A systems study on J.R.C.E. Aquarius Enterprises

• Main Authors: Lubrin, Maria Carmina Y., Mangulabnan, Shaira Mella A., Mauricio, Ragaella Felicci P.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Feeds > Philippines > Bulacan; Industrial engineering; JRCE Aquarius Enterprises
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7634
• Institution: De La Salle University

J.R.C.E. Aquarius Enterprises is manufacturing company engaged in the production and distribution of feeds for chicken, hog, duck, and game fowl with the mission of producing quality products while efficiently delivering it to its customers in the domestic market. The study was conducted during November 2013 until October 2014, which focuses on the receiving of raw materials from suppliers, production of animal feeds, and distribution to customers. Historical data used in this study were dated from November 2012 until October 2013. The objectives of the system are to maintain machine downtime within 10 minutes per cycle, to have 12% crude content for corn raw materials and 11% for rice bran, to have at most 2% reject rate, to maintain 0% late deliveries, and have most 1.5% system loss in the production of animal feeds. The company present system was evaluated in terms of six aspects namely, persons, raw materials, information, methods, equipment, and utilities. After identifying the strengths, weaknesses, opportunities, and threats of the system, and assessing the findings by doing the WOT-SURG analysis, the problem that must be addressed is that J.R.C.E. Aquarius Enterprises exceeds its allowable reject rate of 2%, which was exceeded during all of the months from November 2013 to October 2014 having an average of 10.76% reject rate and a deviation of 8.76% amounting to a total opportunity cost of Php784,103.88. The problem has the following specifications there were 406 occurrences of bags with holes, 276 for bags with presence of other foreign material inside, and 244 for wet bags or grains. These rejects were identified in the warehouse which contributes to 43% of the whole rejects incurred distribution with 29%, and production area with 27%. An Ishikawa of fishbone diagram was used to determine initial causes of the problem that were further analyzed using why-why diagrams wherein the root causes identified were clustered using stream analysis. The results of the analyses showed that the causes of the problem can be clustered into five main groups which are: (1) no standard operating procedure for quality checking and sanitation implemented (2) inconsistent scheduling of sanitation and fumigation (3) insufficient number of material storage and handling equipment (4) limited ventilators and, (5) disobedience of workers. In determining the solutions to be implemented in addressing the root causes, a Kepner-Tregoe decision analysis was used. The solutions that are incorporated in the proposed system are creation of manuals for standard operating procedures on quality checking and sanitation work, putting up calendar for schedules of sanitation and fumigation on a bulletin board, addition of metal racks, pallets and trolleys for proper materials handling and storage, installation of industrial exhaust ventilators in the warehouse, and implementation of employee recognition system. The proposed solutions yielded an initial investment cost of Php162,04.00 with annual disbursements of Php12,100.00 and a net benefit of Php788,006.00 annually. The implementation of the recommended solution is proposed to last for one to three months and the full implementation will follow for one year once the trial run is proven effective.