A system study on the production, warehouse, and delivery operations of Arty Work Builders Corporation

• Main Authors: Casuncad, Altheo N., Lin, Gracielle Therese L., Sy, Hans Seymour S.
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: Root cause analysis; Wall panels; Production control; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18625
• Institution: De La Salle University

Arty Works Builders Corporation is an official registered company which is authorized to manufacture wall panel and sell it to different parts of the Philippines. The company offers only 1 product which is the lightweight wall panel with different thicknesses -75mm, 90mm, 120mm, and 150mm. The scope of the study is the factory located in Punturin, Valenzuela which is handled by the factory manager of the company wherein production, warehousing, and delivery of the product processes are conducted. The aim of the Production and Delivery of the company is to produce high quality product, and store these properly, and deliver the quality products accurately and on time to satisfy the customers of the company. The team first gathered all the data of the production, warehousing, and delivery system of the company, a SWOT analysis was used to determine the different problems within the system. The different concerns were then ranked and prioritized using the WOT-SUG analysis to identify the most significant problem. The problem with the highest ranking is "Late deliveries from January to December 2017 accounted for I 2.27% of all deliveries during the period, deviating 12.27% from the system's objective of 0% resulting to PI,227,003.00 in penalties incurred." The formed problem statement was further analyzed with the use of the Kepner Tregoe Problem Analysis in order to detail down and find the root cause of the problem. After finding the root causes of the problem which were poor communication process, no allowance and control on delivery request, low delivery KPI, and lack of delivery trucks, it was then followed by solution design of the identified problem in which included of generating of alternative solutions, simulation of the alternative solution, and a cost-benefit analysis for the solutions. The alternative solutions underwent several processes to identify which ones are the best. The team have come up with the following solutions: Use of Email as a common method for relaying Delivery Requests, Impose Lead time for Deliveries, measure and maximize Truck utilization, and outsource deliveries to a logistics company as best solutions that would solve the identified problem and best benefit the company. Overall, this study helped Arty Works Builders Corporation solve its problem on late deliveries. The findings of the study are expected to eliminate late deliveries of the company and save them Php820,445.39 per year.