A system study on Company A: Sta. Rosa pabahay housing project

• Main Authors: Lim, Tommy A., Olan, Angelica Joy L., Santos, Diosdado Yvan Miguel I.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Warehouses—Management; Root cause analysis; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18624
• Institution: De La Salle University

Company A is a construction company that builds low-cost housing for NHA, a government agency that provides housing. They provide NHA with both the materials used to build the houses, the project management, and the labor for construction. The company aims to be recognized and certified in this line of business by delivering excellent service, honesty, integrity in the performance of its work. Company A is responsible for the procurement and storing of the raw materials. With this, they currently have 5 warehouses in which for storing of raw materials. This is monitored by using stock cards to record the inflow and outflow of materials. However, with the use of WOT-SURG analysis, it was found out that the material damages and losses exceed the contingency percentage of I% by 278%. The total additional cost of material damage and loss amounted to Php2,799,317.51. To be able to determine why this happened, the Ishikawa Diagram was used, wherein the causes were classified into man, material, method, and machine. By observation and frequency count of instances, the diagram was validated. For warehousing it was found out that the following are the causes: unified records for all warehouses, lack of facilities planning, insufficient storage equipment in warehouses, placement of materials outside of warehouse. For storage and retrieval: not following procedures for withdrawals, lifting too much materials at once, and manual handling of materials. For raw material checking, it was found out that there is inconsistent inventory count in warehouses. Lastly, for security, there is a lack of security personnel on site and also inconsistencies when guarding materials during withdrawal. After providing different solutions for the problem, the final alternatives were selected with the use of Kepner-Tregoe Decision Analysis. After doing so, three alternatives were selected which were daily inventory count and recording, acquire additional manpower and equipment as well as providing a facility plan, and implementing security policies. Net present value is Php3,061,413.34. Investment will be returned with a payback period of 4 months.