A systems study on the Manufacturing Department of MGR Printing Corporation

• Main Authors: Calleja, Patricia G., Reyes, Michelle Marie G.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Printing industry > Philippines; Industrial engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9743
• Institution: De La Salle University

MGR Printing Corporation has been in the printing industry for 27 years and has obtained excellence on product quality by winning the Print Excellence Award from the years 1996 until the year 2012. The study focuses on the Offset Manufacturing Department and was conducted from January 2014 up to February 2015. The system consists of three major processes namely, pre-press, press, and post-press. The pre-press process consists of layout preparation of the packaging product, press is the printing process itself, and post-press consists of cutting, gluing, folding, etc. With the data and standards collected, strengths and weaknesses were determined based on whether the consolidated data was within the given standard or not. Also, opportunities and threats were enumerated. With the use of a WOT-SURG, the weakness, opportunities, and threats were ranked. The problem with the highest rating was chosen and the main problem of the study is that the excess overruns quantity exceeds that standard by 18% resulting to a total production cost amounting to Php38,515,513 for the period of January 2014 up to February 2015. With the help of a why-why diagram, the problem areas were identified as well as the root causes. The main problem had seven (7) root causes: supplied paper combines both make ready and production in one pile, lack of details presented in the job order jacket, lack of supervision regarding proper counting methods, inappropriate allocation of 1,000 sheets per job order, excess production is not reviewed immediately, counting of reject quantity is only an estimate, and wrong allocation of planner. These causes were then classified into four categories namely, management review, information dissemination, production planning, and production methods. In order to address the problem of excess overruns, alternative solutions, which aim to address the root causes of the problem, were generated. A Kepner Tregoe decision analysis table was sued to aid in choosing among all the alternative solutions that were generated. The chosen solutions included: weekly performance review segregation of paper into two piles, revision of job order form, new make ready and reject sheet allocation matrix, implementation of a policy regarding returning excess sheets, and purchasing three (3) counter machines. The implementation of this solution would incur a total cost of Php193,600 with an initial investment of Php11,663,263. The benefit of implementing the proposed system amounts to Php38,515,513 therefore, leading to a net benefit of Phy38,321,913 with a net present value of Php145,461,146.