A systems study on the solid sheets production of Fompac Plastic Corporation

• Main Authors: Aquino, Juan Gabriel, Obed, Dwight Brian, Tanlimco, Lloyd Marvin
• Format: text
• Language: English
• Published: Animo Repository 2014
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/12113
• Institution: De La Salle University

FOMPAC Philippines produces Styrofoam and plastic food packaging and related materials. A wide variety of different dimensions and uses of these products are offered to various customers. The study aims to conduct a system study of the Solid sheet line of the company, which are plastic materials that are melted into sheets and rolls them formed into the finished product. The situation appraisal was conducted by analyzing the productions strengths, weaknesses, opportunities and threats. There were 3 weaknesses, 1 opportunity and 1 threat that were identified during the study. Using WOT-SURG analysis, the main problem identified was the non-compliance of the production plan. Current operation only complies with 65.13% per month on the average of the production plan which is 34.87% deviation from the ideal target of 100%. Though costs of the problem could not exactly be measured, non-compliance to the production plan would lead to increase in variable cost, loss of good will and loss of customer. Also, besides product safety, plan compliance of the production output is the most important measure of performance of the production department. An Ishikawa diagram was constructed and validated to determine the viable causes that contribute to the non-compliance of the production plan. Probable causes were analyzed in terms of Process, Raw Material, and Manpower & Equipment only since no causes were identified in terms of Information or Utilities. Causes of non-compliance were identified to be the down time due to break down of the extrusion and Thermoforming Machine as well as the delay in troubleshooting of operations when. A list of alternative solutions was generated in order to address the root causes of the problem. A Kepper-Tregoe decision Analysis was used to evaluate the alternative solution presented in the study. The solutions generated were mostly process related a combination of these solutions was determined to be most beneficial with minimal costs. The implementation of the proposed solution yielded an annual cost savings of Php 15,515,258.20.