A system study on the order to delivery process of Ecolab Philippines, Inc.

Date of Publication

2017

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Industrial Engineering

College

Gokongwei College of Engineering

Department/Unit

Industrial and Systems Engineering

Thesis Adviser

Dennis T. Beng Hui

Defense Panel Chair

Bryan O. Gobaco

Defense Panel Member

Eric A. Siy

Abstract/Summary

A system study was conducted on Ecolab Philippines, Inc., a company which provides sanitizing and cleaning products to other companies in different sectors such as food and beverage, hospitality, healthcare, government and education, retail, textile care and commercial facilities management. The study focuses on the order to delivery processes of the company, located at the corporate office in Bonifacio Global City in Taguig and in the Biñan Plant in Laguna from December 2015 to June 2016. Based on the company's goals and targets, the strengths, weaknesses, opportunities and threats of the specified system were identified. After evaluating the present system, a WOTH-SURG situation appraisal was performed to determine the systems most critical problem. From this, it was identified that Ecolab Philippines most critical problem is that their DIFOT (delivered in full and on-time) key performance indicator has a deviation of 7.6% from the 92% target, which results to a lost profit amounting to Php75,417.20 early.

To analyze the problem further, the orders which did not meet the DIFOT were dissected to identify which aspect of the KPI does not meet the standards the most. Upon the dissection of the orders which does not satisfy the key performance measurement, it was found that the problem with regards the DIFOT KPI came mostly from the lateness aspect. Given this, a root cause analysis was conducted and it was found that the settlement of the avoidable blocks, particularly the settlement of the account credit block, causes the lateness of the order deliveries. On order to address the issue, multiple alternatives were generated and evaluated based on a set of criteria. The proposed solution is a combination of alternatives aim to solve the root cause of the problem. The proposed system includes monitoring of accounts and issuing of constant invoice reminders to customers for them to as earlier to avoid the order transaction block. Another part of the proposed solution is to implement the overdue accounts having the same goal as the earlier mentioned part of the solution which is to eliminate the blocks that causes the order delivery to become late. Since it was assumed that there would still be a small percentage of customers that would not pay on time regardless of the constant reminder and the implementation of the overdue account policy, the lean principle would be applied to the settlement of the account credit block in order to assure that the order delivery would still be on-time despite of the occurrence of the block. The proposed system would not acquire any cost since only reassignment and addition of functions and introduction of certain policies would be done. On the other hand, the company would acquire a total Php672,366.31 annual additional benefit from the proposed solution. Following the implementation plan, the proposed solutions can be fully implemented within 12 weeks or 3 months.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17399

Shelf Location

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

Physical Description

xii, 236 leaves : illustrations (some color) ; 29 cm.

Keywords

Industrial engineering); Ecolab Philippines, Inc

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