College of Engineering and Computer Sciences (CoECS) i

IMPROVEMENT OF INVENTORY PROCESS OF PLASTIC RESIN AT CHOEI

PLASTIC WORLD PHILIPPINES INC. USING VISUAL CONTROL
TECHNIQUES.

A Thesis presented to the

College of Engineering and Computer Studies
In partial fulfillment of the requirements for the degree
Bachelor of Science in Industrial Engineering

Delos Reyes, Jamaica D.

Manalo, Lyka M.
Manzanilla, Marvin M.

July 2017
 College of Engineering and Computer Sciences (CoECS) ii

APPROVAL SHEET

This research paper entitles IMPROVEMENT OF INVENTORY PROCESS OF

PLASTIC RESIC AT CHOEI PLASTIC WORLD PHILIPPINES INC. USING VISUAL

CONTROL TECHNIQUES prepared and submitted by Delos Reyes, Jamaica D.,

Manalo, Lyka M., and Manzanilla Marvin John M., in partial fulfillment of the

requirements for the degree of Bachelor of Science in Industrial Engineering has

been examined and is recommended for acceptance and approval for Oral Defense.

_____________________________
Engr. Ryan Jeffrey P. Curbano
Adviser

____________________________________________________________________
Approved by the Committee on Oral Examination

_____________________ _______________________
Engr. Althea Mendoza Engr. Melissa Carla Rebong
Member Member

______________________
Dr. Ricardo M. Bobadilla
Chairmans
______________________________________________________________

Accepted and approved in partial fulfillment of the requirements for the degree

of Bachelor of Science in Industrial Engineering.

__________________________

Engr. Ricky V. Bustamante

Dean, College of Engineering and Computer Studies

 College of Engineering and Computer Sciences (CoECS) iii

Abstract

Inventory management plays an important role in every company as any

ineffective inventory system will result in loss of customers and sales. The purpose

of this paper is to improve of inventory process of plastic resin at Choei Plastic

World Philippines Inc. using visual control techniques. Through the use of Fish

Bone Diagram, the main problem in the inventory was identified due to terminals

and delayed encoding in the system. Inventory Record Accuracy (IRA) was used

to determine the percent accuracy of the inventory process. The calculated

percentage accuracy was 61.90% which is not acceptable. Applying visual controls

in the warehouse is the plan to improve the inventory process.

 College of Engineering and Computer Sciences (CoECS) iv

ACKNOWLEDGEMENT

The researchers would like to express their deepest and sincerest gratitude to these

people who have helped, inspired and given their valuable assistance for the

fulfillment of this proposal.

• To their supportive research adviser, Engr. Ryan Jeffrey Curbano, who

patiently corrected their work. Thank you for the valuable information and

helpful comments to improve their study.

• To the factory manager, Mr. Jim Ho and production supervisor, Mr. Apolejo

Del Rio of Choei Plastic World Philippines Inc., who gave their guidance,

hospitality, attention, and never-ending support, and also for providing them

the asked data they need in completing this paper.

• To the parents of the researchers, who gave their encouragement, guidance

and financial support to make this research possible.

• To all their classmates and friends, to whom they have gained moral

confidence and making this study lighter to bear.

Above all, we would like to thank the Almighty God, for his blessing, love,

forgiveness, patience and most of all for his enlightenment. Thank you so much for

all the guidance, blessings, and overflowing love. We give you the highest worship

and praise for the glory of your name.

 College of Engineering and Computer Sciences (CoECS) v

Table of Contents

Title page ................................................................................................................ i

APPROVAL SHEET ............................................................................................... ii

ABSTRACT ........................................................................................................... iii

ACKNOWLEDGEMENT ........................................................................................ iv

LIST OF TABLES .................................................................................................viii

LIST OF FIGURES ................................................................................................. ix

CHAPTER 1 ............................................................................................................ 1

INTRODUCTION................................................................................................ 1

Review of Related Literature ............................................................................. 4

Conceptual Framework ................................................................................... 15

Figure 1.0 Research paradigm ........................................................................ 15

Objectives ........................................................................................................ 17

CHAPTER 2 ......................................................................................................... 18

METHODOLOGY ............................................................................................ 18

Research Design ............................................................................................. 18

Research Locale ............................................................................................. 19

Data Collection Tools/Research Instruments .................................................. 19

Participants of the Study ...................................................................................19

Data Gathering Procedure .............................................................................. 20

Data Analysis ................................................................................................... 21

 College of Engineering and Computer Sciences (CoECS) vi

Table 1.0 Typical Count Tolerances…………………………....…………..........22

CHAPTER 3 ......................................................................................................... 23

1. Process Flow of Inventory in the warehouse of Choei Plastic World

Philippines Inc. ……………………………………………………………….23

Figure 2.0 Incoming Flow of Inventory………............................................... 23

Figure 3.0 Outgoing Flow ofInventory........................................................... 25

Figure 4.0 Product Issuance Flow of Inventory............................................. 27

Table 2.0 Inventory Record, Calculated Quantity and Percent Difference of

CPWP ………………………………………………………………………………28

Table 3.0 ABC Analysis and Percent Tolerance ………………………………..30

2. Cause and Effect Analysis of Inaccurate Inventory Record at CPWP …..32

Figure 5.0 Cause and Effect Analysis of Inaccurate Inventory ……………….32

3. Proposed Visual Control Techniques for CPWP’s Inventory Process …...34

Figure 6.0 Inventory Tracking Board …………………………………………....34

Table 4.0 Inventory Tracking Board’s Information ………..…………………...34

Figure 7.0 Terminals Identification Tag .………………………………….…….36

Table 5.0 Terminal Identification Tag’s Information ……………......…………36

Figure 8.0 Signage ………………………….…………………………………….38

Table 6.0 Signage’s Information ……………….…………………………..……38

Figure 9.0 Floor Markings for Finished Goods Area …………………......…...40

Figure 10.0 Floor Markings for Raw Materials Area ….…………..….………..41

 College of Engineering and Computer Sciences (CoECS) vii

Figure 11.0 Floor Markings for Product Inspection Area……….............….….42

Figure 12.0 Floor Markings for Finished Goods Area ………………………….43

Figure 13.0 Floor Markings for Work in Progress Area ………………………..44

Table 7.0 Floor Markings’ Information …………………………..………………45

CHAPTER 4 ....................................................................................................... 48

Conclusion ..................................................................................................... 48

Recommendation .......................................................................................... 49

Appendices ……………………………………………………………………………..50

Bibliography ………………………………………………………………………….52
 College of Engineering and Computer Sciences (CoECS) viii

List of Tables

Table 1.0 Typical Count Tolerances………………...…………………………..........22

Table 2.0 Inventory Record, Calculated Quantity and Percent Difference of

CPWP …………………...……………………………………………….………………28

Table 3.0 ABC Analysis and Percent Tolerance ………..…………………………..30

Table 4.0 Inventory Tracking Board’s Information ……………..…………………...34

Table 5.0 Terminals Identification Tag’s Information …….…………………………36

Table 6.0 Signage’s Information …………….…………………….……………..……38

Table 7.0 Floor Markings’ Information ………………………..………………………45

 College of Engineering and Computer Sciences (CoECS) ix

List of Figures

Figure 1.0 Research paradigm ............................................................................. 15

Figure 2.0 Incoming Flow of Inventory………….................................................... 23

Figure 3.0 Outgoing Flow ofInventory................................................................... 25

Figure 4.0 Product Issuance Flow of Inventory..................................................... 27

Figure 5.0 Cause and Effect Analysis of Inaccurate Inventory …………………….32

Figure 6.0 Inventory Tracking Board …………………..………….....……………....34

Figure 7.0 Terminals Identification Tags ………………………………………….….36

Figure 8.0 Signage ………………………………………………………….………….38

Figure 9.0 Floor Markings for Finished Goods Area …………….……….….....…..40

Figure 10.0 Floor Markings for Raw Materials Area ……………….………………..41

Figure 11.0 Floor Markings for Product Inspection Area………....................….….42

Figure 12.0 Floor Markings for Finished Goods Area ………………………...…….43

Figure 13.0 Floor Markings for Work in Progress Area ……………………………..45

 College of Engineering and Computer Sciences (CoECS) 1

Chapter 1

INTRODUCTION

Inventory management plays an important role in every company as any

ineffective inventory system will result in loss of customers and sales. An effective

inventory management can generate more sales for the company which directly

affects the performance of the company. Therefore, it requires a systematic

inventory management which is managed by a group of employees who are

experts in this area. [1]

In accordance to the competitive global business environment, the goal of

all organization is a long-term survival. It is not that difficult to make a high-quality

product, but managing inventory effectively and efficiently is often a challenge to

some company. Inventory management is the practice overseeing and controlling

of the ordering, storage and use of components that a company uses in the

production of the items it sells. It is also the practice of overseeing and controlling

of quantities of finished products for sale. To have clear inventory management, a

company should not only focus on logistic management but also on sales and

purchase management. Inventory management and control is not only the

responsibility of the accounting department and the warehouse, but also the

responsibility of the entire organization.

Every organization has their own problems, restrictions, and difficulties.

Thus, company needs to apply several and constant study for improvements and
 College of Engineering and Computer Sciences (CoECS) 2

solutions to the problems. Some of companies throughout the world are trying to

improve their inventory process.

Choei Plastic World Philippines Inc. located at Building S2, Lot 20, Phase

1B, FPIP, Barangay Ulango, Tanauan City, is a plastic resin coloring company.

CPWPI has three processes in their warehouse the Incoming Flow, Outgoing Flow

and Product Issuance Flow Process. The company is using manual input in the

system for the in and out products. CPWP is using FIFO management and

monitoring the products by the use only of lot numbers in the warehouse.

After analyzing and observing the current situation of CPWP’s inventory

process the researchers distinguished that there is a problem regarding to the

mismatching of system and actual inventory record of CPWP. This problem was

considered by the researchers’ due to the terminals and delayed input to the

system. Terminals are the products that are less than 40 pieces but still stock in

the pallets. The warehouseman still counts the terminals as 40 pieces that can

cause an inaccurate inventory. The purpose of this paper is to solve the problem

regarding the mismatch of inventory record at CPWP. The researchers will use the

Visual Control for quick recognition of the information in the warehouse. The

purpose of visual control is to easily identify when something is out of standard,

meaning a quick look at the area should determine whether it is in standard or

anything out of standard is quickly identified. [2]

 College of Engineering and Computer Sciences (CoECS) 3

Also, Visual Control is designed to support the safety initiative and advertise

strategic business initiative in the company. Visual control technique is to achieve

the proper flow of products and balanced consumption and movement of inventory

and use of resources. Companies develop visual control technique to give

appropriate information to the employees working in the process. The “control” part

of visual control proposes that information is communicated in appropriate manner

to aid, signal, suggest or influence human behavior. [3] Visual control methods

help to bring latent problem to the warehouse. Visual control main tools and

methods are like the red tag strategy, signboard strategy, white line demarcators,

red line demarcators, alarm lamps, production management board, and standard

operation chart and error prevention. [4]

This will also give insights about visual control technique; how effective it is

in identifying non-value adding activities and how visual control together with some

essential IE tools can make an organization to stay in tune and continuously

improve in this competitive business world. Future researchers will also benefit as

it can be used as reference for their study.

 College of Engineering and Computer Sciences (CoECS) 4

REVIEW OF RELATED LITERATURE

Every company has their own inventory where each of the company

manages the inventory by various ways of management. However, the purpose of

the inventory is the same, where the inventory must always ready to be used and

the inventory cost must be low. [5] The company’s performance depends on many

variables; either depends on sales, marketing, reliable human resource, less

production cost, and successful inventory. [6]

Inventory is consisting of three main areas which are raw materials, work in

progress, and finished goods. The activities of inventory management involve are

classifying inventory requirements, setting goals, providing replenishment

techniques, resolving the inventory balances, and reporting inventory status. To

have clear inventory management, a company should focus on logistic

management. Inventory management is one of the most important business

processes in the operation of a manufacturing company and sits at the data level

where the daily business is organized. It concerned with the control of stocks in

the whole supply chain. [7] It can best be monitored and measured in the

warehouse. Includes finding out what must be monitored and measured; a closer

look at stock counting; discussing how information is gathered; asking what makes

a good warehouse management system and what the benefits are of

using inventory control and warehouse management together and looking at

working with limited systems. [8] Proper inventory management practices result in
 College of Engineering and Computer Sciences (CoECS) 5

lower inventory costs. It was further argued that it is appropriate to encourage

workers to adopt better inventory management practices because that would

enable them to achieve lower inventory cost per sales and higher inventory

turnover ratios. [9]

Inventory control problems have attracted researchers for many years.

Fundamentally, the problem is one of matching supply and demand by efficiently

coordinating the production and the distribution of goods. Recent developments in

information technology have equipped managers with the means to obtain better

and timely information regarding, for example, demand, lead times, available

assets and capacity. Technology has also enabled customers to obtain vast

amounts of information about a product, such as its physical attributes and

availability. In today’s increasingly competitive marketplace, consumers are

constantly pressuring suppliers to simultaneously reduce costs and lead times and

increase the quality of their products. Good inventory management is no longer a

competitive advantage. It is an essential capability to survive in a global market.

[10]

Often inventory control problems result in record and physical count

discrepancies which may ultimately lead to higher than preferred inventory levels.

Conversely, accurate inventory records result in lower inventory investment and

are the foundation for forecasting, ordering, tracking, vendor evaluation, and dead

stock administration programs. Guidelines, based on general systems theory, to

 College of Engineering and Computer Sciences (CoECS) 6

identify the presence of inventory control problems in both physical operations and

information systems areas are presented. [11]

The logistical process of the material flow has become extremely difficult.

The consequences find themselves within an increasing complexity and

diminished transparency of logistics systems in the product supply. Nevertheless,

logistics cache significant rationalization capabilities within or across companies.

For this purpose, it is important to frame a methodology that enables a transparent,

clear, holistic visualization and a reduction of production supply to the essentials.

For the visualization of the material flow from the supplier to the assembly location,

a logistical value stream map will be developed to illustrate the complexity of

different material provision principles. [12]

The study “A Framework for Evaluating Inventory Management in

Healthcare Case: HUS Logistics” assembles a new framework for comparing the

relative monetary impact of one inventory management process when compared

to another. The purpose is to compare the inventory management processes in a

holistic way, evaluating them from three different perspectives. These are defined

in this study as (1) process quality, (2) process efficacy and the (3) strength of

inventory control. The framework is primarily relevant to inventory management in

healthcare, but can be transferred to other industries, given certain changes (e.g.

required service levels, implications of shortages. [13]

 College of Engineering and Computer Sciences (CoECS) 7

One of the major causes of panic in inventory management arises when

the store is empty but the record says there are still plenty of goods. For the

distribution chain, the identification of which goods are available and provided to

each customer can be a challenge. For manufacturers, the miss-recording of batch

quantities means that they constantly override the plan, so the capacity planning

and shop priorities are not defined properly. In the worst cases, the whole system

becomes driven by shortage lists – all because the records are not good enough.

Record accuracy has become the focus of attention for many businesses because

customers are more demanding, expecting the right item to be delivered on time,

and competitive pressures don’t allow that extra bit of stock-holding. Businesses

have been offered the opportunity to become much more effective, as long as they

allowed. [14]

Inventory Record Accuracy (IRA) is a measure that shows how much the

official records of inventories match a physical inventory. Many managers equate

IRA with cycle counting, but there’s a lot more than counting. Units of

measurement are based on the value or quantity. These two bases have different

purposes and can give very different results. Accountants and financial auditors

prefer value-based measurements of accuracy and inventory record accuracy.

Their responsibility is to ensure that the value of inventory recorded in books and

tax returns accurate at the aggregate level. They do not worry too much about

discrepancies on individual items provided that positive and negative

 College of Engineering and Computer Sciences (CoECS) 8

discrepancies are roughly equal and the total value is the same. The inventory

record accuracy is actual on-hand quantity compared to the quality stated on the

perpetual inventory record and within the limits of pre-defined tolerances for

inventory items A, B, and C. The A, B, and C classification for each company is

based on the cost of an item. [15]

Based on the book “Inventory Record Accuracy 2 nd edition” ABC Analysis

is business term used to define an inventory categorization technique often used

in material management It is also known as Selective Inventory Control Policies

based on ABC analysis: A Items are very tight control and accurate records. B

Items are less controlled and good records. C Items are simplest controls possible

and minimal records. The ABC analysis provides a mechanism for identifying items

that will have a significant impact on overall inventory cost, while also providing a

mechanism for identifying categories of stock that will require different

management and controls. [16]

A variable set of counting tolerances builds on the (Pareto) nature of a

usage-value-based A-B-C system. A’s are only 10% of the population, but typically

represent 70-80% of the usage-value (and inventory valuation accuracy), so

proper cycle counting allows no actual/system quantity tolerance. By contrast, C’s

are 70% of the population, but only represent 5-10% of the usage value, and up to

5% tolerance may be acceptable, depending on overall accuracy goals. [17]

 College of Engineering and Computer Sciences (CoECS) 9

Factors and applying ABC classification (ranking inventory items by their

value, in order to classify them according to their criticality), organizations can be

defined levels of tolerance to quantities of physical items. Rather than wasting time

on debating relative tolerances, organizations are recommended to establish

threshold levels in monetary value. Furthermore, tolerances necessarily depend

on the importance or criticality of and item: it is clear that planning systems suffer

from in accurate data, but it is often almost impossible to specify a limit beyond

which a planning system will fail. A general trend exists a general 5% tolerance on

data values: respecting a “95% of inventory items accuracy, with a + - 5%

tolerance” should bring an organization “into the top 10 or 20% of all manufacturing

and distributions companies in the world,” with regard to inventory record accuracy.

[18]

Most of our daily communication are through visual signals. Visualization

makes things easier to be understand. Think about how the traffic would be when

there is no signboard on the roads and no traffic lights at the road cross. Visual

workplace provides a suitable ‘’hardware’’ for lean and is one fundamental element

of lean. [19]

Visual controls are simple signals that show at a glance what needs to be

done. They are simplifications of systems that, when implemented effectively,

require no communication between employees to signal what action should be

taken. Think about that for a second—no communication. No e-mail, no

 College of Engineering and Computer Sciences (CoECS) 10

information management system interaction, no phone interaction, no reading

standard operating procedures, or good manufacturing practices. These are all no-

value-adding, time-robbing activities that the customer is unwilling to pay for. Some

visual control examples that describe necessary actions are where a material

should be moved, what raw material or subassembly should be replenished, which

orders need to be entered, which patients should be waited on first, and so forth.

[20] It is used by teams and management to make progress visible to all, to help

identify impediments to development, and to keep everyone focused on delivering

value. Visual control invites management to help detect the early problems

impeding progress toward the organization’s goals and can increases the

likelihood that management’s interruptions really add value to the process. [21]

These also helps to identify waste, abnormalities, or departures from standards.

They are easy to use even by people who don’t know much about the production

area.[22]

Visual controls should be designed to quickly communicate information to

people, indicating whether a condition is acceptable/not acceptable and, equally

as quickly, provide some direction of action on behalf of people. Visual controls

can be charts, graphs, gauges, signs, digital readouts, colors, shapes, numbers,

letters, arrows, lines; they don’t need to be sophisticated implementations. [23]

Furthermore, visual process controls involve using several displays, such as

posters, charts, or markers, such as flags and floor markings, which are visibly
 College of Engineering and Computer Sciences (CoECS) 11

displayed for work team. Visual process controls have many beneficial qualities as

they establish and communicate like, display what the target is and if it is have

been met, the process is presented which shows all dependent relationships, the

process issues can be identified and show details of the standardized work

methods. [24] These are generally seen in production and logistics. Bordering,

outlining, marking, color-coding and the Gestalt law principles are some of the

cognitive design methods frequently adopted for visual controls in the lean

production system. [25]

Floor marking is the process of using visual signals such as shapes, lines,

and signs on floors to make a space easier for the worker to navigate. These

signals are spaces, highlight hazards, outline workstations and storage locations

and convey important safety or instructional information. It helps the organization

in the facility to reduce wasted time and energy and to identify storage or stage

areas. Using floor markings to alert people to when PPE is necessary is very

effective and to avoid injuries or accidents. Also, using floor markings it indicates

where should be placed things like pallets, inventory, garbage cans, and more

when not in use can help improve organization. Floor marking tapes are

recognized by safety professionals as the most convenient and inexpensive option

to mark aisles, since painted lines tend to chip, peel, and crack, and need

replacement. Tapes range from lightweight (approximately 5 to 8 mils, or .005” to

.008”) to heavyweight (from 20 to 35 mils, or .020” to .035”), and it is important that

 College of Engineering and Computer Sciences (CoECS) 12

you choose a tape that is durable enough to withstand to the facility. Also, to ensure

maximum visibility and awareness, the required minimum width required for floor

marking lines is 2” wide- therefore, any width above that is considered acceptable

by OSHA and ANSI. Most typical applications use by is 2” - 6” widths. Widths above

6” tend to be much more cost-prohibitive and impractical to apply. [26] The color

codes of the Floor marking tapes purposefully limit the colors included to

encourage easy learning and ready recognition of specific areas in the workplace

among employees. It can also be easily identified to suit the specific operational

priorities, processes and characteristics of the facilities. [27] The red color on the

rack marks the replenishment point or critical level for the corresponding inventory.

The yellow color corresponds that the inventory is running low and should be

observed and get ready for the replenishment. The green signals a satisfactory

level of inventory. [25]

Aside from that, yellow is for aisle ways and traffic lanes, paths of egress,

work cells. White is for the production racks, machines, Carts, benches, and other

equipment. Red is for the defect/scrap area and red tag area. Orange is for material

or product inspection and energized equipment. Green is for materials and

manufacturing: finished goods. Blue is for materials and manufacturing and raw

materials. Black is for materials and manufacturing: works in progress. These color

code recommendations are widely accepted and comply with any interpretation of

OSHA or American National Standards Institute (ANSI) codes. [28]

 College of Engineering and Computer Sciences (CoECS) 13

Proper signage is important in the work environment. Occupational Safety

& Health Administration (OSHA) has strict requirements for signs in warehouses

and storage facilities. OSHA regulations require employers to clearly post warnings

about potential hazards, and other signs regarding about the warehouse.

OSHA specifies that the words printed on a sign should all be "accurate in fact."

Inaccurate or outdated signs may constitute a violation in some instances. Rules

about the language used on signs are found in standard 1910.145(e)(2). [29]

A great tool in visualization is the visual control board. The visual control

board is simply a large display board typically 4’ by 8’ located in a prominent

location on the warehouse. This board can be a sheet of plywood, pegboard,

whiteboard etc. The information is usually a combination of handwritten and

computed notes. [30] The purpose of visual board is to capture key operational

measures that will influence cost, quality and delivery. The group of employees

belonging to the work area was responsible for maintaining the visual board. [31]

Another tool in visualization is identification tags, it let the operators know

how many products to produce and what to do with the part when it is finishes.

Without tags, there would be no organization in the system. [32] Tags can be read-

only tags, where data is programmed into the tag and can read after that. Tags

can also be write/read tags where the user can write data to tag, add to data or

change the data real time. [33] Tags could include: Item name, Quantity, Inventory

control numbers, Value, Date tagged and reason, owner etc. An organization
 College of Engineering and Computer Sciences (CoECS) 14

should be established to keep only what is needed and get rid of everything else

[34]

From the book entitled “Lean Supply Chain Management Essentials a

Framework for Materials Managers” it was discussed the use of visual control in

order to help manage a number of things, such as production and inventories. Let’s

look at using it in the warehouse visual control is used in conjunction with the

workload levelling. It provides an easy to see and use visual tool to monitor

performance and to organize off-schedule conditions. In traditional management,

we used to focus on the individual, while in visual control we focus on the causes

of variances. We still monitor the team’s performance if necessary, and can drill

down to the individual pickers if needed. [35]

As discussed already, visual controls in a manufacturing facility may be

designed to support a company-wide safety initiative or to advertise a strategic

business initiative to the workforce. However, an even more important justification

for implementing a visual control system is the potential to achieve the proper flow

of product, and the balances consumption and movement of inventory and use of

resources, throughout the operation. The net results are as follow:

Improves productivity, quality, and delivery performance. A successful visual

control system not only can complement other lean initiatives but also can provide

another competitive edge. [3]

 College of Engineering and Computer Sciences (CoECS) 15

Conceptual Framework

INPUT PROCESS OUTPUT

• Causes of
• Current variations
Inventory between manual
Process and system
inventory
• Improved
• Inventory record inventory
which includes • Data analysis process.
raw materials, and
work in progress, interpretation
and finished using Fishbone
goods. Diagram

Feedback

Figure 1.0 Research Paradigm

The Figure 1.0 represents the research paradigm which describes the input,

process, and output of the research. It explains the flow of the study which will be

the guide on how the study will be conducted. Included here are the data that the

researchers need, how they will work on it, and the outcome that will be produced
 College of Engineering and Computer Sciences (CoECS) 16

from this research. The input refers to information that the researchers need to

determine. It shows that the researchers can analyze the current inventory

process. Another variable under the input is the inventory record which includes

raw materials and finished goods. Process includes analyzing the required

information, the researchers will determine the causes of variations between

manual and system inventory. The output will be an improved inventory process in

Choei Plastic World Philippines Inc.

 College of Engineering and Computer Sciences (CoECS) 17

Objectives of the Study

The main objective of the study is to improve the inventory process of plastic resin

at Choei Plastic World Philippines Inc. using Visual Control Techniques

Specifically, the study aims to:

1. To present and analyze the inventory process of plastic resin

2. To determine the root cause of mismatch in the actual and system

inventory.

3. To propose the solution to improve inventory process by visual control

techniques.

4. To assess the effectiveness of the propose inventory process.

 College of Engineering and Computer Sciences (CoECS) 18

Chapter 2

METHODOLOGY

This chapter presents the research method and procedure of the study

which include the research design, research locale, participants of the study,

research instruments, data gathering procedure and data analysis.

Research Design

The researchers used applied research in the study. Applied research

focuses on solving existing or future problems that a society or an industrial

organization is facing with. Since applied research focuses in taking result of

scientific research and utilizing it directly in real world situations those who work in

this line of research tend to be more concerned with the external validity of their

work. It aims of developing a new product, or a new process, or something that will

improve the organization’s performance.

On the view of researchers, applied research will help Choei Plastic World

Philippines Inc. to enhance their current process area that currently facing

problems. It will guide the company to figure out existing issues. Also, it will help

the company to evolve new processes that will improve the production.

Source: Book, “Applied Research Design” Terry E. Hedrick

 College of Engineering and Computer Sciences (CoECS) 19

Research Locale

The study conducted at Choei Plastic World Philippines Inc., Building S2,

Lot 20, Phase 1B, FPIP, Barangay Ulango, Tanauan City. CPWPI Plastic World

Philippines is one of Cho Ei group of company, who started plastic business in

1989. CPWP manufacturing operation started in August of 2014 in Philippines.

This is a plastic resin coloring company. The researchers chose Choei Plastic

World Philippines Inc. as the locale of the study because the management agrees

to conduct research study.

Research Instruments

The researchers used different instrument in gathering the data in the

inventory process like interviews and observations. Interviews with the production

supervisor and warehouseman is one of the effective ways in collecting relevant

data that helped the researchers in inventory understanding. Also, the researchers

will use observation to help the researchers in their study at CPWP.

Participants of the Study

The participants of the study are the workers from Choei Plastic World

Philippines Inc. which consisted of Engr. Apolejo del Rio the Production supervisor,

Mr. Marvin Valencia the warehouseman and the researchers.

 College of Engineering and Computer Sciences (CoECS) 20

Data Gathering Procedure

The researchers passed the request letter to conduct a study to Choei

Plastic World Philippines Inc. After the approval of the Factory Manager, the

Production Supervisor oriented the researchers about their products and

production. The Production Supervisor also introduced the researchers to the

warehouseman.

The researchers conducted interviews to the Production Supervisor and

warehouseman about the current process of the production and about the

inventory process. Engr. Del Rio asked the researchers to start their study by

observing the problems occurring in a specific area. However, Engr. Del Rio

suggested to the researchers, that they need to focus the inventory process of

CPWP.

In this study, researchers identified the most common problem that may

encounter and contributes inefficient in the inventory process of CPWP. To make

some solutions, they will brainstorm about different methods can use to make the

study possible.

The researchers gathered data with the use of interviews and analyzing the

inventory process by making flowcharts in CPWP’s process in the inventory. The

researchers asked permission to the Production Manager to have the list of the

actual inventories and the system inventories. After the researchers analyzed the
 College of Engineering and Computer Sciences (CoECS) 21

data, they identified the problem, the mismatch between the actual and system

inventory in the inventory process of CPWPI.

Data Analysis

The researchers used Inventory Record Accuracy (IRA) to measure the

accurateness of the actual inventory and system inventory record.

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐶𝑜𝑟𝑟𝑒𝑐𝑡 𝑅𝑒𝑐𝑜𝑟𝑑𝑠

IRA (%) = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑅𝑒𝑐𝑜𝑟𝑑𝑠 𝐶ℎ𝑒𝑐𝑘𝑒𝑑 𝑥 100%

Quantity Difference = Actual Inventory – System Inventory

𝐴𝑐𝑡𝑢𝑎𝑙 𝐶𝑜𝑢𝑛𝑡−𝑆𝑦𝑠𝑡𝑒𝑚 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

% Difference = 𝑥 100%
𝑆𝑦𝑠𝑡𝑒𝑚 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

ABC classification and stratification is a common method for ranking the relative

importance of inventory items. The most important items (A-Items) get counted

more often and have more exacting count tolerances.

Count of tolerances are based on the ABC classification and typical tolerances are

in the table.
College of Engineering and Computer Sciences (CoECS) 22

Table1.Typical count tolerances

Class Typical Tolerances

A+ (+/-) 0%

A (+/-) 0%-1%

B (+/-) 3%-5%

C (+/-) 10%-15%

D N/A
 College of Engineering and Computer Sciences (CoECS) 23

Chapter 3

Results and Discussions

4. Process Flow of Inventory in the warehouse of Choei Plastic World

Philippines Inc.

Figure 2.0 Incoming Flow of Inventory

 College of Engineering and Computer Sciences (CoECS) 24

Figure 2.0, shows the inventory process of incoming flow of materials in the

warehouse of CPWP. Start of the inventory for incoming documents for raw

materials the document should be verified at in. After verifying, the raw materials

will be received. When the documents are confirmed they accept the materials and

stack it in the warehouse. After that the warehouse man will record the materials

in the system. Sometimes, the problem occurred when the documents of raw

materials needed and the documents of the materials arrived differs. In such

cases, they receive materials that are not in the documents.

Incoming flow have five different activities and the employees will work with

the incoming goods and divided these activities between themselves. First activity

is in the shipment area. The responsible person need to count all arrived packages

and compare them with the amount in the order and if they matched, the label of

the component should be signed. In the second activity, goods will be place in the

queue to be registered. As the third activity, the waybill will be checked to be

matched with the good. The fourth activity was registration of all items in the

warehouse system of the company. [36]

 College of Engineering and Computer Sciences (CoECS) 25

Figure 3.0 Outgoing Flow of Inventory

Figure 3.0, shows the outgoing flow of materials in warehouse of CPWP. The

process of outgoing flow in inventory process starts in getting of the delivery list.

After the delivery list is received, it is time for the preparation of delivery. Then, the

warehouse man collects the prepared delivery information. After that, it is followed

by the recording of materials in the system. The warehouseman miscounted the

 College of Engineering and Computer Sciences (CoECS) 26

products due to the terminals. It is very important to verify outgoing materials from

the stock to efficiently monitor the inventory. When a mistake is done at this stage

it will result in an incorrect inventory level. [37]

Once orders were gathered, items need to be prepared to ship. It depends,

in which units they will ship, usually in pallets or cartons and must be safely packed.

All units for a given transportation were gathered and will generates a

documentation. [37]
 College of Engineering and Computer Sciences (CoECS) 27

Figure 4.0 Product Issuance Flow of Inventory

Figure 4.0, shows the production issuance of materials in the warehouse of

CPWP. The process of Production issuance in inventory process starts in receiving

the delivery list. After getting the delivery list, it is time for the preparation of

materials. Then, the warehouse man collects the prepared material information.

After that, it is followed by the issuance of materials in the production. The

 College of Engineering and Computer Sciences (CoECS) 28

warehouseman sometimes delayed the encoding in the system or forgot to update

the system. Terminals are also problem in the production issuance of materials.

The materials needed from each station in production line will be listed in an

order list paper. The warehouse man will take orders and register them in the

computer system. Finally, they will be deliver to the stations by trollies or material

train. A problem that occurred in this process was that sometimes it was forgotten

to register the orders. [36]

Table 2.0 Inventory Record, Calculated Quantity and Percent

Difference of CPWP

ITEM NAMES Actual System Quantity %

Count Record Difference Difference
GP22 White1921 CP 372 156 216 58.06
GP22 Black1919 CP 845 1,034 189 18.28%
576H Black1919 CP 2,192 1,992 200 10.04%
SR600 Black1919 CP 357 448 -91 -20.31%
SR600 Black1919 MB (3%) 156 134 22 16.42%
576H WhiteA114 CP 883 496 -387 -78.02
SR600 Gray1735 MB (3%) 8 5 3 60%
GP22 Black CP 102 207 -105 50.72%
GP22 Black MB (1%) 6 4 2 50%
495F Blue6310 CP 117 20 97 82.9%
GP22 Orange3262 CP 19 0 19 -
GP22 Green5310 CP 17 56 39 -69.64%
495F Black MBB (1%) 0 0 0 0
GP22 White1899 CP 8 12 -4 -33.33%
SR600 Natural 5,094 2,713 2381 87.76%
495F White1250 CP 1 0 1 0%
GP22 Green5266 MB (3%) 0 1 -1 -100%
495F White1899 CP 0 3 -3 -100%
GP22 Blue6563 CP 1 0 1 -
RPS Black1919 CP 145 211 -66 -31.28%
SR600 Natural 2,520 1,120 1400 55.56%
 College of Engineering and Computer Sciences (CoECS) 29

Table 2.0 shows the inventory record of actual and system of CPWP for the

last 6 months. The data included here consist of item names, actual count and the

system count. The researchers gathered the data for the last 6 months since they

need the latest inventory record. Also, it shows the calculated quantity difference

and % difference of actual and system record. Quantity difference and % difference

was computed to determine the discrepancy between the data. Percent difference

is the mean and the standard deviation of the percentage difference between the

observed and the corresponding values were computed for reporting. These

parameters give a general idea of the accuracy of data. [38]

 College of Engineering and Computer Sciences (CoECS) 30

Table 3.0 ABC Analysis and Percent Tolerance

ITEM NAMES ABC % Tolerance Tolerance Accurate?

Analysis okay?
GP22 White1921 CP B 2% No No
GP22 Black1919 CP C 12% Yes Yes
576H Black1919 CP c 15% No No
SR600 Black1919 CP B 5% Yes Yes
SR600 Black1919 MB B 2% Yes Yes
(3%)
576H WhiteA114 CP B 5% No No
SR600 Gray1735 MB A 0.06% Yes Yes
(3%)
GP22 Black CP B 2% No No
GP22 Black MB (1%) A 0.05% Yes Yes
495F Blue6310 CP A 0.23% No No
GP22 Orange3262 CP A 0% No No
GP22 Green5310 CP A 0.65% Yes Yes
495F Black MBB (1%) A 0% Yes Yes
GP22 White1899 CP A 0.14% Yes Yes
SR600 Natural C 15% No No
495F White1250 CP A 0% Yes Yes
GP22 Green5266 MB A 0.01% Yes Yes
(3%)
495F White1899 CP A 0.03% Yes Yes
GP22 Blue6563 CP A 0% Yes Yes
RPS Black1919 CP B 2% Yes Yes
SR600 Natural C 13% No No

Table 3.0, shows the ABC Analysis. ABC Analysis is business term used to

define an inventory categorization technique often used in material management

It is also known as Selective Inventory Control Policies based on ABC analysis: A

Items are very tight control and accurate records. B Items are less controlled and

good records. C Items are simplest controls possible and minimal records. The

ABC analysis provides a mechanism for identifying items that will have a significant
 College of Engineering and Computer Sciences (CoECS) 31

impact on overall inventory cost, while also providing a mechanism for identifying

categories of stock that will require different management and controls. [16] Also,

it shows the count tolerances are based on the ABC classification and typical

tolerances. A general trend exists a general 5% tolerance on data values:

respecting a “95% of inventory items accuracy, with a + - 5% tolerance” should

bring an organization “into the top 10 or 20% of all manufacturing and distributions

companies in the world,” regarding inventory record accuracy. [18]

13
IRA (%) = 𝑥 100%
21

IRA (%) = 61.90%

The table also shows the number of correct records based on the tolerance

and accuracy of the data. The researchers considered “yes” or “no” based on the

ABC Analysis. The calculated percentage of the Inventory Record Accuracy was

61.90 %, it was computed based on the 13 correct records over the 21 number of

records checked multiplied by 100%.

 College of Engineering and Computer Sciences (CoECS) 32

5. Cause and Effect Analysis of Inaccurate Inventory Record at CPWP

15%

25%
15%
15%

30%

Figure 5.0 Cause and Effect Analysis of Inaccurate Inventory

 College of Engineering and Computer Sciences (CoECS) 33

In figure 5.0, the researchers used cause and effect diagram to analyze and

identify the causes of inaccurate inventory. There were 5 factors that the

researchers considered which are the man, methods, materials, machinery and

environment. 25% of the root causes came from the man. While 15% of root

causes came from the machine, also 15% from materials and another 15% came

from the environment. For the methods, late of entry of materials to the

document, verifying of materials, inaccurate count, over issue or under issue of

the product, terminals and delayed encoding to the system has an effect to the

inaccurate inventory with rate of 30%. As the results being evaluated by the

researchers, the highest percentage that causes the inaccurate count are from

the method.

Terminal is one of the true cause due to inaccurate count and over issue

or under issue of the products. Terminals are the products that are less than 40

sacks but still stack in the pallets and still count as 40 sacks. Next true cause is

the delayed encoding in the system of the warehouseman due to the verifying of

documents and late entry of materials in the documents. Some reasons or not

the true causes, why the inventory is not accurate is because of Lack of space

for new products, poor performance of the worker, forgot to update the system,

verification of data and lack of training of the worker.

 College of Engineering and Computer Sciences (CoECS) 34

6. Proposed Visual Control Techniques for CPWP’s Inventory Process

Figure 6.0 Inventory Tracking Board

Table 4.0 Inventory Tracking Board’s Information

Materials Needed How to use? Location of the When to use?

Tracking Board
1. 4’ x 8’ Whiteboard 1. Determine the 1. In front of 1. When there is
with stand IN and OUT items per row an IN and OUT
2. Whiteboard Marker items. of the items.
2. Write the item
names in the
Item name
column.
3. Write the Lot
numbers in
the Lot
number
column.
4. Write the
number of
items in the
quantity
column
 College of Engineering and Computer Sciences (CoECS) 35

Table 4.0 shows the materials needed, how to use the inventory tracking

board, location and when to use the tracking board. The visual control inventory

tracking board is simply a large display board typically 4’ by 8’ located in a

prominent location on the warehouse. This board can be a sheet of plywood,

pegboard, whiteboard etc. The information is usually a combination of handwritten

and computed notes. The purpose of visual board is to capture key operational

measures that will influence cost, quality and delivery. The group of employees

belonging to the work area was responsible for maintaining the visual board. [31]

This Visual control board consists of the item name, lot number, and

quantity only. Date is not included since it is the least priority to their inventory

record. This visual control inventory tracking board can be found at front of every

rows in the warehouse of CPWP.

This is important due to for the manufacturers, the miss-recording of batch

quantities means that they constantly override the plan, so the capacity planning

and shop priorities are not defined properly. In the worst cases, the whole system

becomes driven by shortage lists – all because the records are not good enough.

[14]
 College of Engineering and Computer Sciences (CoECS) 36

Figure 7.0 Terminals Identification Tags

Table 5.0 Terminals Identification Tag’s Information

Materials How to make? How to use? Location of When to use

needed Terminal Tag
1. Short bond 1. Print the 1. Determine 1. Hook in 1. When
template of the the there are
paper the terminal terminals middle less than
tag in the or pallets part of 40 sacks
2. 9” x 12” short bond with less pallets in one
paper. than 40 with less pallet.
Laminating 2. Laminate sacks in than 40
the printed the sacks.
Pouch template. warehouse.
3. Put the 2. Clip the
3. Swivel bull Swivel bull Terminal
dog clip in tag in the
dog clip the upper middle
middle part hook of the
of the Tag. pallet.
 College of Engineering and Computer Sciences (CoECS) 37

Table 5.0 shows the materials needed, how to make, how to use, location

and when to use the terminal tag. The 8.5 inches by 11 inches Terminals

Identification Tags is made by a bond paper and will be laminated. Terminals are

the products that are less than 40 sacks in the pallets. Bond paper is the cheapest

paper material to used. Laminated pouch is used to protect and preserve the

terminal tag. The tag must be located or hanged in the pallets that have terminals.

This identification tag consists of an item name, lot number, date, and quantity

of terminals. The quantity has the largest allotted space, it is for the warehouse

man to notice the terminals easily. Identification tags let the operators know how

many products to produce and what to do with the part when it is finishes. Without

tags, there would be no organization in the system. [32] Tags can be read-only

tags, where data is programmed into the tag and can read after that. Tags can also

be write/read tags where the user can write data to tag, add to data or change the

data real time. [33] Tags could include: Item name, Quantity, Inventory control

numbers, Value, Date tagged and reason, owner etc. An organization should be

established to keep only what is needed and get rid of everything else [34]
 College of Engineering and Computer Sciences (CoECS) 38

Figure 8.0 Signage

Table 6.0 Signage’s Information

Materials needed How to make? Location of Hanging

signage
1. A3 size Paper 1. Print the template of the 1. Hang the signage
hanging tag in the A3 over the rack aisle.
2. A3 size Laminated size paper.
Pouch 2. Laminate the printed
3. 80 inches template.
Polypropylene Rope 3. Make holes in the upper
part of the Hanging
signage.
4. Attach the 40 inches
polypropylene Rope in
each hole.
 College of Engineering and Computer Sciences (CoECS) 39

Table 6.0, shows the materials needed, steps in making the hanging signage

and its location. A3 size paper is convenient and inexpensive to use as a signage.

Laminated pouch keeps the signage from dust or dirt. Polypropylene rope is

inexpensive, readily available and suitable for many purposes.

The signage indicates an item name for the warehouseman easily identify the

raw materials and finished goods. According to OSHA, the required color of the

signage is color blue. Blue is used on signs and labels that provide information

about an item or area. This information doesn’t necessarily have to be safety

related. [29] Visual controls should be designed to quickly communicate

information to people, indicating whether a condition is acceptable/not acceptable

and, equally as quickly, provide some direction of action on behalf of people. Visual

controls can be charts, graphs, gauges, signs, digital readouts, colors, shapes,

numbers, letters, arrows, lines; they don’t need to be sophisticated

implementations. [23]

Proper signage is important in the work environment. Occupational Safety &

Health Administration (OSHA) has strict requirements for signs in warehouses and

storage facilities. OSHA regulations require employers to clearly post warnings

about potential hazards, and other signs regarding about the warehouse. OSHA

specifies that the words printed on a sign should all be "accurate in fact."

Inaccurate or outdated signs may constitute a violation in some instances. [29]

College of Engineering and Computer Sciences (CoECS) 40

Figure 9.0 Floor Markings for Finished Goods Area

College of Engineering and Computer Sciences (CoECS) 41

Figure 10. Floor Markings for Raw Materials Area

College of Engineering and Computer Sciences (CoECS) 42

Figure 11 Floor Markings for Product Inspection Area

College of Engineering and Computer Sciences (CoECS) 43

Figure 11. Floor Markings for Defects Area

College of Engineering and Computer Sciences (CoECS) 44

Figure 12. Floor Marking for Work in Progress Area

 College of Engineering and Computer Sciences (CoECS) 45

Table 7.0 Floor Markings’ Information

Materials needed How to apply? Location of Floor When to use?

Markings
1. 2 inches 1. Clean the 1. Manufacturing 1. When
wide and floor with a and logistic there is
.005” to .008” mild non- area of finished IN and
lightweight ammonia goods, raw OUT of
Industrial based materials, work items.
Floor cleaner. in progress,
marking defects and
tapes (green, 2. Peel and product
blue, orange, stick the inspection.
red and lines to the
black) floor.

2. Mild non-
Ammonia
based
cleaner

Table 7.0 shows materials needed, how to apply, location and when to use

the floor markings. Floor marking tapes are recognized by safety professionals as

the most convenient and inexpensive option to mark aisles, since painted lines

tend to chip, peel, and crack, and need replacement. Mild non-ammonia based

cleaner is one type of cleaner that helps the floor marking tapes to apply easily.

Tapes range from lightweight (approximately 5 to 8 mils, or .005” to .008”) to

heavyweight (from 20 to 35 mils, or .020” to .035”), and it is important that you

choose a tape that is durable enough to withstand to the facility. Also, to ensure

maximum visibility and awareness, the required minimum width required for floor

marking lines is 2” wide- therefore, any width above that is considered acceptable
 College of Engineering and Computer Sciences (CoECS) 46

by OSHA and ANSI. Most typical applications use by is 2” - 6” widths. Widths above

6” tend to be much more cost-prohibitive and impractical to apply. [26]

The visual controls or different colors of floor markings for the warehouse of

CPWP. According to OSHA, yellow is for aisle ways and traffic lanes, paths of

egress, work cells. White is for the production racks, machines, Carts, benches,

and other equipment. Red is for the defect/scrap area and red tag area. Orange is

for material or product inspection and energized equipment. Green is for materials

and manufacturing: finished goods. Blue is for materials and manufacturing and

raw materials. Black is for materials and manufacturing: works in progress. These

color code recommendations are widely accepted and comply with any

interpretation of OSHA or American National Standards Institute (ANSI) codes.

[28]

Visual process controls involve using several displays, such as posters,

charts, or markers, such as flags and floor markings, which are visibly displayed

for work team. Visual process controls have many beneficial qualities as they

establish and communicate like, display what the target is and if it is have been

met, the process is presented which shows all dependent relationships, the

process issues can be identified and show details of the standardized work

methods. [24] These are generally seen in production and logistics. Bordering,

outlining, marking, color-coding and the Gestalt law principles are some of the
 College of Engineering and Computer Sciences (CoECS) 47

cognitive design methods frequently adopted for visual controls in the lean

production system [25].

Floor marking is the process of using visual signals such as shapes, lines,

and signs on floors to make a space easier for the worker to navigate. These

signals are spaces, highlight hazards, outline workstations and storage locations

and convey important safety or instructional information. It helps the organization

in the facility to reduce wasted time and energy and to identify storage or stage

areas. Using floor markings to alert people to when PPE is necessary is very

effective and to avoid injuries or accidents. Also, using floor markings it indicates

where should be placed things like pallets, inventory, garbage cans, and more

when not in use can help improve organization. [26] The color codes of the Floor

marking tapes purposefully limit the colors included to encourage easy learning

and ready recognition of specific areas in the workplace among employees. It can

also be easily identified to suit the specific operational priorities, processes and

characteristics of the facilities. [27]

 College of Engineering and Computer Sciences (CoECS) 48

CHAPTER 4

CONCLUSION AND RECOMMENDATION

This chapter will focus on formulating the conclusions based on the findings

and proposed recommendations for further improvement.

Conclusion

1. After analyzing the present warehouse of CPWP, the researchers

concluded that the main problem of the company was the inaccurate

record of inventory. In the comparison of actual count and system record

inventory, the inventory does not meet the percentage requirement of

accuracy due to some reasons and problems that affects the inventory

process. By several visits and observation, the researchers noticed that

there were incomplete sacks in one pallet. Due to that, there was a

miscounting in the inventory.

2. The researchers concluded that the there are two (2) root causes of

inaccurate inventory, the terminals and delayed encoding of products to

the system. Terminals takes place due to the different amount of orders

of the customers. Delayed encoding of products to the system was also

a reason for the inaccurate inventory at CPWP. These problems could

be resolved using the visual control techniques to prevent the

 College of Engineering and Computer Sciences (CoECS) 49

discrepancy between the actual count and the system record that can

cause the inaccurate inventory of plastic resin.

3. The computed percentage of inventory record accuracy in actual count

and system record inventory was 61.90%, which was not acceptable. The

target acceptable IRA percentage range of the researchers is 95% to

100%.

Recommendation

Based on the findings of the study, the researchers’ recommendations are the

following:

1. The Management in Choei Plastic World Philippines Inc. should have

the continuous monitoring on their warehouse for further improvement.

2. Improved and easier system inventory will also make the inventory

monitoring better.

3. Visual controls can be applied on the other department.

4. Continuous improvement and training of the warehouseman.

5. Additional manpower in the warehouse.

6. For the future researchers, in addition to this study they should include other

visual controls and its purpose.

College of Engineering and Computer Sciences (CoECS) 50

Appendices
 College of Engineering and Computer Sciences (CoECS) 51

Appendix 1

Dec. 14, 2016

HR Personnel
Choei Plastic World Philippines Inc.
Lot 20 Phase 1-B FPIP Brgy. Ulango Tanauan City, Batangas

Dear Mr. /Ms.;

Good Day!
We, a group of 4th year BS Industrial Engineering students from Lyceum of the
Philippines – Laguna, currently enrolled in the subject undergrad research. In part
of the subject requirements, we are asked to conduct an improvement study. In
relations to this, we are asking permission from your good office to please allow us
to visit and observe your production operation for us to identify potential
improvement project.

Rest assured that all information given to us will be used for academic purposes
only and will be treated with utmost confidentiality. Thank you very much and we
are looking forward for your positive response in this matter. God Bless.

Kindly contact us in these numbers:

Delos Reyes, Jamaica D.– (63)9177810768

Manalo, Lyka M.– (63)9127850611 Manzanilla, Marvin M. – (63)9055099866

Respectfully yours,

Delos Reyes, Jamaica D.

Manalo, Lyka M. Manzanilla, Marvin M.
 College of Engineering and Computer Sciences (CoECS) 52

Bibliography

[1] N. N. Suraidi, "A Study on Relationship between Inventory," Advanced

Management Science , vol. Vol. 4, no. No. 4, July 2016 .
[2] D. Willis, "Implement the Final Process, Share Success, Begin the Next
Process," in Process Implementation Through 5S: Laying the Foundation
for Lean, 2016, p. 67.
[3] M. P. Chris A. Ortiz, Visual Controls: Applying Visual Management to the
Factory, New York: Taylor & Francis Group, 2011.
[4] H. Hirano, JIT Implementation Manual: The Complete Guide to Just-in-
Time Manufacturing, 2010.
[5] P. Kotler, Marketing Management: The Millennium Edition, 2nd ed., New
Delhi: Prentice Hill of India, 2002.
[6] L. a. D. H. T. W. Bourne, "Visualizing and mapping stakeholder influence,"
Journal of Management Decision, vol. 43, pp. 649-660, 2005.
[7] [Online]. Available:
https://www.academia.edu/4380077/THE_IMPACT_OF_INVENTORY_MA
NAGEMENT_AND_PERFORMANCE_OF_PRIVATE_ORGANIZATIONS_I
N_UGANDA._A_CASE_STUDY_OF_COCA-
_COLA_MBARARA_PLANT_IN_MBARARA_MUNICIPALITY.
[8] [Online]. Available:
http://usir.salford.ac.uk/10883/1/The_functions_of_Visual_Management.pdf
..
[9] [Online]. Available: http://stmlportal.net/ictom04/papers/P9.pdf..
[10] O. ¨Ozer, Inventory Management: Information, Coordination and
Rationality.
[11] D. Lambert. [Online]. Available:
https://www.researchgate.net/publication/241617307_Guidelines_for_Imple
menting_an_Effective_Inventory_Management_System.
[12] O. G. S. G. W. Bauer, "Development of a method for visualization and
evaluation of production logistics in a multi-variant production in Procedia,"
2014, pp. 481-486.
[13] S. Saraste, "A Framework for Evaluating Inventory Management in
Healthcare Case: HUS Logistics".
[14] A. Wild, Improving Inventory Record Accuracy: Getting Your Stock
Information Right, 2004.
[15] A. Zrilic, Six Step Inventory Optimization, 2013.
[16] R. B. Brooks, Inventory Record Accuracy 2nd Edition.
 College of Engineering and Computer Sciences (CoECS) 53

[17] E. Matson, Lean Enterprise Inventory, 2009.

[18] M. Rothlin, Management of data quality in Enterprises Resource Planning
Systems, 2010.
[19] [Online]. Available:
https://brage.bibsys.no/xmlui/bitstream/handle/11250/2433800/14849_FUL
LTEXT.
[20] J. H. F. V. H. W. Rich Charron, The Lean Management Systems
Handbook.
[21] "mendeley.com," [Online]. Available: https://www.mendeley.com/research-
papers/visual-controls-information- radiators-enterprise- teams/.
[22] W. A. Levinson, "A Framework for Continual Lean Improvement," in Lean
Management System LMS, 2012.
[23] D. M. R. Ruiz, "Improvement of a quality incident information system in a
manufacturing setting," October 2014.
[24] I. Fitzmaurice, 31 08 2010. [Online]. Available:
https://aran.library.nuigalway.ie/bitstream/handle/10379.
[25] A. K. I. J. o. Management, "International Journals of Multidisciplinary
Research Academy (IJMRA)," BUILDING THE VISUAL MANAGEMENT: A
COGNITIVE APPROACH, vol. 6, no. 9, pp. 123-145, 2016.
[26] "FLOOR MARKING GUIDE A GUIDE TO MARKING YOUR FACILITY’S
FLOORS IN ACCORDANCE WITHOSHA REGULATIONS," [Online].
Available: http://cdn.thomasnet.com/ccp/30155299/49725.pdf.
[27] C. Rutter, "Floor marking tape color standards," 20 September 2010.
[Online]. Available:
http://www.plantservices.com/articles/2010/09floormarking.
[28] "Floor Marking Guide," [Online]. Available: creativesafetysupply.com.
[29] "Safety and Health Regulations for Construction: Signs, Signals, and
Barricades," [Online]. Available:
https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=STA
NDARDS&p_id=10681.
[30] D. A. Baker, Multi-company Project Management: Maximizing Business
Results Through Strategic Collaboration, 2009.
[31] B. Mahadevan, Operations Management: Theory and Practice, 2010.
[32] A. P. D. Shiego Shingo, A Study of the Toyota Production System: From an
Industrial Engineering View Point.
[33] J. D. Smith, Warehouse Management Handbook.
[34] M. A. D. Robert M. Patty, The End of Project Overruns: Lean and Beyond
for Engineering, Procurement and Contructions, 2009.
 College of Engineering and Computer Sciences (CoECS) 54

[35] B. J. D. Bill Kerber, Lean Supply Chain Management Essentials A

Framework for Materials Managers.
[36] M. Daraei, "Products and Process Development," in Warehouse Redesign
Process: A Case Study at Enics Sweden AB.
[37] M. Zielinski, "Outsourcing of logistics processes from the perspective of 3pl
provider," in Design of Warehouse Processes, 2008.
[38] J. B. S. R. G. Hicks, Long-Term Performance Program: Making Something
of it, 2000.
College of Engineering and Computer Sciences (CoECS) 55

Biography
 College of Engineering and Computer Sciences (CoECS) 56

Jamaica D. delos Reyes is 20 years old, born

and raised in Tiaong, Quezon. She graduated from

Recto Memorial National High School as Best in

Class. She is upcoming 5th year student pursuing the

degree of Bachelor Science in Industrial Engineering

at Lyceum of the Philippines- Laguna and looking

forward to become Certified Industrial Engineer. During her fourth year as an

Industrial Engineering student, she was elected as a vice-president in the Lyceum

of the Philippines Industrial Engineering Society where she participated well on the

projects and activities that organization conducted.

Jamaica is an extravert person who can interacts with people well and

can be a leader for her classmates. She aims to be one of the successful industrial

engineers who have stable job and can accomplish great tasks that can give honor

to her alma matter. With all the skills she acquired and knowledge that she learned,

she will eventually reach her dreams.

 College of Engineering and Computer Sciences (CoECS) 57

Manalo, Lyka M. 20 years old. Born on the 13th of

August 1996 from Malvar Batangas. She lived in

San Fernando Malvar, Batangas. She graduated

high school from Southgate Institute of Malvar. She

is taking up Bachelor of Science in industrial

engineering at Lyceum of the Philippines-Laguna.

She started college in 2013 and he is now currently in his 4th year.

She is proficient in using Microsoft Office (Word, Excel, PowerPoint) and

knowledgeable in using AutoCAD, POM-QM windows, SPSS Statistics, SAP. After

Graduation, she planned to take the certification to be a certified Industrial

Engineer. Her career objective is to obtain a position in an organization that

provides greater opportunities where she can utilize her knowledge and skills as

an Industrial Engineer. Her goal is to become a professional Industrial Engineer.

 College of Engineering and Computer Sciences (CoECS) 58

Marvin John Manzanilla 20 years of age, born on

December 01, 1996 grew up in Gov. A. Carpio

Street, Brgy 4 Sto. Tomas Batangas. He finished

his secondary education at La Consolacion

College Tanauan. Currently taking up Bachelor of

science in Industrial Engineering at Lyceum of the

Philippines University Laguna. Member of the

Lyceum of the Philippines Industrial Engineering society. He has a knowledge in

using different software application such as Minitab, promodel, autocad, POM-QM,

Microsoft Office (word, excel, powerpoint) SAP. After graduating, he would like to

take up Mechanical Engineering, then find the job that he could apply all the

knowledge he learned. He also dreamed about touring around the world for

business purposes.