A system study on Gibson's Shoe Factory Incorporated

• Main Authors: Declaro, Jan Kenneth, Kang, Arvin Clarence G., Malcaba, Clarence John V.
• Format: text
• Language: English
• Published: Animo Repository 2018
• Subjects: Shoe industry; Manufacturing industries; Gibson's Shoe Factory Inc; Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/8844
• Institution: De La Salle University

Gibson's Shoe Factory Incorporated is a shoe manufacturing company that specializes in the production of dress shoes and combat boots in Marikina. The company is often chosen by the Armed Forces of the Philippines as the main supplier of shoes due to its high quality and durability. As the years go by, the company envisions in maintaining and improving its operation in the shoe manufacturing industry both in the domestic and international markets. For the year of 2016, the company experienced an accumulated lateness of 57 calendar days on government agencies with a total of 13,489 combat shoes remaining to be produced resulting to a total penalty cost of Php9,755,040.00. After conducting a problem analysis through the use of a why-why diagram, the main four problems were found to be the following: (1) misplaced inventory (2) stockout of raw materials (3) machine breakdown and, (4) lost man-hours. Correspondingly, proposed solutions were created to improve the overall operations of the company. The final solutions include the following: (1) installation of racking system for the storage of raw materials (2) creation of inventory monitoring sheet (3) checklist to conduct preventive maintenance of machines and, (4) implementation of ventilation system. With all the final proposed solutions, three methods of cost-benefit analysis were done to check if the project is feasible in terms of cost. The first method is net-benefit analysis, in which the total net benefit of the project is Php2,822,972.32. The second method is return on investment, in which the computed value is 9.81. Lastly, the third method is payback period, in which the computed payback period is 0.09 years.