A system study on the production department of Blue Bay Garments Manufacturing
Blue Bay Garments Manufacturing (BBGM) currently offers round necked and collared shirts for men, ladies and kids. Based on the study of BBGM's operations from January to August of 1996, it was determined that the company experienced 33.15% in delivery delays which resulted to P 164,603 in over...
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
1997
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/4725 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | Blue Bay Garments Manufacturing (BBGM) currently offers round necked and collared shirts for men, ladies and kids. Based on the study of BBGM's operations from January to August of 1996, it was determined that the company experienced 33.15% in delivery delays which resulted to P 164,603 in overtime and penalty costs.
After an analysis of the possible causes and subcauses that contribute to the delivery delay, it was narrowed down to two controllable causes: BBGM can not meet the monthly job order requirements and the unsystematic acceptance procedure due to the inaccurate due date determination.
To solve these causes, the proponents of this study recommend that BBGM increase its production capacity to meet the monthly requirements and develop an acceptance procedure that will accurately determine the due dates of the job orders. A second shift in the production section is proposed to meet the monthly shirt requirements and the pants subcontracting offer.
The implementation of the proposal would eliminate the overtime and penalty costs. An additional profit would also be realized from the additional production capacity. BBGM would be able to satisfy the demand and capitalize on the pants opportunity. The Net Present Value of the proposal is P 375,035.92 |
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