A system study on the production of 11 kg lpg cylinder tank of ABC Corporation (ABC)

• Main Authors: Cortez, Mary Eden, Esplana, Daffodil, Alejaga, Vincent
• Format: text
• Language: English
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11977
• Institution: De La Salle University

Executive Summary. ABC Corporation is an LPG cylinder tank manufacturing company located in Novaliches, Quezon City. It manufactures seven sizes of LPG containers and caters to seven customers, namely Shell, Petron, Caltex, Liquigaz, Price Gas, Gas Petronas, and Total Gas. The company currently holds 44% of market share, which makes them the leading LPG cylinder manufacturing in the industry in terms of recorded sales. The systems study conducted by the group focused on the production of 11-kg cylinder. The main concern of the study is based on the company's most serious weakness, which is the unmet target production of 30.19%. After gathering data and making analysis, it is determined that three significant factors lead towards this weakness. These factors include unaccounted WIP, improper welding, and machine breakdowns. The proposed solution was to provide a quantity record for each workstation to address the problem on unaccounted WIP. For improper welding, it is suggested to improve the working conditions of the production workers by providing exhaust fans and additional lighting and also incentives. Improvement on preventive maintenance of machines is also included in the proposed solution to solve the problem on machine breakdowns. The cost of the proposed solution is equivalent to Php 218,353.80 against the expected gain of Php 3,988,608. Qualitative benefits, on the other hand, include safe and comfortable working environment, which reduces the negligence of workers in doing their jobs. Implementation of the proposed solution can be established within eight weeks. Activities such as training and purchasing constitutes the major activities related to the implementation process.