A system study on the production department of JLC Printing Company

Executive Summary. JLC Printing Company is a manufacturing company engaged in the printing business. A study on the present system of their production processes in the context of People, Raw Materials, Information flow, Machinery, Equipment and Utilities was done. Thorough the use of a WOT-SURG analysis it was uncovered that JLC Printing Company experienced a 6% Excess on the 10% Raw Material Scrap allowance, amounting to P 474,451.17 for the year 2000.To minimize the percentage of scrap cost with respect to the company's sales, the causes of excess raw material scrap must be eliminated or minimized. After validating the causes by obtaining segregated scrap data from March to May of 2001 and using the Pareto analysis, it was found out that the major contributors to excess scrap are the paper jam on both Offset and Vertical Letterpress printing machines, poor material handling, too much / not enough ink in the offset machine, wrong mixture of color, and being unable to stop the Minerva Letterpress Machine.In order to achieve the objective of the study, which is to meet the 10% raw material scrap allowance, a new system which contains the following was proposed: Changing of the suction cups, for the Offset and Vertical letterpress machine, every two weeks instill a 5 S Program constant checking of the offset machine's output Color Chart System and to fabricate and install a foot pedal onto the Minerva Letterpress Machine. The proposed solution would result to a net benefit of about P 570,000.00 a year and the percentage of raw materials scrap cost with respect to the company's sales is lowered to about 8%.