A system study on the production line of Centro Manufacturing Corporation

• Main Authors: Lui, Emily O., Pagsisihan, Jason A., Si, Dianne Marie L.
• Format: text
• Language: English
• Published: Animo Repository 2016
• Subjects: System analysis; Systems engineering; Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9138
• Institution: De La Salle University

A system study was conducted on Centro Manufacturing Corporation (CMC), a company that produces truck bodies. The company is in partnership with many different automotive companies in the Philippines. The study focuses on the Novaliches plant of CMC, which produces Mitsubishi L300 FB Deluxe and Exceed, with a study period of January 2015 to December 2015. Based on the company's objectives, the company was evaluated by determining their strengths, weaknesses, opportunities and threats. Through WOT-SURG analysis, it was determined that the greatest problem of CMC is the unmet committed firmed orders (CFO) 236 units (210 Deluxe and 26 Exceed) for 2015 which led to an opportunity loss of Php8,186,458.56. This problem was furhter investigated by using a why why diagram to determine the root causes of the problem. The root causes of the problem are the long processing time of some processes due to lack of equipment and worker, insufficient raw materials due to ineffective raw material ordering. Wih this, the proposed system is for the company to purchase additional lifter for the metal treatment process and to transfer one worker from Levy second body filler to Levy body filler application. The effectivity and improvement by this proposal was supported using a simulation model from ARENA simulation software. Results of the simulation show that with the proposed system, the company can reach the required CFO. Moreover, to address the insufficiency of raw materials, the proposal is to have a new ordering system. An example of this is to use the tool, material resource planning (MRP). An Excel file was used to use MRP, and using historical data, trial-run was conducted. Results show that with the use of the new ordering system, the company can reduce the frequency of stock-outs in the inventory. The implementation of this proposed system led to an NPV of approximately Php8 million, and a payback period of less than one month.