A system study on the production department of Unique Handicrafts Company

• Main Authors: Kua, Mark Christopher Go, Sotto, Vicente Alfonso, Tengco, Joseph De Leon
• Format: text
• Language: English
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12079
• Institution: De La Salle University

Executive Summary. The thesis, entitled A System Study on the Production Department of Unique Handicrafts discusses the work done to find and eventually solve the most serious problem of the production department of the company. From the situation appraised, the group has identified the main problem of the company to be: Unique Handicrafts experienced 11.9% level of rejects which is 9.91% above the company set standard of 2.0%. This led to incur costs amounting to 199,048.25 pesos and lost man-hours of 7338.5 hrs. annually to rework the rejects. The group then worked on isolating the causes of the problem. The results of which shows that the main causes of the problem can be traced to three of the 4M's of Unique namely, the machine, material and man of the company contributed to the high level of rejects. The causes were identified, as a) machines in need of re-calibration b) inspections were not being done in between sections and c) worker's tendency to produce rejects to supplement income. To solve the problem, the group developed alternative solutions for each of the machine, material and man cause. To come up with the proposed solution, the group combined the best alternatives so that the solution would indeed solve the specific problem of rejects. Thus, the proposed solution is to have: a) a quarterly re-calibration plan b) spot inspection between the sewing and finishing sections and c) a revision of the payment scheme. The costs and benefits of such a proposed plan was calculated and it showed that it would save at least PHP 290,000.00 in costs alone on the first year of implementation. The group designed the solution to be immediately implemented and to be fully operational in a year. Realized benefits will be felt at that time. The group also gave its recommendations towards other issues that it feels would help the company in the long run.