A system study on the fabrication business of Excelsior Sevenfold Trade Corporation

Date of Publication

2016

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

Willy F. Zalatar

Defense Panel Chair

Eppie E. Clark

Defense Panel Member

Charlle Sy

Abstract/Summary

Excelsior Sevenfold Trade Corporation (ESTC) is a trading and fabrication company located at 22 Datsun St. Fairview Park, Quezon City. The focus of this study would be on the fabrication business of ESTC particularly the fabrication of their bellow products. There are five types of bellows being fabricated in ESTC namely: the telescopic bellow, flexible bellows, rubber bellow, split-type bellow and retractable spout bellow. These bellows are used as pathways for hot air to pass through which can be very useful for energy plants, cement plants, geothermal plants, and other companies that handles materials or products under extreme temperatures. Below specifications vary from one client to the other. ESTC aims to be able to deliver these custom made bellows to their clients, as well as provide good working conditions for their employees. This is to ensure that both internal and external customers of the company are satisfied with their products and services.

The study period lasted for a year, the data taken form the company are dated form January 2014 to December 2014 and the observations are made from August 2015 to August 2016. Through the course of the study, the researchers have observed and analyzed the present system of ESTC using the industrial engineering tools and methodologies such as the following: 4M partitioning (man, machine, material, and method), SWOT analysis (strength, weakness, opportunity, and threat), and WOT-SURG matrix (weakness, opportunity, and threat seriousness, urgency, resource, and growth) to determine the problems being faced by the company may it be internal or external to the company that hinders them from achieving their objectives. The objectives of ESTC are the following: to be able to reach their production quota of Php5,000,000 worth of sold bellows, to reduce warranty claims, to eliminate rejects, and to deliver their finished products 3 days, prior the due date set by the company.

After the analysis of the present system, the researchers have found that the main problem being faced by ESTC is that: ESTC has experienced a reject rate of 2.32% from January 2014 to December 2014 that is costing the company a total of Php846,539.74 inclusive of material, labor, and overhead costs. The rejects are identified to be the following: incorrect materials used for fabrication, incorrect dimensions of the bellow for fabrication, and the bellows fabricated are unaligned.

Upon performing initial and final cause validation, the group found out that the main causes of the rejects are as follows: the assignment of tasks are done verbally leading to miscommunication and confusion between the warehouse personnel as well as the fabrication personnel which leads to incorrect materials being used for fabrication, the contractual employees commit mistakes on the translation and attaching of the frames which leads to either incorrect measurement of the bellows or misalignment miscommunication between the fabrication employees regarding the specifications of the bellows which leads to incorrect measurement of the bellows and, cluttered warehouse system which leads to incorrect materials being sent to fabrication.

In order to address these causes, the group came up with the following solutions: providing a new warehouse layout and design, assignment task form and signaling system, standardized project form, regular employees being assigned to the cutting of frames, and an activity sheet and a quality inspector. After performing the cost benefit analysis, the researchers have found that the savings from the solutions to be implemented outweigh the costs and they are deemed to be feasible.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17387

Shelf Location

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

Physical Description

269 leaves : illustrations (some color) ; 29 cm.

Keywords

Production engineering; Manufacturing processes; Excelsior Sevenfold Trade Corporation

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