A system study on the production process of Chemical Dispersions Inc. (CDI) Sakata Inx

Chemical Dispersions Incorporated (CDI) is into production of printing inks. The company was incorporated in September 1964 but in September 1992 entered into an agreement with Sakata Inx Corp. CDI has three sections in the plant namely the Paste Ink section, the Liquid Ink section and the Industrial Finishes (IF) section.The focus of the study is in the production department particularly the IF section where the company is experiencing a production delay of 10.76 of the total production in this department for the year 1994. This particular section was chosen because the production manager informed us that this is the particular section where delay is experienced the most. This particular section deals in the production of metal coatings. Since the company is experiencing delay the company is going into overtime which resulted to a cost of P 106,459.63 for overtime.After a thorough analysis of the problem it was found out that the true cause of the problem is the lack of an accurate forecasting method which contributes 67.68 to the problem. The subcause to this problem is the faulty analysis of the market trends by the company\u27s salesmen.The study was done with the purpose of eliminating if not minimizing the production delay that is currently being experienced by the company. The proposed solution involves the use of the Reorder Point for the company to know when to properly place their order of raw materials. It also involves the use of a new forecasting techniques which is the three period moving average. This was chosen on the basis of having the lowest MAD in comparison with the different forecasting techniques. A new policy on preventive maintenance was also proposed by the group. The implementation stage of the proposed system will take 8 weeks upon the approval of the proposal. Several recommendations were made like the application of the Computer Based Information System (CBIS) in the IF section and the implementation of the Total Quality Management (TQM) system