Project management system study of large scale projects of Reign-Nan Sales Industry and General Contractors, Inc.

Reign-Nan Sales Industry and General Contractors, Inc. (RSIGCI) was founded in 1997 and is located in Cabuyao, Laguna. The company specializes in sourcing, supply and maintenance of products for industrial and commercial application imported directly from other Asian countries and Non-Asian countries such as Europe, North America, and Australia. RSIGCI is also engaged in civil works, painting and masonry jobs, trading of electrical and mechanical equipment, parts for industrial use, and installation and commissioning, which is part of after-sales services.The study focuses on the engineering department of Reign-Nan Sales Industry and General Contractors, Inc., gathering and analyzing the system's data from January 2017 to December 2017. Based on the company's present system detailed using 4M and SWOT analysis, 7 out of 1 O projects exceeded the allowable over budget of 7 .5% for the cost of materials with an average delay of 15 days. The company incurred a total cost of Php2,553,433.14.In order to address the problem, an initial cause and effect diagram was created to identify initial causes of the problem, then a Pareto chart was made to validate the initial causes identified, and lastly, a why-why diagram was generated to highlight the two main causes in the Pareto chart. For the validated cause of reordering of mate1ials due to changes in the specifications with a contribution of 61.82% to the problem; the root causes are: limited space of the company's warehouse and another project using all on hand stock of the same material specification and not restocking it. Each has a percent contribution of 65% and 35% to the validated cause respectively. And for the materials ordered with less than the amount needed with 20.91 % contribution, the root causes are: outdated stock cards regarding shelf life of materials and multiple transfers of data from stock cards before encoding. Respectively, each has a root cause of 42.65% and 57.35%.The solutions were determined through the Kepner Tregoe Decision Analysis. The final solutions are as follows: (1) get a partner supplier for the company's in-demand materials (sand, gravel, and cement materials), (2) maintain safety stock levels, (3) modify the current excel template used by making the computation of the remaining shelf life automatic and notify when item is for disposal, and ( 4) use the printed copy of monitoring sheet for the physical counts. No costs will be incurred once these proposed solutions are implemented. Nonetheless, the proposed system can potentially incur a net benefit of Php2,094,379.73.