A system study on the outbound logistics of Coca-Cola Philippines Inc.'s Antipolo Distribution Center

• Main Author: Bernardez, Aron Nathaniel E.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Root cause analysis; Industrial engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18633
• Institution: De La Salle University

For the year 20 I 6, the Antipolo Distribution Center had an average Check In Check Out CICO time of 59.82 minutes. It was determined that the average CICO time of route trucks deviated from the target by 14.82 minutes, having a miss rate of 38.39%, resulting to an opportunity cost of Php1,477,365.36. This was seen as the problem statement of the study. A cause analysis and validation was then done to determine the primary causes of the A cause analysis and validation was then done to determine the primary causes of the problem. The proposal for the solutions were then subsequently carried out to resolve the corresponding causes. A majority of the causes were either delayed starts or prolonged processes which contributed to the overall delay in the route trucks experienced in the CICO process. The proposed solutions were evaluated using Kepner Tregoe Decision Analysis which determined which of the alternative solutions was the best choice for a particular cause. Lastly, preventative problem analysis, cost-benefit analysis and solution implementation was done to create a contingency plan and show the impact of the solutions to the company as a whole. The expected CJCO time after the solution is implemented will be 33.69 minutes and 31.44 minutes for TRCI and TPD trucks, respectively. The most ideal solutions made up the proposed system of the study in order to meet the target CICO time of 45 minutes, these solutions correspond to the causes that were determined earlier in the study. The proposed system consists of changes in method such as the change to a simultaneous picking method and the sorting of the delivery lists. An addition of manpower is also seen with the hiring of a new forklift operator. Moreover, there are new materials and machines to be incorporated such as radiophones, labels, and a 2-pronged forklift. With the implementation of these propose solutions, delays were removed or reduced, cutting the CICO time. With the implementation of the proposed solution, the distribution center will have an hourly delivery capacity of 12. 70 trucks compared to the previous capacity I 0.55 trucks per hour. It was determined that the old Check In Check Out (CICO) process times for TRCI (Company-owned) and TPD (Third-party distributor) trucks amounted to 42.86 minutes and 43.25 minutes respectively. The new process times for the CICO process will be 33.69 minutes and 31.44 minutes for TRCI and TPD trucks. The effects of the implementation of the proposed solution result to an improvement of 21 .40% and 27.32% for the CICO process times of TRCI and TPD trucks, which allows the warehouse to keep the CICO time well under the target of 45 minutes. With the proposed solutions, the decrease in opportunity loss is Php784,285.133 and annual worth of Php22,664.44 with a future worth of Php1,540,462.47.