A system study on the production system of Felicita Ventures Philippines Company LTD

This research studied the operations involved in the siopao and siomai production of Felicita Ventures Phils. Co. Ltd. After data gathering and observation, the researchers performed a SWOT analysis on the company and were able to find problems in bad outputs unmet target production, raw material wastes, and manpower overtime. Through the use of WOT-SURG analysis, the weaknesses, opportunities, and threats are all evaluated with respect to their seriousness, urgency, resource availability, and growth. This resulted to the problem of having a 7.52% deviation from the target production and the current production for both the siomai and siopao products being prioritized, which incurs an opportunity cost of Php415,045 annually. A cause-and-effect diagram was then created in order find out the root cause of the said problem in terms of man, machine, material and method. The final cause and effect diagram was obtained after careful validation and verification and was able to identify the causes of the deviation between the current and target production which are: improper job assignment, unmet quality standards due to machine and method, wasted raw material, and delays in the siomai filling section and siopao making section. All possible solutions for each of the causes were generated and Kepner Tregoe Decision Analysis (KTDA) was used in determining the best solution given the criteria for musts and wants. The solutions that were chosen are: longer time between job rotation, use of steam temperature gauge, use of tray template guide, use of scraper, method improvement, and use of kitchen timer. A cost and benefit analysis was done for all of the solutions in order to foresee the plausibility of the implementation of the solution. A total cost of Php5,480 was computed while a total benefit of Php513,415.55 was realized through the solutions. Additionally, annual cash flows resulted to Php512,829.55 while the net present value of the solutions had a value of Php2,046,176.94. Aside from allowing the current production to meet the target production, the cost benefit analysis renders the solutions plausible to implement