A systems study on the milk production of XYZ Corporation in Cabuyao, Laguna

• Main Authors: Garcia, Gabriel F., Guintu, Julienne Marie I.
• Format: text
• Language: English
• Published: Animo Repository 2018
• Subjects: Milk yield > Philippines > Laguna > Cabuyao; Industrial engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/8403
• Institution: De La Salle University

XYZ Corp. was founded in the early 1950s. It started as a flour manufacturing company. Currently, the company specializes in producing ready to eat packaged foods and beverages. The study focuses on the milk production department to XYZ Foods Corp., which is located in Cabuyao, Laguna. Relevant data from January to December 2016 were gathered. The production system of the company was presented using the 4Ms of production (man, machine, material, and method). Also, a SWOT analysis was conducted, where it was identified that the company loses 7,930,877.39Php because it was only able to produce 82% of the milk products with the 100Ml SKU, which is less than the standard yield of 94%. In order to address the problem, the root causes where identified using the fishbone diagram. The root causes identified where the liters lost in production due to the high flow arte of the equipment, the estimation of raw materials during dumping, and the occurrence of machine breakdowns. Using the Kepner Tregoe decision analysis, the solution for each root cause were made. The solution to the high flow rate is to replace the equipment with a machine that has a slower flow rate while the solution to the estimation of raw materials is to attach a totalizer, which is a device that accurately displays the amount of milk present within the system. Lastly, the solution to the occurrence of machine breakdown is to revise the current maintenance procedure with a more extensive one. A cost benefit analysis was conducted on the proposed system. It is identified that the proposed system would generate a net present value of 13,836,000.77Php.