Minimizing delivery backlogs by improving the efficiency of the warehouse dispatch process in Company XYZ, Sta. Rosa, Laguna, Philippines

Date

6-2015

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Lizbeth A. Mariano

Restrictions

Restricted: Not available to the general public. Access is available only after consultation with author/thesis adviser and only to those bound by the confidentiality agreement.

Abstract

This practicum study manuscript presents how delivery backlogs incurred by Company XYZ, a food manufacturing company, are minimized by performing an efficiency analysis on its warehouse dispatch operations. Based on company's historical data, it was discovered that delivery backlogs have been consistently incurred by Company XYZ, with a total of 1639 delivery backlogs for the year 2013 equivalent to 2.06 million-peso cost due to penalty charges from customers. On-time deliveries are particularly essential to Company XYZ as they envision being the top market leader by gearing towards innovation and excellence in both product quality and customer service. However, study results show that the dispatch process is inefficient because of the incurred delivery backlogs given that their effective capacity is higher than the actual demand. The current efficiency is 42.40% by which this study aims to improve to at least 54.25%, as determined using the six-sigma goal computation. Time study is used to quantify the inefficiencies for each sub-process of the dispatch operations wherein loading of goods to trucks was identified to be the most time-consuming process. But with the root-cause analysis performed, it was determined that the main problem with backlogs is attributed to frequent downtime of loading docks due to truck unavailability. With these results, certain controls and solutions have been devised to deal with the root causes. Particularly, proposed solutions are development of a truck scheduling system based on Material Resource Planning (MRP), use of "zone picking" as standard manual picking procedure in Mezzanine, implementation controls for the trucks' loading volume capacity, and use of "Island-and-Around" layout as a standard pallet arrangement for inspection-ready pallets on docks. With this, the study has achieved its primary objective of minimizing delivery backlogs and its associated costs by establishing standards for the warehouse manual operations. The efficiency of the dispatch operations is likewise increased to 77% which is within the target level of this study.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

LG 993 2015 E66 /B34

Document Type

Thesis

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