Date of Publication

11-2006

Document Type

Master's Thesis

Degree Name

Master of Engineering major in Industrial Engineering

Subject Categories

Industrial Engineering

College

Gokongwei College of Engineering

Department/Unit

Industrial and Systems Engineering

Thesis Adviser

Jose Edgar S. Mutuc

Defense Panel Chair

Anna Bella D. Siriban-Manalang

Defense Panel Member

Alma Maria Jennifer A. Gutierrez
Debbie Ann P. Nacu

Abstract/Summary

Lux Manufacturing Corporation, founded in 1980, is a manufacturer of household water purifiers. It exclusively supplies water purifiers and filters to the different Lux companies in the Asia Pacific Region. The company is aiming for future expansion in the succeeding years. This expected higher production output imposes a need for the company to prepare itself for a change in manufacturing requirements. To prepare itself, the company should, first and foremost, be able to achieve its present objectives. This led the proponent to study the present operations and production set- up of the company.

Data on the present system was collected and analyzed. The manpower, raw materials, equipment, information, methods and their relationships were evaluated using the SWOT analysis. Through the SURG Analysis, prioritization of problems was made. The problem identified by the proponent to be the most significant is the occurrence of production downtime equivalent to an average monthly production performance of 75%. This production performance resulted to an excess labor cost of PhP 1,911,968.

To ensure that the data gathered and the evaluation that followed is sufficient, accurate and relevant, Industrial Engineering tools and techniques were used. After identification and validation of the possible causes of the problem, several factors were identified to be the causes of the problem, namely: materials not meeting specifications, late delivery of materials, worker absenteeism and careless workmanship of workers. Several solutions to address the identified causes of the problems were generated. Using the Kepner-Tregoe Decision analysis, the following solutions were proposed: Implementation of an Acceptance Sampling Program, Joint Problem Solving, Supplier Performance Evaluation, Implementation of Stricter Ground Rules on Absenteeism and Performance Monitoring System.

The proposed system was tested for six months. Relevant data was validated and these showed positive results. Material Rejection Rate was low, deliveries have improved, there was a decrease in the mis-operation rate and absenteeism has been reduced. Because all the causes of the problem were addressed, this eventually had a positive effect on production performance which improved by 14%. Savings due to the improved performance is estimated to be PhP 381,380.76 for the first 6 months of implementation.

Abstract Format

html

Language

English

Format

Electronic

Accession Number

CDTG004189

Shelf Location

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

Physical Description

xii, 239 leaves, 28 cm.

Keywords

Operations research

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2-15-2022

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