A Study on Eliminating the 9.

23% Production Loss in producing Nesrack Base

amounting to Php693,123.75 from October to December 2014.

A company study presented to the faculty of the

College of Engineering, Architecture, and Technology

De La Salle University-Dasmariñas

Dasmariñas, Cavite

In Partial Fulfillment of the Requirements for

Motion Time Study

Submitted by:

Borata, Cathlyn E.

Laceda, Trishia Jane E.

Mojica, Ma. Monique

IEE31

Submitted to:

Engr. Ma. Soccoro M. Bunda

February 2015

1
 Table of Contents
CHAPTER I...................................................................................................................... 4

INTRODUCTION.......................................................................................................... 4

BACKGROUND OF THE STUDY.................................................................................4

STATEMENT OF THE PROBLEM............................................................................... 5

OBJECTIVE OF THE STUDY.......................................................................................5

SCOPE AND LIMITATION............................................................................................6

SIGNIFICANCE OF THE STUDY.................................................................................6

DESIGN AND METHODOLOGY..................................................................................8

DEFINITION OF TERMS..............................................................................................8

CHAPTER II................................................................................................................... 10

FINDINGS AND ANALYSIS........................................................................................10

Table 1.1 Production Loss..........................................................................................10

Table 1.2 Summary of Income Loss...........................................................................11

PROCESS FLOW CHART..........................................................................................12

Table 1.3 Time Study Table........................................................................................14

Figure 1.1 Operation Process Flow Chart of the Nesrack Base.................................17

Figure 1.2 Data for Unorganized Arrangement of Materials.......................................18

Table 1.4 Data for Unnecessary Activities/Operations................................................19

Table 1.5 Data for Machine Malfunction.....................................................................20

Figure 1.3 Data for Machine Malfunction....................................................................21

Table 1.6 Data for Units Affected................................................................................23

FISHBONE PERCENTAGE DISTRIBUTION..............................................................24

FISHBONE DIAGRAM................................................................................................25

PROBLEM TREE ANALYSIS.....................................................................................27

2
 PROBLEM TREE ANALYSIS.....................................................................................28

OBJECTIVE TREE ANALYSIS...................................................................................31

CHAPTER III.................................................................................................................. 34

ALTERNATIVE COURSES OF ACTION....................................................................34

ACA#1 Implement Sorting Method in the Materials....................................................34

Proposed Process Flow Chart....................................................................................34

Proposed Sorting Method and Labeling......................................................................35

ACA#2 Give Sanctions............................................................................................... 36

Proposed Sanctions, Conditions and Rules................................................................37

Proposed Violator’s Form........................................................................................... 38

ACA#3 Preventive Maintenance.................................................................................39

Proposed Monitoring Sheet for Preventive Maintenance............................................39

Cost – Benefit Analysis...............................................................................................41

Alternative Courses of Action......................................................................................41

CHAPTER IV..................................................................................................................42

CONCLUSION............................................................................................................42

RECOMMENDATION.................................................................................................43

Chapter V....................................................................................................................... 44

DETAILED PLAN OF ACTION...................................................................................44

CHAPTER VI..................................................................................................................46

APPENDICES.............................................................................................................46

3
 CHAPTER I

INTRODUCTION

Okada Industry Philippines Corporation is located in Brgy. Conchu, Trece

Martires City, Cavite. It is a manufacturing company engaged in the production of many

specific metal products, which is for both export and local quality. These products are as

follows: Nesrack, Steel Crates, Stage Rack and Other Metal materials that needed

specifically in arranging specific items in the company.

Okada Philippines Corporation Factory have 2 sections in terms of manufacturing

process, 1st is the cutting process in which the raw materials are set to cut in specific

measurement in order to create an existing item and 2 nd is the assembly section where

in the finished cut raw materials are ready to weld in order to create a specific item.

BACKGROUND OF THE STUDY

Since Okada Industry Philippines Corporation is also one of the suppliers of

many manufacturing companies both local and foreign, they are also experiencing

production problems which can be associated with the 4M’s inside the company. This

study focuses on the production of Nesrack base that are the items mostly

manufactured by the company.

4
 The purpose of conducting this study is for the researchers to be able to

generate possible alternative solutions to eliminate the production loss of the company.

It will benefit the researchers through being equipped with the lessons they have

acquired during the completion of this study and it will also benefit the company through

suggestions that this study may give in aid to the current production situations they are

experiencing.

STATEMENT OF THE PROBLEM

Okada Industry Philippines Corporation is experiencing a Production Loss of

9.23% in producing Nesrack Base amounting to Php693,123.75 from October to

December 2014.

OBJECTIVE OF THE STUDY

General Objective

To eliminate the 9.23% production loss in producing Nesrack Base amounting to

Php693,123.75 from October to December 2014.

5
 Specific Objective

 To implement sorting method in the materials

 To give sanctions

 To provide preventive maintenance

SCOPE AND LIMITATION

This study focuses only on the production of the parts of Nesrack Base

manufactured at Okada Industry Philippines Corporation. The data gathered for the

completion of this study is based on the actual production report of their production

manager through the months of October to December 2014.

SIGNIFICANCE OF THE STUDY

To the Company

This study will serve as an aid for the current situation problems faced by the

company regarding the Nesrack Base process system. The attainments of maximization

in productivity as well as the reduction of opportunity loss are the improvements to be

made in the company’s operational system. These are also the goals of this study.The

results in the future and in the long run will also have positive outcomes for the

company such being capable to comply with the requirements of International Standard

Organization.

6
 To the Students

This study will serve as a preparation for the students in experiencing and

applying the principles and theories they have learned in the classroom that eventually,

will be used in the field. Also by gaining knowledge on the problem that the company is

experiencing at the moment, it will help the students in being familiarized with the

different approaches that they could use in the field of work that an Industrial Engineer

does. Moreover, this study will enlighten them to work more effectively and at the same

time efficiently.

To the Readers

This study will enlighten our readers on the essence and importance of efficiency

and effectiveness for the productivity improvement of a company. Readers will also be

able to get insights on the importance of time in regards with production and concepts

as well as its connection to the production loss of a company. And lastly, it will broaden

their knowledge about Nesrack Base and its processes that readers can use as a basis

whenever they plan to have a business of their own.

DESIGN AND METHODOLOGY

Interview

Data was gathered by the researchers through a series of interviews done with

Roger Dela Cruz, Production Head (Okada Industry Philippines Corporation) regarding

the company profile, products, machines and processes involved in the manufacturing

of those products as well as other information necessary for the study.

7
Below are some of the questions asked:

1. What are the manufacturing processes involved in the production?

2. In what part of the production do you usually encounter problems?

3. Do you have a “Standard time” for operation? Does it followed by the operators?

4. What is the company’s target output and actual output per day?

Research

By analyzing the company’s current situations, the main problem can be known

and the causes leading to that problem are identified. Alternative courses of action are

formulated that may be able to give solutions to the main problem. The completion of

this study is achieved through the use of articles, books, documents, charts, thesis

researches and related files and the internet.

DEFINITION OF TERMS

 Nesrack is a free universal movement, with 2 functions of the container and

storage shelf.

 Cycle time is the period required to complete one cycle of an operation; or to

complete a function, job, or task from start to finish. Cycle time is used in

differentiating total duration of a process from its run time.

 Lead time is the latency (delay) between the initiation and execution of a

process.

8
 Planning is the process of thinking about and organizing the activities required to

achieve a desired goal and it involves the creation and maintenance of a plan.

 Production Lossis a disruption in normal operations that leads to inefficiency.

 Raw materials or feedstock is the basic material from which a product is

manufactured or made, frequently used with an extended meaning.

9
 CHAPTER II

FINDINGS AND ANALYSIS

Table 1.1 Production Loss

Months Number of Target Actual Output Percentage

(2014) Working Output Output Difference Loss (%)
Days
October 25 2000 1811 189 9.45%
November 24 1920 1763 157 8.18%
December 18 1440 1291 149 10.35%
Total 67 5360 4865 495 27.98%
Average 22 1787 1622 165 9.23%
Approved By: Roger Dela Cruz
Okada Phils. Corp – Production Head

Table 2.1 shows the production loss of Okada Industry Philippines Corporation in

producing Nesrack Base from October to December 2014. Summarized in the

table are the target and actual numbers of Nesrack Base and the productivity

loss. The total actual pieces per month are the monthly production of the

company. The total target pieces per month are the amount ordered to the

company or it is the target number to be produced. The production loss of the

company for July October to December has an average of 9.23% which means

that the company does not meet its standards. In computing for the Production

Loss (per month), here is the formula.

Computations:

Production Loss % = (Total Target Output – Total Actual Output) / Total Target

Output x 100%

10
 = 1787 – 1622 / 1787 x 100

= 9.23 %

Table 1.2 Summary of Income Loss

Month Total Output Cost per piece Profit Loss

(2014) Difference (Php) (Php)

October 189 1,400.25 264,647.25

November 157 1,400.25 219,839.25
December 149 1,400.25 208,637.25
Total 495 1,400.25 693,123.25

Approved By: Roger Dela Cruz

Okada Phils. Corp – Production Head

Formula:

Profit loss = Total Output Difference x Cost per Piece

1.2 shows the summary of income loss from the month of October up to

December 2014. The company is experiencing 398,846.25 by multiplying the total

output difference to the cost per piece and getting the total sum of the profit loss of

October to December 2014 it will get the total profit loss.

11
PROCESS FLOW CHART

START

CUTTING

FRAMING

INSPECTION

NO GOOD
GOOD

FINISHING

12
 Table 1.3 Time Study Table

STANDARD OUTPUTS (given by the company) : 80 pieces per day

Legend:

Yellow Unnecessary operations/activities done by the operator

Red Operation that has longer work

13
Observers: Borata, Cathlyn; Laceda, Trishia; Mojica, Monique Operators Name: Bianco, Crisaldo; Lozada Jemuel; Serdena Joel; Sequero, Noel

Operation: Nesrack Base Operation Machine Name: Mig Welding Machine

Observations/ Trials (seconds)
Total Ave. Standard
NT
Operations Operators Elements observed time Time
1 2 3 4 5 6 7 8 9 10 time

Get the
rectangular pipe 12.53 13.3 12.25 11.2 13.39 12.3 11.28 10.3 13.37 13.29 123.21 12.32 11.69 12.86
and place in the
cutting table

Push the
rectangular pipe 3.28 3.2 4.23 4.22 3.21 3.19 4.9 4.18 4.22 4.68 39.31 3.93 3.73 4.10
Blanco,
near the cutting
1 Crisaldo &
blade of the
Lozada,
machine
Jemuel

Pull down the

handle to cut the 6.21 7.19 6.95 7.1 7.13 7.85 6.89 6.11 7.16 7.1 69.69 6.97 6.62 7.28
rectangular pipe
to its desired
length

Search for
34.33 26.21 22.54 13.54 38.15 25.03 159.8 26.63 25.3 27.83
rectangular pipes

Get the
17.06 25.31 32.6 32.7 24.78 26.38 26.83 16.82 21.47 19.79 243.74 24.37 23.15 25.47
rectangular pipes

Assemble the
rectangular pipes
35.67 32.53 29.69 28.9 31.12 33.61 30.42 30.19 32.43 33.67 318.23 31.82 30.23 33.25
on the framing
table

Chatting
52.4 61.37 66.9 54.62 235.29 58.82 55.88 61.47

Get the mig 1.62 1.58 1.55 1.52 1.49 1.53 1.58 1.56 1.53 1.57 15.53 1.553 1.48 1.63
welding machine

14
 Turn on the
1.3 1.28 1.25 1.27 1.25 1.28 1.26 1.24 1.29 1.27 12.69 1.269 1.21 1.33
welding machine
Serdena, Joel
2 & Sequero,
Noel
Spot Weld 36.45 23.98 28.57 34.67 38.45 27.15 33.48 29.14 31.38 29.24 312.51 31.25 29.69 32.66

Full weld(top) 106.5 62.72 91.9 88.6 102.1 90.42 96.39 86.35 93.15 84.69 902.87 90.29 85.77 94.35

Turn the frame 8.23 8.33 8.2 8.22 8.15 8.18 8.19 8.25 8.17 8.11 82.03 8.203 7.79 8.57

Full weld egawr

107.1 66.42 92.35 99.83 87.59 83.59 79.14 80.29 74.56 858.5 85.85 81.56 89.72
(bottom) 87.63

Full weld
110 105.8 107.3 109.7 106.6 108.4 106.5 105.6 105.8 105.5 1071.16 107.1 101.8 111.98
(sidings)

Removing of
5.31 4.61 4.59 14.51 4.84 4.6 5.06
gloves

Texting 65.43 53.47 51.62 170.52 56.84 54 59.4

Putting on the
6.13 5.35 5.02 16.5 5.5 5.23 5.75
gloves

Weld Steel plates

on its designated
35.57 36.15 34.17 34.58 35.01 35.21 34.47 34.19 34.69 34.87 348.91 34.89 33.15 36.47
place on the
nesrack

Antonio,
3 Jenalyn & 150.7 142.9 148.4 150.3 145.6 142.6 146.9 148.6 147.5 149.7 1473 147.3 139.9 153.89
Caoile, Inspection
Anthony

De Fiesta
4 Vicente Jr. 130.6 135.6 132.9 127.4 124.8 131.4 128.7 127.5 129.6 128.6 1297.04 129.7 123.2 135.52
Grind the welded
parts

Total 797.15 666.29 779.99 897.18 742.91 717.09 807.35 769.61 866.05 721.67

NT = (AT)(RF)
RF: 95% AF:10% TOTAL ACTUAL TIME (SECONDS) 908.59
ST = NT(1+AF)

15
16
Figure 1.1 Operation Process Flow Chart of the Nesrack Base

17
 Figure 1.1 shows the Operation Process Chart in the assembly of Nesrack. It includes the time consumed in each operation.

Figure 1.2 Data for Unorganized Arrangement of Materials

Source: Okada Industry Philippines Corporation

Table 1.4 Data for Unnecessary Activities/Operations

Name of Get the Chatting Removing Putting on Total time

18
 rectangul
Operator of gloves the gloves (seconds)
ar pipes

Blanco, Crizaldo 0 0 0 0 0

Lozada, Jemuel 0 0 0 0 0

Serdana, Joel 210.56 100.643 14.51 16.5 512.733

Sequera, Noel 192.98 134.647 0 0 327.627

Antonio, Jenalyn 0 0 0 0 0

Caoile, Anthony 0 0 0 0 0

De Fiesta,
0 0 0 0 0
Vicente Jr.

TOTAL 840.36

Table 1.4 shows unnecessary activities done by the workers which are not included in

the standard operation given by the company.

19
Table 1.5 Data for Machine Malfunction

Time
Frequenc
Months Date Consumed Parts Affected
y
(secs.)
7 2055
October 3 21 2069 Welding Torch
30 2408
10 2209 Welding Torch
November 2
23 1801

2 1983 Welding Torch

December 2
11 1858

Total 7
Average 2.33
Table 1.5 shows the detailed occurrence of machine breakdowns during the

span of three months without preventive maintenance. Included are the actual time

consumed by the breakdown and also the units affected per month.

Figure 1.3 Data for Machine Malfunction

20
Wire Feeder – Welding Torch

Body Tip Insulation Joint

21
 Nozzle

Welding Tip

Source: Okada Industry Philippines Corporation

22
Table 1.6 Data for Units Affected

Month
Units
Affected Cost per Profit Loss
October November December Percentage
Piece (Php)

Man 68 42 51 1,400.25 175,013.75 32.53%

Method 71 74 64 1,400.25 225,473.16 42.22%

Machine 50 41 34 1,400.25 292,636.84 25.25%

Total 693,123.75 100%

Approved By: Roger Dela Cruz

Okada Phils. Corp – Production Head

Table 1.6 shows the total number of units affected in the months of October –
December 2014.

23
FISHBONE PERCENTAGE DISTRIBUTION

COMPUTATION

METHOD:

Method=

(Total Number of Units Affected in METHOD)

___________________________________
(Total Number of Units Affected in 3 months)

= ( 209 / 495 ) x 100

= 42.22%

MAN:

Man=

(Total Number of Units Affected in MAN)

________________________________
(Total Number of Units Affected in 3 months)

= ( 161 / 495 ) x 100

= 32.53%

MACHINE:

Machine=

(Total Number of Units Affected in MACHINE)

___________________________________
(Total Number of Units Affected in 3 months)

= ( 125 / 495) x 100

= 25.25%

24
FISHBONE DIAGRAM

Machine = 25.25%

Machine Breakdown

Okada Industry Phils.

Corp., is experiencing
9.23% production loss
in producing Nesrack
Base amounting
Php398, 846.25
Unorganized
arrangement
of materials

Unnecessary
Activities

Man = 32.53% Method = 42.22%

MAN(32.25%)

Every operation in the production of Nesrack Base are manually done and

finished thoroughly by the operator, which makes their role vital in terms of

production efficiency. Man is one of the factors that contribute to the production

loss in assembly process. Chatting, Gossiping and texting of the workers affect

25
the production by lessening the target output that must be accomplish because of

these they cannot focus on the given work and satisfy their monthly target output.

MACHINE (25.25%)

The machine used in assembling the Nesrack Base contributes to the

problem of the company. The Machine that was used experienced downtime due

to the breakdown of the parts of the machine.

METHODS (42.22%)

The researchers conducted motion and time study last January 17, 2014

which the recorded data shows that there is a contribution to the production loss

in Nesrack Base. With the given data, researchers analyzed the results if this

delay will lead to small or an even greater production loss. Whereas in Nesrack

Base process, arrangement of the product shows more delay which leads to

production loss.

26
PROBLEM TREE ANALYSIS

Causes
Unorganized
Unnecessary Machine Breakdown
arrangement of
materials Activities

Okada Industry Phils. Corp. is experiencing 9.23% production loss in

producing Nesrack Base amounting Php693,123.75

Profit Loss Customer Opportunity Loss

Dissatisfaction

Effects

PROBLEM TREE ANALYSIS

27
 The Problem Tree Analysis is a diagram that shows problems with its

causes and effects that the company’s facing which is gathered to form the main

problem. Afterwards, it is evaluated or analyzed.

Main Problem:

Okada Industry Philippines Corporation is experiencing 9.23% production

loss in producing Nesrack base amounting Php693,123.75 for the months of

October to December 2014.

Causes:

 Unorganized arrangement of materials

During the framing process there are two workers that are assigned in this area

and the material which is the rectangular pipe with different sizes are not organized or

not properly arranged. The observers noticed that in this element in which searching for

the right piece of metal is the one who contributes the cause of delay.

 Unnecessary Activities

Chatting, gossiping and texting as seen in table 3 is not necessary and not part

of the assembly process. It causes the worker to be slow that result to delay which

lessens the units produced by the workers which affects the production of the assembly

28
process. This also shows that with lesser units produced, the company would

experience production loss.

 Machine Breakdown

Second hand machines and the life span of it causes machine breakdown

that affects the production of the company. The machine breaks down frequently

every month meaning the maintenance of the machine is poor.

Effects:

 Profit Loss

Likely, as the delay occurs, the company’s production loss was experienced.

The target output is not being met which means that the potential profit of the

company is greatly reduced.

 Customer Dissatisfaction

Workers produce less than the standard because of the delay done by the

workers. Since the company is experiencing production loss, the customer/client

who ordered the products would be greatly disappointed or, in other words,

dissatisfied. This implies dissatisfaction to both the external and internal of the

company. When the internal customer is dissatisfied it is due to the delay caused

29
 by the worker that needs to finish a process before him. An external customer is

not satisfied because the target is not attained by the company.

 Opportunity Loss

When machine malfunction, productivity of the company suffers then

afterwards the company’s reputation in meeting the deadlines per contract will

undoubtedly fall. Slow production is a big factor of meeting these deadlines or the

target output which may result to opportunity loss.

30
OBJECTIVE TREE ANALYSIS

MEANS

Implement sorting Give Sanctions Preventive

method Maintenance

To eliminate the 9.23% production loss in Okada

Industry Phils. Corp. amounting to Php693,123.75

Profit Gained Customer Opportunity

Satisfaction Gained

ENDS

31
 OBJECTIVE TREE ANALYSIS

Possible solutions to the problems arise and gives way to the achievement

of the goals of the study are seen in the objective tree analysis.

General Objective

To eliminate the 9.23% production loss in Okada Industry

PhilippinesCorporation amounting to Php693,123.75.

MEANS

 Implement sorting method in the materials

As the researchers analyzed the study, arrangement process in Nesrack

Base section was currently has delays which need improvement. There is a way

to organize the materials that will be using in the production, which is Sorting the

metals according to their sizes.This will simplify the process and lessen the

manual work which causes delay in an operation and when the delays were

solved, the company benefits from it.

 Give sanctions

Unnecessary activities during the work must be avoided. So, the company

must give sanctions to those employees who will be caught to prevent the delay

in production the workers must be disciplined to work in consistent mode

throughout the shift.

32
 Preventive Maintenance

Preventive Maintenance should be scheduled and done regularly to

assure that the machine will be reliable enough to perform its function. Machines

should be given preventive maintenance once a week and every weekend so

that it would not affect the production

ENDS

 Opportunity gained

By adequate preventive maintenance, the company ensures the target

output is attainable and the errors or delay will be reduced. So as to say, the

profit will increase and the machines life lengthens in providing longer of

servicing the company.

 Customer Satisfaction

When the operators are well informed of the standard and of the sanction

they will experience in not following it, they will be more productive. The workers

will be more cautious in following the necessary activities. A well-disciplined

worker is efficient and effective in terms of productivity in products.

 Profit Gained

As the simplification in work method implemented, the company meets the

desired demands of the customers thus it will provide an outlook for the customer

to conduct positive business with the company. With this, an increase profit

gained.

33
 CHAPTER III

ALTERNATIVE COURSES OF ACTION

ACA#1 Implement Sorting Method in the Materials

Unsorted materials used in production leads the workers to search for the right

size of the rectangular pipes. Searching adds time to the production since the

rectangular pipes used for the nesrack base are all different but as observed physically,

some of the sizes were also the same.

Proposed Process Flow Chart

Cutting

Sorting

Framing

Inspection

NO GOOD
GOOD

Finishing

34
Proposed Sorting Method and Labeling

Sorting of Metals

Metal Size Labels

35
ADVANTAGES

 The materials will be easy to identify

 This will make the process faster

DISADVANTAGES

 Additional time for compiling the materials based on its size.

 Additional container for the sorted materials

Computation (Cost):

Container: Php 4,085.00

Label (printed and laminated): + Php 60.00

TOTAL COST Php 4,418.00

ACA#2 Give Sanctions

Using cellular phones and unnecessary activities of the workers were observed

inside the working area that contributes to the slow production causes the production

not to meet the number of target output. The company doesn’t have a policy that

restricts workers from using their phone during the production. Since we can’t avoid that

emergencies may occur, they are not prohibiting the workers in bringing their cellphone.

Thus, giving violations to those irresponsible workers who are fond of using their

cellphones for entertainment purposes inside the working area can be implemented.

36
They will get a written warning and deduction of salary must be applied as a payment

for their behaviors.think that phones will be prohibited inside the production. Giving

violations to those irresponsible workers must be implemented. They will get a written

warning and deduction of salary must be applied as a payment for their behaviors.

Proposed Sanctions, Conditions and Rules

Number of times caught Sanctions

1st Offense Verbal Warning

2nd Offense Will inform the Financial Head

3rd Offense Reduction of Wage

Sanctions and Conditions:

1. When first caught by the supervisor he/she will give a verbal warning.

2. For second offense, the supervisor will inform the financial head about the

employees who’s disobeying the rules.

3. On the third offense, there will be a reduction wage.

Rules:

1. Avoid too much chatting during working hours.

2. Avoid using too much cellular phones during working hours.

3. Wear prescribed uniform and safety equipments

4. Do not disturb other workers.

37
 Proposed Violator’s Form

Computation (Cost)

Violation Form: Php1.50 x 100 = 150.00

Total Cost Php 150.00

ADVANTAGES

 Increase number of outputs

 Productive Workers

 Workers can concentrate more

DISADVANTAGES

 Workers may be intimidated.

38
ACA#3 Preventive Maintenance

The torch welder of the welding machine contributes to production loss of the

company. Upon verifying the cause, it is suggested to have this plan of action to avoid

machine malfunction that leads to profit loss in Nesrack base production. The company

does not use any maintenance for their machineries. Since two welders are assigned in

most of the process in production, the longest phase which is the framing is the most

important phase because this is where the nesrack base is being assembled. This

process mainly requires two welders to finish the product faster. When the torch welder

fails, it often leads to downtime in production that sometimes only one welder will

continue the production while the other is fixing the torch welder. The researchers

suggest that having a preventive maintenance at least 3 times a month so it will prevent

failure in the parts of the machine and eliminate the production loss that the company is

experiencing.

Proposed Monitoring Sheet for Preventive Maintenance

39
Computation (Cost)

Monitoring Sheet: Php1.50 x 100 = 150.00

Total Cost Php 150.00

ADVANTAGES

 Increase production levels

 Avoid delay of production

 Decrease Chances of machine malfunction

DISADVANTAGES

 Additional Cost to the company

40
 Cost – Benefit Analysis

Alternative Courses of Action

ACA #1 COST BENEFITS

TANGIBLE INTANGIBLE
Cost of
container and
labels
Implement Php 4,418.00 - More products
Materials can be easily
Sorting Method found
produce
TOTAL:
4,418.00

ACA #2 COST BENEFITS

TANGIBLE INTANGIBLE
Cost of violation
forms Php
150.00

TOTAL: 150.00
- Workers will be more
Give Sanctions Higher Efficiency
cautious and
disciplined on the
workplace

ACA #3 COST BENEFITS

TANGIBLE INTANGIBLE
Cost of monitoring
sheets Php
150.00
Preventive TOTAL: 150.00
Maintenance - Higher productivity
Improve the machine

41
 CHAPTER IV

CONCLUSION AND RECOMMENDATION

CONCLUSION

Okada Industry Philippines Corporation is experiencing 9.23% production loss in

producing Nesrack Base for the months of October to December 2014. By conducting

motion and time study, the researchers were able to identify the cause of the production

loss. The researchers concluded that the problems in the Nesrack Base process were

unorganized arrangement of materials, unnecessary activities and machine breakdown.

Regarding this concern, this study was conducted to eliminate Okada Industry

Phils. Corp production loss and to provide alternatives and solution. The observers were

able to generate the possible alternatives and solutions to the problems observed.

 Alternative 1: Implement Sorting Method

 Alternative 2: Give Sanctions

 Alternative 3: Preventive Maintenance

42
RECOMMENDATION

The researchers recommended the Okada Industry Philippines

Corporation to implement the alternative courses of action provided; First, by

implementing sorting method to easily find and get the materials to be used in

framing phase. Second, give sanctions to the employees who are violating the

rules, and lastly, the usage of the method of preventive maintenance instead of

the existing method which is the corrective maintenance. Preventive

maintenance would also help to lessen the machine malfunction to avoid delay in

the process. Through the cost benefit analysis, the researchers can show that

the alternative courses of action are helpful to solve the production loss in the

company.

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 Chapter V
ACTIVITIES 1 2 3 4 5 6 7 8
Planning and
Preparing the
presentation
Presentation of the
planned action

Approval from the

administration

Implementation of
the proposed
alternatives in man
and machine
Purchased the
proposed sorting
machine

Evaluation
Monitoring

DETAILED PLAN OF ACTION

 Planning and Preparing the presentation

Collection of data should be established first, and then the data gathered

will be analyzed to identify the problems and to formulate possible solutions, and

lastly, the proposal and the details should be planned to be presented to the

administration of the company.

 Approval from the administration

 Implementation of the proposed alternatives course of action in man, machine, and

method

44
 The proposed alternatives course of action should be strictly followed after

the approval of the administration. It starts with informingand disseminating the

changes made in the company, and the implementation of the proposed ACA to

the workers then the performance and implementation.

 Evaluation

 Monitoring

These two last steps are for the continual improvement of the process,

the whole operation will be strictly monitored and evaluated.

CHAPTER VI

45
APPENDICES

46