A system study of men's rubber shoes in the assembly department of Sportrend Manufacturing Corporation

• Main Authors: Chen, Tialong, Santiago, Allin Kho, Ty, Almer Uy
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12053
• Institution: De La Salle University

Executive Summary. Sportrend Manufacturing Corporation is a medium scale shoe manufacturing company who is responsible for the HAWK brand of shoes. The company is divided into four respective departments, namely the injection department, assembly department, cutting department and the product preparation and material control department. The area of concern of this study would only tackled that of the assembly department of Sportrend Manufacturing Corporation. The problem of delay in production is a very common problem experienced by almost all shoe-manufacturing industries. This is also the case of Sportrend Manufacturing Corporation. Based on the data and information gathered about the present system of SMC made in the study for the period covered from May 1997 to April 1999, it was discovered that the company is experiencing a 24.6% production delay in the mentioned department. The cost incurred due to this delay amount to Php 594,864 for the period covered by the study. From this problem, an analysis of the present manufacturing system of the assembly department was conducted. Several causes and effects were obtained and identified that contributed to the company's problem. Among these problems identified were the bottleneck in the Finishing workstation, low percentage utilization of the assembly department and the poor working condition of the department. Utilizing the Kepner-Tregoe Decision Analysis and the principle of line balancing, a new system was developed and proposed for the company. This proposal included the balancing of the said department of SMC. Also, the problem of the poor working condition was also addressed and given sufficient attention. The proposed system was justified through analysis of the costs incurred during implementation and the higher benefits that the company would gain in exchange. By implementing the proposed solution, SMC would be able to eliminate the 24.6% production delay and increase in sales from Php 47,593,296 to Php 48,188, 160. A difference of Php 594, 864 for the period covered. In addition to this, the net present value at the end of the economic life of the proposed system was computed to be equivalent to Php 5,805,693.