A system study on the production of chairs of Rattan Pacifica Incorporated.

• Main Author: De Yre, Pia Jenina M.
• Format: text
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/1748
• Institution: De La Salle University

Executive Summary. The study involves the production of chairs of the Production Department of the Rattan Pacifica Incorporated. In the year 1999, the company has failed to meet its target production level of 431 chairs per month. This has resulted to an opportunity loss of Php 3,260,250. Excessive overtime has also caused the company to incur a direct labor cost of Php456,765.13. This can be attributed to problems encountered in the production area. The study was designed to increase the utilization of the system by 21%. After an extensive evaluation of the problem, it was found out that the main cuase of not having met the monthly target production rate for chairs is that of having a lack of proper monitoring and scheduling system in the Production Department. The proponent has come up with a proposed solution that involves the use of a computer program that would aid in the monitoring and scheduling of the production of job orders in the production area. The use of the computer program will aid the management and the workers in the proper scheduling and monitoring of the production of job orders by way of fully utilizing the system capacity of the company. With the implementation of the use of the computer program, it aims to reduce the occurrences of the unmet target production for chairs. Likewise, the computer program will also aim to decrease the occurrence of the following effects: rejected orders, overtime and absences among workers, by way of solving the root causes of the problem. The total implementation cost for the entire proposed system amounts to only Php2000. A net benefit of Php3,715,015.00 will be accomplished on the first year of implementation. The implementation will last for a maximum of five weeks months and a follow up will made every month thereafter for a continuous evaluation of the proposed system.