A systems study on M.J.R. Management and Development Corporation

• Main Authors: Castro, Gleowyne M., Reyes, Kevin Michael C., Uy, Troy Joshua R.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: Industrial engineering; MJR Management and Development Corporation
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7472
• Institution: De La Salle University

M.J.R. Management and Development Corporation is a rice producing and distributing company. The company has different rice products ranging from premium, well-milled and regular milled. These products are then sold to dealers and client. There is only one (1) major raw material used for these products which is unhusked or paddy rice. The paddy rice is classified into types type I and type II. The study was conducted during January 2015 until April 2016, which focuses on the receiving of raw materials from suppliers, production of rice, and dispatching of finished goods. Study period was from February 2014 until February2015. The objectives of the system include ensuring customer satisfaction by producing the right amount of sacks at the best quality possible with minimum cost, having a return rate of at least 60% in the actual output of the milling process, minimizing machine breakdowns to at most 5%, ensuring that the quality of the raw materials is at the safest minimum moisture of 14% or less and ensuring that the company is able to meet customer demands. The company's present system was evaluated in terms of six aspects namely, persons, raw material information, method, equipment and utilities. After identifying the strengths, weaknesses, opportunities and threat of the system, and assessing the findings by doing the WOT-SURG analysis, the problem that must be addressed is that M.J.R. Management and Development Corporation is unable to meet its standard recovery rate of 60% by 2% during the study period of February 2014 to February 2015 resulting to 8,459 missing sacks of finished goods to an opportunity cost of Php1,320,962.24. Using why-why diagram, initial causes were analyzed until validated to create the final why-why diagram that shows true causes of the problems. The results of the analyses showed that the causes of the problem were the following: (1) damaged sacks from the suppliers (external factor) (2) company guidelines regarding proper way of carrying sacks not followed (3) sacks haphazardly thrown in storing area (4) set up control of machine too complex (5) conveyor belt needs to be replaced (6) quality checker unaware of moisture content sensitivity (7) raw materials not processed on schedule and, lastly, (8) sacks being stored only in sacks, no other storage set up made available. In determining the solution to be implemented in addressing the root causes, a Kepner-Tregoe decision analysis was used. The solutions that are incorporated in the proposed system were to generate standardized process of carrying and unloading sacks with the help of visual aids and conduct training seminar addressing the issue provide simplified manuals for occurring malfunction incorporate machine maintenance schedule develop SOP and incorporate acceptance sampling incorporate FIFO method for production scheduling and, to build or construct PUSA cubicle. The proposed solutions yielded an initial investment cost of Php185,300 with an annual net benefit of Php1,228,435.29. The implementation of the recommended solution is proposed to last a few years and the full implementation will follow for one year once the trial run is proven effective.