A system study on the viscous liquid production department of JAD Company, Inc.

Executive Summary. This study is concerned with the system study on the viscous liquid production department of JAD Company Incorporated. The problem being addressed is the raw material loss of 5.12% that exceeds the allowable limit of 3% for JAD\u27s production system of viscous liquids from Oct. 1999 to September 2000. It is a serious and urgent problem because this entails cost for JAD production. The system management and these writers believe that they have significant time and resources to solve this problem. The problem has the following specifications: What: the raw material loss pertains to the bulk loss in the production of viscous liquids. The bulk is the mixture after all raw materials are mixed in the SJKs. Where: the loss happens when the expected output is larger than the actual output. When: the loss has been occurring since the start of production of viscous liquids. How Much: the average loss is 5.12% Its initial causes are: 1. Flashing 2. Lack of storage kettles 3. Lack of bottles 4. Wrong measurement of raw materials 5. Wrong production 6. Spillage or mishandling The following are recommended to fully solve the problem: 1. Improve production policies and sequence scheduling 2. Improve communication and visual tools of the production supervisor and production area These solutions are expected to result to the following: An initial capital investment of Php 63,052.20, additional operating expense of Php 14,867.04 annually 3. Qualitative benefits of additional monitoring of production area, improve its ability to schedule job orders, instill discipline and responsibility to the planner and supervisor, accessibility of the information needed by the production area workers, easier comprehension of the on-goings of production area. This implementation of the recommended solutions is proposed to start on September 10, 2001 for the trial run and on February 10, 2001 for the final implementation