Reduction of spillage for the bagging and palletizing unit at NPC Alliance Corporation Mariveles, Bataan

Date

2011

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Kathleen B. Lee

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Abstract

NPC Alliance was established in 2005 as a joint venture of National Petrochemical Corporation of Iran and Metro Alliance Corporation. The plant facility is based in Mariveles, Bataan. It produces high density and low linear density polyethylene pellets. The study was conducted in the Operations Department’s Bagging and Palletizing Unit that is involved with bagging of PE pellets and palletizing them for storage. Through investigation and analysis, it was found out that spillage is the major problem in the area. Spillage causes the polyethylene pellets to be downgraded, resulting to a lesser price, thus decreasing the profit. It is the goal of this study to reduce spillage from 10,815 kilograms to at most 494 kilograms based on six sigma goal setting. Spillage is primarily caused by either by low temperature setting, high temperature setting, no current due to a defective welding strip, worn-out Teflon, or the fluctuation of heating voltage control. The Cause-and-Effect Diagram was used to systematize the problem solving methodology and to get the root causes of the problem. There were two root causes found, namely “there is no standard setting for temperature input” and “the current practice is Breakdown Maintenance”. With CNX Analysis, the two root causes are found to be both experimental factors. Solutions and controls were generated to solve each root causes. For the root cause “there is no standard setting for temperature input”, a standard setting of 144°C was suggested to be followed by the workers. It was also suggested to post a note indicating the appropriate value to input at the control panel cabinet where the temperature input is set. There is no additional cost for implementing this solution. The projected improvement that can be attained from this solution is 24.235% reduction in spillage. For the root cause “the current practice is Breakdown Maintenance”, it was suggested to change this practice to Preventive Maintenance so as to prevent spillage. The replacement point was found using the formula of Tolerance Interval Estimate where a 95% limit was considered. Then three alternatives were generated to keep track of the production, namely, tally board, kanban, and automated counter system. The automated counter system was chosen by using the Factor Rating Method, considering cost, ease of implementation and sustainability of the system. The total cost of this solution is Php 21,000.00. If the solutions were to be implemented, it would reduce the spillage from 10815 kilograms to 409.67 kilograms. The total earnings that can be recovered is PHP 395,213.00 for the year.

Language

English

LC Subject

Industry analysis

Location

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

Call Number

LG 993 2011 E66 B84

Document Type

Thesis

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