A system study on the filling operations of Petron Pasig terminal plant

• Main Authors: Dy, Paulo Jason, Gianan, Geaneil, Rivera, Mikhail
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Liquefied petroleum gas industry > Philippines; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10851
• Institution: De La Salle University

This study is about the system of Petron Pasig Terminal Plant situated in E. Rodriguez, Jr. Avenue Ugong, Pasig City. The Petron Pasig Terminal Plant is LPG (Liquefied Petroleum Gas) refilling plant that caters to refill LPG cylinders (2.7 kg, 11, 22 kg and 50 kg cylinders), Independent and Industrial Refillers with Liquefied Petroleum Gas (LPG). Petron Gasul is the major LPG Cylinder Refilling facility for Metro Manila, refilling 500 metric tons in a day operations. For the plant to support its operations, it has two modes of acquiring LPG, the primary mode which is thru barges or vessels and the supplementary mode which is via haulers or truck trailers from the Bataan refinery. The plant has two barges namely Aleah and Banak, which has the capacity to carry and deliver to the plant 700 MT and 130 MT respectively. For the supplementary modem they have 12 contracted haulers to deliver to them 20 MT each hauler every day, and in case of insufficient supply of LPG to support the demand Spot haulers are called upon the day during operations. The prizes in acquisition of the sources vary depending on its origin, as LPG from barges cost the plant Php 1.03/Kilogram while those from contracted hauler cost Php 1.5/Kilogram, and the additional spot haulers cost is Php 2/Kilogram. Their other materials are the cylinder which is supplied to them by a contractor and with their quality measures the plant was able to maintain good cylinders output all the time. The Pasig Terminal Plant consists of various machineries and equipment that is used in its daily filling operations in total the plant has 39 machineries inside the plant. The plants computed overall capacity for both the 448 metric tons for the Refilling plant and 400 metric tons the transactions of the industrial account (trailer trucks refilling), capacity, the total capacity that the plant can deliver is up to 848 metric tons or 848,000 kilograms of LPG in a day. But the plant is considering 85% service factor incorporated in their system, following the international standards in the mechanical industries and with the plants aim to utilize at least 70% of its operational capacity, the plant has to deliver as a minimum of 505 metric tons in a day. To evaluate the system SWOT analysis and WOT-SURG matric was accomplished in order to identify the issues that are needed to be addressed or further improvement can be made in line with the objectives of the company. In the problem prioritization, it resulted that the spot hauler and diversion activity in Pasig Terminal Plant is the one that is needed to be prioritized among the other weaknesses and opportunity present in the company. To further analyze and scrutinized the problem of incurring spot haulers of the plant, why-why diagram was initiated and validated in order to identify the cause of the concern. Based on the validation of root causes using several statistical validation tools, it was determined that the root cause of the problem is in the logistic process of transportation of LPG from the source (Bataan Plant) to Pasig Plant, specifically the availability of the primary mode. To contain and eliminate the acquisition of the spot haulers in the system, the proponents have indicated both a long term solution which the installation of the additional tank that will cost the company P23.168,862 and an immediate solution which is to follow a template for decision making, and the recommendation of increment of additional contracted hauler in the system provided that it will decrease the occurrences of hiring the spot haulers. The solution can be a combination of the long term and immediate solution. As the immediate solution of additional contracted haulers is being implemented while the installation of the additional tank takes place in the plant.