A systems study on Pelina Shoes Manufacturing

• Main Authors: Jimenez, Ramon Enrique Angelo D., Salvador, Nicolette Roxanne G., Sindiong, Rafael B.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Shoe industry > Philippines; Engineering; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11247
• Institution: De La Salle University

Pelina Shoes Manufacturing has been in the operations since 1978. Presently, it already has three customers in the Philippines namely Ferretti, Mario D Boro and Rusty Lopez. The system was conducted in Marikina City, Metro Manila. Data gathering was done on the different parts of the system namely placements, persons, raw materials, information, method, equipment, environment and performance. After documenting and discussing the present system, the strengths, weaknesses, opportunities and threats (SWOT) were identified, Through WOT-SURG analysis the main problem was determined. It was found out that the shoe manufacturing company is facing a huge problem with regards to the rejects of the company. According to the data collected from July 2009 to July 2010, the company experienced a 4.70% rate which deviates from the standard of 2%. In the problem analysis section, the initial cause and effect diagram was constructed for the reject problem of the company. Causes were identified and validated using pictures, tallies and observation of the shoe manufacturing company's operations through a Time and Motion Study. Here are the listed final causes of the problem which were identified using a Pareto Analysis. •Workers do not follow SOP •Lack of Grecco Adhesives •Damaged Raw Materials •Poor delivery to next internal customer •No Quality Control on raw materials •Poor training of sewers. Different solutions were made to further reduce the reject rate of the company. Listed below are the proposed solutions for the root causes identified following solutions. The following solutions were selected through the Kepner-Tregoe Decision Analysis: •Quality Checklist •Quality Training Program In order to reduce the reject rate of the employees, a quality checklist and training program should be provided to all employees of Pelina Shoes Manufacturing. The quality checklist will include detailed specifications of each of the ten (10) processes of the production line of sandals and step-ins. The quality checklist will incur an investment cost of Php 42,350.00 and an annual cost of Php 41,598,50. The quality checklist is expected to generate an amount totaling to Php 117,474.00. In addition, a quality training program will be implemented in order to improve the performance and quality control skills of the worker. The quality training program will incur an investment cost of Php 30,000.00 and an annual cost Php 46,750.00. The quality checklist is expected to generate an amount of totaling to Php 372,896.00. The total annual cost will amount to Php 88,348.50 which results to an annual net benefit of Php 490,370.00. The computed Net Present Value (NPV) of the proposed solutions equaled to Php 1,622,955.16. The payback period was computed to be 3 months.