The purpose of this case study is to determine whether the need for adoption of an effective

system of production is imperative.

I. TIME CONTEXT

Recently (2019-2020), the management has received much advice regarding

adoption of more specific management methods.

II. VIEWPOINT

Mr. Cruz, the owner of the company.

III. STATEMENT OF THE PROBLEM

To be able to determine the most effective and efficient system of production

control
and measuring worker’s productivity for Stainless Product Philippines.

IV. OBJECTIVES

Must:
1. To address the need for an effective and efficient system of production
control.
2. To measure the worker’s productivity.

Want:
1. To expand Stainless Products Philippines (SPP) nationally and eventually,
worldwide.

V. AREAS OF CONSIDERATION

These are the areas to which the company may need to give serious consideration
in order to successfully address concerns and attain set objectives.

Weight Rating Weighted

Score
Strengths:
Wide assortment of products
Job orders daily updated
Number production equipment’s
Foreman knows the business well
 Weaknesses:
Lack of manpower
Reluctant to change
“Old School” foreman with heavy
workload
Job-lot basis production
Poor records keeping
No measurement of productivity
Workers paid hourly
Semi-skilled workers
Total Weighted Score
Conclusion:

VI. ALTERNATIVE COURSE OF ACTION (ACA)

The following are the proposed alternative course of actions (ACA):

1. Strictly implement and regulate production control in continuous
manufacturing using mass production system.
2. Implement production control in intermittent manufacturing and organize the
production schedules.
3. Get a bigger plant and additional manpower.
Alternative 1 Alternative 2 Alternative 3
Key Factors Weight
Rating Score Rating Score Rating Score
1.
2.
3.
4.
5.
6.
T
otal
 VII. RECOMMENDATION

With the above analysis we therefore recommend Alternative Course of Action

Number One (1) as the most effective and efficient system of production control
and measuring worker’s productivity for Stainless Product Philippines. SPP being
a small manufacturing company is best to implement the continuous
manufacturing using mass production system wherein one type of product or a
maximum of two or three types are manufactured in large quantities, there will be
no customization of orders for the consumers. SPP will only produce or
manufacture dish racks and washing machines as big percentage of SPP annual
revenue are from these two. Through standardization of product, process,
materials, and machine, there will be no downtime in the operation and division
of labor is more efficient and use of productivity techniques is made feasible
because flow of process is uninterrupted. Sales revenue is forecasted in advance
and demands of consumers will be accommodated in timely manner as the
volume of output is large in continuous manufacturing. SPP level of inventory
will be keep on track and monitored. There will also be a minimum flow work for
the foreman, so he could focus more on the important tasks in the production. Mr.
Cruz may reduce overhead costs by cutting out manpower because most of the
production will rely mostly on machinery than any other resources.

VIII. ACTION PLAN

Functional Objective Strategy Time Budget

areas Frame
Man To properly utilize workforce Manpower Year round Php2M
planning
Materials To procure quality materials, Inventory Year round Php10M
have regular supply and Management
handle these materials System
efficiently

Standardization
of Materials
Machine To ensure equipment are Advance Year round Php10M
being used efficiently with planning and
due consideration to quality, scheduling
and safety among others system

Regular
maintenance and
checking
Method To improve and efficiently Method Study, Year round Php2M
 work procedures implementation
and monitoring
Money To efficiently meet day to Financial Year round Php25M
day and long-term business Management
requirements on funds or System
working capital
Moment To efficiently meet company Time bounded Year round Php1M
goals set through vision and Vision, Mission
mission statements and Goals
Statement