A system study on the manufacturing department of Vichem Coating and Chemical, Inc.

• Main Author: Adajar, Francis Roy M.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/1630
• Institution: De La Salle University

Vichem Coatings and Chemicals, Inc. is a small time company, engaged in the manufacturing of Paint products. Established as a corporation on December 1987, it has been a reliable manufacturing company to its customers. It lives by its Mission to develop expertise in paint manufacturing, and its Vision to penetrate a larger market through increase in productivity. In the manufacturing process of paint products, the company encountered problems. Its major problem was the inability to finish 1,783.17 liters or a delay of 42.45% of its scheduled time in the production of industrial paint batches with an average days late of 1.51 days. This problem has cost the company a total of PHP 93,900 per month, which can be broken down to Overtime costs of PHP 31,000, and an average penalty cost of PHP 62,900 per month. It was observed that those orders with a Lead time of 4 days or less have a 70% to 80% chance of being delayed, so as with those job orders that comes after an order of large volume. This occurs in the Manufacturing department which involves sub-departments Technical, Production Planning, Production, Warehousing, and Delivery. The delay of 1,783.17 liters (42.45% of the time per month) occurred from January 1996 to December 1996 (scope of the system study). But due to the declining trend of delay in the completion of production of industrial paint batches, data from 1995, 1997, and 1998 were acquired to check if seasonality is a factor in the occurrences of delays. It was then found that seasonality is not a factor since in 1995, occurrences of delays is just about average (almost the same number of delays per month), while just a little bit of increase is observed in 1997. The available data for 1998 shows that the occurrence of delay was just about average, as in 1995. The people involved are the workers of the manufacturing department of Vichem. This also includes the supervisors and assistant supervisors of the sub-departments of the manufacturing department.