A systems study on the production system of Metrocolor Corporation

• Main Authors: Del Mundo, Erwin, Garcia, Jerold, Mantos, Chris
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Printing industry > Management; Production management; Manufacturing processes; Metrocolor Corporation
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9742
• Institution: De La Salle University

Metrocolor Corporation, through 13 years of service, has obtained excellence on product quality and professionalism regarding every transaction which results in customer satisfaction. It provides products that would conform to its customer requirement and to deliver them on time and at competitive price. The production section of the company currently incurs an average of 53.48% overruns exceeding its 5% limit within the buffer material resulting to a cost of Php. 505,739.36. With the use of WHY-WHY and Pareto Analysis tools, the problem areas to be prioritized were determined along with their root causes namely the number of materials used in offset and Letterpress initial runs. Uneven inking rejects, Misregistration rejects, and Wrong Sequencing rejects-all of which contribute to the overestimation of buffers resulting in unfavorable overruns. With analysis and experimentation, proposed solutions were made to address the different problem areas. These solutions were the direct supervision of offset initial runs with the supervisor, molding for a fixed numbering machine jig, optimal side-guide settings for paper registry alignment, replacement of roller bearings within the offset printer, resurfacing of offset printer roller, replacement of side-guide, and replacement of all 12 numbering machines. With the cost-benefit analysis done, the comparison between the total investment costs against the annual benefits resulted to savings of Php. 480,409. Analysis with the use of Net Present Value and Payback Period establishes the solutions to be effective, profitable, and feasible for implementation.