A systems study on the production department of LC Enterprises

Executive Summary. LC Enterprise is a company that manufactures quality garment since 1985. The garment includes baby wear, sleepwear and undergarments. In 1990, the company became the subcontractor of AVON on its 6 brassiere types, upon the recommendation of the mother company of LC enterprise which is the Saldana and Company Inc. The proponents have observed and assessed the present system of the company. In 1996, the company has production demand backorders at the rate of 12.42%. In 1997, the production demand backorder has reached the 27.32% mark. After determining the problem of the system, the initial causes and effects of the problems were identified. Based on the validation of causes of the problem, insufficient production capacity as well as no scheduling policy when demand exceeded capacity were the two main contributors to the problem. To address the problem identified, solution was made. The solution was operation mixing and machine rental. Operation mixing includes machine assignment and machine scheduling among the different operations in manufacturing brassieres. After the simulation was performed, it was determined that the production demand back order was eliminated