Thesis Archive
A system study on the liquids and gels and emulsion section of filling and packing department of the Splash Corporation (2008)
Jofel-Jorrel B. Riofrio
Abstract:
-Splash Corporation has grown from being a backyard business in 1985 to a world class and competitive company. In its 23 years in the industry it has provided quality products and has given employment to our fellow Filipinos. It is currently the largest Filipino-owned company that competes strongly in an industry that has long been dominated by big multinational corporations.
But even with its competitive state, the filing and packing department of Splash Corporation has consistently exceeded its Cycle Time Index(CTI) target of 1.05 from June 2006-July 2007 which resulted to opportunity loss of Php2,411,139.87. With the use of a Fish Bone diagram and Pareto Analysis tool, the problem areas have been identified by the proponent. The root causes identified were Machine Breakdown, Machine Clogging, Meeting during production runs, and Changeover Errors. These problems comprise 87.51% of the total causes of delays that increased the actual cycle time. The delays, in turn, have increased the CTI by 38.24% of its allowable 1.05.
After problem analysis and Pareto validation, alternative solutions were made to address the different problem area. The solutions are Early Detection Program (EDP) for machine breakdown, a Pre-measured Adjustment Guide (PMAG) for machine clogging, Weekly Meetings (WM) for meeting problem, Visual Marking of Tube (VMT) for change over delays. The EDP was able to decrease the lost time incurred during machine breakdowns by 86.06% and the PMAG was able to decrease the lost time incurred during machine clogging by 71.30%. The WM and the VMT was able to decrease the lost time incurred by meeting delays and changeover delays by 68.42% and 62.12% respectively. With these solutions, the CTI was reduced by 55.14%. The proponent has showed that the CTI target of 1.05 is only attainable but also manageable to be lowered if the solutions will be continued.
The total cost of that has been incurred during the June 2006 to July 2007 that covered labor cost and overhead cost had a total of Php 15,374,570.54. If the solution were used during the same time period the total cost could have only been Php 6,897,723.59. With the cost-benefit analysis done, the comparison between the total investment costs of Php 102,704.00 against the annual benefits of Php 8,476,846.95 resulted to a savings of Php 8,356,142.95.
Adviser:
Mr. Eric Siy
[email protected]