A system study on the production department of Cruzvale Incorporated

Cruzvale Inc. is a cotton blanket manufacturing firm owned and operated by Mrs. Leonor de Leon since the 1960\u27s. The company makes use of cotton waste as their raw material in making the blankets. Their production line consists of two types of blankets. They are the napped and summer blankets. Cruzvale, being a blanket manufacturer that belongs to the textile industry, encounters problems concerning its production department. Upon permission from the owner, Mrs. de Leon, the group was allowed to conduct a system study on the company. In the situation appraisal made during the study, it was discovered that the main problem of the company is that of defective which deviates from the given standard allowance of 1% or below for defective blankets. This resulted to an opportunity cost of P 138,379.97. The cause of this problem was mainly due to frequent machine malfunction and carelessness of the workers. To minimize the problem, the group proposed that work methods be implemented. Preventive measures would also be added to lessen the occurrence of machine malfunction. The company will be able to derive benefits if this proposed solution is implemented such as satisfying the given standard allowance of defective blankets, minimizing machine malfunction and improving work method