Improvement of Compounding Process at Wyeth Philippines Inc.

PROCESS IMPROVEMENT
Improvement of Compounding Process at Wyeth Philippines Inc.
A Project Study
Presented to the Faculty of the
College of Engineering and Technical Department
Manuel S. Enverga University Foundation
Lucena City
In Partial Fulfilment of the Requirements
for the Degree of
Bachelor of Science in Industrial Engineering
Expanded Tertiary Education Equivalency and Accreditation Program
by
Ariel B. Bueno
March 2016
PROCESS IMPROVEMENT 2
Approval Sheet
This project study entitled:
“Improvement of Compounding Process at Wyeth Philippines Inc.”
prepared and submitted by Ariel B. Bueno in partial fulfilment of the requirements for the degree
of Bachelor of Science in Industrial Engineering (ETEEAP) has been examined and is hereby
recommended for acceptance and approval for Final Examination.
Engr. James Louie R. Meneses
Adviser
Approved by the Committee on Oral Examination with a grade of ________ %.
Guillermo M. Rago Jr., Ed D., CE
Chairperson
Engr. Gervin S. Espinosa Engr. Luzviminda D. Sinapilo
Member Member
Dr. Benilda N. Villenas
Member
Accepted in partial fulfilment of the requirements for the Bachelor of Science in
Industrial Engineering (ETEAAP).
Guillermo M. Rago Jr., Ed D., CE

Dean, College of Engineering and Technical Department
Date: _________________
Acknowledgment
This research study was inspired foremost by the blessing of Almighty God and
individuals and institutions worth mentioning for their invaluable assistance, cooperation and
support all through to the completion of this study. The researcher would like to express his
sincere gratitude to the following:
To his family, that although they are miles away he knew their constant prayers and
moral support had conspired to push him through and finish this study.
To the adviser, Engr. James Louie R. Meneses, for his profound knowledge, patience,
assistance, enthusiasm which were huge help so that this study may genuinely consider as
scholarly endeavour.
To Dean Guillermo M. Rago Jr., who always reminds us not to quit and keep on going.
To Engr. Gervin Espinosa and Engr. Luzviminda Sinapilo for their encouragements, suggestions
and constructive reproofs as panellists. The same gratitude is given to Dr. Benilda N. Villenas for
her motivating talks and orientations which gave the researcher hope, strength and
enlightenment.
To the managers and supervisors of Wyeth Philippines Inc. who have been lenient in
permitting and approving filed vacation leaves. A special mention goes to Sir Marlon Vargas, the
PPU director, for wholeheartedly permitting the researcher to pursue the present degree.
To Engr. John Paul Javier who had been helpful by sharing his expertise and insights in
data presentation and analysis of the present study.
To the University of the Philippines Los Baños and the librarian for welcoming and
letting the researcher conducts its research for related literature and studies.
To others not mentioned but have in many and little ways helped in the realization of this
study. The Researcher

Dedication
“Our greatest weakness lies in giving up. The most certain way to succeed is
always to try one more time.”
- Thomas A. Edison
This project study is affectionately dedicated to my father who once believed to
the ability, determination and big dreams of his son. This is the fulfilment of
my dream that I should be telling you to be proud of me once more, even
more.
I know, wherever you are right now, you are expressing the same altitude of
happiness as me knowing what your favourite son
is about to achieved.
To my mother who has been serving as an inspiration, a blessing and a reason
why I should keep chasing my ambitions.
To my professors, classmates, and colleagues who had shared their talents, time
and efforts and accompanied me to another
memorable journey of my life.
And above all,
to the Almighty God for with His love and guidance
I was able to achieve this goal.
Ariel B. Bueno
Table of Contents
Title Page…………………………………………………………………………………….……1
Approval Sheet ……………………………………………………………………………………2
Acknowledgment………..………………………………………………………………………...3
Dedication ………………………………………………………………………………………...4
Table of Contents …………………………………………………………………………………5
List of Tables ……………………………………………………………………………………..7
List of Figures …………………………………………………………………………………….8
Abstract …………………………………………………………………………………………...9
Unit I. Introduction……………………………………………………………………………....10
Background of the Study …………………………………………………………..........10
Objectives of the Study ………………………………………………………………….12
Conceptual Framework ………………………………………………………………….12
Scope and Limitations …………………………………………………………………...14
Significance of the Study ………………………………………………………………..15
Definition of Terms ……………………………………………………………………...16
Acronyms ………………………………………………………………………………..20
Unit II ……………………………………………………………………………………………21
Unit III. Methods and Procedures ……………………………………………………………….42
Research Design …………………………………………………………………………42
Research Environment …………………………………………………………………..43
Procedures ……………………………………………………………………………….43
Design Concepts ………………………………………………………………………...49

Unit IV. Results and Discussions ………………………………………………………………..52
Data Gathering …………………………………………………………………………..52
Data Analysis ……………………………………………………………………………63
Design of Improved Process …………………………………………………………….70
Development of the Improved Process ………………………………………………….79
Evaluation ……………………………………………………………………………….83
Summary of Findings ……………………………………………………………….......90
Unit V. Conclusions and Recommendations ……………………………………………………92
Conclusions ……………………………………………………………………………...92
Recommendations ……………………………………………………………………….93
References ……………………………………………………………………………………….95
Appendices ………………………………………………………………………………………97
A. Survey Form …………………………………………………………………………97
B. Project Gantt Chart ………………………………………………………………….99
C. Transmittal Letter …………………………………………………………………..100
Curriculum Vitae ………………………………………………………………………………101

List of Tables
Table No. Title Page
1 Modified Likert Scale ………………………………………………….........48
2 Average Compounding Time versus Average Processing Time ………........56
3 Wet Process 2 Asset Intensity from January to September 2015………....... 58
4 Forecasted Product Run of Selected Milk Products for 2015…………........ 62
5 Existing Operating Parameters during Compounding Process ……………...63
6 Validation of Root Cause ………………………………………………........65
5 Why Analysis....…………………………………………………………….. 68
8 Comparisons of Default vs. Manipulated Operating Parameters of BPS…….71
9 Comparisons of Default vs. Manipulated Operating Parameters of BML…...71
10 Comparisons of Default vs. Manipulated Operating Parameters of Bkd…….72
11 Comparisons of Default vs. Manipulated Operating Parameters of PGG.…...73
12 Comparisons of Default vs. Manipulated Operating Parameters of Pkd …….74
13 Most Effective Operating Parameters of Selected Milk Products………........75
14 Improved Asset Intensity Rating…………………………………………......83
15 Percentage Reduction of Agitator Motor Power Consumption ……………...84
16 Agitation versus Power Ratio………………...……………………………….85
17 Saved Power Cost Computation per Compound ………………………….....86
18 Cost Computation per Kg of Milk Powder…………………………………...87
19 Survey Result ………………………………………………………….......... 89

List of Figures
Figure No. Title Page
1 Conceptual Paradigm ……………………………………………………………13
2 Current Operation Process Chart of Wet Process 2 ……………………………..53
3 Current Compounding Process Chart …………………………………………...55
4 Present Compounding Flow Chart ………………………………………………59
5 Fishbone Diagram ……………………………………………………………….64
6 Proposed Flow Process Chart …………………………………………………...78
7 Improved Compounding Process Chart …………………………………………82

Abstract
Ariel B. Bueno “Improvement of Compounding Process at Wyeth Philippines Inc”.

Unpublished Project Study for the degree of Bachelor of Science in Industrial Engineering,
College of Engineering under the Expanded Tertiary Education Equivalency and Accreditation
Program (ETEEAP), Manuel S. Enverga University Foundation, March 2016.
The recurring failure of Asset Intensity attainment at Wyeth Philippines Inc. has justified
the need for improvement of compounding process. The study focused on determining the most
effective operating parameters during compounding process that would replace the default ones
and thus improve the process by reducing the compounding time duration.
Through the employment of research and development type of research, the researcher
had designed and developed an improved compounding process which was believed to be the
primary solution to the problem at bar. The use of flow chart and flow process chart has exposed
the areas where improvements were exceptionally necessary. The fishbone and 5 why analysis
were very functional in the analysis of possible root causes and their validation as true root cause
of the problem. By means of these engineering tools, the researcher has come up with the design
of the improved compounding process which tackled more on the reduction of compounding
time. The most effective operating parameters being sought for in this study were identified
through manipulations of two default parameters: percentage speed of pump motor and
percentage speed of compounding agitator motor.
The present project study has faced scrutiny of the respondents through survey
questionnaire. The respondents were supervisors and operators of Wet Process 2 (WP2). The
highly satisfied overall rating of the respondents was implicative of the success of the present
study in addressing the recurring failure of asset intensity attainment in WP2.
Keywords: Process improvement, asset intensity, operating parameters, compounding process

Unit I
Introduction
This part will give overview of the problem of the study by which the discussions were
supported by facts. It is in this part also that the significance of the present study to various
beneficiaries, the conceptual framework and its paradigm, the scope and limitation, definition of
terms and acronyms were presented.
Background of the Study
The rational analysis of workflows and the attempt to maximize the efficiency of the
process have been in existence as early as 1880’s. The revolutionary concept of identifying the
problems of waste and inefficiency can be credited to the so called “efficiency movement” which
sought to place the emphasis on the use of scientific research and economic principles of
efficiency and utility maximization to ensure that government and industry work to their
potential.
A business to be called efficient it must be able to manufacture products, offer services
and meet their goals with the minimum effort, expense or waste. This allows them to allocate
more resources to research and development, reduce costs and increase profit margins. This
necessitates businesses to identify key performances and productivity factors and ensure that
these are periodically measured and evaluated.
Wyeth Philippines Inc. (WPI) is a food manufacturing company which specializes in the
manufacture of infant formulas. It mainly caters to consumers in the Philippines but has been
exporting products to Indonesia just recently. The manufacturing plant is located in Bo. Pittland ,
Canlubang Industrial Estates, Cabuyao, Laguna. WPI is a subsidiary company of Nestle and
takes commands from main Nestle bureau at Vevey, Switzerland.
The acquisition of Wyeth Philippines Inc. by Nestle on 2012 brought remarkable
realignment of business operating metrics. Wyeth’s typical monitoring of line efficiency through
overall equipment effectiveness (OEE) has been realigned now to Nestle’s Asset Intensity (AI).
The latter has a broader scope so that efficiency measurement will not be limited to packaging
lines, which is normally where the point of measuring line efficiency is, but also traces back and
inclusive to all initial processes that each can of milk has undergone. Asset intensity compares
the good production the line or process produced to the theoretical good production it should
have produced at the nominal speed during the time it was occupied. The intent is to maximize
the consistency and efficiency of the lines or processes by addressing their losses. In fact, the
enthusiastic search for baseline data for Wet Process 2 last year (2014) has prompted
management to set it at 56.8% for this year 2015.
There were instances already in WP2 where the efforts to attain target AI failed.
Variations and inconsistencies of the results were rampant. The plant performance for instance
for the last seven months of 2015 portrayed inferior show of asset intensity attainment. Wet
Process 2 only achieved the target (AI >/= 56.8%) for the months of February (59.2%), March
(67.1), May (60.5), June (57.9) and August (73.8) while the rest failed. This was the problem that
the present study promises to correct through improvement of compounding process. The
reduction of compounding time improves the AI and makes the attainment of it as consistent.
It is a huge threat to the continuance of Wyeth Philippines Inc.’s operation as a whole.
Nestle is never proud of its subsidiaries performing below standard.

Indeed, the inconsistent attainment of Asset Intensity at WP2 Wyeth Philippines Inc. is a
problem that needs to be addressed and the present researcher will prove to solve this problem by
improving the current compounding process.
Objectives of the Study
The main objective of this study is to design and develop the improved compounding
process at Wyeth Philippines Inc.
Specifically, this study will seek answers to the following objectives:
1. To design an improved compounding process at Wyeth Philippines Inc.
2. To develop the improved compounding process.
3. To evaluate the improved compounding process in terms of efficiency,
effectiveness and cost.
Conceptual Framework
This study made use of the Input-Process-Output (IPO) model to show the relationships
between input and output elements which comprise the conceptual framework of the study.
Figure 1 illustrates the IPO framework and it shows what inputs were needed which will
undergo processes to arrive at a desired output.
The inputs necessary for the study were the following: relevant data retrieved from
systems applications (SAP), process logbooks, existing procedures of compounding process and
the operating parameters per infant formula.
The process phase started from data gathering and analysis of the data gathered. These
data were made the bases to support the hypothesis that there exists a problem and a root cause
must be determined. The data gathering was done by means of retrieval of data from computer
database, revisit of process logbooks, observation and actual manipulation of operating
parameters of compounding process and interview. These data were of great help in the
development of the efficient compounding process in Wet Process 2. This development should
address the problems of variations of duration of compounding process which affect the asset
intensity (AI). It was in this phase that industrial engineering (IE) tools would be useful. Finally,
the last process was the evaluation to determine the efficiency, effectiveness and cost of the
proposed improvement. .
.
.
INPUT PROCESS OUTPUT
1.Retrieved data from 1.Research and

computer database Development Improved
(SAP) Compounding
Process at WP2
2. Data Gathering and
2.Process logbooks Analysis Wyeth Philippines
Inc.
3.Existing 2.Design of Improved
compounding Compounding Process
procedures
3.Development of the
4.Operating parameters Improved
per infant formula Compounding Process
5.Knowledge in 4.Evaluation
process improvement
6.Knowledge in
Operations
Management
7.Knowledge in
RootCause Analysis
Figure 1. Conceptual paradigm

Scope and Limitation
This study was mainly focused on the consistent attainment of target AI for wet process 2
through the development of an efficient compounding process by establishing standard operating
parameters for each identified infant formula.
Compounding process is said to be efficient if it is done within the runtime, does not
incur delays and is instrumental to achieving the target asset intensity. The researcher has two
variables to work with, one is the agitation speed during compounding and the other one is the
pump speed. If these variables are adjusted or fine-tuned, favourable results will be achieved.
Simulations therefore are necessary.
The infant formulae which were the subject of this study were identified by determining
its compounding characteristics. Usually these products exhibited long duration of compounding
time and were most of the time exceeding the normal runtime. These are considered as hard-to-
produce formulas in Wet Process 2. Seven infant formulas were objectively identified as hard-to-
produce (Bonakid, Promil kid, etc.) but only five of them will be part of the actual study. The
two formulas namely, Progress Preschool and Promil Preschool were not included in this study
due to the following constraints: firstly, there were no data for these products that can be
retrieved from SAP. While the data which can be retrieved from process logbooks were
considered irrelevant data with respect to Asset Intensity. The inception of asset intensity as key
performance indicator was only on March 2014. Data gathering should at least commence from
the said inception date up to present in order to give relevancy to the data gathered with respect
to the anticipated output of this study; secondly, these were seasonal products that during the
time asset intensity was launched, there were no forecasted run for these products, and hence it
was impossible for data to be produced. In other words, only those identified formulas whose
data were readily retrievable from SAP and process logbooks were included in this study. To
enumerate, these infant formulas are the following: Bonakid, Promil Kid, Progress Gold,
Bonakid Pre-school and Bonamil.
Significance of the Study
The researcher believed that this study was a great benefit to the following:
Company. The present study was instrumental in the attainment of the set asset intensity
(AI) for Wet Process 2. If this AI target is consistently met, Wyeth key performance indicator
(KPI) also will be met. This study eliminates unnecessary delays in compounding process
(expressed as speed loss in AI) and at the same time makes the process more efficient by
conforming to the required nominal speed. This makes the machine (asset) run more efficiently.
Wet Process 2 Operators. By having a set of operating parameters guidelines at hand
for hard-to-produce infant formulas the tasks of operators will be eased. Operating parameters
will be made common across all crews (Crew A, B, C, D) and thus optimized quality outputs
become deliverable. Operators will not be bothered anymore of determining what the best
operating parameters for specific formula are.
Wet Process 2 Supervisors. If smooth compounding process for those identified
formulas is achieved, consistent product runs with respect to runtime will become attainable. If
consistency for each product run is already achieved, forecasting for the supervisor becomes
more accurate.
Production Planning Inventory and Control (PPIC). Once consistent runtime of the
identified formulas is already met, forecasting and scheduling of process orders (PO) for WP2
becomes smoother.
Process Engineers. A study that is focused on process efficiency improvement is of great
interest to the process engineers. This study serves as baseline for future improvement projects.
This also serves as basis for further analysis of compounding process.
Researchers. The discussions, findings and recommendations of this study are of huge
benefit to future researchers. These may be used as guides in elaborating their study and as
reference for studies of similar nature and approach.
Definitions of Terms
The following terms were defined conceptually and operationally for a comprehensive
and clearer understanding on how these terms were used in the study.
Asset Intensity is a key performance indicator that aims to maximize the consistency and
efficiency of the process or line by addressing their losses. It is expressed in percentage.
Bottleneck is the production line process that accumulates the longest queue. Also,
a bottleneck is one process in a chain of processes, such that its limited capacity reduces the
capacity of the whole chain. In Wet Process 2, the bottleneck is the processing line (HTST).
Breakdown (Technical breakdown) is unplanned stoppage due to a technical reason that
prevents production. This needs intervention of a mechanic or electrical employee. It will

normally require a spare part and usually a work order will be created. Duration is always more
than 10 minutes.
Cleaning/Inspection/Lubrication are activities during and at the end of production
periods, including dismantling equipment and general sanitation.
Changeovers are planned stoppage that means to change from one product to the next,
including cleaning, setting-up and starting-up (time between the last good product from one run
and the first good product of the next run (lost time of the Bottleneck)). Changeovers are often
further split into 2 different types: format changeovers (done for many products) and product
changeovers (done for one product only).
Compounding process is the process of combining powdered raw materials (skimmed
milk) with water, fat and minerals. Compounding is done in a tank with agitator in order to mix
well the compounds. There is a recirculation of mix back and forth the tank through pumps.
Good Production Time is the time to produce the good products at nominal speed. Good
production equals quantity of product complying with quality specifications.
Key Performance Indicator is a business metric used to evaluate factors that are crucial to
the success of an organization. Asset intensity (AI) is one of the KPIs of Wyeth Philippines Inc.
Idle time is the time during which the line is physically capable to produce, but it is not
required for production as there are no volume/scheduling requirements. Examples are
weekends, holidays, or 3rd shift for an operation that is running two shifts, when no other
activities are taking place

Machine / Process waiting is an unplanned stoppage due to external factors (external to
the line itself) such as waiting for materials, utilities or resources like raw materials and
including operators. It is different from “not occupied due to planning decision” as this case the
shortage of resources was not anticipated and planned for.
Minor stops are short unplanned stoppages with duration less than or equal to 10
minutes. Usually due to blockages / jams, dirty sensors etc. For simplicity, when automatic
stoppage acquisition systems are not implemented, Minor Stops can be captured on the line by
counting the number of stops and estimating the time lost for them.
Occupied time is the time during which the line is either occupied to produce or is
occupied with any other activity while not producing (e.g.: e maintenance, repair, training), or is
not physically capable to produce (e.g.: line waiting for a spare part). Operationally it is ‘Total
Time’ minus ‘Not Occupied Time’.
Operational stoppages are stoppages imposed by the process, equipment or quality checks
(typically label roll change, but also date / lot code change, knife change, filter cleaning,
sampling). The operational stoppages are classified as planned stoppages since a standard
duration and a standard frequency exist for them. The exact timing for the execution of the
activity is often not planned (as for example reel changes that occur during the shift as the
packaging material is being used by the machine).
Planned maintenance is a planned stoppage for planned maintenance and repair activities,
including annual maintenance shutdowns and planned maintenance carried out on weekends that
have occupied the line so that production is not possible.

Process failure is unplanned stoppage due to failure in the process such as changes in
material properties, operator error, defective raw materials, unplanned cleaning. Duration is
always more than 10 minutes.
Process Performance Indicator (PPI) is an indicator which is associated to each one of the
4 operational losses of reliability. The purpose of measuring these losses as standard PPI’s is to
provide simple and actionable measures to address operational losses and drive reliability.
Production time is time during which the line is actually producing. Operationally, it is
‘Runtime’ minus ‘Unplanned Stoppages’.
Production time at nominal speed is time used to produce products (both good and
defective) at the nominal speed. To compute this, we have ‘Production Time’ minus ‘Speed
Loss’.
Runtime is time during which the line is intended to produce. Operationally, it is
‘Occupied Time’ minus ‘Planned Stoppages’.
Speed loss is time lost because of the line operating at less than the nominal speed, due to
a process, technical or human issue.
Start up/ Shutdown is a planned stoppage for mechanical or operational adjustments
required to prepare a production line to produce or to stop (e.g. re-assemble equipment,
check/adjust settings). Also included here is the time required to fill-up (or empty) the line, that
is required when the line is not running continuously (for example one shift).
Systems Applications Product (SAP) is a system that provides users with a soft real-time
business application. It contains a user interface and is considered extremely flexible. All Wyeth
transactions with respect to Asset Intensity are done through this system.
Total time is the entire time in the period considered (e.g. 1 shift=8h, 1 day=24h, 1
week= 7days= 168h, 1 year=365 days =2555h, etc).
Acronyms
AI- Asset Intensity
FBT- Fat Blend Tank
HTST- High Temperature Short Time
IE- Industrial Engineering
IPO- Input Process Output
KPI- Key Performance Indicator
PPI- Process Performance Indicator
PO- Process Order
OEE- Operational Equipment Excellence
SAP- Systems Applications Products
WPI- Wyeth Philippines Inc.
WP2- Wet Process 2

Unit II
Review of Related Literature and Studies
This unit presents and synthesizes several literatures and previous studies that have
relevance on the present study. These different resource materials were sought, reviewed,
compared and contrasted with the present study to seek areas for possible improvements.
Operations Management
Almost all organizations have one or more departments that are concerned with
operations, but often the term operations are not used. Instead, we might call these departments
manufacturing, materials management, purchasing, merchandising, field service, or other names.
Generally operations departments are responsible for a large portion of the assets of the firm and
a large share of its employee base. Furthermore, decisions made in the operations function have a
strong impact on customers and financial results, meaning that operations management affects
marketing, accounting, and financial performance. Consequently, management performance in
the operations departments in an organization has strong impact on the performance of other
departments and on the performance of the overall organization.
Operations Management (OM) is the business function responsible for managing the
process of creation of goods and services. It involves planning, organizing, coordinating, and
controlling all the resources needed to produce a company’s goods and services. Because
operations management is a management function, it involves managing people, equipment,
technology, information, and all the other resources needed. Operations management is the
central core of every company. This is true regardless of the size of the company, the industry it
is in, whether it is manufacturing or service, or for-profit or non-profit (Sanders, 2013).

Time and Motion Study
Time and motion study (also referred to as motion and time study, the terms are used
interchangeably) is the scientific study of the conservation of human resources in the search for
the most efficient method of doing a task. A fascination with the word “efficiency” began in the
late 19th and early 20th centuries when it was considered one of the most important concepts.
Time study began in the 1880s as a means of wage-rate setting by Frederick W. Taylor, who is
regarded as the “father of scientific management.” It consists of a wide variety of procedures for
determining the amount of time required, under certain standard conditions of measurement, for
tasks involving some human activity. Motion study was developed by Frank B. Gilbreth and
Lillian M. Gilbreth and consists of a wide variety of procedures for the description, systematic
analysis, and means of improving work methods. It is difficult to separate these two aspects
completely. Therefore, the combined term usually refers to all three phases of the activity:
method determination, time appraisal, and development of material for the application of these
data. Frank and Lillian also broadened scientific management by including the human element,
therefore using psychology to gain the cooperation of employees. Motion and time analysis
could be used to help find a preferential way of doing the work and could assist in effectively
managing or controlling the activity. This approach has been successfully applied to factories,
hospitals, department stores, housework, banks, cafeteria work, libraries, music, and to many
other human activities. For instance, factories have used it to reduce wasted time and improve
the time to compete a task, while banks use it to help team members reach their sales goals.
However, the goal of a time and motion study is not simply efficiency. These studies are done to
create a baseline that can be used in the future when evaluating procedural, equipment, or
personnel changes. The goal can be to understand the skills required to enable individuals to
perform the work and, thus, to provide the correct training. Another may be to reduce the
discomfort experienced, especially in the case of surgical procedures—a goal such as this,
namely, to create less tissue damage, may run counter to efficiency. In the case of athletes, the
goal may be faster speed or more endurance, which may be achieved not necessarily by the most
efficient way (Harper and Mousa, 2013).
Time and motion study according to Bon and Daim (2010) is the important aspect in
business to determine the production rate. Another factor’s that effect the production rate is raw
material, operation cost, work force and others. All this factors will effect differently to each
other. Even though, time is the most influence element this rate. Whether the motion time or the
production rate, this element is taken care in any transaction in a company. In this study, the rice
company is settling down the grading and packaging process. It involved both the machine and
manpower. In the process of manpower has no time standard stated because as we know,
manpower process will be influence by many factors. Not as the machine that had been set and
produced as what we wish to. When there is no time standard, any task could be finished out of
planned. In this study, the process that involved manpower in packaging process is determined
and studied. While, a time standard is determined to know the time needed the process could be
finished. In business, both of these elements are important to execute the maximum profitable
production rate. Hence, with the application of Time and Motion Study the changes and
improvement could be seen especially in cost and production matter.
Root Cause Analysis
Root Cause Analysis is a process or procedure that helps guide people to discover and
understand the initiating causes of a problem, with the goal of determining missing or
inadequately applied controls that will prevent recurrence. The key to an effective root cause
analysis method is having an objective and repeatable procedure that produces verifiably
accurate results. The results should be a product of the process itself, not the opinions or
assumptions of the analyst. It should uncover all root causes and, therefore, provide all of the
realistic solution options. If the method is one that permits the analyst to pick the particular cause
that he considers the most important, thereby filtering out other root causes, the options available
to the decision-maker are consequently limited. There are many methods of RCA that allow the
user such latitude. These subjective types of systems thus often serve only as a structure for the
user to outline and report his opinion about the facts of a case.
Most root cause analysis methods would claim to subscribe to the definition above and
provide some level of “procedural” guidance for identifying root causes. But not all root cause
analysis procedures are created equal. The procedures of most RCA processes allow the user too
much latitude, and end up leading the investigator to simply document what he thinks he already
knows about the problem. For there to be a thorough investigation, the RCA procedure itself
(this is a key point to observe) must lead the investigation and analysis. Importantly, the
procedure itself should challenge the investigator’s assumptions and thinking about the facts of
the case (What is Root Cause Analysis?, 2013).
Process Manufacturing
Process manufacturing is the production of goods that are typically produced in bulk
quantities, as opposed to discrete and countable units. Riley (2013) defines process
manufacturing as the branch of manufacturing that is associated with formulas and
manufacturing recipes, and can be contrasted with discrete manufacturing, which is concerned
with discrete units, bills of materials and the assembly of components; and which involves
products that can be counted and labelled on an individual.

Process manufacturing is common in the food, beverage, chemical, pharmaceutical,
consumer packaged goods, and biotechnology industries. In process manufacturing, the relevant
factors are ingredients, not parts; formulas, not bills of materials; and bulk materials rather than
individual units.
The production of process goods usually requires inputs for thermal or chemical
conversion, such as heat, time and pressure. The product typically cannot be disassembled to its
constituent parts. For example, once it is produced, a soft drink cannot be broken down into its
ingredients.
Manufacture of Infant Formulas
Powdered infant formula is manufactured by more than a dozen firms in 40 – 50
processing plants worldwide. Although there are many plants that produce this product, the
manufacturing processes are very similar. Powdered infant formula is manufactured using two
general types of processes: a dry blending process and a wet mixing – spray drying process.
Some manufacturers use a combination of these processes. In the combined process, a base
powder (consisting mainly of protein and fat components) is produced using the wet mixing and
spray drying process and then the base powder is dry blended with the carbohydrate, mineral and
vitamin ingredients. These processes have different risks and benefits with respect to the
potential for product contamination by bacteria such as Enterobacter sakazakii or other harmful
bacteria. Each of these processes will be described below, with consideration given to the
potential for product contamination by harmful bacteria.
In the wet blending – spray drying process, ingredients are blended together,
homogenized, pasteurized and spray dried to produce a powdered product. The pasteurization
step destroys harmful bacteria that may be present in the ingredients. Therefore, this process is
much less dependent on the microbiological quality of ingredients. This process also has the
advantage of ensuring a uniform distribution of nutrients throughout the batch. However, the wet
blending – spray drying process requires that processing equipment, including the spray dryer
and fluidized bed, be regularly wet cleaned. This frequent wet cleaning provides the moisture
needed by bacteria to grow and become established in the plant environment. If not controlled,
these bacteria can be a source of product contamination. Manufacturers that use the wet blending
– spray drying process typically partition their plants into wet process and dry process areas and
strictly limit the movement of people and equipment between the wet and dry areas. Also, they
strictly enforce sanitation practices, particularly in the dry processing areas.
The wet blending – spray drying process begins with the receipt of ingredients from
suppliers. As with the dry blending process, ingredients are stored until they are tested for
conformance to specifications. Ingredients are blended with water in large batches (1,000 – 5,000
gallons) then pumped to a heat exchanger for pasteurization. The severity of the pasteurization
process varies among manufacturers, but it is always sufficient to destroy the vegetative cells of
harmful bacteria. After pasteurization, the liquid is homogenized. After pasteurization, certain
heat sensitive micro nutrients (e.g., vitamins, amino acids and fatty acids) are added to the
product. The microbiological quality of these nutrients is critical, since the product may not
receive further heating sufficient to destroy harmful bacteria. After the addition of micro-
nutrients, the liquid may be concentrated by passing it through an evaporator or it may be
pumped directly to the spray dryer. If the product is evaporated, it is heated to 145 – 170°F
during the process. In some cases, the concentrated liquid may be cooled to less than 45°F and
stored in a large tank (10,000 – 30,000 gallons) until needed. Prior to spray drying, the product is
pre-heated to 160 – 200°F and passed through a high pressure pump to the spray dryer nozzles.
The product is atomized into the spray dryer where the inlet air temperature ranges from 280 -
400°F, depending on the dryer model and process requirements. The spray dryer may be either a
horizontal box-type dryer or a vertical funnel shaped dryer. As the droplets of product pass
through the dryer, water is evaporated and the dry powder falls to the bottom of the spray dryer.
The outlet temperature of the dryer is approximately 220°F. The temperature of the powder at the
spray dryer outlet ranges from 110 – 175°F. The warm powder is passed through a fluidized bed
where it is cooled by a stream of chilled air. At the end of the fluidized bed, the powder has
cooled to approximately 70°F. Typically, HEPA-filtered air is supplied to the spray dryer and
fluidized bed to minimize the risk of product contamination. After spray drying, the product may
be agglomerated to increase the particle size and to improve its solubility. The finished powder is
passed through a sifter then transferred to bags, totes or silos for storage. In some cases, the
powder may be transferred directly to the powder packaging line. At the packaging line, the
powder is transferred to a filler hopper that feeds powder into the can filling line. Filled cans are
flushed with inert gas, seamed, labelled, coded and packed into cartons. Typically, finished
product is held until it undergoes a final check for conformance to specifications, including
microbiological contaminants (www.fda.gov).
Performance Measurements and Capacity Utilization for Manufacturing
Businesses must routinely review its various performance measures in order to assess
more objectively how it is operating and whether there must be a necessary improvement to be
made. Performance measures vary from different manufacturing companies.

Performance measurement cannot be done in isolation. It is only relevant within a
reference framework against which the efficiency and effectiveness of action can be judged. In
the past, performance measurement has been criticised for judging performance against the
wrong frame of reference and now there is widespread support for the belief that performance
measures should be developed from strategy.
Furthermore, performance measurement has an impact on the environment in which it
operates. Starting to measure, deciding what to measure, how to measure and what the targets
will be, are all acts which influence individuals and groups within the organisation. Once
measurement has started, the performance review will have consequences, as will the actions
agreed upon as a result of that review. Performance measurement is therefore, an integral part of
the management planning and control system of the organisation being measured.
The determination of measurement categories should be reflective of the critical factors
and actual performance should be traceable to the financial statements. In other words, a well-
determined set of performance measurements will provide an early warning of financial struggles
a company have.
Capacity utilization (maximum output rate) that a company can achieve in its
manufacturing system is another important key-factor. Companies always need to match the
capacity to the current demand rate from the customers. If capacity is higher than needed, some
of the company’s resources will not be used and in turn reduce productivity. If the capacity is
lower than needed, another problem arises, namely, that the company cannot satisfy the demand.
This situation can threaten the company‘s competitiveness in the long run if customers turn to
alternative suppliers. Hence, firms need to work at an optimal production level based on market
demand. Capacity utilization which is related with technical efficiency at industries level can be
attributed to organizational factors such as the nature of management, plant layout, material
handling, waste control and work methods (T.A. Bhavani & Suresh D. Tendulkar, 2010). Firms
using their available resources with selected technologies more efficiently are able to produce at
lower costs and hence improve their competitiveness in the market. Given the input prices, scale
advantage and technology, a technically more efficient firm would obviously possess an
additional cost advantage. Hence, Technical efficiency measured as the ratio of observed output
to maximum producible output is hypothesized to have a strong positive relationship with labor
productivity.
Key Performance Indicators
According to the written article by Balanced Scorecard Institute, Key performance
indicators (KPIs) are performance measures that indicate progress toward a desirable outcome.
Strategic KPIs monitor the implementation and effectiveness of an organization’s strategies,
determine the gap between actual and targeted performance and determine organization
effectiveness and operational efficiency. A good KPI has the following characteristics: provide
an objective way to see if strategy is working; offer a comparison that gauges the degree of
performance change over time; focus employees’ attention on what matters most to success;
allow measurement of accomplishments not just of the work that is performed; provide a
common language for communication; help reduce intangible uncertainty; valid to ensure
measurement of the right things; and verifiable to ensure data accuracy of data collection.
Process Improvement
The article published in www.apian.com defines process improvement as the proactive
task of identifying, analyzing and improving upon existing business processes within an
organization for optimization and to meet new quotas or standards of quality. It often
involves a systematic approach which follows a specific methodology but there are
different approaches to be considered. Some examples are benchmarking or lean
manufacturing, each of which each focuses on different areas of improvement and uses
different methods to achieve the best results. Processes can either be modified or
complemented with sub-processes or even eliminated for the ultimate goal of improvement.
The study of Caringal (2015) entitled “Process Improvement of Handling Copper Powder
at IPI”, has focused on the process enhancement of copper powder replenishment tank and the
application of appropriate procedure and controls for handling of copper powder during
replenishment activity. The researcher had designed an improved machine to eliminate manual
handling and operation of replenishment tank, control and handling of copper powder. The
researcher likewise made use of the industrial engineering tools to draw analysis and design the
improved process in handling copper powder.
The present study is related to the study of Caringal since both studies aim in improving
respective processes. The researcher of the present study will also make use of industrial
engineering tools to analysis and eventually come up with the design of the improved
compounding process.
Process improvement is an ongoing practice and should always be followed up with
the analysis of tangible areas of improvement. When implemented successfully, the results
can be measured in the enhancement of product quality, customer satisfaction, customer
loyalty, increased productivity, development of the skills of employees, efficiency and
increased profit resulting in higher and faster return on investment (ROI).

Improvement on the process can be seen in the work of De la Cruz (2014) on the
study entitled “Production Process Improvement of TCxT1600 Package at Vishay (Phils.)
Inc.” which set an objective of designing and developing an improved production process.
The improved process was evaluated in terms of applicability, acceptability and
effectiveness. The research design used was research and development. The researcher
made use of the design concepts like work simplification, Pareto analysis, cause -and-effect
diagram, process mapping, FMEA (Failure Mode and Effects Analysis) and cost benefit
analysis. As a summary, the proponent was able to identify the necessary corrective actions
on how to achieve the objective of the study to improve the production process of
TCxT1600 package. The replacement of time-pressure technology to jetter technology in
dispensing glue was able to achieve a consistent and controlled dispensing quantity. The
implementation of reduced coating coverage eliminates the occurrence of the bubbles
without affecting the light coupling feature.
Another study conducted by Solitario (2014) in process improvement with the title
“Process Improvement in the Production of IC at Analog Devices Inc. has utilized different
industrial engineering tools like Ishikawa diagram, process flow chart, and cost benefit
analysis. The main objective of the study was to modify the existing extender and to create
an adaptor to minimize downtime and provide continuous operation because the researcher
was faced with prolonged time in processing IC. The researcher concluded that the
improved and enhanced design of extender or contactor adaptor is capable of preventing
damage on production material which prevented overstaying lots and promoted continuous
operation in production to meet the required output with high quality standards being set by
customers.
When we engage in true process improvement, we seek to learn what causes things to
happen in a process and to use this knowledge to reduce variation, remove activities that
contribute no value to the product or service produced, and improve customer satisfaction. A
team examines all of the factors affecting the process: the materials used in the process, the
methods and machines used to transform the materials into a product or service, and the people
who perform the work.
Storck (2010) proposed a framework aiming at developing insight into what
manufacturing capabilities are required to reach the firm’s strategic goals and applies it to a case
from the steel industry. They found that that the company should invest in setup reduction and
dynamic scheduling in order to reduce cost and increase diversification.
Mauri et al. (2010) proposed a structured methodology for process improvement in
manufacturing systems that can help companies to identify areas to be improved through
constraint removal. Selected areas can be improved by frequent, small improvements or by
infrequent actions such as investment in new capacity or radical changes in technology.
Filho and Uzsoy (2011) emphasized that although the research community is addressing
the question of how to prioritise and select improvement projects, there is still a need for tools to
establish a clear quantitative relationship between improvement options and performance
measures such that managers can assess the probable outcomes of an improvement initiative. The
researchers have chosen cycle time as the primary performance measure for their study owing to
the widespread recognition of its importance to effective manufacturing operations. The paper
contributed in this direction by developing simple models with modest data requirements that
can give managers intuition as to the potential outcomes of improvement projects. While the use
of simulation models to support continuous improvement activities is not new, the researchers
believed this model is the first to try to link a quantitative model of the behaviour of
manufacturing systems with a system dynamics model to examine interactions between different
continuous improvement activities over time. A model-based approach of this type can yield
insight into how to prioritise/select continuous improvement efforts for different aspects of a
production system based on system parameters, across a wide range of production environments.
It also has potential as an instructional tool in both academic and industrial environments. The
researchers have chosen cycle time as the primary performance measure for the study owing to
the widespread recognition of its importance to effective manufacturing operations.
On the other hand, the present study specifically based the proposed improvement on the
runtime of selected infant formulas in relation to the existing Asset Intensity target. If runtimes
are made to be measured, then definitely it must also be the basis for performance measurement.
Once a process is selected, the team needs to establish a well-defined process
improvement objective. The definition of the objective should answer this question: What
improvement do we want to accomplish by using a process improvement methodology? The
process improvement objective is frequently discovered by listening to internal and external
customers. The team can use interviews or written surveys to identify target values to use as
goals for improving the product or service produced by the process. Identifying a problem
associated with the process helps define the process improvement objective. The people working
in the process can identify activities that take too long, involve too many man-hours, include
redundant or unnecessary steps, or are subject to frequent breakdowns or other delays. But this is
not just a problem-solving exercise; this is process improvement. Problems are symptoms of
process failure, and it is the deficiencies in the process that must be identified and corrected.
A standardized process improvement methodology allows us to look at how we perform
work. When all of the major players are involved in process improvement, they can collectively
focus on eliminating waste of money, people, materials, time, and opportunities. The ideal
outcome is that jobs can be done cheaper, quicker, easier, and most importantly, safer.
Process Downtimes and Delays
Accuracy of downtime measurement can be obtained if a company has clearly defined
standards and are applied consistently. Accuracy would also mean as the capture of all possible
reasons every time a downtime event happens.
For most manufacturers, process downtime is the most common source of lost production
time. Downtime encompasses any unplanned event that causes manufacturing process to stop.
Production schedule will be hampered and the process will not be running due to unplanned
stoppages.
In the study of Prudencio (2010) entitled “ Processing time Reduction of the Disposable
Primary Filters through Process Improvement at Goodhouse Industries Incorporated in Taguig
City” found out that the high processing time was caused by two controllable factors and four
experimental factors. The controllable factors were the boredom of the workers and the
unpractised authority of the supervisor. Action plans were generated in order to solve and avoid
these controllable factors. On the other hand, the experimental factors indentified were the
absence of pleating equipment, poor layout, non-standardized process and the malfunctioning of
glue guns. These factors were addressed by formulating alternative solutions which were based
from IE concepts like time methodology, cost-benefit analysis and flow process charts.
The standardization was done by combining some of the processes which eventually
reduced the number of workstations. Time study methodology was used to standardize the
processes. The author recommended for an updating of standards by conducting more sampling
to come up with more accurate standard processes.
Similarly, the present study will concentrate on human factor and experimental factors in
the motive of attaining target asset intensity by determining the most effective operating
parameters during compounding process. Consequently, the compounding process will therefore
be standardized based from the required runtime of selected infant formulas.
In today’s competitive market, every manufacturing facility is striving to operate its plant
assets at a maximum capacity or efficiency level at all the time. In reality, decreased production
rates, delays to production utilization and unplanned shutdowns are regular occurrences. But the
good thing is that we can integrate existing plant systems, set priorities, and analyze every single
factor on the entire production cycle.
As much as possible, on the management perspective, time must be spent producing and
producing quality outputs. Even though downtimes and delays are inevitable, courses of action
should be done so that these would not hinder production schedules. A time consumed by
downtimes and delays is a time misspent.
According to Johnson (2013), many losses are accrued from stops and delays. Every time
a process is stopped and started, losses include: ramp-up to production speed; start-up waste;
extra wear on the machine; the overtime required to catch up on production; energy losses; an
fixed costs that are amortised over lower output.

The main purpose of the present study was to eliminate speed loss but of course should
never come at the expense of quality. What the researcher was trying to introduce is the
standardization of compounding time by means of establishing standard operating parameters per
infant formula. This will also eliminate the process variability and will consequently meet the
target asset intensity. Creating efficiency calls for directed manufacturing that reduces
production variability in cycle time, tackles process downtimes, enforces best practices in the
process and insists on error proofing. Efficiency, when implemented correctly, will drive not
only quality but also productivity.
The study of Galvez (2011) entitled “Standardization of Processing Parameters for
Inhibitions of Browning in Dehydrated Jackfruit Pulp” has employed an experimental method of
research wherein jackfruits were subjected to varying processing parameters while maintaining
all remaining factors constant. The researcher has recorded results with corresponding parameter
and out of these results, the researcher has able to conclude the most effective processing
parameters to inhibit browning in dehydrated jackfruit pulp.
The present study is very much related to the study conducted by Galvez because it will
also look for the most effective if not optimum, operating parameters during compounding
process. The aim to standardize the parameters by which infant formulas are compounded in
WP2 will end to having consistent runtime of these formulas. The researcher will be employing
the research and development type of research instead of experimental type.
The Concept of Factory Automation
In many control applications, networks are being used as a transmission medium for
control data such as sensor readings, controller signals, and alarm signals. The resulting control
system is termed a Networked Control system (NCS). Examples of NCS application areas
include industrial automation (R. Daoud, et al., 2010)
As the technology of manufacturing moves toward more automated processes, it is
believed that process or product variability will disappear. What is more likely is that although
variability will tend to decrease with advances in automation, variability will not go away. What
is also likely is that each decrement in variability will be accompanied by a tightening of the
bounds of acceptability.
The design of newer equipment with greater usefulness and capabilities is bringing about
an ever-increasing growth in the development of control equipment. The reason is twofold. First,
automatic controls relieve workers of many monotonous activities so that they can devote their
abilities to other endeavours. Second, modern complex controls can perform functions which are
beyond the physical abilities of workers to duplicate. It is interesting to note that, as the
applications and uses for controls have increased, so also have the demands upon the
performance of these system increased.
Thus, the goal of process control will not change with technological advances in
manufacturing. What will change is the specific nature of the tools used to monitor variability in
the process.
In the absence of process automation, plant operators have to physically monitor
performance values and the quality of outputs to determine the best settings on which to run the
production equipment. Maintenance is carried out at set intervals. This generally results in
operational inefficiency and unsafe operating conditions.
Process automation simplifies this with the help of sensors at thousands of spots around
the plant that collect data on temperatures, pressures, flows and so on. The information is stored
and analyzed on a computer and the entire plant and each piece of production equipment can be
monitored on a large screen in a control room.
Plant operating settings are then automatically adjusted to achieve the optimum
production. Plant operators can manually override the process automation systems when
necessary.
Manufacturing Reliability/Efficiency
Reliability theory is the foundation of reliability engineering. Reliability engineering
provides the theoretical and practical tools that enable to assess the probability and capability of
parts, components, equipment, products and systems to perform their required functions for
desired periods of time without failure, in specified environments and with a desired confidence.
There are several standard methods for reliability estimation according to the handbooks of
reliability prediction and design. It is impossible to avoid all feasible failures of a system or a
product on the design stage, so one of the goals of reliability engineering is to recognize the most
expected failures and then to identify appropriate actions to mitigate the effects of those failures.
In the study of Pedro (2013) entitled “Line Efficiency through Improvement of Powder
Handling System” tried to make the sachet line efficient, which meant that the line should have
continuous production run by designing a tie-in to avoid stoppage at the bottleneck. The author
has anticipated reoccurrence of the failure or stoppage and that led to the solution of providing a
spare pump tied-in on the withdrawal line system of the sachet line. The researcher conducted
the study by means of a research and development type of the study.

The concept of reliability was visible in that study of Pedro since the probability and
capability of the existing pump were assessed. By proving a spare pump, the desired confidence
of running the sachet line became high since an outright alternative was already provided.
In today’s competitive environment companies are increasingly align their organizational
structure and competitive strategies to diverse market demands. The companies improve their
capability, long term flexibility and responsiveness of this process. The production system and
its internal structures have been in the central place of the entrepreneurial activities and plans,
which foster adaptation to actual market needs. The system reliability assessment and prediction
has become increasingly important which concerns the different stages of the operating process.
It is critical to develop efficient reliability assessment techniques for the complicated
manufacturing systems, which usually have different failure mechanisms, in order to ensure
adequate performance under extreme and uncertain demands. A reliable production system
ensures the sustainability of an enterprise in a dynamic business environment.
In the study of Farook (2011) entitled “A Study on Identifying Significant Factors
Affecting Production Line Efficiency in the Local Apparel Industry using Multiple Linear
Regression” provided valuable insight into the dynamics involved in the production environment
and also a better understanding of the variables that drive the daily efficiency.
The effect of quality consciousness, substitution of personnel and the knowledge of the
technicalities involved in the sewing process were such significant factors. These were clear
indications that there were other variables which affect the daily efficiency of the production line
that the management might not have considered.

The study conducted was in two-fold: analyzing daily efficiency and analyzing efficiency
throughout a production day considering smaller time intervals. Through the use of multiple
linear regressions, significant factors and their behaviour were studied.
Process reliability is the capability of equipment and labour to operate without failure.
The assessment enables us to identify the causes of failures followed by prevention and control.
The goal of the research is to extend the existing reliability assessment methods and integrate
them into a common framework. The framework must be able to identify the most unreliable
parts of a production process and to suggest the most efficient ways for the reliability
improvement. Significant cost-saving opportunities for industrial enterprises can be achieved
through the practical realization of reliability improvement of production facilities. When the
process failure reasons are described, the reliability measures of manufacturing processes can be
obtained from daily production data.
Reliability of production processes is a key issue that ensures the stable system operation,
increase the product quality, and reduce production losses. The framework for the analysis of
production process failures is introduced, which also allows to define the most effective ways of
their elimination (Karaulova and Kostina, 2012).
Villenas, et al. (2010), in the study entitled “Improvement of Line Efficiency through the
Line Balancing at Marva’s Garment Company” aimed at improving the line efficiency of
assembly line by using line balancing tools. The main objective of the study was to find out
whether a mere balancing can improve the efficiency without major alterations on the existing
state. Balanced distribution of processes and eliminating waste were the main focus of the study.
As defined, line balancing is a means of measuring the degree of balance for each process time in
a flow line operation. The researchers observed and computed the probable cause of inefficiency
of the assembly line such as the tact time, the precedence of work element, and the company’s
existing assembly line. These were the observable data essential to the formulation of line
efficiency. The researchers then have come up with the findings that improving the precedence
of work element had greatly contributed to the balancing of the line.
In addition, the researchers recommended that the proposed line set up be implemented to
maximize the utilization and productivity without altering the major set up of the production
such as the facility and manpower, while benefitting the company with the savings it could be
yielded.
Unit III
Methods and Procedures
This unit presents the systematic procedures and techniques used by the researcher to
achieve the objectives of the study. This part describes the research design, research
environment, methods and procedures, data gathering instruments, evaluation of the study and
design concepts applied.
Research Design
The research and development type of research was employed in this study to seek
answers to what causes the inconsistencies and variations of compounding process runtime
which in effect has been bringing the asset intensity of WP2 to failure.
The research was designed to generate data through survey, interview of the personnel
directly involved in the subject of the study, observation of the actual process, literature reviews,
retrieval of archived log books and saved computer data and introduction of the proposed
manipulations of operating parameters of compounding process.
By the time the required data had been gathered, the present researcher would now
analyze them by means of industrial engineering tools and techniques effective enough in
producing answers to the research question like root cause analysis, time and motion study, flow
charts and flow process chart.
Once the gathered data had been analyzed, the researcher would now be equipped with
the capability to design and developed an improved compounding process.

Research Environment
The primary sources of data were gathered from operators and supervisors of Wet
Process 2 of Wyeth Philippines Inc., Cabuyao, Laguna who were composed of engineers and
skilled workers with various length of service to the company. The researcher also gathered data
from actual observations and hands on operation of the compounding process. The secondary
data were obtained through retrieval of data from computer data repository, process logbooks
and company’s general instruction sheets. Data from books and unpublished theses were found
to be very helpful to the researcher.
Operators of Wet Process 2 are divided into four crews ( A, B, C, D). Each crew is
composed of seven operators, thus a total of 28 operators all in all. While there are only four
supervisors and are handling their respective crews.
The data retrieved from computer data repository, depending on the forecasted runs of a
product, may represent huge amount of raw data. The researcher needed to retrieve all these data
to determine the compounding durations of the products.
Procedures
This study consisted of series of activities involving thorough planning and
conceptualization of approaches to be taken. The researcher took a step-by-step process which
started from data gathering. The gathered data were analyzed to identify problems. After the
identification of the problem the researcher was able to establish hypotheses to serve as root
causes of the problem. The verification of hypotheses involved manipulation of operating
parameters. The results of the verification process were used to design and develop the improved
The researcher has pre-identified which of those infant formulas in WP2 have been
taking long compounding process duration. There are seven of them, but for the purpose of this
study and due to the limitations encountered by the researcher, the identified formula which will
become the subject of manipulation of operating parameters, was set to five formulae only.
It was also important to distinguish first which variables or factors are to be manipulated
and which of them should remain as is. The researcher has two variables to work on and the
manipulation of these was done one by one in order to observe the outcome of each variable. The
judgment of these outcomes was based from the comparative records of actual compounding
operations. Compounding process running with manipulated variables can be considered as the
simulation of the improved compounding process.
The variables that need to be manipulated are agitation speed and pump motor settings.
Agitation speed is the speed of the compounding agitator. Compounding process requires two
circulating lines for liquid mix (infant formula) to circulate properly and be compounded well.
Across this two circulating lines are pump motors with default motor speed settings. These
settings can be manipulated too. Other parameters will be as is during compounding process. It is
important to note that the actual objective of the researcher is to have an efficient compounding
process by manipulating both agitation speed and pump motor settings at same time while
compounding. The results of the manipulations will set conclusion whether the efficiency of
compounding process has improved. These can be done through comparison of derived data to
that of the records of previous runs.
The researcher has listed the 5 identified infant formulas together with their
corresponding/proposed agitation speed and pump motor settings. Each formula should be run
with manipulated operating parameters (agitation speed and pump motor settings). Manipulation
should be done first one by one. Then next is to observe the outcome when these parameters are
combined in a compounding process.
The execution as well as the data gained from those manipulations was presented
independently to clearly show each outcome. In other words, there should be 2 presentations of
outcomes- one for compounding with manipulated agitation speed and another one for
compounding with manipulated pump motor settings. An additional presentation will be
provided for the outcomes if these two parameters are combined during compounding process.
With this manner of presentation, the conclusion can easily be deduced.
The detailed discussions of the procedural steps taken by the researcher were provided as
follow.
Data Gathering. It is the process of collecting and measuring as much information as
possible on variables of interest, conducted in an established systematic way that enables the
researcher to answer stated research question hypotheses and eventually evaluate outcomes. The
data that need to be gathered by the researcher include but not limited to the asset intensity (AI)
rating of Wet Process 2 starting from the date it was launched until present, the number of times
the selected products had run on dates relevant to AI and the length or duration of compounding
process of these products. It must also include the information about existing operating
parameters during compounding.
Observation. The researcher has to be aware of the current production scenario. A simple
observation to the existing practices and compounding process in Wet Process 2 will yield useful
information. However, this data gathering instrument limits the researcher to gain ample amount
of data needed in the study since the production run are always based from forecast. Some of the
identified infant formulas have not run or were not in the forecast yet.
Interview. The researcher had the opportunity to discuss the proposed improvement to the
operators of Wet Process 2. First hand information needed in this study was obtained.
Suggestions were noted.
Library and Internet Research. These involves data-mining. Several resource materials
from libraries and internet website were sought by the researcher so that the present study would
have relevancy and attribute foundation. The researcher had taken advantage of the vast
information available in the internet. Both published and unpublished resource materials were
reviewed by the researcher. Searches were comprehensive and in depth.
Data Analysis. After collating all required data, the researcher used the fishbone diagram
to pinpoint and understand the reasons why the problem of non-consistent attainment of asset
intensity rating in Wet Process 2 exists. The researcher looked into the four factors like man,
machine, methods and materials. And to deepen the analysis of the identified root cause, the 5
Why Analysis was used.
Design of Improved Compounding Process. The data gathered and analyzed were the
driving forces why the researcher has come up with the design of improved compounding
process. The researcher was very cautious also not to affect product quality since the design
would involve changes in the default and existing operating parameters of the products. The
researcher determined first what needs to be improved in the first place. The design must aim to
shorten or minimize the duration of compounding process and therefore must result to the
consistent attainment of target asset intensity rating.

Under the design stage, the improved compounding process was presented through the
presentation of flow process chart. This flow process chart showed the proposed improvements
of compounding process where delays and unnecessary tasks were already eliminated.
Development of Improved Compounding Process. The development of the improved
process was detailed by using flow charts. The consequent flow chart of the proposed
improvement was presented to show distinction and improvement.
Evaluation. The proposed improvement of compounding process was evaluated through
feedbacks from the operators and supervisors of WP2. Administration of the survey form for the
respondents was done. Responses were interpreted through modified Likert scale and were
measured by means of weighted mean. In addition to the survey conducted, the cost benefit was
also utilized to show that indeed improving the compounding process could bring benefits to the
company.
Survey form. The researcher used the survey form to determine if the output of the study
satisfied the set objectives of the study. The respondents were 28 operators and 4 supervisors of
Wet Process 2.
Likert Scale. The research made use of the modified Likert scale to interpret the responses
from operators and supervisors. Table 1 shows the modified Likert scale the researcher has used.
The researcher employed the five point scale to specifically measure responses. It uses numerical
ratings from 5 as the highest to 1 as the lowest. Every rating has its own corresponding
qualitative description of the response, from highly satisfied (5) to highly dissatisfied (1).
Table 1
Modified Likert Scale
Numerical Value Range Qualitative Description
5 4.21-5.00 Highly satisfied
4 3.41-4.20 Satisfied
3 2.61-3.40 Less satisfied
2 1.81-2.60 Dissatisfied
1 1.00-1.80 Highly dissatisfied
Weighted Mean. The researcher used the weighted mean to get the average of the
responses and interpret this on the general responses of the respondents with respect to the
evaluation of the proposed improvement. This measurement is relevant since there are
frequencies assigned to each term in the given data which the researcher may no longer use
simple arithmetic mean formula. Few values in the form of response may occur more frequently
than others, therefore corresponding frequencies are allotted to each value. These frequencies are
often referred as weights.
Weighted mean formula is as follows:
where: = weighted mean
= … = numerical value
… = frequencies corresponding to the respondents

Design Concepts
Several Industrial Engineering tools were utilized by the researcher in conceptualizing and
developing the improved compounding process. These tools were discussed as follow.
Time and Motion Study. The principles of systematic investigation and analysis of time
required to compound a specific formula of milk product were used by the researcher. Since the
expected outcome of the present study was to determine the time observed as most effective
(shortest), the dogmas of time and motion study were therefore incorporated.
Operations Management. Implicit to the main objective of the present study, this was to
design and develop the improved compounding process, the researcher was also aiming at
speeding up the compounding process, eliminating delays and hence converting the line as
efficient as possible. These could maximize the profit and minimize the operational losses. For
these reasons, the principles of Operations Management sought its importance in the conduct of
the present study.
Root Cause Analysis. Since the present study employed the research and development
type of approach, the present study would therefore be making use of analytical methods or
approaches in such ways that the possible root causes would be identified. The Root Cause
Analysis (RCA) would be the best method of problem solving by identifying the root causes of
the problem.
Fishbone Diagram. The fishbone diagram was used to visually display the many potential
causes of the identified problem. Moreover the present researcher found this tool as a useful
technique for opening up thinking in solving the raised problem. It is more structured approach
than some other tools available for brainstorming causes of a problem. The problem or effect was
displayed at the head. Possible contributing causes were listed on the smaller bones under
various cause categories. The main fish bones were categorized as man, material, method and
machine.
Flow Chart. This tool was found very helpful since the present study dealt with the
improvement of compounding process in Wet Process 2.Through the use of flow chart, the
current process was easily figured out for objective analyses and the areas for improvements
were effortlessly visualized. In addition, by means of flow chart the compounding process could
be learned at an instant. It straightforwardly pinpointed the unnecessary steps or duplication so
needed improvements were easily drafted.
Flow Process Chart. This chart exposed which of the steps of compounding process do
contribute to prolonged compounding time. It depicts the sequence of the process represented by
different symbols and contains a short description of the process steps. The researcher included
the elements like sequence of actions, materials entering or leaving the process (inputs and
outputs), and the time involved at each step and/or process measurements.
Operation Process Chart. The present researcher made use of this chart to provide the
chronological sequence of all operations and inspections that occur in a manufacturing like that
in Wet Process 2. It completed the big picture where the researcher should be dealing with the
data collection, analysis and design and development of the study.
Cost Benefit Analysis. The cost benefit analysis estimates and totals up the equivalent
monetary value of the benefits and costs of the proposed improvement to the company to
establish whether it is worthwhile. By using this analysis, the researcher was able to demonstrate
whether the benefits of having an improved compounding process outweigh the estimated costs
of such improvement. In the present study the percentage reduction of agitator motor power
consumption was translated into monetary equivalent. The same with the time saved due to
shortening of compounding time per milk product.

Unit IV
Results and Discussions
This unit presents the gathered data, principles and generalization which were integral to
the design and development of the study. It also includes the analyses of gathered data and its
interpretations through textual discussion and tabular or graphical presentations. The researcher
will exhibit how the proposed improvement was conceptualized and led to its design and
development.
Data Gathering
Current Process Flow of Wet Process 2. As part of the data gathering, it is relevant to
present the current process flow of Wet Process 2 to further understand from where the necessity
of improving the compounding process originated.
Figure 2 illustrates the current process flow of Wet Process 2. The figure shows that
compounding process is only part of the interconnected yet independent processes happening in
WP2. The box filled with light green color would be the subject of this study (the compounding
process). The boxes with green arrow pointed at the subject are the sub processes, which were
also considered as factors affecting the total time for the completion of compounding process,
aside from other factors such as equipment and equipment parameters, manpower and quality of
materials.
Figure 2. Current Operation Process Chart of Wet Process 2
Current Compounding Process Chart. Figure 3 shows the current compounding
process chart. Prior the start of recipe, the operator has to check first the completeness of
minerals and whether the manual valve of FBT (fat blend tank) is closed. In fact these two steps
are sort of counterchecking since it must be assumed that another operator (mineral attendant)
has checked them already. Once the recipe has been started, pop up questions for powder hopper
allocation, oil tank allocation and compounding tank allocation would follow. The monitoring of
the entire compounding process starts when the operator has prompted the start of mixing and
water addition into compound tank. When the right quantity of water has been added, the first
dosing of oil blend must be done. The operator simply monitors the process; no parameter
adjustments would be executed even after the start of powder dosing. As the powder is
simultaneously withdrawn from the hopper, the powder starts to build up inside the eductor
funnels especially at the bottom portion. The operator should declog it from time to time and
pound the outside portion of the eductor funnels just to clear these builds up, or else the
withdrawal of powder from hopper will not be completed. When required quantity of powder has
been withdrawn, the interface will pop up the start of mineral addition and what the operator will
do is to confirm it by means of entering a password. Then the operator should clear the powder
builds up again, at the same time scrape off the builds up accumulated into level sensors. Once
all powder has been withdrawn from the hopper, the operator must confirm the end of mineral
addition which will also trigger the dosing of second dose of oil blend. A timed-agitation of ten
(10) minutes needs to be set before releasing the compound tank for HTST (High Temperature
Short Time) pasteurization. Finally, the operator is required to accomplish necessary documents
like manufacturing instruction (MI) and FBT (fat blend tank) card.
Start
Check minerals
Check manual valve of FBT
Start recipe
Allocate powder hopper
Allocate oil tank
Check if extra oil tank is needed
Allocate compound tank
Start mixing and water addition
A
Monitor compounding from this point to end
Dose the first dose of oil blend
Maintain default pump speed
Start powder dosing
Maintain default agitation
Declog powder builds up in eductor funnels
Pound eductor funnels by rubber mallet to clear builds up
Confirm start of mineral addition
Check powder builds up in eductor funnels
Scrape of powder builds up of level sensors
Confirm end of mineral addition
Dose the second dose of oil
Start timed-agitation at compound tank
Release compound tank
Accomplish MI and FB tank card
End
Figure 3. Current Compounding Process Chart

Current Average Compounding Time and Processing Time. Wet Process 2 has
already established standard time for processing of liquid mix. Supposedly, this established
standard time should be the basis for the total time until the whole Process Order (PO) is done.
This should also be the basis for measuring the Asset Intensity of Wet Process 2.
But the actual time and the actual asset intensity suggest otherwise. The compounding
time has been dictating the whole processing time for the whole PO. This causes unbalanced line
and causes the processing to momentarily stop (product circulation at HTST) and wait for the
compounding process to finish. To show how unbalanced the line is, Table 2 was hereby
provided.
Table 2
Average Compounding Time versus Average Processing Time

Based from Table 2, the average compounding time of each formula obviously exceeds
its respective average processing time. For instance, Promil Kid is being compounded for 107.70
minutes on the average and only takes for about an average of 63.58mins during processing;
Progress Gold for about 96.80 minutes compounding versus 68.75 minutes during processing;
Bonakid (Bkd) for an average compounding time of 86.53 against a 69.50 minutes average
processing time, Bonamil (BML) for 73.85 minutes as an average compounding time and 72.83
minutes average processing time. These available data affirm non-smooth queuing of
compounded mix during processing. Ideally, a smooth processing requires constant supply of
liquid mix over the line. This means that compounding must be finished exactly or even before
the current compound tank being processed becomes empty.
What was affected primarily by prolong compounding time was the asset intensity (AI) in
Wet Process 2. The longer the compounding process takes, the longer also the delay (in minutes
time) that will be reflected in AI.
Asset Intensity Rating. Table 3 presents the asset intensity (AI) of Wet Process 2 from
January 2015 to September 2015. From the said table, there really is an inconsistency in the
attainment of AI. The AI target of greater than or equal to 56.8 % has not always been attained.
Wet Process 2 only achieved the target for the months of February, March, May, June, and
August. The rest of the months did not reach the target and thus the % AI failed. This was the
problem that the present study promises to correct through improvement of compounding
process. The reduction of compounding time improves the AI and makes the attainment of it as
consistent.
Table 3
Wet Process 2 Asset Intensity from January to September 2015
Asset Intensity 2015

Target >/= 56.8%
No. Months % Asset Intensity
1 January 53.9
2 February 59.2
3 March 67.1
4 April 55.9
5 May 60.5
6 June 57.9
7 July 53.8
8 August 73.8
9 September 56.1
Compounding Flow Process Chart. The flow process chart shown in Figure 4
represents the current compounding process. The total tact time of 151.13 minutes covers twenty
four steps in sequence namely: checking for the availability and completeness of minerals;
checking of manual valve of fat blend tank if it is open; starting the recipe; allocating powder
hopper; allocating oil line; checking the need for extra oil tank; allocating compounding tank;
starting water addition mixing at compounding tank; monitoring of compounding process from
this point and through to end; dosing of the first dose of oil blend; maintaining the default
percentage speed of agitator in compounding tank; declogging of powder build ups in educator
funnels; pounding the educators’ outside bottom portion by rubber mallet to clear builds ups;
confirming start of mineral addition; checking of powder builds up in eductor funnels; scraping
off of powder builds up of level sensor; confirming end of mineral addition; dosing the second
dose of oil; starting of timed-agitation of mix at compounding tank; releasing of compounding

tank; and finally, accomplishing necessary forms like MI (manufacturing instructions) and FB
(fat blend) tank card.
In summary, the present flow process is composed of seventeen (17) operations; two (2)
transports; two (2) delays; and two (2) inspections.
The emphasis was given to the activities like declogging of powder builds up inside the
educator, during checking of powder builds up in the eductor funnels and during scraping off of
powder builds up of level sensor. These activities and the corresponding time it consumes
represent the delays throughout the entire process of compounding.
Location: Wyeth Philippines Inc. Summary
Activity: Compounding Process Event Present Proposed Savings
Date: Operation 17 _ _
Operator: Analyst: Transport 2 _ _
Encircle appropriate Method and Type Delay 2 _ _
Method: Present Proposed Inspection 2 _ _
Type: Material Man Machine Storage 0 _ _
Time (min) 151.13

_ _
min
Remarks: Distance (ft) 85ft _ _
Time Distance Method

Event Description Symbols
(min) (ft) Recommendation
Check minerals 3 50 Eliminate
Check manual valve of FBT 3 35 Eliminate
Start recipe 0.5 _ _

Allocate powder hopper 0.5 _ _
Allocate oil tank 0.5 _ _
Check if extra oil tank is needed 0.3 _ _
Allocate compound tank 0.5 _ _
Start mixing and water addition 0.75 _ _
Monitor compounding from this 86.83 _ Improve

point up to end compounding
process to shorten
monitoring time
Dose the first dose of oil blend 5 _ _
Maintain default pump speed 5 _ Adjust speed
Start powder dosing 0.5 _ _
Maintain default agitation 0.5 _ Adjust agitation
Declog powder builds up in 0.5 _ Eliminate

eductor funnels
Pound eductor funnels by rubber 15 _ Eliminate

mallet to clear builds up
Confirm start of mineral 5 _ Eliminate

addition
Check powder builds up in 0.75 _ Eliminate

eductor funnels
Scrape off powder builds up of 5 _ Eliminate

level sensors
Confirm end of mineral addition 10 _ _
Dose the second dose of oil 0.5 _ _
Start timed-agitation at 0.5 _ _

compound tank
Release compound tank 0.5 _ _

Accomplish MI and FB tank

_ _
card 5
Figure 4. Present Compounding Flow Process Chart
Meanwhile, Table 4 shows the number of compounds per product. Those data were taken
from January to September 2015 and these represent the months wherein the compounding
process was still unimproved. Note that for every PO (Process Order), there are four (4)
compounds. To illustrate, based from Table 4 below, an eighteen (18) PO of Bonakid Pre-school
would mean a total of seventy two (72) compounds; a thirty seven (37) PO of Bonamil equals
one hundred forty eight (148) compounds, and so on.
From the month of January through September 2015, the compounding processes
(production runs) of each milk products were not yet improved. On the other hand, the
production runs from October through December of the same year would be the opportunity for
the present researcher to do the manipulations of the operating parameters during compounding.
The manipulation the researcher was referring to was the validation of the improvement designed
for each and every product identified here.

Table 4
Forecasted Production Run of Selected Milk Products for 2015
Inclusive Months
Products January to September 2016 October to December 2016
No. of PO No. of Compounds No. of PO No. of Compounds
Bonakid Pre-school
18 72 8 32
(BPS)
Bonamil (BML) 37 148 12 48
Bonakid (Bkd) 58 232 16 64
Progress Gold (PGG) 63 252 18 72
Promil Kid (Pkd) 68 272 17 68
Existing Operating Parameters during Compounding Process. Table 5 below gives
picture to the existing operating parameters during compounding process. These operating
parameters are the default ones. Table 5 shows the two (2) most important operating parameters
during compounding process. The data shown are the existing ones and based from the table, the
five products do all have the same existing or default operating parameters especially in terms of
pump speed (80%) and agitation speed (100%). To recap, the pump speed the researcher is
mentioning here is the speed of two eductor pumps located at along the circulating lines during
compounding process. On the other hand, the agitation speed the researcher is referring to here is
the speed of compounding tank agitator during compounding process. Both parameters are
expressed in percentage. A 100% means the agitation or the pump is running at its maximum
speed.
Table 5
Existing Operating Parameters during Compounding Process
Operating Parameters
Products
Pump Speed Agitation Speed
Bonakid Pre-school 80 % 100 %
Bonamil 80 % 100 %
Bonakid 80 % 100 %
Progress Gold 80 % 100 %
Promil Kid 80 % 100 %
Data Analysis
This part of the Unit IV discusses the analyses made by the present researcher to deepen
the identification and validation of possible root causes of the problem. The gathered data were
hereafter reviewed, compared and analyzed to come up with conclusions which were backed up
with critically deduced findings and generalizations.
Fishbone Diagram. The fishbone diagram or the cause and effect diagram found in
Figure 5 shows the four categories namely: man, machine, material and method. The problem as
shown in the head part of the fishbone is too long compounding time. Under the man category
the lack of operating experience and lack of technical training and knowledge were identified as
possible root cause of the problem. These are very true when operators are novice or the product
has been halted production for some time that the operator has not given the chance to
experience operating it yet. The second category which is machine identified three possible root
causes and to enumerate: inefficient pumps, no set PM (preventive maintenance) for the
equipment and the frequent clogging of eductor funnels. The third category which is material has
identified two possible root causes. The addition of rework powder and the maltodextrin as
ingredient material present in the product formula may contribute why it takes too long to
compound a product. The last category of the fishbone diagram is the method wherein two
possible root causes were mentioned. One is that no established parameter per product type has
been set or provided to the operators and the other one is that there is no detailed WI (work
instructions) to deal with compounding problems, and which in the case of the present study, the
prolong compounding time.
Figure 5. Fishbone Diagram

Validation of Possible Root Cause. The researcher presented the validation of possible
root causes by means of a table and can be found in Table 6.In addition, to complement this
validation, the researcher made use of 5-Why Analysis which is presented in Table 7.
Table 6
Validation of Root Causes
Validation of Possible Root Causes
Method of
No. Category Possible Cause Results of Investigation Conclusion
Validation
1 Man Lack of operating Interview All operators had been Not

experience Record checking assigned true
as compounding root cause
attendant and have
been exposed to
different milk
products.
Lack of technical Interview All operators are Not

training and Record checking trained and true
knowledge had been released for root cause
independence
performance
2 Machine Inefficient pumps Observation Installed pumps can Not

Research actually operate at its true
Interview maximum, hence root cause
they're not inefficient.
No set PM for Research Engineering division Not

equipment Record checking do the true
Interview scheduled root cause
maintenance and
monitoring of pumps.
Frequent clogging Observation Compounding process True root cause

of eductor Record checking is taking too long
Research because of frequent
clogging of eductor.
The powder builds up
in the bottom portion
of the eductor where
powder and circulating
liquid meets.
3 Material Too much rework Research Rework must be Not

added Record checking utilized again that is true
why it's part of the root cause
recipe.
The addition of rework
would incur additional
processing time that
only accounts to not
so significant
additional time.
Product with too Research Maltodextrine is an Not

much Record checking ingredient that makes true
maltodextrine Interview the liquid mix viscous. root cause
The delay it may incur
is given and be treated
normal since it is part
of the recipe.
4 Method No established Research There were actually Not

parameters per Record checking established true
product type Observation parameters root cause
per product and these
were consistently
followed.
No detailed WI Research Detailed instructions Not

for dealing Record checking were available. true
compounding Observation root cause
problems Interview
Table 6 itemizes all possible root causes and its respective methods of validation. The
corresponding results of investigation strengthen the conclusion whether the possible root cause
is a true root cause or not. As shown in the table, the frequent clogging of eductor is the true root
cause of too long compounding time.
The lack of operating experience and lack of technical knowledge under man category
are not true root cause of the problem since based form records, all operators were trained,
oriented and were released for independent performance. This means competency and therefore
the problem of too long compounding time should not be pinpointed to operators.
The inefficient pumps under machine category was not a true root cause because the
installed pumps currently can be run at its maximum operation. The problem was not on the
pumps themselves but the setting they were used to run. There was also a scheduled pump
maintenance being done by engineering division.
Too much added rework and maltodextrine should not be treated as true root cause since
a compound can do without them. They are part of the recipe and hence whatever delay it might
cause should be deem as irrelevant.
Finally, the results of investigation of two possible causes under method category
showed that established parameters and work instructions during compounding were present.
Consequently, they should not be treated as true root cause.
Table 7 shows the validation of the identified root cause by means of 5 Why Analysis.
Using this tool, the researcher got deeper to the root cause of the problem in order to determine
its true root cause/s.

Table 7
5-Why Analysis
Question Possible Why? Y Why? Y Why? Y Why? Y

/ Root / / / /
Answer Cause N N N N
Why is Why powder Why is the Why the pipe
there builds up on to mix flowing has
frequent the bottom of under the insufficient
clogging of educator funnel has mix flow
Question
educators? funnels? insufficient through it?
vacuum
Cause:
effect?
Frequent
clogging Y Y Y Y
Because Because the Answer 1 Because the
of
powder mix flowing Because agitation
eductors
builds up on under the pump speed speed of the
to the funnel has is low compounding
Answer
bottom of insufficient tank might be
educator vacuum effect True Root too fast
funnels Cause # 1 True Root
Cause # 2
Answer 2
Because the
pipe has Y
insufficient
mix flow
through it
The validation of identified possible root cause through 5 Why Analysis ended up to the
true root causes of the problem, i.e. because pump speed is low in order to make sufficient
vacuum and because the agitation speed of the compounding tank might be too fast.
The first validated true root cause involves the pumps along the circulating lines and are
located below the eductor funnels. The current compounding process lets these pumps to be
running in its default setting. The mix flowing under the eductor funnels needs enough vacuum
effects on it in order to circulate and re-circulate over the compounding lines and most
importantly to vacuum up the powder falling unto eductor funnels. If all throughout the
compounding process the pumps were made to run at its default operating parameters, the
powder stays at the bottom of the eductor funnels until such time the bottom part of the funnels
become clogged down. Indeed the main purpose of the pumps in the entire compounding process
is to vacuum up the powder, circulate and re-circulate them over compounding lines. Henceforth,
in order to fulfil its purpose, there should be a change of default operating setting of the pumps.
And this is what the researcher is trying to determine and introduce as part of the improvement in
On the other hand, the second and the last validated root cause which is because of fast
agitation speed, is prone to result in too long compounding time. The manufacturability of the
milk products exhibits a foamy characteristics even before an extreme agitation is introduce in
the compounding tank. Some of the milk formulae have maltodextrin in them, which by nature
turns the mix to become foamy. This condition and manufacturing characteristics of the mix are
aggravated by extreme/fast agitation speed. As a matter of fact, foamy mix can be avoided; foam
can be lessened or minimized; and compounding time in its entirety can be shortened. This is
regardless of the milk formula whether it has or has no maltodextrin in its formulation.
If one will to analyze why such nature of agitation and pump speed do contribute to the
current problem, one must begin with scrutinizing the manipulated operating parameters of these
factors.
Design of Improved Compounding Process
Manipulated Compounding Operating Parameters. As mentioned earlier, a
manipulation of the operating parameters of compounding process must be done so as to prove
that the default and existing operating parameters are ineffective ones. The researcher would also
like to reiterate that the present study is not after of the optimum operating parameters of the
compounding process but more rather on the parameters that will shorten the compounding time
so that Wet Process 2 would have a consistent attainment of asset intensity rating.
Compounding process is the one that needs improvement, and not any other processes.
Improvement will translate to the reduced compounding time.
Tables 8 to Table 12 which follow present the comparisons of default versus manipulated
operating parameters of compounding process, i.e. pump motor setting and compounding tank
agitator motor setting on five identified milk formulae. There were 7 different sets of
manipulated parameters. Every percentage setting of pump speed, there is a corresponding
agitation speed. The pump speed was set from 80 %( default) to 84% and the agitation speed was
set from 100% (default) to 60%. These sets of manipulated parameters hold true to all five milk
formulae. Each tandem setting was introduced to five compounds .The researcher has seen to it
that there would be a fair comparison for all observed milk formulae through equal number of
compounds.
Table 8
Comparisons of Default vs. Manipulated Operating Parameters of BPS
Compounding time (in No. of

Variable
minutes) compounds
Agitation
Pump speed
speed 1 2 3 4 5
(%)
(%)
Default 80% 100% 65 85 82 73 78 5
Bonakid
Pre- 82% 100% 67 78 80 69 72 5
school 82% 80% 52 56 59 64 65 5
(BPS) 82% 60% 44 47 50 48 45 5
84% 100% 74 71 68 65 75 5
84% 80% 58 55 61 57 60 5
84% 60% 38 35 42 42 40 5
Total 35
Table 8 shows that the respective default settings for pumps and agitator were 80% and
100%.From the above data presented, the settings 84% pump speed and 60% agitation speed
seemed to be the most effective operating parameters for Bonakid Pre-school.
Table 9
Comparisons of Default vs. Manipulated Operating Parameters of BML

Product Variable
minutes) compounds
Pump Agitation
speed speed 1 2 3 4 5
(%) (%)
Default 80% 100% 90 83 77 81 97 5
82% 100% 75 77 79 74 80 5
82% 80% 69 72 68 67 70 5
Bonamil 82% 60% 56 55 60 59 57 5
(BML)
84% 100% 73 70 71 74 76 5
84% 80% 67 62 65 68 64 5
84% 60% 53 51 50 50 54 5
Total 35
Table 9 shows the comparisons of default versus manipulated operating parameters of
Bonamil. The default parameters for pump and agitator were still 80% and 100% respectively. It
is obvious from the data presented above that the last settings namely 84% pump and 60%
agitator were by far the most effective operating parameters during compounding process.
It is also significant to pay attention to the fourth settings, i.e. 82% pump and 60%
agitator since it resulted to almost the same results with the most effective settings. A difference
of 3 minutes was thereby observed.
This is a manifestation that indeed milk formulae are of different manufacturability and
compounding characteristics. No single set of settings for pump and agitator will define the most
effective operating parameters that apply to all formulae.
Table 10
Comparisons of Default vs. Manipulated Operating Parameters of Bkd

Product Variable
minutes) compounds
Pump Agitation
(%) (%)
Default 80% 100% 95 90 94 88 93 5
82% 100% 85 78 78 75 77 5
82% 80% 72 70 69 69 67 5
Bonakid 82% 60% 57 59 54 53 58 5
(Bkd)
84% 100% 76 75 74 73 70 5
84% 80% 65 63 64 66 65 5
84% 60% 50 46 48 44 45 5
Total 35
Table 10 enumerates the manipulated operating parameters. The default settings during
compounding were also presented. The default setting for pump was 80% and for agitator was
100%.The most effective settings out of all those manipulations were 84% pump and 60%
agitator.
Table 11
Comparisons of Default vs. Manipulated Operating Parameters of PGG

Product Variable
minutes) compounds
Pump Agitation
(%) (%)
Default 80% 100% 85 104 105 88 82 5
82% 100% 72 70 71 68 70 5
Progress 82% 80% 54 52 50 53 53 5
Gold 82% 60% 46 45 45 47 44 5
(PGG) 84% 100% 82 86 78 75 80 5
84% 80% 76 72 70 73 71 5
84% 60% 55 54 50 57 59 5
Total 35
For PGG wherein default and operating parameters were tabulated in Table 11, the most
effective settings were 82 % for the pump and 80% for the agitation. The default operating
parameters were still at 80% pump speed and 100% agitation.
On the other hand, Table 12 presents the default settings, the manipulated settings with its
corresponding results in 35 compounds for Promil Kid. The most effective settings out of these
observations were 84% pump speed and 60% agitation.

The default settings of pumps speed and agitation speed yielded the highest compounding
time. And this translates to the longest compounding time that the Promil Kid (Pkd) has
undergone.
Table 12
Comparisons of Default vs. Manipulated Operating Parameters of Pkd

Product Variable
minutes) compounds
Pump
Agitation
speed 1 2 3 4 5
(%)
(%)
Default 80% 100% 116 113 104 102 102 5
82% 100% 93 69 72 75 78 5
Promil 82% 80% 63 65 67 64 65 5
Kid 82% 60% 59 58 59 55 60 5
(Pkd) 84% 100% 60 63 59 62 63 5
84% 80% 57 57 54 56 53 5
84% 60% 44 44 46 47 45 5
Total 35
Proposed Improvement of Compounding Process. The improvement the researcher
sought to introduce in the present study is the reduction of compounding time through
introduction of new operating parameters during compounding. This will replace the default
settings which seem to be the culprit of too long compounding time.
The first operating parameter that the researcher would like to improve is the pump motor
settings. It has been presented in the previous discussions and the most effective operating
parameters have been identified.

The second operating parameter that needs improvement is the compounding tank
agitator motor setting. The default setting of 100% only worsens the foamy characteristics of
every milk formula.
The manipulated operating parameters that were observed to be the most efficient
parameters would be the new bases of operating parameters whenever the milk products under
study are being produced. The researcher hereby summarizes the new and most efficient
operating parameters of five identified hard to produce milk products in Wyeth Philippines Inc.
Table 13 summarizes the most efficient operating parameters (pump setting and agitator
setting) for easy reference.
Table 13
Most Effective Operating Parameters of Selected Milk Products
Products Most Effective Operating

Average Compounding
Parameters Time (in minutes)
% Pump Speed % Agitation
Bonakid Pre-school (BPS) 84% 60% 39.4
Bonamil (BML) 84% 60% 51.6
Bonakid (Bkd) 84% 60% 46.6
Progress Gold (PGG) 82% 80% 52.4
Promil Kid ( Pkd) 84% 60% 45.2
The researcher has summarized the most effective operating parameters during
compounding of selected milk products in a table found in Table 8 with the corresponding
improved compounding time (average). A generalization could be made that certainly the default
(existing) operating parameters during compounding of these selected products were not the
most effective ones. Therefore an improvement of compounding process could be materialized if
there will be changes to the default operating parameters.
Improved Compounding Process. The improved flow process chart of compounding
process presented in Figure 6 shows that the events or steps have been reduced. Originally, there
were twenty three (23) events but these were trimmed down into sixteen (16) events. The
following events were stroked out from the chart because they may be either a redundant task
(meaning a task has been already performed by another operator) or the task is unnecessary task
that could have been eliminated if improvements to the existing operating parameters were
introduced: checking of availability and completeness of minerals; checking of manual valve of
FBT (fat blend tank); declogging of powder builds up in educator funnels; pounding the educator
funnels using rubber mallet; confirming the start of mineral addition; and checking of powder
builds up in educator funnels.
The events or steps of compounding process has been cut down to sixteen (16) namely:
starting of recipe; allocating powder hopper; allocating oil tank; checking the need for extra oil
tank; allocating compound tank; starting mixing and water addition at compound tank;
monitoring of compounding process up to completion; dosing of first dose of oil blend; adjusting
the pump speed; starting the dosing of powder; adjusting the agitation in compounding tank;
confirming end of mineral addition; dosing the second dose of oil blend; starting the timed-
agitation of mix at compounding tank; releasing the compounding tank; and finally,
accomplishing necessary forms like MI (manufacturing instruction) and FBT (fat blend tank)
card.
The monitoring of compounding process from the start up to its completion has been
reduced to 47.04 minutes. This is a 54% reduction from the original monitoring time of 86.83
minutes. It was due to the elimination of unnecessary steps and the introduction of new operating
parameters during compounding process.
The total time also of the events or steps is very significant. From 151.13 minutes which
represents the unimproved compounding process, it was lowered down to 70.09 minutes. The
latter time represents the total time after the proposed improvement have been introduced.
It can be notice also from the improved flow process chart in Figure 4 that the transport
event has been eliminated. The delays were also eliminated from the process. The total
operations have been eased down into fifteen (15). By eliminating the transport events and
delays, the 385 feet which an operator has to travel was also eliminated.
The improvements would be a much relief in the part of the operator for his tasks are now
streamlined. The redundant task were already pinpointed and eliminated. The burden of
declogging powder builds as well as the distance he has to travel from the panel / monitoring
room will now be disregarded.
The manipulation of operating parameters during compounding process speeds up
compounding time. It also eliminated delays and unnecessary tasks and transports. Indeed,
liberating the compounding set up from its default operating parameters will result to better
compounding time and an improved compounding process.

Location: Wyeth Philippines Inc. Summary
Activity: Compounding Process Event
Present Proposed Savings
Date: Operation 17 15 2
Operator: Analyst: Transport 2 0 2
Encircle appropriate method and type Delay 2 0 2
Method : Present Proposed Inspection 2 1 1
Type: Material Man Machine Storage 0 0 0
151.13 70.09 81.04

Time (min)
min min min
Remarks:
Distance
Time for compounding monitoring is the average time 85 ft 0 85ft
(ft)
of improved compounding process time durations.
Event Description Symbols Time Distance Method

(min) (ft) Recommendation
Start recipe 0.5 _ _
Allocate hopper powder 0.5 _ _
Allocate oil tank 0.5 _ _
Check if extra oil tank is

0.3
needed _ _
Allocate compound tank 0.5 _ _
Start mixing and water

0.75
addition _ _
Monitor compounding from

47.04
this point up to end _ _
Dose first dose of oil blend 5 _ _

Adjust pump speed 0.5 _ _
Start powder dosing 0.5 _ _
Adjust agitation 0.5 _ _
Confirm end of mineral

0.5
addition _ _
Dose the second dose of oil 7 _ _
Start timed-agitation at
0.5
compound tank _ _
Release compound tank 0.5 _ _
Accomplish MI and FB
5
tank card _ _
Figure 6. Proposed Flow Process Chart
Development of the Improved Compounding Process
Improved Compounding Process Chart. The compounding process has now made
simplified by eliminating unnecessary tasks and improved some technical aspects of it. The
process was made shorter and simple as shown in Figure 7.
The compounding process starts when an operator runs the recipe on the HMI (human-
machine interface). The recipe is an uploaded program wherein the quantity of bulk powder,
minerals, the right dosages of oil blend, the water quantity and the timing of each step of the
process were pre-loaded already. When the recipe is started, questions are then pop up on the
interface and the operator will just have to answer it right.
After starting the recipe, the operator will now allocate the powder hopper. There are two
powder hoppers available: Hopper 821 and Hopper 822. Usually the hopper 821 corresponds to
first and third compound of the process order, while hopper 821 corresponds to the second and
fourth compound. Operator should pay extra careful in the selection since a first dumped first to
compound policy is observed.
The next step is to allocate the oil tank to be used. There are three (3) fat blend tanks and
different oils for specific milk product might be prepared. The earliest oil blend preparation must
be used. The operator must check whether the allocated oil tank has a blend enough for a
compound. If upon his computation the total quantity of oil will fall short for one compound,
then the operator is required to allocate again for another tank that will supplement to the
previous allocation.
After oil tank allocation, the operator must now allocate the compound tank to be used. In
the pop up question over the HMI, there are two tanks: T072 and T073. The operator should
choose the compound tank that is first to expire.
Then after the compound tank has been allocated, the mixing and the water addition in
compound tank must be started. The mixing and water addition will last until the last ingredient
of the compound mix has been added. This requires keen monitoring of temperature of water
being dosed and the simultaneous pumping of dissolved minerals into compound tank. And that
monitoring will start right from this point until the end of compounding process.
Dosing the first dose of oil blend is the next step. This is done by the system
automatically when the proper amount of water has been dosed in the compound tank. What the
operator will do here is to monitor and verify if the right amount of oil was dosed.
Next step is to adjust the pump motor speed into its appropriate settings. This step is very
important in order to create enough vacuum effect over eductor and compounding lines. This
adjustment also is anticipation to the powder that will be falling from the powder hopper to
eductor funnels and be wet and circulated over the circulating pipes. Therefore the next step after
the pump motor speed adjustment is to start the powder dosing.
Once the powder dosing has been started, the operator must now adjust the percentage
agitation of compound tank agitator. This action soothes out the agitation inside the compound
tank and as a result, the foam of the mix is controlled.
Then the operator should see to it that all the powder on the hopper has been added, wet
and circulated over the compounding tank. The water addition has stopped at this moment; the
target water quantity has been achieved. And of course all minerals must be added before the
operator can confirm the end of mineral addition.
Fourth to the last step is the dosing of the second dose of oil blend. This completes the
total oil requirement of a compound. Again the system will be the one to initiate the dosing of
the oil blend and the operator will only have to ascertain that the right quantity has been dosed by
the system.
Then the operator starts the timed-agitation at compounding tank. Normally the time
must be set at 10 minutes. This duration is just enough to queue the compound tank for
processing line (pasteurization). After this timed-agitation, the operator should release the
compound tank to officially queue it for processing at HTST for pasteurization.
The last step is the accomplishing of manufacturing instruction and fat blend tank card.
This is part of the business continuity plan of the company in case the retrievable records in data
base fail. And that ends the compounding process.

Start
Start recipe
Allocate powder hopper
Allocate oil tank
Check if extra oil tank is needed
Allocate compound tank
Start mixing and water addition
Monitor compounding from this point up to end
Dose the first dose of oil blend
Adjust pump speed
Start powder dosing
Adjust agitation
Confirm end of mineral addition
Dose the second dose of oil
Start timed-agitation at compound tank
Release compound tank
Accomplish MI and FB tank card
End
Figure 7. Improved Compounding Process Chart

Improved Asset Intensity. The improvement of asset intensity rating (reliability of the
line) is dependent to how much the compounding process has been significantly improved. The
reduction of compounding time duration could be translated into the consistent attainment of
asset intensity.
The data presented in Table 14 below shows the consistent attainment of asset intensity
(AI) rating of Wet Process 2.The months of October, November and December were the months
wherein improvements to the existing operating parameters were introduced during
compounding process. The improvement of compounding process has led to the attainment of AI
in a consistent fashion. It is therefore suffice to say that prolong compounding time is what
causes inconsistent AI. And at the same manner an improved AI is relative to the improved
Table 14
Improved Asset Intensity Rating
Months (2015) % Asset Intensity (Target: >/= 56.8%)
October 73.80%
November 66.50%
December 64.70%
Evaluation
The data and information gathered by the researcher were found very helpful and were
considered very relevant to the study being proposed. These gathered data and information has
become an instrument for the researcher to investigate further the areas where the existing
compounding process was in need of improvements and also for the benefit of the researcher to
draw up supported conclusions and recommendations.
Cost Benefit Analysis. Part of the improvement of the compounding process is savings
for the company in terms of energy utilization and the maximization of the compounding line.
Idle time and unnecessary delays during compounding process once eliminated, would create an
unhampered production runs.
Table 15
Percentage Reduction of Agitator Motor Power Consumption
% Agitation
Products Difference Results
Present Proposed
Bonakid Pre- 100% 60% 40%
school (BPS)
Bonamil 100% 60% 40%
(BML) The improved % setting of agitation during
Bonakid 100% 60% 40% the entire compounding process would reduce
(Bkd) the power consumption of agitator by 20% to
Progress 100% 80% 20% 40%.
Gold (PGG)
Promil Kid ( 100% 60% 40%
Pkd)
Monetary equivalents of the above percentage reduction in agitator motor consumption
per month can be computed using the rule of thumb for agitation versus power ratios for liquid
batches (compounding process is considered as a liquid batch having an 18 000 liters produced
mix per compound tank). The data for compounding time and the current rate per kilowatt hour
are also needed.
Table 16 below shows the rule of thumb for agitation versus power ratios for liquid
batches. The current compounding process by the way was categorized as having a vigorous type
of agitation.
Table 16
Agitation versus Power Ratio
Power Ratio
Agitation
(Hp/ 1000 Galloons)
Mild 0.5 – 1.0
Vigorous 2–3
Intensive 4 – 10
In order to show the monetary equivalents of saved agitator power consumption, the
Table 16 is hereby presented. Computing using the Table 16 as a guide and having P8.51 per
kilowatt hour as an existing provider’s power rate, the researcher has led to the presentations in
Table 17.
Table 17
Saved Power Cost Computation per Compound
Products Average Compounding Computed % Agitation

Cost Savings per
(18 tons per Time (Unimproved Power Consumption
Compound
compound) time in hour ) Consumption Saved
(in pesos)
(10.4 kW/hr)
BPS 69.29 min (1.15 hr) 11.96 40% P 40.71
BML 73.85 min (1.23 hr) 12.79 40% P 43.54
Bkd 86.5 min (1.44 hr) 14.98 40% P 51.00
PGG 96.80 min (1.61 hr) 16.74 20% P 28.49
Pkd 107.70 min (1.80 hr) 18.72 40% P 63.72
Another benefit of having a reduced compounding time is that the line is now made
available for continuous compounding process. The concept of asset intensity is not only the
consistency of the compounding line but also the maximization of the efficiency of the line.
Hence a reduced compounding time would definitely mean that the time during compounding
process is shortened to produce more. Consequently, a prolong compounding time would mean
as deprivation to produce more.
Table 18 shows the cost computation of liquid mixes in terms of volume per product that
were used to be compromised (meaning not produced at the right time due to delay of too long
compounding time).
Table 18
Cost Computation per Kg of Milk Powder
Volume of Compounded Mix in Kg of

Total Cost
Product an 8- hour shift work (in Kg) Difference Powder
(in pesos)
Present Proposed Produced
BPS 101 340 178 200 76 860 30744 P 16 832.34
BML 95 040 136 080 41 040 16 416 P 9 247.68
Bkd 81 180 150 660 69 480 27792 P 14 845.36
PGG 72 540 133 920 61 380 24552 P 24 770.24
Pkd 65 160 155 340 90 180 36 072 P 25 230.36
The computations made in Table 18 were based on the following suppositions: kg of
powder produced is 40% of the liquid mix volume differences; total cost were based from the
current pricelist of a 900g tin can of each milk formula (Bkd costs 480.75 pesos, PGG - 908
pesos, BPS - 492.75 pesos, BML - 507 pesos, and Pkd – 629.50 pesos); the 1.5 hours in an 8-
hour shift work was allocated for preparations so the assumption was that the compounding line
was idle for one and a half hour.
The last column of Table 18 represents the total amount that would be lost if the present
operating parameters are still used during compounding for an 8-hour shift work. The costs that
were presented were just for a single shifting or crew. Note that in Wet Process 2 there are 4
shifts or crews. A per daily total costs can therefore be easily computed if necessary.
Survey Evaluation Result. The researcher summarized the result of the survey given to
32 respondents of Wet Process 2. Efficiency, Effectiveness and Cost were among the criteria by
which the respondents were asked to rate. The efficiency criterion answered how good the
project is in terms of the usage or utilization of the company resources. The effectiveness
criterion answered how the proposed study meets its objectives. And lastly the cost criterion
answered the cost savings and cost benefits of the proposed study.
The ratings given by the respondents were interpreted by the researcher using the
modified Likert scale (see Table 1). The first category under efficiency, all respondents said they
were highly satisfied that the improved process has consistently attained the target AI (asset
intensity). In the second category under efficiency, there were 30 who said they were highly
satisfied and the remaining 2 respondents said that they were only satisfied. The third category
under efficiency, there all respondents said they were highly satisfied. The last category of
efficiency yielded 23 highly satisfied respondents, 3 satisfied, and 6 who were less satisfied. The
overall rating for the efficiency still falls under highly satisfied. Under effectiveness of the
proposed study, the respondents were first asked whether the study really lessens the production
delays and 100% of them responded they were highly satisfied. In the second category as part
still of the effectiveness of the study, the respondents were then asked if it actually eases out the
forecasting of product runs. There were 29 out of 32 respondents answered they were highly
satisfied, while the remaining 3 respondents said they were just satisfied with the result. The last
category under effectiveness has gotten all 32 respondents saying they were highly satisfied.
Finally, under cost category the researcher asked whether the improved process can reduce the
cost of production. There were 81% who answered they were highly satisfied while 19% of the
respondents said they were only satisfied with the result.

The over-all mean was computed to be 4.89 and this actually means that the respondents
were highly satisfied with the improved compounding process in terms of efficiency,
Table 19
Survey Result
Summary of Findings
The present researcher of the study was able to recognize what really caused the
inconsistent asset intensity attainment of Wet Process 2. The said problem has been encountered
for several months already since the time from which the said key performance measure was
incepted. This was a serious dilemma of the department then since asset intensity status would
define how the compounding lines have been utilized. The results of AI attainment, whether it is
pass or fail, should always be subjected to scrutiny.
To address the issue of inconsistent asset intensity attainment, the researcher had
designed an improved compounding process which was believed to be the primary solution to
the problem at bar. During the design phase of the study, the researcher found some industrial
engineering tools very useful. The use of flow chart and flow process chart has defined the areas
where issues exist and led for the conduct of objective analyses to identify problems,
weaknesses, unnecessary steps and even duplications of the steps. The fishbone and 5 why
analysis which served as tandem tools in evaluating and selecting ideas in terms of substance and
practicality, were very useful in the analysis of possible root causes and their validation as true
root cause of the problem. By means of these engineering tools, the researcher has come up with
the design of the improved compounding process which tackled more on the reduction of
compounding time.
The researcher, with the aim of improving the compounding process, has designed to
purposely introduce manipulations of operating parameters during the compounding of identified
hard-to-produce milk formulae. These operating parameters were the percentage of pump speed
and agitator motor speed of the compound tank. It was only through manipulations that the
researcher was able to determine the most effective operating parameters each milk formula
should have.
The improved compounding process was developed by making the compounding process
flow simplified through elimination of unnecessary tasks and improvement of technical setups
during compounding. The designed manipulations of operating parameters were initiated and
have resulted to favourable outcomes.
Finally, in order to assess the impact of the proposed study in terms of its efficiency,
effectiveness and in reduction of cost, the present researcher has initiated a survey. An overall
4.92 rating was recorded and this represents the majority of the 32 respondents in totally who
said they were highly satisfied by the improved process.

Unit V
Conclusions and Recommendations
This unit presents the generalizations and valid outgrowth upon the findings. It will also
answer the stated problems and objectives that were enumerated at the beginning of the study.
Furthermore, this unit includes suggestions and recommendations to anticipate the constraints
that future researchers might encountered as well.
Conclusions
The researcher has come to conclude after the data gathering, its analyses and validations,
and the utilization of appropriate assessment tools relative to the present study. These
conclusions are enumerated as follows:
1. The researcher had designed an improved compounding process which was considered to
be the main solution to the problem of inconsistent attainment of asset intensity rating of
Wet Process 2. The design was based on the intentions of reducing compounding time,
simplifying the compounding process and eliminating redundant tasks which tend to
prolong the compounding process. Some industrial engineering tools were found very
useful. The use of flow chart and flow process chart has exposed the areas where
improvements were needed. The fishbone and 5 why analysis were very practical in the
analysis of possible root causes and their validation as true root cause of the problem. By
means of these engineering tools, the researcher has come up with the design of the
improved compounding process which tackled more on the reduction of compounding

time, with simplified steps and redundant-free procedures so that asset intensity would be
improved.
2. The present researcher has developed the improved compounding process by introducing
manipulations of operating parameters during the compounding of identified hard-to-
produce milk formulae. These operating parameters were the percentage of pump speed
and agitator motor speed of the compound tank. It was only through manipulations that
the researcher was able to determine the most effective operating parameters that each
milk formula should have. There is no single set of operating parameters that will suit to
all indentified as hard-to-produce milk formula due to their unique compounding
properties and characteristics during compounding process. An operating parameter
which works best in one formula may work worst to other formulae.
3. The designed and improved compounding process was evaluated as efficient, effective
and was able to reduce the cost of production. The overall rating resulted out of the
survey was indicative of high satisfaction of the respondents in terms of efficiency,
Recommendations
After thorough research this present study has gone through, the researcher believed that
the following recommendations which are practical, feasible and attainable will uphold to seek
remedies to unfavourable conditions encountered:
1. The designed and improved compounding process must be run through in Wet Process
2.The most effective manipulated operating parameters identified in this study must be
incorporated into the automatic system (recipe-driven system) so that these would be the
new default operating parameters. Moreover it will now be made common to all crews
(Crew A, B, C, D).This will ease more the burden of operator to adjust the parameters to
the most effective settings every time a compounding process is started. Although the
quality of the compounded mix was never compromised during the manipulations of the
operating parameters, continuous observation and evaluation of the finished product were
highly recommended.
2. It was clear to the researcher that the main objective of the present study is to reduce the
compounding time so that the compounding process would not exceed the set standard
runtime. And the objective has been achieved and the most effective operating
parameters for every formula have been identified. However the researcher has fallen
short of enough number of observable compounds to determine the optimum operating
parameters. It is now therefore a challenge to future researchers to investigate and
determine the optimum operating parameters for each identified milk formula, free from
any constraints like limited number of compounds to be observed, etc.
3. Further researches must be undertaken to determine the most effective or even the
optimum operating parameters of other milk formulae mentioned nevertheless were not
included in the present study. The present researcher made mentions of all identified
hard-to-produce milk products (seven products in totality) in Wet Process 2. But due to
the constraints as presented by the researcher under scope and limitation, only five of
them were studied, observed and evaluated. The products the researcher referring to are
Progress Preschool and Promil Preschool.

References
Caringal, A. (2015). Process Improvement of Handling Copper Powder at IPI. Manuel S.
Enverga University Foundation.Unpublished Undergraduate Thesis.
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Inc. Manuel S. Enverga University Foundation.Unpublished Undergraduate Thesis.
Daim, A. T. (2010). Time and Motion Study in Determination of Time Standard in Manpower
Process. Malaysia: Universite Tun Hussein Onn Press.
E. Villenas, M. C. (2010). Improvement of Line Efficiency through Line Balancing at Marva's
Garment Company. Manuel S. Enverga University Fondation.Unpublished
Undergraduate Thesis.
F. Mauri, M. C. (2010). A Structured Approach to Process Improvement in Manufacturing
Systems. International Journal of Production Research.
Farook, M. (2011). A Study on Identifying Significant Factors Affecting Production Line
Efficiency in the Local Apparel Industry using Multiple Linear Regression. International
Journal of Production Research.
Galvez, L. (2011). Standardization of Processing Parameters for Inhibitions of Browning in
Dehydrated Jackfruit Pulp. University of the Philippines Los Banos. Unpublished
Undergraduate Thesis.
Johnson, G. (2013). Making Downtime Pay. Austrilia: The Workd Coal.
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Milk Manufacturing. (n.d.). Retrieved from www.fda.gov: https://www.fda.gov
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beta.tutor2u.net
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Jersey: Pearson FT Press.
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Appendices
Appendix A
Survey Form
Improved Compounding Process at WP2
Name: (optional) ______________________ Designation:_________________
Department: _________________________ Crew: _________________
Background:
WP2 has been attaining an inconsistent AI target ever since the launching of Asset
intensity on March 2014. The researcher has come up with the improved compounding process
to address this inconsistency.
General Instruction: Kindly rate each category by checking the appropriate column. Use the
following value interpretations for your ratings. You may also put your remarks.
Value Interpretations:
5- Highly Satisfied 4- Satisfied 3- Less Satisfied
2- Dissatisfied 1-Highly Dissatisfied
Highly Less Highly

Category Satisfied Satisfied Satisfied Dissatisfied Dissatisfied
5 4 3 2 1
1. Efficiency
a. The improved process
consistently attains Asset
Intensity.
b. Required runtime per

product is consistently
met.
c. The improved process
has eliminated redundant
tasks.
2. Effectiveness
lessens product run
delays.
b. The improved process

eases out forecasting of
product runs.
c. The improved process

shortens the
compounding time.
3. Cost
reduces the cost of
process.
Table of Interpretations
Numerical Value Range Qualitative Description
5 4.21-5.00 Highly satisfied
4 3.41-4.20 Satisfied
3 2.61-3.40 Less satisfied
2 1.81-2.60 Dissatisfied
1 1.00-1.80 Highly dissatisfied
Remarks:______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________
Appendix B
Project Gantt Chart
PROJECT GANTT CHART

Appendix C
Transmittal Letter
March 2016
Dr. Guillermo M. Rago, Jr.

Dean,College of Engineering and Technical Department
Lucena City
Dear Mr. Rago:
Greetings of peace!
In partial fulfilment of the requirements for the degree of Bachelor of Science in Industrial
Engineering, I hereby present and transmit to you this project study entitled “Improvement of
Compounding Process at Wyeth Philippines Inc.” for your suggestions and perusal.
It is an honor and privilege that you have granted the researcher the permission to conduct the
study and effort it out through completion.
Respectfully yours,
Ariel B. Bueno
Bachelor of Science in Industrial Engineering
ETEEAP
Curriculum Vitae
ARIEL B. BUENO
Blk 2 Lot 23 Tierra Sueño Subd,
Brgy. Milagrosa, Calamba City, Laguna
09081556076
ariel_bueno7@yahoo.com.ph
PROFESSIONAL OBJECTIVE
A highly motivated, hardworking and versatile individual whose aim is to be

connected to a company that further hones potentials and gives opportunities for
professional and personal growth.
EDUCATIONAL BACKGROUND
Tertiary Bachelor of Science in Industrial Engineering

College of Engineering and Technical Department
Lucena City
2016
Bachelor of Science in Automotive Technology, Cum Laude

Bicol University College of Industrial Technology
Legazpi City
2007
Secondary Tabaco National High School, With High Honors

Tabaco City
2003
Primary Mariroc Elementary School, 2nd Honorable Mention

Tabaco City
1999
WORK EXPERIENCES
2008-present Wyeth Philippines Inc., Cabuyao, Laguna

Production Operator
Job Responsibilities include:
 Ensures that the physical and chemical qualities of raw materials and
products are always maintained within standard specifications.
 Completes all required documentation.
 Performs cleaning and Cleaning-in-Place (CIP) activities of equipment in
accordance with standard sanitation procedures and safety practices.
 Constantly monitors the inventory of raw materials, packaging materials,
liquid mixes, and finished goods in his respective area. Ensure that production
throughput is within the allowable yield limits.
 Performs minor repair, troubleshooting and maintenance of machines such as
oiling and cleaning as necessary.
 Performs other tasks that may be assigned from time to time.
2007-2008 Shin-Etsu Magnetics Philippines, Inc., Biñan, Laguna
Production Group Leader
 Assists technician in training and supervising operators, monitors machine
conditions and production schedules to meet production objectives while
maintaining the quality standard.
 Performs daily validation of accuracy and checking of calibration stickers of all
measuring equipment in the area to ensure accuracy before use.
 Conducts set-up and changeover activities as per production schedule.
 Responsible in acquiring consumable and raw materials needed in the
process.
 Conducts daily inventory of magnet in the process area.
 Checks production reports and other documents prepared by operators in the
section to verify its veracity.
 Performs process troubleshooting and coordinates to technician any
production related issues and implement solutions.
May 2006 Toyota Cubao Inc., 926 Aurora Blvd. Cubao, Quezon City
On-the-job Trainee

 Conducts auto detailing and troubleshooting with technicians
 Records performed servicing to job order form.

 Maintains orderliness and cleanliness of the work area.
STUDY GRANTS AND SCHOLARSHIPS

 DOST Scholarship
 Bicol University Academic Scholarship
 CHED Scholarship
AWARDS, CERTIFICATIONS AND ELIGIBILITY

 Civil Service Eligibility (PD 907)
 Academic Excellence in Science Award given by DOST
 Certified First Aider
 Certified Emergency Response Team Member
 Senior Technician
LEADERSHIP ROLES AND TRAININGS
President (2005-2006) Society of Automotive Technologists

Bicol University College of Industrial Technology, Legazpi City
Facilitator (2006-2007) Sports Club

Bicol University College of Industrial Technology, Legazpi City
College Coordinator Bible Readers’ Society, BU Chapter

(2006-2007) Bicol University College of Industrial Technology, Legazpi City
College Representative 31st YMCA National Congress of College Student

(2005) Teachers’ camp, Baguio City
Delegate (2005) 3rd Student Governance Training

Tanchuling Beach resort, Bacacay, Albay
Participant (2008) Leadership Excellence Course

Shinetsu Magnetics Philippines, Biñan, Laguna
Battalion S2 (2002) Cadet Officers Leadership Training

Tabaco National High School, Tabaco City
Participant (2006) Student Leaders Forum on Rapu-rapu Mining

Bicol University Amphitheater, Legazpi City
President (2002) Junior Purok Officership

Brgy. Mariroc, Tabaco City
PERSONAL DATA
Date of birth : July 6, 1986

Place of birth : Tabaco City
Civil status : Single
Religion : Roman Catholic
Nationality : Filipino
Height : 5’6 in
Weight : 60 kls.
Gender : Male
Age : 29
I hereby certify that the above information are true and correct to the best of my
knowledge and belief.
ARIEL B. BUENO

Improvement of Compounding Process at Wyeth Philippines Inc.

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Improvement of Compounding Process at Wyeth Philippines Inc.

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PROCESS IMPROVEMENT

Improvement of Compounding Process at Wyeth Philippines Inc.

Presented to the Faculty of the

College of Engineering and Technical Department

Manuel S. Enverga University Foundation

In Partial Fulfilment of the Requirements

for the Degree of

Bachelor of Science in Industrial Engineering

Expanded Tertiary Education Equivalency and Accreditation Program

This project study entitled:

“Improvement of Compounding Process at Wyeth Philippines Inc.”

recommended for acceptance and approval for Final Examination.

Engr. James Louie R. Meneses

Approved by the Committee on Oral Examination with a grade of ________ %.

Guillermo M. Rago Jr., Ed D., CE

Engr. Gervin S. Espinosa Engr. Luzviminda D. Sinapilo

Dr. Benilda N. Villenas

Accepted in partial fulfilment of the requirements for the Bachelor of Science in

Industrial Engineering (ETEAAP).

Guillermo M. Rago Jr., Ed D., CE

sincere gratitude to the following:

data presentation and analysis of the present study.

study. The Researcher

always to try one more time.”

This project study is affectionately dedicated to my father who once believed to

my dream that I should be telling you to be proud of me once more, even

happiness as me knowing what your favourite son

To my mother who has been serving as an inspiration, a blessing and a reason

why I should keep chasing my ambitions.

and efforts and accompanied me to another

memorable journey of my life.

And above all,

to the Almighty God for with His love and guidance

I was able to achieve this goal.

Approval Sheet ……………………………………………………………………………………2

Table of Contents …………………………………………………………………………………5

List of Tables ……………………………………………………………………………………..7

List of Figures …………………………………………………………………………………….8

Background of the Study …………………………………………………………..........10

Objectives of the Study ………………………………………………………………….12

Conceptual Framework ………………………………………………………………….12

Scope and Limitations …………………………………………………………………...14

Significance of the Study ………………………………………………………………..15

Definition of Terms ……………………………………………………………………...16

Unit III. Methods and Procedures ……………………………………………………………….42

Research Design …………………………………………………………………………42

Research Environment …………………………………………………………………..43

Design Concepts ………………………………………………………………………...49

Unit IV. Results and Discussions ………………………………………………………………..52

Data Gathering …………………………………………………………………………..52

Data Analysis ……………………………………………………………………………63

Design of Improved Process …………………………………………………………….70

Development of the Improved Process ………………………………………………….79

Summary of Findings ……………………………………………………………….......90

Unit V. Conclusions and Recommendations ……………………………………………………92

A. Survey Form …………………………………………………………………………97

B. Project Gantt Chart ………………………………………………………………….99

C. Transmittal Letter …………………………………………………………………..100

Curriculum Vitae ………………………………………………………………………………101

Table No. Title Page

1 Modified Likert Scale ………………………………………………….........48

2 Average Compounding Time versus Average Processing Time ………........56