A system study on the order to delivery process of in-house (aluminum) products of Buy n Earn (BNE) Food Machineries and Technology
A system study was conducted on Buy N Earn (BNE) Food Machineries and Technology Inc., a company that manufactures various types of food machines. Their mission is to provide on-time total food processing solution to its customers based on commitment and experience. Their slogan is our business puts...
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| Main Authors: | , , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2017
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/7465 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | A system study was conducted on Buy N Earn (BNE) Food Machineries and Technology Inc., a company that manufactures various types of food machines. Their mission is to provide on-time total food processing solution to its customers based on commitment and experience. Their slogan is our business puts people in business. Their vision is to be the lead leading fabricator and distributor of food processing equipment for the Philippines by 2020.
The study focuses on the in-house aluminum production line of the company where all aluminum products are mainly produced from scratch, compared to the other products (steel_ where it relies mainly on raw supplies and materials. Based on the company's objectives, the company was evaluated by determining their strengths, weaknesses, opportunities and threats. Through WOT-SURG analysis, it was determined that the greatest problem of BNE was their late deliveries (17 out of 52 transactions) in the months of June to October 2016 which led to a penalty cost of Php110,566. A fishbone diagram was then used to pinpoint the root causes of the late deliveries which were identified as the following: (1) planning of processes is based on estimates (2) rework needed on part (3) overlapping of repair time (4) part/materials were not ordered upon PO reception (5) no material quality check upon reception and, (6) loss of worker motivation and improper workplace environment.
Several alternative solutions were suggested to resolve the problem. Through the use of the Kepner-Tregoe decision analysis, the most suitable solutions were identified and classified as the following: (1) adjust lead time depending on the amount of WIP (2) a visual board for the scheduling system (3) introduction of materials/tools to improve quality (4) organized repair time/schedule (5) implement an always-order policy (6) strictly implement supplies inspection process and, (7) implementation of 5S. the implementation of the proposed system led to an NPV of Php86,311.64 and a payback period of 3.9 months. |
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