Reduction of overtime for the Black and Decker Section at CEVA Logistics Philippines, Parañaque Warehouse 2, Pascor Drive, Parañaque City.

Date

2010

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Abstract

Ceva Logistics is a company founded from the merger of EagleUSA Airfreight and TNT Logistics.It is within the industry classification of a third party logistics specializing in both freight management and contract logistics, and operates in 156 countries all over the globe including the Philippines. Its main office is at Pascor Drive, corner Johann Street, Bo. Ibayo Sto. Niño, Paranaque City. This study was conducted at one of the many satellite warehouses of the company in the Philippines, specifically the satellite warehouse of the Paranaque branch, where the focus was the Black & Decker section. Black & Decker is the most recently added client in the warehouse, covering 512 square meters of area in the first floor of the warehouse. The problem with the saids account is the amount of time required top fulfill orders, incurring excessive overtime for the three warehousemen of an average formula for computing the Goal, the objective of this study is to reduce the total overtime by at least an average of 53 hours per week, unexpectedly coinciding with the average overtime hours per week. This will save the company Php 172,162.00 per year only accounting for the three dedicated warehousemen of Black & Decker. To be able to reach this goal, data was gathered through interviews, observations, and existing records from the company. The gathered data was used to document them material and information flow through a value stream map. After which, brainstorming was done leading to the construction of the Ishikawa diagram where the root causes were identified. Forty-four percent of the root causes were identified as noise, 33% were identified as experimental, while 22% were identified as controllable. The experimental root causes were then grouped into two, because the solutions of the alternatives were similar. For the first group of root causes-the lack of employees-the alternative solutions generated were the reassignment of the warehousemen of Black & Decker and Other Accounts (Alternative A), creating a single labor pool for both account (Alternative B), and finally, hiring new warehousemen (Alternative C). Of the three, the highest rated using factor rating method was Alternative B. The criteria used were the cost of implementation, ease of implementation, and the average number of overtime hours reduced. For the second group of root causes-unmanaged material flow, and undefined warehouse zoning-the alternative solutions generated were the use of drum-butter-rope idea (Alternative A), assigning floor markings (Alternative B), and creating definite batch sizes (Alternative C). The highest rated alternative in this group was also Alternative B. The criteria used for this group were the cost of implementation, ease of implementation, efficiency, and sustainability. Implementing the highest rated alternatives would cost the Php172,162.00 for the accounted overtime of the three warehousemen. However,because of the overtime is shared even to warehousemen dedicated to other sections in the warehouse, the figure on the benefits is the minimum expected savings.

Language

English

LC Subject

Industry analysis.

Location

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

Call Number

LG 993.5 2010 E66 C38

Document Type

Thesis

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