A systems study on the Production Department of Interactive Packaging Inc.

• Main Authors: Delavin, Romulo V., Lavadia, Dan David C., Vergara, Cornelio Daniel E., IV, Gobaco, Bryan O., panel chair
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: System analysis; Systems engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9141
• Institution: De La Salle University

The study is focused on the production department of Interactive Packaging Inc. which began operations in 2002, and has been providing quality services to multiple clients since then. Being highly committed to delivering quality service, the problem being addressed is the reject rate of finished goods from the period of January to December 2013. The monthly average of reject rate is 9.48% exceeding the company's limit of 2%. Total rejected products amounted to an opportunity loss of Php502,465.63. The root causes of the problem were analyzed using the Pareto principle and the Ishikawa diagram. The main causes were identified to be estimated order specifications, worker negligence, misregistration of the die-cutting block, ineffective QC methods, poor cutting methods, rushed hand stripping and excess printouts incurred due to printer stoppage period. The goal of the study then is to provide alternative solutions to the identified problems. This was done by first identifying the musts and needs of Interactive Packaging Inc. Two to three alternatives per problem were then advised, and assessed during the Kepner Tregoe decision analysis method. A manufacturing system policy will help resolve worker negligence where supervisors will do mandatory rounds on the production floor, workers will be sent to printing seminars/workshops to gain new knowledge about printing processes, a more efficient method of developing production schedules will be created to minimize printer stop and go , cutting stage, a standard procedure will be devised to addresss rushed hand-stripping of printed outputs, a densitometer will be purchased as to provide objective assessment on the color of printed images, and the QC process for printing will include paper/board inspection to avoid misregistration in the process. This study will result to a better production output by minimizing opportunity losses and meeting its objectives of reject rates lower than or equal to 2%. It woudl result to annual benefits amounting to Php364,458.86. Proposed solutions will have a payback period of 140 days.