A system study on the Production Department of La Pacita Biscuits, Inc.

• Main Authors: Bracamonte, Rica Josenia P., Coronel, Maria Bianca L., Del Rosario, Kides Casilda M.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Biscuit industry—Production control; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18620
• Institution: De La Salle University

Felicisimo Martinez & Co., Inc., manufacturer of La Pacita biscuits, cookies, and crackers have been serving the Filipino people for over 90 years. The company has grown ever since and is continuing to serve the public with its satisfying and tasteful products. The system study focused on the five main products of the company: Prima Toast, Egg CrackJet, Mamon Tostado, Pasencia White, and Broas. The problem was identified using the WOT-SURG and it resulted with an initial problem statement of the average yield performance of the 4 products for 2015 is 66. 71 % which is below the average target of 9 I% which leads to an average missed opportunity of PhP 9,722,203.29. To narrow down the problem, Pareto analysis was used to identify which of the following products contributed to the materials inefficiency, which is Prima Toast. Afterwards, a why-why diagram was used to identify the probable causes in order to find a solution. For each final cause, there is a corresponding solution. The first solution is to implement floor marking labels to address the problem that they do not follow the OSHA standard 1910.22. The second one is replacing the slicer machine blade to address the 3.47% contribution to rejects. Lastly, to train workers on determining quality standards in the production since only the maestro knows how to check rejects and they rely on the maestro too much since they have subjective inspection. The Cost-Benefit Analysis the researchers did was a 5 year span, the Total Cost that they would incur for the 5 years is roughly PhP85,000 but their total net benefit for the 5 years is equivalent to PhP6,777,606, minus all the cost that the company would incur in 5 years' time. The payback period of the company was calculated to be 1.52 years.