A systems study on the product of ceramic floor tiles of Mariwasa-Siam Ceramics, Inc.

Executive Summary. Mariwasa Manufacturing Incorporated (MMI) established in March 1996 is one of the pioneers in the Philippine ceramic tile making industry. A series of expansion programs and at the same time consistent consumer satisfaction paved the way for the company\u27s rise to the top of the industry. One of these expansions gave way for the unification of Mariwasa Manufacturing Incorporated (MMI) and Thailand\u27s Siam Cement Group of Companies thus creating a new company, Mariwasa Siam Ceramics Incorporated (MSCI). MSCI was launched in June 4, 1997 to cater to the fast growing needs for ceramic floor tiles. As such, MSCI uses the most advanced technology in terms of manufacturing processes for ceramic floor tiles ever known to the country. The industry\u27s growth highly depends on the trend in the construction sector. In the past years, the increase in construction activities such as condominiums, and shopping malls made way for the expansion of the market for structural clay materials. With this increasing demand for ceramic tiles, MSCI is unable to meet these increasing customer demands by 7.02% incurring an opportunity loss of Php 20,261,371.49 due to unmet demand that the company is currently experiencing. Based on the work sampling done on the company, it was verified that failure of workers to set correct machine settings and failure of the maintenance department to follow preventive maintenance schedule were the main causes as to why the company is unable to meet customer demands. A number of alternatives were formulated to solve the present problem the company is facing. After evaluating each alternative using KT Analysis, it was surmised that implementation of Total Productivity Management (TPM) was the best solution to work out the problem that the company is facing. A cost benefit analysis was done to assess if the proposed solution could benefit and solve the unmet demand problem of the company. From here, it was determined that an initial investment of Php 206,400 and a yearly cost of Php 81,198 would be needed to implement TPM. However, it was established that the benefit the company would gain from this proposed solution is actually Php 22,261,371,49, which actually outweighed the investment. Thus, it was concluded that TPM should be implemented in the company. The complete implementation of the proposed solution could be done only after 5 years. This would take some time to implement because TPM is so broad and hard to implement. Then again, the benefit TPM would bring to the company is so great that 5 years of implementation can be disregarded but MSCI must do its part in assuring if indeed the problem is being solved by TPM