A system study on the steel bar production of Grand Asia Metal Corporation

• Main Authors: Co, Christopher Antonio P., Gamboa, Tiffani Grace V., Rustria, Rafael Vincent V.
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: Steel industry and trade—Production control; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18626
• Institution: De La Salle University

Grand Asia Metal Corporation is a steel manufacturing company based in the Philippines. The main headquarters can be found in Mandaluyong City, while the manufacturing plant in Quezon City. As of 2007, the company has established its name in the market with the third most shares next to Lunar Steel and Cathay Metal Corporation. The company that has become started out as a metal trading industry in 1975, more popularly known as the TC Carlo Trading Corporation. With the increase in demand for steel products, the company shifted its focus into manufacturing these products instead. By 1993, the business has expanded and gave way to the establishment of the Grand Metal Asia Corporation. Upon studying the system of Grand Asia Metal Corporation, a deviation occurred on the amount of orders being unfulfilled This deviation resulted to the company incurring opportunity loss. The company was only able to fulfill 97.41% of the order quantity, however, it deviated 2.59% from the standard of 0% orders unfulfilled. This problem led to an estimated opportunity loss of P 17,998,000.00 for the whole year. A why-why diagram was used to determine the root cause of the problem. The root cause to this problem are due to delays in the production line from the extrusion process (accounting 18.18% of the purchase orders), cutting process (accounting 34.09% of the purchase orders), and heating process (accounting 47.73% of the purchase orders). A list of generated solutions/alternatives were created in order to eliminate the cause of the problem. The alternative solutions are to Standardize the Procedure for Preventive Maintenance, Purchase Backup Machines, Implement a New Procurement System, and Produce their own Raw Materials. Kepner-Tregoe Decision Analysis was used to decide which amongst these solutions are the best solutions based on the needs and wants of the company. The final solution that were chosen are to Standardize the Procedure for Preventive Maintenance and Implement a New Procurement System. Kepner-Tregoe Potential Problem Analysis is used to help in anticipating problems, once the solution is implemented, before they even happen and to identify possible actions to take to prevent this from happening or to at least minimize the effect. Additionally, a cost-benefit analysis was done in order to see the return of investment of each of the proposed solutions. It is computed that there would be a greater benefit than the cost for both solutions. The implementation of the proposed solution would take roughly five weeks to finish. This would include scheduling the meeting, proposing the solution to the company, training and preparation, trail run, evaluation and adjustments of solutions, if necessary.