A system study on the production system of Somawear, Inc.

• Main Authors: Atayde, Benjamin A., Cariño, Rachelle A.
• Format: text
• Published: Animo Repository 1997
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11372
• Institution: De La Salle University

Somawear is presently engaged in exporting garments under the Garment and Textile Export Board quota. By means of various problem analysis techniques learned, various areas for improvement in the company's everyday operation have been identified. These are the delivery delays, shortage of shipment, machine breakdowns, sewer absenteeism, increase in competitors and an opportunity to export to non-quota countries. After using the WOT-SURG analysis on the data available, the proponents have identified the problem Somawear is experiencing. The problem is stated as: 40.96% of the total required units ordered during January to July in 1996 were delivered late which resulted to additional air freight costs and interest loss of P 331,075.1. From the 29 job orders Somawear received during January to July in 1996, 10 were delivered late and out of the 10 late deliveries, 3 incurred additional air freight costs. After the evaluation of several possible causes that may contribute to the delivery delay problem of the company, three main causes were identified as: indiscriminate acceptance of job orders beyond plant capacity, improper scheduling of job orders and occurrence of machine breakdowns. The general objective of this study is to minimize the delivery delays that Somawear experiences by 89.38%. After a thorough analysis of the results, the proponents recommend that the proposed systems be adopted which are composed of a subcontracting policy for the job orders that are beyond plant capacity, a standard scheduling policy, and a preventive maintenance schedule. The subcontracting policy for P.O. acceptance beyond plant capacity minimizes the contribution of indiscriminate acceptance of job orders through the use of a capacity chart that will aid management whether the job order should be subcontracted or not. The design of a systematic scheduling system minimizes the contribution of improper scheduling to the problem by guiding management in their scheduling and monitoring of job orders. The preventive maintenance schedule minimizes the contribution of machine breakdowns to the problem by providing a regular cleaning program and check-up schedule. By implementing the said proposals, all the major causes are eliminated and the company is expected to achieve annual savings of at least P 507,282.8.