A system study on K-Lift Industrial Corporation

This study focused on the company, K-Lift Industrial Corporation, which is a company dedicated to distributing forklift trucks and other machine parts, particularly for material handling equipment. The study was conducted in their main office and warehouse in Pasay City, with a study period of August 2016 to January 2017, a total of 20 months. The company was first evaluated through the use of a SWOT analysis and a WOT-SURG analysis to determine which is the most prominent problem. Through this, it was found out that K-Lift Industrial experiences a deviation in the service fulfillment rate, which is below the standard by 24.65% resulting to a total cost of Php436,500 per year. The standard for the service fulfilment rate set by the company was found to be 90% however, the company only meets 65.36%. The problem was further studied by utilizing a why-why diagram in order to determine the root cause of the problem. There were five (5) final root causes identified and validated. Given these root causes, there were five (5) solutions implemented, namely, establishment of a process that would be updating the superseded part numbers in the system, 5S housekeeping system, job rotation, monthly inventory review, and the utilization of the warehouse team to check and monitor the product details. Total investment costs incurred for all these solution amounts to Php75,528.00 and total recurring costs per month amounts to Php2,994.50. however, total monthly benefits would sum up to Php31,047.41. given this, these solutions were implemented in the company and an initial dry run was executed for the implementation of a process that updates superseded part numbers, 5S housekeeping and job rotation