A System study on the production system of ZPI Philippines

ZPI Philippines Incorporated started its operation in 2001 as plastic injection molding company and is located at Philippine Economic Zone Authority (PEZA) in Rosario, Cavite. Its mission is to be the number one supplier of customized plastic products by providing high quality products at a lower or affordable cost. A system study was conducted in order to identify the problems encountered by the company. Based on the data collected, the problem identified was The production department of the company is incurring total cost due to reject rate exceeds the standards allowable reject rate by 2.6% from April 2009 to April 2010 representing an annual total cost of P 1, 108,186. The causes were identified and verified using cause and effect diagram and validation of production causes. The problems identified were damage injection screw, high moisture content after preheating, insert nut holder design and lack of skill for the workers. The solutions proposed to address the problems were: a) replacing the injection screw of machine 2,3 and 4, b) redesign the insert nut holders, c) worker orientation, increasing the temperature of preheated resin. The proposed solutions will require minor investment to implement. The damaged injection screw will be replaced in machine 2,3 and 4 to prevent backflow. The company currently has two available spare parts and would need to make an order for another injection screw that would cost P 60,000/piece, which also includes shipping cost. The expected reduction on short shot reject is 85%. The preheating temperature will be changed the standard preheating temperature required prevent high moisture content is 80 degrees Celsius and expected reduction of reject due to moisture content is 95%. The insert nut holders design will be changed so that will prevent workers from placing the insert nuts in the wrong position. The insert nuts can only be placed in one position and will not fit if placed improperly. Proper orientation will teach the regular and contractual workers the proper way of unloading the plastic product in the mold. They will be taught in the thoroughly using the Operation Standard Guide (OSG) in unloading. Materials cost needed are P 63, 850. Updating the preventive maintenance schedule will ensure early detection of potential problems so it will be immediately worked on. The schedule to be used will depend on the machine age. The material cost needed to fully implement the new schedule is P 23,850. The cost that will be incurred to execute the proposed solutions is P174,550 and a benefit of P 796,130.30. The cost incurred by the company will be recovered within a year after the implementation of the solutions