Cost reduction through standardization of work procedures using methods engineering at the steel pallets repair section of the warehouse and distribution sub-group of AGC Flat Glass Phils., Inc., Pasig City, Philippines

Date

12-2015

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Kathleen B. Lee

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 was conducted for the purpose of reducing the cost generated from repairing steel pallets at AGC Flat Glass Phils., Inc. in order to meet the monthly demands of the company. AGPH determined that this activity accounts for almost Php 3.28 million worth of losses annually. It has been observed that this large amount of loss was due to the high percentage of steel pallets that needed to be repaired against the amount returned. An average of 59% of the returned steel pallets from the customers accounts for the amount of damaged pallets that needed to be repaired against the amount returned. An average of 59% of the returned steel pallets from the customer accounts for the amount of damaged pallets that are repaired per month. Such high volume of damaged steel pallets was caused by the improper execution of the internal monitoring system within AGPH, the inconsistency in the strength of adhesive used for rubber attachment, the lack of external monitoring policy and the lack of standardized work procedures. Through time study, the capacity of the system was determined. It was found that an average of 36 steel pallets can be repaired by the system per day. This allowed for manpower to be evaluated. Currently, the steel pallets repair section employs a total of 8 contractual workers from 9R Manpower Services, Inc. To be able to achieve the average daily capacity of 36 pallets, there must be 9 workers in the section, which comprises of 1 lead man, 1 forklift operator, 1 rubber man, 2 lumber men and 3 welders. Aside from the 8 employees that work during the regular working hours of 8 AM to 5 PM, a steel pallet inspector shall be assigned whose shift is from 6 PM to 2 AM in order to examine the steel pallets that arrive at the plant beyond the regular working hours. It was also observed through time study that there were similar work elements which make up the various activities performed in the steel pallets repair section. Therbligs was conducted in order to standardize the work procedures in conducting repairs in steel pallets. It was also observed that the inconsistency in strength of the adhesive must be addressed in order to reduce the volume of repairs conducted per steel pallet since rubber replacement contributed the highest amount of repairs performed. Evaluation of the adhesive used was conducted and a comparison between epoxy and rubber cement was done. A proper curing method was established for rubber cement, the adhesive preferred attaching rubber to the wood. Results showed that the adhesive must be treated first for 15 minutes upon applying to the rubber in order to effectively strengthen the adhesive. As a control for this solultion, the use of timer was proposed to minimize human error and discrepancies between waiting times. Lastly, in order to address the lack of external monitoring policy, the renting of steel pallets upon ordering float glass was proposed. The amount of rent to be paid per pallet is obtained by computing the average monthly cost of repairing per pallet this is equivalent to Php 270.00 per pallet. The overall savings that could be obtained for implementing such actions for both controllable and experimental factos is Php 1,606,943.82 per year, which is a 49% reduction in the total cost generated from repairing steel pallets. Implementation strategies for the proposed alternatives were discussed in the recommendations section of this paper.

Language

English

Location

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

Call Number

LG 993 2015 E66 /Y53

Document Type

Thesis

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