POWERDRIVE GEAR MOTORS, INC.

Group 3: Cua, Jeric Escalderon, Neil Gimenez, Lyle Pua, Mac

BACKGROUND

Capilihan, Virac, Catanduanes

Importation, manufacturing, and assembly plant at 15-C Santiago St., Dalandanan, Valenzuela City

Legally registered with Board of Investment registration no. 2005-043 dated June 07,2005

Supply Chain
Guangdong Yinhe Motorcycle Industry Co., Ltd Powerdrive Gear Motors, Inc.

Customs

Dealers

End-Users

Process of Assembly

 Divided into two parts:

Preparation and assembly

Assembly Station

FINISHED PRODUCT

Problems of the business

Recommendations

The business addresses the problem by looking for local sellers of the defective products. Another thing that the business does is email the suppliers in China regarding the defective parts they delivered and China replaces them but it would take time for the replacement part to be shipped to the Philippines which would delay the production of the motorcycles. Again for their first solution, the problem is the availability of the parts they want to replace. The problem with the second solution is the delay incurred because the company will have to wait for the shipment of the replacement parts from China.

ST 1

SUGGESTION

Use of safety stocks to anticipate these kinds of problems

Company should order parts of engine, electrical, and fuel system The parts preordered for this month is functional then the extra parts will be kept and order the exact number of

ND 2

SUGGESTION

Use of Lean Production Aims to eliminate the waste The company should use their regular mechanic employees to repair the defective parts A possibility that the quality is not ideal for the dealers who wants to purchase In doing this, the company will be able to remove carrying cost and use space for the defective parts