A systems study on the production department of Philcan Industrial Corporation

• Main Authors: Dimaliwat, Marc Adrian A., Estrellas, Marielle Frances Jean M., Madamba, Joanna Rose G.
• Format: text
• Language: English
• Published: Animo Repository 2008
• Subjects: Production management > Philippines; Tin cans > Philippines; Container industry > Philippines; Philcan Industrial Corporation
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9769
• Institution: De La Salle University

Philcan Industrial Corporation has been operating since 1976. The company have been producing tin cans for two can lines known as Sanitary Can Line and General Can Line. Its vision is to be the leading source of tin can packaging products and services in the Philippines. Together with this, their mission is to continually provide quality tin can packaging products through innovative solutions and technical expertise in food and chemicals. Currently, the production system of the 4-liter and 1-liter tin cans has been experiencing additional costs due to unmet scheduled demand. It is unable to meet 5.02% and 6.12% of the monthly scheduled demand for the 4-liter and 1-liter cans respectively. This resulted to additional overhead cost amounting to Php2,516,296.02. After identifying the problem, the study was able to identify four valid causes namely break times not strictly followed, absenteeism, human error and imbalanced line. The proponents were able to prove that the seaming department is the bottleneck of the line through time study and information gathered from the company. The solutions were proposed to address the significant causes of the problem. Solution includes installation of a bell, in-kind rewards, installation of additional exhaust fans and fluorescent lights and line balancing. Using Cost-Benefit Analysis, comparison between the total cost of implementation from the total expected annual savings resulted in a total net benefit of Php3,027,768.63. The computed payback period resulted to 0.1098 years or 1.3172 months.