A system study on the polo shirt production of Island-Mate Enterprise

• Main Authors: Buguis, Gerald Joseph L., Tiu, Charles Marvin H., Zalatar, Willy, panel chair
• Format: text
• Language: English
• Published: Animo Repository 2018
• Subjects: System analysis; Systems engineering; Island-Mate Enterprise
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9149
• Institution: De La Salle University

Island-Mate Enterprise is a garments manufacturer operating in Balintawak, Quezon City. Products being offered and designed are custom made shirts. Three products are currently being offered namely sando, t-shirts and polo shirts. Island-Mate also accepts special orders such as uniforms (polo shirt design) and custom made shirts. Polo shirts are the most frequently ordered product, making it the focus of the study. The perceived problem from the WOT-SURG analysis in the polo shirt system is that there are 4,591 unmet demand for the year 2016 which is 1.99% of the total demand resulting to an average opportunity loss of Php1,377,300 per year, deviating from the targeted 0.5 standard. Four of the six identified root causes were addressed in the root cause analysis as a result of the Pareto analysis namely (1) plastic wrap containing the stock label is thrown when preparation of the collar is performed (26.80%) (2) cutting worker did not inspect the fabric material thoroughly before laying it on the cutting table (23.16%), together with, (3) there is no formal report for thread usage in the production line (19.63%) and (4) replenishment is dependent on verbal communication when stock already runs out (15.26%). With the Kepner-Tregoe decision analysis tool, one solution for each root cause was chosen. These are (1) storing of WIP goods in a container with correspondingly batch number label (2) conduction of fabric color inspection prior to cutting (3) creation of thread consumption report and kanban system and, (4) creation of the raw material acquisition report prior to the cutting process. Likewise, total cost savings from this solution is Php269,068.50 per year. This equates to opportunity losses amounting to only Php14,161.50 per year which is 0.1% of the total profit. The payback period of the proposed solution is computed to be 2.09 months or 42 days.