A system study on the production lubricant (PLUB) department of Seaoil Philippines Inc.

• Main Authors: Dacanay, Therese Loren E., Espeleta, Paola Z., Juano, Jeffrey Allen J.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Lubrication and lubricants industry > Philippines; Lubricating oils; Automobiles > Lubrication.; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11339
• Institution: De La Salle University

SEAOIL is an independent fuel company which provides fuel and lubricant products for automotive and industrial use. At present, it imports fuel products from other countries to lessen manufacturing costs. However, they manufacture their own lubricant products which are blended using imported base oils, scents and local additives. SEASOIL would like to improve the sales of their lubricant products that is why the system under this study would focus on the companys Production Lubricant (PLUB) Department from production utilizes a Third Party Logistics (3PL), DB Schenker, to manage the storage of the lubricant products. A 200,000 liter monitoring contract for the year 2011 with DB Schenker was signed. After conducting a WOT-SURG situation appraisal, the main problem was determined to be the underutilization of the 200,000-liter monitoring contract with DB Schenker by 16.14% in the year 2011. With this problem, an opportunity loss of 708,000.00 pesos was incurred. Through the use of an Ishikawa diagram, three primary causes of the problem were identified, namely, Low Production due to Inefficiency of Production Line, Occurrence of Returned Rejects due to Lenient Sampling, and Excessive Contract Volume due to Slow Inventory Turnover. In order to address the causes, alternatives for the proposed solutions were evaluated through the use of the Kepner-Tregoe Decisions Analysis (KTDA). The proposed solutions which met the criteria set by the proponents with the consent of the management were: Table placement near the filling machine area to cope with low production, Addition of another mechanical press and change in sampling time interval to improve the detection of rejects, and Determination of contract level and delivery scheduling to avoid deficits and utilize the contact.