A system study on the rim production department of Silvertown Manufacturing Corporation

• Main Authors: Bautista, Ronald Randall, Cristobal, Danny, Yap, Jonathan
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Silvertown Manufacturing Corporation; Automobiles > Wheels; Automobile supplies industry > Philippines; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10424
• Institution: De La Salle University

The proponents have decided to focus its study on Silvertown Manufacturing Corporation, particularly its Rim Production Department. By means of the various problem analysis techniques relayed to us, the proponents determined the areas for improvement inherent in the company's daily operation. Base on the present system, problems on absences, scraps, cancellation of orders and under capacity was attained by the company. First the capacity was not able to meet the demand which incur a loss of 2176 units or P 287,252 of opportunity cost. Second cancellation of 878 orders that results to a total of P 115,896 of opportunity cost. Third a total of 15,401 kilograms of scraps is incurred by the company due to rejects. Fourth an average of 4.11 absences incurred by the company that cost them 18,876. Lastly, the company was unable to supply 3575 rims on time or 18.8 % of the total demand on scheduled time. After analyzing all pertinent data, and by using WOT-SURG analysis technique, the proponents chose the problem regarding the inability to meet the demand which had a 18.8 % deviation of total demand. This was based on its seriousness, urgency, resources, and growth as well as constraints involved in the study such as time and knowledge. The problem was indeed very serious and needs to be solved at once. The company was unable to supply 3575 rims on time which incur them a total cost of P 471,900. With this cost, the company wishes to look for solutions in answering this problems. After arriving at the problem, several causes was gathered such as rearranging the layout and adding up of machines. After thorough analysis of the results, the proponents recommend that the proposed systems be adopted which is composed of rearrangement of the layout, additional of new machine, reactivating of the old machine and to re-educate the workers in the rim production department. By implementing the said proposals, the department is expected to incur an initial investment of P 231,518. In return the company can achieve a savings of P 67,452 per month.