A systems study on the production operation of Sun King Electronics Co., Incorporated

• Main Authors: Caluag, Chinna Mei C., Cruz, James Raymond V., Soliman, Mary Katrice J.
• Format: text
• Language: English
• Published: Animo Repository 2008
• Subjects: Electronic industries; Electronic apparatus and appliances > Design and construction; Production management > Case studies; Sun King Electronics Co; Other Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7211
• Institution: De La Salle University

Sun King Electronics Co., Incorporated is a manufacturer of Inductor Coils for colored television sets with Toshiba Singapore as its major client since 1971. The company's mission and vision is to be an expert in manufacture of top-of-the line electronic parts that is committed to quality. The current delivering system incurs 59.24% delivery time lateness for the year 2007. In monetary units this amounted to a cost of Php1,053,053 due to delivery by plane. Using Pareto Chart and Cost-and-Effect diagram it was found out that the root causes which contributes to the 81.89% of delivery time lateness are inappropriate ordering schedule, miscalculation of raw material requirement, carelessness/mishandling of worker and the non-compliance with given sample. The solutions to address these prevalent causes include the following: a combination of demand forecast model (weighted moving average) and re-order point model (re-order point model I), issue penalties and promotion of good housekeeping, excel template for raw material computation. Making use of the simple payback method and Cost-Benefit Analysis it was found that the company could return its investment on the project by 4 days and projected net benefit of Php 505,941 could materialize. The solutions are found to be feasible and are ready for implementation.