A systems study on the plastics division of Louison Manufacturing

This systems study discusses the present set-up of Louison Manufacturing. The Company Profile is presented, followed by the Industry Profile. The Company Profile includes the history, organizational structure, products rendered and financial ratios and analysis. The Industry Profile encompasses the status of the company, major players in the industry, economic indicators, strengths, weaknesses and growth of the industry.The present system discusses the man, machines, materials and methods involved in the production of its plastic products. Based from the present system, the strengths, weaknesses, opportunities and threats are identified. The documentation of the present system familiarized the group with the production process. The analysis led to the discovery of a major recognized problem of the company, that of unmet customer orders.There are two causes that are identified as the root causes of unmet purchase orders. These are the wastages of raw materials due to late delivery and poor inventory system. From these causes, the alternative solutions are presented to control wastages and eliminate shortages of raw materials. These alternative solutions were compared against each other wherein the musts and wants were utilized as a basis.The proposed solutions are made based in the its implementability, profitability, and financial feasibility. The solution proposed for the minimization of the occurrence of raw material wastages include implementation of the Quality Improvement process which comprises of four major activities, which are the statement of the company\u27s quality policy, a quality awareness program, implementation of QC Circles and the goodhousekeeping/5S program. Another is to add an alternative supplier, to avoid late deliveries of raw materials. The use of an inventory record to improve the inventory system was proposed to eliminate shortages of raw materials during production.The Cost and Benefit analyis is presented after the discussion of the proposed system. The last two parts of