A system study on the manufacturing of playpens of CLC Marketing Ventures Corporation

The study is concerned with CLC Marketing Venture Corporation (CLCMV), a manufacturer, exporter and distributor of metal-based home, infant and office systems furniture. The area of concern for the study would be the Giant Carrier Playpen Production System as the playpens contribute 30% of the overall revenue for the study period. With the financial ratios favoring the company and with good opportunities available for the furniture sector, the proponents see the scope of the study as a logical choice. After the system processes were observed, times documented and laid out in different tables and charts, an appraisal of the processes was conducted. The main problem of the system was identified to be its failure to meet quota (reaching only 84.95%) without overtime resulting in additional costs that amount to PhP390,600 annually. After identifying the problem, three valid causes were identified namely work starts late and ends early (28% of the problem), careless handling of WIP (32% of the problem), and numerous delays present in operation (40% of the problem). From the alternative solutions, several were chosen namely re-orientation of line leaders and production supervisors, purchase of bulletin boards for each line for output, conducting a monthly performance evaluation for each line, implementation of recommended batch sizes, use of label cards and batch carts, and use of mistake-proofing diagrams in workstations. All solutions can be implemented in less than 6months with a net present value (NPV) of Php 2,316,543.41 for 5 years, and simple payback of 0.1047 years, or 1.2564 months