A system study on the shearing and rollforming facility of Mindanao Steel Corporation

Mindanao Steel Corporation is a manufacturer of quality pre-painted galvanized iron roofing materials and steel roofing accessories. It was established in 1973 in the province of Misamis Oriental in Mindanao. The company is under the F. Jacinto Group Inc., one of the largest business conglomerates in the Philippines. The group performed a system study on MSC and tackled only the shearing and rollforming department found at Novaliches, Quezon City. After weeks of observations, interviews and data collection, the group came up with concerns regarding the production process of the three machines namely the Automatic, Australian and Kawasho through the use of the WOT-SURG Analysis. In pinpointing the direct causes and effects of the problem the group used the Cause and Effect Diagram or Ishikawa Diagram. The problem reached by this step was under-utilization of the three machines. Instead of a 100% machine utilization the company experiences only an 80.53% average machine utilization. After further analysis the true causes that contributes to the problem on machine downtime are: the feeding of coil to uncoiler, transportation of piled cutsheets ad machine repairs. Such move led to choose purchasing of 3 new double coil uncoiler and a new overhead crane as well as the implementation of a preventive maintenance program as best solutions to the problem. The effectiveness of the proposed system was verified through the simulation program on the production process. Basic parameters, considered were the number of orders that arrived, set-up time, total operating time and net operating time. Such parameters were based on the data provided of incoming orders and the time study conducted. The simulation run of the proposed system was 300 working days for 30 repetitions. Results showed that average utilization of each machine is increased to 94.64% for Automatic, 99.11% for Australian and 94.60% for Kawasho respectively. The implementation of the proposed system incurs costs and benefits for the company. The total cost of the proposal to the company, in terms of initial investment, is computed to be P 1,201,500.00. The yearly costs of sustaining the proposal is P 145,191.06. With the proposed system, the quantitative benefits were computed totalled P 359,415.18. The company will receives a total Net Present Value of P 114,811.16 for the whole ten year duration Implementation plan includes: first, presenting the study to the top management then to the executive board of the F. Jacinto Group, second, purchasing of three double coil uncoilers, OH crane and the performance of the preventive maintenance program. It was concluded that the proposal of the group be implemented for it will help the company to increase machine utilization