Chapter I

Introduction

EDS (Electrical Distribution System) Manufacturing Inc. is located in Anabu II,

Imus, Cavite. It was established in the Philippines as a subsidiary of Yazaki

Corporation of Japan. EMI is a manufacturing company that assembles and exports

automotive wire harnesses to the major carmakers in USA, Japan and Canada like

Mitsubishi Motors Manufacturing of America, Nissan Motors Manufacturing

Corporation, Toyota Motors Corporation, Chrysler Corporation and Canada

Automotive Manufacturing Inc. Yazaki exports internationally, 77 % of the products

go to North America and 23 % go to Japan.

The Environmental Policy of the Company is “Maintaining a sustainable

environment is our commitment” and the Quality Policy of the Company is “Better

product, lowest price and on-time delivery”. Chairman Yasuhito Yazaki believed that

they have always held to be a good neighbor as a guiding light as they expanded

into Global Market.

1
 Background of the study

The company is currently experiencing 9.03% production loss in the production

of Mitsubishi 690W Instrument Panel Wiring Looms, amounting to Php 2,990,000

for the months of July to December 2017. The production of Mitsubishi 690W

Instrument Panel Wiring Looms has eight processes: cutting of wires, jointing,

twisting, appearance inspection, lay outing in the jigboard, putting of accessories,

inspection and lastly, packaging.

The problems encountered in the company are as follows: unbalanced

workload, poor material allocation of corrugated tube, tardiness of workers, and

clamping, cutting and twisting machine downtime. Unbalanced workload happens

because lay outing takes eight minutes to finish the task compared to two and four

minutes of other processes. The workers in lay outing has more work compared to

others.

The company also experiences shortage in corrugated tube due to poor

material allocation, other products using the same material are borrowed from

Mitsubishi 690W IPNL. Other cause of shortage of corrugated tube happens when

supplier delivers substandard materials. Third problem is the tardiness of the

workers which affects their productivity. Lastly, the company experiences clamping,

cutting and twisting machine downtime due to the lack of regular machine preventive

maintenance.

2
PROBLEM STATEMENT

EDS Manufacturing Inc. is experiencing 9.03% production loss in the

production of Mitsubishi 690W Instrument Panel Wiring Looms, amounting to Php

2,990,000 for the months of July to December 2017

OBJECTIVE OF THE STUDY

General Objective

To eliminate the 9.03 % production loss in EDS Manufacturing Inc. in the

production of Mitsubishi 690W Instrument Panel Wiring Looms amounting to Php

2,990,000 from July to December 2017.

Specific Objectives

• To provide a smooth and continuous flow of production

• To make sure workers are punctual and are following the standard procedure.

• To assure that the machines used in production are in good condition.

SCOPE AND LIMITATION

The study was conducted at EDS Manufacturing located at Anabu II Imus,

Cavite. The study focuses on eliminating the problems in the company, specifically

in the production of Mitsubishi 690W Instrument Panel Wiring Looms, to achieve

their target output for the months of July to December 2017 in terms of its planning

aspect.

3
Significance of the Study

To the students

This study will help the company discover the root cause of problems that are

seen in several areas of the firm. Knowing the root cause can help the people in

charge of the areas that are experiencing the problem to become more effective and

efficient in producing the material.

To the readers

This study will help give information on how important Operations Planning and

Control in a manufacturing company are. It will also provide readers insights about

the causes of production losses.

To the company

This study will help the company identify their problems and solve them by giving

alternative courses of actions in each problem the company is facing. It will also help

them to eliminate production loss and increase efficiency.

4
DESIGN AND METHODOLOGY

Interview

Interviews were conducted to gather different information regarding the company,

the product, the processes, and the defects. The data were gathered through a

series of interview with:

• Mr. Reynaldo Crizaldo, PPC Manager

1. What are the products that are being manufactured in your company?

2. What is the target output per month?

3. What are the processes needed to manufacture your products?

4. What are the materials used to produce the products?

5. What are the common problems that are encountered in the production?

Research

By analyzing the company’s current situations, the main problem can be

distinguished and the causes leading to that problem will be identified. Alternative

courses of action are formulated that may be able to give solutions to the main

problem. The completion of this study is achieved through the use of articles, books,

documents, charts, thesis researches and related files and the use of internet.

The basic IE tools used were:

• Flow Process Chart

• Fish Bone Diagram

• Stopwatch

• Time Study Form

5
Definition of Terms:

Bonding- is the method of making interconnections (ATJ) between an integrated

circuit or other semiconductor device.

Cable Harness- is an assembly of electrical cables or wires which transmit signals

or electrical power.

Clamping- fastening and strengthening objects together

Conveyor- a mechanical apparatus for moving bulk materials from place to place.

Inspection - an organized examination or formal evaluation exercise.

Jig - is a type of custom-made tool used to control the location and/or motion of

another tool; a jig's primary purpose is to provide repeatability, accuracy, and

interchange ability in the manufacturing of products.

Planning - s the process of thinking about and organizing the activities required to

achieve a desired goal.

Production System- is an industrial system that supports manufacturing and its

logistics.

Twisting - combining two or more wires by winding together.

6
 Chapter II
REVIEW OF RELATED LITERATURE

Elimination of Low Insulation Defect on Wiring Harness in Nissan 1 – Altima

using six sigma methodology at Yazaki-Torres Manufacturing Inc.

According to San Jose (2016), In recent years, companies have begun using

Six Sigma Methodology to reduce errors, excessive cycle times, inefficient

processes, and cost overruns related to financial reporting systems. To achieve Six

Sigma quality in terms of internal defects, a process must produce no more than 3.4

defects per million opportunities (DPMO). Six Sigma is a highly disciplined process

that helps us focus on developing and delivering near-perfect products and services.

It is a statistical term that measures how far a given process deviates from

perfection. The central idea behind Six Sigma is that if you can measure how many

“defects” you have in a process, you can systematically figure out how o eliminate

them and get as close to “zero defects” as possible. The Six-Sigma methodology is

designed to provide a systematic way of applying statistical tools in the context of

process improvements in any organization. This is done by the application of the

DMAIC methodology. The five stages of the present Six Sigma consist of Define,

Measure, Analyze, Improve and Control. DMAIC methodology is mainly used to

identify, analyze and formulate solutions to problems in the processes. It is usually

applicable to a problem which has a current, steady-state process, product or

services. It provides solutions to different problems such as nonconformity, defects

or flaws, high cost or time, and deterioration.

Defects are imperfections that can decrease a product’s value or worth.

Eliminating defects can also provide satisfaction to the customers as their

7
expectations and requirements can be easily met by producing the best quality

products. Yazaki-Torres Manufacturing Incorporated is the largest wiring harness

manufacturer in the Philippines, and likewise also the Top Exporter of Automotive

Parts. With their continuing success in the industry and in expectation of more

domestic demand for automobiles, Yazaki- Torres is looking forward to continuing

and enhancing their operations in the Philippines. There was an attempt to

implement Six Sigma but due to its difficulty, YTMI Inc. was not able to finish it. As a

counter measure, its tools alone are being used. This was supposedly used to

eliminate waste in all of the work processes. As a result, this gives an improvement

in quality, enhances customer satisfaction, a reduction in operation cost, increase in

output and an increase in productivity. But there are still existing unavoidable factors

that need improvement. After identifying the main causes of the low insulation

defect, the team analyzed the method in the crimping process. Through

brainstorming, it was found out that having low insulation defect is mainly caused by

man and machine. The root cause of having such defect is due to inconsistent

maintenance and overfeeding. The DMAIC principle serves as the team’s roadmap

for process improvement. The Define phase was done through the stratification

process, in which they come up with the main scope, focus, and goal of the study.

Data were analyzed carefully and verified accurately in the Measure phase.

Countermeasures were further examined and tested to ensure effectiveness.

8
Lean Six Sigma Implementation in Cable Harness Manufacturing

According to Paramesh (2013), one of the fast and growing industries in

today’s world is cable harness manufacturing. Cable harness acts as center to many

devices and vehicles. As application becomes complicated, innovations in making

cable harness design and manufacturing techniques became more critical. By

implementing six sigma, it results to good quality products of cable harness.

High volume production of cable harness with consistent good quality is hard

to achieve but with the use of six sigma methodologies, it would be possible. This

includes collection of defects data, analysis of the defects data using FMEA

methodology, determining the causes and taking corrective actions to eliminate

defects. Using process flow chart and manufacturing lead time are also part of the

methodology.

Current Trends in Automotive Wire Harness Design

Pradham (2011), said that Wire Harness is the interconnecting wiring in the

vehicle for the transmitting electrical power and signals in the electrical system. Over

the years the number of components to be connected and hence the number of

circuits has increased many folds. This has made the wire-harness design as the

most complicated task in the vehicle design and wire harness (electrical system)

integration with others aggregates a difficult job. Many CAD tools and design

software have evolved from computer companies. But the major issues faced by

vehicle OEM’s and the wire harness manufacturers were not resolved. The

requirements of vehicle manufacturers are not clear to the other agencies and this

results in wire-harness development as a major bottleneck in any vehicle

9
development program. The major challenges faced by wire harness manufacturer in

today’s automotive industry are the following:

1. There are variety of connectors and terminals, meaning connectors can

rarely be duplicated due to IPR issues.

2. No standardization, it happens when connectors used for a same function

vary across models and vehicle platforms.

3. No regulation, deficiencies in design can cause serious hazards on the vehicle

and protection has to be in-built for the wire harness.

4. Insufficient Protection of wires, the vehicle environment may require certain

branches of wire harness with special insulation or protection.

5. Manual checking of W/H: The process of wire harness assembly uses a

assembly board and at the end of the line the connectors are manually

plugged into matching components to check the circuit continuity and correct

insertion of wires. If any fault is reported then tracking the problem and

rectifying it is done manually.

According to Pradham (2011), for the future trends in wire harness design,

there is a need to increase the efficiency of it in terms of cost and time and the use

of CAD tools dedicated to the process of wire harness design. The major highlights

of the software are standardization and increased productivity through design,

modular design, sneak analysis , voltage drop testing , fuse blowing, test, simulation

of circuit, design, rules checks, 3D modeling in CAD and flattened wire harness

design for manufacturing.

10
Development of Wire Harness Modules

According to Osada (1998), in the past few years the wiring and power

distribution system for the transmission of electric power and signals for automobiles

has improved. Production process of wire harness consists of wire cutting, terminal

crimping, manual crimping, manual cutting, wire intermediate jointing, temporary

assembly, electrical tests and visual inspection. When it comes to the analysis of the

present situation of wire harness for its quality information, assembly lines and

productivity at manufacturing floors are important to fully analyze the present

situation.

Osada (1998), also stated that the target of the program is to develop a

module with low costs and also improved the recycling potential in terms of

productivity and quality. To develop the module, the following are needed: unification

of wires, unification of connectors, elimination of joints, sub-assembly, assembly

connector and variety reduction. The aim is to improve ease of assembly to the

vehicle, raise productivity, and increase recycling potential in line with anticipated

future trends.

Electrical Build Issues in Automotive Product Development - An Analysis

According to Chacko (2007), the big six in the automobile industry are GM,

Toyota, Ford, Chrysler, Honda and Nissan. There have been issues with plant

closing, job cuts and losing market share for major US car makers. For them to

survive in the competitive industry, they should surprise the customers by providing

new features and more stylish designs with a price that customers can afford.

11
 The product development process essentially consists of six phases:

planning, concept development, system-level design, detail design, testing and

refinement and lastly, production and ramp-up. The Objective of this research is to

understand electrical distribution system issues in automotive product development.

Value Stream Mapping is used as an analytical tool to determine the efficiencies that

can be made in the product development process. The primary research objectives

are to understand the distribution system product development process and related

prototype builds issues globally, understand the rework involved during prototype

builds through value stream mapping and formulate recommended changes to the

organization's electrical distribution system issues product development process.

The issues are classified based into design, manufacturing or quality. A survey is

used to determine what the leading electrical distribution system wiring community

including the suppliers thought of the different issues. Product development

opportunities are identified by many sources, including marketing, research,

customers, current product development teams, and benchmarking of competitors

.In the planning phase the OEM looks at these opportunities from marketing, design

and manufacturing standpoints. Concepts that are developed with the consideration

of the customer needs are tested during the concept development phase. The

production feasibility is also assessed at this time. During the system level design

phase, the product architecture is generated and the product is decomposed into

subsystems and components. The key suppliers are also identified during this time.

In the detail design phase the complete specification of all the parts in the product as

well as all the parts are identified.

12
 The testing and refinement phase entails the construction of multiple

preproduction versions of the product. These preproduction versions undergo

reliability testing, life testing, and performance testing during this phase. In the

production ramp-up phase the operation of the entire production system begins. The

testing and refinement phase of the generic product development process is time

consuming. An automobile is required to meet a host of complex emergent

properties, including safety, performance, weight, cost, fuel economy,

manufacturability and reliability.

According to Wilson (2002), many car companies reveal a common list of

problems including: poor integration of the different groups involved in design, poor

integration of the design tools used, reliance on a small number of key experts and

tribal knowledge with an absence of a well defined formal design process, absence

of tools or procedures for top-down applications of system, absence of a formal

process for capture and application of knowledge and lessons learned, incomplete

procedures and processes for verifying the design, lack of procedures and

processes to enforce design and component commonality between successive

designs and across vehicle platforms.

Production Management Systems

Daneshjo (2013), said that Production management deals with decision-

making related to production processes so that the resulting goods or service is

produced according to specification, in the amount and by the schedule demanded

and at minimum cost. Production management also deals with decision making

regarding the quality, quantity and cost of production. It applies management

13
principles to production. Production management is a part of business management.

It is also called "Production Function." Production management is slowly being

replaced by operations management. The main objective of production management

is to produce goods and services of the right quality, right quantity, at the right time

and at minimum cost. It also tries to improve the efficiency.

An efficient organization can face competition effectively. Production

management ensures full or optimum utilization of available production capacity.

Production management, also called operations management, planning and control

of industrial processes to ensure that they move smoothly at the required level.

Techniques of production management are employed in service as well as in

manufacturing industries. It is a responsibility similar in level and scope to other

specialties such as marketing or human resource and financial management. In

manufacturing operations, production management includes responsibility for

product and process design, planning and control issues involving capacity and

quality, and organization and supervision of the workforce.

The importance of production management in a business is that it will lead the

process which will bring in profit into the business. There are several responsibilities

and tasks that a production management team is responsible for and it is a very

stressful job because a product manager needs to make sure they are constantly

making profit from the manufactured services that they are selling. It is also stated

that it is very important for the management to form good relations with the various

teams within the organization as well.

14
Optimization of Assembly Processes of an Automobile Wire Harness

According to Kobayashi (2013), to support design tasks of assembly processes

of a wire harness, automotive parts suppliers developed CAD/CAM-based systems.

However, even if these methods are used, engineers still need to look for efficient

assembly processes by trial and error. In order to design efficient assembly

processes without expertise of veteran engineers and trial and error, this paper

proposes a new method to optimize assembly processes of a wire harness. The

process in which a worker tapes routed cables is most important and hardest among

the sequence of assembly processes and the difficulty of taping process depends

largely on jigs layout on a workbench and taping route. Therefore, in the proposed

method, jigs layout and taping route are modeled and optimized by using genetic

algorithm. Working time of taping process derived from jigs layout and taping route is

used as fitness function of GA. In this research, to demonstrate the proposed

method, design of assembly processes of the automobile wire harness installed in a

certain actual compact car is carried out.

Wiring harnesses for Next Generation Automobiles

Oba (2013), said that The weight of a wiring harness is increasing year by

year because of newly added functions. There are growing customer demands for

environmentally friendly products such as high-voltage wiring harness systems for

hybrid electric vehicles and electric vehicles and also weight-saving wiring

harnesses systems designed to improve fuel efficiency.

15
 In order to satisfy these customer demands, developing a high-voltage wiring

harness system and weight-saving electric wire and connection technology for a

weight-saving wiring harness system were essential. Various new technologies for

the environment, safety and comfort are applied to recent cars. In terms of wiring

harness development, environmentally friendly products, such as hi-voltage wiring

harness systems for hybrid electric vehicles and electric vehicles and weight-saving

wiring harnesses systems designed to improve fuel efficiency are in strong

demands. This report describes the developments of high-voltage wiring harness

systems for hybrid electric vehicles and electric vehicles and lightweight wires main

components for the lightweight wiring harness systems.

Copper conductor has been the mainstream material for automotive wiring

harness. In the future, lightweight wires and harnesses of aluminum alloy or CA

conductor will be the mainstream material to respond to demands for reducing

weight for better fuel efficiency and to a run-up in copper prices. A total weight of

copper conduct wire harness of a car is about 30 kg. About a 30 % weight reduction

can be expected by using lightweight electric wires.

16
 Chapter III
FINDINGS & ANALYSIS
Table 3.1 Summary of Production Loss of Mitsubishi 690W IPNL Wiring

Looms for the months of July to December 2017

Standard Actual
Output Production
Months Output Output
Difference Loss (%)
(units) (units)
July 4800 4370 430 8.96
August 4800 4340 460 9.58
September 4800 4380 420 8.75
October 4800 4350 450 9.38
November 4800 4360 440 9.17
December 4800 4400 400 8.33
TOTAL 26200
AVERAGE 2600 9.03%

Source: Mr. Reynaldo Crizaldo

Production Planning and Control Department Manager

Table 3.1 shows the summary of production loss from the months of

July 2017 to December 2017. The table shows the total output difference and

the average output produced in six months. The average production loss for

the six months is 9.03%.

17
COMPUTATION:

Total Output Difference (July) = Target output – Actual output

=4,800–4370= 430 pieces
Computation for Achievability:

𝑛𝑜.𝑜𝑓𝑙𝑎𝑏𝑜𝑟ℎ𝑜𝑢𝑟𝑠 (𝑚𝑖𝑛𝑠.)
Achievable = = = 480 minutes/ 25 minutes = 20 batch
𝑠𝑡𝑑.𝑡𝑖𝑚𝑒 (𝑚𝑖𝑛𝑠.)

1 batch 10 units *
10 units * 20 batch = 200 units

The data above is the sample computation for the output difference, the
total output difference for the month of July is 430 pieces.

18
Table 3.2 Summary of Profit Loss of Mitsubishi 690W Instrument Panel

Wiring Looms for the months of July to December 2017

Total Output Profit

Month Cost per unit
Difference (units) Loss(PHP)

July 430 1150 494 500

August 460 1150 529 000
September 420 1150 483 000
October 450 1150 517 500
November 440 1150 506 000
December 400 1150 460 000
TOTAL 2600 2,990,000
AVERAGE

Table above shows the summary of output difference from the months of

July to December 2017. Each product of Mitsubishi 690W Instrument Panel

Wiring Looms costs php1150. The total profit loss for six months is Php

2,990,000.

Computation:

Profit Loss PHP = Output Difference * 1,150

= 2600* 1,150
= PHP 2,990,000

The computation above shows the total profit loss of Mitsubishi 690W
Instrument Panel Wiring Looms. Total output difference from the month of
July is 2600 units.

19
 Figure 3.1 Flow Chart Process

Start

Cutting of wires

Jointing

Twisting

Inspection

Not
Good
Good
Lay outing Repair

Good
Putting
Accessories

Not Good

Inspection Repair

Good
od
Packing

End

Figure 3.1 shows the Flow Chart Process of the production of Mitsubishi
690W Instrument Panel Wiring Looms.

20
 Figure 3.2 Fishbone Diagram

METHOD
MAN (26.87%) EDS Manufacturing Inc.
Unbalanced Workload (29.08%) is experiencing 9.03%
Tardiness of Worker
(23.96%)
Poor Material Allocation of production loss in the
corrugated tube (28.46%)
production of Mitsubishi 690W

Instrument Panel Wiring

MACHINE
Looms, amounting to Php
Clamping, Cutting, Twisting
machine downtime 2,990,000 for the months of
(18.35%)
July to December 2017.

Figure above illustrates the percentage distribution of the problems encountered in EDS manufacturing Inc.
The problem with the highest percentage is unbalanced workload having 29.08%. The least percentage of the
problem in the fishbone is due to clamping, cutting and twisting machine having 18.35%.

21
22
Data for Unbalanced Workload
Table 3.3 Existing Distribution of Workloads
Operation Name of Operator Standard Time
(in minutes)
Ronnie Salcedo 2
Cutting
Jenny Perlado 2
Jointing
Marilou Sandoval 2
Twisting
Jacob Rongavilla 2
Inspection
Anthony Cerveza 8
Lay outing
Frederick Estrada 3
Putting accessory
Patricia Simon 2
Inspection
Dorothy Penales 4
Packing
25 minutes

Table 3.3 This shows that there are operators doing more work. The

table also shows the time needed to accomplish the operation or task of the

operators. In lay outing, Anthony Cerveza takes 8 minutes to finish his task

compared to other worker with less than two and four minutes each. The table

shows that work load were not distributed evenly.

23
Table 3.4 Task Time of the Operator in Lay outing

Standard
Name of Time
Operation
Operator
(in minutes)

Insert the terminal

into its designated 0.30
place until you
hear click sound

Pull the wire to

make sure the 0.30
Anthony Cerveza
terminal is
secured

Tape the wiring 4

looms

Apply corrugated 3
tube for protection
TOTAL (in minutes) 8

Table 3.4 shows the task and the allotted time for the operator to

finish his task. In this operation, Anthony Cerveza has four elements to

perform and his total time for the operation is 8 minutes. It is observed that

in lay outing, Cerveza has more working time compared to others with less

than two and four minutes each.

24
Table 3.5 Productivity Report of the Workers in Lay Outing

Morning Shift Afternoon Shift

Actual Actual
Month Target Target
Operator output Productivity output Productivity
output output
produced produced
Anthony 200
193 200 96.5 % 180 90%
Cerveza
Carlos 200 200
July 190 95 % 179 89.5 %
Ramirez
Aldrin 200 200
Week 1 193 96.5% 183 91.5%
Velez
Miguel 200 97 % 200
194 174 87 %
Cervantes
Anthony 200 97.5% 200
195 190 93.5%
Cerveza
Carlos 200 96.5% 200
193 183 91.5%
Ramirez
Week 2
Aldrin 200 97% 200
194 182 91%
Velez
Miguel 200 97.5% 200
195 186 95%
Cervantes
Anthony 200 96% 200
192 191 94 %
Cerveza
Carlos 200 97.5% 200
195 190 93.5%
Ramirez
Week 3
Aldrin 200 96.5% 200
193 182 91%
Velez
Miguel 200 97% 200
194 187 93.5%
Cervantes
Anthony 200 96% 200
192 186 90.5 %
Cerveza
Carlos 200 97.5% 200
195 188 94 %
Ramirez
Week 4
Aldrin 200 200
193 96.5% 183 91.5%
Velez
Miguel 200 200
194 97 % 184 92%
Cervantes
Anthony 200 97.5% 200
195 180 90 %
Cerveza
Carlos 200 96% 200
August 192 175 87.5%
Ramirez
Aldrin 200 97% 200
Week 1 194 179 89.5 %
Velez
Miguel 200 95% 200
190 181 90.5 %
Cervantes

25
 Anthony 200 95.5% 200
191 181 90.5 %
Cerveza
Carlos 200 97% 200
194 184 92 %
Week 2 Ramirez
Aldrin 200 96% 200
192 180 90 %
Velez
Miguel 200 95% 200
190 183 91.5 %
Cervantes
Anthony 200 97.5% 200
194 184 92 %
Cerveza
Carlos 200 96% 200
192 174 87 %
Ramirez
Week 3
Aldrin 200 97.5% 200
195 172 86 %
Velez
Miguel 200 96.5% 200
193 184 92 %
Cervantes
Anthony 200 90% 200
190 179 89.5 %
Cerveza
Carlos 200 200
193 96.5 % 174 87 %
Week 4 Ramirez
Aldrin 200 200
191 95.5 % 172 86 %
Velez
Miguel 200 200
192 96 % 174 87 %
Cervantes
Anthony 200 200
189 94.5 % 190 93.5%
Cerveza
Carlos 200 200
Septe 195 97.5 % 183 91.5%
Ramirez
mber
Aldrin 200 200
Week 1 196 98 % 182 91%
Velez
Miguel 200 200
194 97 % 179 89.5 %
Cervantes
Anthony 200 200
190 95 % 181 90.5 %
Cerveza
Carlos 200 200
188 94 % 181 90.5 %
Ramirez
Week 2
Aldrin 200 200
193 96.5 % 179 89.5 %
Velez
Miguel 200 200
194 97 % 174 87 %
Cervantes
Anthony 200 200
196 98 % 172 86 %
Cerveza
Carlos 200 200
189 94.5 % 174 87 %
Ramirez
Week 3
Aldrin 200 200
190 95 % 190 93.5%
Velez
Miguel 200 200
188 94 % 172 86 %
Cervantes
Anthony 200 200
Week 4 196 98 % 181 90.5 %
Cervaeza

26
 Carlos 200 200
188 94 % 174 87 %
Ramirez
Aldrin 200 200
195 97.5 % 181 90.5 %
Velez
Miguel 200 200
188 94 % 179 89.5 %
Cervantes
Anthony 200 200
189 94.5 % 181 90.5 %
Cerveza
Carlos 200 200
Octobe 190 95 % 179 89.5 %
Ramirez
r
Aldrin 200 200
week 1 188 94 % 181 90.5 %
Velez
Miguel 200
193 200 96.5 % 174 87 %
Cervantes
Anthony 200 200
190 95 % 172 86 %
Cerveza
Carlos 200 200
195 97.5 % 174 87 %
Ramirez
Week 2
Aldrin 200 96.5% 200
193 183 91.5%
Velez
Miguel 200 97% 200
194 182 91%
Cervantes
Anthony 200 97.5% 200
195 186 95%
Cerveza
Carlos 200 95% 200
190 191 94 %
Ramirez
Week 4
Aldrin 200 97.5% 200
194 183 91.5%
Velez
Miguel 200 96% 200
192 190 93.5%
Cervantes
Anthony 200 95% 200
190 183 91.5%
Cerveza
Carlos 200 200
Novem 190 95 % 174 87 %
Ramirez
ber
Aldrin 200 200
week 1 188 94 % 181 90.5 %
Velez
Miguel 200 200
193 96.5 % 179 89.5 %
Cervantes
Anthony 200 96% 200
192 181 90.5 %
Cerveza
Carlos 200 97.5% 200
195 172 86 %
Ramirez
Week 2
Aldrin 200 200
193 96.5% 174 87 %
Velez
Miguel 200 95% 200
190 190 93.5%
Cervantes
Anthony 200 200
190 95 % 172 86 %
Cerveza
Week 3
Carlos 200 200
193 96.5 % 182 91%
Ramirez

27
 Aldrin 200 96% 200
192 186 95%
Velez
Miguel 200 96.5% 200
193 174 87 %
Cervantes
Anthony 200 200
195 97.5 % 179 89.5 %
Cerveza
Carlos 200 96.5% 200
193 181 90.5 %
Ramirez
Week 4
Aldrin 200 97% 200
194 174 87 %
Velez
Miguel 200 200
190 95 % 172 86 %
Cervantes

Table 3.5 shows the productivity report of each operator in the production of
Mitsubishi 690W IPNL Wiring Looms. It represents the difference between the morning
and afternoon shift and compare the productivity of each shift. This supports the claim of
this study that the operators due to overloading of work are unmotivated to work in the
production.

28
Table 3.7 Summary for affected Units in Unbalanced Workload

Months Total Added Time ( Units Affected

mins)
July 1410 141
August 1080 108
September 1290 129
October 1210 121
November 1010 101
December 920 92
Total 6,820 690

Table 3.7 shows the total units affected in the production of Mitsubishi
690W IPNL Wiring Looms for unbalanced workload. The table above shows that
the month with largest number of units affected due to unbalanced workload is
July having 141 units.

29
 DATA FOR POOR MATERIAL ALLOCATION

Table 3.8 Summary of Raw Materials in the Production of Mitsubishi 690W

Instrument Panel Wiring Looms

Month No. Of Good Not Good Units Affected

Raw materials materials materials
delivered
(in meters)
July 13,500 13,240 260 meters 145 units
meters meters
August 13,500 13,260 240 meters 120 units
meters meters
September 13,500 13, 280 220 meters 105 units
meters meters
October 13,500 13,250 250 meters 135 units
meters meters
November 13,500 13,285 215 meters 110 units
meters meters
December 13,500 13,260 240 meters 125 units
meters meters
Total 81,000 79,555 1,025 740 units
meters meters meters

Table 3.8 shows that the raw materials ordered were delivered in the right

quantity but because of the military sampling, raw materials with rejects are not

anticipated which results to productivity loss. The table above shows that the

month with the largest units affected due to poor material allocation is July having

145 units.

30
Table 3.9 Existing Order Details

Month Order Date Date Production No of raw No. of

Delivered schedule materials Raw
to ordered Materials
Company Needed
June 3, 2017 July 3, July 4, 2017 13,500 12,480
July 2017 meters meters

July 4, 2017 August 1, August 2, 13,500 12,480

August 2017 2017 meters meters
August 2, September September 3, 13,500 12,480
September 2017 2, 2017 2017 meters meters

September October 1, October 3, 13,500 12,480

October 4, 2017 2017 2017 meters meters

October 2, November November 6, 13,500 12,480

November 2017 5, 2017 2017 meters meters

November 6, December December 2, 13,500 12,480

December 2017 1, 2017 2017 meters meters

Table above shows the order details for the corrugated tube from order

date to delivery date. Production schedule and the amount of raw materials

ordered and needed were also stated.

31
Table 3.10 Summary of Products using Corrugated Tube

Products Raw Materials Raw Materials Excess Raw

Produced Used Needed Materials Used

Mitsubishi
670W Flooring 81,500 meters 80,500 meters 1,000meters
Harness

Mitsubishi
690W 76,900 meters 79,000 meters -2,100 meters
Instrument
Panel Wiring
Looms

Mitsubishi
650W Body 82,500 meters 82,000 meters 500 meters
Cable Harness

Mitsubishi
630W 77,200 meters 76,000 meters 1,200 meters
Chasis Wiring
Mitsubishi
610W
Speaker Wiring 77,000 meters 76,000 meters 1,000 meters

Table 3.10 shows the summary of products using corrugated tube as their

material component in producing a specific product for the months of July to

December 2017. The table shows that Mitsubishi 690W Instrument Panel Wiring

looms experiences shortage in their corrugated tube due to borrowing of other

products using the same material.

32
Table 3.11 Data for tardiness of workers

FREQUENCY
OPERATOR
July August September October November December Total
Anthony
1 0 2 1 1 3 10
Cerveza
Frederick
2 1 1 1 2 2 9
Estrada
Aldrin Velez 3 1 2 2 1 1 10
Carlos
2 1 1 2 1 1 8
Ramirez
Yora Belen 3 2 2 1 1 2 11
Miguel
1 1 2 0 2 1 6
Cervantes
Aldrin Velez 2 0 2 2 1 1 8
TOTAL 14 6 12 10 9 11

Table 3.11 shows the frequency of the operators’ tardiness record from

the months of July to December 2017. This shows that due to operator’s

tardiness there are outputs that are failed to be produced and has affected the

production and achievement of the quota set by the company’s clients.

33
Table 3.12 Summary of Tardiness

Total time affected in

Operator Units affected
minutes (6 months)
Anthony Cerveza 450 mins 96
Frederick Estrada 380 mins 93
Aldrin Velez 350 mins 87
Carlos Ramirez 335 mins 85
Yora Belen 370 mins 92
Miguel Cervantes 324 mins 80
Aldrin Velez 360 mins 90
Total 2569 mins 623

Table 3.12 shows the total time of the tardiness records of the workers and

the units affected by the occurrences of this tardiness. The time of the workers

above are the actual time that they have been late for their work from July to

December 2017 which resulted to production delay. Due to tardiness, Anthony

Cerveza has the most number of units affected having 96 units.

34
Table 3.13 Summary of Machine Downtime

MACHINE DOWNTIME
FREQUE UNITS
MONTH SPECIFIC TOTAL Machine type
NCY AFFECTED
(min) (min)
Twisting
10
Machine
July 3 45 Clamping 88
15
Machine
15 Cutting Machine
Twisting
14
Machine
August 4 16 65 95
Stripping
10
Machine
20
15 Clamping
September 3 10 40 Machine 60
15 Cutting Machine
Twisting
23
Machine
Twisting
October 3 19 60 96
Machine
Clamping
18
Machine
Twisting
22
Machine
Clamping
November 3 20 55 77
Machine
Stripping
13
Machine
Twisting
10
Machine
15 Cutting Machine
December 4 55 Stripping 61
20
Machine
Twisting
10
Machine
TOTAL 14 325 477

Table 3.13 Twisting, Clamping, Cutting and Stripping machine

experiences machine downtime. The table above shows the summary of the
machine breakdown in the production of Mitsubishi 690W Instrument Panel
Wiring Looms from the months of July to December 2017.

35
Table 3.13 Production Schedule

JULY 2017
Weeks Days 8:00- 9:00- 10:00 10:10- 11:00- 12:00- 1:00- 2:00- 3:00- 3:00 4:00-
9:00 10:00 - 11:00 12:00 1:00 2:00 3:00 3:10 - 5:00
10:10 4:00
Week 3
1 4
5
6
7
8
9
Week 10
2 11
12
13
14
15
16
Week 17
3 18
19
20
21
22
23
Week 24
4 25
26
27
28
29
30
31

Production Delivery Date

Machine Downtime Break time

Order Date No Production

Figure above shows the production schedule for the production of Mitsubishi 690W
instrument Panel Wiring Looms for the month of July 2017. The schedule shows the stops in
production due to insufficient raw materials, and machine breakdowns. Legends are also
indicated above.

36
 August 2017
Weeks Days 8:00- 9:00- 10:10 10:10 11:00- 12:00- 1:00- 2:00- 3:00- 3:00- 4:00-
9:00 10:00 - - 12:00 1:00 2:00 3:00 4:00 3:10 5:00
11:00 11:00

Week 1
1 2
3
4
5
6
7
Week 8
2 9
10
11
12
13
14
Week 14
3 15
16
17
18
19
20
Week 21
4 22
23
24
25
26
27
Week 28
5 29
30
31
Production Delivery Date

Machine Downtime Break time

Order Date No Production

Figure above shows the production schedule for the production of Mitsubishi 690W
instrument Panel Wiring Looms for the month of August 2017. The schedule shows the stops
in production due to insufficient raw materials, and machine breakdowns. Legends are also
indicated above.

37
 September 2017
Weeks Days 8:00- 9:00- 10:00 10:10 11:00- 12:00- 1:00- 2:00- 3:00 3:00- 4:00-
9:00 10:00 - - 12:00 1:00 2:00 3:00 - 4:00 5:00
10:10 11:00 3:10
Week 2
1 3
4
5
6
7
8
9
Week 10
2 11
12
13
14
15
16
Week 17
3 18
19
20
21
22
23
Week 24
4 25
26
27
28
29
30

Production Delivery Date

Machine Downtime Break time

Order Date No Production

Figure above shows the production schedule for the production of Mitsubishi 690W
instrument Panel Wiring Looms for the month of September 2017. The schedule shows the stops
in production due to insufficient raw materials, and machine breakdowns. Legends are also
indicated above.

38
 October 2017
Weeks Days 8:00- 9:00- 10:10- 10:10 11:00- 12:00- 1:00- 2:00- 3:00- 3:00- 4:00-
9:00 10:00 11:00 - 12:00 1:00 2:00 3:00 4:00 3:10 5:00
11:00

Week 1
1 2
3
4
5
6
Week 7
2 8
9
10
11
12
13
Week 14
3 15
16
17
18
19
20
Week 21
4 22
23
24
25
26
27
Week 28
5 29
30

31
Production Delivery Date

Machine Downtime Break time

Order Date No Production

Figure above shows the production schedule for the production of Mitsubishi 690W
instrument Panel Wiring Looms for the month of October 2017. The schedule shows the stops in
production due to insufficient raw materials, and machine breakdowns. Legends are also
indicated above.

39
 November 2017
Weeks Days 8:00- 9:00- 10:00 10:10- 11:00- 12:00- 1:00- 2:00- 3:00- 3:00- 4:00-
9:00 10:00 - 11:00 12:00 1:00 2:00 3:00 3:10 4:00 5:00
10:10
Week 3
1 4
5
6
7
8
9
Week 10
2 11
12
13
14
15
16
Week 17
3 18
19
20
21
22
23
Week 24
4 25
26
27
28
29
30
31
Production Delivery Date

Machine Downtime Break time

Order Date No Production

Figure above shows the production schedule for the production of Mitsubishi 690W
instrument Panel Wiring Looms for the month of November 2017. The schedule shows the stops
in production due to insufficient raw materials, and machine breakdowns. Legends are also
indicated above.

40
 December 2017
Weeks Days 8:00- 9:00- 10:10 10:10 11:00- 12:00- 1:00- 2:00- 3:00 3:10- 4:00-
9:00 10:00 - - 12:00 1:00 2:00 3:00 - 4:00 5:00
11:00 11:00 3:10

Week 1
1 2
3
4
5
6
Week 7
2 8
9
10
11
12
13
Week 14
3 15
16
17
18
19
20
Week 21
4 22
23
24
25
26
27
Week 28
5 29
30
31
Production Delivery Date

Machine Downtime Break time

Order Date No Production

Figure above shows the production schedule for the production of Mitsubishi 690W
instrument Panel Wiring Looms for the month of December 2017. The schedule shows the stops
in production due to insufficient raw materials, and machine breakdowns. Legends are also
indicated above.

41
FISHBONE ANALYSIS

UNITS
CATEGORY PROBLEM PERCENTAGE
AFFECTED
Poor Material
Allocation 740 units 28.46

METHOD
Unbalanced
Workload 756 units 29.08

Tardiness of
MAN Worker 623 units 23.96

Machine
MACHINE Downtime 477 units 18.35

TOTAL 2,600 units 100%

Table above shows the breakdown of the contribution of the problems in

the production loss experienced in the company for the months of July to
December 2017 in producing Mitsubishi 690W Instrument Panel Wiring Looms.
The problems were poor material allocation, unbalanced workload, tardiness of
worker and machine downtime.

42
 PROBLEM TREE

CAUSES

Unbalanced Poor Material Tardiness of Clamping,

Workload Allocation of the workers Cutting and
corrugated tube Twisting
Machine
Downtime

EDS Manufacturing Inc. is experiencing 9.03% production loss in the production of

Mitsubishi 690W Instrument Panel Wiring Looms, amounting to Php 2,990,000 for the

months of July to December 2017.

Opportunity Loss Profit Loss Productivity Customer

Loss Dissatisfaction

EFFECTS

43
CAUSES

• Unbalanced Workload
The production’s manpower capacity was not fully utilized. There are
workers that do more tasks than other workers.

• Poor Material Allocation of Corrugated Tube

As seen in table 3.8, it shows that the raw materials ordered were

delivered in the right quantity but because of the military sampling, raw

materials with rejects are not anticipated which results to productivity loss.

There are number of raw materials delivered that have rejects, which results

to productivity loss, because the ordered raw materials does not include

anticipated rejects.

• Tardiness of the workers

Due to the overloading task given to them, the operators exhibited lack of

interest in going to work by coming late. This affects the production of the

products because the schedule for the production will be delayed because of

their tardiness. (Seen in Tables 3.11 and 3.12).

• Clamping, Cutting and Twisting machine downtime

Due to the Machine Downtime, it result to low productivity and low target

output as shown in Table 3.13. There is a tendency that it will malfunction

because of its poor maintenance. If those machines malfunctions, the target

output will not be met.

44
EFFECTS

Opportunity Loss

If potential clients can see the problems that take place in the

company, they will be dissatisfied with the services that the company can

provide and will be discouraged to engage to any transactions with the

company.

Profit Loss

The potential profit of the company per month is reduced simply because

of the delays and because the target number of outputs are not met.

Productivity Loss

EDS (Electrical Distribution System) Manufacturing Inc. may

experience a low production due to lacking of man power. Tardiness of

workers affects the production of Mitsubishi 690W Instrument Panel Wiring

Looms.

Customer Dissatisfaction

Due to problems that the company is experiencing, it makes customers

dissatisfied with the services that the company is able to provide. Having

dissatisfied customers will damage the reputation that the company has

already established.

45
 OBJECTIVE TREE

MEANS
Reassignment Increase order Give Rewards and Implement
of workers of Corrugated Incentives to Weekly
Tubes for buffer workers Preventive
stock Maintenance

EDS Manufacturing Inc. is experiencing 9.03% production loss in the

production of Mitsubishi 690W Instrument Panel Wiring Looms, amounting to Php

2,990,000 for the months of July to December 2017.

Opportunity Profit Productivity Customer

Gain Gain Gain Satisfaction

ENDS

46
 OBJECTIVE TREE ANALYSIS

• Re-assignment of workers

Based on the other departments’ operation, it is in Inspection that has most

idle time. Checking if the product pass the requirements only took them a short

amount of time, which can be easily eliminated so that the existing operators

will be reassigned to new task. This action will utilize further the workers’

efficiency and thus the production goals of the company will be realized.

• Increase order of corrugated tube for buffer stock

Stoppage in production can be prevented if the raw materials are enough

for the production .The company would increase order on the raw materials, the

quantity will be based on the highest number of rejects occurred in the six

months of production.

• Give Rewards and Incentives to workers

By motivating the operators to work productively with the aid of rewards and

incentives, this will give them good reasons to help the company achieve its

mission and production goals.

• Conduct weekly Preventive Maintenance

Conducting a weekly preventive machine maintenance will lessen occurrence

of machine downtime. These delay due to machine downtime will be prevented

and there is a higher possibility that target output will be achieved.

47
 CHAPTER III
ALTERNATIVE COURSES OF ACTION
Alternative Course of Action 1: Re-assignment of workers

In the production area of the Mitsubishi 690W Instrument Panel Wiring

Looms, there are operators doing more work resulting to delay in the production. The

operators in the lay outing performs four elements which takes about eight minutes

compare to the two minutes of work from other operations. The productivity of the

operators is affected and it is shown in the productivity report. Efficiency of the

operators in the afternoon shift decreases compared to the productivity of workers in

morning shift seen in Table 3.5.

Based on the operation of Mitsubishi 690W Instrument Panel Wiring Looms,

operators doing inspection has most idle time. There are two types of inspection

and the operators in the inspection 1is appearance checking and inspection 2 is

circuit continuity checking. Worker in inspection 1 can just do the work in inspection

2. Workers in inspection 2 can be re-assigned to other operation. It is shown in

table 4.3 that even if two operators were re-assigned to lay outing they would still

meet the target output.

Advantages:
• Eliminate 756 units affected in the
company due to unbalanced workload.
• Increase profit by Php 864,400.
• Improve work procedure by 29.08 %.
Disadvantages:
• Additional costs for training and
seminars for reassigned workers Php
5,000.
• Familiarization of new work assignment

for the operators.

48
 ACTION PLAN

Table 4.1 Existing Work Assignment of Operators

Operator’s Name Process Standard Time

Ronnie Salcedo 2 minutes
Cutting
Joshua Torres 2 minutes

Jenny Perlado 2 minutes

Jointing
Theodore Orcullo 2 minutes IDLE

Marilou Sandoval 2 minutes

Twisting
AnjanetteDinglasan 2 minutes

Justine Quimpo 2 minutes

Inspection
Jacob Rongavilla 2 minutes

Anthony Cerveza 8 minutes

Lay outing IDLE
Carlos Ramirez 8 minutes

Aldrin Velez 8 minutes

Miguel Cervantes 8 minutes

Frederick Estrada Putting 3 minutes

Accessory
Yora Belen 3 minutes

Patricia Simon 2 minutes

Inspection II
Johanna 2 minutes
Andayan
Dorothy Penales 4 minutes
Packing IDLE
Gemma Andrada 4 minutes

Table 4.1 Based on the data for each department, it is apparent that the inspection area has
the idlest time for the operators. This gives an unbalanced workload for the operators since the
operators in inspection 1 and 2 only has minimal work compared to others.

49
 Table 4.2 Proposed Work Assignment with re-assigned operators

Time
Operator’s Name Process (minutes)
each operator
Ronnie Salcedo
Cutting 2 minutes

Joshua Torres 2 minutes

Jenny Perlado
Jointing 2 minutes
Theodore Orcullo 2 minutes
Marilou Sandoval
Twisting 2 minutes
AnjanetteDinglasan 2 minutes

Justine Quimpo
Inspection 2 minutes
2 minutes

Anthony Cerveza 5 minutes

Lay outing
Carlos Ramirez 5 minutes

Aldrin Velez 5 minutes

Jacob Rongavilla 5 minutes

Johanna Andayan 5 minutes

Miguel Cervantes 5 minutes

Frederick Estrada Putting Accessory

3 minutes
Yora Belen 3 minutes

Inspection
2 minutes
Patricia Simon
2 minutes

Dorothy Penales
Packing 4 minutes
4 minutes
Gemma Andrada
LEGEND

Re-assigned Operators
Table 4.2 shows the proposed work assignment for the operators in EDS Manufacturing Inc.

As stated in the problem, workers in the inspection were not utilized so instead they will be

transferred to the lay outing section where they can help in producing more output for the
50
company.
Table 4.3 Task time of Operators assigned in Inspection

Time needed to
Operator’s Name Task of the Operator
accomplished task
( each product )

Jacob Rongavilla 2 minutes

Appearance Checking

Justine Quimpo Appearance Checking 2 minutes

Circuit Continuity
Patricia Simon 2 minutes
Checking
Circuit Continuity
Johanna Andayan
Checking 2 minutes

Table above shows the task time of operators in the first and second
inspection. In the computation below, target number of products to be
inspected can be reach even if there would only be one operator in inspection
1 and 2.
Computation:

Appearance Testing:
480 minutes/ 2 minutes = 240 units

Circuit Continuity Checking

480 minutes / 2 minutes = 240 units

51
Alternative Curse of Action 2: Increase order of corrugated tube for

buffer stock.

Production of Mitsubishi 690W IPNL wiring looms is experiencing

shortage in corrugated tube due to borrowing of raw materials of other model

using the same raw material which is corrugated tube. Buffer stock is not

enough because they do not anticipate substandard materials delivered to the

company. Borrowing of corrugated tube and substandard materials delivered

are the causes of shortage in corrugated tube for the production of Mitsubishi

690W IPNL. Increase in order of corrugated tube for buffer stock can help the

company to improve productivity rather than having incomplete materials due

to borrowing of corrugated tube for the production of other model and

substandard materials delivered in the company.

Advantage: Disadvantage:

• Increase work procedure by 28.46 %. • Additional cost for increase order of

• 4.93 corrugated tube Php 87,000/month.
• % of excess raw material for buffer • Additional effort by the management
stock. to check delivered corrugated tube if
• Increase profit by Php 329,000 in good condition.
• Eliminate 740 units affected due to
poor material allocation of corrugated
tube.

52
Table 4.3 Summary of Corrugated Tube

Month
No. Of Raw Good Not Good (raw Materials Units Affected
materials (raw materials) needed
delivered materials) in meters per day
(in meters) In meters

July 13,500 13,340 160 meters 520 meters 145 units

meters
meters

August 13,500 13,300 200 meters 520 meters 120 units

meters
meters

September 13,500 13, 310 190 meters 520 meters 105 units
meters
meters

October 13,500 13,290 210 meters 520 meters 135 units

meters
meters

November 13,500 13,310 190 meters 520 meters 110 units

meters
meters

December 13,500 13,320 180 meters 520 meters 125 units

meters
meters

Total 81,000 79,870 1,120 meters 740 units

meters meters

Table 4.3 shows the summary of raw materials in the production of

Mitsubishi 690W Instrument Panel Wiring Looms. Number of good and no good

materials were stated above. it is stated above that the month with the most

number of units affected due to shortage of corrugated tube is July having 145

units.

53
54
 Table 4.4 Existing and Proposed Order Raw Materials
Month Existing Good (raw No Good Shortage Shortage Proposed Excess Raw Percentage of
due to due to no
order of materials) (raw borrowing good order Raw Materials excess raw
materials
raw Delivered materials) Materials materials

materials Delivered

July 13,500 13,340 160 380 160 14,500 700 4.93%

meters meters meters meters meters meters meters
August 13,500 13,300 200 360 200 14,500 700 4.93%
meters Meters meters meters meters meters meters
September 13,500 13, 310 190 340 190 14,500 700 4.93%
meters meters meters meters meters meters meters
October 13,500 13,290 210 370 210 14,500 700 4.93%
meters meters meters meters meters meters meters
November 13,500 13,310 190 350 190 14,500 700 4.93%
meters meters meters meters meters meters meters
December 13,500 13,320 180 300 180 14,500 700 4.93%
meters meters meters meters meters meters meters
Total 81,000 79,870 1,120 2,100 1,120 87,000 4,200
meters meters meters meters meters meters meters
Legend:

Existing Proposed

Table 4.4 table above shows the existing and proposed order of corrugated tubes, 4.93 percent of excess raw materials

will be ordered to prevent shortage of raw materials due to no good materials delivered in the company and borrowing of other

products.

55
 SAMPLE COMPUTATION:

For the month of July:

Excess Raw Materials = Proposed order of materials – ( Good + No Good raw

Materials)

Excess Raw Materials = 14,200 – (13,340 + 160)

= 700 meters (corrugated tube)

Percentage of Excess raw materials = No. of excess materials / proposed order of

materials x 100

Percentage of Excess raw materials = 700/ 14200 x 100

= 4.93%

The table above shows the computation for the percentage of excess raw materials to
be ordered to the supplier.

56
 Alternative Course of Action 3: Give Incentives and Rewards

Many contractual workers comes to work late in EDS (Electrical Distribution

System) Manufacturing Inc. because Yazaki does not have strict execution about the

habitual tardiness of the employees. Factors that affects the workers from being

motivated is the nature of their work. Workers in the production were standing for almost

8 hours with only one hour and fifteen minutes break for the whole day, thus making

them unmotivated. They do not make an effort to meet the quota because they will not

benefit from it in terms of salary and benefits.

The tardiness of the workers of EDS (Electrical Distribution System)

Manufacturing Inc. largely contributes to the company’s production loss, which causes

them to fail in meeting their quota. Rewards and Incentives should be given to workers

with complete attendance and no late in order for the operators to be motivated in doing

their work.

Advantages: Disadvantages:

• Additional Cost for grocery gift

• Eliminate 623 units affected due to certificate worth Php 500 for each
tardiness of worker. employee with perfect attendance
• Increased profit by Php 291,322. and no late.
• Additional cost for Php 100 monetary
• Improved work procedure by
23.96%. reward for each employee with
perfect attendance and no late.

57
Table 4.5 Requirements for Rewards and Incentives for workers

Requirement Rewards

• No late • Will be in included in the list of

• No absences outstanding employees of the

• Good Work Performance month

• Shall receive a Certificate of

Recognition plus a cash award of

Php 500 for every month of

perfect attendance and no late

Table 4.5 shows the requirements and incentives for employees who

will have a good attendance record every month.

58
Figure 4.1 Bulletin Board Format

EMPLOYEES OF THE MONTH

JANUARY

Congratulations!

Figure 4.1 shows the format of the bulletin board to be posted as an action

to motivate the workers to avoid coming to work late and thus, avoiding

production delays.

59
Alternative Course of Action 4: Implement Weekly Preventive
Maintenance for clamping, cutting and twisting machine

The company only practices corrective maintenance. There should be

a scheduled preventive maintenance on the twisting, clamping and cutting

machine based on the history of machine breakdown. The data as shown in

the summary of the machine breakdown shows that the company is having

multiple breakdowns every month. The twisting, clamping and cutting

machines must consistently be checked so that there will be no affected units

caused by the delay in the production. Lessened time indicated for repairs

can be converted to productive time that can be used in production. This will

ensure that there are more outputs made and target outputs are reached.

Preventive maintenance should be performed every week of the production.

Spare parts of the machine and including grease will be provided every week

for the preventive maintenance to eliminate machine downtime.

Advantages: Disadvantages:

• Continuous Production • Additional cost for extra blade for

• Increase profit by Php 520,410. cutting the machine Php 4,800 for 6
• Increase work procedure by 18.35 % months.
• Additional cost for grease for 6
months Php 3,240
• Additional cost for labor of technician
for 6 months Php 10,080

60
ACTION PLAN:

Table 4.7 Existing and Proposed Preventive Maintenance

Existing Corrective Proposed Preventive

Maintenance Activity Maintenance Activity
Schedule:
Schedule
• Corrective machine
• 4 times a month
maintenance is only done when
• Every Saturday 5:00 pm to 6:00
breakdown occurs to a specific
pm
machine.
Machine Types:
Machine Types:
• Clamping Machine
• Clamping Machine
• Cutting Machine
• Cutting Machine
• Twisting Machine
• Twisting Machine

Done by Company Technicians

Done by Company Technicians
Checked and verified by company
Checked and verified by company
engineers.
engineers.

Department-in-charge:
Department-in-charge:
Maintenance department lead by
Maintenance department lead by
Jonathan Perido
Jonathan Perido

This table shows that proposed schedule of Machine Maintenance. The company

only have corrective maintenance. Researcher proposed to have weekly

preventive maintenance to avoid delays due to machine downtime.

61
Preventive Maintenance Program

Machine Parts to Remarks Responsibilities Scheduled

needed to be Maintenance
maintain checked

Clamping Chain belt Adjust chain belt if Saturday

machine loose 5pm – 6 pm
Cutting Blade Replacement of blade Saturday
machine 5 pm – 6 pm

Twisting Grease Add grease to Saturday

machine prevent the machine 5 pm – 6 pm
from stock up

Table above shows the maintenance schedule of maintenance should be

Saturdays which is at 5pm to 6pm so that it will not cause delays on the
production of the company. The people involve are production supervisor and
maintenance technician.

62
 Figure 4.2 Proposed Preventive Maintenance Form

The figure above shows the proposed maintenance form for the clamping,
cutting and twisting machine.

63
 COST BENEFIT ANALYSIS OF
THE ALTERNATIVE COURSES OF ACTION

ALTERNATIVE Benefit
COURSES OF COST
ACTION TANGIBLE INTANGIBLE

Additional Cost for Return on Investment: Even workload

trainings and seminar Units Affected x distribution
for reassigned Production cost= 756x
Alternative Course of workers Php 1,150 Improved teamwork
Action 1: Re- =Php869,400
assignment of
in Mitsubishi 690W
Trainings = 2,500 IPNL
workers Computation for Return
Seminars = 2,500 On Investment:
Total = 5,000 Php869,400- Php Improve job
5,000 performance
= Php864,400

Return on Investment:
Additional cost for the Units Affected x
increase order of raw Production cost= 740x Improve companys’
materials Php 1,150 competitiveness
Alternative Course of
=Php 851,000
Action 2: Increase
order of corrugated =Php87,000/month
Computation for Return
tube for buffer stock
Total cost for On Investment:
months 6 Php 851,000 -
=522,000 Php522,000
= Php329,000

64
 Return on Investment:
Cost of giving
Units Affected x
Incentives and Effective and
Production cost
Awards = 10,000
= 1,223 x Php 294 Efficient workers
Alternative Course of
= Php 359,562
Action 3: Give Total cost for 6
Incentives and months Improve employee
Computation for Return morale
Rewards =Php 60,000
On Investment:
= Php 352,562 –
php60,000- Php 1,120 –
Php 120
= Php291,322

*Spare parts:
=Blade:
Php200x4/month
Total cost of spare
Smoother running
parts for 6 months operation
=Php4,800 Return on Investment:
Units Affected x Improved condition
*Grease:
Production cost and safety of the
=135x4/months machine and
Total cost of grease = 477x Php 1,150 production area
Alternative Course of = Php 548,550
Action 4: for 6 months Eliminate idle time
Implement =Php3,240 Computation for Return in production
clamping, cutting, On Investment:
twisting machine *Salary of Technician
Preventive =1680/month = Php548,550 – Php8060-
Maintenance php 10,080
Labor cost for 6 = Php 520,410
months
=php10,080

65
 CHAPTER V

CONCLUSION AND RECOMMENDATION

CONCLUSION

EDS Manufacturing Inc. assembles and exports automotive wire

harnesses to the major carmakers in USA, Japan and Canada like Mitsubishi

Motors Manufacturing of America, Nissan Motors Manufacturing Corporation,

Toyota Motors Corporation, Chrysler Corporation and Canada Automotive

Manufacturing Inc. The study is all about eliminating 9.03%production loss in

the production of Mitsubishi 690W Instrument Panel Wiring Looms. The

problems that led to the 9.03 % production loss of the company amounting to

2,990,000Php from the months of July to December 2017 are unbalanced

workload (29.08%), poor material allocation of corrugated tube (28.46%),

tardiness of the workers (23.96%) and machine breakdown (18.35%). The

researchers come up to the four alternative courses of action which are: re-

assignment of workers, increase order of corrugated tube for buffer stock ,

giving incentives and rewards to the workers and by implementing weekly

preventive maintenance for clamping, cutting and twisting machine. These

actions will help in eliminating the 9.03 % of production loss experienced in

producing Mitsubishi 690W Instrument Panel Wiring Looms.

66
 Recommendation

The proposed alternatives will eliminate the production loss experienced

by EDS Electrical Distribution System) Manufacturing Inc. Four alternative

courses of action were recommended. First is by re-assigning workers to

maximize their working time because some of the workers tend to be idle,

second is by increasing buffer stock to avoid delay in production due to shortage

of raw materials because of borrowing of other products using the same material

and substandard materials delivered in the company, third is by giving incentives

and rewards that will motivate the worker. Lastly, researcher suggested to

implement weekly preventive maintenance to avoid any delay in the production of

Mitsubishi 690W Instrument Panel Wiring Looms because The company’s

existing maintenance is corrective which is only applied whenever the machines

are broken.

Implementation of the alternative courses of action may add costs to the

company but in the long run it will be able help the company in eliminating 9.03

% production loss.

67
68
 CHAPTER V
DETAILED PLAN OF ACTION

ACTIVITY Personnel WEEKS

Involve
1 2 3 4 5 6 7

1. Presentation of the Production

problems Leaders,
encountered by the Production
company for the past Supervisor
six months and the
proposed alternative
courses of actions.

2. Approval of the Top

proposal project from Management
the management

3. Schedule the Production

activities that must be Supervisor,
done and allocate the Top
budget needed for the Management
implementation of
solutions

4. For ACA 1 :Re-assign Production

workers from Supervisor
appearance and Top
Inspection and circuit Management
continuity testing to
Lay outing in jigboard

a. Orientation regarding
the changes to be

69
 made

b. Provide training and

seminar to workers
reassigned to other
tasks.

5. For ACA 2: Increase Production

order of corrugated Supervisors,
tube Line leaders
and
Management
a. Memo release
regarding the
increase of order of
corrugated tube

6. For ACA 3: Giving Production

rewards and Supervisor
incentives to the and Top
workers with Management
outstanding
performance

a. Memo release to the

workers for
qualification for
rewards and
incentives

7. For ACA 4: Production

implementation of Supervisor
Weekly preventive and Top
maintenance every Management
Saturday 5 pm to 6
pm.

70
a. Memo release for the
preventive
maintenance
schedule for
clamping, cutting and
twisting machine.

8. Monitoring and Production

evaluation of the Supervisor
effectiveness of the and Top
alternatives Management
implemented

71
 BIBLIOGRAPHY

Journals and other Publications

Chacko, Jeremy.(2007), Electrical Build Issues in Automotive Product

Development - An Analysis, Massachusetts Institutes of Technology

Daneshjo, Niram (2013), Production Management Systems, International

journal of Interdisciplinary in theory and practice

Kajino, Santy. (2006), Effect of Additional Shear Strain Layer on Tensile

Strength and Ductility of Finely Drawn Wire - Additional Shear Strain
Layer at Surface of Drawn Wire - Journal of the Japan Society for
Technology of Plasticity

Kobayashi, Amir ( 2015). Optimization of Assembly Processes of an

automobile wire harness. College of Engineering and Computer
Science, University of Michigan-Dearborn.

Paramesh, Balaji. (2013), Lean Six Sigma Implementation in Cable Harness

Manufacturing, Anna University, Chennai, India

Pradham, Ahmir.(2011), Current Trends in Automotive Wire Harness Design,

International Conference on Mechanical, Production and Automobile
Engineering

Oba, Mazahk (2013), Wire harnesses for Next Generation Automobiles.

Elsevier B.V. Inc

72
Books

Candela, Tony. (2009), Automotive Wiring and Electrical Systems. 5th Ed. Indiana,
University of Notre Dame.

Hoffman, Thomas. (1987), Production management and manufacturing system,

Wadsworth Publishing Inc.

Gustavson, Richard. (2000), Production Systems Engineering: Cost and

Performance Optimization 1st Edition. Mcgraw Hill Publication.

Kohli, Porto. (2016), Automotive Electrical Equipment , Mc-Graww Hill Publication,

first edition.

Samiul, Hasan. (2012), Automotive Electrical System. Lambert Academic

Publishing, second edition.

Shook, John. (2016), Lean Production simplified: a plain-language guide to the

world’s powerful production system. CRC Press: Taylor, third edition.

73
Electronic Resources

Egel, Terry. “Wire harness simulation and analysis techniques”, January 20,
2000. https://www.sae.org/publications/technical-papers/content/2000-01-
1293/

Millerm, Jason. “Automotive electrical system in the new millennium”, July 12,
2001.https://pdfs.semanticscholar.org/a1c0/09db6dd78b2e88493a23269a1ac
2176c5c49.pdf

Park, Barry. “Cable and Harness Manufacturing: Productivity through

Flexibility”. March 17, 2015. Retrieved from.
https://www.camiresearch.com/Campaigns/Web-Articles/pdfs/Cable-Harness-
Manufacturing-*.pdf

Osada, Yasafumi. “Development of Wire Harness Modules”, July 10, 1998.

Retrieved form. https://www.furukawa.co.jp/review/fr018/fr18_02.pdf

Yamano, Yoshida. “Development of Aluminum Wiring Harness”. October 19,

2014. Retrieved From.
https://www.sciencedirect.com/science/article/pii/S1877705814013368

Yoon, David, “A Hybrid Wireless Harness for Automotive Applications”,

December 27, 2015. Retrieved From.
https://www.researchgate.net/publication/258420790_A_Hybrid_Wireless_Ha
rness_for_Automotive_Applications

74
APPENDICES

75
 Appendix A

OJT Acceptance

Form

76
77
 Appendix B

Parental Consent

Form

78
79
Appendix C

Certificate of

Completion

80
81
 Appendix D

Certificate of Proof

Reading

82
83
 Appendix E

Proof Reader’s

Credentials

84
85
 Appendix F

Researcher’s Profile

86
Dela Cruz, Regina Meigh A.
Blk 4 Lot3 Sincere street, Good Family Homes Subdivision

Imus, Cavite

Email: reginameighdelacruz@yahoo.com

Contact No: 0916-494-5274

CAREER OBJECTIVE

Seeking to obtain a position with a company that has a vision and rewards
hard work, strong ethics and is open to out-of-the-box thinking.”

EDUCATIONAL BACKGROUND

Tertiary De La Salle University - Dasmariñas

2012 - Present Bachelor of Science in Industrial Engineering
Dasmariñas City, Cavite
Secondary Saint Gregory Academy
2009 – 2011 Indang, Cavite
Elementary Cavite State University - Child Development Center
2008-2011 Indang, Cavite

TRAINING &SEMINARS ATTENDED

April 2018 Finalist - Pitching Competition
DLSU-D Research Week: Envisioning a sustainable Cavite
De La Salle University Dasmariñas

April 2017 “Becoming a professional Industrial Engineer”

De La Salle University Dasmariñas

May 2017 Plant Visit / Seminar

South Korea

February 2016 13th PIIE National Student Congress

J Centre Convention Hall, Mandaue City, Cebu

87
COMPANY STUDIES CONDUCTED

➢ Methods of Study (MTS) Study

“A Study on eliminating 10.11% production loss in Asian Micro Mfg. Inc. in producing
uninterruptible power supply amounting to Php 9,169,833.2 from the months of January to
March 2015”

➢ Human Factor Engineering (Ergonomics) Study

A Study to eliminate 46.44% ergonomic related problems experienced by HS Craft
Manufacturing in producing P100L Christmas lights amounting to Php 203,250 for
the months of January to June 2015

➢ Quality Control & Assurance (QA&C) Study

“A study on eliminating the 7.99%reject rate in the production of RCP size 12amounting to
411,230php of the DAP-Pipes Manufacturing for the months of January – June 2015 due to
defective outputs”

➢ Systems Engineering Study

“A study in eliminating the 38.38% Opportunity Loss in the Maritime Industry
Authority (MARINA) from the months of January to June 2015.”

➢ Facilities, Planning and Design (Layout) Study

“A Study on Eliminating the 11.25%Production Loss of Layout Related Problem in the
production of Collapsible Post Pallet amounting to Php289,851.75 from March to August
2016”

➢ Production Systems Study

“A study on eliminating the 11.12% production loss in Magnetica Electronics Inc.
amounting to Php 1,004,892.00 in producing Flyback Transformer EPA1726C from
the months of December 2016 to May 2017”

➢ Technical Research
“COWA DOG BED: Odor Eliminator and Reusable Dog Bed Made from Coconut
Coir with Water Hyacinth Fiber”

➢ Feasibility Research
“OSOLE: An Organic Insole Made of Pandan Fiber with Papaya Peel Extract that
eliminates odor and heals dead skin”

88
SKILLS

• Possesses excellent organizational and presentation skills; be it verbal, or

written.

• Flexible, hardworking, adaptive and has initiative.

• People-oriented and can work well with minimum supervision.

• Has the ability to pay excellent attention to detail and work efficiency.

• Fast learner. Believes there’s always room for improvement and no limit to

learning.

CHARACTER REFERENCES

• Engr. Ma. Estrella Natalie B. Pineda, Engineering Chair

De La Salle University-Dasmariñas
Dasmarinas, Cavite
• Engr. Maria Socorro Bunda, Engineering Faculty
De La Salle University-Dasmariñas
Dasmariñas, Cavite
• Engr. Maria Lourdes Parcero, Engineering Faculty
De La Salle University-Dasmariñas
Dasmariñas, Cavite

I hereby certify that the said info above is true and accurate according to my
resources and knowledge.

Regina Meigh A. Dela Cruz

89
90