A systems study on the production department of Burlington Industries Philippines, Inc.

• Main Authors: Lee, Carl Persey M., Tseng, Kristina Alyanna G., Uy, Kennard Russel S.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11863
• Institution: De La Salle University

Burlington Industries Philippines, Inc. produces a wide variety of hosiery products. Currently being the thee trademark owner in the Philippines of Burlington, Puma, Bally, Bio Fresh and Camp socks brands, they engage in providing socks for men and women of all ages with designs ranging from basic casual socks to sports socks, dress socks, trouser socks, foot covers, stockings and even foot care products, shirts and undergarments. This study aims to conduct a system on the Production Department of Burlington Industries Philippines, Inc. In conducting the situation appraisal, the company's strengths, weaknesses, opportunities, and threat were identified. The strengths of Burlington are they are forerunner in the socks manufacturing, no experience of shortage of raw materials and positive growth. Meanwhile, there are three weaknesses identified. Based on the WOT-SURG analysis, the average reject rate of the production is 0.78% higher than the maximum tolerable rate of 3.0% is the weakness that earned the highest score of 6.4 points. Because of this problem, the company is losing net profit yearly to amounting to an approximation of Php 7,853,634.96. On the other hand, opportunity for the company is accepting subcontracting offers from foreign companies during lean months. Lastly, the threats of the company are companies from other countries have lower operational cost and floods may occur during wet seasons. An Ishikawa Diagram was identified and validated the viable causes that contribute to the total network and reject cost incurred by the company. The initial probable causes are broken down into ma, method, material and machine. After doing further investigation of the true causes, the final Ishikawa Diagram was identified and is left with three major causes under machine and material. For machine, the sensor does the breakage of yarn, which contributes roughly 2% of the total rejects and costs Php 99,077.57 per year. Next, needle breakage in the knitting machine creates unwanted needle on the socks, which contributes to 14.63% of the total rejects and costs Php 714,457.08 per year. Lastly, yarn breakage contributes to 41.04% of the total rejects and costs Php 3,223,409.60 per year. Alternative solutions were generated to address the final cause. To evaluate each of the alternative solutions, the Kepner-Tregoe Decision Analysis (KTDA) was used. The proposed solution was identified to be standardization and tension optimization. By implementing this, the company will generate Php 726,068.67 savings annually. This cost savings was evaluated over a 10-year time frame, which yields to a net present value of Php 5,146,200.41. Furthermore, a sensitivity analysis was done to determine the effectiveness of the solution. With 100% effectivity, the final reject rate went down to 2.33%. Also, the minimum effectively rate of the solution must be at 58% in order to meet the required reject rate of 3.0%.