A system study on the manufacture of distribution transformers of Philippine Electric Corporation

• Main Authors: Pineda, Marion Antonieta C., Villanueva, Betty Grace
• Format: text
• Language: English
• Published: Animo Repository 2000
• Subjects: Inventory control, Philippine Electric Corporation > Inventory control; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/4250
• Institution: De La Salle University

Philippine Electric Corporation is Philippine's pioneer integrated transformer manufacturer owned by First Philippine Holdings Corporation (FHPC), a diversified Filipino Conglomerate. The capacity of the plant for the Distribution Transformer section is 10,000 units per annum. PHILEC is currently having difficulty in fulfilling its target production in manufacturing Distribution transformers. This problem causes the company to incur a profit loss of P 2,252,366. The reason for these unmet demands is due to the following: 1) material shortage; 2) late purchasing of raw materials; 3) excess equipment set-up time; and, 4) rework. However, the real causes that contribute greatly to the main problem is the inventory management problem and the material delivery from suppliers. Having an objective to provide the system into reducing its costs, the proponents proposed the following: 1) impose safety stock; 2) add new and modify existing forms; 3) submit a one year material requirement plan to the supplier of copper; 4) computerize process of updating inventory levels to monitor the usage of inventories.