A system study on the Operations Department of Twin Heights Enterprises

• Main Authors: Castillo, Janine Hazel R., Espiritu, Shiena Mae A., Gaurana, Kathlene Marie K.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Industrial enginnering; Twin Heights Enterprises
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7474
• Institution: De La Salle University

Twin Heights Enterprises is sole proprietorship, committed with its mission of selling and distributing the highest quality of school and office supplies with continued dedication in fulfilling customers ever-changing needs while sustaining profitable company growth. This study is concerned with the Operations Department of Twin Heights Enterprises. The problem being addressed in the study is that in January 2014 to December 2014, the on-time delivery performance of the operations department is 90.13%, which deviates by 7.87% from the target of 98% that result to an opportunity cost amounting to PHP304,680.05. The system owners and these writers believe that they have time and resources to solve this problem. The problem has the following specifications: What: The on-time delivery performance of 98% is not achieved Where: Operations Department of Twin Heights Enterprises When: January 2014 to December 2014 How much: 7.87% deviation from the target of 98% Its root causes that significantly impact the main problem are the following: 1. Inventory control issues 2. Unsettled accounts 3. Misplaced inventory 4. Below minimum order quantity 5. Branches in the same route were already delivered 6. Inefficient forecasting method The following are recommended to solve the problem: 1. Generate inventory monitoring spreadsheet 2. Re-design storage area 3. Create scheduled order report 4. Implementation of MOQ purchasing order policy 5. Use of outsourced trucking services 6. Use of percent-of-demand as forecasting model This solution is expected to result to the following: 1. Initial capital investment amounting to Php8,303 2. Additional operating expense amounting to Php14,025 3. Net benefit of Php265,766 4. Increase in worker productivity 5. Maximization of sale revenue This implementation of the recommended solution is proposed to start on August 2015 for the trial and on November 2015 for the final implementation.