A system study on the services department of the metal sheet fabrication of Asiaphil South Luzon, Inc

Asiaphil South Luzon, Inc. is a metal sheet fabricator that produces over 4,000 metal sheet products located at Sto. Tomas, Batangas. This study deals with the production of metal sheet products, more specifically all projects that are producing Electrical Enclosure from January to December 2016. The problem statement was that it took an average of99.53 minutes to process a part exceeding the standard of 48.5 minutes by 51.03 minutes resulting to an opportunity cost of Php88,450.56. The gap of 51.03 minutes rooted from the following sections in the production area: Punching and Shearing Section, Bending Section, Welding Section, Grinding Section, and the Powder Coating and Oven Section. The root causes of these process were defined using a Why Why Diagram. In order to solve the root causes, the researchers generated four sets of alternative solutions and were evaluated using the Kepner-Tregoe Decision Analysis. The winning alternative solution was mostly about changes in the process steps, layout in of the machines, buying spare parts, and buying new equipment. To know how much time was reduced from the system, a simulation of solutions that were small and easy changes in the system was done. From the alternative solution, the investment cost is Php250,266.90 with recurring costs of Php9,112.96 per year. However, the relevant benefits of this system were that the annuity will be Php1,032,088.20 with a payback period of2.51 years. The future worth on the other hand will be Php29,003,910.05