A system study on the production of pantograph jack of Karzai Corporation

• Main Authors: Algenio, Krstine Arianne S., Calixto, Isabella Camille U., Romero, Isabella F., Gutierrez, Alma Maria Jennifer, panel chair
• Format: text
• Language: English
• Published: Animo Repository 2018
• Subjects: Systems engineering; System analysis
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9190
• Institution: De La Salle University

A system study was conducted on Karzai Corporation, a manufacturing company that produces various automotive parts and accessories in the Philippines. This study focuses on Karzai's production line of pantograph jack under the Metal Stamping Division, specifically from June 2016 to May 2017. Based on the company's specific goals for delivery performance and production quality, the system was evaluated to determine its strenght, weaknesses, opportunities, and threats. After the evaluation, a WOT-SURG situation appraisal was conducted on the present system and it was determined that Karzai's greatest problem is the 91.63% delivery performance, or 8.37% deviation from the targeted performance of 100%, which results in an annual opportunity loss pf Php861,688.56. The problem was further investigated, and the identified root cause of delayed deliveries emerged from line stop, departure delay and unused capacity, which contribute 34.92%, 25.57% and 40.14% of the main problem, respectively. In order to address these issues, multiple solutions were evaluated based on a set criteria. The proposed system is a design of solution that includes forecasting and inventory management, departure delay management, and assembly line management. The proposed system is a combination of solutions that tackle each of the root causes. The recommended system include the following: (1) establish 1-day stock lead time of outhouse stock (2) automation of record keeping on outhouse parts (3) implement shipping monitoring chart based on existing condition (4) purchase of one additional forklift for transportation operations (5) implement a suitable forecasting method to plan production and, (6) process re-engineering of the assembly lines. Based on the results, this would address 91% of the late deliveries. Furthermore, the proposed system will meet the company's target delivery performance. By implementing these solutions, and expected net present value ranges from Php1,239,574.15 to Php2,614,050.76 depending on the rate of return used. The implementation of the proposed system generated an expected payback period of 2.77 months.