A system study on the production department of Philippine Paper Mills Inc. (PPMI)

• Main Authors: Bacareza, Cromwell, Legaspi, Avel Christopher, Ty, Erle Leander
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Philippine Paper Mills Incorporated; Paper industry > Philippines; Production management; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11262
• Institution: De La Salle University

Philippine Paper Mills Incorporated (PPMI) started its operations in 1951 in #570 H. Lopez St., Tondo, Manila. It is one of the pioneering company in the paperboard industry. During the 50's and 60's, PPMI was the leading manufacturer of paperboards in the country. For the year 1995, the company lost P 899,793.00 in opportunity cost due to lost production time. They suffered a total 95978 minutes of lost production time or an average of 7998.167 minutes monthly. In terms of production, the company was not able to produce 1199.724 MT for 1995 or an average of 99.977 MT monthly. After deliberating on the possible causes of the problem, the proponents found out that it was the machine which is causing the majority of this. To remedy this, it was proposed that the most critical parts and sections of the machine should be replaced and rehabilitated. The option of buying a new machine or a second hand machine was not considered since it would be out of the company's budget and would waste the other sources of the company. To complement the solution, a maintenance policy was also adopted. It was arrived at that a preventive maintenance policy is appropriate and should be scheduled four times a month . In doing this, the company would have an NPV of P 9,285,337.86 after only four years. Simulating the proposed system proved that the production would yield 3 MT greater than the present system and thereby decreasing the lost production time by more than 50%.