The Pacific Arts and Decor International, Inc. is a manufacturer and exporter of rattan and wicker furniture. It\u27s head office is located at 3rd Floor-Atara Building 473 Alabang-Zapote Road, Almanza, Las Piñas. It\u27s factory and showroom is operating at Bo. Mataas na Sampaloc, Salawag, Dasmariñas, Cavite with 18500 square meter land area. PADI, Inc. is owned and operated by Mr. Emmanuel P. Padiernos. The company is a member of Chamber of Furniture Industries of the Philippines.
The company operates on a job order basis, wherein the production is determined by the quantity of orders receive. This means the company cannot forecast its demand for subsequent orders, they do not have any control as to how much, when, and what products to produce. The company does not need to produce for inventory.
The proponents of this study determined the problem of PADI, Inc. which is not being able to serve 5% of ordered Swan Collection Armchair by PIER 1 IMPORTS. This was determined with the use of the WOT-SURG analysis. After thorough investigations and careful analysis of gathered data, the scheduling system and monitoring system were the found causes of the problem. This was analyzed with the use of the Stream Diagram. The causes were further analyzed with work sampling on the workers in all of the sections of the Production Department. With the work sampling conducted, it was proven that most of the time the workers in each section are either idle or working on other product lines.
Time study on all the processes involved in the production of Swan Collection Armchair was also done. This time study was used to determine the standard time of producing a Swan Collection Armchair and to determine the capacity of the worker in each section. Through this, the total plant capacity was computed. The group found out that the workers are underutilized or optimal plant capacity was not achieved. This means the unserved orders should not have happened and opportunity cost should not have been incurred.
The group used the K-T Analysis in comparing and selecting the best alternative solution. In selecting among the alternative solution, the group set the the musts criteria and wants criteria. The musts criteria must have a scheduling and monitoring systems. The wants criteria include the availability of the resources such as manpower, computer, etc it should be easy to implement and lastly the cost less than P 100,000.00
The group\u27s solutions are scheduling system, monitoring system and optimal assignment of workers in the Sections of the Production Area. The scheduling system is Microsoft Excel based. It automatically computes the Required Output. The monitoring system composed of Q.A. Personnel having additional responsibility of supervising the workers in their respective section. The group reassigned 17 workers to other product lines.
With these solutions, the company can now schedule its received orders properly and can minimize or eliminate the problem of not serving 5.98% of ordered Swan Armchair Collection
