Background of the Study

Star Screwtech Bolts and Nuts Incorporation is a manufacturing company

recognized to produce specialized screw products. The company is known to be

processing precision cylindrical nuts and ball screws using new technology for outputs

with high precision

Star Screwtech Bolts and Nuts Co. Ltd. is nut and screws manufacturing

company based at Alabang – Zapote Road, Almanza Uno, Las Pinas, The company

specializes in manufacturing different ring drives, nut, bolts and jigs which are mainly

used in automatic doors, mechanical arms and parts and components of aircraft. The

company is well-known for their ring drives which can be produced with different

dimensions based on customer requirements. The company was founded on 2014 and

started producing different screws and nuts which leads to their recognition in the

industry.

The company is currently experiencing production loss due to Ineffective

utilization of NG-46, ineffective schedule and Machine Breakdowns. NG-46 compound

is a liquid compound used under the lapping process; the compound is what grinds,

sands, smoothens and shapes the inner part of the cylindrical nut into the desired

dimension. Ineffective utilization of the compound leads to loss because the liquid runs

out before some of the raw materials are even processed. The following problem faced

by the company is the unmotivated workers who sometimes come to work late therefore

delaying production on their specific line. The workers are unmotivated because of the

production schedule that the company employs which is 10 hours per day and 6 days
per week. Accumulated tardiness contributes to hour’s loss for production. The

researchers were also informed of machine breakdowns which lessen the utilization of

the machine because of the time it takes for the corrective maintenance. The company

does not have any scheduled preventive maintenance and only employs corrective

maintenance during breakdowns. These machine breakdowns are often caused by

hardening of NG-46 compound on its components after continuous use. Another cause

is because of overheating due to the long working hours per day.

PROBLEM STATEMENT

The Star Screwtech Bolts and Nuts Co. Ltd. is experiencing a production loss of

12.26% amounting to Php 1 557 600 for the months of August 2018 to January 2019.

ANALYSIS OF CASE STUDY

The study was conducted on April 26, 2019 in in Alabang – Zapote Road,

Almanza Uno, Las Pinas. The researchers focused on the production of cylindrical nuts

from August 2018 to January 2019. The researchers tried to find the root cause of the

problems encountered by the firm and the possible alternative actions that can be made

to eliminate the production loss.

Observation

The researchers focused mainly on the production of the cylindrical nuts

which is worked by 12 of their workers. The observation was done by scrutinizing

the work being done by a qualified operator assigned by the supervisor.

 Every operation of the whole process was observed. The machines and tools

used and also the process how it is done is observed during the visit.

Some of the questions asked:

 What are the products produced in the company?

 How many workers are in the production?

 What are the machines used? Do they encounter breakdowns

often?

 Is the standard output per day being met by the worker?

 What are the common problems encountered in process?

 Where and how do you order the raw materials used?

DEFINITION OF TERMS

Cylindrical Nuts - usually used in aircraft and missiles to move control

surfaces, especially for electric fly by wire, and in automobile power steering to

translate rotary motion from an electric motor to axial motion of the steering rack.

They are also used in machine tools, robots and precision assembly equipment.

Grinding Machine - a machining process that takes a very light “cut” using

abrasive media—typically an abrasive grinding wheel. Grinding wheels with

different grit sizes achieve rougher or finer grinding passes, according to the needs

of the application.
 Jig - Custom made device used for holding the piece to be worked-on in a

correct position relative to its associated tool.

Lapping - an abrasive machining operation which utilizes a rough chemical-

mechanical-polishing (CMP) process, where a sample (such as a metal, ceramic,

plastic, glass, or silicon substrate) is machined, smoothed, and planarized to a

high degree of refinement or accuracy using a rotating, serrated, cast-iron-alloy

circular plate and an abrasive slurry grit in water suspension applied to the plate in

a controlled fashion.

Lathe Machine - machine tool that performs turning operations in which

unwanted material is removed from a work piece rotated against a cutting tool.
GATHERED DATA

Table 1.1 Summary of Production Loss

Target Actual Output Production

Month
Output Output Difference Loss
August 2018 4 500 3 948 552 12.27 %

September 2018 4 500 3 946 554 12.31 %

October 2018 4 320 3 787 533 12.33 %

November 2018 4 320 3 792 528 12.22 %

December 2018 4 500 3 951 549 12.20 %

January 2019 4 320 3 791 529 12.25 %
Total 26 460 23 213 3 245
Average 4 410 3 868.83 540.8 12.26 %
Source: Star Screwtech Bolts and Nuts Co. Ltd.

Table 1.1 shows the summary of production loss of Star Screwtech Bolts and Nuts Co.

Ltd. in the production of cylindrical nut for the month of August 2018 – January 2019. In the

given table, it is shown that the target output is not achieved based on its actual output.
Computations:

August 2018 November 2018

Output Difference = 4 500 − 3 948 Output Difference = 4 320 − 3 792

= 552 = 528

4 500 − 3 948 4 320 − 3 792

Production Loss = 𝑥 100 Production Loss = 𝑥 100
4 500 4 320

= 12.27 % = 12.22 %

September 2018 December 2018

Output Difference = 4 500 − 3 946 Output Difference = 4 500 − 3 951

= 554 = 549

4 500 − 3 948 4 500 − 3 951

Production Loss = 𝑥 100 Production Loss = 𝑥 100
4 500 4 500

= 12.31 % = 12.33 %

October 2018 January 2019

Output Difference = 4 320 − 3 787 Output Difference = 4 320 − 3 791

= 533 = 529

4 320 − 3 787 4 320 − 3 791

Production Loss = 𝑥 100 Production Loss = 𝑥 100
4 320 4 320

= 12.33 % = 12.25 %
 The target output per month is achievable since according to the company’s

data, their target output of the 40mm ring drives per day is 15 units per worker. With 12

operators working on this production, the total target output per day is 180 units.

Target No. of Output per day

15 units per worker

Total Work Time

= 11 hours – 1 hour break

= 10 hours

= 600 minutes

Total No. of Output per Day (for 12 workers)

= (12 workers) (15 units)

= 180 units
Table 1.2 Summary of Profit Loss

Total Output Cost per piece Profit Loss

Month
Difference (Php) (Php)
August 2018 552 480 264 960
September 2018 554 480 265 920
October 2018 533 480 255 840
November 2018 528 480 253 440
December 2018 549 480 263 520
January 2019 529 480 253 920
Total 3 245 1 557 600

Table 1.2 shows the data of the summary of income loss of Star Screwtech Bolts and

Nuts Co. Ltd. from August 2018 – January 2019. The cost of the cylindrical nut manufactured is

amounting to Php 480 per piece. These data are given by the Personnel Head of Star

Screwtech Bolts and Nuts Co. Ltd., Ms. Debbie Ann Piquero.

Computation: Profit Loss = Total Output Difference x Cost per Piece

 Total Units Percent
Categories Causes
Affected Contribution

Ineffective
Man 1 037 31.95 %
Schedule
Ineffective
Method Utilization of NG- 1 128 34.76 %
46 Compound
Machine
Machine 1 080 33.29 %
Downtime
TOTAL 3 245 100 %
Table 1.3 Summary of Units Affected

Table 1.3 shows the summary of different factors which contributes to the production loss of the

company based on categories. It shows that the highest contributor is due to the ineffective

utilization of the NG-46 Compound. The operators do not observe a standard procedure in order

to identify the amount of liquid is needed per cylindrical screw in production, resulting to higher

units affected for these delays.

Figure 2.2 Fish Diagram

MACHINE
(33.29%)

Machine Star Screwtech Bolts and

Breakdown
Nuts Co. Ltd. is
experiencing a
production loss of
12.26% in producing 40
mm Ring Drives
Ineffective Utilization amounting to Php 1 557
of NG-64 Supply
600 for the months of
Ineffective Schedule (34.76%)
(31.95%) August 2016 to January
2017

METHOD
(66.71%)
Computations:

MACHINE (Machine Breakdown)

UNITS AFFECTED
𝑋 100
TOTAL NUMBER OF UNITS AFFECTED IN 6 MONTHS

1 080
= ( 3 245) X 100

= 33.29%

METHOD (Ineffective Utilization of NG-46 Supply)

UNITS AFFECTED
𝑋 100
TOTAL NUMBER OF UNITS AFFECTED IN 6 MONTHS

1 128
= (3 245) X 100

= 34.76%

METHOD (Ineffective Schedule)

UNITS AFFECTED
𝑋 100
TOTAL NUMBER OF UNITS AFFECTED IN 6 MONTHS

1 037
= (3 245) X 100

= 31.95%
Table 1.4 Frequency of Tardiness

Frequency of Tardiness per Month

Operators
August September October November December January
Francis
1 0 3 2 1 0
Calinawin
Greg Tupas 2 2 2 0 0 2
Gino dela
2 1 3 0 2 2
Paz
Nelson
0 1 0 2 0 2
Doyola
Jason
0 2 2 2 3 0
Mangohig
Rene
2 3 3 2 0 1
Balolong
Ver Hondos 2 3 1 2 0 1
Mack De
1 3 2 3 0 2
Leon
Marco
1 2 3 0 2
Rebuyas
Ceazar
0 0 2 3 0 2
Valdez
Allan
1 2 1 0 0 2
Navarro
Rey
1 1 0 0 1 2
Maglaqui
Total 5 6 6 6 6 6
Table 2.12 shows the total frequency of tardiness of the workers from August to

January.
Table 1.5 Summary of Hours Late due to Tardiness

Hours Late Total

Operators Hours
July August September October November December Late
Francis
1.13 2.36 0 0 2.12 0.20 5.81
Calinawin
Greg Tupas 0.75 0.3 1.01 0.56 0.87 1.15 4.64
Gino dela
0.68 0.75 1.05 0.65 0.88 0.51 4.52
Paz
Nelson
0.92 0.68 0.72 1.32 0.48 0 4.12
Doyola
Jason
1.34 0.85 1.22 0 1.04 0.21 4.66
Mangohig
Rene
0.41 1.25 0.75 1.29 0.97 0.43 5.10
Balolong
Ver Hondos 1.58 0.47 1.07 0.23 0.59 0.79 4.73
Mack De
0 0.64 0.36 1.45 0.86 1.24 4.55
Leon
Marco
1.49 0.34 0.54 0.88 1.46 0.57 5.28
Rebuyas
Ceazar
0.83 1.05 0.76 0.89 1.25 0.18 4.96
Valdez
Allan
1.72 1.89 0 0.77 1.32 0.95 5.11
Navarro
Rey
0.71 0 0.67 1.23 1.16 0.36 4.13
Maglaqui
Total 57.61

Table 1.5 shows the total hours loss on the production due to the tardiness of

the unmotivated workers.

Table 2.14 Affected Units

Production Loss
Operator Total Hours
Total Affected Units
Greg Tupas 5.81 104.58
Francis Calinawin 4.64 83.52
Gino dela Paz 4.52 81.36
Nelson Doyola 4.12 74.16
Jason Mangohig 4.66 84
Rene Balolong 5.10 91.8
Ver Hondos 4.73 85.14
Mack De Leon 4.55 81.9
Marco Rebuyas 5.28 95.04
Ceazar Valdez 4.96 89.28
Allan Navarro 5.11 91.98
Rey Maglaqui 4.13 74.34
Total 57.61 1 037

Table 2.14 shows the affected 40 mm ring drives due to ineffective scheduling.
Discussion of Several alternative solution

Ineffective
Utilization of NG- Ineffective Workload Machine
46 Compound Assignment Breakdown

The Star Screwtech Bolts and Nuts Co. Ltd. is experiencing a

production loss of 12.26% in producing a 40 mm Ring Drives
amounting to Php 1 557 600 for the months of August 2016 to January
2017

Opportunity Profit Loss Customer

Loss Dissatisfaction
Problem Analysis

Causes

1. Ineffective Utilization of NG-46 Compound

As shown in Table 2.4, there are shortages of NG-46 liquid used in the

lapping process to its intended batch of units which causes delay in the

production. The amount of NG-46 being used is just estimated by the workers

per day which causes the liquid to be consumed before the next batch of delivery

arrives.

2. Ineffective Workload Assignment

The company experiences a problem with workers due to their workload

assignment. As shown in Table 1.5, the existing production schedule in

producing 40mm ring drives is 10 hours per day and 6 days per week while on

the production of 45mm ring drives, it is produced for only 3 days a week. The

long working hours causes delay on the production line since they experience

overwork which makes them unmotivated to work.

3. Machine Breakdown

The company faces problem with machine breakdown due to not having a

scheduled preventive maintenance to keep the machines in good working

condition. The occurrences for the lathe and grinding machines’ breakdowns.

Most of the machine breakdowns are caused by the hardening of NG-46 liquid in

the chuck and spindle, and also the long production hours that causes

overheating of the machine.

Effects

1. Opportunity loss

Due to the ineffective utilization of NG-46 liquid used on the lapping

process, lower number of outputs are produced. This is a loss of opportunity for

the company because it have failed to complete their target output per month.

The company loses the opportunity to make more products to achieve the target

output desired by the customers.

2. Profit loss

The company suffers from profit loss due to the ineffective existing

production schedule of the workers as well as their workload assignment. The

workers cannot able to meet the target output because of the time wasted waiting

for the next batch of raw materials to arrive.

3. Customer Dissatisfaction

Star Screwtech Bolts and Nuts Co. Ltd. have different clients which serves

as their customers. It is the company’s goal to guarantee that the customers’

needs are considered and met. With the occurrence of machine breakdowns in

production, the company suffers since they will not be able to comply with their

customer’s and clients’ orders on time.

Possible Solution

Implement
Improve Existing Reassignment of Preventive
Job Design Workers Maintenance

To eliminate the 12.26% loss in production of 40mm Ring Drives

amounting to Php 1 557 600 from August 2018 to January 2019

Opportunity Gain Customer

Profit Gain
Satisfaction
INPUT

1. Improve Existing Job Design

The company should have an improved job design on the

utilization of NG-46 liquid under the lapping process so that it is fully

consumed just as the next batch of delivery arrives. By providing a

standard measurement on the amount to be used per day, the workers

would be able to make sure that the required amount of liquid is utilized

avoiding shortage.

Due to the workers not having a clear specification of the proper

quantity of NG-46 used per product; the workers just estimate the

quantity of liquid used on the lapping process. The company runs out of

the liquid before the next batch of supply arrives and this leads to

unfinished products. The researchers propose that the company should

provide proper measurement of quantity that the workers should use per

production to avoid wastage of the liquid and to make sure that the

supply last till the next batch of raw materials.

2. Reassignment of Workers

The company should transfer workers from the production line of 45

mm ring drives to the production of 40mm ring drives to avoid workers to

overwork. In this way, the production schedule of the workers will be

improved. The schedule will be shortened to 5 days per week of work and

workers will be added which will lessen the work load to the workers of
 40mm ring drives. The target output will be achieved in this manner

without overworking the workers.

The workers in producing the 40mm Ring do work 6 days a week and 10

hours a day. The schedule itself is too much of a burden for the workers since

they work six days a week. This causes the workers to be unmotivated and

causes them to have tardiness. The researchers propose that the workload

would be distributed to another set of workers operating on another product that

isn’t a priority. The researchers proposes a new schedule for both set of workers

to be able to adjust and compensate on the products that isn’t finished on time.

The researchers decided to lighten up the workload of the workers by turning

their working days into 5 days instead of the existing 6 day per week.

3. Implement 5s0

Implementing 5s(sort, set in order, shine, standardize, and sustain

will improve their housekeeping and sort everything in order. Through

implementing 5s, the production will be smoother with less interventions.

Also with regards to machine maintenance, implementing 5s will help

sustaining the capabilities of the machine as well as the needed raw mats

in the production.

Star Screwtech Bolts and Nuts Co. Ltd. should

implement 5s in order to further improve their housekeeping and sort

everything in order. Through implementing 5s, the production will be

 smoother with less interventions. Also with regards to machine

maintenance, implementing 5s will help sustaining the capabilities of the

machine as well as the needed raw mats in the production. Standardizing

also means that there will be less waste on the production especially

those of the NG-46 compound. A clean work area also helps the worker

maintain the mood in doing their works.

OUTPUT

1. Opportunity Gain

The company would gain the opportunity to meet the target output

once the workers are able to fully utilize and not waste NG-46 on the

lapping process. The company would be able to produce what is required

of them and could have the opportunity to widen their market by other

companies who seek their product.

2. Profit Gain

The elimination of delays caused by the existing ineffective schedule

would make sure that the company produces their products on schedule

and they would be able to meet their target output. The company would

gain profit from the products being delivered on time to their customers

and client with the smooth production.

 3. Customer Satisfaction

Customers would be satisfied once the quality of the products is

maintained through a smoother and continuous production. With a better

maintenance schedule, the machines would always be in good condition

for production. Their customers would be satisfied with their performance

since the company would be able to meet the target output and the agreed

quality.

Conclusion and Recommendation

Conclusion

The study is all about eliminating the 12.26% production loss experienced by

Star Screwtech Bolts and Nuts Co. Ltd. In the production of 40mm Ring drives

amounting to 1,557,600 Php from the months of August 2018 to January 2019. This

production loss is caused by problems relating to the company’s operation and

schedule.

The main problem was brought about by the ineffective utilization of NG-46

supply; a liquid compound used under the lapping process in producing the ring drives.

The workers do not have any standard measurement on how much of the compound

should be used per product resulting to the wastage of the liquid and its eventual

shortage by the end of the month. Another problem refers to the scheduling of workload;

the workers work for 6 days per week and 10 hours a day. The schedule is a burden to
the workers and causes them to be unmotivated and tardy. The third problem faced are

the machine breakdowns due to the company not having scheduled preventive

maintenance and the inefficient utilization of NG-46 which hardens and clogs the

machines.

The researchers proposes that the company should provide proper job design

and standard measurements on handling the NG-46 liquid to ensure that it is utilized

well and avoid shortage and wastage of the compound. This could be done by providing

the proper tools for the job which are pre-measured droppers. Another alternative that

the researchers proposed is the application of an improved work schedule for the

workers to cut their 6 days’ work into 5 days per week. This new schedule would ease

the workload and motivate the workers to perform better. The application of a 5s would

also keep the machines in good working condition before production and together with

corrective maintenance and proper handling; The company would avoid breakdowns

since proper storage and organization is implemented in the production. All these

alternatives would help the company in eliminating their production loss and improve

their performance.
Recommendation

The researchers recommend following the alternatives stated in this study

especially in the first alternative course of action which is providing pre-measured

droppers that the workers would use under the lapping process in the production of

40mm Ring Drives. By providing these tools, the company would ensure that the

workers would be able to properly and efficiently utilize the compound in an effective

manner to make sure that there would be no waste and shortage while meeting the

quality of output that they aim to produce. By applying this alternative, the company

would also have less machine breakdowns since the liquid compound used under the

lapping process would not be used excessively and this would avoid its hardening and

clogging of machines. The researchers found out that by applying all three alternatives,

the company would be able to produce what is required of them in an efficient and

effective manner. The application of a new and lighter schedule of workload to the

workers would also improve worker morale since their existing schedule is too heavy.

The addition of preventive maintenance would also ensure that each machine is in good

working condition before every production schedule