A system study on the production lubricant (PLUB) department of Seaoil Philippines Inc.

Date of Publication

2012

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Industrial Engineering

Subject Categories

Industrial Engineering

College

Gokongwei College of Engineering

Department/Unit

Industrial and Systems Engineering

Thesis Adviser

Dennis E. Cruz

Defense Panel Member

Eric A. Siy

Abstract/Summary

SEAOIL is an independent fuel company which provides fuel and lubricant products for automotive and industrial use. At present, it imports fuel products from other countries to lessen manufacturing costs. However, they manufacture their own lubricant products which are blended using imported base oils, scents and local additives. SEASOIL would like to improve the sales of their lubricant products that is why the system under this study would focus on the companys Production Lubricant (PLUB) Department from production utilizes a Third Party Logistics (3PL), DB Schenker, to manage the storage of the lubricant products. A 200,000 liter monitoring contract for the year 2011 with DB Schenker was signed.

After conducting a WOT-SURG situation appraisal, the main problem was determined to be the underutilization of the 200,000-liter monitoring contract with DB Schenker by 16.14% in the year 2011. With this problem, an opportunity loss of 708,000.00 pesos was incurred. Through the use of an Ishikawa diagram, three primary causes of the problem were identified, namely, Low Production due to Inefficiency of Production Line, Occurrence of Returned Rejects due to Lenient Sampling, and Excessive Contract Volume due to Slow Inventory Turnover.

In order to address the causes, alternatives for the proposed solutions were evaluated through the use of the Kepner-Tregoe Decisions Analysis (KTDA). The proposed solutions which met the criteria set by the proponents with the consent of the management were: Table placement near the filling machine area to cope with low production, Addition of another mechanical press and change in sampling time interval to improve the detection of rejects, and Determination of contract level and delivery scheduling to avoid deficits and utilize the contact.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU18821

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

viii, 179 leaves : illustrations (some colored) ; 28 cm.

Keywords

Lubrication and lubricants industry--Philippines; Lubricating oils; Automobiles--Lubrication.

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