A systems study on the supply chain of chemical products of ABC Company

• Main Authors: Batac, John Ryan B., Regine, Pauline, Reyes, Maria Jameeca D., Mariano, Ronald S.
• Format: text
• Language: English
• Published: Animo Repository 2018
• Subjects: System analysis; System engineering; Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9134
• Institution: De La Salle University

Supply chain systems is a crucial aspect in companies in ensuring customer order fulfilment. In addition, a company's supply chain performance impacts its branding. Hence, it is important that companies monitor their supply chain system in order to check whether they are able to meet customer demand on-time with the least possible cost. In line with this, ABC Company is used as a subject to conduct a systems study on their supply chain. The company was established in 2003 and is situated in Calamba, Laguna. Its mission is to produce best quality products, providing utmost service, customer satisfaction specializing on water and wastewater treatment. The processes involved in the supply chain system of the company include purchasing of raw materials, warehousing, manufacturing, up to the delivery of the finished goods to customers. Initially, the researchers observed in the company to gather data to which the concerns in the company's supply chain were identified. From the WOT-SUG analysis conducted, it was found that the main problem in the supply chain system of the company is the 5.77 percent product returns and 8.39 percent late deliveries accumulated for year 2017. This deviates from the company's supply chain objectives which are to produce 100 percent conformance to customer specification of all products and to attain 100 percent compliance to delivery schedule with the least possible cost. The factors associated with the product returns and late deliveries were found to be due to five (5) factors through Ishikawa diagram: (1) documentation staff (2) lack of manpower (3) deterioration of raw materials stored outside the warehouse (4) lack of quality inspection points and, (5) poor control processes. From these, the researchers formulated alternative courses of action to which were evaluated using Kepner-Tregoe decision analysis. Results of the KTDA generated the following proposed solutions: provide refresher training to employees, post standard work instructions, increase worker flexibility, and establish visual controls in the workplace.