A systems study on the production department of Interadent Zahntechnik Philippines, Inc.

• Main Authors: Abello, Timothy Stephen A., Rivera, Karla Jayne A., Zara, Ma. Christina P.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Dental instruments and apparatus industry > Philippines; Oral hygiene products industry > Philippines; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11071
• Institution: De La Salle University

Interadent Zahntechnik Philippines, Inc., also known as InteraDent (Phils.) or IZPI, is a pioneer export manufacturer of custom-made dental products like milling and precision attachments, crowns and bridges, full and partial dentures, chrome-cobalt frames, and other precision works. The administrative office and plant are located Pascor Drive, Sto. Nino, Paranaque City, Metro Manila. To create this highly custom-made dental product IZPI uses different materials depending of the type of denture product and specification of the German customer. The company's main profit driver is its material usage. With this, there are set targets for the direct and indirect material used per unit. During the period of October 2010 to September 2011, IZPI was able to meet its target for indirect material cost per unit, but was unable to meet its target for direct material cost per unit by 5.11%. The opportunity loss associated to the unmet target for direct material amounts to Php 901,757.43. After evaluating the probable causes of the problem, the following factors were considered: incorrect material usage (20.84%), causes unable to meet quality standards (48.27%), lack of materials monitoring (14.64%)m cost of employee benefits (3.14%), cost of Goodwill, (1.44%), and others causes that cannot be quantified (11.67%). The proposed solution to improve the company's system includes implementation of specific work instructions and Inventory Management system. The implementation of specific work instruction is designed to address the root cause, rework due to unmet quality standards. The second proposed solution which is to implement an Inventory Management System is designed to improve incorrect material usage and provide accurate raw material monitoring. The computed net present value (NPV) of the proposed solutions is Php 2,088,329. The company would be able to recover its initial investment of Php 73,000 in 0.1132 years or 1.4 months. Given these values, it can be seen that the proposed solutions are feasible and cost-effective to implement. The proposed solutions can be implemented within approximately 12 weeks or 3 months.