Date

4-2010

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Romark O. Cayube

Committee Member

Kathleen B. Lee, Arvin Joseph M. Elauria

Abstract

Maharlika Farms Multi-Purpose Cooperative is a cooperative engaged in the production and sales of rice. It is composed of farmers and agricultural workers who collaborate to improve farming and rice processing methods. The cooperative is involved in the financing of agricultural inputs used by the farmers during land preparation and the planting season. Maharlika Farms provides the post-harvest facility for the processing and sales of white rice. The main problem of Maharlika Farms is the low palay yield in its post-harvest operation. The target yield after drying of palay is 97% but the actual yield for 2008 is only 95.13%. The rest of the 4.87% of the palay are considered as grain losses. These grains can no longer be milled and sold as white rice. The total grain losses for 2008 amounted to 112,174 kg of palay. This is equivalent to 67,300 of white rice or PhP1,884,000 lost income. The primary contributors of grain losses are spoiled and infested palay. Spoiled palay accounted for 51.2% of the losses while infested accounted for 37.2% of the losses. Using the Streamline Diagnostic Diagram, the root causes of the problem were identified and grouped into Man, Machine Method, Material and Environment. The root causes were further classified as Controllable, Noise and Experimental factor. Corrective and preventive actions were recommended to address the controllable causes of the problem. For the Experimental factor, alternative solutions were generated. Noise factors were not examined in this study. The Experimental factor and the main root cause of the problem is the Low drying capacity during the harvest season. The three alternatives solutions generated to eliminate the root cause are the following:(A) Outsource drying during periods with high volume of palay purchases (B) Purchase a new mechanical dryer and (C) Construct a new solar drying facility. These alternative solutions were evaluated against different criteria. These are Reduction in grain losses, Annual cost of implementing the solution, Duration of the pre-implementation period, and the Cost of maintenance. Using the factor-rating method, it was determined that the best solution is Alternative B, Purchase a new mechanical dryer. For the implementation of Alternative B, Maharlika Farms will incur an initial investment cost of PhP 1,540, 000 and the annual operating costs of PhP98,257. This solution will result to 3.05% increase in the palay yield (from 95.13% to 98.18%) and total annual benefits equivalent to PhP1,279,416.

Language

English

Document Type

Thesis

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