Operations Planning and Control (OPC) Practicum Thesis

CHAPTER I
THE PROBLEM AND ITS BACKGROUND

1.1 INTRODUCTION

Unilever is a multi-national consumer goods firm which is formed and

owned by British and Dutch business partners. The corporation is primarily based

in Rotterdam, Netherlands and London, United Kingdom since it is a dual-listed

company.

Its products include foods, beverages, cleaning agents, and personal care

merchandises. It owns over 400 brands of goods, amongst the largest selling of

which are Aviance, Axe/Lynx, Ben&Jerry's, Creamsilk, Dove, Flora/Becel,

Heartbrand, Hellmann's, Knorr, Lipton, Lux/Radox, Omo/Surf, Pond’s,

Rexona/Sure, Sunsilk, Toni&Guy, TRESemmé, Vaseline, VO5, and Wish-Bone.

These products emanate from different formulation, variant, and appearance.

Consistent with its developing networks, Unilever established their

companies in most continents all over the world. Philippines is one of the many

countries where Unilever has found opulent opportunity for huge investments and

employment.

Unilever serves as a manufacturer/supplier of home care and personal

care brands together with food classified products in the Philippines. Its

operations are subdivided into four companies: (1) Unilever Philippines, Inc. –

Home & Personal Care and Unilever Food Solutions division located at United

Nations Avenue, Paco, Manila; (2) Unilever RFM Ice Cream, also known as
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Selecta Factory, located at Manggahan Light Industrial Park, Manggahan, Pasig

City; (3) Unilever Foods – Dressing Factory division located at Gateway Business

Park, General Trias, Cavite.

Unilever Philippines, Inc. has a total land area of 10,500 square meters

which is mainly located in Paco, Manila. It employs over 2,000 employees

nationally. It has been a leader in introducing new technologies in the country

ever since its existence.

Unilever branch in Manila manages products which fall into three main

categories: Home Care, Personal Care (PC), and Food Solutions. Home Care

offers cleaning products used at households such as non-soap detergent (bar

and powder) and dishwashing liquid. Personal Care comes with products used

for hygienic purposes such as soap, shampoo and conditioner, facial cleanser,

toothpaste, body lotion, and deodorant. Under PC, there is a separate plant for

manufacturing of roll-on deodorants named as “Deos City”. Food Solutions caters

nutritious beverages and flavor enhancers such as iced tea, seasoning, and

mayonnaise.

Unilever branch in Cavite manages brands in two main groups: savoury,

dressings & spreads, and ice cream & beverages. Savoury, dressings and

spreads include variety of soups, sauces, snacks, mayonnaise, salad dressings,

olive oil, margarines, spreads, and cooking products, such as liquid margarines,

and some frozen foods. Ice cream and beverages include sales of ice cream,

tea, weight management products, and nutritionally enhanced staples.

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1.2 BACKGROUND OF THE STUDY

Unilever Philippines, Inc. manufactures home and personal care products

ranging from soap (Lux and Vaseline), shampoo and conditioner (Vaseline,

Sunsilk, and Creamsilk), facial cleanser (Pond’s), toothpaste (Close-Up), body

lotion (Vaseline), and deodorant (Axe and Rexona).

The demand for the company’s services to produce different variants of

roll-on deodorants is relatively high. The company cannot meet the job orders

because resources are being planned and managed inefficiently. Therefore,

actual demand does not meet the target output. The concentration of the study is

on the production of roll-on deodorants – Rexona Men Sport Defence RO (Roll-

on) 50mL. Male variants and export-made deodorants are produced in Line 2 of

Deos City Production Area. It is an export product of the company which

experience unavailability in raw materials (e.g. bottle and label), machine

downtime issues, delay in delivery, and production stoppages.

Rexona Men Sport Defence RO 50mL undergo the following processes:

preparation of raw materials (unscrambler machine), filling, capping, code dating,

labelling, forming corrugated boxes (mechanical case packer/case erector), post

packing, and quality inspection. Raw materials used are bottle, cap, ball, violator

sticker, label, and chemical mixture. First, bags of empty bottles are being

dumped into the unscrambler machine. Next, bottles are organized by the bottle

hopper and elevator in a single file motion. These bottles are being poured with

liquid mixture through the filling machine. Balls (also called “roll-ons”) are injected

to the bottle to make it settled. Then, caps are tightened up to the bottle using the
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capping machine. Code dates (manufacturing and expiration date) are imprinted

at the top of the cap. At that time, label and violator sticker are attached

correspondingly at the front and back surfaces of the bottle. Vision camera

detects reject deodorants due to label misalignment, cap issues, and code date

deficiencies. These are also subject to rework by quality assurance. Lastly, these

good units are subject to final quality inspection.

The company encounters 13.20% productivity loss in manufacturing

Rexona Men Sport Defence RO 50mL from the months of July to December

2012. It is primarily caused by the following reasons: First, Shortage of Raw

Materials – Bottles, Caps, and Labels (4.38%), for the reason that the stocks of

raw materials being supplied to them every month was delayed. The supply

needed for mass production was not utilized properly. Moreover, based on

forecast they will only order raw materials every two weeks; Second, Worn-out

Parts of Capping Machine (3.84%), due to exceeded lifespan of the certain parts.

Design capacity of the machine is not met. Furthermore, it encounters

breakdown occasionally that leads to more downtime and low machine utilization;

Third, Inaccurate Visual Detection of Vision Camera Sensor (3.36%), since the

sensor experiences errors due to poor maintenance practice resulting to low

quality machine. Thus, the company must schedule maintenance consistently;

Lastly, Operators not following Work Instruction (1.62%), because they

erroneously fix the settings of each machine. They commit mistakes due to

incorrect reading of information or mistype of certain numerical values.

Therefore, the whole production will be delayed due to minor stoppages.

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1.3 STATEMENT OF THE PROBLEM

Unilever Philippines, Inc. is experiencing 13.20% productivity loss in

manufacturing Rexona Men Sport Defence RO 50mL amounting to Php

3,066,373.52 from the months of July to December 2012

1.4 OBJECTIVES OF THE STUDY

General Objective:

 To minimize productivity loss by 87.72% in manufacturing Rexona Men

Sport Defence RO 50mL

Specific Objectives:

1. To develop proper inventory control of roll-on deodorant raw materials

2. To improve production capability of the capping machine

3. To improve performance of the vision camera

4. To ensure discipline of the operators

1.5 SCOPE AND LIMITATIONS

The study focuses on the production line of Rexona Men Sport Defence

RO 50mL and all the other factors that contribute to the loss. It includes findings

and results based on actual observation of the whole operations, from

preparation of raw materials up to the delivery of finished goods. The study is

limited to problems related to operations planning which contribute to the 13.20%

productivity loss. The analysis of data was based on the production summary last

July to December 2012.

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1.6 METHODOLOGY

The following methods were used in gathering information to examine the

problem which the company encounters:

1. Interviews

With the assistance of production managers & supervisors, especially the

manufacturing crew, the researcher has been provided data (company profile,

machine specifications and breakdown reports, summary reports regarding the

inventory of raw materials and delivery of finished goods, flow process chart, and

others) to clearly understand the problem situation.

The following people have been consulted about the study:

1. Mr. Dodong Pagarigan – Assistant Production Engineer, Deos City
2. Ms. Trina Evangelista –TPM Secretariat, Deos City
3. Ms. Rica Torres – Document Controller/Production Admin
4. Mr. Marvin Gutierrez – SAP Analyst
5. Mr. Dexter Pineda – Maintenance Planner
6. Mr. Philip Nadela – Maintenance Engineer
7. Mr. Basil Rosacay – Warehouse Staff
8. Mr. Kenn Ante – OJT, Deos City

*Source: Deos City, Unilever Philippines Incorporated, Paco, Manila

2. Data Analysis

One way to examine data is by using engineering tools, mathematical

models, and templates to improve the content of the study. Here are the lists of

methods used:

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 Quality Tools

Include flow chart, fishbone diagram, and control chart that supports

and analyzes the data. These are also helpful in presenting solutions to the

existing problem.

 Planning Templates

These templates are used by the company which include Gantt chart,

monitoring sheets, and scheduling software. It has been utilized by the

researcher throughout the training hours.

 Mathematical Models

Comprise of productivity formula, reorder point equation, simulation

method, and bar graphs which present the results of actual observation in the

production of Rexona Men Sport Defence.

3. Internet and Literature Research

A research was utilized to provide essential information to clearly

understand the condition of the company. Internet researches are useful for the

terminologies of unfamiliar words, reading books regarding operations

management topics help to understand the situation and learn the different

techniques in solving problems.

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1.7 SIGNIFICANCE OF THE STUDY

To the Company

This study will help improve the manufacturing system of Rexona Men

Sport Defence. Hence, they can meet the production quota on the designated

time as well as abide to the standard of the operations.

To the Workers

This study will help the workers to make their easier and be more efficient

during working hours. They can readily assess the present problems in their work

area by recommending appropriate solutions.

To the Students

This study will serve as a background and backdrop to students

concentrating in the field of Operations Management which can be used for

future reference and studies. They may also suggest new concepts by proposing

other solutions to the existing problem.

To the Readers

This study will help the readers to gain knowledge on the field of

Production and Operations Management. They will gain information on how to

resolve problems that give rise to productivity loss.

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To the Researchers

This study will provide a venture for the students to apply what they have

learned in Industrial Engineering like Operations Management, Methods Study

(MTS), Human Factors Engineering (Ergonomics), Quality Control and

Assurance, and Operations Planning. The actual observation is an introduction

and experience for real life industry practice.

1.8 DEFINITION OF TERMS

Actual Output is the amount of a product that a production facility actually yields,

as opposed to the amount that it could produce if it were to run at full

theoretical capacity.

Buffer also called as Safety Stock. A supply of inputs held as a reserve to

safeguard against unforeseen shortages or demands.

Capacity is the total productive capability of a system during a unit of time.

Capping is a process which inserts ball onto the bottle and covers it with cap. It is

done after the filling process.

Case Packing is the process of automatically forming, erecting, and sealing the

corrugated box using the MCP machine.

Code Dating is the practice of placing a code indicating the date and site of

packaging on certain products.

Delay is the interval of time between two events; postponement.

Deodorant is the substance applied to the body to prevent body odor caused by

bacterial growth and the smell associated with bacterial breakdown of
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perspiration in armpits, feet, and other areas of the body. This substance

is often combined with an antiperspirant, for inhibiting or masking

perspiration or other bodily odors.

Deos City is a separate division under Personal Care Department. It has been

entitled as such since the production of roll-on deodorants is isolated from

the main plant.

Design Capacity is the total achievable capacity under perfect conditions;

operating at design capacity essentially means operating at the

organization’s productive limits and can cause rapid wear and

breakdowns.

Dispatch means to relegate or send off to a specific destination.

Downtime is the period of time when a machine/equipment is not operating,

especially as a result of malfunction or breakdown.

Efficiency is the comparison of what is actually produced or performed with what

can be achieved with the same consumption of resources; “Doing the things

right.”

Filling is a process wherein chemical mixture of deodorant is being poured into

containers.

Inventory refers to a company's merchandise, raw materials, and finished and

unfinished products which have not yet been sold.

Labelling is the process of displaying information about a product on its container,

packaging, or the product itself.

Lead Time is the amount of time that elapses between when a process starts and

when it is completed.
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MCP refers to Mechanical Case Packer. It is a machine that forms corrugated

boxes.

MSO refers to Manufacturing Statement of Origin. It is a specified document

certifying the country of origin of the merchandise required by certain

foreign countries for tariff purposes.

Paraben is a class of chemicals widely used as preservatives by cosmetic and

pharmaceutical industries.

Planned Output is also called forecast demand; estimate of expected demand

over a specified future period.

Post-packing is often called as final packaging; the process of arranging and

lifting the series of bottles and placing into the erected cases by using

robotic mechanism.

Productivity Loss is defined as the reduction in production/efficiency caused by

unanticipated conditions; these may include scheduled overtime, material

delivery problems, and adverse weather. It is the difference between the

actual productivity observed and the productivity that might reasonably

have been expected if not for the unanticipated condition.

PC is an extension of the term – Personal Care.

Reorder Level (or reorder point) is the inventory level at which a company would

place a new order or start a new manufacturing run.

Rexona Men Sport Defence is a variant of a famous deodorant brand, Rexona,

manufactured by Unilever Philippines. It is primarily exported to Asia

Middle East countries.

RO is a type of deodorant which is also recognized as “roll-on”.
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Scheduling means determining when an activity should start or end, depending on

its duration, predecessor activity and relationship, resource availability,

and target project completion date.

Task Error includes doing work incorrectly, work not requested, work in the wrong

order, or working too slowly.

TPM refers to Total Productive Maintenance. It is a philosophy used to improve

machine availability through better utilization of maintenance and

production resources

Traceability is the ability to track the components used in production through their

inclusion in a finished product and from there to specific customers.

Triclosan is a white powdered solid, organic compound with a slight

aromatic/phenolic odor. It has been shown to be effective in reducing and

controlling bacterial contamination on hands and on treated products.

Variant means variation or type of product based on target, fragrance, scent,

flavor, or others.

Violator Sticker refers to tag/label which indicates instruction on how to use the

product; it designates a custodial mark of the company’s brand.

Vision Camera is a device which collects data and forms an image that is

interpreted by a computer to determine an apt position of an object.

Worn-out denotes thoroughly exhausted or spent spare parts; used until no longer

usable or effective.

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CHAPTER II
REVIEW OF RELATED LITERATURE

Productivity in Manufacturing Industry

In today’s industrial era, manufacturing companies have sprouted and

spawn everywhere. Due to bigger demands of products and services,

businessmen are more eager to enhance their markets and competitiveness. The

concept of production system has been widely used in all countries. The most

popular concept is the bulk system or “mass production”.

Mass production is the manufacture of products in large amounts through

the effective combination of three factors: specialized labor, mechanization, and

standardization. The result of mass production is the availability of large quantities

of products produced efficiently and sold at substantially lower prices than if such

products were individually crafted or made. (Pierce College, 2010)

Manufacturing firms consider productivity as a major factor in building a

stronger corporation. Thus, a productive manufacturing company delivers excellent

business output.

As defined by Panneerselvam (2005), “Productivity is a relationship

between the output (product/services) and the input (resources consumed in

providing them) of a business system.” Furthermore, for the survival of any

organization, productivity ratio must be at least 1. If it is more than 1, the

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organization is in a comfortable position. Several ways for improving productivity

are the following:

1. Increased output for the same input

2. Decreased input for the same output

3. Proportionate increase in the output is more than the proportionate

increase in the input

4. Proportionate decrease in the input is more than the proportionate

decrease in the output

5. Simultaneous increase in the output with decrease in the input

Dealing with Unhygienic Practices

As mentioned by Chesterton (n.d.), “Man does not live by soap alone; and

hygiene, or even health, is not much good unless you can take a healthy view of it

or, better still, feel a healthy indifference to it.” This means that being healthy is to

take care of one’s body. Every individual has its own concept of personal hygiene.

Ultimately, people can prevent unpleasant scent or wetness by understanding its

rational and scientific implications.

Oftentimes, kids are not concerned with hygiene and cleanliness until the

onset of puberty. Nasty smell and sweaty appearance are prevalent during this

stage especially after a long day of playing outdoors. As indicated by Iannelli

(2004), “Since body odor is linked to puberty, the first step is determining if they

have started puberty. Keep in mind that girls typically start puberty between the

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ages of 8 to13 years old, while boys start between 9 to 14 years old. Whether or

not they are entering puberty, when they have a 'very strong body odor,' then you

want to help them control it. In addition to considering the use of deodorant, you

might practice these general personal hygiene basics,” including:

1. Take a daily bath or shower to prevent bacteria on skin.

2. Take another bath or shower after outdoor activities/sports especially
when they sweat a lot.

3. Wash with soap and a washcloth all over, including armpits, genitals, and
feet, during shower.

4. Wear clean underwear, socks, and clothes every day.

5. Wear loose fitting cotton clothing to impede perspiration.

6. Watch your diet. Eating foods with garlic, onions, or spices, is causing, or
at least contributing, to unpleasant body odor (BO).

As Schueller (n.d.) emphasized, “Body odor is primarily generated in the

area under the arms where there is a high concentration of sweat glands. While

sweat from these zones is initially odorless, it contains natural oils, called lipids,

which provide growth medium for bacteria living on the skin. These bacteria

interact with the lipids, converting them into compounds that have a characteristic

sweaty odor.”

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The Epitome of Antiperspirants

Fad for personal care necessities became a breakthrough realization since

beauty cosmetics has been introduced to the market. Most people believe that

every beauty product must contain active ingredients or hygienic agents. For

instance, an attractive-looking lady or a handsome guy should not only look

pleasing but must also smell good.

Beauty products have evolved throughout the ages. As stated by Schueller

(n.d.), products to control body odor and wetness have been used for centuries.

Before bathing became routinary, people used heavy colognes to mask body odor.

In the late nineteenth century, chemists developed products that were able

to prevent the formation of these odors. Early antiperspirants were like

paste/cream and were applied with the fingertips to the underarm area.

In 1888, the first such product to be trademarked in the United States was

Mum. It was a waxy cream that was difficult to apply and extremely messy. A few

years later, Everdry, the first antiperspirant to use aluminum chloride was

developed.

In the late 1950s, manufacturers began using aerosol technology to

dispense personal care products such as perfumes and shaving creams. In the

early 1960s, Gillette introduced Right Guard, the first aerosol antiperspirant.

Aerosols became a popular way to dispense antiperspirants because they allowed

the user to apply without having to touch the underarm area. By 1967, half of the

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antiperspirants sold in the United States were in aerosol form, and by the early

1970s, they accounted for 82% of all sales.

As further elaborated by Laden (1999), antiperspirants can be defined as:

“The aluminum salt‐based antiperspirant combats the flow of perspiration and the

breakdown of sweat (bacteria). The bactericide‐based (ethanol, triclosan, etc.)

deodorant combats offensive odors. Parabens are generally not present in

deodorants/antiperspirants, which may be explained by the fact that, as

bactericides, deodorants/antiperspirants are self‐preservative and therefore do not

need the addition of preservatives such as parabens.”

Nowadays, the production of antiperspirants/deodorants increases

enormously. Loads of products are distributed all over the world. Higher revenues

are generated regardless of growing expenses. The interest of public towards its

progress had built a robust organization and strategic management for a better

manufacturing business.

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Manufacturing Processes and Technology

The success of antiperspirants is quite diminutive. Operational and quality

problems arise due to studies made by private sectors and complaints deferred by

customers. Therefore, companies hire managers, engineers, analysts, inspectors,

and operators to provide a standard methodology and quality product.

Ensuring a strong manufacturing foundation should start from superior

quality resources, productive manpower, highly efficient machineries, flexible

computer systems and innovative team.

As discussed by an expert, the following raw materials and manufacturing

processes shall be employed, “Antiperspirants consist of the active drug

ingredients that control perspiration; gelling agents that form the stick matrix; and

other ingredients, such as fragrance or colorants that make the product

aesthetically pleasing…Manufacturing process includes batching, filling, finishing

operations, and quality control.” (Schueller, n.d.)

Innovation does not only apply to its operations but also to product’s

marketing and development. For instance, in keeping with Unilever’s (n.d.)

business principles, “The overall goal of developing the new range for women was

to redefine the experience of a deodorant aerosol and reinvent its performance, in

products that have a truly feminine identity. In addition, the new mix has had a

positive impact on Unilever’s manufacturing process where we now score better on

waste reduction and safety.”

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Antiperspirants vs. Deodorants

Antiperspirant? Deodorant? Is there a difference? Yes, there is. According

to St. Pierre (2012), “These two types work in vastly different ways and while the

results may look the same, it does not necessarily mean that your body is doing

the same thing when you are using one or the other.”

ANTIPERSPIRANT is a product specifically designed to stop the user from

sweating. This goes into the core of preventing body odor; sweating feeds the

bacteria in our skin which in turn produces body odor as it feasts on the

substances in one's sweat. To stop the body odor, antiperspirant products stop the

sweat altogether by blocking the sweat pores. It accomplishes this using a variety

of chemicals like aluminum. Most of the products on supermarket shelves today

are of the antiperspirant variety.

The term DEODORANT is a derivation of the root word “de-odor” which

implies the action of taking the odor away or preventing it altogether. The best

deodorant does not necessarily prevent the sweating process; rather, the

substances in the deodorant prevent the production of body odor by killing off

bacteria. A person using a deodorant will continue to sweat but not have the odor

that typically accompanies sweating.

Experts recommend getting a combination of antiperspirants and

deodorants with both effects finely balanced to achieve the desired effect.

Inhibiting sweat is good if done to a certain extent and not more; balancing that

with deodorant use helps keep body odor at bay. It is therefore important to choose

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the best antiperspirant and best deodorant in combination and not just one over

the other. (St. Pierre, 2012)

On the word of Holetzky (n.d.), consumer advocacy groups continue to

voice concerns over questions regarding common health and beauty products,

including deodorant and antiperspirant. Certain studies indicate potential health

risks associated with aluminum compounds found in many antiperspirants. Similar

studies find like risks with parabens found in some deodorants. Both have been

tenuously linked to serious illnesses, including breast cancer. Manufacturers and

various health agencies claim such studies are flawed, stating concerns are

unfounded. Despite assurances, many healthcare professionals recommend

deodorant over antiperspirant, believing that obstructing pores and preventing

perspiration may not be the healthiest choice. Consumers are left to make their

own judgements.

Whether a person choose to use antiperspirant, deodorant, or combination,

it is important to know his needs. Preference must be based on medical condition

and lifestyle. In the end, what really matters is the convenience and comfort of the

user.

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Effects on Human Health

Studies on antiperspirant/deodorant side effects have been conducted and

analyzed by experts in the field of dermatology, cosmetology, and toxicology.

According to Darbre (2005), he postulates the involvement of aluminum, a

component in hygiene products and a metal salt known for its toxicity to cell DNA.

Aluminum is apparently capable of acting via an oestrogenic effect. Such

hypotheses may be interesting, but none of these studies provides scientific

evidence to verify them. Starting from unverified hypotheses and extrapolating

from these to obtain a final conclusion by qualifying one’s own observations is far

from a strict scientific procedure. And without scientific evidence, no conclusion

can be anything but wrong. With regards to the oestrogenic effect proposed by

him, this is weak for parabens and non‐existent in the case of aluminum salts. It is

important to remember that there are a number of sources of aluminum in our

environment (diet, etc.) other than deodorants/antiperspirants.

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The Diversity of a “Lifesaving” Invention

In our time, deodorants come with value-added features or extra-strength

formulas. These can be easily available in a convenience store or in a grocery.

The aesthetic design and variant of deodorants become a competitive trend

for personal care companies. For instance, one brand has a hundred different

variants used as import and export commodity. Thus, a firm must embrace

innovation and practice change as part of its communal drive towards

development.

Deodorant comes in different brands, variants, volume, and shape.

According to Paddock (2012), “The most common types of deodorant come in solid

stick, gel, roll-on, liquid, cream, powder, and spray formulas. Natural deodorant is

another option that may come in all those different styles or in a stone or mineral

form which is rubbed on the underarms.”

She (Paddock) further elaborates the variety of deodorants. Stick deodorant

is generally solid white or clear deodorant that is rubbed on the armpits. Powder

deodorant is sprinkled or patted on, and is often made of the same types of

ingredients as stick deodorant but without the silicone or fatty substances that bind

them together. Gel deodorant is applied in a similar way as the stick varieties but

comes in a thick gel that is pushed up through holes or slits in the cap. Cream

deodorant is usually applied with the fingertips. Roll-on deodorant has a ball on the

top of the bottle that rolls and applies the product to the skin in a thin layer. Types

of deodorant that are sprayed on generally come in aerosol cans.

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Deodorant, of any kind, as long as it is quality tested can make an

individual’s life worthy of the satisfaction he deserves.

Picking the Best Underarm Necessity for You

According to O’Rourke (2010), here are the tips to consider when choosing

a deodorant:

1. Stay away from Triclosan. Many deodorants use an added chemical

called “Triclosan” to kill odor-causing bacteria. The wide use of it may

also be promoting a drug resistance in the same bacteria. Drug resistant

bacteria reduce the effectiveness of antibiotics. Furthermore, it weakens

the immune system of humans to treat infections.

2. Avoid Aluminum. Aluminum compounds in deodorant are the culprits in

yellow armpit stains. Aluminum salts, such as aluminum chlorohydrate,

were some of the first antiperspirants developed to reduce perspiration.

Newer and more effective aluminum zirconium chlorohydrate-glycine

complexes have been developed and are used in several brands of solid

and gel antiperspirants. These ingredients have the added benefit of

having antimicrobial activity, which mean they also act as deodorants.

There is inconclusive evidence that aluminum-containing compounds

increase the risk of certain neurological diseases (e.g., Alzheimer’s

disease).

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3. Stop using (Aerosol) Spray. If you are concerned about the environment

avoid aerosol antiperspirants. Some propellants used in this product can

be toxic. Others, such as tetrafluoroethane, are not toxic but are global

warming agents.

He (O’Rourke) also emphasizes that there are good alternatives which can

avoid the negative effects of those substances to humans and environment:

1. Deodorant crystals which are made from alum-based mineral salts.

2. An age-old alternative to Triclosan is “Tea Tree Oil” which is often listed

as TTO on the label.

3. Zinc ricinoleate reduces odors by binding to stinky chemicals, making

them imperceptible to most noses. If you use a zinc ricinoleate-based

deodorant, choose a fragrance-free formulation because it can interfere

with zinc ricinoleate’s odor fighting capacity.

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CHAPTER III
PRESENTATION OF GATHERED DATA

3.1 SUMMARY OF LOSS IN ROLL-ON DEODORANTS (All Variants)

Product Name/Variant Net. Vol. MSO Country Unit Price Output Loss (% )
AXE
AXE Anarchy 40 mL US 104.92 2.44
.
AXE Apollo 40 mL US 104.92 1.31
AXE Phoenix 40 mL US/CAN 104.92 1.01
AXE Dark Temp 50 mL ASIA/EU PH 63.42 0.97
AXE Vice 50 mL ASIA PH/SG/TW 54.17 3.10
DOVE
DOVE Original 50 mL ASIA/AMET/ANZ PH/SG 126.79 1.32
DOVE Unscented 50 mL ASIA PH/SG/VT 50.33 4.99
DOVE GoFresh 50 mL ASIA MY/SG/VT 50.33 0.87
DOVE Green Tea & Cucumber 50 mL ASIA PH/VT 50.33 1.16
DOVE Pink 50 mL ASIA/EU MY/SG/VT 58.49 1.55
DOVE Pure 50 mL ASIA/EU MY/SG/VT 58.49 2.72
DOVE Clean Comfort 50 mL ANZ/EU/LATAM 153.08 4.07
DOVE Whitening 25 mL ASIA/AMET PH/VT 47.13 2.66
DOVE MEN Extra Fresh 50 mL AMET/LATAM PH/SG 153.08 7.21
REXONA
REXONA MEN Active 50 mL ASIA/ANZ PH/TW 47.00 0.25
REXONA MEN Adventure 50 mL ASIA PH 44.19 2.38
REXONA MEN Extreme 50 mL AMET/EU 98.42 3.07
REXONA MEN Ice Cool 50 mL ASIA PH/VT 44.19 4.15
REXONA MEN Ionic 50 mL AMET 98.42 10.32
REXONA MEN Lotus F1 Team 50 mL US/CAN 116.75 5.23
REXONA MEN Quantum 50 mL ASIA PH/HK/TH 44.19 2.31
REXONA MEN Sport Defence 50 mL AMET 98.42 13.20
REXONA MEN V8 50 mL ASIA PH/HK/VT 44.19 3.54
REXONA WMN Cotton 50 mL ASIA HK/TH/TW 44.19 1.07
REXONA WMN Confidence 50 mL ASIA PH/SG 44.19 2.43
REXONA WMN Free Spirit 50 mL ASIA MY 44.19 1.24
REXONA WMN Naturals 50 mL ASIA MY/SG 44.19 1.84
REXONA WMN Passion 50 mL ASIA PH/MY/SG/CB 44.19 1.76
REXONA WMN Powder Dry 50 mL ASIA MY/SG 44.19 2.75
REXONA WMN Sexy 50 mL ASIA/EU MY/SG 52.16 3.76
REXONA WMN Shower Clean 50 mL ASIA/AMET MY 44.19 5.00
REXONA WMN Whitening 50 mL ASIA PH/MY/SG 44.19 0.32

Table 1: PC-Deos Roll-on Deodorants Production – From July to December 2012
*Source: Ms. Rica Torres (Document Controller/Production Admin)

Table 1 shows the focus variant in the production of roll-on deodorants which is
Rexona Men Sport Defence 50mL. Data was gathered from July to December 2012.
(See Appendix A for Output Loss per Variant, page 99)
25 | P a g e

3.2 PROFIT LOSS IN SIX (6) MONTHS

Planned Output Actual Output
MONTH Variance Productivity Loss Profit Loss
in Units Produced
July 38,936 32,858 6,078 15.61% Php 598,196.76
August 39,249 33,212 6,037 15.38% Php 594,161.54
September 39,114 33,697 5,417 13.85% Php 533,141.14
October 39,542 34,485 5,057 12.79% Php 497,709.94
November 39,600 35,073 4,527 11.43% Php 445,547.34
December 39,532 35,492 4,040 10.22% Php 397,616.80
TOTAL 235,973 204,817 31,156 --- Php 3,066,373.52

AVERAGE 39,329 34,136 5,193 13.20% Php 511,062.25

Table 2: PC-Deos Rexona Men Sport Defence RO – Planned Output vs. Actual Output Summary (6 months)

Computation:

 Productivity Loss:

| |

| |

= 13.20%

26 | P a g e

Table 2 shows the relationship of planned and actual output in the

production of Rexona Men roll-on deodorants from July to December 2012.

Planned output was based on the monthly estimates of the product by the

customer. The company experienced an average productivity loss of 13.20% or

equivalent to 31,156 units in manufacturing Rexona Men Sport Defence RO

50mL semi-annually. (See below – Table 3)

Cost of Production
Dollars per unit (AUD) Peso per unit (PHP)
$2.27 Php 98.42

Table 3: PC-Deos Rexona Men Sport Defence RO – Cost of Production

 Profit Loss in 6 months:

= (Target Output – Actual Output) * ($2.27 x Php 43.31226/$1)

= (235,973 – 204,817) * (Php 259.89)

= Php 3,066,373.52

Table 3 shows the costs incurred during the production of Sport Defence

roll-ons. The price of one (1) unit costs Php 98.42. It is estimated that the

company experienced loss in profit amounting to Php 3,066,373.52 from the

months of July to December 2012.

27 | P a g e

3.3 PROCESS FLOW CHART

Start

Preparation of Raw Materials

Filling

Capping

Code Dating

Labelling

In-Process N
Inspection A

Y

Case Packing Rework

Post-packing Manual Post-packing

Final QA N
Inspection A
(Sampling)

Y

End

Figure 1: Rexona Men Sport Defence RO – Flow Chart 28 | P a g e

Figure 1 shows the standard processes involved in producing units of

Rexona Men Sport Defence 50mL roll-on deodorants. The course of every facet

of the product completes one cycle of manufacturing by the use of automation

and robotics. (See Chapter 1, Background of the Study)

Most operational problems occur before proceeding to mass production

(from the inventory of raw materials) in which bags of labels and violator stickers

are being delivered late by the supplier and during capping operation wherein the

machine cannot utilize its full capacity to produce the planned output due to

worn-out parts.

Other problems are brought by lack of preventive maintenance, such as

inaccurate visual detection of vision camera sensors, and human factors, for

instance, operators not following wok instruction in setting up machines. The

result corresponds to a low productivity and lost opportunities.

29 | P a g e

3.4 FISHBONE ANALYSIS

MAN METHOD

Operators not Shortage of Raw
following Work Materials – Bottles,
Instruction Caps, and Labels
(12.28%) (33.15%)
13.20%
productivity loss
in manufacturing
Rexona Men
Sport Defence RO
50mL
Inaccurate Visual Worn-out Parts of
Detection of Vision Capping Machine
Camera Sensor (29.09%)
(25.48%)

Operations Planning
Human Factors
MACHINE
Preventive Maintenance

Figure 2: Causes of Productivity Loss

Figure 2 illustrates the percentage distribution of the elements of production, namely: machine
(54.57%), method (33.15%), and man (12.28%) to the overall loss of Rexona Men Sport Defence RO 50mL. It
shows the main causes of productivity loss.
30 | P a g e

Fishbone Diagram Computations:

Percentage Contribution | |

METHOD: Shortage of Raw Materials (Bottles, Caps, and Labels)

Total Units Loss in Six Months = 31,156 units
Units Affected by Shortage of Raw Materials = 10,328 units
Percentage Contribution = 33.15%

MACHINE 1: Worn-out Parts of Capping Machine

Units Affected by Worn-out Parts = 9,063 units

MACHINE 2: Inaccurate Visual Detection of Vision Camera Sensor

Units Affected by Inaccurate Visual Detection = 7,939 units

MAN: Operators not following Work Instruction

Units Affected by Not Following Work Instruction = 3,826 units

 OBJECTIVE OF THE STUDY:

Minimization of Productivity Loss = Man + Machine 1 + Machine 2
= 33.15% + 29.09% + 25.48%
= 87.72%

31 | P a g e

SUMMARY OF CAUSES (RO Deodorants)

Category Causes Units Affected % Contribution % Loss Profit Loss

Shortage of Raw
METHOD Materials (Bottles, Caps, 10,328 33.15% 4.38% Php 1,016,502.82
& Labels)

Worn-out Parts of
9,063 29.09% 3.84% Php 892,008.06
Capping Machine

MACHINE
Inaccurate Visual
Detection of Vision 7,939 25.48% 3.36% Php 781,311.97
Camera Sensor

Operators not following
MAN 3,826 12.28% 1.62% Php 376,550.67
Work Instruction

TOTAL 31,156 100% 13.20% Php 3,066,373.52

Table 4: Contribution of Loss

Table 4 presents the summary of causes that contribute to the productivity loss in manufacturing Rexona

Men Sport Defence RO 50mL. The company experiences the highest machine problem whereas issues with

workers contribute the lowest percentage in the past six months.
32 | P a g e

3.5 SHORTAGE OF RAW MATERIALS

Rexona Men Sport Defence 50mL
Roll-on (RO) Deodorant

Incident of
Raw Material Illustration Specifications
Shortage

Include the ff.:
July 11
Compounds, Gelling
Agents, Fragrance and
1. Active Ingredients ------- Colorants
Composition: Liquid
Color: White August 21
Application: Cosmetics

June 1
Surface: Smooth/Frost
Size: 1-inch diameter
Color: White
Tolerance: +-0.1mm August 17
2. Hollow Ball/Roll-on Weight: 5g
Capacity: 35.2mm
September 8
Application: Cosmetics,
Industrial, Medicine

November 12

33 | P a g e

July 4
Size: 50mL
Material: PE/PP
August 14
Height: 11cm
3. Bottle Base Diameter: 3.9cm
Weight: 18.9g September 3, 20
Color: Black

Application: Cosmetics October 15, 26

December 21

July 16
Material: PE/PP
Height: 5cm
Base Diameter: 3.9cm September 11
4. Cap Weight: 7g
Color: Black October 7, 26
Application: Cosmetics
December 3

Include the ff.: Product
Name, Logo, Variant, June 29
Tolerances, Additional
Features
5. Label Front
Color: Black, Blue, and
Gold August 9, 20, 31

34 | P a g e

Include the ff.:
Ingredients & October 18
Back/ Formulation, Product
Rear Code, Manufacturing
Location, Instruction on
How to Use, Company
Logo; November 27
Color: White

Includes the Instruction
August 22
on how to Use,
Custodial Mark of
6. Violator Sticker
Unilever
December 16
Color: White, Violet

Table 5: List of Raw Materials – Rexona Men Sport Defence 50mL

Summary of Occurrences Table 5 shows the important materials needed to produce units of roll-
(Accumulated) on deodorant. It is shown that BOTTLES, CAPS, and LABELS have the
Active Ingredients 2 highest occurrence of unavailability in their inventory. Consequently, mass
Ball (hollow) 4 production of roll-on deodorants has been delayed.
Bottle 7
Cap 5
Label & Violator Sticker 8
35 | P a g e

List of Suppliers

Raw Material (RM) Supplier/Provider Company Address

Unilever Philippines, Inc. – Personal 1351 United Nations Ave. Paco, Manila,
1. Active Ingredients
Care Division NCR – First District 1007
2. Hollow Ball
1038 Cristobal St. Paco, Manila, NCR –
3. Bottle/Container WEENER Plastop Asia Inc.
First District 1007
4. Cap
Golden Mile Business Park
#10 7th Street, Brgy. Maduya Carmona,
5. Label & Violator Sticker Centech Labels Philippines, Inc. Cavite 4166
573 Nueve De Febrero, Mandaluyong City,
Manila, NCR 1550

Table 6: Trusted RM Suppliers by PC-Deos Department

Table 6 indicates the list of raw material suppliers. They provide quantities of raw materials depending on the

planned order of the company. More often than not, there is a delay in dispatching of lots or bags of raw materials.

This delay occurs either due to supplier’s late delivery, planner’s negligence, or material purchase order software

errors.

36 | P a g e

 Release Schedule of Raw Materials

Inventory Traceability Checklist
Product Line: Rexona Men Department: Warehouse, Deos City
Variant: Sport Defence Processed/Validated by: Mr. Basil Rosacay
Weight: 50mL Position: Admin Staff

Dispatched Lots
No. Release Period Remarks Findings
Bottles Caps Labels
1 June 29 42 bags 36 bags 7 bags  Lots have been forwarded to Production Dept.
46 bags  Low superiority bags of caps SHORTAGE
2 11 59 bags 11 bags
July  Sample lots have been forwarded to QA Dept. (caps)
3 27 57 bags 49 bags 10 bags  Lots have been forwarded to Production Dept.
August  Deficiencies in capacity of violator sticker/label bags SHORTAGE
5 22 51 bags 39 bags 5 bags
 Some lots have been forwarded to Production Dept. (labels)
September  Bags of bottles and caps are not enough for the next
SHORTAGE
7 21 38 bags 36 bags 6 bags two-week operation
(bottles and caps)
 Lots have been forwarded to Production Dept.
 Deficiencies in capacity of raw materials
8 4 37 bags 34 bags 4 bags SHORTAGE
October  Lots have been forwarded to Production Dept.
November
December  Missing bags of caps SHORTAGE
14 15 41 bags 40 bags 5 bags
 30 bags have been forwarded to Production Dept. (caps)
Table 7: Inventory Traceability of Rexona Men Sport Defence RO 50mL

37 | P a g e

Table 7 shows the traceability sheet of raw materials coming from the

Warehouse Department. Bags of raw materials (i.e. bottle, ball, cap, label/violator

sticker) have been forwarded to the Production Department almost every two (2)

weeks after its release date from the supplier. These raw materials are

sometimes delayed because of inadequacy and quality issues.

Basically, these orders of raw materials are based on customer demand.

Production planners will only check the inventory and orders more or less every

two weeks. Some (lots) are not enough in number or deficient in capacity. As a

result, these cannot support the production need.

 Summary of Incoming Raw Materials (Warehouse)

Bottle Container:

Month Raw Material Expected (kg) Actual (kg)

July 160 146
August 160 144
September 160 147
Bottle
October 160 139
November 160 151
December 160 157
Total 960 884
Difference (SHORTAGE) 76 kg
Table 8.1: Part of the Summary of Incoming Raw Materials – Bottle Container

 Units Affected:
 Required Amount of Bottle = 0.0189 kg or 18.9 g per unit
 76 kg / 0.0189 kg per unit = 4,021 units

38 | P a g e

SHORTAGE ON BOTTLE CONTAINERS

165
160
155
150
145
Actual (kg)
140
Expected (kg)
135
130
125

Figure 3: Expected vs. Actual RM – Bottle Containers

Cap:


July 110 108
August 110 106
September 110 109
 October
Cap
110 105
 November 110 108
December 110 103
 Total 660 639
Difference (SHORTAGE) 21 kg

Table 8.2: Part of the Summary of Incoming Raw Materials – Cap

 Units Affected:

 Required Amount of Cap = 0.007kg per unit
 21 kg / 0.007 kg per unit = 3,000 units

39 | P a g e

SHORTAGE ON CAPS

112

110

108

106

104 Actual (kg)

102 Expected (kg)

100

98

Figure 4: Expected vs. Actual RM – Caps

Label/Violator Sticker:


July 70 68.81
August 70 67.64
September 70 68.30
 Labels
October 70 67.97
 November 70 68.99
December 70 67.87
 Total 420 409.58
Difference (SHORTAGE) 10.42 kg

Table 8.3: Part of the Summary of Incoming Raw Materials – Label/Violator Sticker

 Units Affected:

 Required Amount of Label and Violator Sticker = 0.0945 kg / 30 units or
0.00315 kg per unit
 10.42 kg / 0.00315 kg per unit = 3,307 units

40 | P a g e

SHORTAGE ON LABELS AND VIOLATOR STICKERS

70.5
70
69.5
69
68.5
68 Actual (kg)
67.5 Expected (kg)
67
66.5
66

Figure 5: Expected vs. Actual RM – Labels and Violator Stickers

Units Affected (Shortage of Raw Materials) =
Units Affected (Bottles + Caps + Labels)

Units Affected (Shortage of Raw Materials) 4,021 + 3,000 + 3,307

Units Affected (Shortage of Raw Materials) 10,328 UNITS

Profit Loss in Six (6) Months Php 1,016,481.76

Table 8.4: Summary of Units Affected due to Shortage of Raw Materials

Tables 8.1-8.4 show the units not produced due to shortage of raw

materials. In a span of six months, there are 10,328 units (from combined volume

of bottles, caps, and labels) which are not manufactured. There is a total loss in

profit of Php 1,016,481.76.

Figure 3-5 shows the graphical illustration of unavailable stocks of roll-on

deodorant raw materials. The actual resources did not meet the expected plan.

41 | P a g e

3.6 WORN-OUT PARTS OF CAPPING MACHINE

Figure 6: Actual Picture of Capping Machine

Figure 6 illustrates the actual image of capping machine used in Line 2 of

production. It is operated almost 24 hours depending on the planned volume.

Some parts of the capping machine deliver failures/errors such as vibrating

tension spring and semi-automatic feeder malfunction as a result of machine

breakdown and stoppages.

42 | P a g e

Figure 7: Computer-Aided Drawing of Capping Machine
43 | P a g e

 List of Capping Machine Parts

Parts and Assemblies Illustration Specifications

Torque range from 5 to 30
inch pounds
Designed to fit & replace
most popular brands
1. Bottle Capping Headsets Independently adjustable top
loading spring
18mm (max) hole through
the middle for air or push rod
assembly

Cap sizes: max diameter 38
mm max length 65mm 55mm
with pre-sleeking

2. Electric Motor Motor rotation speed. 1400 or
2800 r.p.m.

Electrical requirements: 220V
-380 V - 50 Hz. (different
ones on request)

44 | P a g e

One operator can feed two or
more seamers
Available for all types of can
ends and sizes (202 diameter
to 603 diameter)
3. Semi-Automatic Feeder
Quick installation and easy
adjustment
Powered curves allow for
adaptation to any layout
Low noise level operation

Stainless steel material
Double-line, flat-topped
carbon steel roller chains
4. Roller Chain
Polymer wear-resistant
plastic filler strip
Adjustable plastic guardrail
supports

Comfort grip adjusting rings
Has ROPP (Roll On Pilfer
5. Screw Capping Heads Proof) system
Available in a variety of
stainless steels

45 | P a g e

Round-shaped wire, ranging
from .5 mm to 4 mm diameter
6. Tension Spring Used in industrial production,
medical instruments and
electronic components to
absorb & store energy by
generating a pressure to a
pulling force

Ladder-style capping elevator

Includes the capping hopper,
7. Inline Capping Elevator elevator and capping-out
device

Used to supply automatic
systems with parts needed

Table 9: Part Specifications of Capping Machine
*Source: Mr. Philip Nadela (Maintenance Engineer)

Table 9 illustrates the parts that have incidents of wear-and-tear, malfunction, or clogging. These type of

errors resulted to delays and production stoppages.
46 | P a g e

Date of Malfunction Report Specific Error Actions Taken

- Worn-out bottle capping headset  Report to
6 - Malfunction roller chain Operator/
July 16 - Error in electric motor Technician
 Repair – Check
20 - - Bent tension spring
parts if OK
23 - Error in screw capping heads

- Error in inline capping elevator  Report to
14 Operator/
- Vibrating tension spring
August Technician
- Worn-out bottle capping  Repair – Check
25 headsets parts if OK

- Malfunction of roller chain  Report to
9 Operator/
- Error in electric motor
Technician
September
- Error in screw capping heads  Repair – Check
22 - Worn-out bottle capping headset parts if OK

4 - Worn-out electric motor  Report to
- Error in tension spring Operator/
October 13 - Clogging in semi-automatic Technician
feeder  Repair – Check
17 - Error in bottle capping headsets parts if OK

26 - Error in screw capping heads

- Malfunction in inline capping  Report to
15 Operator/
elevator
November Technician
25 - Error in roller chain parts if OK
- Error in bottle capping headsets  Report to
12 - Malfunction in semi-automatic Operator/
December feeder Technician
- Clogging in semi-automatic
23 parts if OK
feeder
- Error in electric motor
Table 10: Specific Errors Encountered – Machine Malfunction Report
*Source: Mr. Philip Nadela (Maintenance Engineer)

47 | P a g e

Table 10 shows the detailed malfunction report of the Capping machine

that comprised the date and specific reasons the machine has broken

down/malfunction.

Error on Specific Parts
6
5
4
3
2
1
Frequency
0

Figure 8: Particular Errors of Capping Machine Parts

Figure 8 illustrates the malfunction of several parts that have brought

downtime to the production. It is seen errors in bottle capping headsets and

electric motor has the biggest contributors to machine breakdown. Essentially,

these parts need immediate replacement/repair because it may lead to

production stoppage.

48 | P a g e

Frequency of Downtime (hrs.) Quantity
Month
Malfunction/Stoppage Specific DT Total DT Affected
3.13
2.52
July 5 2.42 10.35 2,305
1.39
0.89
2.56
August 3 0.48 5.35 1,214
2.31
2.34
1.55
4 5.14 1,162
September 0.93
0.32
2.08
0.87
October 5 1.71 8.47 2,044
3.32
0.49
2.87
November 2 6.09 1,512
3.22
0.75
1.41
December 4 7.56 826
1.53
3.87
Total 23 42.96 hrs. 9,063 UNITS
Profit Loss in Six (6) Months Php 891,980.46
Table 11: Machine Breakdown Report

Table 11 shows the monthly machine malfunction report during the

months of July to December 2012. As stated, the total frequency of malfunction

was 23 times. Furthermore, it presents the time consumed when the machine

experiences downtime as well as its corresponding units affected. It was

concluded that the machine was down for about 42.96 hours and 9,063 units of

Rexona Men Sport Defence roll-on deodorants were not produced because of

frequent breakdown of the Capping machine. There was a total loss in profit of

about Php 891,980.46.

49 | P a g e

3.7 INACCURATE VISUAL DETECTION OF VISION CAMERA SENSOR

Figure 9: Industrial Vision Camera Sensor

Figure 9 illustrates the actual picture of vision cameras used in the code

dating and labelling processes. Vision camera detects the following:

 code date on roll-on caps

 alignment of front and back labels on the bottle

 configuration of violator stickers on caps

 presence of labels

 constricted insertion of cap

 missing assembly part

50 | P a g e

 Code Dating and Labelling Visual Recognition (as of Dec 2012)

Date & Time of Observation Performed By
1 Dec-04 Tuesday 1:05-1:17 PM Engr. Philip Nadela
2 Dec-06 Thursday 1:20-1:43 PM Engr. Philip Nadela
4 Dec-13 Thursday 1:50-2:08 PM Engr. Philip Nadela
Table 12: Vision Camera Performance Observation

Table 12 shows the time and date of observing the production capability

of vision camera installed in the code dating and labelling machines. Engr.

Philip Nadela was tasked to observe the sensor’s visual performance and

record the data within three (3) minutes.

Visual Detection Network System Results

 Basis of Failure: Total Error Probability, PError for q ≥ 0.1
 Passed Data: q < 0.1

Image Sequence
Day
Sequence 1 Sequence 2 Sequence 3
1 0.1515 0.0573 0.03
2 0.1238 0.1531 0.11
3 0.11 0.09 0.17
4 0.12 0.20 0.20
5 0.05 0.23 0.90
Table 13: Vision Camera Performance Results

Table 13 indicates the measure to determine if the data has a passing or

failing rate. Most data recorded a failing mark which means that the vision

camera experiences several errors within the designated sequence time

(exactly three minutes).

51 | P a g e

Visual Detection Error
1
0.9
0.8
0.7
Control Limit
Axis Title

0.6
0.5
0.4
0.3
0.2
0.1
0
1 2 3 4 5
Sequence 1 0.1515 0.1238 0.11 0.12 0.05
Sequence 2 0.0573 0.1531 0.09 0.2 0.23
Sequence 3 0.03 0.11 0.17 0.2 0.9

Figure 10: Visual Detection Results

Figure 10 shows the dispersion of data in every sequence. Most

observations have a higher inaccuracy rate due to higher values above the

control limit.

Procedure in Vision Camera Sensor Maintenance

Sensor Frequency
Design Constructed beneath the code dating and
labelling machine
Usage Everyday – 24 Hours
Replacement Schedule Every 2 months; Depends on the condition
Every month; When there is an emergency
Repair and Maintenance
and/or production stoppage occurs
Table 14: Maintenance Schedule of Vision Camera Sensor

Table 14 shows the mandatory time in replacing the sensors from the

code dater. It is specified on the procedure that sensors should be changed

every 2 months or whenever it is not in good condition.

52 | P a g e

Occurrence Repair/ Interruption or Quantity
Month
of Error Maintenance Idle Time Affected

July 87 15 7.66 1,904
August 96 9 8.01 2,106
September 85 8 6.92 1,225
October 115 18 2.38 663
November 79 7 4.43 845
December 68 12 6.87 1,196
Total 530 69 36.27 hrs. 7,939 UNITS


Table 15: Summary of Units Affected due to Inaccurate Visual Detection of Vision Camera Sensor

Table 15 shows the units lost due to vision camera errors. These errors

resulted to delay, interruption, and production stoppage. It states that 36.27

hours are gone in six months because of poor maintenance schedule and lack

of machine check. Therefore, there is idle time because of inaccuracies.

53 | P a g e

3.8 OPERATORS NOT FOLLOWING WORK INSTRUCTION

Operating Hours: 6AM – 6PM Shift: 1st
Department: Production

Name List of Machines Mean Number of Set-
that needs Set-up up Times per Day
1. Rosales, Larry D. Unscrambler 4
2. Cantila, Archie Joshua S. Capping 6
3. Reyes, Ronnie B. MCP/Case Erector 9
4. Manicani, Edison M. Labelling Machine 6
Table 16: Workers Machine Assignment

Table 16 shows the designated equipment wherein a worker should set-

up the machine everyday day. Listed above is the average number of times

when they must change the setting of the machine due to production

changeover.

 General Guidelines in Setting up a Machine:

Para sa lahat ng operators,

Paalala: Matatagpuan sa production/operations manual ang mga alintuntunin sa loob ng
planta. Ito ay matatagpuan sa loob ng Production Office.

Bago at pagkatapos gamitin ang isang makina, sundin ng mabuti ang sumusunod:

1. Gamitin ang angkop na PPE’s upang maiwasan ang anumang aksidente.
2. Laging sundin ang visual control na nakapaskil sa bulletin boards.
3. Laging siguruhin na ang lahat ng equipment at mga electrical wiring ay naka-“lock-
out.‟
4. Iwasang kalimutan ang mga teknikalidad ng makina bago ito i-set up.
5. I-shut down ng maayos ang bawat parte o assembly ng makina.
6. Kung may mga abnormalities o mali sa operasyon ng makina, ipagbigay alam agad sa
maintenance personnel o supervisor.

BY: PRODUCTION DEPT.
ORDER NUMBER: 07160

54 | P a g e

Causes of Human Errors

 Incorrect Input of Numerical Values in a Particular Equipment
 Wrong Identification of Data/Information
 Misunderstanding the Manual/Visual Control
 Operator tend to Rush in Setting up the Machine
 Confused Worker
 Forgetfulness
Table 17: List of Human-Related Errors

Table 17 shows the causes of not following work instruction. Operator

might mistakenly type certain data onto the machine; he/she might be rushing

to input values and as a result errors were experienced; and he/she may be

confused with the visuals in front of the equipment or preoccupied.

 List of Workers:

1. Rosales, Larry

UNSCRAMBLER MACHINE
Month Frequency of Incorrect Set up Units Affected
July 5 192
August 3 101
September 5 198
October 5 167
November 4 152
December 1 61
Total 23 871 units
Table 18.1: Human Error in Unscrambler Machine

55 | P a g e

2. Cantila, Archie

CAPPING MACHINE
Month Frequency of Incorrect Set up Units Affected
July 3 77
August 6 195
September 4 173
October 4 154
November 3 108
December 7 225
Total 27 932 units
Table 18.2: Human Error in Capping Machine

3. Reyes, Ronnie

MCP/CASE ERECTOR
Month Frequency of Incorrect Set-up Units Affected
July 6 214
August 2 96
September 7 325
October 6 170
November 4 128
December 4 124
Total 29 1,057 units
Table 18.3: Human Error in MCP/Case Erector

4. Manicani, Edison

LABELLING MACHINE
Month Frequency of Incorrect Set-up Units Affected
July 3 138
August 6 183
September 4 162
October 4 166
November 5 218
December 2 99
Total 24 966 units
Table 18.4: Human Error in Labelling Machine

56 | P a g e

 Summary of Wrong Set up of Machine:

December

November

October Manicani
Reyes
September Cantila
Rosales
August

July

0 1 2 3 4 5 6 7 8

Figure 11: Frequency of Setting up the Equipment

Figure 11 shows the frequency of mistakes and errors committed by

workers by setting up the machine. Mr. Ronnie Reyes and Mr. Archie Cantila

incurred the highest incident during the months of September and December.

Lead Time Frequency of Incorrect
Name of Worker Units Affected
(hrs.) Set up (6 Months)

Rosales, Larry 14.28 23 871
Cantila, Archie 10.03 27 932
Reyes, Ronnie 13.77 29 1,057
Manicani, Edison 6.75 24 966
Total 44.83 hrs. 103 3,826 UNITS
Table 18.5: Summary of Units Affected due to Not Following Work Instruction

Tables 18.1-18.5 present the affected deodorants whenever machines

encounter delay due to human-related error. The production might stop or delay

due to incorrect set up resulting to no production and profit loss.

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CHAPTER IV
ANALYSIS OF GATHERED DATA

4.1 PROBLEM TREE

CAUSES

Shortage of Worn-out Parts Inaccurate Operators not
Raw Materials of Capping Visual Detection Following Work
(Bottles, Caps, Machine of Vision Camera
Instruction
and Labels) Sensor


Opportunity Customer
Profit Loss
Loss Dissatisfaction

EFFECTS

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CORE PROBLEM




CAUSES

1. Shortage of Raw Materials (Bottles, Caps, and Labels)

Two weeks schedule of ordering raw materials delays the production line

of Rexona Men Sport Defence. Raw materials such as bottles, caps, and labels

have the highest incidences of unavailability due to supplier’s fault and poor

planning. As a result, roll-on deodorants were not manufactured on time. (As

seen in Tables 5-8 and Figures 3-5)

2. Worn-out Parts of Capping Machine

The specific parts of the capping machine often encounter error or

malfunction because of wear and tear condition. Its efficiency declines as the

demand of the product increases. Likewise, the design capacity of the machine

is not utilized since parts need to undergo repair and maintenance. (As seen in

Tables 9-11 and Figures 6-8)

3. Inaccurate Visual Detection of Vision Camera Sensor

Errors are experienced by the vision camera because sensors are poorly

maintained resulting to low quality sensors. Another problem with vision camera

sensors is that they are overly used 24/7. Consequently, sensors do not deliver

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a decent result due to those mentioned reasons. (As seen in Tables 12-15 and

Figures 9-10)

4. Operators not Following Work Instruction

Workers incorrectly fix the setting of several machines in Line 2. Wrong

specifications are being employed to the production as a result of stoppage of

the operations. (As seen in Tables 16-18 and Figure 11)

EFFECTS

1. Profit Loss

Return on investments will be less evident if the company continue to

experience productivity loss. Therefore, it may result to forfeiture of business in

the future.

2. Opportunity Loss

If the company will not meet target orders, potential customers will be

lessen. Recent customers will be uninterested to order again.

3. Customer Dissatisfaction

Clients will be disappointed because of incomplete output being

delivered to them. It will reflect a bad reputation for the company.

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4.2 OBJECTIVE TREE

MEANS

Reschedule Replacement Weekly
Material Application of
of New Preventive Operators’
Purchase Capping Maintenance of
Order (MPO) Visual Control
Machine Parts Vision Camera
Every Week

To minimize productivity loss by 87.72% in manufacturing
Rexona Men Sport Defence RO 50mL

Opportunity Customer
Profit Gain
Gain Satisfaction

ENDS

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CORE OBJECTIVE

To minimize productivity loss by 87.72% in manufacturing Rexona Men

Sport Defence RO 50mL

MEANS

1. Reschedule Material Purchase Order (MPO) to Supplier Every Week

Delivery dates, dispatching of raw materials to the production, and

inventory stocks monitoring should be rescheduled every one week by the

production planner to ensure immediate changes. It will help them improve their

scheduling processes and enhance business competitiveness.

2. Replacement of New Capping Machine Parts

Parts will be replaced with new ones to provide long term preservation of

machine components. It will decrease the probability of the machine

malfunctioning/breaking down in the future.

3. Weekly Preventive Maintenance of Vision Camera

Sensors must be maintained, cleaned, and reassess every week to

ensure good condition of machine. It will prevent further operational losses in

the production of roll-on deodorants.

4. Application of Operators’ Visual Control

Visual control will be posted onto the machines. It will be strictly

regulated within the production area. It will eliminate errors by operators who

frequently commit mistakes. Thus, lead time and stoppage will be avoided.

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ENDS

1. Profit Gain

Upon minimizing productivity loss, the company will achieve profit. This

will result in a positive outcome for the company.

2. Opportunity Gain

If the company will meet target orders at the right time with the right

quality, potential customers will increase. More opportunities for efficient

production can be achieved by the company.

3. Customer Satisfaction

When the company delivered the required quantity on time, customers

will be more trustworthy towards the company. In return, it will gain a reputable

image.

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Operations Planning and Control (OPC) Practicum Thesis

Operations Planning and Control (OPC) Practicum Thesis

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