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I. COMPANY PROFILE Company Name

(Not the real name of the company as requested by the management for confidential purposes)

: STL Corporation VISMIN

Location : Mandaue City Contact Person : Arch. Giovanni Francis Tabuar Palisoc Position Title : Plant Manager Contact No. : (032)3449915 Fax No. : (032)3458227 E-mail Address : italianofjohn@yahoo.com.ph Nature of business : Construction Industry

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II. HISTORY
STL Corporation was established in 19xx. The company set-up the first galvanizing plant in the Philippines in answer to the need of the country for galvanized iron sheets to be used in construction, building and roofing materials. The pioneering efforts in sheet galvanizing and establishment of STL not only contributed to the industrialization program of the Philippine government but also saved the country much needed foreign exchange. It was a dollar-saving industry which boosted the international dollar reserves of the country allowing the government to utilize the dollar savings in importing other necessary items for nation building. STLs founder received from Philippine President Carlos P. Garcia in 1961 the Philippine Legion of Honor Award, for achievements as pioneer industrialist. The award is the highest decoration the Philippine government bestows on its citizen. STL is managed by third and fourth generation members of the organizing family. STL Corporation, in its continued commitment to innovation, has established the first-ever-state-of-the-art continuous galvanizing line. This new plant was allowed the company to offer superior quality galvanized sheet and coils using the modern technology of a non-oxidizing furnace. The technology of STL Corporation has catapulted the countrys steel galvanizing industry to a level at par with developed countries such as Korea, Taiwan, Japan, United States and Europe. This innovative galvanizing plant has a capacity of 150,000 metric tons/year

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STLs non-oxidizing furnace type of galvanizing has definite advantages over traditional flux-type galvanizing, a technology being utilized by most galvanizers in the country. The difference is evident in X (STLs well-known brand) quality in terms of superior corrosion protection, extraordinary formability and drawability, paintability and excellent weldability. These galvanized products are particularly suited for applications involving deep drawing, press forming, profiling and multiple severe bending. X has able to take the most severe deformation with virtually no cracking or flaking, a world class quality that is now available in the country. This project will complement our governments national objective of building a fully integrated steel production facility by creating downstream demand for raw materials, thus hastening its development. The availability of world-class galvanized materials such as X supports other local downstream industries particularly housing, construction, appliances, AUV/bus bodies, steel fabrication, airconducting and steel decking and other metal working industries in developing equally high-value steel products. STLs modernization and expansion project is in response to our governments call for local companies to achieve global competitiveness stature. STLs equipment supplier, who has played a pivotal role in realizing its vision of revolutionizing the local steel industry is the worlds leading metallurgical engineering designer, Cockerill Mechanical Industries or CMI is part of CockerillSambre Group, the largest flatsheet galvanized products manufacturer in Europe and is among the top five galvanizers in the world. This project bring us together not only the latest and most modern manufacturing facilities but also the knowhow and technology to produce world-class galvanized products in the Philippines such as X . This project, having been registered by the Board of Investments as a pioneer venture because of the manufacturing technology, will receive incentives and privileges in line with the Iron and Steel Act (R.A. 7103) which has now been incorporated in the 1995 Investment Priorities Plan.

VISION
To be a premier world class manufacturer of coated steel products in the Philippines and in the Asia pacific region. We exist because: Customers - are the cornerstones of our business, we shall serve them with the highest level of care, exerting all efforts to exceed customer satisfaction and focused on delivering superior consumer value. Employees - are our greatest assets. We shall provide them the opportunity to Hone up their skills, attain career growth and realize their full potential. We

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shall build a dynamic organization driven by common goals and values, sharing competencies and practicing sound business ethics. Owner - We shall endeavor to attain a profitable planned growth for the company ensuring our stock holders a reasonable return for their investments.

Community - we shall be a responsible corporate citizen cognizant of our social responsibilities. We will uphold the principle of respect and cooperation with vested authority. We will be concern with the welfare of the community where we live and conduct business.

MISSION STATEMENT
We are committed to deliver the highest quality of coated steel products and provide best services to our valued customers. We shall endeavor to be a dependable supplier for downstream steel industries in term of supply reliability, price competitiveness and service delivery. Quality policy World class quality through customer satisfaction We the management and staff of XYZ Steel Corporation aim to provide products and services which will satisfy our customer requirements. To achieve these objectives, it is our policy to maintain efficient and effective quality assurance program, planned and developed in conjunction with the function of the organization. It is then the responsible of our organization to ensure that this quality assurance program shall be carried out effectively, continuously adequate, well understood and practiced by all.

(See attachments in the next page)

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*THE PLANT LOCATION

Legend: Area Corporation Located XYZ from Philippines map where the STL Corporation Located

*THE GEOGRAPHICAL& VICINITY OF THE COMPANY

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III. STL COMPANYS FLOW CHART

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RECEIVING TO INVENTORY PROCESS FLOW CHART Receiving of Materials Issuance of Materials Checking of Stocks Release for delivery / shipment Prepare Weekly Inventory Report Delivery of Materials Physical Inventory Reporting &

Receive Bill of Lading WAREHOUSE DEPARTMENT

Unloading & Physical Counting

Availability of Materials YES Prepare WISS

NO

EDSA Production Request

MIRR

Preparation of MIRR

Weekly Inventory Report

Issue WISS

WISS

PRODUCTION DEPARTMENT

Production Process

Furnish Daily Production Report

Production Accomplish ment Report

ACCOUNTING DEPARTMENT

Checking of Production Accomplish ment Report

Production Accomplish ment Report

Sign the delivery receipt

Delivery Receipt

PLANT MANAGER

Approve Production Accomplish ment Report

Production Accomplish ment Report

Sign the delivery receipt

Delivery Receipt

Record the Report as reference for delivery of materials

Check Produced materials

Prepare Delivery Receipt SALES DEPARTMENT

Unloading & Physical Counting Check / Inspect Loading of materials Facilitate delivery report Delivery Receipt

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IV. THE NARRATIVE

Para 1

Line Text 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 STL Company uses the following procedures in receiving the inventory. Warehouse department receives the Bill of Lading upon sending the goods. Upon receiving it, they unload and do the physical counting and in turn, leads them to the preparation of the MIRR. Based on the said MIRR, they will determine and check the stocks by knowing if there are any availability of materials. If there are no materials available, they will issue EDSA Production Request. Otherwise, they will prepare the WISS and issue a document about it. After the process made in the Warehouse department, the production department then will be accountablein production. After producing it, they will furnish and producethe daily production report and accomplishment report.After that, they will send it to the accounting department for them to double check the said accomplishment report. Continuously, they will send it to the plant manager for the direct approval. Right after the approval of the plant manager, the sales department will record the report as reference for delivery of materials. In delivering of materials, the Warehouse Department is responsible in releasing the delivery/shipment. After which, physical inventory and reporting shall be made by preparing the weekly inventory report. The Accounting Department will sign the delivery receipt followed by the Plant Manager who will do the same task. Lastly, the Sales Department should check the produced materials and prepare its delivery receipt. The unloading and physical counting should be done immediately and so the checking and inspecting the loading of materials. It will then facilitate the delivery report by producing the delivery receipt.

19 20 21 22 23 24 25 26 27 28 29

TABLE OF ENTITIES

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Warehouse Department

2 4 5 6 9

-Receive the Bill of Lading -Unloading and Physical Counting -Preparation of MIRR -Checking of Stocks -Prepare WISS * (If there are any availability of materials, proceed to the issuance of the WISS). -Production Process -Furnish of Daily Production Report* -Checking of the Production Accomplishment Report -Approve Production Accomplishment Report -Record the Report as reference for delivery of materials

Production Process Accounting Department Plant Manager Sales Department

11 12 15 16 18

RECEIVING AND ISSUANCE OF MATERIAL Delivery of Materials, Physical Inventory and Reporting Warehouse Department 20 22 22 23 24 25 26 27 28 29 -Release for the delivery or shipment -Prepare weekly inventory report -Sign the delivery receipt -Sign the delivery receipt -Prepare delivery receipt -Check produced materials -Unloading and physical counting -Check and inspect loading of materials -Facilitate delivery report -Delivery Receipt

Accounting Department Plant Manager Sales Department

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V. ACKNOWLEDGEMENT

The AC508 students would like to express their deepest and warmest gratitude to the following for their unconditional assistance which have all accounted for the completion of this research project. To Architect Giovanni Francis T. Palisoc, Plant and Administration Manager for the patience and supervision during the production tour even for the short notice given and for handing out company papers that will be useful for the accomplishment of the project. To Mr. Keith A. Ortega, Accounting OIC and Administration Officer for information regarding the accounting process of STL Corporation. To the management and staff of STL Corporation for the warm accommodation and hospitality given to the students during the visit conducted. To Mrs. Marilyn U. Cortes, CPA, MAIA for the guidance and support given to her students.

*** AC 508 (AIS) Students MW 1:30 3:00PM A.Y. 2011-2012

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VI. BIBLIOGRAPHY

Operations

Management

of

XYZ

Steel

Corporation:

Basis

for

Improvements (Abella, Karen S., Dejito, Louie G., Lomocs, Kennex Lyn B., Matidios, Analyn L., Villegas, Rhea Mae M.) http://www.puyatsteel.com
Cost Accounting, Carter, 14th edition Accounting Information System, Gelinas and Dull, 7th edition

***

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