A system study on the Warehouse Department of San Miguel Mills, Inc.

• Main Author: Aguirre, Erika Hannah S.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Root cause analysis; Failure mode and effects analysis; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18630
• Institution: De La Salle University

San Miguel Mills Inc. is one of the leading producers of flour in the Philippines. Having said this, it is still inevitable that the company experiences problems particularly when it comes to their finished goods. Therefore, the warehouse operations of the milling company was chosen to be concentrated on. The present system of the company's warehouse was methodically identified through conduction of plant visits and interviews with people directly involved in the operations. Through this, various strengths, weaknesses, opportunities, and threats were discovered and elaborated in the SWOT analysis. The weaknesses, which should be addressed, were sorted further through evaluations made in the WOT-SURG analysis. The latter analysis established that the main problem of the warehouse is as follows: "Based on the month-end ageing reports, the quantity of bags that exceeded the 25-day staying target in the warehouse equated to 4.13% of the total inventory. Such costs the company a total of Php 836,696.52." From this point on, the said problem has been the center of the study. Moreover, the main objective was to reduce the number of ageing products and incur no costs from this as much as possible. It is important to first determine the root causes of the main problem; accordingly, why why diagrams were used. Through the use of the work sampling method and the Pareto chart, it was ascertained that the root causes that take place the most are the random placement of products inside the warehouse, non-conforming products not being marked as subject for reprocessing, and not prioritizing the non-conforming finished goods to be reprocessed. The solutions were afterwards proposed for these final root causes as well as how it is likely to be implemented. Cost-benefit analyses were also done to determine the profitability of the proposals based on their effectiveness. Based on these, the proposed solutions are expected to benefit SMMI in terms of expenses and warehouse operations.