A system study on the production Department of Grasco Industries, Incorporated

Date of Publication

1996

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Industrial Engineering

Subject Categories

Engineering

College

Gokongwei College of Engineering

Department/Unit

Industrial and Systems Engineering

Abstract/Summary

Customers always prefer dealing with business organizations that can deliver the right product, in the right way at the right time. This motivates manufacturing firms to make a move towards meeting customer expectations and satisfaction. Thus, it is a necessity to implement an efficient Capacity Requirements Planning and Production Scheduling policy since this is the lifeblood of plant operations. Adopting this policy will foster improvement and growth in the production operations of any manufacturing firm.GRASCO Industries, Incorporated is a company with such a potential for improvement. This is a firm primarily involved in the fabrication of propeller fans and blower wheels used in air conditioning units 59.55 of which account for their income generated in 1994.From an analysis made on their present system, it was determined that production delay with regard to the manufacture of fans and blowers is the most pressing problem. This can be proven by the incurrence of delayed quantities of these products: 60.98 of which account for the percentage of quantities delivered late for blowers and 43.15 for fans. The production delay due to poor scheduling has resulted to loss of customer goodwill, more capital being tied-up in work in process inventory, more labor and factory overhead cost amounting to P 5,736,103. This cost is more significant in comparison to the cost due to lack of machines that amounted to P 172,927.71 and cost due to scrap which amounted to P 859,089.This production delay is primarily a result of poor capacity requirements planning, layout and scheduling. This can be noted in the present system since the company does not have a method in determining its true capacity and thus, the maximum amount of orders that could be accepted and delivered on time cannot be determined. In order to determine their present capacity, the group made four computer programs using TURBO PASCAL 5.0.To resolve this problem concerning production delay, the group proposed the reengineering of the production process, the redesign the existing layout and the development of an algorithm on scheduling appropriate for job shops. The effects on other sections brought about by such improvements in the fans and blowers were also considered.With regard to the first alternative, three sub-alternatives were developed by the proponents of the group namely, a logical flow layout, one-unit basis layout and a seven-unit batch production layout. On the basis of maximization of capacity and minimization of material handling, worker allocations, idle time and balance delay, the seven-unit batch production layout was chosen. On the other hand, acquisition of a power saw, balancing machine and riveting machine was proposed on the basis of minimal cost and balance delay. Upon Kepner-Tregoe analysis, the power saw was selected because it best met the cost, back-up, usage and capacity criteria. The acquisition of power saw and the redesign of the existing plant layout using a seven unit batch production basis with stationed operations and feasible work force allocations were performed using the Assembly Line Balancing option of STORM. Implemented with these alternatives is the introduction of scheduling and capacity determination using the Eugene-Paul Algorithm. The Eugene-Paul Algorithm is a graphic simulation model for determining job shop capacity ideal for small volume production with lengthy cycle time. The algorithm does not neglect the effects of initialization and pre-completion period in determining job shop capacity. It stimulates work flow between stations logically and can also be used in determining the span of time it takes to manufacture a given job order. As for the model's limitations, it may or may not yield optimal results, it can only be applied if the condition of the model was satisfied, and it does not consider work in process inventory in the determination of capacity. The proposed system is designed to prevent the company from incurring production delay by reengineering its process. The new system is truly not a stop gap solution since it aims to prevent production delay by increasing its capacity, developing a more systematic and logical flow of materials, reducing idle time incurred by workers and machines and using an algorithm for scheduling job orders so as to determine whether to accept or reject an order. Comparing the proposed with the present system yielded the following results:* The daily capacity for fans and blowers will be increased by 16.67 and 84.21, respectively.* The weekly capacity for fans and blowers will be increased by 86.66 and 133, respectively since initialization (set-up) period is neglible.* The material handling time will be minimized by 91.9 for fans and 89.1 for blowers* The idle time of workers will be reduced by 98.8 for fans and 54.5 for blowers.* The balance delay for fans and blowers will be improved by 12.45 and 14.05, respectively. Based from the forecasted demand of fans and blowers, the company's job orders are expected to increase continuously in 1996. Therefore, the company should cope with the increasing demand of 41 in air-conditioning units and 67 in refrigeration units. This situation was not fully enjoyed by GRASCO because of their small volume capacity that has been affected simultaneously by production delay. The implementation phase of the project will only take 26 days and has an initial investment of P42,800. The Gantt and PERT-CPM Charts were made using MICROSOFT PROJECT. During the implementation of the proposed system, the production processes involved in fans and blowers manufacture will be stopped only for a week due to rearrangement of machines and employee training. From a Cost-Benefit analysis made on the proposed system, the annual realizable net benefit was computed to be P4,216,474.50 and the net present value was computed to be P19,872,510.41. In addition to this, the company will be able to establish long term relationships with its customers, maintain goodwill and attract potential buyers. Thus, the proposed system is feasible, practical and applicable.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU07280

Shelf Location

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

Physical Description

203 numb. leaves ; Computer print-out.

Keywords

System analysis; Production control; Scheduling (Management); Line of balance (Management); Air conditioning equipment industry

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