Date
4-2010
Degree
Bachelor of Science in Industrial Engineering
College
College of Engineering and Agro-Industrial Technology (CEAT)
Adviser/Committee Chair
Kathleen B. Lee
Committee Member
Mikel Angelo B. Yap, Arvin Joseph M. Elauria
Abstract
Ocean Tankers Corporation is Seaoil Philippines Inc.'s logistics shipping arm. it is responsible for the importation of petroleum products from foreign countries as well as the distribution of these petroleum products to the different SPI depots around the Philippines. Aside from servicing its sister company. OTC also attends to the chartering needs of other customers. Of the company's SPI-chartered tanker voyages in 2008, 65.9% were tagged late. Lateness in voyager entails costs for SPI in the long run as loss of sales result from delayed replenishment of petroleum product supply in the SPI depots. With this, management sets a an intangible penalty cost of PhP35,644.60 per day late in its voyages. The potential root causes of the problem were identified. CNX analysis was then conducted where the root causes where classified into constant, noise and experimental factors. Control were proposed for the identified constant factors. Alternatives addressing the experimental factors were then generated. These alternatives include the adjustment of average tanker speeds which is the main basis for lead time setting, the dispatching of vessels using different priority rules, and the procurement of an additional vessel to increase service capacity. The alternatives were evaluated using constructed automated spreadsheet models of the voyage scenarios in a progressing time frame. The adjustment of average tanker speeds would contribute to a reduction from 65.9% to only 55% voyage lateness and a realization of PhP8,036,062.29 savings. The generated priority rules set 1 in dispatching vessels, which is generally based on the first-comer first-served rule, would impact a reduction of 7.94% in voyage lateness and an increase in annual profit by PhP56,270.Furthermore, the study proved that an additional vessel will be disadvantageous for the company in the long run.
Language
English
LC Subject
Productivity progress.
Location
UPLB College of Engineering and Agro-Industrial Technology (CEAT)
Call Number
LG 993.5 2010 E66 A73
Recommended Citation
Araneta, Melzar Cua, "Lateness reduction in the S.P.I.- chartered tanker yoyages at Ocean Tanker's Corporation Claro Castañeda Street, Barangay Namayan, Mandaluyong City." (2010). Undergraduate Theses. 922.
https://www.ukdr.uplb.edu.ph/etd-undergrad/922
Document Type
Thesis