A systems study in Pambalot atbp. Incorporated

• Main Authors: Chin, Irving T., Dy, Ian C.
• Format: text
• Language: English
• Published: Animo Repository 2008
• Subjects: Package goods industry > Production control; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/5081
• Institution: De La Salle University

Pambalot Atbp., Incorporated has been in operation since 2001. The company is known for producing quality paper board packaging products which are exclusively sold to their customers and its affiliates. The company's mission is to produce fine-quality food grade boxes and packaging materials to its exclusive customers and they envisioned themselves to become Southeast Asia's model food grade box and packaging manufacturer. The company has been experiencing some difficulties in meeting the complete demand of their customers. In line with this, the company currently incurs late deliveries of 255,832 units of carrier boards (Regular Season) to their customer which resulted to a penalty cost of Php 622,420 for the period (2007). After identifying the main problem, several causes were also identified which may have high contribution to the main problem. The group uses a why-why diagram was in order to fully detect the root causes that must be addressed in the study. The causes that were proven to contribute late deliveries are as follows: defective raw materials, machine breakdowns and unorganized production schedule. After this, the group selected the best alternatives using the Kepner-Tregoe Decision Analysis. The proposed solutions are as follows: hiring of a Quality Assurance Engineer, implementation of preventive maintenance policy and implementation of organized production scheduling system. Using simple Cost-Benefit Analysis, subtracting the total cost of implementation of proposed solutions from the total expected annual savings resulted to a total net benefit of Php 748,727.98. Using the simple payback approach, the payback period appears to be after 0.4584 years or 5.5001 months. Then, with a planning horizon equal to 5 years, it resulted to an NPV of Php 4,317,489.23."