Case analysis toms manufacturing corporation

TOMS MANUFACTURING CORPORATION
Manufacturing Plant Visit

Case Analysis
In partial fulfillment of the requirement for

Production and Operations Management

Submitted to:
DR. VICTOR T. CRISOSTOMO

Submitted by:
Leah P. Digo
Elizabeth S. Francisco
Michael Q. Loyola
Rhea F. Perea
Catherine M. Sagcal
Wylyn S. Salva
Mary Grace A. Saylon
Eugenia F. Serrano
Mark I. Varem

PHILIPPINE CHRISTIAN UNIVERSITY – DASMARINAS

Dasmariñas Cavite 4115

TABLE OF CONTENTS

PART I. About TOMS MANUFACTURING CORPORATION
Company Profile …………………………………………………………………………………………… 2
Company History ………………………………………………………………………………………….. 3
Company Location & Structure …………………………………………………………………….. 4
Corporate Policy, Vision and Mission
& Customers .................................................................................................... 5
Organization Chart ……………………………………………………………………………………….. 6
Sales per Segment ………………………………………………………………………………………… 7
Sales and Projection …………………………………………………………………………………….. 8

PART II. MACHINES, PROCESS AND PRODUCT
Company Machines ………………………………………………………………………………………..11-12
Operational Flow …………………………………………………………………………………………… 13-14
Company Product …………………………………………………………………………………………. 14-15
Quality Assurance …………………………………………………………………………………………. 16
Waste Management ……………………………………………………………………………………… 16
Maintenance Management ………………………………………………………………………….. 16

PART III. PLANT VISIT CASE STUDY
Identification and Analysis of the Problem …………………………………………………… 18
Alternative Courses of Action ………………………………………………………………………….18-19
Plan of Action and Cost Analysis ……………………………………………………………………..20
Appendix …………………………………………………………………………………………………………21

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PART 1

COMPANY PROFILE

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Registered Name

:

TOMS MANUFACTURING CORPORATION

Date Established

:

October 20, 1997

Address

:

B1 L2 Daiichi Industrial Park Maguyam
Silang, Cavite

Capital

:

PHP 100,000.000.00

Stockholder

:

100% owned by NANBU JAPAN

Area

:

lot area: 9,242m2

Sales

:

US$ 12,440k (FY12 performance)

Employees

:

318 personnel (JPN: 4) as of June, 2013
Male; 138, Female; 180
Regular; 125, Contractual; 120, Agency; 69

Product Line

:

Mold Fabrication, injection molding,
Painting, Printing Assembly

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floor area: 5,974,3m2



Toms Manufacturing Corporation, a commitment of excellence in Plastics
Technology!
TOMS, a member of Nanbu Plastics Inc. is one of the growing plastic precision
company in the Philippines that aims to be the largest Plastic Manufacturing
Company and no.1 in the country. Our nature of business varies extensively in the
manufacturing, painting/printing and assembly of precision plastic parts for
automotive, electronics, medical, housing and other applications beyond the reach
of your imagination.
In middle of August 1997, TOMS decided to have second overseas plant in
the Philippines.

In March 2003, in order to TOMS to remain competitive, the

company applied for its ISO Certification. And so, the company has been
ISO9001:2000 certified.
In April 2005, TOMS became a member of NANBU Group of companies
transferred the 100% capital stock. The number of injection machines 42 units with
some units of painting and printing machines and with a total of 150 manpower.
In November 2006, TOMS applied for its ISO environmental certification and
became ISO 14000; 2003 certified.
In February 2008, TOMS became ISO/TS16949 certified. TOMS decide to
expand its business through Mold Fabrication.

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LOCATION:

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TOMS has affiliated overseas companies including in Japan; Yoshida
Factory, Kyushu Nanbu Plastic Co. LTD, Oigawa Factory, Hamamatsu Factory,
Susono Factory, and also in China; Shanghai Nanbu Plastics, Dong Guan Nanbu
Plastics, Suzhou Nanbu Plastics, Guangzhou Nanbu Plastics. In Philippines; Nanbu
Philippines Inc., and in Indonesia; PT Nanbu Plastic, PT Standard.

TOMS COMPANY POLICY under NANBU Policy; we put all our hearts into
our principle ‘’CUSTOMER FIRST’’ and the ultimate goal of our company is our
customer will get satisfaction and emotion from us.
All employees serves with a pride of their work and the company strives to
train the person who will be able to contribute the good for the society through their
achievement.
TOMS COMPANY VISION is to become the No. 1 plastic injection company
in the Philippines.
TOMS COMPANY MISSION is to provide plastic parts that delight our
customers at a reasonable price, serve with pride and contribute to the good of the
society.
TOMS Main Customers is YAZAKI, FURUKAWA Electric Group, TOKAI
RIKA, YAMAHA, EPSON, Canon, TERUMO, USHIO, TECHTUIT and Panasonic.

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TOMS ORGANIZATIONAL CHART

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Figure 1

TOMS sales per segment shown in Figure 1. TOMS has the largest plastic
manufacturing in the Philippines. Their products are parts of computer, electronics,
automotive and medical use. They provide printing and painting also of these parts.

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On the graph below, TOMS recognized their sales from 2010 to 2012. In
2010 their actual sales was 10.25$ but in 2011 it decrease and it became 9.84$ and
by 2012, 12.44$ is the actual sales. TOMS have their projection of sales for the next
three years. Their target sales should be at least 50% increase compare to 2010 to
2012.

Figure 2

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PART 2

Machines, Operational Flow
and Product

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Figure 3

TOMS Manufacturing Corporation has 70 injection machines, these are their
main equipment. They use this to inject plastic to become a product. These
machines have their differentiation. In the table shown above, for example; In 36
injection machines, 1 machine is equal to 15 tons and the other 1 machine is equal
to 60 ton. In short these two machines have different unit of weight. On the other
hand, in 34 machines, 110 tons is equal to 2 machines, in 155 tons in equal to 2
machines also and 300 tons is equal to 2 machines. Therefore, in every machine
have different unit of weight.

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Figure 4

TOMS Manufacturing Corporation uses machines for molding process, painting
and printing to become a product.

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Figure 5

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Operational Flow



Operation starts with advanced quality planning wherein the parts which will
be used in making the product are being critically examined and delivered. The raw
materials are stored in the storage area wherein FIFO-LIFO is being practiced. After
the completion of the required raw materials, the next procedure will be the product
testing or the first trial sample, in this stage; sample products are undergoing
repetitive development and improvement to achieve its optimal form. After having
the desired form of the product, machine feeding or machine will be loaded by the
required raw materials for mass production. The molds will be set in accordance to
the kind of product that it will produce. When in process of the raw materials and
when the raw materials are being converted into the finish products, the finished
goods will go through the painting section and will be checked by the quality control
personnel for the packing and delivery. In TOMS Company, the production, Q/A
and Q/C are trained. They applied poka-yoke for correcting and prevention of
defects of product.

TOMS PRODUCTS

ELECTRONIC PRODUCTS

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ASSEMBLED PARTS

AUTOMOTIVE PARTS

HOUSING APPLICATION

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Quality Assurance

After processing the product, there are some teams that will inspect
the output before it goes to QC. Quality assurance is in charge for
checking/inspecting of the finish product. They make sure that the finish product is
based on their customer requirements.

The quality control team is tasked to have 100% final/assembly
inspection to the finished goods made by the production. However, some of TOMS
customers demand to check one by one of their request orders while other
customers are suit for per box checking.

Waste Management
With regards to waste they have very little waste because all of their
raw materials are plastics. TOMS have their recycle area where in some materials
that have been damaged, rejected and other materials will be use again. They have
proper segregation which materials will be recycled and which materials will be
collected. They make sure the people who will collect their waste have
environmental permit. TOMS have almost ZERO waste.

Maintenance Management

TOMS Manufacturing Corporation has a team in regards with their
machines/equipments. They have 24 hours every day production process that is
why on a regular basis they monitor/checked the machines/equipment through
Preventive Maintenance.

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PART 3

Case Analysis

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Identification of Problem
Products are frequently returned by the clients, because of a defect/quality
problem.

Analysis of the Problem
The quality of the product is very much important in a Manufacturing
Company. The customers will convince if the products have meet the customers
standards, needs and satisfaction therefore if the quality of the product is zero
defect the customers will tend to demand/order. The more demand the more sales
of the Company.

Alternative Courses of Action

1. There should be proper training for the Production, Quality Assurance
and Quality Control Team.

Advantages:
1. Zero defects of the products are possible to happen.
2. Production, Q/A and Q/C will be more productive and careful.

Disadvantages
1. Training program will be costly.

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2. Establish accurate guiding principles in Production, Q/A & Q/C
process.

Advantages:
1. There are machines that help production, Q/A & Q/C in producing product.
Proper guidelines of Poka-yoke should be implemented & follow.
2. There will be no product return.

Disadvantages:
1. Staffs that have difficulties in understanding new procedures will have long
period of time to comprehend.

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PLAN OF ACTION AND COST ANALYSIS

STEPS
NEEDED

Planning of
accurate
guiding
principles
Review of
Plans and
Decision
Making
Training
Program of
Personnel

Implementation

COST
ANALYSIS

BENEFITS
Rendered
time/days

Motivation

Execution

Interference
of Production
Process

P3000 (for
employee
compensation)

2 weeks
to 3
weeks

YES

80%

P450 (for
report and
other
materials

1 week

YES

60%

1 week

YES

80%

70%

1 week

YES

80%

70%

P15,000.00

Above table is plan of action and cost analysis that both company and
employee will benefit. If there is an accurate guiding principles the employees
particularly will have produce a good quality and zero defect of a product that will
satisfy the TOMS customers.
Management and responsible personnel in Production area will plan for
about 2 weeks to 1 month. The next thing to do is review of what they have planned
and decision making. Then, the training program of personnel, skilled people that is
knowledgeable regarding of Q/A and Q/C process will train the personnel. However,
those personnel that have difficulty to comprehend in this training program will have
difficulty also to execute his job. Implementation is very important because what
personnel learned from training should apply in actual job. At first they will find it
hard for the new proper implementation but soon after they will manage, it will
motivate them because the customers will not return defect products.

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APPENDIX

Photo taken in front of TOMS Company with Ms. Ria Rose Soriano and MBA
students.

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Case analysis toms manufacturing corporation

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