A systems study for the production department of Makki Fashion Shoes

• Main Authors: Chuidian, Czarena Louise, Mendiola, Genevieve Anne, Santos, Christy Rose
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Manufacturing industry; Shoemakers; Shoe industry; Management > Employee participation; Industrial management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/8259
• Institution: De La Salle University

The problem of delay in the delivery of shoes is a very common problem in the shoe manufacturing industry. Makki Fashion Shoes (MFS) is not an exception to this. From the study of the production system of the company, it was discovered that for the period of January to June 1997, 52.4% of the total shoes that should have been delivered was delayed. The cost that was incurred due to this was Php. 18,313. From this problem, an analysis of the present system was conducted. Several causes were identified that contributed to the company's main problem. Among these, the three main problems were the undetermined capacity of the plant, which caused management to accept orders beyond what they can manufacture, poor working conditions, and the late delivery of materials from the suppliers. Utilizing the Kepner-Tregoe Decision Analysis and the Optimized Production Technology (OPT) Approach, a new system was developed for MFS. This system proposed an OPT schedule that includes the injection of a padlock machine in the production system. The problem on the working condition was also addressed by the installation of a new set of jalousie windows in the shoe lasting section. The proposed system was justified further through the analysis of the costs that would be incurred and benefits that would be gained by the company. An increase in sales equivalent to Php. 97,416 was realized from this system. In addition to this, the net present value at the end of the economic life of the project was computed to be equivalent to Php. 120,180.10427767