Thesis Archive

A systems study on Multi-Mix International Manufacturing Corporation's production of Turco rust converter (2007)

Aldous Chan
Emil Adrian Fernandez
Joyce Navarro


-This study is concerned with the Multi-Mix International Manufacturing Corporation's production of Turco rust converter

. The problem being addressed is the monthly average lost time of 6.61% from the regular working hours was experienced in the production of Turco rust converter from the month of May 2006 to April 2007 which resulted to net actual and opportunity lost of Php1, 033,039.68 (composed of labor cost and opportunity lost in actually producing the finished goods). It is a serious and urgent problem due to the lost time experienced during operation. Production stoppages will result to lost time.

The problem was caused by having low water supply from the main tank due to the low priority of the water supply line for the system, inaccurate estimated amount of PM and RM ordered to the warehouse, worn-out bearing of the primary machine which is the mixing machine, pump breakdown and overcrowding of RM and PM in the production floor. These incur the lost times of 120 hrs, 50.5 hrs, 46 hrs, 35 hrs, 32 hrs and 22 hours consecutively. To fully resolve the problem, it is recommended to install a buffer tank and reschedule water retrieval time, apply pull system, level the process, organize a stocking policy with 5s and do preventive maintenance. Installing a buffer tank and rescheduling water retrieval time to ensure that the system gets the right amount of water without affecting the other water supply lines. Due to the system being dependent on the OIC's order at the start of the shift; a pull system, leveled process and stocking policy will be beneficial through taking control of the inventory plus minimizing the space used by the materials (RM and PM) on the floor. Applying 5s targets the overcrowding of RM and PM in the production floor and will benefit the adherence to the cleaning time specified. Preventive maintenance will ensure that machine (mixing machine and pump) breakdowns are resolvable in a short span of time with minimal supervision or support from people outside of the system.

The initial capital investment of Php 61,400, the expected net benefit is Php 654,580. There is an expected gain of Php593,180. Benefits such as ease of mobility, worker appreciation and boost of morale for the Turco workforce are also to be gained.

This implementation of the recommended solution is proposed to start on January 2008 for the trial run and on the final implementation on the second week of the same month.


Mr. Edgar Mutuc