A systems study on the production department of Corfarm Grains, Incorporated

• Main Authors: Araullo, Felipe, Hizon, Edward C.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Systems engineering; Rice > Milling; Grain trade; Production management; Industrial management; Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9194
• Institution: De La Salle University

CORFARM GRAINS, INC. (CGI) was formally organized in 1976 as the Meralco Corporate Farm Management. It has evolved into an independent and separate entity from Meralco, and is now one of the Top 7000 Corporations. in the Philippines. The system's mission is to mill (all classes) quality rice at the least possible cost in the earliest possible time. Also it is committed to protect and preserve the environment, as well as provide its employees with opportunities for growth. The production department procures the palay requirements from farmers in isabela and Pangasinan area and delivers it to the milling complex located in Bulacan. It operates two rice milling machines at 24 hours a day. From 1993 to 1996, the average palay shortage is registered at 23.73 %. This occurred mainly because of being unable to get a regular supply from the farmers despite the availability of palay. As a results, opportunity and overhead costs re incurred, the machines are idle, and demand cannot be met. To address this problem, the establishment of a linkage agreement with the farmers is proposed. The aim is to organize the system which is mutually beneficial among the company and the farmers. The farmers will sell their palay to Corfarm and provide their land as well as services. Corfarm will give them loans and finance their farming operations. The solution is expected to assure the availability of palay requirements necessary to eliminate the shortage and keep the rice milling machine running. The proposed solution is to be implemented within four to five weeks.