A system study on IC Chemicals, Inc.

The study focused on IC Chemicals production system of the waterproofing products. The background profile of IC Chemicals, Inc. was obtained and the present production system was documented through the use of PRIME-U partitioning method and other work measurement techniques (Atienza, 2011). Problem prioritization techniques such as SWOT, successive short-listing, and WOR-SURG were used to determine the problem statement. The following problem statement was found to have the highest overall WOT-SURG rating: The daily average mixer downtime of 74 minutes exceeds the maximum mixer downtime of 58 minutes. Further analysis revealed that 84% of the problem were caused by the following: replacement of mixers, problem was misdiagnosed, waiting for technician, gears jammed, accumulation of dirt in wiring, broken transformer, loose belt, waiting for spare parts, and broken belt. The proposed system are: (1) implementing standard maintenance and repair procedure and schedule (2) Kanban inventory system and, (3) training workers for additional tasks. The quantitative cost-benefit analysis revealed a favorable net benefit. Implementation of the proposed solutions is expected to reduce the mixer downtime by 55%. Further, annual benefits of Php1.5 million was computed with a net present value of Php4.8 million in 5 years