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Operations Planning and Control (OPC) Practicum Thesis
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Operations Planning and Control (OPC) Practicum Thesis



My college practicum study for the degree in Industrial Engineering (IE). It focused on Production/Operations Management issues, as well as other factors, in the manufacturing industry.

My college practicum study for the degree in Industrial Engineering (IE). It focused on Production/Operations Management issues, as well as other factors, in the manufacturing industry.



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Operations Planning and Control (OPC) Practicum Thesis Operations Planning and Control (OPC) Practicum Thesis Document Transcript

  • CHAPTER I THE PROBLEM AND ITS BACKGROUND1.1 INTRODUCTION Unilever is a multi-national consumer goods firm which is formed andowned by British and Dutch business partners. The corporation is primarily basedin Rotterdam, Netherlands and London, United Kingdom since it is a dual-listedcompany. Its products include foods, beverages, cleaning agents, and personal caremerchandises. It owns over 400 brands of goods, amongst the largest selling ofwhich are Aviance, Axe/Lynx, Ben&Jerrys, Creamsilk, Dove, Flora/Becel,Heartbrand, Hellmanns, Knorr, Lipton, Lux/Radox, Omo/Surf, Pond’s,Rexona/Sure, Sunsilk, Toni&Guy, TRESemmé, Vaseline, VO5, and Wish-Bone.These products emanate from different formulation, variant, and appearance. Consistent with its developing networks, Unilever established theircompanies in most continents all over the world. Philippines is one of the manycountries where Unilever has found opulent opportunity for huge investments andemployment. Unilever serves as a manufacturer/supplier of home care and personalcare brands together with food classified products in the Philippines. Itsoperations are subdivided into four companies: (1) Unilever Philippines, Inc. –Home & Personal Care and Unilever Food Solutions division located at UnitedNations Avenue, Paco, Manila; (2) Unilever RFM Ice Cream, also known as 1|Page
  • Selecta Factory, located at Manggahan Light Industrial Park, Manggahan, PasigCity; (3) Unilever Foods – Dressing Factory division located at Gateway BusinessPark, General Trias, Cavite. Unilever Philippines, Inc. has a total land area of 10,500 square meterswhich is mainly located in Paco, Manila. It employs over 2,000 employeesnationally. It has been a leader in introducing new technologies in the countryever since its existence. Unilever branch in Manila manages products which fall into three maincategories: Home Care, Personal Care (PC), and Food Solutions. Home Careoffers cleaning products used at households such as non-soap detergent (barand powder) and dishwashing liquid. Personal Care comes with products usedfor hygienic purposes such as soap, shampoo and conditioner, facial cleanser,toothpaste, body lotion, and deodorant. Under PC, there is a separate plant formanufacturing of roll-on deodorants named as “Deos City”. Food Solutions catersnutritious beverages and flavor enhancers such as iced tea, seasoning, andmayonnaise. Unilever branch in Cavite manages brands in two main groups: savoury,dressings & spreads, and ice cream & beverages. Savoury, dressings andspreads include variety of soups, sauces, snacks, mayonnaise, salad dressings,olive oil, margarines, spreads, and cooking products, such as liquid margarines,and some frozen foods. Ice cream and beverages include sales of ice cream,tea, weight management products, and nutritionally enhanced staples. 2|Page
  • 1.2 BACKGROUND OF THE STUDY Unilever Philippines, Inc. manufactures home and personal care productsranging from soap (Lux and Vaseline), shampoo and conditioner (Vaseline,Sunsilk, and Creamsilk), facial cleanser (Pond’s), toothpaste (Close-Up), bodylotion (Vaseline), and deodorant (Axe and Rexona). The demand for the company’s services to produce different variants ofroll-on deodorants is relatively high. The company cannot meet the job ordersbecause resources are being planned and managed inefficiently. Therefore,actual demand does not meet the target output. The concentration of the study ison the production of roll-on deodorants – Rexona Men Sport Defence RO (Roll-on) 50mL. Male variants and export-made deodorants are produced in Line 2 ofDeos City Production Area. It is an export product of the company whichexperience unavailability in raw materials (e.g. bottle and label), machinedowntime issues, delay in delivery, and production stoppages. Rexona Men Sport Defence RO 50mL undergo the following processes:preparation of raw materials (unscrambler machine), filling, capping, code dating,labelling, forming corrugated boxes (mechanical case packer/case erector), postpacking, and quality inspection. Raw materials used are bottle, cap, ball, violatorsticker, label, and chemical mixture. First, bags of empty bottles are beingdumped into the unscrambler machine. Next, bottles are organized by the bottlehopper and elevator in a single file motion. These bottles are being poured withliquid mixture through the filling machine. Balls (also called “roll-ons”) are injectedto the bottle to make it settled. Then, caps are tightened up to the bottle using the 3|Page
  • capping machine. Code dates (manufacturing and expiration date) are imprintedat the top of the cap. At that time, label and violator sticker are attachedcorrespondingly at the front and back surfaces of the bottle. Vision cameradetects reject deodorants due to label misalignment, cap issues, and code datedeficiencies. These are also subject to rework by quality assurance. Lastly, thesegood units are subject to final quality inspection. The company encounters 13.20% productivity loss in manufacturingRexona Men Sport Defence RO 50mL from the months of July to December2012. It is primarily caused by the following reasons: First, Shortage of RawMaterials – Bottles, Caps, and Labels (4.38%), for the reason that the stocks ofraw materials being supplied to them every month was delayed. The supplyneeded for mass production was not utilized properly. Moreover, based onforecast they will only order raw materials every two weeks; Second, Worn-outParts of Capping Machine (3.84%), due to exceeded lifespan of the certain parts.Design capacity of the machine is not met. Furthermore, it encountersbreakdown occasionally that leads to more downtime and low machine utilization;Third, Inaccurate Visual Detection of Vision Camera Sensor (3.36%), since thesensor experiences errors due to poor maintenance practice resulting to lowquality machine. Thus, the company must schedule maintenance consistently;Lastly, Operators not following Work Instruction (1.62%), because theyerroneously fix the settings of each machine. They commit mistakes due toincorrect reading of information or mistype of certain numerical values.Therefore, the whole production will be delayed due to minor stoppages. 4|Page
  • 1.3 STATEMENT OF THE PROBLEM Unilever Philippines, Inc. is experiencing 13.20% productivity loss inmanufacturing Rexona Men Sport Defence RO 50mL amounting to Php3,066,373.52 from the months of July to December 20121.4 OBJECTIVES OF THE STUDYGeneral Objective:  To minimize productivity loss by 87.72% in manufacturing Rexona Men Sport Defence RO 50mLSpecific Objectives: 1. To develop proper inventory control of roll-on deodorant raw materials 2. To improve production capability of the capping machine 3. To improve performance of the vision camera 4. To ensure discipline of the operators1.5 SCOPE AND LIMITATIONS The study focuses on the production line of Rexona Men Sport DefenceRO 50mL and all the other factors that contribute to the loss. It includes findingsand results based on actual observation of the whole operations, frompreparation of raw materials up to the delivery of finished goods. The study islimited to problems related to operations planning which contribute to the 13.20%productivity loss. The analysis of data was based on the production summary lastJuly to December 2012. 5|Page
  • 1.6 METHODOLOGY The following methods were used in gathering information to examine theproblem which the company encounters:1. Interviews With the assistance of production managers & supervisors, especially themanufacturing crew, the researcher has been provided data (company profile,machine specifications and breakdown reports, summary reports regarding theinventory of raw materials and delivery of finished goods, flow process chart, andothers) to clearly understand the problem situation. The following people have been consulted about the study: 1. Mr. Dodong Pagarigan – Assistant Production Engineer, Deos City 2. Ms. Trina Evangelista –TPM Secretariat, Deos City 3. Ms. Rica Torres – Document Controller/Production Admin 4. Mr. Marvin Gutierrez – SAP Analyst 5. Mr. Dexter Pineda – Maintenance Planner 6. Mr. Philip Nadela – Maintenance Engineer 7. Mr. Basil Rosacay – Warehouse Staff 8. Mr. Kenn Ante – OJT, Deos City *Source: Deos City, Unilever Philippines Incorporated, Paco, Manila2. Data Analysis One way to examine data is by using engineering tools, mathematicalmodels, and templates to improve the content of the study. Here are the lists ofmethods used: 6|Page
  •  Quality Tools Include flow chart, fishbone diagram, and control chart that supports and analyzes the data. These are also helpful in presenting solutions to the existing problem. Planning Templates These templates are used by the company which include Gantt chart, monitoring sheets, and scheduling software. It has been utilized by the researcher throughout the training hours. Mathematical Models Comprise of productivity formula, reorder point equation, simulation method, and bar graphs which present the results of actual observation in the production of Rexona Men Sport Defence.3. Internet and Literature Research A research was utilized to provide essential information to clearlyunderstand the condition of the company. Internet researches are useful for theterminologies of unfamiliar words, reading books regarding operationsmanagement topics help to understand the situation and learn the differenttechniques in solving problems. 7|Page
  • 1.7 SIGNIFICANCE OF THE STUDYTo the Company This study will help improve the manufacturing system of Rexona MenSport Defence. Hence, they can meet the production quota on the designatedtime as well as abide to the standard of the operations.To the Workers This study will help the workers to make their easier and be more efficientduring working hours. They can readily assess the present problems in their workarea by recommending appropriate solutions.To the Students This study will serve as a background and backdrop to studentsconcentrating in the field of Operations Management which can be used forfuture reference and studies. They may also suggest new concepts by proposingother solutions to the existing problem.To the Readers This study will help the readers to gain knowledge on the field ofProduction and Operations Management. They will gain information on how toresolve problems that give rise to productivity loss. 8|Page
  • To the Researchers This study will provide a venture for the students to apply what they havelearned in Industrial Engineering like Operations Management, Methods Study(MTS), Human Factors Engineering (Ergonomics), Quality Control andAssurance, and Operations Planning. The actual observation is an introductionand experience for real life industry practice.1.8 DEFINITION OF TERMSActual Output is the amount of a product that a production facility actually yields, as opposed to the amount that it could produce if it were to run at full theoretical capacity.Buffer also called as Safety Stock. A supply of inputs held as a reserve to safeguard against unforeseen shortages or demands.Capacity is the total productive capability of a system during a unit of time.Capping is a process which inserts ball onto the bottle and covers it with cap. It is done after the filling process.Case Packing is the process of automatically forming, erecting, and sealing the corrugated box using the MCP machine.Code Dating is the practice of placing a code indicating the date and site of packaging on certain products.Delay is the interval of time between two events; postponement.Deodorant is the substance applied to the body to prevent body odor caused by bacterial growth and the smell associated with bacterial breakdown of 9|Page
  • perspiration in armpits, feet, and other areas of the body. This substance is often combined with an antiperspirant, for inhibiting or masking perspiration or other bodily odors.Deos City is a separate division under Personal Care Department. It has been entitled as such since the production of roll-on deodorants is isolated from the main plant.Design Capacity is the total achievable capacity under perfect conditions; operating at design capacity essentially means operating at the organization’s productive limits and can cause rapid wear and breakdowns.Dispatch means to relegate or send off to a specific destination.Downtime is the period of time when a machine/equipment is not operating, especially as a result of malfunction or breakdown.Efficiency is the comparison of what is actually produced or performed with what can be achieved with the same consumption of resources; “Doing the things right.”Filling is a process wherein chemical mixture of deodorant is being poured into containers.Inventory refers to a companys merchandise, raw materials, and finished and unfinished products which have not yet been sold.Labelling is the process of displaying information about a product on its container, packaging, or the product itself.Lead Time is the amount of time that elapses between when a process starts and when it is completed. 10 | P a g e
  • MCP refers to Mechanical Case Packer. It is a machine that forms corrugated boxes.MSO refers to Manufacturing Statement of Origin. It is a specified document certifying the country of origin of the merchandise required by certain foreign countries for tariff purposes.Paraben is a class of chemicals widely used as preservatives by cosmetic and pharmaceutical industries.Planned Output is also called forecast demand; estimate of expected demand over a specified future period.Post-packing is often called as final packaging; the process of arranging and lifting the series of bottles and placing into the erected cases by using robotic mechanism.Productivity Loss is defined as the reduction in production/efficiency caused by unanticipated conditions; these may include scheduled overtime, material delivery problems, and adverse weather. It is the difference between the actual productivity observed and the productivity that might reasonably have been expected if not for the unanticipated condition.PC is an extension of the term – Personal Care.Reorder Level (or reorder point) is the inventory level at which a company would place a new order or start a new manufacturing run.Rexona Men Sport Defence is a variant of a famous deodorant brand, Rexona, manufactured by Unilever Philippines. It is primarily exported to Asia Middle East countries.RO is a type of deodorant which is also recognized as “roll-on”. 11 | P a g e
  • Scheduling means determining when an activity should start or end, depending on its duration, predecessor activity and relationship, resource availability, and target project completion date.Task Error includes doing work incorrectly, work not requested, work in the wrong order, or working too slowly.TPM refers to Total Productive Maintenance. It is a philosophy used to improve machine availability through better utilization of maintenance and production resourcesTraceability is the ability to track the components used in production through their inclusion in a finished product and from there to specific customers.Triclosan is a white powdered solid, organic compound with a slight aromatic/phenolic odor. It has been shown to be effective in reducing and controlling bacterial contamination on hands and on treated products.Variant means variation or type of product based on target, fragrance, scent, flavor, or others.Violator Sticker refers to tag/label which indicates instruction on how to use the product; it designates a custodial mark of the company’s brand.Vision Camera is a device which collects data and forms an image that is interpreted by a computer to determine an apt position of an object.Worn-out denotes thoroughly exhausted or spent spare parts; used until no longer usable or effective. 12 | P a g e
  • CHAPTER II REVIEW OF RELATED LITERATUREProductivity in Manufacturing Industry In today’s industrial era, manufacturing companies have sprouted andspawn everywhere. Due to bigger demands of products and services,businessmen are more eager to enhance their markets and competitiveness. Theconcept of production system has been widely used in all countries. The mostpopular concept is the bulk system or “mass production”. Mass production is the manufacture of products in large amounts throughthe effective combination of three factors: specialized labor, mechanization, andstandardization. The result of mass production is the availability of large quantitiesof products produced efficiently and sold at substantially lower prices than if suchproducts were individually crafted or made. (Pierce College, 2010) Manufacturing firms consider productivity as a major factor in building astronger corporation. Thus, a productive manufacturing company delivers excellentbusiness output. As defined by Panneerselvam (2005), “Productivity is a relationshipbetween the output (product/services) and the input (resources consumed inproviding them) of a business system.” Furthermore, for the survival of anyorganization, productivity ratio must be at least 1. If it is more than 1, the 13 | P a g e
  • organization is in a comfortable position. Several ways for improving productivityare the following: 1. Increased output for the same input 2. Decreased input for the same output 3. Proportionate increase in the output is more than the proportionate increase in the input 4. Proportionate decrease in the input is more than the proportionate decrease in the output 5. Simultaneous increase in the output with decrease in the inputDealing with Unhygienic Practices As mentioned by Chesterton (n.d.), “Man does not live by soap alone; andhygiene, or even health, is not much good unless you can take a healthy view of itor, better still, feel a healthy indifference to it.” This means that being healthy is totake care of one’s body. Every individual has its own concept of personal hygiene.Ultimately, people can prevent unpleasant scent or wetness by understanding itsrational and scientific implications. Oftentimes, kids are not concerned with hygiene and cleanliness until theonset of puberty. Nasty smell and sweaty appearance are prevalent during thisstage especially after a long day of playing outdoors. As indicated by Iannelli(2004), “Since body odor is linked to puberty, the first step is determining if theyhave started puberty. Keep in mind that girls typically start puberty between the 14 | P a g e
  • ages of 8 to13 years old, while boys start between 9 to 14 years old. Whether ornot they are entering puberty, when they have a very strong body odor, then youwant to help them control it. In addition to considering the use of deodorant, youmight practice these general personal hygiene basics,” including: 1. Take a daily bath or shower to prevent bacteria on skin. 2. Take another bath or shower after outdoor activities/sports especially when they sweat a lot. 3. Wash with soap and a washcloth all over, including armpits, genitals, and feet, during shower. 4. Wear clean underwear, socks, and clothes every day. 5. Wear loose fitting cotton clothing to impede perspiration. 6. Watch your diet. Eating foods with garlic, onions, or spices, is causing, or at least contributing, to unpleasant body odor (BO). As Schueller (n.d.) emphasized, “Body odor is primarily generated in thearea under the arms where there is a high concentration of sweat glands. Whilesweat from these zones is initially odorless, it contains natural oils, called lipids,which provide growth medium for bacteria living on the skin. These bacteriainteract with the lipids, converting them into compounds that have a characteristicsweaty odor.” 15 | P a g e
  • The Epitome of Antiperspirants Fad for personal care necessities became a breakthrough realization sincebeauty cosmetics has been introduced to the market. Most people believe thatevery beauty product must contain active ingredients or hygienic agents. Forinstance, an attractive-looking lady or a handsome guy should not only lookpleasing but must also smell good. Beauty products have evolved throughout the ages. As stated by Schueller(n.d.), products to control body odor and wetness have been used for centuries.Before bathing became routinary, people used heavy colognes to mask body odor. In the late nineteenth century, chemists developed products that were ableto prevent the formation of these odors. Early antiperspirants were likepaste/cream and were applied with the fingertips to the underarm area. In 1888, the first such product to be trademarked in the United States wasMum. It was a waxy cream that was difficult to apply and extremely messy. A fewyears later, Everdry, the first antiperspirant to use aluminum chloride wasdeveloped. In the late 1950s, manufacturers began using aerosol technology todispense personal care products such as perfumes and shaving creams. In theearly 1960s, Gillette introduced Right Guard, the first aerosol antiperspirant.Aerosols became a popular way to dispense antiperspirants because they allowedthe user to apply without having to touch the underarm area. By 1967, half of the 16 | P a g e
  • antiperspirants sold in the United States were in aerosol form, and by the early1970s, they accounted for 82% of all sales. As further elaborated by Laden (1999), antiperspirants can be defined as:“The aluminum salt‐based antiperspirant combats the flow of perspiration and thebreakdown of sweat (bacteria). The bactericide‐based (ethanol, triclosan, etc.)deodorant combats offensive odors. Parabens are generally not present indeodorants/antiperspirants, which may be explained by the fact that, asbactericides, deodorants/antiperspirants are self‐preservative and therefore do notneed the addition of preservatives such as parabens.” Nowadays, the production of antiperspirants/deodorants increasesenormously. Loads of products are distributed all over the world. Higher revenuesare generated regardless of growing expenses. The interest of public towards itsprogress had built a robust organization and strategic management for a bettermanufacturing business. 17 | P a g e
  • Manufacturing Processes and Technology The success of antiperspirants is quite diminutive. Operational and qualityproblems arise due to studies made by private sectors and complaints deferred bycustomers. Therefore, companies hire managers, engineers, analysts, inspectors,and operators to provide a standard methodology and quality product. Ensuring a strong manufacturing foundation should start from superiorquality resources, productive manpower, highly efficient machineries, flexiblecomputer systems and innovative team. As discussed by an expert, the following raw materials and manufacturingprocesses shall be employed, “Antiperspirants consist of the active drugingredients that control perspiration; gelling agents that form the stick matrix; andother ingredients, such as fragrance or colorants that make the productaesthetically pleasing…Manufacturing process includes batching, filling, finishingoperations, and quality control.” (Schueller, n.d.) Innovation does not only apply to its operations but also to product’smarketing and development. For instance, in keeping with Unilever’s (n.d.)business principles, “The overall goal of developing the new range for women wasto redefine the experience of a deodorant aerosol and reinvent its performance, inproducts that have a truly feminine identity. In addition, the new mix has had apositive impact on Unilever’s manufacturing process where we now score better onwaste reduction and safety.” 18 | P a g e
  • Antiperspirants vs. Deodorants Antiperspirant? Deodorant? Is there a difference? Yes, there is. Accordingto St. Pierre (2012), “These two types work in vastly different ways and while theresults may look the same, it does not necessarily mean that your body is doingthe same thing when you are using one or the other.” ANTIPERSPIRANT is a product specifically designed to stop the user fromsweating. This goes into the core of preventing body odor; sweating feeds thebacteria in our skin which in turn produces body odor as it feasts on thesubstances in ones sweat. To stop the body odor, antiperspirant products stop thesweat altogether by blocking the sweat pores. It accomplishes this using a varietyof chemicals like aluminum. Most of the products on supermarket shelves todayare of the antiperspirant variety. The term DEODORANT is a derivation of the root word “de-odor” whichimplies the action of taking the odor away or preventing it altogether. The bestdeodorant does not necessarily prevent the sweating process; rather, thesubstances in the deodorant prevent the production of body odor by killing offbacteria. A person using a deodorant will continue to sweat but not have the odorthat typically accompanies sweating. Experts recommend getting a combination of antiperspirants anddeodorants with both effects finely balanced to achieve the desired effect.Inhibiting sweat is good if done to a certain extent and not more; balancing thatwith deodorant use helps keep body odor at bay. It is therefore important to choose 19 | P a g e
  • the best antiperspirant and best deodorant in combination and not just one overthe other. (St. Pierre, 2012) On the word of Holetzky (n.d.), consumer advocacy groups continue tovoice concerns over questions regarding common health and beauty products,including deodorant and antiperspirant. Certain studies indicate potential healthrisks associated with aluminum compounds found in many antiperspirants. Similarstudies find like risks with parabens found in some deodorants. Both have beentenuously linked to serious illnesses, including breast cancer. Manufacturers andvarious health agencies claim such studies are flawed, stating concerns areunfounded. Despite assurances, many healthcare professionals recommenddeodorant over antiperspirant, believing that obstructing pores and preventingperspiration may not be the healthiest choice. Consumers are left to make theirown judgements. Whether a person choose to use antiperspirant, deodorant, or combination,it is important to know his needs. Preference must be based on medical conditionand lifestyle. In the end, what really matters is the convenience and comfort of theuser. 20 | P a g e
  • Effects on Human Health Studies on antiperspirant/deodorant side effects have been conducted andanalyzed by experts in the field of dermatology, cosmetology, and toxicology.According to Darbre (2005), he postulates the involvement of aluminum, acomponent in hygiene products and a metal salt known for its toxicity to cell DNA.Aluminum is apparently capable of acting via an oestrogenic effect. Suchhypotheses may be interesting, but none of these studies provides scientificevidence to verify them. Starting from unverified hypotheses and extrapolatingfrom these to obtain a final conclusion by qualifying one’s own observations is farfrom a strict scientific procedure. And without scientific evidence, no conclusioncan be anything but wrong. With regards to the oestrogenic effect proposed byhim, this is weak for parabens and non‐existent in the case of aluminum salts. It isimportant to remember that there are a number of sources of aluminum in ourenvironment (diet, etc.) other than deodorants/antiperspirants. 21 | P a g e
  • The Diversity of a “Lifesaving” Invention In our time, deodorants come with value-added features or extra-strengthformulas. These can be easily available in a convenience store or in a grocery. The aesthetic design and variant of deodorants become a competitive trendfor personal care companies. For instance, one brand has a hundred differentvariants used as import and export commodity. Thus, a firm must embraceinnovation and practice change as part of its communal drive towardsdevelopment. Deodorant comes in different brands, variants, volume, and shape.According to Paddock (2012), “The most common types of deodorant come in solidstick, gel, roll-on, liquid, cream, powder, and spray formulas. Natural deodorant isanother option that may come in all those different styles or in a stone or mineralform which is rubbed on the underarms.” She (Paddock) further elaborates the variety of deodorants. Stick deodorantis generally solid white or clear deodorant that is rubbed on the armpits. Powderdeodorant is sprinkled or patted on, and is often made of the same types ofingredients as stick deodorant but without the silicone or fatty substances that bindthem together. Gel deodorant is applied in a similar way as the stick varieties butcomes in a thick gel that is pushed up through holes or slits in the cap. Creamdeodorant is usually applied with the fingertips. Roll-on deodorant has a ball on thetop of the bottle that rolls and applies the product to the skin in a thin layer. Typesof deodorant that are sprayed on generally come in aerosol cans. 22 | P a g e
  • Deodorant, of any kind, as long as it is quality tested can make anindividual’s life worthy of the satisfaction he deserves.Picking the Best Underarm Necessity for You According to O’Rourke (2010), here are the tips to consider when choosinga deodorant: 1. Stay away from Triclosan. Many deodorants use an added chemical called “Triclosan” to kill odor-causing bacteria. The wide use of it may also be promoting a drug resistance in the same bacteria. Drug resistant bacteria reduce the effectiveness of antibiotics. Furthermore, it weakens the immune system of humans to treat infections. 2. Avoid Aluminum. Aluminum compounds in deodorant are the culprits in yellow armpit stains. Aluminum salts, such as aluminum chlorohydrate, were some of the first antiperspirants developed to reduce perspiration. Newer and more effective aluminum zirconium chlorohydrate-glycine complexes have been developed and are used in several brands of solid and gel antiperspirants. These ingredients have the added benefit of having antimicrobial activity, which mean they also act as deodorants. There is inconclusive evidence that aluminum-containing compounds increase the risk of certain neurological diseases (e.g., Alzheimer’s disease). 23 | P a g e
  • 3. Stop using (Aerosol) Spray. If you are concerned about the environment avoid aerosol antiperspirants. Some propellants used in this product can be toxic. Others, such as tetrafluoroethane, are not toxic but are global warming agents. He (O’Rourke) also emphasizes that there are good alternatives which canavoid the negative effects of those substances to humans and environment: 1. Deodorant crystals which are made from alum-based mineral salts. 2. An age-old alternative to Triclosan is “Tea Tree Oil” which is often listed as TTO on the label. 3. Zinc ricinoleate reduces odors by binding to stinky chemicals, making them imperceptible to most noses. If you use a zinc ricinoleate-based deodorant, choose a fragrance-free formulation because it can interfere with zinc ricinoleate’s odor fighting capacity. 24 | P a g e
  • CHAPTER III PRESENTATION OF GATHERED DATA 3.1 SUMMARY OF LOSS IN ROLL-ON DEODORANTS (All Variants) Product Name/Variant Net. Vol. MSO Country Unit Price Output Loss (% ) AXEAXE Anarchy 40 mL US 104.92 2.44 .AXE Apollo 40 mL US 104.92 1.31AXE Phoenix 40 mL US/CAN 104.92 1.01AXE Dark Temp 50 mL ASIA/EU PH 63.42 0.97AXE Vice 50 mL ASIA PH/SG/TW 54.17 3.10 DOVEDOVE Original 50 mL ASIA/AMET/ANZ PH/SG 126.79 1.32DOVE Unscented 50 mL ASIA PH/SG/VT 50.33 4.99DOVE GoFresh 50 mL ASIA MY/SG/VT 50.33 0.87DOVE Green Tea & Cucumber 50 mL ASIA PH/VT 50.33 1.16DOVE Pink 50 mL ASIA/EU MY/SG/VT 58.49 1.55DOVE Pure 50 mL ASIA/EU MY/SG/VT 58.49 2.72DOVE Clean Comfort 50 mL ANZ/EU/LATAM 153.08 4.07DOVE Whitening 25 mL ASIA/AMET PH/VT 47.13 2.66DOVE MEN Extra Fresh 50 mL AMET/LATAM PH/SG 153.08 7.21 REXONAREXONA MEN Active 50 mL ASIA/ANZ PH/TW 47.00 0.25REXONA MEN Adventure 50 mL ASIA PH 44.19 2.38REXONA MEN Extreme 50 mL AMET/EU 98.42 3.07REXONA MEN Ice Cool 50 mL ASIA PH/VT 44.19 4.15REXONA MEN Ionic 50 mL AMET 98.42 10.32REXONA MEN Lotus F1 Team 50 mL US/CAN 116.75 5.23REXONA MEN Quantum 50 mL ASIA PH/HK/TH 44.19 2.31REXONA MEN Sport Defence 50 mL AMET 98.42 13.20REXONA MEN V8 50 mL ASIA PH/HK/VT 44.19 3.54REXONA WMN Cotton 50 mL ASIA HK/TH/TW 44.19 1.07REXONA WMN Confidence 50 mL ASIA PH/SG 44.19 2.43REXONA WMN Free Spirit 50 mL ASIA MY 44.19 1.24REXONA WMN Naturals 50 mL ASIA MY/SG 44.19 1.84REXONA WMN Passion 50 mL ASIA PH/MY/SG/CB 44.19 1.76REXONA WMN Powder Dry 50 mL ASIA MY/SG 44.19 2.75REXONA WMN Sexy 50 mL ASIA/EU MY/SG 52.16 3.76REXONA WMN Shower Clean 50 mL ASIA/AMET MY 44.19 5.00REXONA WMN Whitening 50 mL ASIA PH/MY/SG 44.19 0.32Table 1: PC-Deos Roll-on Deodorants Production – From July to December 2012*Source: Ms. Rica Torres (Document Controller/Production Admin) Table 1 shows the focus variant in the production of roll-on deodorants which isRexona Men Sport Defence 50mL. Data was gathered from July to December 2012.(See Appendix A for Output Loss per Variant, page 99) 25 | P a g e
  • 3.2 PROFIT LOSS IN SIX (6) MONTHS Planned Output Actual Output MONTH Variance Productivity Loss Profit Loss in Units ProducedJuly 38,936 32,858 6,078 15.61% Php 598,196.76August 39,249 33,212 6,037 15.38% Php 594,161.54September 39,114 33,697 5,417 13.85% Php 533,141.14October 39,542 34,485 5,057 12.79% Php 497,709.94November 39,600 35,073 4,527 11.43% Php 445,547.34December 39,532 35,492 4,040 10.22% Php 397,616.80TOTAL 235,973 204,817 31,156 --- Php 3,066,373.52AVERAGE 39,329 34,136 5,193 13.20% Php 511,062.25Table 2: PC-Deos Rexona Men Sport Defence RO – Planned Output vs. Actual Output Summary (6 months)*Source: Ms. Rica Torres (Document Controller/Production Admin)Computation: Productivity Loss: | | | |= 13.20% 26 | P a g e
  • Table 2 shows the relationship of planned and actual output in theproduction of Rexona Men roll-on deodorants from July to December 2012.Planned output was based on the monthly estimates of the product by thecustomer. The company experienced an average productivity loss of 13.20% orequivalent to 31,156 units in manufacturing Rexona Men Sport Defence RO50mL semi-annually. (See below – Table 3) Cost of Production Dollars per unit (AUD) Peso per unit (PHP) $2.27 Php 98.42Table 3: PC-Deos Rexona Men Sport Defence RO – Cost of Production*Source: Ms. Rica Torres (Document Controller/Production Admin) Profit Loss in 6 months:= (Target Output – Actual Output) * ($2.27 x Php 43.31226/$1)= (235,973 – 204,817) * (Php 259.89)= Php 3,066,373.52 Table 3 shows the costs incurred during the production of Sport Defenceroll-ons. The price of one (1) unit costs Php 98.42. It is estimated that thecompany experienced loss in profit amounting to Php 3,066,373.52 from themonths of July to December 2012. 27 | P a g e
  • 3.3 PROCESS FLOW CHART Start Preparation of Raw Materials Filling Capping Code Dating Labelling In-Process N Inspection A Y Case Packing Rework Post-packing Manual Post-packing Final QA N Inspection A (Sampling) Y End Figure 1: Rexona Men Sport Defence RO – Flow Chart 28 | P a g e
  • Figure 1 shows the standard processes involved in producing units ofRexona Men Sport Defence 50mL roll-on deodorants. The course of every facetof the product completes one cycle of manufacturing by the use of automationand robotics. (See Chapter 1, Background of the Study) Most operational problems occur before proceeding to mass production(from the inventory of raw materials) in which bags of labels and violator stickersare being delivered late by the supplier and during capping operation wherein themachine cannot utilize its full capacity to produce the planned output due toworn-out parts. Other problems are brought by lack of preventive maintenance, such asinaccurate visual detection of vision camera sensors, and human factors, forinstance, operators not following wok instruction in setting up machines. Theresult corresponds to a low productivity and lost opportunities. 29 | P a g e
  • 3.4 FISHBONE ANALYSIS MAN METHOD Operators not Shortage of Raw following Work Materials – Bottles, Instruction Caps, and Labels (12.28%) (33.15%) 13.20% productivity loss in manufacturing Rexona Men Sport Defence RO 50mL Inaccurate Visual Worn-out Parts of Detection of Vision Capping Machine Camera Sensor (29.09%) (25.48%) Operations Planning Human Factors MACHINE Preventive MaintenanceFigure 2: Causes of Productivity Loss Figure 2 illustrates the percentage distribution of the elements of production, namely: machine(54.57%), method (33.15%), and man (12.28%) to the overall loss of Rexona Men Sport Defence RO 50mL. Itshows the main causes of productivity loss. 30 | P a g e
  • Fishbone Diagram Computations: Percentage Contribution | |METHOD: Shortage of Raw Materials (Bottles, Caps, and Labels) Total Units Loss in Six Months = 31,156 units Units Affected by Shortage of Raw Materials = 10,328 units Percentage Contribution = 33.15%MACHINE 1: Worn-out Parts of Capping Machine Total Units Loss in Six Months = 31,156 units Units Affected by Worn-out Parts = 9,063 units Percentage Contribution = 29.09%MACHINE 2: Inaccurate Visual Detection of Vision Camera Sensor Total Units Loss in Six Months = 31,156 units Units Affected by Inaccurate Visual Detection = 7,939 units Percentage Contribution = 25.48%MAN: Operators not following Work Instruction Total Units Loss in Six Months = 31,156 units Units Affected by Not Following Work Instruction = 3,826 units Percentage Contribution = 12.28% OBJECTIVE OF THE STUDY: Minimization of Productivity Loss = Man + Machine 1 + Machine 2 = 33.15% + 29.09% + 25.48% = 87.72% 31 | P a g e
  • SUMMARY OF CAUSES (RO Deodorants) Category Causes Units Affected % Contribution % Loss Profit Loss Shortage of Raw METHOD Materials (Bottles, Caps, 10,328 33.15% 4.38% Php 1,016,502.82 & Labels) Worn-out Parts of 9,063 29.09% 3.84% Php 892,008.06 Capping Machine MACHINE Inaccurate Visual Detection of Vision 7,939 25.48% 3.36% Php 781,311.97 Camera Sensor Operators not following MAN 3,826 12.28% 1.62% Php 376,550.67 Work Instruction TOTAL 31,156 100% 13.20% Php 3,066,373.52Table 4: Contribution of Loss Table 4 presents the summary of causes that contribute to the productivity loss in manufacturing RexonaMen Sport Defence RO 50mL. The company experiences the highest machine problem whereas issues withworkers contribute the lowest percentage in the past six months. 32 | P a g e
  • 3.5 SHORTAGE OF RAW MATERIALS Rexona Men Sport Defence 50mL Roll-on (RO) Deodorant Incident of Raw Material Illustration Specifications Shortage Include the ff.: July 11 Compounds, Gelling Agents, Fragrance and1. Active Ingredients ------- Colorants Composition: Liquid Color: White August 21 Application: Cosmetics June 1 Surface: Smooth/Frost Size: 1-inch diameter Color: White Tolerance: +-0.1mm August 172. Hollow Ball/Roll-on Weight: 5g Capacity: 35.2mm September 8 Application: Cosmetics, Industrial, Medicine November 12 33 | P a g e
  • July 4 Size: 50mL Material: PE/PP August 14 Height: 11cm3. Bottle Base Diameter: 3.9cm Weight: 18.9g September 3, 20 Color: Black Application: Cosmetics October 15, 26 December 21 July 16 Material: PE/PP Height: 5cm Base Diameter: 3.9cm September 114. Cap Weight: 7g Color: Black October 7, 26 Application: Cosmetics December 3 Include the ff.: Product Name, Logo, Variant, June 29 Tolerances, Additional Features5. Label Front Color: Black, Blue, and Gold August 9, 20, 31 34 | P a g e
  • Include the ff.: Ingredients & October 18 Back/ Formulation, Product Rear Code, Manufacturing Location, Instruction on How to Use, Company Logo; November 27 Color: White Includes the Instruction August 22 on how to Use, Custodial Mark of6. Violator Sticker Unilever December 16 Color: White, VioletTable 5: List of Raw Materials – Rexona Men Sport Defence 50mL*Source: Ms. Rica Torres (Document Controller/Production Admin) Summary of Occurrences Table 5 shows the important materials needed to produce units of roll- (Accumulated) on deodorant. It is shown that BOTTLES, CAPS, and LABELS have the Active Ingredients 2 highest occurrence of unavailability in their inventory. Consequently, mass Ball (hollow) 4 production of roll-on deodorants has been delayed. Bottle 7 Cap 5 Label & Violator Sticker 8 35 | P a g e
  • List of Suppliers Raw Material (RM) Supplier/Provider Company Address Unilever Philippines, Inc. – Personal 1351 United Nations Ave. Paco, Manila, 1. Active Ingredients Care Division NCR – First District 1007 2. Hollow Ball 1038 Cristobal St. Paco, Manila, NCR – 3. Bottle/Container WEENER Plastop Asia Inc. First District 1007 4. Cap Golden Mile Business Park #10 7th Street, Brgy. Maduya Carmona, 5. Label & Violator Sticker Centech Labels Philippines, Inc. Cavite 4166 573 Nueve De Febrero, Mandaluyong City, Manila, NCR 1550Table 6: Trusted RM Suppliers by PC-Deos Department*Source: Ms. Rica Torres (Document Controller/Production Admin) Table 6 indicates the list of raw material suppliers. They provide quantities of raw materials depending on the planned order of the company. More often than not, there is a delay in dispatching of lots or bags of raw materials. This delay occurs either due to supplier’s late delivery, planner’s negligence, or material purchase order software errors. 36 | P a g e
  •  Release Schedule of Raw Materials Inventory Traceability ChecklistProduct Line: Rexona Men Department: Warehouse, Deos CityVariant: Sport Defence Processed/Validated by: Mr. Basil RosacayWeight: 50mL Position: Admin Staff Dispatched LotsNo. Release Period Remarks Findings Bottles Caps Labels1 June 29 42 bags 36 bags 7 bags  Lots have been forwarded to Production Dept. 46 bags  Low superiority bags of caps SHORTAGE2 11 59 bags 11 bags July  Sample lots have been forwarded to QA Dept. (caps)3 27 57 bags 49 bags 10 bags  Lots have been forwarded to Production Dept.4 9 57 bags 51 bags 9 bags  Lots have been forwarded to Production Dept. August  Deficiencies in capacity of violator sticker/label bags SHORTAGE5 22 51 bags 39 bags 5 bags  Some lots have been forwarded to Production Dept. (labels)6 6 50 bags 37 bags 8 bags  Lots have been forwarded to Production Dept. September  Bags of bottles and caps are not enough for the next SHORTAGE7 21 38 bags 36 bags 6 bags two-week operation (bottles and caps)  Lots have been forwarded to Production Dept.  Deficiencies in capacity of raw materials8 4 37 bags 34 bags 4 bags SHORTAGE October  Lots have been forwarded to Production Dept. 9 18 42 bags 34 bags 6 bags  Lots have been forwarded to Production Dept.10 31 50 bags 35 bags 7 bags  Lots have been forwarded to Production Dept.11 9 49 bags 46 bags 7 bags  Lots have been forwarded to Production Dept. November12 23 55 bags 51 bags 8 bags  Lots have been forwarded to Production Dept.13 7 56 bags 50 bags 7 bags  Lots have been forwarded to Production Dept. December  Missing bags of caps SHORTAGE14 15 41 bags 40 bags 5 bags  30 bags have been forwarded to Production Dept. (caps) Table 7: Inventory Traceability of Rexona Men Sport Defence RO 50mL 37 | P a g e
  • Table 7 shows the traceability sheet of raw materials coming from theWarehouse Department. Bags of raw materials (i.e. bottle, ball, cap, label/violatorsticker) have been forwarded to the Production Department almost every two (2)weeks after its release date from the supplier. These raw materials aresometimes delayed because of inadequacy and quality issues. Basically, these orders of raw materials are based on customer demand.Production planners will only check the inventory and orders more or less everytwo weeks. Some (lots) are not enough in number or deficient in capacity. As aresult, these cannot support the production need. Summary of Incoming Raw Materials (Warehouse) Bottle Container: Month Raw Material Expected (kg) Actual (kg) July 160 146 August 160 144 September 160 147 Bottle October 160 139 November 160 151 December 160 157 Total 960 884 Difference (SHORTAGE) 76 kg Table 8.1: Part of the Summary of Incoming Raw Materials – Bottle Container  Units Affected:  Required Amount of Bottle = 0.0189 kg or 18.9 g per unit  76 kg / 0.0189 kg per unit = 4,021 units 38 | P a g e
  • SHORTAGE ON BOTTLE CONTAINERS 165 160 155 150 145 Actual (kg) 140 Expected (kg) 135 130 125 Figure 3: Expected vs. Actual RM – Bottle Containers Cap: Month Raw Material Expected (kg) Actual (kg) July 110 108 August 110 106 September 110 109 October Cap 110 105  November 110 108 December 110 103  Total 660 639 Difference (SHORTAGE) 21 kg Table 8.2: Part of the Summary of Incoming Raw Materials – Cap Units Affected:  Required Amount of Cap = 0.007kg per unit  21 kg / 0.007 kg per unit = 3,000 units 39 | P a g e
  • SHORTAGE ON CAPS 112 110 108 106 104 Actual (kg) 102 Expected (kg) 100 98 Figure 4: Expected vs. Actual RM – Caps Label/Violator Sticker: Month Raw Material Expected (kg) Actual (kg) July 70 68.81 August 70 67.64 September 70 68.30 Labels October 70 67.97  November 70 68.99 December 70 67.87  Total 420 409.58 Difference (SHORTAGE) 10.42 kg Table 8.3: Part of the Summary of Incoming Raw Materials – Label/Violator Sticker Units Affected:  Required Amount of Label and Violator Sticker = 0.0945 kg / 30 units or 0.00315 kg per unit  10.42 kg / 0.00315 kg per unit = 3,307 units 40 | P a g e
  • SHORTAGE ON LABELS AND VIOLATOR STICKERS 70.5 70 69.5 69 68.5 68 Actual (kg) 67.5 Expected (kg) 67 66.5 66 Figure 5: Expected vs. Actual RM – Labels and Violator Stickers Units Affected (Shortage of Raw Materials) = Units Affected (Bottles + Caps + Labels) Units Affected (Shortage of Raw Materials) 4,021 + 3,000 + 3,307 Units Affected (Shortage of Raw Materials) 10,328 UNITS Profit Loss in Six (6) Months Php 1,016,481.76 Table 8.4: Summary of Units Affected due to Shortage of Raw Materials Tables 8.1-8.4 show the units not produced due to shortage of rawmaterials. In a span of six months, there are 10,328 units (from combined volumeof bottles, caps, and labels) which are not manufactured. There is a total loss inprofit of Php 1,016,481.76. Figure 3-5 shows the graphical illustration of unavailable stocks of roll-ondeodorant raw materials. The actual resources did not meet the expected plan. 41 | P a g e
  • 3.6 WORN-OUT PARTS OF CAPPING MACHINE Figure 6: Actual Picture of Capping Machine Figure 6 illustrates the actual image of capping machine used in Line 2 of production. It is operated almost 24 hours depending on the planned volume. Some parts of the capping machine deliver failures/errors such as vibrating tension spring and semi-automatic feeder malfunction as a result of machine breakdown and stoppages. 42 | P a g e
  • Figure 7: Computer-Aided Drawing of Capping Machine 43 | P a g e
  •  List of Capping Machine Parts Parts and Assemblies Illustration Specifications Torque range from 5 to 30 inch pounds Designed to fit & replace most popular brands1. Bottle Capping Headsets Independently adjustable top loading spring 18mm (max) hole through the middle for air or push rod assembly Cap sizes: max diameter 38 mm max length 65mm 55mm with pre-sleeking2. Electric Motor Motor rotation speed. 1400 or 2800 r.p.m. Electrical requirements: 220V -380 V - 50 Hz. (different ones on request) 44 | P a g e
  • One operator can feed two or more seamers Available for all types of can ends and sizes (202 diameter to 603 diameter)3. Semi-Automatic Feeder Quick installation and easy adjustment Powered curves allow for adaptation to any layout Low noise level operation Stainless steel material Double-line, flat-topped carbon steel roller chains4. Roller Chain Polymer wear-resistant plastic filler strip Adjustable plastic guardrail supports Comfort grip adjusting rings Has ROPP (Roll On Pilfer5. Screw Capping Heads Proof) system Available in a variety of stainless steels 45 | P a g e
  • Round-shaped wire, ranging from .5 mm to 4 mm diameter6. Tension Spring Used in industrial production, medical instruments and electronic components to absorb & store energy by generating a pressure to a pulling force Ladder-style capping elevator Includes the capping hopper,7. Inline Capping Elevator elevator and capping-out device Used to supply automatic systems with parts neededTable 9: Part Specifications of Capping Machine*Source: Mr. Philip Nadela (Maintenance Engineer) Table 9 illustrates the parts that have incidents of wear-and-tear, malfunction, or clogging. These type oferrors resulted to delays and production stoppages. 46 | P a g e
  • Date of Malfunction Report Specific Error Actions Taken - Worn-out bottle capping headset  Report to 6 - Malfunction roller chain Operator/ July 16 - Error in electric motor Technician  Repair – Check 20 - - Bent tension spring parts if OK 23 - Error in screw capping heads - Error in inline capping elevator  Report to 14 Operator/ - Vibrating tension spring August Technician - Worn-out bottle capping  Repair – Check 25 headsets parts if OK - Malfunction of roller chain  Report to 9 Operator/ - Error in electric motor Technician September - Error in screw capping heads  Repair – Check 22 - Worn-out bottle capping headset parts if OK 4 - Worn-out electric motor  Report to - Error in tension spring Operator/ October 13 - Clogging in semi-automatic Technician feeder  Repair – Check 17 - Error in bottle capping headsets parts if OK 26 - Error in screw capping heads - Malfunction in inline capping  Report to 15 Operator/ elevator November Technician  Repair – Check 25 - Error in roller chain parts if OK - Error in bottle capping headsets  Report to 12 - Malfunction in semi-automatic Operator/ December feeder Technician  Repair – Check - Clogging in semi-automatic 23 parts if OK feeder - Error in electric motorTable 10: Specific Errors Encountered – Machine Malfunction Report*Source: Mr. Philip Nadela (Maintenance Engineer) 47 | P a g e
  • Table 10 shows the detailed malfunction report of the Capping machinethat comprised the date and specific reasons the machine has brokendown/malfunction. Error on Specific Parts 6 5 4 3 2 1 Frequency 0 Figure 8: Particular Errors of Capping Machine Parts Figure 8 illustrates the malfunction of several parts that have broughtdowntime to the production. It is seen errors in bottle capping headsets andelectric motor has the biggest contributors to machine breakdown. Essentially,these parts need immediate replacement/repair because it may lead toproduction stoppage. 48 | P a g e
  • Frequency of Downtime (hrs.) Quantity Month Malfunction/Stoppage Specific DT Total DT Affected 3.13 2.52 July 5 2.42 10.35 2,305 1.39 0.89 2.56 August 3 0.48 5.35 1,214 2.31 2.34 1.55 4 5.14 1,162September 0.93 0.32 2.08 0.87 October 5 1.71 8.47 2,044 3.32 0.49 2.87November 2 6.09 1,512 3.22 0.75 1.41December 4 7.56 826 1.53 3.87 Total 23 42.96 hrs. 9,063 UNITS Profit Loss in Six (6) Months Php 891,980.46Table 11: Machine Breakdown Report Table 11 shows the monthly machine malfunction report during themonths of July to December 2012. As stated, the total frequency of malfunctionwas 23 times. Furthermore, it presents the time consumed when the machineexperiences downtime as well as its corresponding units affected. It wasconcluded that the machine was down for about 42.96 hours and 9,063 units ofRexona Men Sport Defence roll-on deodorants were not produced because offrequent breakdown of the Capping machine. There was a total loss in profit ofabout Php 891,980.46. 49 | P a g e
  • 3.7 INACCURATE VISUAL DETECTION OF VISION CAMERA SENSOR Figure 9: Industrial Vision Camera Sensor Figure 9 illustrates the actual picture of vision cameras used in the codedating and labelling processes. Vision camera detects the following:  code date on roll-on caps  alignment of front and back labels on the bottle  configuration of violator stickers on caps  presence of labels  constricted insertion of cap  missing assembly part 50 | P a g e
  •  Code Dating and Labelling Visual Recognition (as of Dec 2012) Date & Time of Observation Performed By 1 Dec-04 Tuesday 1:05-1:17 PM Engr. Philip Nadela 2 Dec-06 Thursday 1:20-1:43 PM Engr. Philip Nadela 3 Dec-11 Tuesday 1:16-1:44 PM Engr. Philip Nadela 4 Dec-13 Thursday 1:50-2:08 PM Engr. Philip Nadela 5 Dec-18 Tuesday 1:10-1:27 PM Engr. Philip Nadela Table 12: Vision Camera Performance Observation Table 12 shows the time and date of observing the production capabilityof vision camera installed in the code dating and labelling machines. Engr.Philip Nadela was tasked to observe the sensor’s visual performance andrecord the data within three (3) minutes. Visual Detection Network System Results  Basis of Failure: Total Error Probability, PError for q ≥ 0.1  Passed Data: q < 0.1 Image Sequence Day Sequence 1 Sequence 2 Sequence 3 1 0.1515 0.0573 0.03 2 0.1238 0.1531 0.11 3 0.11 0.09 0.17 4 0.12 0.20 0.20 5 0.05 0.23 0.90Table 13: Vision Camera Performance Results Table 13 indicates the measure to determine if the data has a passing orfailing rate. Most data recorded a failing mark which means that the visioncamera experiences several errors within the designated sequence time(exactly three minutes). 51 | P a g e
  • Visual Detection Error 1 0.9 0.8 0.7 Control Limit Axis Title 0.6 0.5 0.4 0.3 0.2 0.1 0 1 2 3 4 5 Sequence 1 0.1515 0.1238 0.11 0.12 0.05 Sequence 2 0.0573 0.1531 0.09 0.2 0.23 Sequence 3 0.03 0.11 0.17 0.2 0.9 Figure 10: Visual Detection Results Figure 10 shows the dispersion of data in every sequence. Mostobservations have a higher inaccuracy rate due to higher values above thecontrol limit. Procedure in Vision Camera Sensor Maintenance Sensor Frequency Design Constructed beneath the code dating and labelling machine Usage Everyday – 24 Hours Replacement Schedule Every 2 months; Depends on the condition Every month; When there is an emergency Repair and Maintenance and/or production stoppage occursTable 14: Maintenance Schedule of Vision Camera Sensor Table 14 shows the mandatory time in replacing the sensors from thecode dater. It is specified on the procedure that sensors should be changedevery 2 months or whenever it is not in good condition. 52 | P a g e
  • Occurrence Repair/ Interruption or Quantity Month of Error Maintenance Idle Time Affected July 87 15 7.66 1,904 August 96 9 8.01 2,106 September 85 8 6.92 1,225 October 115 18 2.38 663 November 79 7 4.43 845 December 68 12 6.87 1,196 Total 530 69 36.27 hrs. 7,939 UNITS Profit Loss in Six (6) Months Php 781,356.38Table 15: Summary of Units Affected due to Inaccurate Visual Detection of Vision Camera Sensor Table 15 shows the units lost due to vision camera errors. These errorsresulted to delay, interruption, and production stoppage. It states that 36.27hours are gone in six months because of poor maintenance schedule and lackof machine check. Therefore, there is idle time because of inaccuracies. 53 | P a g e
  • 3.8 OPERATORS NOT FOLLOWING WORK INSTRUCTION Operating Hours: 6AM – 6PM Shift: 1st Department: Production Name List of Machines Mean Number of Set- that needs Set-up up Times per Day 1. Rosales, Larry D. Unscrambler 4 2. Cantila, Archie Joshua S. Capping 6 3. Reyes, Ronnie B. MCP/Case Erector 9 4. Manicani, Edison M. Labelling Machine 6Table 16: Workers Machine Assignment Table 16 shows the designated equipment wherein a worker should set-up the machine everyday day. Listed above is the average number of timeswhen they must change the setting of the machine due to productionchangeover. General Guidelines in Setting up a Machine:Para sa lahat ng operators,Paalala: Matatagpuan sa production/operations manual ang mga alintuntunin sa loob ngplanta. Ito ay matatagpuan sa loob ng Production Office.Bago at pagkatapos gamitin ang isang makina, sundin ng mabuti ang sumusunod:1. Gamitin ang angkop na PPE’s upang maiwasan ang anumang aksidente.2. Laging sundin ang visual control na nakapaskil sa bulletin boards.3. Laging siguruhin na ang lahat ng equipment at mga electrical wiring ay naka-“lock- out.‟4. Iwasang kalimutan ang mga teknikalidad ng makina bago ito i-set up.5. I-shut down ng maayos ang bawat parte o assembly ng makina.6. Kung may mga abnormalities o mali sa operasyon ng makina, ipagbigay alam agad sa maintenance personnel o supervisor. BY: PRODUCTION DEPT. ORDER NUMBER: 07160 54 | P a g e
  • Causes of Human Errors  Incorrect Input of Numerical Values in a Particular Equipment  Wrong Identification of Data/Information  Misunderstanding the Manual/Visual Control  Operator tend to Rush in Setting up the Machine  Confused Worker  ForgetfulnessTable 17: List of Human-Related Errors Table 17 shows the causes of not following work instruction. Operatormight mistakenly type certain data onto the machine; he/she might be rushingto input values and as a result errors were experienced; and he/she may beconfused with the visuals in front of the equipment or preoccupied. List of Workers:1. Rosales, Larry UNSCRAMBLER MACHINE Month Frequency of Incorrect Set up Units Affected July 5 192 August 3 101 September 5 198 October 5 167 November 4 152 December 1 61 Total 23 871 units Table 18.1: Human Error in Unscrambler Machine 55 | P a g e
  • 2. Cantila, Archie CAPPING MACHINE Month Frequency of Incorrect Set up Units Affected July 3 77 August 6 195 September 4 173 October 4 154 November 3 108 December 7 225 Total 27 932 units Table 18.2: Human Error in Capping Machine3. Reyes, Ronnie MCP/CASE ERECTOR Month Frequency of Incorrect Set-up Units Affected July 6 214 August 2 96 September 7 325 October 6 170 November 4 128 December 4 124 Total 29 1,057 units Table 18.3: Human Error in MCP/Case Erector4. Manicani, Edison LABELLING MACHINE Month Frequency of Incorrect Set-up Units Affected July 3 138 August 6 183 September 4 162 October 4 166 November 5 218 December 2 99 Total 24 966 units Table 18.4: Human Error in Labelling Machine 56 | P a g e
  •  Summary of Wrong Set up of Machine: December November October Manicani Reyes September Cantila Rosales August July 0 1 2 3 4 5 6 7 8 Figure 11: Frequency of Setting up the Equipment Figure 11 shows the frequency of mistakes and errors committed byworkers by setting up the machine. Mr. Ronnie Reyes and Mr. Archie Cantilaincurred the highest incident during the months of September and December. Lead Time Frequency of Incorrect Name of Worker Units Affected (hrs.) Set up (6 Months) Rosales, Larry 14.28 23 871 Cantila, Archie 10.03 27 932 Reyes, Ronnie 13.77 29 1,057 Manicani, Edison 6.75 24 966 Total 44.83 hrs. 103 3,826 UNITS Profit Loss in Six (6) Months Php 376,554.92 Table 18.5: Summary of Units Affected due to Not Following Work Instruction Tables 18.1-18.5 present the affected deodorants whenever machinesencounter delay due to human-related error. The production might stop or delaydue to incorrect set up resulting to no production and profit loss. 57 | P a g e
  • CHAPTER IV ANALYSIS OF GATHERED DATA4.1 PROBLEM TREECAUSES Shortage of Worn-out Parts Inaccurate Operators not Raw Materials of Capping Visual Detection Following Work (Bottles, Caps, Machine of Vision Camera Instruction and Labels) Sensor Unilever Philippines, Inc. is experiencing 13.20% productivity loss in manufacturing Rexona Men Sport Defence RO 50mL amounting to Php 3,066,373.52 from the months of July to December 2012 Opportunity Customer Profit Loss Loss DissatisfactionEFFECTS 58 | P a g e
  • CORE PROBLEM Unilever Philippines, Inc. is experiencing 13.20% productivity loss inmanufacturing Rexona Men Sport Defence RO 50mL amounting to Php3,066,373.52 from the months of July to December 2012CAUSES1. Shortage of Raw Materials (Bottles, Caps, and Labels) Two weeks schedule of ordering raw materials delays the production lineof Rexona Men Sport Defence. Raw materials such as bottles, caps, and labelshave the highest incidences of unavailability due to supplier’s fault and poorplanning. As a result, roll-on deodorants were not manufactured on time. (Asseen in Tables 5-8 and Figures 3-5)2. Worn-out Parts of Capping Machine The specific parts of the capping machine often encounter error ormalfunction because of wear and tear condition. Its efficiency declines as thedemand of the product increases. Likewise, the design capacity of the machineis not utilized since parts need to undergo repair and maintenance. (As seen inTables 9-11 and Figures 6-8)3. Inaccurate Visual Detection of Vision Camera Sensor Errors are experienced by the vision camera because sensors are poorlymaintained resulting to low quality sensors. Another problem with vision camerasensors is that they are overly used 24/7. Consequently, sensors do not deliver 59 | P a g e
  • a decent result due to those mentioned reasons. (As seen in Tables 12-15 andFigures 9-10)4. Operators not Following Work Instruction Workers incorrectly fix the setting of several machines in Line 2. Wrongspecifications are being employed to the production as a result of stoppage ofthe operations. (As seen in Tables 16-18 and Figure 11)EFFECTS1. Profit Loss Return on investments will be less evident if the company continue toexperience productivity loss. Therefore, it may result to forfeiture of business inthe future.2. Opportunity Loss If the company will not meet target orders, potential customers will belessen. Recent customers will be uninterested to order again.3. Customer Dissatisfaction Clients will be disappointed because of incomplete output beingdelivered to them. It will reflect a bad reputation for the company. 60 | P a g e
  • 4.2 OBJECTIVE TREEMEANS Reschedule Replacement Weekly Material Application of of New Preventive Operators’ Purchase Capping Maintenance of Order (MPO) Visual Control Machine Parts Vision Camera Every Week To minimize productivity loss by 87.72% in manufacturing Rexona Men Sport Defence RO 50mL Opportunity Customer Profit Gain Gain SatisfactionENDS 61 | P a g e
  • CORE OBJECTIVE To minimize productivity loss by 87.72% in manufacturing Rexona MenSport Defence RO 50mLMEANS1. Reschedule Material Purchase Order (MPO) to Supplier Every Week Delivery dates, dispatching of raw materials to the production, andinventory stocks monitoring should be rescheduled every one week by theproduction planner to ensure immediate changes. It will help them improve theirscheduling processes and enhance business competitiveness.2. Replacement of New Capping Machine Parts Parts will be replaced with new ones to provide long term preservation ofmachine components. It will decrease the probability of the machinemalfunctioning/breaking down in the future.3. Weekly Preventive Maintenance of Vision Camera Sensors must be maintained, cleaned, and reassess every week toensure good condition of machine. It will prevent further operational losses inthe production of roll-on deodorants.4. Application of Operators’ Visual Control Visual control will be posted onto the machines. It will be strictlyregulated within the production area. It will eliminate errors by operators whofrequently commit mistakes. Thus, lead time and stoppage will be avoided. 62 | P a g e
  • ENDS1. Profit Gain Upon minimizing productivity loss, the company will achieve profit. Thiswill result in a positive outcome for the company.2. Opportunity Gain If the company will meet target orders at the right time with the rightquality, potential customers will increase. More opportunities for efficientproduction can be achieved by the company.3. Customer Satisfaction When the company delivered the required quantity on time, customerswill be more trustworthy towards the company. In return, it will gain a reputableimage. 63 | P a g e
  • CHAPTER V ALTERNATIVE COURSES OF ACTIONACA 1: RESCHEDULE MATERIAL PURCHASE ORDER (MPO) TOSUPPLIER EVERY WEEK Schedule of inventory is said to be poor since the company order lots ofraw materials every two weeks and sometimes there are no more stocksavailable so the production is delayed. Therefore, utilization of resources is low.Prior to that, units that should have been produced are not manufactured ontime. Revising the purchase order terms and condition as well as determiningthe inventory reordering point will help reduce the scheduling problem of thecompany. In an overall perspective, it can enhance flow of operations. Forinstance, the inventory schedule of roll-ons will be monitored accurately fromweek to week. Order of raw materials in the warehouse will be on time so as theproduction of other variants.ADVANTAGES:  Increase production efficiency  Precise demand forecast of raw materials  Accurate delivery date estimates  Smooth flow of operationsDISADVANTAGES:  Time constraints for implementation  Conflict between production and warehouse department 64 | P a g e
  • Action Plan REVISION OF SUPPLIER CONTRACT MATERIAL PURCHASE ORDER (MPO) TERMS AND CONDITIONS "Deliverables" refer to roll-on deodorants, its raw materials (bottle, cap, labels, and active agents), products, software, technical data, intellectual property, Definition drawings, personal property, personnel, services or items identified and/or listed in this purchase order for Buyers internal use and resale. This purchase order constitutes Buyers offer to Unilever Philippines, Inc. (Manufacturer) and shall become a binding contract upon the terms and conditions stated in this purchase order upon acceptance by Manufacturer by any expression of acceptance, or commencement of performance, whichever occurs first. Any terms and Acceptance of conditions proposed by Manufacturer in acknowledging or Purchase Order accepting Buyers offer which are different from or in addition to the terms set forth in this purchase order shall not be binding upon Buyer and shall be void and of no effect, except to the extent expressly accepted in writing by Buyers authorized procurement representative(s). Manufacturer acknowledges that it has in its possession all applicable specifications, drawings and documents (including, without limitation, statements of work) Data necessary to perform its obligations under this purchase order at the price and schedule stated on this purchase order or its attachments. All such documentation shall be deemed to be a part of this purchase order. Deliveries shall be made as specified (one week before order) on this purchase order without charge for packaging or storage unless otherwise agreed in writing by Buyer. Deliverables shall be suitably packed to securePacking and Shipping the lowest transportation costs and in accordance with the requirements of the carriers of the releases or orders subject to this purchase order. Manufacturer shall use the carrier(s) selected by Buyer if Buyer so requests. Buyers order numbers must be plainly marked on all packages, bills of loading and shipping orders. Buyers count or 65 | P a g e
  • weight shall be conclusive. Manufacturer shall not ship in advance of schedule or make partial shipment unless otherwise agreed in writing by Buyer. Risk of loss shall be retained by Manufacturer until delivery of the Deliverables at the location specified on this purchase order. Delivery according to schedule is a material condition of this purchase order. Unless different payment terms are expressly stated on this purchase order, payment terms shall be thirty (30) days from Buyers receipt of Manufacturers correctly presented invoice. A "correctly presented" invoice will contain this purchase order number sent to the billing address on this purchase order. Manufacturer representsPayment and Prices that prices quoted to or paid by Buyer shall not exceed current prices charged to any other customer of Manufacturer for deliverables which are the same or substantially similar to, and in the same or substantially similar quantities as the Deliverables. Manufacturer shall refund or Buyer may set off against subsequent invoices any amounts paid by Buyer in excess of such price(s). Manufacturer warrants that all Deliverables will conform to applicable specifications, drawings, descriptions, and samples, and will be of new manufacture, good workmanship and materials, and free from design defect, claim, encumbrance or lien, and be suitable for the purpose intended by Buyer. Manufacturer warrants that it has full title, right, power and authority to enter into this purchase order and perform its obligations under the purchase order. Manufacturer warrants that Deliverables that are services shall be performed in a professional and workmanlike manner. If the Deliverables delivered under Warranty this purchase order do not meet the warranties specified in this purchase order or other applicable warranties, Buyer may, at its option, return at Manufacturers expense, the defective or nonconforming Deliverables for credit, refund or set-off, or require Manufacturer to correct or replace, at no cost to Buyer, any defective or nonconforming Deliverables, including, without limitation, re-perform any Deliverables that are services. Return shipping to Buyer of corrected or replacement Deliverables shall be at Manufacturers expense. Deliverables required to be corrected or replaced 66 | P a g e
  • (including, without limitation, the re-performance of any Deliverables that are services) shall be subject to this Section 8 and Section 9 (Inspection) in the same manner and to the same extent as Deliverables originally delivered under this purchase order. Manufacturers warranties shall run to Buyer, its affiliates, subsidiaries, customers or users of the Deliverables and shall not be deemed to be exclusive of any other remedy at law or in equity available to Buyer, its affiliates, subsidiaries, customers or users of the Deliverables. Buyers inspection, approval, acceptance, use of, or payment for all or any part of the Deliverables shall in no way affect its warranty rights. Manufacturer shall at its expense indemnify, defend and hold harmless, Buyer, its directors, officers, employees, affiliates, subsidiaries, agents, customers and end users, from any and all loss, damages or liability (including, without limitation, reasonable legal fees and costs) arising out of or resulting in any way from any defect in the Deliverables, or from any act or omission of Manufacturer, its agents, employees or permitted subcontractors in connection with the Deliverables. This indemnification shall be in addition to Manufacturers warranty obligations. Deliverables, or from any act or omission of Manufacturer, its agents, employees or permitted subcontractors in connection with the Deliverables. This indemnification shall be in addition to Manufacturers warranty obligations. Buyer shall have the right by written notice to change the terms of this purchase order, the drawings, specifications or other descriptions, the time, method or place of delivery or the method of shipment or packaging or to suspend delivery of the Deliverables. Upon receipt of Change Orders and such notice, Manufacturer shall proceed promptly toDeliverable Substitution make such changes. If any such change causes a change in the cost of the Deliverables or in the time required for performance, Manufacturer shall provide prompt notice to Buyer of any such change and an equitable adjustment shall be negotiated promptly and this purchase order shall be modified in writing accordingly. 67 | P a g e
  •  REORDER POINT (Inventory Control) Raw Material Purchase Order Considerations Existing Proposed Frequency of Purchase Order per Year 210 Times 241 Times Safety Stock per Year 60,000 Units 60,000 Units No. of Units to Determine Reorder 5,000 Units 2,802 Units Estimated Reorder Time 2 Weeks 1 Week Table 19: Material Purchase Ordering Approach  Solving For Economic Order Quantity (EOQ) of Sport Defence RO, √ where, Q = Annual Requirement Quantity; 70,000 Units per year CO = Cost per Order; Php 17.25 CU = Cost per Unit; Php 38.42 per Unit CC = Carrying Cost per Unit; Php 0.75 per Unit SOLUTION: ( )( ) EOQ = √ ( )( ) = 290 UNITS 68 | P a g e
  • NUMBER OF ORDER PER YEAR = = 241 ORDERS (Frequency of PO) TOTAL COST = CU*Q + CO (Q/EOQ) + CC (EOQ/2) = 38.42*70,000 + 17.25(70,000/241) + 0.75(241/2) = Php 2,694,500.00  To Determine Reorder Point of Purchase Order, Safety Stock (Buffer) = Planned Demand – Actual Demand = 130,000 – 70,000 = 60,000 Units Lead Time (in year) = 2 weeks, 3 days or 0.0467 year *REORDER LEVEL = Safety Stock of Supply x Shipping Time = 60,000 x 0.0467 = 2,802 Units The manager should place an order before the inventories drop below2,802 units in order to avoid stock-out. Reorder Point = = 1.071 or 1 Week The company must place an order every week to avoid shortage of rawmaterials or material stock-out. 69 | P a g e
  •  REORDER SCHEDULE FORM Annual Stock Inventory ControlCompany Name: Unilever Philippines, Inc. Controlled by: _____________________________Division: Personal Care – Deos City Valerie Lim, RO Material Planner Roll-on Deodorants Supplier Information Purchasing InformationWeeks Item Information Reorder Remarks Supplier Part No. Reorder Level Description Category Remaining Stocks Qty. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 70 | P a g e
  •  WEEKLY REORDER SCHEDULE (Sample Simulation) Week 1 Week 2 Week 3 Mon Tues Wed Thurs Fri Sat Sun Mon Tues Wed Thurs Fri Sat Sun Mon TuesProduction MASS PRODUCTIONScheduleBeginning RM for Production Run (Wk1) Critical LevelInventorySafety Stock Remaining RM (Buffer) PO must be placed toReorder Time REORDER POINT Suppliers every Friday!Shipping Time REPLENISHMENT PERIODEnding Minimal RMInventory StockCarriage Expected Delivery TimeInward of RM at WarehouseStart of New RM for Production Run (Wk2)Inventory LEGEND: - Production Run of Rexona Men Sport Defence 50mL - RM available during Production - Replenishment Time - Point wherein Stocks must be restocked - RM Stock starts to end - Buffer Stock - Delivery Time at Warehouse - Reordering Schedule 71 | P a g e
  • COMPUTATION:Cost:  Inventory Purchase Order in a Year (inclusive of software programming and design): = Php 2,694,500.00  Revising Material Purchase Order Contract = N/A  Cost of Management’s Conference/Session = Php 15,000  Total Cost = Php 2,709,500.00Benefit:  Contribution in Productivity Loss = 33.15%  Productivity Loss = 13.20%  Aggregate % Eliminated in Productivity Loss: = 33.15% x 13.20% = 4.38%  Quantity Produced per month in Productivity Loss (in units): = 4.38% x 5,193 = 228 roll-on deodorants  Total Benefit in a month: = 228 x Php 98.42 = Php 22,439.76  Total Benefit in 6 months: = Php 22,439.76 x 6 = Php 134,638.56 72 | P a g e
  •  Total Benefit in 12 months: = Php 22,439.76 x 12 = Php 269,277.12  Payback Period: = = 0.056 year or 2 weeks and 5 daysExpected Result Rescheduling Material Purchase Order (MPO) per week will lessenplanning risks as well as decrease the work load of employees. 73 | P a g e
  • ACA 2: REPLACEMENT OF NEW CAPPING MACHINE PARTS Parts of capping machine are internal to the machine and essential inspeeding up the production. All of these parts are in worn-out condition.Consequently, the machine encounters frequent breakdown and opportunitylosses. Replacement/changing of parts shall depend on the part usage andreplenishment level since every component differs in condition. It can increasethe efficiency and utilization of the capping machine. It is necessary tochange/replace the parts and bring this to the attention of the Maintenance andProduction Department to continue good production and avoid stoppage.ADVANTAGES:  Improve capacity plan of the machine  Longer machine utilization  Enhance parts reliability  Increase overall system availability  Ease of maintenanceDISADVANTAGES:  Expensive cost of machine parts  Stoppage/shutdown of the production 74 | P a g e
  • Action Plan Parts and Std. Quantity Parts Replenishment Illustration Acquisition Cost Assemblies Needed per Annum Replenishment Level = Safety Stock + Unit Price = Php 2,420.75 Consumption Rate Total = Php 2,420.75 x 721. Bottle Capping 16 = Php 174,294.00 Headsets RL = 50 Parts + 22 Parts = 72 Parts in a year RL = 10 Parts + 4 Parts Unit Price = Php 12,000.50 = 14 Parts in a year Total = Php 12,000.50 x 162. Electric Motor 1 = Php 192,008.00 75 | P a g e
  • RL = 2 Parts + 1 Part Unit Price = Php 86,950.00 1 Whole Total = Php 86,950.00 x 33. Semi- = 3 Parts in a year Assembly Automatic = Php 260,850.00 Feeder RL = 15 Parts + 12 Parts Unit Price = Php 1,180.00 = 27 Parts in a year Total = Php 1,180.00 x 274. Roller Chain 3 = Php 31,860.00 Unit Price = Php 3,070.255. Screw RL = 10 Parts + 4 Parts 6 Total = Php 3,070.25 x 14 Capping = 14 Parts in a year Heads = Php 42,983.50 76 | P a g e
  • Unit Price = Php 353.006. Tension RL = 40 Parts + 28 Parts Total = Php 353.00 x 68 16 Spring = 68 Parts in a year = Php 24,004.00 Subject to Repair/7. Inline Capping Maintenance Elevator (Too expensive) Total Acquisition Cost Php 725,999.50 Total Parts Replenishment per Year 198 Parts Table 20: Procurement List of Capping Machine Parts/Assemblies The total cost of procuring these parts/assemblies is Php 725,999.50. The machine needs to replace its old parts by 198 new spares per year. When installed to the machine, it will minimize the possibility of lost performance and delays and increase opportunities. These innovations will and can maximize the capacity of these machines and there will be less occurrence of breakdown/malfunction. Therefore, machine efficiency will increase so as the production and profit. 77 | P a g e
  • COMPUTATION:Cost:  Parts Needed per Annum: Replenishment Level = Safety Stock + Consumption Rate = (50 Parts + 22 Parts) + (10 Parts + 4 Parts) + (2 Parts + 1 Part) + (15 Parts + 12 Parts) + (10 Parts + 4 Parts) + (40 Parts + 28 Parts) = 198 Parts in a Year  Procurement Cost of Capping Machine Parts = Php 725,999.50  Cost of Labor (Service and Installation Fee) = Php 30,000.00  Total Cost = Php 755,999.50Benefit:  Contribution in Productivity Loss = 29.09%  Productivity Loss = 13.20%  Aggregate % Eliminated in Productivity Loss: = 29.09% x 13.20% = 3.84%  Quantity Produced per month in Productivity Loss (in units): = 3.84% x 5,193 = 199 roll-on deodorants  Total Benefit in a month: = 199 x Php 98.42 = Php 19,585.58  Total Benefit in 6 months: = Php 19,585.58 x 6 = Php 117,513.48 78 | P a g e
  •  Total Benefit in 12 months: = Php 19,585.58 x 12 = Php 235,026.96  Return on Investment (ROI): = = 31.09%  Payback Period: = = 3.22 year or 3 years and 2 monthsExpected Result Replacement of new parts will decrease the chances of futurebreakdown and may ease the maintenance of the machine. It can also improvethe availability (uptime) of the machine. Thus, production output will increase. 79 | P a g e
  • ACA 3: WEEKLY PREVENTIVE MAINTENANCE OF VISION CAMERA Conducting weekly maintenance of vision camera will minimize errors invisual detection and delays in the production. In order to attain this, workmaintenance plan of machine should be reviewed thoroughly especially themaintenance for the two (2) vision cameras. The work plan is a written document that will allow users to know themaintenance schedule of vision camera and the duties/responsibilities not onlyby the maintenance department but also the operators.ADVANTAGES: Smooth flow of operations Minimize repair time High production output Minimize downtimes Optimization of vision camera machineDISADVANTAGES: Additional tasks for operators Maintenance operations will affect the production/operations 80 | P a g e
  • Action Plan REPAIR AND MAINTENANCE FORM Month: ______________________ Reference No.: _____________ Check (✓)the APPROPRIATE Activity to be Performed: Time Started: _________________ Time Ended: ______________ Cleaning Lubrication Maintenance Inspection Repair (Emergencies) OverhaulIMPORTANT INSTRUCTION: Place a (✓) on the activity that PASS the inspection while (✖) on the activity that FAIL the reading. In case of (✖), immediately report to Technician. MONTH PM Activities WEEK 1 WEEK 2 WEEK 3 WEEK 4 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 1 2 3 4 5 6 7 ELECTRICAL1. Check ampere an insulation rating: a. 55-58 Amps ✓ b. ≤ 60 ºC ✓2. Check electrical a. Earth clamps sealed ✓ accessories: b. Insulation tape in good condition ✖ c. Connector strip attached ✓3. Inspect electrical wiring (2/0 gauge) ✓4. Check electrical contacts (properly soldered to circuit) ✓5. Check panel settings: a. High motion sensitivity ✓ b. HD Jpeg picture format ✓6. Tighten electrical terminals (5 Amps terminal block strip) ✖ MECHANICAL1. Clean equipment (motor free from dirt/dust) ✓2. Check mechanical seals: a. Complete (8 pcs.) ✓ b. In good condition ✖3. Check pneumatics (motor noise of 80dB) ✓4. Check lighting (brightness and contrast adjustment) ✓5. Inspect mainframe (no scratch or evident markings) ✓6. Check sensor condition: a. Capture signals from main control ✖ b. Maintains normal temperature (30ºC)7. Check camera lenses (no dirt) ✓8. Tighten bolts and caps ✓ Technician’s Signature _______________________ ___________________________ ________________________ _______________________________ _______________________ ___________________________ ________________________ _______________________________ Comments & Remarks _______________________ ___________________________ ________________________ _______________________________ Final Endorsement and Approval by:______________________________________ Engr. Philip Nadela, Maintenance Engineer 81 | P a g e
  • Cost Comparison (Preventive Maintenance) Benefits Monthly Twice a Month WeeklyMaintenanceFrequency per 12 24 48AnnumPM Expenses Php 3,394.00 Php 1,697.00 Php 848.00Replacement Costof Vision Camera Reduced by 50% Reduced by 75% Reduced by 87.5%SensorsBenefit of PM 1,523 roll-ons 2,285 roll-ons 2,665 roll-ons(Units Produced)Table 21: Cost Comparison of Preventive Maintenance ScheduleCOMPUTATION:Cost:  Maintenance Cost: Frequency of Maintenance Task: = 1 time/week x 4weeks/month x 6months = 24 times Wage of Technician = Php 420.00/day Maintenance Cost for (2) Vision Camera: = 24times x Php 420.00 x 2 = Php 20,160.00  Cost Maintenance Paraphernalia: = (Cost of papers x # of copies x # of pages) + Poster (Memo) = (Php1/sheet x 100sheets x 2pages) + Php 25.00 Maintenance Paraphernalia Cost: = Php 225.00  Total Cost in a month = (Php 20,160.00 + Php 225.00) x 2 = Php 40,770.00Benefit:  Contribution in Productivity Loss = 25.48% 82 | P a g e
  •  Productivity Loss = 13.20%  Aggregate % Eliminated in Productivity Loss: = 25.48% x 13.20% = 3.36%  Quantity Saved per month in Productivity Loss (in units): = 3.36% x 5,193 = 175 roll-on deodorants  Total Benefit in a month: = 175 x Php 98.42 = Php 17,223.50  Total Benefit in 6 months: = Php 17,223.50 x 6 = Php 103,341.00  Total Benefit in 12 months: = Php 17,223.50 x 12 = Php 206,682.00  Return on Investment (ROI): = = 506.95%  Payback Period: = = 0.20 year or 2 months and 11 daysExpected Result Providing robust weekly maintenance plan to the vision camera willenhance its performance and reduce errors in the long run. 83 | P a g e
  • ACA 4: APPLICATION OF OPERATORS’ VISUAL CONTROL Workers mistakenly set up the machines which create changeoverproblems. It means that the production is either delayed or stopped due to theirnegligence or accidental cause. Implementation of “poka yoke” (mistake-proofing) concept on visualcontrols of the operator will ensure that guidelines will be followed correctly.There will be a proper work instruction with labels and attachments to improveprocedural compliance by the workers.ADVANTAGES:  Increase workers’ productivity  High production output  More organized flow of operationsDISADVANTAGES:  Confused operator  Additional training by the management 84 | P a g e
  • Action Plan  FAILURE PREVENTION COUNTERMEASURE FOR UNSCRAMBLER ELECTRIC MOTOR 1 2 3 . . . STEPS TO BE TAKEN:1. Clean outside of motor and inside of cap.2. Attach velcro to end cap and Filter media to velcro.3. Motor becomes part of Daily Operator PM. When it gets dirty, Maintenance or Operator must change it. 85 | P a g e
  •  MECHANICAL CASE PACKER (MCP) VISUAL CONTROL WORK INSTRUCTION1. Ibatay sa Daily Production Plan (DPP) ang kahon na gagamitin.2. Alisin sa pagkakabalot at pagkakatali ang mga kahon. Itabi ng maayos ang mga nagamit na balot at tali.3. Magsagawa ng random checking bago isalang ang corrugated box sa Case Erector.4. Tiyakin na walang nakahalong ibang uri ng kahon sa lagayan.5. Siguraduhing tama ang disenyo, code date, at item code ng kahon.6. Siguraduhin ding tama ang orientation ngcorrugated box bago ilagay sa Case Erector.7. Ihiwalay ang mga kahong nakitaan ng depekto.8. Punan ng sagot ang Corrugated Box Logsheet. 86 | P a g e
  • COMPUTATION:Cost:  Cost of Seminars/Trainings in 6 months: = Php 5,525 x 2 = Php 11,050  Total Cost in 12 months = Php 22,100Benefit:  Contribution in Productivity Loss = 12.28%  Productivity Loss = 13.20%  Aggregate % Eliminated in Productivity Loss: = 12.28% x 13.20% = 1.62%  Quantity Saved per month in Productivity Loss (in units): = 1.62% x 5,193 = 84 roll-on deodorants  Total Benefit in a month: = 84 x Php 98.42 = Php 8,267.28  Total Benefit in 6 months: = Php 8,267.28 x 6 = Php 49,603.68  Total Benefit in 12 months: = Php 8,267.28 x 12 = Php 99,207.36Expected Result Implementing appropriate visual controls will minimize the occurrence ofsetting up mistakes coming from the workers. They will be more dedicated withwork and be more aware of the seriousness of their actions. 87 | P a g e
  • 5.2 COST – BENEFIT ANALYSIS BENEFITS ACA COST TANGIBLE INTANGIBLE Inventory PO Cost = Php 2,694,500.00ACA 1:  Elimination of 4.38%  More organized Cost of Revising MPO Contract = N/A scheduling systemReschedule productivity loss equivalentMaterial Purchase Cost of Management’s to 228 roll-ons produced  Improve company’sOrder (MPO) to the competitiveness Conference/Session: amounting to PhpSuppliers every = Php 15,000.00  Enhance relationshipWeek 269,277.12 per annum with clients and Total Cost: suppliers = Php 2,709,500.00 per annum Cost of Acquiring Machine Parts:  Return on Investment:  Improve productionACA 2: = Php 725,999.50 = 3 years, 2 months capabilityReplacement of Cost of Labor:  Elimination of 3.84%  Smooth flow ofNew Capping productivity loss equivalent operationsMachine Parts = Php 30,000.00 to 199 roll-ons produced Total Cost: amounting to Php = Php 755,999.50 per annum 235,026.96 per annum 88 | P a g e
  • Maintenance Cost:  Return on Investment:ACA 3: = 2 months, 11 days  Enhance business = Php 20,160.00 competenciesWeekly Preventive Cost of Maintenance Paraphernalia:Maintenance of  Elimination of 3.36%  Smooth flow ofVision Camera = Php 225.00 productivity loss equivalent operations Total Cost: to 175 roll-ons produced  Enhance machine = Php 40,770.00 per annum amounting to Php reliability 206,682.00 per annumACA 4: Cost of Seminars/Trainings in six (6)  Elimination of 1.62%  Improve workApplication of months: productivity loss equivalent methodOperators’ Visual = Php 11,050.00 to 84 roll-ons produced  Enhance operators’Control Total Cost: amounting to Php 99,207.36 knowledge and skills = Php 22,100.00 per annum per annumTable 22: Cost-Benefit Analysis 89 | P a g e
  • CHAPTER VI CONCLUSION AND RECOMMENDATION6.1 CONCLUSION This study is all about minimizing the 13.20% productivity loss inmanufacturing Rexona Men Sport Defence Roll-on Deodorant 50mL at UnileverPhilippines, Inc. Operational problems were brought about by shortage of rawmaterials and worn-out parts of capping machine. Hence, because of theseproblems, the company experience low productivity and profit loss. Productivity will be maximized when the improvement is obtained in thearea of operations planning and preventive maintenance. Revision of MaterialPurchase Order (MPO) of the supplier, replacement of new capping machineparts/assemblies, and weekly preventive maintenance of vision camera are themain goals of the study. These will lead to a higher productivity, increasingrevenue, and gaining more trust and satisfaction from the clients. 90 | P a g e
  • 6.2 RECOMMENDATION The proposed alternatives aim to reduce the 13.20% productivity loss inmanufacturing Rexona Men Sport Defence RO 50mL. As a result, there will be apositive effect to the company. Based on the four (4) alternative courses of actions, it is highlyrecommended to implement the actions 1, 2, and 3 which are all aboutrescheduling of MPO into a weekly delivery to further enhance the inventoryschedule of raw materials, replacement of new parts in capping machine tominimize frequent breakdown/malfunction, and practicing preventivemaintenance every week to reduce errors. The purpose of ACA 1 is improvingthe planning and scheduling system of the company, ACA 2 is enhancing theavailability and utilization of capping machine, and ACA 3 is keeping the machinein good condition. All of them can eliminate the productivity loss by 87.72% andgain return on investment in three (3) years right after implementation. ACA 4 which is about imposing sanctions to workers as well as othersolutions is also acclaimed to minimize the problems pertaining to roll-ondeodorants’ productivity loss. 91 | P a g e
  • CHAPTER VII DETAILED PLAN OF ACTION 7.1 GANTT CHART Weeks Activities Action Party 1 2 3 4 5 6 7 8 9 10 11The proposal of a one-week materialpurchase order (MPO), replacement ofcapping machine parts, and weekly Operations Manager,preventive maintenance of vision camera Production Supervisor/s,shall be presented by the researcher to the Planning HeadTop Management of Unilever Philippines,Inc. Forecasts on costs will be presented sothat productivity of the organization.The proposal will be reviewed by the Top Management,Management and the departmental Production Engineers,managers. This will be subjected for Plannersapproval.After passing the proposal, the Finance Finance Manager,Department will allocate budget necessary Production, Planning, andresources needed to be scheduled. Engineering Department, Operations ManagerFor ACA 1, reschedule material purchase Operations Managerorder will undergo bidding. Costs of Production, Planning,operations shall be realized together with Engineering and Financeconferences with the suppliers. Manager 92 | P a g e
  • For ACA 2, replacement and procurementof capping machine parts shall be allotted Operations Manager,with budget. All worn-out parts of the Production Supervisorscapping machine shall be replenished one-by-one.Then ACA 3, preventive maintenance shallbe rescheduled every week. There will be a Operations Manager,review regarding the technical requirements Production Supervisors,of the vision camera. Maintenance EngineersFor ACA 2, Management shall procure the Production Supervisors,required machine parts of the capping Operations Managermachine.For ACA 1, Conferences and seminars Top Managementshall be done by top management with the Production Supervisors,suppliers. Operations ManagerFor ACA 3, Implement maintenance Production Supervisors,activities and distribute tasks to Operations Managermaintenance engineers and operators.Then ACA 2, installation and testing of Production Supervisors,machine upon procurement. Operations ManagerThe proposal shall be monitored and Production Supervisors,evaluated by the Management. All actions Operations Managershall be scheduled and to be consistentlychecked. 93 | P a g e
  • 7.2 DETAILED PLAN OF ACTIVITIESHere is the list of activities that should be done in eleven (11) weeks:1. Presentation of Proposal The proposal of the recommended alternative courses of action will bepresented by the researcher to the Top Management,Production and PlanningDepartment.2. Approval of the Management The Top Management will study the proposal and look on the actions if it isnecessary to the production/operations.3. Planning, Scheduling and Budget Allocation Planning is the most important step to be made by the management. It willbe consulted to the functional departments of concern for further coordination andcommunication. In a span of eleven weeks, the project team will assess the dateand time when to start the implementation of the proposed alternatives.4. Designate Important Conferences and Meetings The Material Purchase Order (MPO) scheduling system of inventorymanagement shall be organized every week. Seminars will be conducted to furtheranalyze and design the software. 94 | P a g e
  • 5. Evaluate Suppliers of the Capping Machine Parts Costs for rescheduling will be part of the production forecasts. Planners willreevaluate the system and change its reorder duration every week. The managertogether with the suppliers shall revise the contract in best possible time.6. Implementation and Machine Testing The Production Department will implement the appropriate alternativesapproved by the management. It is the stage wherein their scheduling system willbe organized in a weekly basis, parts of capping machine will be in good condition,and preventive maintenance shall be improved.7. Evaluation and Monitoring There will be an assessment to the effect of the action taken. There must bea significant change after the action. It will be assessed by the OperationsManager as well as Production and Planning Department assigned for the reviewof the whole project.8. Reporting to the General Manager There will be feedbacking of the actions to the superiors. This will ensurevalidation of the three proposals (ACA 1, 2, and 3) in the production of RexonaMen Sport Defence. 95 | P a g e
  • BIBLIOGRAPHYBooksGreen, Joey. (2004). Joey Greens Incredible Country Store: Potions, Notions and Elixirs of the Past and How to Make Them Today (1st Ed.). Rodale Books.Laden, Karl. (1999). Antiperspirants and Deodorants, Second Edition. Marcel Dekker.Panneerselvam, R. (2005). Production and Operations Management (2nd Ed.). Prentice Hall of India Private Limited, New Delhi.Electronic SourcesChesterton, Gilbert K. (n.d.). Retrieved January 4, 2013, from QuotationsBook.com website: http://quotationsbook.com/quote/19952/Darbre, P.D. (2005). Aluminium, antiperspirants and breast cancer. Retrieved February 14, 2013, from PubMed.com website: http://www.ncbi.nlm. nih.gov/pubmed/16045991Deodorant. (n.d.). Rogets 21st Century Thesaurus, Third Edition. Retrieved January 4, 2013, from Thesaurus.com website: http://thesaurus.com/ browse/deodorantHoletzky, Sherry. (n.d.). What is the Difference between Antiperspirant and Deodorant? Retrieved January 19, 2013, from WiseGeek.org website: http://www.wisegeek.org/what-is-the-difference-between-antiperspirant-and- deodorant.htmIannelli, Vincent. (2004). Pediatrics – Starting To Use Deodorant and Controlling BO. Retrieved January 19, 2013, from About.com website: http://pediatrics.about.com/od/weeklyquestion/a/04_deodorant.htm 96 | P a g e
  • Labelling. (2013). Web Finance Inc. Retrieved January 5, 2013, from BusinessDictionary.com website: http:// www.businessdictionary.com/defi nition/labeling.htmlO’Rourke, Dara. (2010). Tips to Picking the Best Deodorant (and Antiperspirant). Retrieved January 21, 2013, from GoodGuide Blog website: http://blog. goodguide.com/2010/01/12/tips-to-spicking-the-best-deodorant-and- antiperspirant/Paddock, Kay. (2012). What Are the Different Types of Deodorant? Retrieved January 21, 2013, from WiseGeek.org website: http://www.wisegeek.com/ what-are-the-different-types-of-deodorant.htmPierce College. (2010). Production and Operations Management. Retrieved February 14, 2013, from Pierce College website: http://faculty.pierce college.edu/rskidmore/Ghost/library/Chapters/CHPT14-04.pdfRexona Men. (2012). Microsoft. Retrieved December 25, 2012, from MSN Malaysia Locker Room website: http://msn.lockeroom.com.my/stash/ 2012/06/rexona1/1#.UNu8_-Rln2ASchueller, Randy (n.d.). How Products Are Made? Retrieved January 2, 2013, from MadeHow.com website: http://www.madehow.com/Volume-5/Antiperspirant- Deodorant-Stick.htmlSt. Pierre, Steve. (2012). Debate - Pros and Cons About Deodorant Vs Antiperspirant. Retrieved January 19, 2013, from MSN Malaysia Locker website: http://ezinearticles.com/?Debate---Pros-and-Cons-About-Deodo rant-Vs-Antiperspirant&id=7310153Unilever. (n.d.). The more you move, the more it works. Retrieved January 8, 2013, from Unilever Philippines website: http://www.unilever.com/innovation/ productinnovations/the-more-you-move/ 97 | P a g e
  • APPENDICES 98 | P a g e
  • APPENDIX A: OUTPUT LOSS OF EACH VARIANT PER MSO Product Name/Variant MSO Country Planned RO Actual RO Variance Output Loss (%) AXEAXE Anarchy US 223114 217668 5446 2.44AXE Apollo US 215328 212514 2814 1.31AXE Phoenix US/CAN 235719 233147 2572 1.01AXE Dark Temp ASIA/EU PH 232249 230005 2244 0.97AXE Vice ASIA PH/SG/TW 221101 214243 6858 3.10 DOVEDOVE Original ASIA/AMET/ANZ PH/SG 228609 225582 3027 1.32DOVE Unscented ASIA PH/SG/VT 233756 222103 11653 4.99DOVE GoFresh ASIA MY/SG/VT 231996 229967 2029 0.87DOVE Green Tea & Cucumber ASIA PH/VT 227645 224996 2649 1.16DOVE Pink ASIA/EU MY/SG/VT 233162 229545 3617 1.55DOVE Pure ASIA/EU MY/SG/VT 232804 226471 6333 2.72DOVE Clean Comfort ANZ/EU/LATAM 236734 227106 9628 4.07DOVE Whitening ASIA/AMET PH/VT 226641 220618 6023 2.66DOVE MEN Extra Fresh AMET/LATAM PH/SG 226382 210052 16330 7.21 REXONAREXONA MEN Active ASIA/ANZ PH/TW 234138 233541 597 0.25REXONA MEN Adventure ASIA PH 231157 225663 5494 2.38REXONA MEN Extreme AMET/EU 235204 227972 7232 3.07REXONA MEN Ice Cool ASIA PH/VT 234075 224353 9722 4.15REXONA MEN Ionic AMET 235771 211440 24331 10.32REXONA MEN Lotus F1 Team US/CAN 234952 222653 12299 5.23REXONA MEN Quantum ASIA PH/HK/TH 234253 228833 5420 2.31REXONA MEN Sport Defence AMET 235973 204817 31156 13.20REXONA MEN V8 ASIA PH/HK/VT 233821 225542 8279 3.54 99 | P a g e
  • REXONA WMN Cotton ASIA HK/TH/TW 234564 232053 2511 1.07REXONA WMN Confidence ASIA PH/SG 232391 226753 5638 2.43REXONA WMN Free Spirit ASIA MY 230154 227303 2851 1.24REXONA WMN Naturals ASIA MY/SG 232102 227823 4279 1.84REXONA WMN Passion ASIA PH/MY/SG/CB 232631 228543 4088 1.76REXONA WMN Powder Dry ASIA MY/SG 232073 225693 6380 2.75REXONA WMN Sexy ASIA/EU MY/SG 231975 223263 8712 3.76REXONA WMN Shower Clean ASIA/AMET MY 230127 218623 11504 5.00REXONA WMN Whitening ASIA PH/MY/SG 230572 229826 746 0.32 Computation:  Output Loss: | | Roll-On Deodorant Production 8.83% 20.17% Axe 26.55% Dove Rexona Men 44.45% Rexona Women 100 | P a g e
  • APPENDIX D: ON-THE-JOB TRAINING (OJT) AT UNILEVER Gift Pack: Unilever Products 103 | P a g e
  • From left to right:Unilever Manila Employees (Trina Evangelista and Rica Torres) and Yours truly (Godwyn Patricio) 104 | P a g e
  • 109 | P a g e
  • RESEARCHER’S PROFILE 110 | P a g e
  • GODWYN DE JESUS PATRICIO1171 Sgt. Legaspi St. Binakayan, Kawit, Cavite+63917-852-5420/+63906-155-5526godwynpatricio@yahoo.comCAREER OBJECTIVE Determined leader and consistent scholar aiming for Industrial Engineering, QualityControl, and/or Supply Chain Management On-the-Job Training in a prominent manufacturingfirm that offers experience through its advanced facilities and innovative productsEDUCATIONAL BACKGROUNDTertiaryBachelor of Science in Industrial EngineeringDe La Salle University – DasmariñasDasmariñas City, Cavite2008 – PresentScholarship: Unilever Philippines, Inc. Academic Scholarship (GPA: 2.50+)SecondarySt. Michael’s Institute (7th Honors)Poblacion, Bacoor, Cavite2004 – 2008PERSONAL STRENGTHS Reasonable communication and leadership skills Proficient in Microsoft Office Programs (Word, Excel, PowerPoint and Visio) Accepts challenging and complex work Resourceful and innovativeACCOMPLISHMENTS Completed a Project Feasibility and Technical Research Study on Touchscreen Videoke Finished several Theses in major subjects of IE such as Motion and Time Study, Quality Control and Assurance, Ergonomics, Plant/Shop Layout, Operations Planning and Control, Total Preventive Maintenance, Systems Engineering, and Operations ResearchAWARDS/RECOGNITION1st Honor of IEE41, 1st and 2nd semester of S.Y. 2011-2012De La Salle University – Dasmariñas 111 | P a g e
  • 1st Honor of IEE31, 2nd semester of S.Y. 2010-2011September 30, 2011De La Salle University – Dasmariñas3rd Honor of IEE31, 1st semester of S.Y. 2010-2011March 9, 2011De La Salle University – DasmariñasAFFILIATIONSUnilever Philippines, Inc. Academic Scholar3rd year – 4th year of S.Y. 2010 – PresentMember, Junior Philippine Institute of Industrial Engineers (JPIIE)1st semester and 2nd semester of S.Y. 2008 – PresentRECENT SEMINARS ATTENDEDKAIZEN: Continuous Improvement in the Field of Industrial EngineeringFebruary 18, 2012Le Pavilion, Roxas Boulevard, Pasay CityLabor Laws for Industrial Engineers: Developing Harmonious Labor Relations inIndustrial SettingsSeptember 15, 2011De La Salle University – DasmariñasQuality Management System SeminarSeptember 8, 2010De La Salle University – DasmariñasPERSONAL INFORMATIONBirth Date: June 1, 1991Birth Place: Las Piñas CityAge: 21 y/oCivil Status: SingleSex: MaleCHARACTER REFERENCEEngr. Ma. Estrella Natalie B. PinedaAdviser/Coordinator/ChairJPIIE/IE Dept./ Engineering Dept.+63922-844-8396 112 | P a g e