A system study on White Horse Plastic Manufacturing

Date of Publication

12-20-2019

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Industrial Engineering

Subject Categories

Operations Research, Systems Engineering and Industrial Engineering

College

Gokongwei College of Engineering

Department/Unit

Industrial and Systems Engineering

Thesis Adviser

Richard C. Li

Defense Panel Chair

Anthony S.F. Chiu

Defense Panel Member

Maria Brenda R. Rayco

Abstract/Summary

A system study was conducted on White Horse Plastic Manufacturing, a company that produce plastic films and bags like LDPE, HDPE, and PP. Currently, the company has three locotions located in Malabon City but the study will only focus on only one location which is the main plant. The study would be focusing on the production operations, warehousing and delivery system or the company's row materials and finished goods. The study would cover the entire manufacturing operations of the compony which includes the delivery of raw materials to the production operations until the delivery of the finished products to the customer.

Based on the findings in the present system and comparing it with the objectives of the company, the company was evaluated by determining their strengths, weaknesses, opportunities and threats. Upon conducting SWOT and WOT-SURO Analysis, it was determined that the biggest problem of White Horse Plastic Manufacturing is the amount of returns of the company which is composed of 2.03% of all bundles shipped in 2018 deviating from the tolerable rote of 0% that led to an opportunity cost of P795, 142 and on actual cost of Pl ,222,405.49.

This problem was further analyzed by using a Why-Why Diagram, interviews with the management and workers of the company, time study, and Pareto Chart Analysis to determine the root causes of the problem. It has been found that there ore 6 root causes, namely: socks containing different sizes look identical, size delivered was not checked prior to delivery, plastic size did not pass the customer's standard, plastic gels caught on protruding objects when transported to the designated area resulting to holes, thickness of the plastic did not pass the customer's standard, and temperature of the machine does not reflect the setting it was placed on. After identifying all the 6 root causes, solutions were then generated to address these root causes. The solutions generated were assessed through the Kepner Tregoe Decision Analysis and were also backed up with simulation and real-life changes. The solutions proposed for each root cause are the following:

  1. Sacks containing different sizes look identical. -Assign color coding and fixed places for each size in the warehouse
  2. The size delivered was not checked prior to delivery. -Implement the poka yoke system in the transportation process of the finished goods
  3. The plastic size did not pass the customer's standard. -Match tolerance levels in the quality checking of the length and width
  4. Plastic gets caught on protruding objects when transported to the designated area resulting to holes. -Implement 7S methodology in the finished goods warehouse and loading area.
  5. The thickness of the plastic did not pass the customer's standard. -Match tolerance levels for the quality checking of the thickness
  6. The temperature of the cutting machine does not reflect the setting it was placed on. -Automated the production process for the cutting machine

The proposed system was validated through the Vensim software and doing it in real-life. Toe implementation plan of this proposed system took 23 days in total. Moreover, implementing the proposed system will cost P48 I ,435.72 which was solved by applying the Cost Benefit Analysis. The total benefit will amount to Pl,255,903.68 and the net benefit will amount to P774,467.96.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU23256

Shelf Location

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

Keywords

Plastics industry and trade—Production control; Plastics in packaging

Embargo Period

2-20-2023

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