A system study on Taiphil Company Inc.

• Main Authors: Corsame, Ian Steven, Juan, Claudine Danielle, Perez, Amira Belle C., Chiu, Anthony, panel chair
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: System analysis; Systems engineering; Industrial engineering; TAIPHIL Packaging Co Inc
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9146
• Institution: De La Salle University

Taiphil Co. Inc. is a manufacturing company that specializes in the production of corrugated boxes. Provided to be the core function of the company, the study focused on the production department covering the periods July 2015 to June 2016. More particularly the study emphasizes on a single production line in the department, the regular type 1 box, which accounts for the largest share in the overall production of the company. With the use of the WOT-SURG analysis, the problem was determined to be a deviation between the daily planned and actual job orders completed by an average of 5.02%. This remains to be an urgent issue as the company incurred an overtime cost that averages to Php101,821.03 per month and would correspond to further costs if not addressed in the future. In the same way, the deviation between the planned and actual job orders fulfilled remains to be an urgent issue as it can affect the overall performance of the company with regards to customer satisfaction. The fishbone diagram was used to identify the initial root causes that lead to the problem. The researchers performed a validation on the causes identified through the use of historical data, plant observation and interviews to determine the final root causes that contribute to the issue. It was found that the following cause the problem: (1) low worker yield due to the transportation of goods (2) low worker yield due to rejects and, (3) capacity of the bottleneck not optimized. Through the validation techniques used in the cause analysis, it was identified that 51.72% of the loss time was due to the transportation of goods, 41.56% due to the unoptimized bottleneck, and 7.17% because of rejects made in the department. The solution proposed in order to address the problem was formulated with the use of the 80-20 rule of the Pareto chart. The researchers focused on providing solution alternatives to the causes that have the biggest share in contributing most to the problem, which are the transportation of goods and unoptimized bottleneck. The alternatives formulated for the said causes were evaluated with he use of the Kepner Tregoe decision analysis. To which, the solutions that were chosen to best fit the system include (1) hiring material handlers for every section of the production line and, (2) revising the process flow of the bottleneck. Implementing the said solutions would require no investment costs but would mean additional recurring cost amounting to Php48,757.11 a month and could increase costs by Php1,834,766.61, monthly sales by by Php2,381,346, and monthly profit by Php546,579.39. It is proposed to start the initial implementation of the solution proposal on May 26, 2017 and fully implement by June 14, 2017.