Reduction of evap lines rejects in the liquid milk plant of Alaska Milk Corporation in San Pedro, Laguna

Date

4-2011

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Aurelio A. Delos Reyes, Jr.

Committee Member

Mark Anthony M. Baldoz, Romark O. Cayube

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Abstract

Alaska Milk Corporation(AMC) is located at Magsaysay Road, Dan Antonio, Sa Pedro , Laguna. It manufactures liquid canned milk, powdered milk, and UHT ready-to-drink milk products.Products are produced by different plants namely Liquids Milk Plant (LMP), Milk Powder PLant (MPP), and UHT (Ultra High Treatment) Plant. The company initially manufactured liquid canned milk and ready-to-drink milk in the 1970s, but later expanded to powdered filled milk in the 1980s. The main product of AMC is the liquid canned milk which is divided to two categories-Evaporated (Evap) and Sweetened Condensed Milk (SCM).Evap rejects are classified into three, which are Class A, B, and D. Class A rejects have defective label or code while Class B rejects are dented cans. On the other hand, Class D rejects are bloated cans. Class A rejects acquired the highest contribution and highest cost. It was found out that the rejects in the Evap lines under Class A amounted to 5,949,456 milk cans which accounted for 7.49% of the total inspected units. About 88% of the rejects are accounted to off centered labels, loose label, fainted code, and no code. Causes of the large amount of rejects under Class A were identified using Ishikawa Diagram and CNX Analysis. Recommendations made for controllable factors include: retraining of employees, and strict implementation of rules and regulation. For experimental factors, recommendations are: buy new machines, implement preventive maintenance, install audio signals to date coders, and hire new inspectors. Implementation of these requires an investment cost of PhP1,432,415 but will have an annual savings worth PhP 3,255,645 with a Net Present Value (NPV) of 5,340,028 at 12% interest rate.

Language

English

LC Subject

Production progress

Location

UPLB College of Engineering and Agro-Industrial Technology (CEAT)

Call Number

LG 993.5 2011 E66 B38

Document Type

Thesis

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