MAPUA INSTITUTE OF TECHNOLOGY AT LAGUNA

Academic Year 2019 – 2020

PROCESS EFFICIENCY IMPROVEMENT IN THE PRODUCTION OF 8X12

CHOCOLATE DEDICATION CAKE AT ZENITH FOODS CORPORATION,
CALAMBA LAGUNA

Deanna Regina Cueva BARAIRO

Alyssa Marie Dasig CASTAÑEDA
John Renn Salazar LEYNES

Engr. Alfredo A. Gatdula

A Thesis Proposal Submitted

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Industrial Engineering

The thesis attached hereto, entitled “PROCESS EFFICIENCY IMPROVEMENT IN
THE PRODUCTION OF 8X12 CHOCOLATE DEDICATION CAKEAT ZENITH
FOODS CORPORATION, CALAMBA LAGUNA”, prepared and submitted by
DEANNA REGINA C. BARAIRO, ALYSSA MARIE D. CASTAÑEDA, and JOHN
RENN S. LEYNES in partial fulfilment of the requirements for the degree of Bachelor
of Science in Industrial Engineering is hereby accepted.

RENE D. ESTEMBER MADONNA F. ANDRADA

Panel Chair Panel Chair

______________________ ______________________

Date Signed Date Signed

ALFREDO A. GATDULA

Adviser

______________________

Date Signed

EZRHA C. GODILANO

Program Chair, IE

____________________

Date Signed

ORLANDO G. PEREZ

Dean, Mapua Institute of Technology at Laguna

______________________

Date Signed

2
 Copyright

“The author and the adviser authorize consultation and partial reproduction of this thesis

for personal use. Any other reproduction or use is subject to copyright protection.

Citation should clearly mention the reference of this work.”

Malayan Colleges Laguna, July2020

The Adviser The Authors:

Engr. Alfredo A. Gatdula Deanna Regina C. Barairo

Alyssa Marie D. Castañeda

John Renn S. Leynes

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 Biographical Sketch

DEANNA REGINA C. BARAIRO is the only child of Lailanie Barairo and Sonny

Barairo. She was born on January 30, 1999 and was raised in Calamba, Laguna. She

finished her secondary education at St. Benilde International School Calamba

Incorporated. After which, she decided to take up BS degree in Industrial Engineering at

Malayan Colleges Laguna where she became a member of the organizations Operation

Research Society of the Philippines - MCL Chapter and Philippine Institute of Industrial

Engineering - MCL Chapter.

ALYSSA MARIE D. CASTAÑEDA is the only child of Jude and Marivel Castañeda.

She was born on August 25, 1998 in Cabanatuan City, Nueva Ecija and was raised in

Biñan, Laguna. She finished her secondary education at St. Scholastica’s College-

Westgrove in Silang, Cavite and later on pursued BS Industrial Engineering at Malayan

Colleges Laguna. She is a member of the organization Philippine Institute of Industrial

Engineering – MCL Chapter and is part of the Board of Directors during her last year in

college.

JOHN RENN S. LEYNES is the eldest among the four children of Johnny and Greta

Leynes. He was born on October 21, 1999 in Sta. Rosa City, Laguna. He finished his

secondary education at Saint Benilde International School Calamba Incorporated. He is

currently taking Bachelor of Science in Industrial Engineering at Malayan Colleges

Laguna and a member of the organization Philippine Institute of Industrial Engineering –

MCL Chapter.

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 Acknowledgement

We, the researchers, would like to express our tremendous appreciation and

sincere gratitude to all those individuals who contributed to this study's achievement. We

are very pleased and thankful for the confidence and support they have provided to us,

this capstone would not have been possible without their encouragement and constant

help.

We thank our thesis adviser, Engr. Alfred A. Gatdula, for your constant

guidance and encouragement with us until we have completed this capstone project. He

has directed us in every detail we put into this research and has suggested his ideas for

further enhancement of this research

To our Bachelor of Science in Industrial Engineering department program

chair, Engr. Ezhra C. Godilano, we would like to acknowledge your suggestions and

personal perspective for our capstone project. Through this study, you have given us

better ideas for being more insightful and resourceful.

To the members of the panel, we appreciate your patience, helpful feedback

and important questions for this study to be improved.

To our family who are still helping and loving us through good times and poor

times. Who inspires us the most of the time, to give us strength to work harder. We want

to thank them for the love, concern, understanding and encouragement in continuing and

finishing what we have begun.

And above all, to our all mighty God. Throughout this study we thank Him for

knowledge , wisdom and power. And thank You for the gift of life and continuous

guidance
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 Abstract

The study was conducted in Central Icing Section 1 and 2 of the Zenith Foods

Corporation (ZFC) Production Area, located in Unity Avenue, Carmelray Industrial Park

1, Canlubang, Calamba, Laguna. The products that are being manufactured in the area

assigned to the researchers are chiffon and moist cakes. Each production line is tasked to

produce a certain type and variant of cake, with the use of a conveyor from the start up to

the end of the finished goods process. Based on the data given by the company, it shows

that most of the highly demanded products are being processed in the Central Icing

Section 1 and 2. The study aimed to determine the factors affecting the process efficiency

and how it can be improved to achieve better production outputs and higher revenues for

the company. Industrial engineering tools and applications such as Time Study, Why-

Why Analysis, How-How Analysis, Line Graph, and Cause-and-Effect Diagram were

used for the analysis of the problem and the supporting data that went along with it.

Based on the data gathered and analyzed, it was found out that workers' skills and the

delay of raw materials lead to the low production performance of the Chocolate

Dedication Cake (8x12) process. These factors created downtimes and delays in CDC

8x12 processing, resulting in low output count on a given day / month. Also, givingThis

gives the company additional production costs like overtime pays and additional

manpower. After analyzing the production set-up of the company, the researchers

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recommend to have the employees undergo an evaluation and training seminar, and to

improve the operation of in-process goods.

Table of Contents

Copyright i

Biographical Sketch ii

Acknowledgement iii

Abstract iv

Table of Contents v

Introduction 1

Review of Related Literature 10

Methodology 21

Results and Discussion 25

Conclusion 48

Recommendation 51

References 54

Appendices 52

List of Tables vi

List of Figures viii

List of Appendices ix

Definition of Terms x

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v
 List of Tables
Table Number Title
Pag

1 ACTUAL AND TARGET OUTPUTS IN THE PRODUCTION

OF 8X12 CDC AT CIS 1 6

2 REQUIRED MANPOWER AT CDC (8X12) LINE (PER

SHIFT) 27

3 MONTHLY ACTUAL AND TARGET OUTPUTS IN THE

PRODUCTION OF 8X12 CDC AT CIS 1 30

4 PROCESS EFFICIENCY PER WORKSTATION 32

5 % CONTRIBUTION OF EACH WORKSTATION 33

6 REVENUE IMPACT 33

7 DATA FOR DELAYED RESPONSE TIME OF THE

OPERATOR 35

8 WORK SAMPLING IN 8X12 CDC PRODUCTION LINE 36

9 PRESENCE OF NON-VALUE ADDING ACTIVITY 38

10 VALIDATION OF ROOT CAUSES 38

11 HOW-HOW ANALYSIS FOR THE IDENTIFIED ROOT

CAUSE 39

12 COST BENEFIT ANALYSIS OF THE PROPOSED

SOLUTIONS 40

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 13 % IMPROVEMENT OF EACH SOLUTION TO ICING

SPREADING WORKSTATION 46

14 INCREASE IN REVENUE AFTER IMPLEMENTATION OF

SOLUTIONS 46

15 INCREASE IN EFFICIENCY AFTER IMPLEMENTATION

OF SOLUTIONS 49

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 List of Figures

Figure Number Title Page

1 LINES 4-7 IN CIS 1 AND 2 2

1.1 WORKPLACE LAYOUT 4

1.2 ACTUAL OUTPUT OF CHOCOLATE DEDICATION

CAKES 5

1.3 ACTUAL PERCENTAGE EFFICIENCY FOR THE MONTH

OF JULY - DECEMBER 6

3 FLOW DIAGRAM OF THE DEVELOPMENT OF THE

METHODOLOGY 21

4 PROCESS FLOW OF CHOCOLATE DEDICATION CAKE

(8X12) 25

4.1 LAYOUT OF CIS 1 27

4.2 LINE BALANCING CHART OF STANDARD TIMES PER

EACH WORKSTATION 28

4.3 MONTHLY OUTPUT FROM JULY – DECEMBER 30

4.4 PROCESS EFFICIENCY PER WORKSTATION 31

4.5 WHY-WHY ANALYSIS EVALUATING 8X12 CDC

PRODUCTION LINE 34

4.6 EVALUATION FORM SAMPLE 42

4.7 BD9 MACHINE 43

4.8 BD5 MACHINE 44

4.9 PROPOSED LAYOUT 45

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 List of Appendices

Appendix Title Page

a
DATA FOR NON-VALUE ADDING ACTIVITIES 52

B DATA FOR DELAYED RESPONSE TIME 53

C REVENUE IMPACT 53

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Definition of Terms

CIS (Central Icing Section) - Area of the production where the last process of

preparing the cake was done. This area includes the coating of the icing, decorating the

cake and boxing.

FINISHED GOODS - Materials or products that have obtained the final

increments in value through manufacturing or processing activities and are kept for

shipments, sale or use in inventory.

ACCESSORIES - Such as ribbon accessories, theme toppers, and sprinkles.

IN-PROCESS GOODS - Products that still need to undergo other process

before reaching the icing/final station.

METAL DETECTOR - An electronic tool that detects metal that was

accidentally mixed with cakes and icing.

OUTPUT - Amount of product produced over a period of time.

TIME STUDY - A skilled worker’s evaluation of a particular job in an attempt

to find the most time-and-effort-efficient technique. Time study measures the time

needed to complete a job or assignment using the best technique.

PROCESS FLOW CHARTIs a sequential order image of the separate steps

of a process. It is a generic instrument - that can be tailored for a broad range of reasons

and can be used to define different procedures, such as a production process, an

administrative or service process, or a project schedule. It is one of the seven fundamental

quality instruments and a popular process analysis tool.

WASTE - Any action or step in a process that does not add value to the

product.

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 Introduction

Zenith Foods Corporation (ZFC) is a commissary property of Jollibee Foods

Corporation (JFC). Jollibee Foods Corporation is a Philippine-based company that is

focusing on development, operation and franchising of quick-service restaurants. JFC has

acquired a total number of 37 subsidiaries due to the company's rapid growth. From a

small cake shop in Timog Avenue, Quezon City that was established in 1979, Red

Ribbon was acquired by Jollibee Foods Corporation in October 2005.

Locally, there are other production plants of Zenith Foods Corporation that

supply Red Ribbon products. The researchers were designated at Unity Avenue,

Carmelray Industrial Park 1, Canlubang, Calamba, Laguna. The manufacturing company

produces and distributes excellent quality Red Ribbon products in over 200 branches

nationwide.

Zenith Foods Corporation, also called Zen8, is focused on baking. Products

that are being manufactured in this sector are Red Ribbon pastry products like cakes,

mamon, and ensaymada. Zen 8 has 2 clusters. Cluster 1 has 3 areas: Materials

Preparation, Baking, and Finishing; while cluster 2 is where the Central Icing Section

(CIS) and Creaming Section is located. CIS has three parts, CIS 1 and CIS 2 which

focuses on chocolate icing cakes, while CIS 3 produces white frosting cakes.
 Cakes are one of the most in demand products of Red Ribbon bakeshop. The

CIS department manufactures a wide range of cakes in various flavors. The researchers

were particularly assigned in the CIS 1 and CIS 2 area where there are 14 lines in total

that produces Chocolate Dedication Cake (CDC) in sizes 8x8, 8x12, 12x12, Triple

Chocolate Roll (TCR) in sizes half and full, Mocha Dedication Cake (MDC) in sizes 8x8,

8x12 , 12x12, Rainbow Dedication Cake (RDC) in sizes 8x8, 8x12, 12x12, and Chocolate

Indulgence.

Each cake will go through several processes before transferring it is transferred

to the endorsement area. For CIS 1 and some parts of CIS 2, Chocolate Chiffon Base

Cake is their input and these base cakes will undergo series of processes before it can be

considered as finished goods and be endorsed.

Figure 1.: Lines 4-7 in CIS 1 and 2

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 Figure 1 shows the Process in the production of the Chocolate Dedication

Cake. From the slabbing area, in-process base cakes will be transported to the production

line to begin with the finished goods process. From the crate, base cakes will be

transferred on a cake board and will be placed on the conveyor for chocolate depositing.

The automated depositing machine only covers the cake’s top surface. Beside the

conveyor, there are four rectangular tables with two workers each, tasked in spreading

chocolate icing across the surface of the cake and for making the cake’s physical

appearance look great. After the icing was spread, two workers are assigned to place the

top border of the cake with another two workers putting the accessories around it. Then,

two workers will put the bottom border to complete the cake’s appearance. At the end of

the production line, one worker is tasked to place the cake in the box before putting it into

the rack. After completing 56 boxes, the rack will be transported to the metal detector

area for inspection. Lastly, qualified cakes will be subjected for endorsement.

Most of the procedure is performed manually when creating the finished

product, and only the depositing of the chocolate icing is automated, which is why each

line has 16 workers.

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 Figure 21.1 : Workplace Layout

The figure 1.1Figure 2 illustrates the layout of the workplace. Lines 4, 5, 6, and

7 are used to manufacture Chocolate Dedication Cake as seen above, but only lines 6 and

7 are used to manufacture the size 8x12. Tables beside the conveyors are used for the

spreading of icing.

Zenith Foods operates 24 hours a day for the manufacturing area, and 8 hours a

day for the office area, to generate the necessary volume output for the month. The

production zone has 2 shifts, the first starts at 6:00 AM and ends at 6:00 PM while the

second shift starts at 6:00 PM – 6:00 AM, respectively.

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 Of all the processing area that manufactures cakes, CIS 1 and CIS 2 produce

cake variants which are high in demand thus, this region has the largest number of

processes with poor process efficiency. According to the company, we wereThe company

tasked the researchers to observe this area because of its low process efficiency. For this

reason, the researchers, with the help of the IEs of Zenith, decided to concentrate on

Chocolate Dedication Cake since it is the company's flagship product.

Figure 3.1.2: Actual Output of Chocolate Dedication Cakes

The Chocolate Dedication Cake has 3 different sizes that require covering most

of the lines for its production in the CIS 1 and CIS 2 Department. The proponents

focused their attention with the variant that has the highest demand based on the actual

outputs produced. As shown in Figure 1.2,3, Chocolate Dedication Cake 8x12 has the

most number of actual outputs as compared to the other sizes.

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 Figure 1.34: Actual Percentage Efficiency for the month of July - December

Figure 1.34 shows the actual percentage efficiency for the month of July to

December supported by the table below. It is manifested in the figure above that the

target was only hit once during the span of 6 months. The average actual process

efficiency rating for these months is at 68.32%, but the company wants to achieve at least

80% process efficiency. It is evident that the production performance of CDC 8x12 does

not meet their standard process efficiency.

TABLE 1Table 1
Actual and Target Outputs in the production of 8x12 CDC at CIS 1
JULY AUG SEPT OCT NOV DEC TOTAL
TARGET 12,499 103,912 97,790 104,160 280,000 864,156 1,558,317
ACTUAL 88,560 85,112 60,171 78,307 170,608 581,876 1,064,633
VARIANCE (23,93) (18,800) (32,61) (25,85) (110,192) (282,280) 493,684
EFFICIENCY 78.72% 81.91% 64.85% 75.18% 60.76% 67.33% 68.32%
(Source: Zenith Foods Corporation)

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 Sample Computation for the month of July

Variance=Monthly Target Output −Monthly Actual Output

Variance = 112,499 – 88,560

Variance = 23,939

Sample Computation of the Process Efficiency

Actual Ouput /month

Process Efficiency= × 100
Target Output /month

1,064,633
Process Efficiency= ×100
1,558,317

ProcessEfficiency = 68.32%

The 68.32% Current Average Process Efficiency of the company can cause

profit losses. With low process efficiency, the number of variance will increase and with

this there will be loss sales. The company may also incur additional costs like overtime

pay, delivery charges, and additional manpower expenses just to produce the demand on

time.

Statement of the Problem

The actual process efficiency on the average is at 68.32% as compared to the

target process efficiency of 80%. The 11.68% difference between the target and actual

process efficiency becomes a hindrance to achieve the desired number of expected

outputs. The researchers aim to lessen the variance in order to reach at least75% process

efficiency level.

Objectives
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 This study is conducted to improve the process in the production of the

Chocolate Dedication Cake by reducing the process efficiency variance. Hence, the

purpose of this study is to (1) Identify the factors that contribute to the low process

efficiency, (2) Identify the root cause of the low process efficiency, and (3) Provide a

solution to improve the process efficiency from 68% to at least 75%.

Significance of the Study

This study would help the company to reduce their waste and increase their

output produced per day. Also, as a plant that just started their operation last April 2019,

it will would be desirable for the company to introduce possible improvements as soon as

possible in order to make more profit.

The performance of this thesis would also enable researchers to build and

extend their expertise to the management of actual operations. In fact, the proponents’

first-hand experience can be a learning experience to them. Concepts and principles

taught in this industry would improve the knowledge and skills of the researchers.

Lastly, the findings of this study would help the organization and its bakeshop

divisions and may act as a future reference to further improve the process.

Scope and Delimitations of the Study

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 Based on Figure 1.23, the Chocolate Dedication Cake (8x12) has the lowest

process efficiency, which is why the researchers focused their attention on this particular

variant. This study will tackle solely on the process efficiency improvement of the cake.

This research will deal with the motion of manpower and the idle time of the cake in the

finished goods process, excluding the idle time for reject icing and base cakes. Process

efficiency of lines that produces other products of CIS 1 and CIS 2 like Chocolate

Indulgence, Rainbow Dedication Cake, Mocha Dedication Cake, Mocha Roll, and Triple

Chocolate Roll is no longer part of the scope of this study.

Review of Related Literature

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Cake Production

Consumer demand for high-quality and delicious food at a lower price, organic

food, good nutritional content in the meat, and efficient food supply increases

manufacturers' pressure. In an effort to achieve these multidimensional targets while

preserving profitability, the industry needs to develop an integrated approach to

enhancing food processing efficiency, better quality control, effective use of energy and

resources and efficient reuse of by-products and waste production. Cake has long been

known and is available in numerous variants. Most cakes are made from wheat flour and

therefore have a certain amount of gluten, which ensures that extra care is needed to

ensure the cakes do not have a chewy texture. Upon adding the sugar, the cake

ingredients are combined as little as possible (Mastenbroek et. al, 2017). Baking

companies produces millions of products a day. To pass quality control checks, the goods

must be identical in volume, shape and appearance, and this is accomplished through a

large automated process.

Process Efficiency

A business outcome could be anything that your company produces, whether

it's a product (tangible or intangible) or service delivery. Many businesses manufacture

goods and services. In most cases it is usually found that the processes contain

inefficiencies built over a period of time. First and foremost any customer who purchases

a product or service expects service quality. The process efficiency can be ascertained,

depending on the nature of the business or the service (Li, 2015). According to

Trojanowska et al. (2018), measuring process time at all levels gives rise to a lot of

10
factors that support or damage process efficiency and hence offers enough knowledge so

that process management and improvement can be worked on. Measuring operation time

or cycle time can also give rise to non-value added time as well as behavior that can be

used for correction. In addition, any deficiencies in the worker’s training or skills and any

delays or inefficiencies arising from the related processes that are supposed to provide the

inputs will also show up with the process's cycle time measurement.

Lean Manufacturing

Manufacturing companies operating in the fast-changing and highly

competitive environment of the past two decades have adopted Lean thinking concepts.

In doing so, they reorganize into cells and value streams to improve their manufacturing

processes ' performance, efficiency, and customer response time. Lean is best known as a

production model, but many claims that it needs to be applied much more broadly as a

full business system to be effective (Fullerton et. al, 2014). As many researchers have

suggested, lean manufacturing is considered a waste reduction technique, but in practice

lean manufacturing maximizes product quality by reducing waste. Lean concepts identify

the quality of the product / service as viewed by the consumer and then make the flow in

line with the customer pull and strive for perfection by continuous improvement to

eliminate waste by filtering out Value Added Activity (VA) and Non-Value Added

Activity (NVA) (Balaji Sundar et. al, 2014).

Lean Management originated from Toyota Production System (TPS), is now one of the

most influential theories of management in both the manufacturing and service settings.

Simplicity is one of the factors for such a success. The whole concept is based on a so-

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called “waste” definition of common sense. Removing it is Lean Management’s very

core. Eliminating waste is not an easy task, despite seemingly simple principles. Many

companies are still struggling to clear the waste out of their processes, even those with

many years of Lean experience. It turns out that the hardest part is not to eliminate waste

on its own, but to define and illustrate it, which should precede the removal process

(Pieńkowski, M., 2014).

According to (Pieńkowski, M., (2014), recognizes three main types of waste -

Mura (unevenness), Muri (overburden) and Muda (waste). The three Mu’s are closely

linked and characterize Japanese perception of waste together. (Dinis-Carvalho, J., et. al,

2015) discussed how Taiichi Ohno laid down waste further into seven categories:

● Overproduction - Produce more than or before the necessary downstream

time exceeds the demand of the consumer, resulting in additional costs.

Actually, the other six wastes are caused by overproduction. The

explanation for this is the excess products or activities require additional

travel, unnecessary movement, longer waiting times, etc.

● Inventory - Waiting product for storage, transportation, testing, etc. In

such cases, in order to meet unforeseen demand, protect business from

production delays, low quality or other issues, they exceed themselves.

Such unnecessary inventories, however, often do not meet the needs of the

consumer and do not add value. Inventory only increasing the cost of

processing and depreciation.

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 ● Waiting - People waiting for data, machines to complete their automated

cycles, for machines, etc. It is easy to identify because the most obvious

thing that can be detected is lost time.

● Defects - Defected work must usually return to output again, which will

cost valuable time. Moreover, in some situations, there is a need for an

additional reworking area with additional exploitation of labor and tools.

Manufacturing of defective products results in many associated costs such

as material costs, labor costs, machine costs, etc.

● Over-processing - Over-processing is a type of waste reflects work that

does not give added value or adds more value than necessary. Less work is

done on the item than the consumer wants.

● Motion - People who walk and make movements without added value to

the products. It can cause injury, extended time of development, and more.

In other words, do whatever it takes to create a process in which workers

have to do as little as possible to complete their work.

● Transportation - Moving products from one place to another. Excessive

material can be expensive to the business and can cause quality damage.

Transportation can often force the organization to pay for time, storage

and equipment in addition.

On the other hand, according to (Modi, D.B., and Thakkar, H., 2014) Lean

Management’s fundamental purpose is to manufacture the product with minimum waste

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and continuous improvement of all activities and processes involved in any form of work.

For this reason, key elements including:

● Kaizen - The Kaizen process is based on the lowest approach and common

sense. It is a Japanese word, meaning Continuous Improvement.

● 5S - 5S is a method for workplace organization. It is a way of including

associates in their workplace possession.

● Just in Time (JIT) - Just in Time means getting the right quantity of goods

at the right time.

● Value Stream Mapping (VSM) - Value stream mapping is a powerful tool

for recognizing waste and understanding the flow of the product and the

data.

● Total Productive Maintenance (TPM) - TPM is a lean tool for

maximizing the performance of production equipment.

● Single Minute Exchange of Die (SMED) - SMED means “A rapid and

efficient way of converting a process from running the current product to

running the next product”. It helps to achieve higher efficiency and

thought out lower cost.

Work Sampling

Work sampling is a statistical technique for calculating the time spent

conducting such tasks by individuals. Many work sampling expressions can be found in

the literature, such as event sampling or incident sampling, but work sampling is the one

14
that prevails. The approach is focused on the collection at specific time intervals of

information on ongoing activities and is established in various research areas.

To formulate valid analysis of work sampling, these measures must be

followed: 1). Identify behaviors the main purpose of the study is to track; 2). assessment

of the relevant time percentage for the study type; 3). Selection of the required study

accuracy level; 4). description of research time intervals; and 5). number of sampling

points re-calculated to meet the required level of precision. In order to achieve the desired

precision of the analysis in terms of the granularity of the activities, it is necessary to

determine the required number of sampling points. The size of the sample may range

from a few hundred sampling points to a few thousand. If the number of sampling points

increases, the results obtained are more important and more reliable. The exact number of

sampling points required per day depends on the number of participants and the duration

of the study. Sampling points should be evenly distributed over the different working

days of the sample.

Cause-and-Effect Diagram

Cause-and-Effect Diagram is the product of a general effect study (cause)

triggering the observed phenomena of a particular outcome (work processes). In an effort

to boost the quality of products and services businesses and service organizations, the

current method has a wide range of applications in the quality assurance systems of all

the company's functions in terms of: Identification of the actual causes of a particular

condition (outcome) arising from the enterprise or service organizations' activity and

15
identifying and evaluating the cause – the impact relationship in the flow of materials,

resources and data that provides the basis for successful troubleshooting if the condition

is encountered as a consequence – the outcome of the work beyond tolerance limits or

defined objective purpose.

Line Efficiency

A production line is described as a set of workstations that is linked together

and move parts from one station to another (Ameen et. al, 2018). Flow lines are usually

interrupted due to changes in process time and or workstation malfunction. These delays

enable the line to be inactive, resulting in reduced productivity.

According to Trojanowska et al (2018), efficiency output is defined as the total

number of items that can be generated within a certain period of time. In order to improve

productivity, a company must aim for a 100% utilization efficiency. Bottleneck in the

production line may cause inventory accumulation and downtime. It is important to

ensure that procedures carried out in bottlenecks are well coordinated while seeking to

improve efficiency in manufacturing.

Time Study

The purpose of the work study is then to analyze the manner in which an

activity is carried out, to improve and change the method of operation in order to reduce

excessive and inefficient work or to avoid a wasteful use of resources and to set a time

period for carrying out the task (Duran et.al, 2015). Time study is a technique of

determining the time, performing the task on the basis of duration, the work material,

16
prescribe process at a given level of performance, with due allowance for fatigue and

personal unavoidable delays. It is a direct and continuous monitoring of a task, using a

time-keeping device to record the time taken to perform a task, and is often used when

there are frequent short or long work periods (Starovoytova, D., 2017).

According to (Pisuchpen, R., and Chansangar, W. , (2014), upon picking the

work of interest, time study can be reviewed by 1) recording all the work details, 2)

divide the work into elements, 3) examination of these elements and sample size

determination, 4) use a stopwatch to record the time to perform each element, 5)

assessment of working rate, 6) conversion to simple time of the observed time, 7)

identifying the allowances and 8) identifying the standard time. Time study is primarily

about finding better ways to do things. This adds value and increases performance by

reducing unnecessary processes, avoidable delays and other waste types.

How-How Analysis

The How-How Diagram is used when a practical solution to a problem is

found. It functions by repeatedly asking: “How can we solve this?” (Saadeddin,n.d.).

This offers an important framework for planning and selection of possible options, as

well as the benefits and risks associated with each choice. There may be multiple answers

at each level to the ' How ' questions and the result is a hierarchical tree structure. The

aim of this diagram is to divide a task into concrete action steps while defining the person

responsible for the action. This diagram defines the necessary steps to complete the

solution. It is also used to identify the root causes of the problems, locate problems that

were not present before they had to be resolved. (“How-How Diagram”, 2015)

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Why-Why Analysis

Why-Why analysis is a method of finding and looking for the root causes of

the problem. The method name derives from the main question asked during the analysis:

Why? The Why-Why analysis method is frequently used during the DMAIC process

analysis phase and the PDCA activities plan phase. It is often used in coordination with

other analytical tools such as the Cause and Effect Diagram but can be used as a stand-

alone tool, too. When the answers come from people who have hands-on experience of

the process being examined, it is most effective. By driving down to the root cause of the

problem by repeating the question, "Why". (5 Why & 5 How: Root Cause Analysis,

2020)

SYNTHESIS

18
 The Review of Related Literature guided the researchers to deliver out this

study as it helped them acquire more knowledge and information about the variables that

need to be considered. Various articles and journals that are relevant to this research

provided them insights on how to effectively and efficiently address the problem.

Researchers have therefore gathered several journals and articles that can guide them

through this research.

According to Trojanowska et al (2018), how to organize the tasks in the

production line is one of the main problems in a manufacturing company. Due to changes

in process time and/or workstation failure, flow lines are usually disrupted. Such delays

cause the line to be idle, resulting in lower productivity. Low line performance implies

that there are areas of concern that need to be resolved in order to prevent additional

disruption to the overall production and profits of the company.

According to Yan et al (2009), Manufacturing systems are usually restricted by

one or more bottlenecks. Identification of bottleneck is a key factor to improving the

throughput of a production system. Kenyon et al (2014) stated that even if the product or

service is perceived as being of good quality, the inconvenience of not getting it in a

timely fashion reduces the customer’s since of value and often causes dissatisfaction.

With respect to internal customers, the higher the effectiveness and efficiency of the

production systems, the greater their sense of value and perception of quality. According

to Okoshi et al (2019), manufacturing strategy has an important role in business

competitive strategy, because it connects performance indicators to company goals.

19
Operations strategy is organized in performance objectives and decision areas constructs

that define its content.

The researchers have identified numerous tools and techniques that can help

them address the subject of this report. Line balancing is the most common tool used to

achieve the optimum state of a production line. Work Sampling is a statistical method

that is also used to measure the time spent by people in performing different tasks. The

method relies on the collection of information on ongoing activities at specific time

periods and is used in various areas of research. Furthermore, lean management is an

effective approach since it is specifically concerned with the elimination of waste in an

assembly line. Lean principles define the value of the product/service as seen by the

consumer and then make the flow in compliance with the customer’s demand and aim to

ensure consistency by continuously improving the management of waste by filtering out

Value and Non-Value Added Activity.

Methodology

20
In this chapter, the researchers addressed the sequence of steps taken toward achieving

this study’s objectives.

Figure 35.: Flow Diagram of the Development of the Methodology

Orientation and Initial Observation

The researchers were oriented by the HR Manager and IEs of ZFC about the

rules, regulations, and policies of the company. They have discussed the different

departments that can help the researchers through their study and pointed out the areas

where they can observe and focus on. The IEs also gave a plant tour to the proponents in

order for them to fully understand the process that is happening and appreciate the

21
importance of the study. The designation of areas was given to the researchers and

another day was allocated for them to make themselves familiar with the current flow

process. Initial observations were made upon looking at the process from start to end. The

researchers were also asked to take down their observations and present it to the IEs of

ZFC.

Analysis of the Current Process & Brainstorming

The researchers have seen several problems that can affect the production and

the efficiency of the line. They started analyzing the current process and looked for

factors that contribute to the slowing of the process. With the list of the initial

observations that the researchers have and with the help of IE tools like, work sampling,

and cause-and-effect analysis. The researchers were able to determine the problem that

the production is facing. Out of all the variants that are being produced in CIS 1 and CIS

2 they have decided to conduct a study about the Chocolate Dedication Cake (8x12),

because according to data given by the company that is shown in Figure 1.23 and Figure

1.34, this variant and size is the most in demand among the others and is the flagship

product of the company.

Identification of the Problem

The aim of this study is to improve the process efficiency of the Chocolate

Dedication Cake (8x12) product. Every procedure in the production line was assessed,

primarily, through evaluation of standard time. Observation was conducted to determine

how the tasks were performed. Primarily, the researchers analyzed and determined the

22
value adding and non-value adding activities within the production line. In line with

these, there were major processes and each was evaluated in order to establish the

standard time. Addition to that, every repetition of the process can be classified as non-

value adding activity. The elements of the (process) were assessed based on the

observation.

Data Collection

The researchers had studied the end-to-end process to identify the root causes

of the problem. Different data such as actual output collected by the researchers and

standard time, target output, target efficiency per workstation, units generated per hour,

and the company's target and actual process efficiency helped them to formulate the

problem statement and came up with ways on how the problem will be solved.

From the given target and actual output for the month of July to December that

the company has given, the researchers saw that the target was not reached thus, the

observation of the production line was conducted and the identification of the factors that

affect the process efficiency. The process efficiency was be measured as follows:

( Actual Output /hr )

Process Efficiency=
( Target Output /hr )

A time study was carried out to evaluate and verify the current record of the

operators' cycle times present in the line by the company. The Line Balancing analysis

23
was used to measure the workload levelling through all of the line operations. The

workstations are plotted against their takt time, and their corresponding times. Work

Sampling was also performed to determine which operation greatly contributes to the

idleness of the production.

Interpretation of Results

Factors which caused the low efficiency of the process were identified with the

use of (1)Time Study, (2)Why-Why Analysis, (3)How-How Analysis, and (4)Work

Sampling. The effect of the individual factors was determined to assess which factors

should be given priority.

Conclusion and Recommendation

Conclusions were taken on the basis of evaluated data and observed findings,

and proposed solutions to the problem. Based on the data obtained, the normal time is not

met because of the operators ' skills and because of the delay of raw materials, the aim

production is not reached. The findings were interpreted and analyzed using methods like

Why-Why Analysis and How-How Analysis to arrive at the conclusions and

recommendation

24
 Results and Discussion

Overview of the Present System

Zenith Foods Corporation (ZFC) is a commissary property of Jollibee Foods

Corporation (JFC). Jollibee Foods Corporation is a Philippine corporation dedicated to

fast-service restaurant development, operation and franchise. Zenith Foods Company,

also known as Zen8, concentrates on baking. Zen 8 is composed of 2 clusters. Cluster 1

has 3 areas: Preparation, Baking and Finished goods; while Cluster 2 has the Central

Icing Section (CIS) and the Creaming Area. CIS has three sections, CIS 1 and CIS 2 for

chocolate icing cakes and CIS 3 for white frosting cakes.

25
 Figure 64: Process Flow of Chocolate Dedication Cake (8x12)

Figure 64 shows the process flow of Chocolate Dedication Cake (8x12). In-

process base cakes are transported to the production line from the slabbing area to

continue the finished goods process. Base cakes will be moved from the crate onto a cake

board and placed on the conveyor for chocolate depositing. The automated depositing

machine covers just the top surface of the cake. There are four rectangular tables of two

staff each beside the conveyor who are in-charge for the spreading of chocolate icing

across the cake’s surface and making the physical appearance of the cake look great that

is why skills are also needed in making cakes. Once the icing has been spread, two

workers are assigned to place the top border of the cake and two other workers are

assigned to add the decorations around it. Next, to complete the presentation of the cake,

two workers must place the bottom border. One worker is assigned to place the cake in

the box at the end of the production line before finally placing it into the rack. Upon

completion of 56 boxes, the rack shall be transported to the metal detector area for

testing. Finally, qualified cakes are subjected to approval.

26
 Figure 4.17: Layout of CIS 1

Figure 75 show the layout of the workplace in CIS 1. The machines and

positions of tables for lines 4,5, and 6 are identical to the assembly line under study. The

total number of operators currently on the assembly line is 16 and their corresponding

tasks are shown.

TABLE 2Table 2
Required Manpower at CDC (8x12) line (per shift)

Task Required Manpower

CRATE 1
CHOCOLATE DEPOSITING 0
SPREADING OF ICING 8
TOP BORDER 2
BOTTOM BORDER 2
ACCESSORIES 2

27
 RACK 1
TOTAL 16

Table 2 shows the work assignments of the operators on Line 7. Basically, the

activities of these operators are to inspect and prepare the cake for the next operation.

Their tasks are mostly static, meaning it does not require the operators to move from one

place to another.

Figure 4.2:8. Line Balancing Chart of standard times per each workstation

Takt Time is computed as follows:

Total Time Available

Takt Time=
Total Customer Demand

79,200 seconds
¿
6,226units

seconds
Takt Time=12.72
units

28
 Target Manpower is computed using the formula:

Total Work Content

Target Manpower =
Takt Time

197.372 seconds
¿
12.72 seconds

Target Manpower =15.52≈ 16 operators

Figure 4.28 displays a line balancing graph and the data used for the diagram is

obtained from standard times given by current data from the company. The vertical bars

represents the time of each workstation, while the orange line represents the takt time to

match the time of the manufacturing process to the demand rate of the consumer. It can

be seen that the operation Spreading of Icing exceeded the Takt time line. The current

number of operators of Line 7 is 16 operators. Thus, these showed the line to be balanced

and the number of operators in line 7 is sufficient. A balanced line does not, however,

guarantee a larger output count.

Presentation of Findings and Results

The data collected from July 2019 through December 2019 will be used to

evaluate the company’s current problem. Given the data obtained from the Monthly

Production Report, the researchers calculated the Process Efficiency per month.

29
 Figure 4.39 : Monthly Output from July – December

Figure 4.39 shows the monthly actual and target output of Chocolate

Dedication Cake (8x12) for the months July to December.

TABLE 3Table 3
Monthly Actual and Target Outputs in the production of 8x12 CDC at CIS 1
AUGUS NOVEMBE
JULY SEPTEMBER OCTOBER DECEMBER
T R
TARGET 112,499 103,912 97,790 104,160 280,000 864,156
ACTUAL 88,560 85,112 60,171 78,307 170,608 581,876
VARIANCE (23,93) (18,800) (32,619) (25,853) (110,192) (282,280)
EFFICIENC
78.72% 81.91% 64.85% 75.18% 60.765 67.33%
Y
(Source: Zenith Foods Corporation)

The daily target output is 3,113 units as set by the company. The target process

efficiency is at 80% and as shown in Table 3, the target efficiency was hit only once

which is in the month of August with 81.91% and having the lowest efficiency in the

30
month of September with 64.85%.The table also shows the variances per month using the

formula:

Variance=|Target Output − ActualOutput |

The formula used for process efficiency and variance is time-based therefore,

actual output is based on the available time while the target output is based on the

standard available time.

Figure 4.410.: Process Efficiency per Workstation

31
TABLE 4Table 4
Process Efficiency Per WorkstationROCESS EFFICIENCY PER WORKSTATION
STANDARD TARGET ACTUAL EFFICIENCY PER
TIME (seconds) OUTPUT/HR OUTPUT/HR WORKSTATION
CRATE 4.844 283 255 90.93%
CHOCOLATE
3.415 283 235 88.65%
DEPOSITING
SPREADING
13.936 283 192 14.41%
OF ICING
TOP BORDER 2.987 283 184 16.32%
BOTTOM
5.726 283 184 33.84%
BORDER
ACCESSORIES 10.296 283 175 30.79%
TOTAL
45.038
CYCLE TIME
(Source: Zenith Foods Corporation)

Sample Computation for Process Efficiency of Crate:

255 units
Process Efficiency=
( 4.800 seconds )
×100
283 units
( 4.844 seconds )
Process Efficiency = 90.93%

Table 4 shows the actual process efficiency per workstation in the production

of 8x12 Chocolate Dedication Cake. Based on the graph shown in Figure 4.4 and

comparing the standard time with the actual time observed by the researchers, it was

determined that the spreading of the icing process has the lowest efficiency among all

operations, since the processes are sequential thus affecting the performance of the

subsequent workstations. As shown in Table 5, icing spreading has the highest percentage

contribution thus contributing to the low efficiency of processes.

32
TABLE 5Table 5
Percentage of% Contribution of each Workstation
Time Loss Unit Loss % Contribution
CRATE 42.19 152.92 0.08%
CHOCOLATE
37.59 136.25 0.07%
DEPOSITING
SPREADING OF ICING 1,361.06 4,933.86 2.64%
TOP BORDER 200.54 726.97 0.39%
BOTTOM BORDER 60.25 218.42 0.12%
ACCESSORIES 216.50 784.83 0.42%
RACK 41.01 148.65 0.08%

TABLE 6Table 6
Revenue Impact Analysis
ACTUA
TARGET TARGET ACTUAL REVENUE
L
OUTPUT SALES SALES IMPACT
OUTPUT
HOUR 283 ₱28,300.00 175 ₱17,500.00 ₱10,800.00
DAY 6,792 ₱679,200.00 4,200 ₱420,000.00 ₱259,200.00
MONT
203,760 ₱20,376,000.00 126,000 ₱12,600,000.00 ₱7,776,000.00
H
YEAR 2,445,120 ₱244,512,000.00 1,512,000 ₱151,200,000.00 ₱93,312,000.00

Assuming that the price per cake is at Php 100.00 the computation for revenue

impact per hour is:

Revenue Impact =( Target Output ×100 )−( Actual Output ×100)

Table 6 shows that with lower process efficiency, the line produces lower

output per given period of time. Based on the table, the company loses a revenue of

₱10,800.00 per hour or about  ₱7,776,000.00 per month or even ₱93,312,000.00 per year,

for not producing the standard output per hour. This needs to be addressed for the

company to become more profitable and to stay in the business for the long-run. This

33
production issue has to have an immediate action and solution as soon as possible, so that

loss is sales can be converted into generated revenue that will improve the company’s

profitability.

Figure 4.511: Why-Why Analysis Evaluating 8X12 CDC Production Line

Figure 4.511 shows a Why-Why Analysis done evaluating 8X12 CDC

Production Line at Central Icing Section (CIS). This analysis determined the root causes

of having a process efficiency of only 68.32%. As shown, some of the factors that occur

are the delayed in response time, unfollowed standard time, presence of non-value adding

activities, and machine downtime.

Problem No. 1: Delayed Response Time. The Why-Why Analysis shown in Figure

4.511 shows that the root causes of the factor delayed response time are inattentive

workers, and insufficient trainings given to operators. Checking the operators' different

activities indicates the lack of discipline in some operators when they are seen doing

34
irrelevant work rather than performing their duties and responsibilities during working

hours.

Table 7 shows that the average lost hours due to the delayed response time of

the worker is 75.54 hours in each month. These 75.54 hours are the reasons why the

company lost a total output of 21,377 boxes in a month as shown in the computation

presented.

TABLE 7Table 7
Data for Delayed Response Time of the Operator
Month Delayed Response Time (in hours)
July 74.31
August 64.44
September 81.41
October 84.57
November 80.12
December 68.39
Average 75.54

Total output lost due to delayed response time

283 cakes 75.54 hours

Total output lost ∈a month= ×
hour month

¿ 21,377.82 cakes

Table 8

35
Work Sampling in 8x12 CDC Production Line
Production of 8x12 CDC in Line 7
Duration (total
No. Cause of Idle Frequency
mins)
Incorrect depositor
1 5 24.82
machine program
Preceding operation
2 14 272.63
spends much time
3 Talking to co-worker 5 19.79
4 Operator’s personal needs 7 26.47
5 Turning of the conveyor 4 14.64
Total 35 358.35

Table 8 shows the summary of work sampling technique conducted by the

researchers on a single shift (6am-6pm), this shows the factors that contribute to the delay

of response time. As shown in the table, cause of idle no. 1 causes delay in the production

because of the inconsistency of the amount of chocolate icing the machine deposits.

Cases are, because the program is not set correctly, there are instances that the machine

over deposit and under deposit which leads to a rework. On the other hand, cause of idle

no. 2 which is as shown in the table greatly contributes to the productivity performance of

the line, this idle time happens specifically on the icing spreading station where huge

volumes of cake are piled up waiting for the spreading process. Because of that, it makes

the succeeding processes idle like the top and bottom bordering, putting of accessories,

and packaging process since these operations are cannot be performed without the whole

surface of the cake being covered with the required icing quantity and density, and

presentable appearance of the cake that is why skills are important. Cause of idle nos. 3

and 4 which are talking to co-workers and turning off the conveyor are unnecessary

activities of operators which also contribute to the process becoming idle. Cause of idle

36
no. 5 is workers’ personal needs, which obviously causes delay because workers have to

leave the production line for hygiene, toileting, medication, etc.

Problem No. 2: Presence of Non-Value Adding Activity. The Why-Why Analysis

shown in Figure 4.5 shows that the root causes of the presence of non-value adding

activity are the adjustment of conveyor settings depending on the speed of the operation

and the unnecessary motions done by the operators. In adjusting the conveyor, it is done

so that the pacing of the production line can accommodate the number of inputs on the

conveyor to be converted into finished goods. By doing so, production operations will be

idle for the setting up of the machine’s program. For unnecessary motions done by the

operators, these are chit chatting with co-workers, extended breaks, and offset breaks.

These activities make the workers leave the production line which affects the process

efficiency of the 8x12 CDC productions. One factor that contributes to these root causes

is the production facility layout. The current layout shows that workers cannot move

freely because the production area is too narrow, like the tables around the conveyor for

the chocolate spreading operations which occupy a huge space and block passageway.

Given that the layout is too narrow, process efficiency is being affected. Operations

become slower which leads to idle workers in the succeeding operations. With that

operators tend to roam around, chit chat/horseplay with co-workers, or take an offset

break. 

37
Table 9
Presence of non-value adding activity
Presence of non-value adding activity
Month
(in hours)
July 41
August 42
September 42
October 42
November 45
December 45
Average 42.83

Total output lost to the presence of non-value adding activity

283 cakes 42.83 hours

Total output lost ∈a month= ×
hour month

= 12,120.89 cakes

Table 10
Validation of root causes  
Root Causes Verification Method Findings Conclusion
The supervisors were
Training is usually
asked about the
performed upon hiring
Lack of performance of the
and follow-up training TRUE CAUSE
Training operators and how
is on request and is not
training is usually
conducted regularly
conducted.
Check and observe the There are unnecessary
Inattentive
activities being done by things done by the TRUE CAUSE
Workers
the operator. operator during work.

While waiting for the

Unnecessary
Through actual preceding process to be
Motion done by TRUE CAUSE
observation. done, workers tend to
the workers
do unnecessary tasks.

38
 The researchers identified possible solutions to the three root causes through

the How-How Analysis shown in Table 11 which assessed the factors affecting process

efficiency. The diagram shows the dominant solution would be acquiring new machines.

It can be shown that the usual approaches to root causes related to machines and

operators are good trainings, good human resource management implementation, addition

of new machines. Determining that total productive maintenance strengthens the

structures by facilities, procedures, and staff that add value to a company, the solutions:

preparation and application of effective human resource management can be viewed as

strategies for how to incorporate total productive maintenance.

Table 11
How-How Analysis for the Identified Root Cause
%
Root Causes How
improvement

Apply good
Monitoring the Provide needed
Lack of Human
operator's daily trainings to the 4.45%
Training Resource operators
activity
management

Requiring a Implement
Give incentives
Inattentive regular guidelines for
for good 1.70%
Workers activities Human
performance
report Resource

Requiring a Automate the

Unnecessary Monitoring the operations and
regular
Motion done by operator's daily improve 7.52%
activities workplace
the workers activity
report layout.

39
 There are various solutions suggested by the researchers, as seen in Table 11.

The Costs Benefit Analysis (Table 12) has been rendered to assess the best approaches

that should be introduced. Through this, the various advantages and drawbacks of the

proposed approach could be identified, as well as its approximate implementation

expense.

TABLE 12Table 12
Cost Benefit Analysis of the Proposed Solutions
Proposed Solution Advantage
Operators and workers
would be able to finish a
Training and Evaluation certain process faster that
for Workers will result to the decrease
of downtime and increase
in efficiency
Process will be automated,
therefore less time will be
Acquire New Machine
consumed in producing one
cake
Replacing the fixed
Chocolate Depositing
Change in Workplace
Machine with a movable
Layout
machine will increase the
speed in doing the task.
Disadvantage
Additional cost of 20,000
will be incurred for the
training and revaluation of
workers
Additional cost ranging
from ₱500,000 to
₱900,000 will be incurred
yearly for every machine
that was purchased.
Additional cost of ₱50,000
will be incurred for the
dismantling of the current
machine in 4 production
lines.

After reviewing the cost benefit analysis, the researchers also found that the

optimal approaches that could potentially be applied are the procurement of new

equipment and employee training and assessment.

Solution No. 1: Training and Evaluation for Workers. Figure 4.511 indicates that

most of the factors that can affect the process is due to the lack of training for the

40
workers. Additional training and regular assessments can help them sustain the standard

duration of the cycle and will help them improve it further.

According to Eneh, et al. (2015), it is assumed that trained and skilled workers

will be put in suitable roles for each business-oriented organization to meet the job

requirements of the organizations. From the interview in a firm, it was mentioned that the

company has faced challenges of inefficiency and low productivity on the part of

employees. This is perceived as a result of the inability or failure of the organization to

properly train employees in the work they are engaged in. In conclusion of the study, job

training leads to job satisfaction and high performance of workers. Human relations have

arisen as a result of this failure to fully appreciate the human being as a major factor in

organizational effectiveness. When management pays special attention to workers,

efficiency and productivity are likely to increase, regardless of the actual changes in

working conditions. As a result, training the worker properly and achieving high

efficiency and productivity will be achieved.

The workers that will retrain, they will undergo a training program that will

only take two days. Employees will not be marked as absent but will be listed under the

retraining program.

41
 Figure 4.612.: Evaluation Form Sample

The figure above shows the sample of the evaluation form that will be used to

track the progress of the employees under the re-training program. Each worker will

42
need to submit the evaluation form with the evaluator’s signature to their respective line

supervisors to prove that they undergo the training program. The worker should have an

average score of 4 to pass the program, if the employee was not able to perform well,

they will be given an additional half day to retake the evaluation. If after 3 evaluations the

worker still didn’t achieve the required score, they will be reassigned to another

production line.

Solution No. 2: Acquire New Machine. Due to the delay of the process caused by the

spreading of the icing and the Unnecessary Motion done by the workers, acquisition of

BD9 depositing machine was recommended. This machine is an advanced machine that

deposits liquid and semi-liquid products with great accuracy. It will improve the process

in the production line in a big way for it will reduce manual operations which causes

delays in the production. Also, the productivity rate will increase as well as the efficiency

of the process.

Figure 4.713.: BD9 Machine

43
 BD5 Machine acquisition was also recommended because it should aid in the

bordering process, as it is a high-performance pump and depositing unit. Icing depositing

is performed straight from a mixing tub, removing the manual putting of icing in the

piping bags which will make the operation smoother as well.

Figure 4.148.: BD5 Machine

Solution No. 3: Change in Workplace Layout. The acquisition of the machines that is

stated on solution 2 will not only increase the efficiency of the process but will also affect

the area layout. The change in layout will have an impact to the time and motion of the

worker thus the efficiency. The room would provide more space as the tables are gone,

because the machines that were bought are all stand-alone, making it easier for the staff

to push around and adjust the position of the machines.

44
 Figure 4.915.: Proposed Layout

Table 11 shows a How-How Analysis done evaluating 8x12 CDC Production

Line at Central Icing Section (CIS). After analyzing, it is determined that the main root

causes of having a low process efficiency lack of training, inattentive workers, and

unnecessary motion done by the workers. In response, the solution of the researchers are

(1) to acquire machines, (2) to re-evaluate their workers and retrain if needed because

according to Nassazi (2013), organizations need to be conscious of the critical

importance of Human resources to fulfil their goals. With these, the production of the

company will run smoothly at the same time reducing the costs yet having a larger profit

and (3) to change the workplace layout to increase the efficiency.

45
TABLE 13Table 13
%Percentage of Improvement of Each Solution to Icing Spreading Workstation
Actual Target
Proposed Units %
Output Output
Solution Saved Improvement
(units) (units)
Training and
Present 177,439
Evaluation for 259,720 15,970 6.15%
Proposed 193,409
Workers
Acquire New Present 177,439
259,720 15,970 6.15%
Machine Proposed 196,957
Change in
Present 177,439
Workplace 259,720 3,549 1.37%
Proposed 180,988
Layout

Units Saved=Proposed Actual Output −Present Actual Output

Unit Saved
% Improvement= × 100 %
Monthly Target Output

After evaluating the cost benefit analysis and the percentage improvement of

each solution, the researchers found that all proposed solutions would contribute to a

13.67 percent increase in process efficiency. One can see the effect of the three solutions

presented in Table 13.The impact of the three proposed solutions can be seen in Table 13.

TABLE 14Table 14
Increase in Revenue after implementation of Solutions
Current Workstation Workstation Efficiency Total
Increase in
Efficiency for Icing after Implementation Units
Revenue(annual)
Spreading of Solutions Saved
14.41% 28.08% 35,489 ₱ 3,548,900.00

*Assuming that cake is at Php 100 each

Current Process Efficiency ∈Icing Spreading=14.41 %

Increase ∈Process Efficiency=6.15 %+ 6.15 %+1.37 %

= 13.67%

46
 Process Efficiency After Implementation of Solutions
¿ 14.41 %+13.67 %
=28.08%

Units saved after Implementation=35,489 units

Increase ∈Revenue=Units saved ×₱100/unit

= 35,489×₱100
= ₱3,548,900.00

The computation and table above show the increase in revenue that will be

incurred annually after the proposed were implemented. This shows the efficiency of the

icing workstation alone therefore, improvements on other workstations can further

increase the process efficiency and revenue of the company.

Conclusion

47
 In order to accomplish this study in Zenith Foods Corporation, a background

study was conducted in order to understand the flow of the process involved, and to

determine the problem/s experienced by the company. By analyzing the ZFC’s Central

Icing Section’s 6-month period data, the researchers assessed and identified the factors

that contributed to the problem. Several industrial engineering tools were used for further

analysis. The researchers have determined that the factor that has contributed in particular

to the low process efficiency in the production line of 8x12 Chocolate Dedication Cake is

the Lack of Training, Inattentive Workers, and Unnecessary Motion done by the workers

that causes to have low efficiency in the operation. These elements cause operation

delays which greatly affects the number of outputs produced. According to the gathered

data, the process efficiency of CIS during the period of July to December 2019 have not

reached the 80% targeted process efficiency set by the company. 

The process can be improved by recommending solutions that could reduce

inefficient times, through in-depth observation and analysis of the factors affecting the

process efficiency of 8x12 Chocolate Dedication Cake and determining the standard time

of the lines. Moreover, after analyzing the data, the researchers come up with the possible

solutions that will help the company to improve and attain their target process efficiency.

One of the solutions is to monitor the worker 's skills, since they play a major role in the

production line. Based on observations, the skill level of the workers differ by a big

margin and it shows evidently in the process of spreading the chocolate icing which

reflects to be the cause of low efficiency of the operation. As a solution, training and

seminars will be given to the workers enabling them to hone their skills and to hire more

competent workers which will lead to a better work performance. The purchase of new

48
 and advanced equipment is also one of the alternatives proposed by the researchers as,

based on observations, there are occasions in which the operators change the conveyor

settings due to the slow manual service, resulting in a pause in the process. Such

problems should be lessened with the advance technology that is imposed on the process

thus, not only efficiency but also the revenue of the company will increase as shown in

Table 1415.

 
TABLE 15Table 15
Increase in Efficiency after implementation of Solutions
July August September October November December Total
Target 112,499 103,912 92,790 104,160 280,800 864,156 1,558,317
Actual 88,560 85,112 60,171 78,307 170,608 581,876 1,064,633
Recomputed
Output
100,666 96,747 68,396 89,011 193,930 661,418 1,210,169

Current Process Efficiency ∈Icing Spreading=68.32%

1,210,169
Process Efficiency After Implementation of Solution= ×100
1,558,317

= 77.66%
Recomputed output =Actual Output + ( Actual Output × Increase ∈Process Efficiency )=88,560+ ( 88,560× 13.67
¿ 100,666 units

After all the observations and evaluation made, the researchers have identified

the Delayed Response Time and Presence of Non-Value adding Activities are the factors

that contributes to the low process efficiency and they have further tracked that the root

causes are the lack of training of workers, their inattentiveness, and unnecessary motions

done.

49
 The researchers provided solutions that can improve the process efficiency and

that is; (1) It is necessary for the company to provide appropriate training to employees

and operators so that they can develop their knowledge and skills especially in terms of

technicalities, (2) the company may consider investing in advanced machine technology

that can help their employees and make the process faster, and (3) the change in

workplace layout, for this will also improve the time and motion of the worker thus, will

also increase the process efficiency.

The researchers were to achieve this study’s objective of increasing the line’s

process efficiency from an of 68% to 75%. This will further improve the monthly

revenue by ₱1,722,420.00 and increase the annual sales by ₱20,669,040.00.

Recommendation

To further increase the process efficiency of the line, further studies and project

can be undertaken. There are several recommendations that were given by the researchers

50
and these include; (1) Zenith Foods Company actually has only a few number of

industrial engineers. We suggest that additional industrial engineers be employed so that

more people can operate on process improvements in the plant and more people can focus

on overseeing Zenith Foods Corporation's processes and operations; (2) Company may

consider providing bonuses to those employees who exhibit excellent performance to

motivate everyone to do their best and do their job to the best of their abilities; (3) The

company must implement productive maintenance specifically the machines so that

occurrence of certain problems could be prevented. The current study has achieved the

efficiency of 77.66% and these further recommendations may finally breach the 85%

efficiency or even higher.

Appendices

Data for Non-Value Adding Activities

51
 Data for Delayed Response Time

52
 Revenue Impact

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