A systems study on the high rise modular production of Modular Fusion Inc.

• Main Authors: Liao, Kelsey Nathaniel L., Tan, Craigg Donald S., Uy, Jeric Ervin T.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Modular Fusion, Inc.; Modular construction; Prefabricated houses > Design and construction; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11166
• Institution: De La Salle University

Modular Fusion, Inc. (MFI) was established on August 2009 to produce modular kitchen and closet cabinets. The study has specifically focused on the production of high-rise modular furniture of MFI. Based on the present system and the SWOT Analysis, it was found out that the high-rise modular production section is unable to produce 4.08% of the production schedule on time. Due to this, the company has been incurring an average of Php 543, 125.00 worth of penalty costs per month due to late production. To address the said problem, an Ishikawa Diagram was used to analyze the causes of the problem inside the high-rise modular furniture production section of MFI. It was found out that modules are not produced on time because of poor production scheduling, batching(which accounts to one-fourth of total processing time), lack of 2 workers for ideal production, absenteeism due to fatigue, insufficient machine capacity, and poor stockroom layout. With the use of Kepner-Tregoe Decision Analysis, the solutions generated to address the causes of the problems are hiring of 2 additional workers, application of smaller transfer batches in production, implementation of 5S by installing racks in the inventory stockroom, and integrated production scheduling. After implementing the said alternative solutions, the company was able to have a average monthly savings of Php199,618.75 or Php 2,395,425.00 per year. As for the production side, application of smaller transfer batches would have monthly savings of Php 271, 562.50, without incurring any monthly penalty costs, at the same time decreasing the absenteeism rate from 12.12% to 9.70%.