Chapter I

INTRODUCTION

Premier Creative Packaging, Inc. started its business as a privately

owned company in July 1993 with Mr. Herman De Leon as President. It

was established to manufacture various customized plastic packaging

products for household and personal need like detergents, shampoos,

powder (talc) and plastic drinking bottles for both local and multinational

companies.

To meet the growing needs of the market, Premier Creative

Packaging, Inc. transferred from Mindanao Ave, Quezon City Plant to our

very own Cavite Plant in April 2005 located at Lot 3C, Block 5, 4th Street,

First Cavite Industrial Estate in Dasmarinas, Cavite. This 9000 square

meters land area was bought by Mr. Herman De Leon in the year 1996,

with only one building, housing only 1 machine exclusively to cater to the

expanding needs of one particular multinational company. By 2005, 4 new

buildings were built – the raw materials warehouse building, production

building which has the mold engineering shop in its basement, the finished

goods warehouse building and the administration building.

Through the years, Premier aimed to remain one of the biggest and

technologically advanced plastic fabricator in the Philippines. We

relentlessly faced challenges that would enhance our expertise in the field

by forging business partnerships with local and multinational companies.

BACKGROUND OF THE STUDY

Premiere Creative Packaging Inc. is one of the leading fabricator and

distributor of different types of bottles and packaging products. Premiere Creative

Packaging is experiencing 15.53% production loss in producing 500mL Absolute

Drinking Plastic Bottle from October 2014 to March 2015 amounting to PHP

2,238,558.00.

Based from the actual observation of the researchers, production loss is

occurred due to shortage of raw materials, machine breakdown, and ineffective

utilization of hopper dryer machine. One product that Premiere Creative

Packaging Inc. is manufacturing is 500mL Absolute drinking bottles. Based from

the actual observation of the researcher, production loss is occurred due to OPC

related problems. The first contributor for OPC related problem is the shortage of

raw materials due to non-compliance of the supplier in delivering plastic resin,

the supplier doesn’t deliver the exact number of resin that company order,

because of this production of the drinking plastic bottles are affected. Second

contributor is the machine breakdown due to lack of preventive maintenance.

The company operates only do corrective maintenance that makes the machine

prone to breakdowns. The last contributor is the ineffective utilization of hopper

dryer. The worker just estimate the time when to load the material in the hopper

and sometimes doesn’t notice when the hopper dryer runs out of material which

lead to downtime in the production.

PROBLEM STATEMENT

Premiere Creative Packaging Inc. is experiencing 15.53% production loss

in the manufacturing of 500mL Absolute drinking plastic bottles amounting to

PHP 2,238,558 from the months of October 2014 to March 2015.

OBJECTIVES OF THE STUDY

General Objective

To eliminate the 15.53% production loss in the manufacturing of

500mL Absolute drinking plastic bottles amounting to PHP 2,238,558.00 in

Premiere Creative Packaging Inc. from the month of October 2014 to

March 2015.

Specific Objectives

 To meet the exact amount of raw materials needed

 To keep the plastic injection machine in top condition

 To improve the utilization of the hopper dryer

SCOPE AND LIMITATION

The study conducted last April 2015 on Premiere Creative Packaging Inc.

located in Lot 3C, Block 5, 4th Street, First Cavite Industrial Estate in

Dasmarinas, Cavite. The study focused on one of the product of Premiere

Creative Packaging Inc. which is the 500mL Absolute drinking plastic bottles.

The study emphasizes on significant matters related to the production

planning & control. The factors causing production loss of the product based on

actual & standard output would also be given further attention. The data given is

only limited for the months of October 2014– March 2015.

SIGNIFICANCE OF THE STUDY

To the Students

This study helps students to achieve critical thinking in terms of giving

solutions on different types of problems in a company, specifically in Production

Planning & Control. Also, the study may serve as a reference for the students in

conducting their future company study. It will help to enhance their analytic and

technical skills so that they can easily adapt when they are exposed to the

industrial field and help the firm to improve its productivity.

To the Readers

This study may expose the mind of the readers to the importance of

production systems in a growing business or company. It would also make a

good boost to their critical thinking by understanding the relationship of the

different factors on production system and the continuous growing of the

company.

To the Company

The company can benefit in determining the specific factors contributing

to the production loss. With this study, they will be able to determine ways on
how to reduce their losses by implementing new ideas or changes in their

production process. Through this proposal, the company can consider this as a

relevant reference for the future development of its operation.

DESIGN AND METHODOLOGY

Interviews

Data and information was gathered through interviews to the key

personnel at Premiere Creative Packaging Inc. Information like company’s

profile, including the history, products, standards, operations, problems

encountered were asked. Most of the information that was accumulated by the

researchers was given by Engr. Willy Del Rosario.

And these were the following questions that were asked to gather data:

 What kind of products the company manufactures?

 What are the processes in manufacturing your products?

 Do you encounter problems during production? If so what are these

problems and how do you respond to it?

 What are the primary materials did your company used?

 What are the common problems that are encountered in the production of

your goods?

 What are the reasons why at times your company did not meet the target

output?
  Do your company experience delay in production? If yes, state the

common reasons.

The operators were also asked by the researchers to give them a glimpse

of how the operators know exactly what they are doing in the operation.

Actual Observations

Authorized personnel let the researchers to be toured in the area. As he

was pointing some of the details about the place, the researchers fully visualizes

and understand every operation that was done.

Through observation, the researchers have seen some factors that were

contributing to the production loss of their product which will be further discuss as

you go along in this study.

DEFINITION OF TERMS

Applied Hours - total productive hours from the available hours. It is the total

available hours less all types of downtime and less all time during which the

operator and the machines are idle for varied reasons.

Available hours - the total time during which a machine could work based on the

working days

Plastic Injection - is the most commonly used manufacturing process for the

fabrication of plastic parts. It ranks as one of the prime processes for producing

plastics articles.
Plastic Products - is any of a wide range of synthetic or semi-synthetic organic

solids that are moldable. Plastics are typically organic polymers of high molecular

mass, but they often contain other substances.

Plastic Resins - is a polymer-based material used as raw materials in everything

from drinking bottles to garment bags.

Utilization – the proportion of the available time (expressed usually as a

percentage) that a piece of equipment or a system is operating.