A system study on the feeds production line of Pilmico Animal Nutrition Corporation

• Main Authors: De los Reyes, Royce Yule Audrey O., Galenzoga, Miguel Benjamin C., Ronquillo, Roberto Jose V.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Production engineering; Production management; Industrial engineering; Pilmico Animal Nutrition Corporation
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9760
• Institution: De La Salle University

Pilmico Animal Nutrition Corporation, feed manufacturing company wholly owned by Aboitiz Equity Ventures. It is a company known to have products produced consistent in quality and performance. More than anything else, technical expertise and excellent herd health program is the key to Pilmico's continued growth in this industry. The study will be directed towards the production of raw materials to produce finished goods in the feed mill located in Santo Domingo II, Capas, Tarlac. This is for all the hog and poultry feeds production lines of Pilmico Animal Nutrition Corporation. The study will make use of data gathered daily, monthly, and quarterly from January 2014 to October 2015. The main objective of Pilmico Animal Nutrition Corporation is to address the needs and specifications of the internal and external customers of Pilmico on time, while also having higher productivity, lower rejection rate per month, and lower plant operating time. Specifically, to be able to meet an average target production of 15,366.67 metric tons per month. To be able to deliver 97% of the demand per month. To have at most 4.5% unscheduled downtimes per month. To spend at most 16 minutes per changeover. And lastly, to have at most 0.2% feed rejection rate per month. The group did a situational analysis which identified the strengths, weaknesses, opportunities and threats of the system. Part of the situation analysis was the assessment using the WOT-SURG analysis. With this, a problem statement was composed which states that Pilmico Animal Nutrition Corporations feed mill in Capas, Tarlac did not meet their average production goal of 15,366.67 metric tons per month by only producing an average of 14,106 metric tons per month. The average opportunity cost is Php33,920,816.09 per month. The problem has the following specifications the feed mill is unable to meet demand with an average of 1,260.67 metric tons per month. The average opportunity cost obtained by the plant v=because of this Php33,920,816.09 per month. Using the fishbone and why-why diagram, the researchers identified the causes of the problem to be unscheduled downtime (34%), changeover downtime (65%), and rejection (1%). Other initial causes were removed due to their lack of contribution to the problem. Using Pareto analysis, the root causes that contributed to 80% of the problem include, deteriorated equipment (55.58%), different feed types (20.95%), and o/late delivery (7.30%). To decide which solutions should be proposed in order to solve the problem, the researchers used Kepnoe-Treger decision analysis. To solve the problems caused by deteriorated equipment, the proposed solution was to increase the frequency of maintenance days and replace components of some equipment. Adjustment of the production plan more effectively was proposed to solve the problem of different feed specifications. And lastly, to solve no/late delivery, sourcing for more suppliers was proposed. The proposed solutions would require the company a total initial investment cost of Php22,990,000 and a total annual additional cost of Php22,350,000. However, the company will have a total of Php393,304,644.30 annual additional benefits. With these numbers, they will have a payback period of 1 month. Following the implementation plan, all solutions can be implemented within 58 days.