A system study on the packaging of Nestle breakfast cereals of Fast Services Corporation

• Main Authors: Cruz, Judell H., Domingo, Michael Andrew L., Sese, Diobelle Jemimah Z.
• Format: text
• Language: English
• Published: Animo Repository 2010
• Subjects: Packaging; Production management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9471
• Institution: De La Salle University

This system study is focused on the packaging of twenty (20) & twenty five (25) -gram Nestle breakfast cereals by FAST SERVICES CORPORATION (FSC), wherein pre-packed cereals are put inside their corresponding cardboard boxes. FSC's general objectives include the management of client's satisfaction on services rendered by meeting the demand timely & completely with the right quality, the minimization of operational costs/expenses, the maintenance of clean production, and assurance of workers' safety. Based FSC's performance from January to December 2009, the main problem of the company is the incurrence of production backlog that resulted to unnecessary penalty costs amounting to Php1,293,612.37 due to late delivery of finished goods to the client. Fishbone diagram was used to determine the potential root causes of the main problem. After careful verification, it was found that the contributing root causes are largely due to frequent machine downtime and incurrence of defective cardboard box units. Alternative solutions were then generated and assessed of their effectiveness & feasibility with the use of Kepner-Tregoe Decision Analysis (KTDA). Scheduled preventive maintenance, procedural manpower trainings, fabrication & installation of support mechanisms, placement of guide photos along the production line to constantly remind workers of the correct orientation of cardboard boxes while being processed, training three (3) workers (one from each shift) to be ready technicians for critical machine breakdowns, and last but not the least, the issuance of incentive programs for workers and regular launching of awareness campaigns to promote clean products, clean production and safe production practice are the solutions verified to be effective and feasible to address the main problem. Cost-benefit analysis further showed the acceptability of the generated solutions by comparing their cost of implementation versus the quantitative and qualitative benefits they can offer to FSC. To finalize, the solutions were then translated into an implementation plan for FSC and recommendations for future studies were given.