A systems study on the Production Department of ABC Industries, Inc

• Main Authors: Co, Kareen S., Co, Karen Valentine Y., Go, Maisie S.
• Format: text
• Language: English
• Published: Animo Repository 2005
• Subjects: Pipe fittings industry—Production control; Pipe fittings industry—Quality control; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17418
• Institution: De La Salle University

ABC Industries, lnc. is a Philippine manufacturing company known for producing quality PVC pipes and fittings as their main product line. Nowadays, aside from pipes, the company also manufactures PVC roofing and accessories, wire trunking system, PVC architectural and decorative products, and PVC and PE poultry and agricultural structural products. This study will focus on the activities of the Manufacturing System of Premium PVC Pipes and Fittings from January to December 2004. The Premium Pipes have a total sales contribution of 50% while the fittings have a total sales contribution of 14%. Due to this, it is important that the group determine the problems occurring in this system, specifically, the amount of rejects being produced. The aspects that are studied include the people in the system, resources or materials used, information flow, methods or operations used in the process, equipment utilized, and the utilities required in the operations. The company's strengths and weaknesses as well as opportunities and threats were evaluated. After using the WOT-SURG Analysis, the main problem of the company was found to be the 5% reject rate it is currently experiencing with its production of premium pipes and fittings. The main objective of this study is to reduce this 5% reject rate to the company's target of 3%. With this reduction of 2%, the company would be able to save approximately P 6.2 million per year. The Pareto chart was used to narrow down the main types of rejects that result from the production process. The main causes of these types of rejects were then ascertained. These include low quality resins, lack of standards for machine features, lack of guides for inspection of raw materials and formulation, and incorrect water and cylinder temperature. Different solutions were proposed. The Kepner-Tregoe Decision Analysis was used to evaluate alternative solutions for the said problem. Solutions include using simulation and Design of Experiment were also used to validate the current system and come up with the right standards for machine features, provision of guides for inspection and formulation of raw materials, regular inspection of raw materials, installation of thermo-controllers for incorrect cylinder temperature and installation of automatic temperature reader for incorrect water temperature going to and from the water-cooling system. A program was also created to help the company to keep track and monitor their production rejects. If the proposed solutions are implemented, the company would be able to reduce their reject rate to 2.09% and have net savings of up to P 14 million per year for the next five years.