Raw material inventory reduction at the inertial sensor cluster of Continental Temic Electronics Phils., Inc.LISPII, Calamba Laguna

Date

2011

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Marc Immanuel G. Isip

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Abstract

Continentl Temic Electronics Philippines Incorporated (CTEPI) is a manufacturing arm of Continental Corporation in the Philippines. Continental Corporation is a manufacturing company that produces automotive products. CTEPU has two plants: Plant Calamba and Plant Manila. This study was conducted in CTEPI's Calamba Plant located in Light Industry Science Park II, Calamba, Laguna from July to September 2011. The said plant manufacturers Continental Corporation's products under the chassis and safety Division and Powertrain Division. This study focused on reducing the raw materials that were kept in the Surface Mount Device (SMD) Mini-Market and warehouse and were used in producing the company's main product, inertial sensors. Material Handlers withdrew SMDs without limit, and coupled with not using FIFO techniques, the SMD Mimi-MArket had covered a large area in the production plant.This area could have been used to hold machines that give value-adding processes. Worse, SMDs expire prior to use. This meant one thing: the company had been keeping excessive raw materials in the SMD Mini-Market and Warehouse. Because of this, the management wanted materials in the SMD Mini-Market and warehouse.This study's aim was in accordance to that goal and since CTEP believes in incremental improvements, the study aims to reduce the floor space area by 20% and hopefully will be implemented by the management by the end o f2011. Through the use of an Ishikawa Diagram, the root causes for this inventory problem had been identified: lack of inventory control, non-existence of classifacation of raw materials according to frequency of use, storage racks not being designed for First-In-First-Out technique., and the material Handler's laziness to move items from the rack to withdraw older items. Using the ABC-XYZ Analysis, the items had been classified not only according to the frequency of use, but also the stability of demand. Together with the Yellow Belt Six Sigma team of CTEPI, three alternatives to address these problems were designed for the common items.First was to use Kanban in the current racks, second was to buy SMD Tower that sorts and stores the SMD reels following the FOFO technique on its own, The third was to use a two-bin replenishment system. These alternatives were compared based on their respective estimated savings. Results suggest that the company would benefit most by practicing a two-bin replenishment system in the current racks. By doing this, the company would have additional expenses of PHP8093.33 a year, but can benefit from the project by an amount of PHP3,848,625.35 annually, and the floor space area of the SMD Mini-MArket can be reduced by 51.67% from a floor space area 0f 19.5 sq, meters to 9.425 sq. meters,6

Language

English

LC Subject

Inventory control--Cost effectiveness--Decision making, Inventory control--Data processing

Location

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

Call Number

LG 993 2011 E66 G87

Document Type

Thesis

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