A system study on the refilling plant of Isla Petroleum & Gas Corporation

Added Title

System study on the refilling plant of Isla Petroleum and Gas Corporation;"System study on the refilling plant of Isla Liquid Petroleum Gas Corporation"

Date of Publication

2015

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Industrial Management Engineering Minor in Information Technology

College

Gokongwei College of Engineering

Department/Unit

Industrial and Systems Engineering

Thesis Adviser

Richard C. Li

Defense Panel Chair

Eppie E. Clark

Defense Panel Member

Eric A. Siy

Abstract/Summary

Isla Solane is one of the LPG brands in the Philippines. Isla Solane houses 10 refilling plants in the Philippines, and boasts of a nationwide distribution system consisting of more than 50 distributors and approximately 10,000 points of sale located in various parts of the Philippines. A study was conducted in one of the refilling plants of Solane located in Canlubang, Laguna. The study listed the specific objectives of the plant which are the following: to fill 160 metric tons worth of LG per day, to meet daily demand of the customers assigned to Canlubang plant, to have at most 5% lost time due to absences during work hours, to reduce overtime to 0, to maintain a supply of cylinders with a 3-day buffer, to have a zero overfill and underfill cylinders, to have a truck turnaround time that is less than 80 minutes, to minimize leaking cylinders to 0.3% to keep LSV to ≠0.2%, and to meet the target production of 111,072 11 kg cylinders. Through the use of SWOT and WOT-SURG, we identified the main problem to be the production of the plant not reaching the set target, and incurring overtime cost of Php1,280,959.

After the problem has been identified in the study, a cause and effect diagram was formulated in order to determine the causes of the problem. After going through validation of causes, it was stated that the machines were contributing to the losses of the plant. The process also had a lot of non-value adding steps which could be improved upon. These 2 causes were made the focus of the solution. Data were gathered on the machine breakdown and downtimes through a form that was implemented by the group. Through this form, we were able to pinpoint what types of breakdowns the machines were going through. Also, we could identify how long the machine downtime was for each breakdown. A why-why diagram was made to further investigate the causes of machine breakdown. It was discovered that the plant lack a maintenance program for the machines. There were also delays in the movement of information between the plant, third party supplier, and the head office. The proposed solution for this cause would target these concerns.

The process of refilling was evaluated using a value stream map. Through the VSM, it was seen that the process had several repititive transfers. The repititive transfers are not value-adding, so a solution was generated to reduce the repetitive transfers. Another observation is the large amount of inventory that was on-hold and in queue. A proposed VSM was made into a solution with recommendations in order to quickly improve the process.

A set of solutions were proposed for each root cause identified in the problem analysis. A reliability-centered maintenance program was proposed for the company. This solution targeted to improve the understanding of the plant on how their refilling machine works. More importantly, it would provide the plant with a set of scheduled preventive tasks that should increase the reliability of their machines. A continuous review model with EOQ, safety stock and reorder point was made for company use. A set of forms were made and a systematic methodology on how to implement it properly. This aimed to reduce the part unavailability the plant was struggling with. Lastly, conveyor maintenance and kaizen burst solutions were recommended for the VSM, to decrease the amount of non-value adding time in the process.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17261

Shelf Location

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

Physical Description

260, [9] leaves : illustrations (some color) ; 28 cm.

Keywords

System analysis; Systems engineering; ISLA Petroleum & Gas Corporation

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