A system study on the Production Department of FCO International Inc.

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Industrial Engineering

Subject Categories

Operations Research, Systems Engineering and Industrial Engineering


Gokongwei College of Engineering


Industrial Engineering

Thesis Adviser

Jose Edgar Mutuc

Defense Panel Chair

Rosemary Seva

Defense Panel Member

Alma Maria Jennifer A. Gutierrez


FCO International Inc., established in 2017, is a subsidiary of Fangs Bag Mfg. Ltd., Co. located in Cebu, Philippines that specializes in manufacturing small to medium sized handbags and backpacks. The company produces products which their parent company assigns to them and are required to meet a monthly demand. The study focuses on the production department of the company, particularly on its four production lines which all produce the same products. The pertinent data used in this study is from January 2019 to June 2019. After applying SWOT analysis, it was determined that the company only fulfills 97.238% of its order requirements, incurring a penalty cost of P 2,452,950.00 for the period of the study. To address the problem, a why-why diagram was used to identify its possible causes. Each of these cases were then validated individually through pertinent data, our time study, and relevant computations. The root causes determined to be causing the problem is the wasted time in passing products between groups in the production line, the long repair time of machines, and the idle time in waiting for the supervisor's assistance. The solutions generated for these problems is, in respective order, to change the layout of the production lines, conduct preventive maintenance every month instead of the original plan, and apply the use of color­ coded flags to notify the supervisor of the type of assistance required. A cost-benefit analysis was conducted for the proposed solutions and the total net benefit for implementing these solutions is Php 5,232,943.05.

Abstract Format






Accession Number


Shelf Location

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


Production control; Bags

Embargo Period


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