A system study on the logistics processes of Onesimus

• Main Authors: Jacildone, Jenny Rose, Timogtimog, A.R. A.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Business logistics; Clothing trade; Root cause analysis; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18658
• Institution: De La Salle University

Onesimus is one of lhe country's leading manufacturers of high quality formal wear which caters to 123 different outlets nationwide. The system studied in this paper is the Logistics Department of Supply Chain Management Group of the company which have the following objectives: (I) Job Order (JO) entries should match the volume of item type received, (2) The inflow of items tagged al the ITS should be at least 3.78 JOs per day, (3) [terns in inventory should be kept in mint condition. There should be no defects found in each item kept, (4) Delivery Receipt entries should match the volume of item type to be dispatched, (5) The outflow of items scanned should be at least 14.2 Authorization To Issue Stocks (ATIS) per day, and (6) Worker utilization should at least be 70%. Strengths, weaknesses, opportunities, and threats were identified in the system and further analyzed through the use of WOT-SURG analysis. From the said analysis, it was found that the actual daily A TIS processed per day of 11.65 A TIS per day does not meet company outflow target of 17 A TIS per day. Furthermore, the group found out through its own time studies that the standard capacity of the system i actually just 14.20 ATIS per day which is lower than the company's target of 17 A TIS per day. So the company's target A TIS cannot be met by the system. This system study proposes a system whereby the standard capacity may be raised to meet the company requirement. From the problem identified an initial why-why analysis was performed. Jt was later on processed to create a final why-why analysis to identify the root causes of the problem. These were then validated and became the basis for generating of solution alternatives. The causes identified were (1) barcode sticker damage, (2) opposite-facing barcodes. (3) hindrance of plastic cover/ suit bag to scan, (4) hang tang inside of item, (5)fixed job assignment, (6) job sequence. Several solutions were made and further evaluated using a Kepner-Tregoe Decision Analysis to come up with the suitable solutions that would help increase system efficiency, reduce cycle time, and increase worker utilization. The set of solutions includes fixing tag during inspection prior to scanning, setting clear plastic as standard, transferring of two pickers to scanning during idle, and pre-printing of extra barcode stickers. These would affect mainly the picking and scanning process. A combination of these 4 solutions was used for the proposed system which increased the capacity to 22.50 ATJS per day and increased worker utilization by 10.65%. In addition to the combination of solutions, the proposed system required purchasing of additional truck (with one driver) and requesting of high quality clear plastic cover for the items. The system is expected to payback its initial investment after 9 years and will start to save PHP 69,908.82 on that year and will continue to increase the year after that.