A systems study on the operations system of JCIB Express Cargo Movers Corp.

• Main Authors: Alday, Andrea Crisella E., Khu, Jerance Felicisimo, III, Vito, Julius Anthony S.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Industrial engineering; CIB Express Cargo Movers Corporation
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7466
• Institution: De La Salle University

JCIB Express Cargo Movers Corp. is a logistics company that offers various logistics services mainly focuses on freight forwarding, customs brokerage and trucking. Its mission is to provide exceptional total logistics services which meets or exceeds client expectations. These are done through on-time delivery, dependable workforce and rates which are more competitive compared to others in the industry. The study focused on the operation department of the system which involves three main services, namely: freight forwarding, customs brokerage and trucking. The performance metrics of interest are operating costs and time since these are key performance indices regarding its service. Through a WOT-SURG analysis, the problem was identified as the high demurrage costs incurred in 2013. Demurrage costs are penalties that are incurred due to the inability to release the shipment given a certain time frame. This becomes a problem since they are unable to avoid the unnecessary expenses given the processes are done thoroughly at the shortest process time. Although it is advanced by the company and later reimbursed through the clients, it tells us that there is a problem within the system which leads to their ability to meet the lead time to avoid these costs. Probable causes that contribute to the high demurrage penalties were isolated into three main aspects, namely: the delays in the brokerage process, delay in the relaying forms from one department to another and the inability to fulfill delivery needs of customers. Solution alternatives were then generated for each root cause according to the musts and wants as indicated by the company. The Kepner-Tregoe decision analysis or KTDA was used to evaluate the general alternatives per root cause. Six separate KTDAs were used to determine the solution alternatives that must be used to address the high demurrage penalty issue. After the evaluation of the solution alternatives, four solution alternatives were deemed usable to address the seven root causes. These four solution alternatives re 1) centralized monitoring 2) one flow-one process technique 3) quarterly assessment for employees and, 4) fair wage policy. Each of these solution alternatives address only 1 or two root causes. Since the target of the solution is to address all the root causes that contribute to high demurrage penalties, the key points of the four solution alternatives were integrated into one solution to create the integrated process management system. The integrated process management system has significant benefits to the system given that it incorporates the key aspects of the four alternative solutions. One significant benefit of the solution is that it decreases the process time and delays incurred by the transaction. This is done by separating internal processes of the system from the external processes. The separation of the internal and external processes will be assigned to a transaction based employee and a brokerage agent respectively. With the implementation of the integrated process management system, the system will be able to save a net present value of Php810,212 based on a 5-year horizon.