Production planning improvement and reduction of delivery delays of Tubotech Plumbing Products Philippines Corporation in Biñan, Laguna

Date

2011

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Lizbeth M. Mariano

Request Access

To request access of this material, please email the administrator at uscs-mainlib.uplb@up.edu.ph

Abstract

The study was conducted at Tubotech Plumbing Products Philippines Corporation, a branch of Tubotech Australia, located in Laguna International Industrial Park at Binan, Laguna. Tubotech PPPC functions as the manufacturing branch of the mother company in Australia. Tubotech Australia manages orders from the customer, Con-Serv Corporation, then sends these orders to the Philippines for production. The company starts production once orders arrive. Data from January to December 2010 showed that there was high delivery delay of 35%. In 2010, the company sent 4,657.14 kg through airfreight which costs AUD 25,274.31, and 49,389.33 kg through sea cargo for AUD 21,177.61. The cost of delay or additional cost of delivering goods through airfreight rather than sea cargo sums to AUD 23,277.38 per year. Unless delays are reduced and service levels are improved, the customer may decide to go to another supplier with better service offering. This study aimed to improve the production planning effectiveness and on-time delivery ratio of Tubotech. The problem was analyzed through various Industrial Engineering tools. Using the Pareto concept, the focus of the study was identified as Clamp Flange and Hygienic Seal model. Using Ishikawa diagram and CNX analysis, the controllable and experimental factors identified were the lack of forecast provided to the company and poor production strategy. After computation, evaluation and analysis, the appropriate forecasting technique was determined for the two models. Three alternatives were formulated to replace the current production strategy of Tubotech: Chase, Level, and Mixed Strategy. The three alternatives were evaluated using factor rating using total cost, ease of implementation, and effectiveness as criteria. Cost-Benefit analysis was also performed to determine if the company will reduce cash outflow from implementing the proposed alternatives. The service level was evaluated and the best level to operate was at 78%. Results from Chase (1) strategy were further calibrated on the calculated 78% service level. Tubotech PPPC will save up to AUD 3,933.71 (PHP 180,950.74) per year using Chase (1) Strategy for Clamp Flange and Hygienic Seal. The proposed strategies reduced delivery delays and resulted to high on-time delivery ratio of up to 100%.

Language

English

LC Subject

Forecasting--Statistical methods, Production management--Case studies

Location

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

Call Number

LG 993 2011 E66 G74

Document Type

Thesis

This document is currently not available here.

Share

COinS