A system study on the Production Department of Southern Processing Corporation

• Main Author: Mercado, Jayson M.
• Format: text
• Language: English
• Published: Animo Repository 2010
• Subjects: Meat industry and trade—Production control; Production management; Industrial Engineering
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6585; https://animorepository.dlsu.edu.ph/context/etd_masteral/article/12962/viewcontent/CDTG004930_P.pdf
• Institution: De La Salle University

The system studied is the production of patty in the Production Department of Southern Processing Corporation which has been in existence in Lucena City since 1995 as a player in the manufacturing industry of processed meat products. The study used the available data in the system from January 2010 to October 2010. The collection and analyses of these data made up the present system under study. The study used Situational Appraisal as its methodology wherein SWOT Analysis was employed in identifying the main problem of the system. This involved the analysis of different concerns and problems in terms of seriousness, urgency, resources and growth including its justifications. With these, the concerns and problems had been ranked and the main problem of the system was identified. The main problem of the system was the potential occurrence of unmet demand of patty amounting to PhP 1,330,703.63 lost profits from 21.59% of November 2010’s demand and 30.60% of December 2010’s demand. It was considered a threat because demand was an external feature of the concerned system and its status would hinder the system from attaining its objectives. Specifically, the system could not achieve 100% production of the demand in the next two months. Cause and Effect Analysis was used in identifying the causes of the main problem. Also, correlation coefficients of the probable causes with the unmet demand were computed using statistical software. These values, together with the corresponding p-values served as the bases in determining the true causes of the problem. It was found that the main problem was indeed 40.00% caused by the machine and 26.66% caused by the methods of blasting. Using Kepner-Tregoe Potential Problem Analysis; the preventive actions to solve the main problems were: resizing of the blast freezer room by expansion, and implementation of loading and unloading policy. Contingent actions were also identified. The preventive actions were implemented and relevant data were gathered in the end of November 2010 to validate the results. The data showed increase in the capacity of the blasting process, and the increase in patty production’s actual output. The capacity has increased from 1,262,566 patties a month to 2,558,800 patties a month, while the actual output has increased from 2,056,426 pieces to 2,447,093 pieces in November 2010 and to 2,658,704 pieces in December 2010 which denoted 100% achievement of the respective monthly demands. The savings due to these improvements is estimated to be PhP 887,047.04 in the two-month period of implementation in 2010 based on a simple cost-benefit analysis.