Improvement of indirect materials purchasing through reduction of non-value adding activities in Baxter Healthcare Philippines Inc.

Date

4-2014

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Haerold Dean Z. Layaoen

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

Baxter Healthcare Philippines Inc. (BHPI) is a multi-national pharmaceutical company specializing in therapeutics and health products. Problem identified was the delayed processing of purchase requests (PR) and purchase orders(PO) due to the presence of non-value adding activities in the Indirect Materials Purchasing. The focus of the study is on repetitively ordered items. From May 2012 to April 2013, 71.39% or 1,850 items were not delivered on-time which resulted to a total of Php.3,088,161.28 profit loss incurred by the company. Solutions derived were the application of item coding system and name catalog training of the requestors on indirect materials [purchasing and the use of Baxworkflow: use standardized quotation form modification of the forms and databases of Baxworkflow enriching the job of the purchasing clerk and implementation of annual procurement plan(APP) using Fixed-Order Quantity (EOQ) inventory system. These solutions were directed towards the elimination of increased processing time of PR and PO due to non-value adding activities particularly waiting times before a PR and PO is processed. It was determined that upon implementation of the alternative solutions to the problem,BHPI will be able to eliminate late arrivals of repetitively ordered items. This is equivalent to reduction to O opportunity cost.

Language

English

Location

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

Call Number

LG 993 2014 E66 /E53

Document Type

Thesis

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