A system study on the Parts Department of Toyota Quezon Ave., Inc.

• Main Authors: Francisco, Jeriel G., Latorre, Michelle Angela S., Yu, Jarrett Lintford C., Gutierrez, Alma Maria Jennifer, panel chair
• Format: text
• Language: English
• Published: Animo Repository 2018
• Subjects: System analysis; Systems engineering; Toyota Quezon Avenue, Incorporated
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9153
• Institution: De La Salle University

Toyota Quezon Avenue (TQA) is the first franchise car dealer of Toyota Motor Philippines (TMP) that sells cars, car parts, and maintenance services. The company gears toward a customer centric oriented business and aims to provide quality services, innovate and enhance skills through continuous learning and improvement. TQA's warehouse is directly beside and connected to the main building of the dealership, which uses a just-in-time (JIT) system in ordering car parts that are not available readily in the warehouse. WOT-SURG analysis was used in problem prioritization wherein it was seen that the problem with the highest score is the parts return cost for 2016 exceeded the allowable standard of 1% by 0.29%, which ultimately translates to an opportunity loss of Php649,117.44. An initial why-why diagram was created, which enumerated the possible root causes. The root causes of the problem was validated and identified through the observation and interview of the operations and employees in the Parts Department and Service Department. Pareto analysis was also used to know which of the root causes of the problem comprised the 80% that we had to focus on solving. Using the results in the Pareto analysis, we utilized the Kepner-Tregoe decision analysis, to assess which of the proposed alternative solutions were in line with the company's given criteria. A total of four solutions were chosen, which included a training plan for purchasing module or ERP system (service advisers), a parts return in performance evaluation to automate software update, and a change in template of the parts advise slip. In conducting a cost benefit analysis, an annual worth of Php561,189.09 is achieved. Additionally, implementation of the solutions will reduce the resolve 80.49% of returns or Php3,309,267.77.