigma» as a tool for im- proving the quality of business processes and sustainable development of the Investments: practice and experience. 2022. No. 17. P. 62–67.
6. Malichevsky , Godnev E., Kashchenko V., Leleka V. Lean production from A to Z: a guide to terms and tools. K.: Fabula, 2023. 368 p.
7. Prokipets O.K., Petrusha O.O. The importance of implementing «Lean produc- tion» at Ukrainian food enterprises under martial Materials of the 89th International Conference of Young Scientists, NUHT, Kyiv, April 2023. Part 1. P. 110.
8. Pisarenko S., Mykhaylova O., Nesterenko R. Features of enterprise personnel management based on Lean technologies. Economy and Society. 2021. No. 31. ULR: https://doi.org/10.32782/2524-0072/2021-31-54.
9. Kozhan T. O. Modeling of personnel management competencies as a basis for the development of professional and educational standards. Social and labor relations. No. 2(4). P. 72–80.
10. Shpak I. Formation of a personnel assessment system using the example of tourism organizations. Bulletin of the Eastern European University of Economics and Management. Series: Economics and Management. 2012. No. 1. P. 120-127.

11. Tkachuk L., Shcherbak V. G. Organization of personnel performance assess- ment based on a model of functional competencies. Materials of the II All-Ukrainian Conference “Entrepreneurial Initiatives”. Kyiv, 2017. P. 346 350.
12. Kernel Competence Model. ULR: https://career.kernel.ua/tag/model-kompe- tenczij-kernel/
13. Key corporate Ukrlandfarming PLC. ULR: https://www.ulf.com. ua/ua/career/our-perevahy/key-corporation-competent/
14. Kryvtsov S., Vorobyov Yu. A., Plankovsky S. I. Theory and practice of solv- ing inventive problems. Kharkiv: V. N. Karazin Kharkiv National University, 2016. ULR: http://dspace.library.khai.edu/xmlui/handle/123456789/6401
15. Kadermeeva Internal audit and operational efficiency: functions and role in Kernel. Kernel Career. ULR: https://career.kernel.ua/vnutrishnij-audit-ta-operaczij- na-efektivnist/