A system study on the shipping division of San Miguel Rengo Packaging Corporation

• Main Authors: Co, Lorraine C., Da Silva, Sandra Marie S., Dela Cruz, Nelissa T.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12047
• Institution: De La Salle University

Executive Summary. San Miguel Rengo Packaging Corporation (SMRPC) is a joint venture company of San Miguel Corporation of the Philippines, and Rengo Co., Ltd. of Japan. It is located at Dr. A. Santos Avenue, Sucat, Parañaque. Sales revenue comes from the sale of corrugated boxes, mill run sheets and corrugated partitions and pads. The Shipping Division of SMRPC takes care of the storage and delivery of these finished goods. A study of this system revealed that for the period of January to December 1998, 41.82% of the deliveries made were delayed. 86.09% of the causes lies in the arrangement of finished goods in the storage area, and the inability of the personnel to keep track of the deliveries of finished goods. The proposed solution addresses these two major causes. A new classification system of cartons was developed. A computer program that allows tracking the status of the stocks in the storage area was also designed for use by the division. The proposed system was developed in order to address the main causes of information gap in the division and delay in finding finished goods. The expected effect of the new system is the decrease in non-moving inventory. Also with the proposed solution, it is expected that the new material storage system and the computer program will decrease the time to find the finished goods. Costs involved in the new system includes the cost of the program itself, printing costs for the new set of forms, cost of the material storage system, and the training of personnel. The Net Present Value was computed resulting in a positive value, indicating the desirability of the proposal. Aside from the expected monetary benefits, there are other qualitative benefits that can be derived from the new system. Improved service will lead to increased customer loyalty. With the increased customer loyalty, less sales efforts would be expended. The new system will also mean job enrichment for the shipping personnel. It will entail more responsibilities and will require further learning. A dry run was conducted in order to approximate the effects of this proposed system on the problem. The results showed that the delays were reduced by 44.52%. This met the targeted result of a 30% reduction. An implementation plan was also prepared for the integration of the proposed system into the existing system.