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Minimizing the production losses of ECO PUV Jeepney in the

Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

CHAPTER 1
1.1 Introduction

Jeepneys are a popular means of

transportation in the Philippines. They

were originally made from US Military

Jeeps. When the US began reducing

their military presence in the Philippines

at the end of World War II, they

surpluses a lot of Willy’s jeeps. Fig. 1.1 Company

Enterprising Filipinos began extending the length of these and turning them

into local people haulers. True to the Filipino spirit, they didn’t stop there but kept

embellishing and decorating them in an infinite variety of ways. A writer once said:

“The Jeepney is a mobile assemblage of signs and symbols, decorative motifs and

fetishes, rattling along the streets of Metro Manila and other towns throughout the

archipelago with a “Whoopie” that would astonish the designers of the original

Willy’s jeeps”. The supply of surplus jeeps ran out long ago, but the Filipinos kept

making their jeepneys, building them now from scratch but keeping the same basic

shapes. This has only changed recently with competition from the "Jumbo Jeepney" -

one you can actually stand up in, and the e-Jeepney powered by electric motors.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Established in March 1975, HINO MOTORS PHILIPPINES

CORPORATION (HMP), formerly Pilipinas Hino, Inc., is a joint-venture among

Filipino investors, Hino Motors, Ltd. and Marubeni Corp. of Japan. Originally

majority-owned by the local partner, HMP has been re-launched under the new

majority ownership of Hino Motors, Ltd. A participant in the Commercial Vehicle

Development Program (CVDP), HMP is engaged in the assembly and distribution of

quality HINO trucks, buses and spare parts. Aside from manufacturing vehicles and

bodies, HMP also distributes genuine Hino parts and accessories and provides long-

term maintenance services to its clients. It is also the only company which offers

customization thus becoming a “one-stop shop” – from chassis assembly to building

the body based on the desired specification of the client and further to vehicle

maintenance, repair and refurbishing.

The company currently has over 20 Dealers in several locations around Metro

Manila, as well as in most key provincial cities. Now on its 43rd year, HMP

recognizes the challenges of increasing competition that comes with new trade

policies on both local and global level.

Hino Motors Philippines Corporation is the first bus body manufacturer in the

country to receive ISO 9001:2000 Certification, a distinction that serves as a proof of

unmatched product quality. Its leadership in the industry can be attributed to the

durability and cost-effectiveness of Hino products and this is reflected in its tag

line “Hino - Global brand, lifetime value.”

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

The Hino jeepneys, which are Euro IV-compliant, aim to deliver a more

efficient engine while adopting green technology to reduce harm to the environment.

The approved routes of the jeepney units include Gate III of Fort Bonifacio to

Guadalupe Market and Bagumbayan, Taguig to Pasig.

The PUV modernization program is envisioned to replace some 250,000

jeepneys nationwide with environment-friendly, convenient, and comfortable public

utility vehicles.

In a formal key turnover ceremony was conducted, July 18, Hino Motors

Philippines (HMP), exclusive distributor of Hino trucks and buses in the Philippines,

turned over the first batch of Class II, four-wheeler AC modern jeepney units to the

Pateros-Fort Bonifacio Transport Service and Multi-Purpose Cooperative

(TSMC) and the Taguig Transport Service Cooperative (TSC).

Hino is ready and able to answer the call of the government’s PUV

Modernization Program (PUVMP) by providing sustainable modern Euro 4-compliant

jeepneys. Consistent with the Department of Transportation (DOTr) and Land

Transportation Franchising & Regulatory Board together with the Office of

Transportation Cooperative’s theme, “ArangkadasaPagbabago,” Hino works hand in

hand with different stakeholders to speed up the modernization of the country’s

transport system. Its modern jeepneys deliver a more efficient engine while adopting

green technology to reduce harm to the environment.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Hino takes pride in being the only one-stop shop for trucks and buses

nationwide, customizing vehicles to customers’ requirements from design to

manufacturing. The company’s modern jeepneys use the Beep Card system and

feature a speed limiter, GPS, CCTV, a dashboard-mounted camera and air-

conditioning. Built according to the requirements set by the Bureau of Philippine

Standards, a Class II Hino jeepney can accommodate 23 commuters in

comfortable, seatbelt-secured and perimeter seats.

1.2 Background of the Study

In the structural line of Hino Motors Philippines, there are 10 Bay Activities,

each intended for a process of ECO PUV Jeepney. In every Bay, there is a minimum

of at least2 argon tank and maintenance personnel is always on standby.

The process in making ECO PUV Jeepney start with a big role of argon tank.

They have 15 minutes to replace argon tank, after the argon tank is delivered in the

designated area the process will be made. The argon tank is used to attach and

assemble each part of ECO PUV Jeepney. In assembling parts it started in Bay 1

which is dismantling of chassis, in this process the body is mounted, rise plate to floor

joist and full welding is inserted, after assembling and attached each part of ECO

PUV Jeepney base body in Bay 1 it can move to the next process until last, to form

the whole Jeepney. If Bay 1 does not finish in processing, all Bay’s will be missed

and cannot be started.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

The problem is the work delay of workers in the production of ECO PUV

Jeepney. This problem affects the production area which can be result of inadequate

performance of the workers to perform the assign task, long process of requesting

argon tanks slow down the workers to produce the demand orders of the customers.

There are possible solution to prevent a work delay to replace Argon tanks. First,

improve the management methods, the person who is in-charge in the area is

responsible for creating a plan that includes all the required elements to complete the

project for the deadline. Second, stay organized, it is the key to a stable workspace.

Wasted man-hours can be result of lack of organization, well-organized place for

everything from materials, to machine and tools create a smoother workflow.

Hino Motors Philippines has a manpower manufacturing system of Eco PUV

Jeepney. For six (6) months, total days of operation are 151 days and total operating

hours are 1,812 hours that is equivalent to ₱ 104, 190 total cost of working hours. The

Bay 1 produced maximum of 302of dismantling chassis in just six (6) months.

Inside of production in Hino Motor Philippines, a work delays is one of the

reasons why those process getting longer or even having idle time further. Improving

management methods helps each worker to avoid unnecessary long travel to replace

Argon tanks with proper planning and easy way access.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

HINO MOTORS PHILIPPINES CORPORATION

STRUCTURAL SECTION

ECO PUV ACTIVITIES

Bay 1 ACTIVITIES

1. Dismantling of chassis accessories:


- Fuel tank
- Battery and battery carrier
- Air cleaner
2. Covering of piping, tires, engine, radiator, and
any other chassis parts.

Bay 2 ACTIVITIES

1. “BALATA” setting and installation


2. Riser plate setting and installation
3. Riser plate and chassis boring and bolt

Bay 3 ACTIVITIES

1. Body mounting, setting and alignment.


2. Riser plate to floor joist and full welding.
3. Lower skirt alignment.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Bay 4 ACTIVITIES

1. Middle door installation.


2. Stairway installation.
3. Wheel fender installation.
4. Driver’s flooring and driver’s floor stiffener
installation.
5. Floor flashing installation.
6. Full welding.
7. Side skin installation.

Bay 5 ACTIVITIES

1. Lower skirt skin installation.


2. Wheel arc opening setting.
3. Battery baggage installation.
4. G.I. roof installation and G.I. roof sill
installation.
5. Stairway skinning.

Bay 6 ACTIVITIES

1. Installation of door post cover.


2. Passenger’s window stopper and accessories
installation.
3. Upper and lower facial installation.
4. Floor seat rail and passenger’s flooring
manhole installation.
5. Installation of air cleaner, air cleaner box and
louvers.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Bay 7 ACTIVITIES

1. Lid cover installation


2. Driver and front door installation
3. Middle door installation
4. Installation and fabrication of engine louvers
and covers. (front LH/RH side)

Bay 8 ACTIVITIES

1. Front and rear panel installation


2. Bumper bracket installation
3. Tail pipe installation
4. Installation of rear windshield frame
5. Rear double walling

Bay 9 ACTIVITIES

1. Installation of front harness, handbrakes,


computer box, and other mechanical jobs.
2. Wiper motor bracket setting and installation.
3. Front windshield frame installation.

Bay 10 ACTIVITIES

1. Body checking:
- Welding
- Sealer application
- Alignment
- Grinding

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Current Flow Chart in Replacing Argon tank

Start A A

From structural line Be careful and Remove the lid to


going to warehouse. make sure it may the tank.
not fall.

Show the warehouse Place the adapter


request to replace From the storage, and tighten it.
the argon tank. take it back to the
structural line.
Tighten the
Remove the chain. Put in the transformer to
ensure there is
designated bay
exhalation.

Place the empty Remove the chain


tank to storage Place the regulator
to the adapter.

Lift the argon tank


Go to the refilling carefully Tighten the
station. regulator.

Remove the gloves Rotate the regulator


Get a new Argon
from hands.
tank.

You can start


Place careful argon
Lock it. welding.
tank in the push
cart.

A End
A

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

1.3 Problem Statement

The Hino Motors Philippines is experiencing 12.9% average of losses or 39

units of ECO PUV Jeepney that cost ₱70, 200, 000 in Structural line (Bay 1) due to

work delay from the month of July to December 2018.

1.4 Objectives of the study

The General objective of this research is:

 To reduce the production losses of ECO PUV Jeepney in Structural line.

The Specific objectives of this research are:

 To improve process flow for replenishing argon tank

 Proper place designation area of argon tank

 Assign trained personnel for replacing argon tank

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

1.5 Significance of the Study

To the Company, this study will benefit them to minimize the problem. This will

serve as a guide in solving the possible problems related to work delay that the

company could have. This will also help them to increase labor awareness and reduce

costs due to rework.

To the Students, this study will be an addition as a guide and reference for the

students for future studies, and help in learning new strategies that will widen their

perspective about work delay.

To the Future Researchers, this study will educate them to become familiar

in this situation and allow them to gather more ideas, learning and motivate them.

This study will also provide enough evidences and support for some studies about

work delay.

1.6 Scope and Limitations

The study will compiled all the six (6) month’s data from July to December

2018. In this case the researchers wants to observe, analyze and study on how to

reduce the work delay from Bay 1 and to make a continuous process flow in structural

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


line in Hino Motors Philippines on February 12,2019 and will end on March 2019 as a

partial fulfillment in Work Measurement. This study focused on the data given by

Hino Motors Philippines (HMP) this would be confidential between the researchers

and the company.

1.7 Conceptual Framework

INPUT PROCESS OUTPUT

CAUSES OF
WORK DELAY

• Long process of • Mandatory


request for argon inspection of the
tank argon tank
condition
• Inappropriate Cause Analysis,
place for Argon Output Evaluation, • Designated area
tanks Closed Monitoring for Argon tanks
System
• Random
• Conduct proper
personnel in training about the
replacing argon span use of argon
tank tank

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

1.8 Definition of terms

The researchers defined the following terms either technically of operationally.

ARGON TANK - the chemical element of atomic number 18, an inert gaseous

element of the noble gas group. Argon is the chemical use in welding machine.

BAY– every section in the production area

CHASSIS- the base frame of a motor vehicle or other wheeled conveyance.

ECO PUV - ecology friendly public utility vehicle.

EFFICIENT - capable of producing desired result without wasting materials, time, or

energy.

EMBELLISHING-make (something) more attractive by the addition of decorative

details or features.

FETISHES- an inanimate object worshiped for its supposed magical powers or

because it is considered to be inhabited by a spirit.

HAULERS-a person or company employed in the transport of goods or materials by

road.

IDLE- run slowly while disconnected from a load

RATTLES- make or cause to make a rapid succession of short, sharp knocking

sounds, typically as a result of shaking and striking repeatedly against a hard surface

or object.

REFURBISHING- renovate and redecorate

SURPLUS - an amount of something left over when requirements have been met; an

excess of production or supply over demand.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

STRUCTURAL AREA–production area composing of 10 bays in making of ECO

PUV from chassis to main body

WORKFLOW- the sequence of activities in the production area.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

CHAPTER 2

2.1 Review and Related Literature

2.1.1 General Studies

2.1.1.1 Client-End Delays (2019)

According to Brian Bass (2019) Project delays can also result from the client.

These delays may result from the client’s dissatisfaction or a client that changes his

mind regarding what the project entails. Either way, these delays are a relatively

common occurrence with many types of projects. As work develops and the client

assesses the progress, it is common for the client to request alterations. The best way

to try to prevent this type of delay is to draft a very clear and specific working

contract before the work begins.

2.1.1.2 Different measurements of quantified project (2011)

According to Suzanne H. Mitchell (2011), in this they examine the relation

between delay discounting and future time perspective by reviewing how these

concepts have been measured and quantified in order to assess their conceptual

similarities. The extent to which the different measures are empirically related is

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


reviewed by describing studies that have assessed both constructs and by comparing

the variables that have been associated with variations in delay discounting and in

time horizon. It suggest that both steep delay discounting and a short future time

perspective are associated with a range of problematic and health-damaging

behaviors, such as addictive disorders, risky behavior, poor school performance, and

delinquency. However, despite these shared associations, and despite the conceptual

similarities, the few studies that allow a direct comparison between measures of future

time perspective and delay discounting do not give reason to presume a robust

relation between them.

2.1.1.3 Scheduling of project materials (2016)

According to Martin Skit more (2016) the Power Transmission (PT) system is at

the very heart of the power industry and which is vital to the development of a

country. Delays in PT projects have a significant adverse effect on the economic

development of a country and although billions of dollars are invested globally in PT

projects, costly delays are common. Despite the critical nature of PT, the literature

relating to the causes of delays is embryonic, with no theoretical or empirical studies

yet conducted to establish the factors involved. This study presents a first step in

rectifying this situation. A total of 74 published articles are reviewed that are most

closely related to PT projects in order to identify their likely causes of delay. As a

result, 82 potential causes of delay are identified and classified into nine major

groups. The causes are then ranked in terms of their frequency of occurrence in the

literature. Finally, conclusions are drawn concerning the extent to which this review

and analysis may form a theoretical framework that can be tested empirically, as well

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Minimizing the production losses of ECO PUV Jeepney in the
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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


as providing crucial information with recommendation to PT project stakeholders to

achieve their key targets including the realization of the benefits involved.

2.1.2 Local Studies

2.1.2.1 Reducing Waste of Inventory, Waiting and Motion (2003)

According to Lean Manufacturing Tools, Techniques and Philosophy, (2003)

Transport is one of the seven wastes of lean manufacturing, a movement of products

from one location to another. This could be from the machining shop to the welding

shop and the transportation adds no value to the product, it does not transform it

because the customer would not be happy in paying for it. The Lean Manufacturing

Tools, Techniques and Philosophy also stated that the tools and techniques behind

Lean Manufacturing have been refined as part of the Toyota Production System (TPS)

many of their suppliers are located close to their plants, and products are not shipped

over a huge distances at great cost because it will result in potential for delay and

damage of products. Here are the Seven Wastes of Lean Manufacturing; Transport,

Inventory, Motion, Waiting, Over-Processing, Overproduction and Defects. The

waste of transport is a disease to the company, it causes hemorrhage of money

because the company must have to pay for material handling equipment, staff to

operate, proper training for the workers, extra space for the movement of material and

so forth. Due to delays of transportation it often leads to operations having to wait for

product to be delivered that causes the waste of waiting, thus it will cost more money

as well as extending the lead times and creating delivery problems. Excessive

transport also gives many possibilities for damage and losses. There are many causes

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


that contribute to the waste of transport. The main one is the waste of overproduction

which in turn to the waste of inventory, inventory that has to be transported

throughout the facility or between factories. The causes of this overproduction can be

from excessive setup times and the need for economic batch sizes. In addition to

overproduction is the in proper facilities layout that often leads to the long

transportation of the product. The company must have an organized functional silos,

that is have discreet areas for specific functions such as welding, pressing, molding

and many more. As the Company stated here are the examples of wastes of

transportation; The transport of product from one functional area to another area; The

use of material handling devices to move batches of material from one machine to

another within a work cell; The shipment of product from one factory to another; The

transportation of components from one place to another.

As studied by Lean Manufacturing Tools and Technique (2003) here are some

tips to reduce and eliminate the Seven Wastes. The first one is the waste of inventory;

all of the raw materials should be work in progress and finished stock that have been

hold. Second waste, the waste of waiting; waiting for work to arrive or to be told what

to do Third Waste, the waste of Motion; the excessive movement of man or machine

within the work space. Fourth Waste, the waste of Overproduction; produce a product

in advance of when required or in too great a quantity. Fifth waste, the waste of Over-

processing; doing products more than the customer needs Sixth waste, the waste of

Defects; parts or services that fail to meet customer requirements.

The Seventh waste, waste of Resources; failing to conserve the electricity, gas,

water and any other resources rely on. There are some examples of wastes of

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


Transport: The transport of product from one functional area such as pressing, to

another area such as welding. The use of material handling devices to move batches

of material from one machine to another within a work cell. The shipment of product

from one “functional” factory to another. The transportation of “cheaper” components

from one country to another.

Reduce and Eliminate the Seven Wastes to Improve Profit. Every cent that you

save by eliminating waste within your processes is a cent straight back on your

profits. By working to reduce your muda, mura and muri you will help prevent waste

from occurring in your processes. Eliminate and reduce all of the seven wastes within

your processes; the waste of inventory; all of the raw materials, work in progress and

finished stock that you hold. The waste of waiting; waiting for work to arrive or to be

told what to do. The waste of Motion; the excessive movement of man or machine

within the work space. The waste of Overproduction; producing product in advance of

when required or in too great a quantity. The waste of over processing; doing more

than the customer really needs. The waste of Defects; parts or services that fail to

meet customer requirements. The waste of Resources; failing to conserve your

electricity, gas, water and any other resources you rely on. The waste of creativity;

failure to respect and involve your employees in your business.

2.1.2.2 Monitoring and Controlling the process (2010)

As studied of Monitoring and Controlling the Project by Tricia Goss (2010).

Holding a team meeting. Once the study realized there is a delay, organize a team

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Minimizing the production losses of ECO PUV Jeepney in the
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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


meeting. Inform every one working on the project about the delay, including details

such as factors contributing to the holdup and how far it has set the project back.

Inputs and ideas on how to get back on schedule, and plan a course of action moving

forward. If you will require additional work from team members or supplementary

resources, make this known as well. Prioritize, review tasks assigned to team

members. Prioritize project assignments, moving any that are especially time sensitive

to the top list. Cut any fat, according to the study along with prioritizing which tasks

must be completed soonest, determine whether there are any assignment that can be

trimmed down or done away with completely. Bring in help, recruiting additional

assistance will allow you to overcome project delays get back on track. Track

vigilantly, recovering form project delays, keep a close eye on upcoming deadlines

and priority assignments. Focus, renewed perspective and focus on what is yet to be

completed.

2.1.2.3 Causes of shortage and delay in Material Supply (2017)

According to the Cause of shortage and delay in material supply, by IOP

Conference Series: Materials Sciences and Engineering (2017). Shortage and delay in

materials supply is argued to be one of the most important factors that lead to delay in

construction project delivery globally. However, the relevant underlying reasons vary

from country to country. As such, this studies summarized the outcome of targeted

identifying causes of shortage and delay in materials supply in Brunei. Causes of

delay in supply and shortage of materials. Those are summarized in the following

subsections. Causes of shortage of materials. Under of this is, origin or availability of

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Minimizing the production losses of ECO PUV Jeepney in the
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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


materials, few construction materials are locally available in Brunei, so it relies on

imported materials in general. The only available materials locally are: ordinary

Portland cement, sand, aggregates, timber, bricks and glass. However, their local

supplies cannot wholly meet the demand of the local construction industry. Therefore,

these materials, along with other construction materials, are imported to meet the

demand, mainly from China, Indonesia and Malaysia. This takes longer time for

sourcing, procuring and transporting of the materials. Moreover, land transport is the

only delivery method available within Brunei that results in to a long lead time for

materials. With higher demand of materials, for example during the construction of

national housing projects, which involve the construction of hundreds or thousands of

houses, local suppliers experience shortages of their stock. Saudi Arabia also

experienced project delays due to similar causes during their booming construction

industry in 1990s. On the other hand, locally available materials may also encounter

shortage in production. For example, one of the Brunei industrial areas had suffered

power failure for several days a few years back, resulting in to temporary stoppage of

cement production and the factory ran out of stock. During the times of higher

demand (i.e. increased number of ongoing projects), Brunei also suffers from shortage

of bricks at times and contractors need to import bricks from neighboring provinces of

Malaysia. Moreover, local authority limits timber logging to only 17% by the year

2045, although 75% of Brunei is covered with forest. This may cause shortage in

timber supply and Brunei may need to import it from neighboring countries to cater

for current needs. Poor estimation of materials quantity. Poor estimation causes either

shortage of supply or over supply. Shortage of supply disrupts construction progress

on site, as reordering can cause prolonged delay and additional costs, especially if the

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Minimizing the production losses of ECO PUV Jeepney in the
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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


material needs to be imported from overseas. Reordering might cause other problems

too, such as inconsistency in color and size tolerance. On the other hand, oversupply

incurs additional costs / losses to contractor. Poor workmanship. This occurs due to

lack of care by the contractor while installing the material (e.g. imported fittings and

fixtures, and modular parts), resulting in poor finishing and the product (i.e. material)

being non-functional. Similar to Brunei, rework of bad quality performance was

found to be one of the most significant factor causing project delays in India.

However, the problems in Brunei come from contractors’ installers, by not installing

the product in the proper way (i.e. according to the instructions of suppliers), as they

want to complete the work faster. Some materials need certain techniques to install,

but some contractors ignore these and use their own way to complete the job faster.

When problems arise, such as cracking or malfunction, an investigation by the

supplier then takes place. The outcomes of the investigation decide whether the

supplier should replace the materials or the contractor needs to compensate for the

losses. In either case, such problems delay the project activities as the investigation

process first needs to be done, followed by negotiations(between the contractor and

the supplier), and the ordering of new product results in more waiting time. Quality of

material. The quality of materials can delay their usage on site if the materials do not

meet the standard or contain defects. The defect can be due to improper handling

during packaging, shipment or delivery. This was also observed in a study in Iran.

Some materials may have minor defects that can be repaired, but some materials may

have major defects that cannot be repaired and therefore cannot be used at all, e.g.

broken sanitary appliances. This happened with one of the interviewed companies,

when they ordered a manufactured door from Malaysia. The procurement/ordering

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Minimizing the production losses of ECO PUV Jeepney in the
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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


process was made online, where the items were viewed through the manufacturer’s

website, and appeared to be nice products with good quality. However, when the

doors arrived on site, they were found to be of poor quality with holes throughout the

door panel, possibly due to insects or termites. The interviewed company made a

report to the supplier within three days of receiving the doors, with proof of defect, to

arrange for compensation. This consumed more time due to the need to wait for the

new doors to arrive. If it is already the time to install the door, then there is no choice

other than to wait for the next delivery. Inconsistent demand. Inconsistent demand

occurs when the sales of a material or product do no depend on the demand of the

local market. Paint is one such material. It is hard to know which color is saleable,

because sometimes clients look for a certain color of paint that is not in stock at that

time. If the quantity/volume required by the client is large and the local distributor is

also without stock, the material needs to be imported from overseas, usually from

Singapore. The manufacturer starts producing the paint once they receive the order,

and it normally takes one month to arrive in Brunei. But by the time the ordered color

is available, some different color that is unavailable is then demanded by the client.

Therefore, the paint of unwanted colour is kept in stock. However, once there is

demand, the paint will be sold out quickly and a new order then has to be made. This

seems to be a unique problem to Brunei, probably due to smaller volume of its

construction industry. Special materials. An example of such materials is special

appliances, fittings and lighting that are used in buildings that have differential needs,

e.g. prison, hospital or for diplomatic offices. One of the interviewees is the sole

distributor of specialized and sophisticated lighting appliances in Brunei. Therefore,

they should ensure the availability of this material to cater the local demand.

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However, the technology of such appliances change very fast, so they cannot take the

risk of keeping a large stock due to the fear that they cannot sell those after a few

months. Therefore, they only order the products Causes of delay in material supply,

nine causes of delay in supply of materials were identified. Labor productivity. The

Brunei construction industry largely relies on overseas labor, mainly from India,

Indonesia and Bangladesh. The labourers work in every sphere of construction related

activities: materials production, transportation, loading-unloading and on construction

sites. Most of them are unskilled, especially when they first come to work in the

construction sector. Some time is needed to train them, but even after training, many

of them remain less motivated, especially in materials production activities. They

seem to be idle for prolonged time, resulting in reduced productivity. The situation

worsens after servicing, cleaning and adjusting the machineries; the older the

machines, the more episodes of servicing and adjustment, therefore higher frequencies

of prolonged idle time. Furthermore, in Brunei, renewable labor work permits are

limited up to two years and therefore labourers are usually appointed on two-year

contract terms. Many labourers go back to their home country after one or two

contracts, but not all of them come back to Brunei. Hence, many new and unskilled

labourers are required to make up the shortfall, meaning a continuous need for

training and reduced productivity. Similar situation was observed in Saudi Arabia and

Turkey. Inclement weather. Inclement weather affect materials supply in two ways:

while importing materials from overseas via sea freight, and during delivery to the

project site. Shipment via sea freight depends on the weather condition of source

country of the materials, as it influences the loading, and of Brunei as it influences

unloading. Moreover, it is not safe for ships to sail in the sea during bad weather. As a

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result, delays are common during monsoon season. On the other hand, Brunei is a

tropical country with rain throughout the whole year, and the rain comes with little

notice. Rain can prevent the supply of some materials to construction sites. For

example, ready-mixed concrete suppliers do not produce concrete during the spells of

rains, because the water ingress cannot be controlled. If heavy rain starts when

concrete carrying vehicles reach the site, the concrete cannot be placed, because the

concrete will have excessive water content, and hence be too workable or too weak

(once hardened), or the concrete may even be washed away. As fresh concrete is

perishable, there is no turning back once the cement in the concrete has been mixed

with water. Such negative impact on schedule from undesired events like rainy

weather seems to be common in tropical or semi-tropical countries, e.g. in Malaysia

and Sri Lanka. Government restrictions. Certain materials (e.g. timber) need permit

approvals from government apartments before placing import orders, which may be

time-consuming if not planned well in advance. Permit approvals mainly deal with the

declaration of type, source, quantity and quality of materials to be ordered. This is to

ensure that only certain materials are imported, and exactly the declared type and

quantity of materials are imported. The economic planning control policy of the

country also prohibits importing cheaper materials and selling the same at higher

prices. Therefore, the importing companies have to specify correctly the type of

material in order to receive approval of their permits. If the permit is not granted,

more time is needed to get a new permit approval, resulting in to delayed delivery of

materials to site.

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2.1.3 Foreign Studies

2.1.3.1 Safety Ordinances on Inter-acting Argon tank (2000)

According to Occupational Safety and Health Administration, California (2000).

The standard weight of Argon Tank that a worker should carry is 2.205lb so that it

will easily for them to do their work without experiencing so much hardship in it.

2.1.3.2 Handling a Compressed Gas Cylinder (2009)

Practice Safety when Handling Compressed Gas cylinder. As stated by Bob

Davis the director of utilities at Airgas Inc. (2009) compressed gases are hazardous

due to their ability to create harmful environments that are either flammable oxygen

enriched or oxygen deficient. Certain specific properties of compressed gases make

them highly useful in various research activities. These gases, however, can be

dangerous if not handled in an appropriate manner. Many of the odorless and

colorless gases are highly toxic and flammable and this calls for utmost care while

handling them. Hazards in gas cylinder usage: Oxygen deficient atmosphere resulting

in asphyxiation., Formation of flammable gas air mixtures in case of leakage of

flammable gas., Oxygen enriched atmosphere in case of leakage of oxygen gas.,

Injury caused by fall of gas cylinders during handling., Exposure to high

concentrations of toxic or corrosive gases in case of leakage., Gas cylinders can

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explode when exposed to high temperatures, e.g., in case of fire., If the valve breaks,

the sudden release of compressed gas can turn it into a lethal projectile.Some of the

most common injuries related to cylinder handling result from falling cylinders. The

most prevalent are contusions and fractures in the lower extremities, including

breaks in the phalanges, metatarsal, tibia and fibula bones. The second-most common

injuries include sprains, strains and spinal cord injuries in the lower lumbar spine,

such as herniated or bulged discs (L1-L5) in workers who attempt to catch or stop

falling cylinders. Another misstep when handling cylinders is when a worker attempts

to move or lift the cylinder by pulling on the cap instead of using a cylinder cart.

Often, this results in the cap disconnecting from the cylinder and forcefully projecting

up into the worker's face, leading to injuries such as lost or broken teeth or other facial

injuries. Bruises and fractures, especially around the eye socket, are other common

injuries. When a cap is broken off or becomes damaged in a fall, the valve easily can

become compromised, exposing the worker to flammable or toxic environments and

burns, smoke inhalation or asphyxiation and gas poisoning. There are guides to avoid

mishandling of compressed cylinder tank: Always wear the proper personal protective

equipment (PPE), including safety glasses, gloves and hard-toed shoes when working

around or with compressed gas cylinders. Remember that the gas comes out of the

cylinder pressurized up to 2,200 psi and anything near the valve could become a

harmful projectile. Falling cylinders can land or roll on your foot, leaving you with

several broken bones. Never try to catch a cylinder that is falling, no matter how

confident you may be in your ability to stop it. It often is a natural reflex to attempt

the save, but the risk of injury far outweighs the potential damage to the equipment.

Do not move a cylinder by its attached regulator or attempt to drag it by the

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cap. Besides losing your grip, you also could strain your back or fall. It also is unwise

to move cylinders by laying them down and rolling them, as this subjects the cylinder

to side-wall damage. Instead, move the cylinder using an approved cylinder cart and

ensure that the cylinder is strapped on securely. Secure cylinders upright so that they

cannot move, even when traveling in a truck. Chains are the best way to do this, as

straps and table clamps often fail due to improper use and set-up. Clamps generally

are not kept tight and are placed on articles that are not secure, such as movable desks,

tables, etc. Straps can be buckled incorrectly and provide little to no restraint. Instead,

fasten restraints on the upper half of the cylinder, above the center of gravity, as well

as the bottom approximately 8 inches to 1 foot from the base. Never heat a cylinder. If

a cylinder is stuck in ice, use hand tools to carefully chip away at the ice, making sure

the hand tools never come in direct contact with the frozen cylinder. If the cylinder

contents have stratified in a mixture such as CO2 and N0x, bring the cylinder into a

safe building to slowly warm up while it is chained to the wall before rolling it to mix

the contents. When inspecting compressed gas cylinders, look for burn marks, dents

or corrosion, and check to see if the valve cap is attached and that the contents are

properly labeled by name. It is the receiver's responsibility to do this inspection as

noted in CFR 29 1910.101. Be sure to log this inspection to help guard against a hefty

lawsuit. Securely attach protective valve caps on cylinders when idle or in transport.

Many cylinders contain pressures in excess of 2,000 psi. A broken valve resulting

from a falling cylinder is all it takes for the cylinder to become an unguided missile.

Any uncontrolled release of gas under pressure can create a dangerous environment.

Once the cylinder cap is removed, always inspect the valve for odors, visible plumes

or hissing sounds. If you detect any of these, take the cylinder outside to a well-

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ventilated area and have your vendor pick it up. When moving cylinders, do not move

them with oily hands or gloves. This is very important when moving oxidizers, as

they could react violently with the oil or grease if it comes into direct contact with the

valve. Store cylinders in a fire-resistant area that is well ventilated, cool (less than 125

F) and dry. A fire extinguisher should be available where compressed gases are

stored, and have an emergency response and evacuation plan in place in the event of a

fire. Cylinders should not be stored in areas where they can come into contact with

objects of extreme temperature, such as a furnace or cryogenic liquid, as these

conditions will weaken containers or cause a gas release. They also should be kept a

safe distance of at least 20 feet from electrical sources including electrical switches,

outlets and extension cords, as they could become part of an electrical circuit. The

contents of each cylinder should be clearly marked and the full cylinders separated

from empty ones. When moving cylinders on an elevator, place the cylinder chained

securely to the cart in the middle of the elevator with the cart handgrip do not attempt

to ride in an elevator with a compressed gas cylinder. This is a confined space that

would be impossible to escape from if there were an accidental release of gases.

Check the purchase order to ensure that you are not receiving cylinders that contain

incorrect contents. The distributor should collect any incorrect cylinders immediately.

Finally, never force a cylinder valve open. Only use your gloved hands to open and

close the valve on the regulator. Compressed gas cylinders are a common tool for

manufacturing and construction jobs, and their hidden dangers easily are addressed

with proper equipment and handling. Follow these tips to ensure that all tasks

involving compressed gas cylinders are completed efficiently and safely.

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2.1.3.3 Managing New Personnel (2017)

As studied by Construction Management of June 15th 2017. The important project

is the major developer, or a real estate investor, they studied a way to finish

construction on time. The six ways to help to understand how the best contractors in

the business keep projects on track and maximize profits while doing. First, minimize

construction delays and blockers. Expert project manager know how to deal on the

two types of problem that prevent the project to be accomplished. The delay and the

blockers. A construction delay happens when things don’t go according to plan, and

since construction is often sequential, that’s often unavoidable. For example, the

concrete was planning to be pour in two specific day window, but it ends up raining.

The project must be pushed back two days and contractors must reschedule. Delay

can also happen when a subcontractors doesn’t show up on time, when work takes

longer than expected, or when material shipment are delayed. Blockers are different

from delays in that a blocker is a task whose completion is necessary before other

tasks can be undertaken. For another example, you may have scheduled a mason to

lay the bricks for your building, but you can’t lay bricks unless the foundation has

been poured. Careful planning is a must if you want to avoid delays, and you must

identify blockers well in advance of the project to keep them from being and obstacle.

Second, is to improve your management methods an incompetent management is

another major reason for project failure. Managers are responsible for creating a

project plan that includes all the required elements and delivering the completed

projected by the deadline. A construction manager is there to assign roles and

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responsibilities within a project and to coordinate labour and materials to the job site

so work can get done in a timely fashion. A great construction manager can juggle

several aspects of a detailed project plan while working to minimize delays and

aggressively remove blockers that can hold up progress. Modular Building Institute

highlights the need for more effective construction management: “Time, money, and

resources are wasted when projects are poorly managed, causing workers to have to

wait around for tools and work crews’ schedules to conflict; when work crews are not

on-site at the appropriate time; or when supplies and equipment are stored

haphazardly, requiring that they be moved multiple times.” (Modular, 2010). Third,

plan it comes to keeping your project on time, nothing is more important than having

a detailed project plan to work from. A great project plan that can easily be updated as

the project moves forward offers a bird’s eye view of the project, enabling managers

to quickly diagnose potential challenges and solve problems before they become

costly delays. A successful plan also contains contingencies for unforeseen

circumstances, creating clear guidelines for how your firm should respond to delays.

Fourth, assign clear roles and responsibilities. Commercial construction projects have

many employees, contractors, subcontractors, manager, and other personnel directly

involved any failure to delineated exactly what each party’s responsibilities are in the

project can result in critical tasks being ignored and created significant project delays.

Studied says that holding accountable people and establishing roles and

responsibilities that are clear to everyone is involved. Establishing accountability is

part of an effective project plan timeline remember to focus not just on what needs to

be done, but who will be responsible for doing it and by when. Fifth, schedule

contractors far in advance. And saying by Jonathan Scott a co-creator of Dream

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House recently launched venture. “If you have a development and you want to build a

house on it - sometimes it can take up a year just to get the architect’s designs

approved. What we’ve done is beat the legwork. We’re coming in with high-end

concepts that have already been approved. If a buyer wants to purchase a design as-is,

we could start construction tomorrow.” Setting the schedule is the first must the

construction consider. To avoid a disaster, determined what contractors you’ll need

far ahead of time and start obtaining quotes as soon as possible to ensure that you

won’t face delays. Sixth, establish clear communication between parties. Unforeseen

challenge materialized on the job site, it is crucial that contractors have a direct line to

project management team and that stakeholders are easily reachable for consultation.

Studies says, that project delays requires extensive planning and attention to detail. By

doing it right is easier to be done.

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CHAPTER 3

3.1 Problem Tree

Long process of Inappropriate Random


Causes request for argon place for Argon personnel in
tank tanks replacing argon
tank

The Hino Motors Philippines is experiencing 12.9% average

of losses or 39 units of ECO PUV JEEPNEY that cost ₱70, 200, 000

in Structural line (Bay 1) due to work delay from the month of July to

December 2018.

Low access and


Low Efficiency monitoring of
Effect argon tank

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3.1.1 Causes

3.1.1.1 Long process of request for argon tank

Having long process of request for argon tanks affects the workers job because they

could have idle time due to length of time obtaining the argon tank. And also, it stop

the process of making Eco PUV in reason that there is no argon tank the production

will not only affect but also the customers as well as the outputs they need..

3.1.1.1.1Ishikawa of Long process of request for argon tank

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3.1.1.2 Inappropriate place for Argon tanks

Fig. 3.1

The company may place a storage area for the argon tanks near the workplace

that does not affect the workers so as not to interfere with their time. The company

may follow the following: Check the fire code guidelines regarding the storage of

flammable gas cylinders. Store cylinders in a clearly identified, dry, well-ventilated

storage area that is not exposed to heat or the direct rays of the sun and way from

doorways, aisles, elevators, and stairs. Post “no smoking” signs in the area. Store

cylinders, both empty and full, in the upright position and secure with an insulated

chain or non-conductive belt. During storage, close the cylinder valves with the

protective caps in place. With outside storage, place on a fireproof surface and

enclose in a tamper-proof enclosure. Protect cylinders from falling. Use a chain or

adequate support system. Consider securing each cylinder separately to prevent other

cylinders from falling when items are removed from storage.

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3.1.1.2.1Ishikawa of Inappropriate place for Argon tanks

3.1.1.3 Random personnel in replacing Argon tank

Since there is a random personnel in replacing argon tank in the structural line

it will affect the workers job and disregard the satisfactory work. The more the

process of making the more difficult to handle because there is no proper choice of

worker to replace an argon tank.

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3.1.1.3.1 Ishikawa ofRandom personnel in replacing Argon tank

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Table 3.1.1 Cause of work delay in hours

MONTH Waiting time Excess time Lack of Man hour Late supply
for approval in travelling stock of under time of raw
of request argon tank Argon materials
using tank in
cylinder cart ware
house

July 2.28 1.47 0 0 0

August 2.05 1.48 0 0 0

September 2.3 1.42 0 0 1.5

October 2.32 1.43 0 0 0

November 2.87 1.55 0 2 0

December 2.08 1.3 5 2 0

Total 13.9 8.65 5 4 1.5

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Table 3.1.2 Cumulative Frequency Percentage

Description Downtime rate in Percentage (%) Cumulative %


hours

Waiting time for


approval of 13.9 42.06 42.06
request

Excess time in
travelling argon 8.65 26.17 68.23
tank using
cylinder cart

Lack of stock of
argon tank in 5 15.13 83.36
warehouse

Man hour under 4 12.10 95.46


time

Late supply of 1.5 4.54 100


raw materials

Total 33.05 100

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45 120
42.06 Factors affecting work delay
40
100 100
35 95.46

83.36
30 80
26.17
25 68.23
60
20
15.13
15 13.9 42.06 40
12.1

10 8.65
5 20
4 4.54
5
1.5
0 0
Waiting time for Excess time in Lack of stock of Man hour Late supply of
approval of travelling argon Argon tank in undertime raw materials
request tank using warehouse
cylinder cart
Downtime rate (in hours) Percentage Cumulative %

Fig.3.1.2 Pareto chart

The table above shows the computation of 80/20 rule for making Pareto chart.

The top 2 causes of work delay are waiting time for approval of request, and excess

time in travelling argon tank using cylinder cart in warehouse. Cumulative refers to

the sum of all causes.

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3.1.2. Effects

3.1.2.1 Low efficiency

Production with low efficiency can cause to have low profit margin for the

company as well as it affect the job of the workers inside the production, those order

from the customer will delayed.

3.1.2.2 Low access and monitoring of argon tank

Create a low coverage that can be related to poor access, low monitoring or

inadequate service delivery or even dissatisfaction of services. Establishing baseline

and targets setting can be successful and having good results.

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Table 3.1.3Efficiency

Month Target Actual Output


Output (units in pieces)
(units in pieces)

July 52 45

August 50 48

September 50 44

October 54 50

November 48 39

December 48 37

Total 302 263

A.) Given:

Actual Output = 263

Target Output = 302

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Required:

Average of Losses

Formula:

Actual Output

______________________
X 100%
Target Output

Solution:

263

___________
X 100%
302

Final Answer: = 12.9 %

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Table 3.1.4Total cost of loss in productivity

Month Target Actual Losses Cost of ECO PUV


Output Output Jeepney
(units in (units in (1.8 M)
pieces) pieces)

July 52 45 7 ₱12, 600, 00. 00

August 50 48 2 ₱3, 600, 000. 00

September 50 44 6 ₱10, 800, 000. 00

October 54 50 4 ₱7, 200, 000. 00

November 48 39 9 ₱16, 200, 000. 00

December 48 37 11 ₱19, 800, 000. 00

Total 302 263 39 ₱70, 200, 000

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A.) Given:

Losses = 39 units

Cost of ECO PUV Jeepney = ₱ 1, 800, 000. 00

Required:

Total cost of losses

Formula:

Losses units X cost per ECO PUV Jeepney

Solution:

39 units X ₱ 1, 800, 000. 00

Final Answer: = ₱ 70, 200, 000. 00

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Fig. 3.2 Structural Line Layout

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3.2 Objective Tree

Assigned trained
To improve Proper place
Mean personnel for
process flow for designation of
replacing argon
replenishing argon argon tank
tank tank

To reducethe
To minimize time travel in losses
production replacing Argon
of ECO tank.
PUV JEEPNEY in

Structural line.

End Minimize work


Improve travel
High Efficiency delay in replacing
time for workers
argon tank

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3.2.1 Means

3.2.1.1 To improve process flow for replenishing argon tank

It keeps the work to run smoothly in most situations. This help to create faster

production times and as a result increased workers service and satisfaction. This also

lead to create better ECO PUV JEEPNEY and reduce the costs of operation because

of the ability to prevent the wasted time.

3.2.1.2 Proper Place Designation of Argon Tank

Proper place designation of Argon tank can benefit the company and workers

by reducing the idle time by shortening the travel time of Argon tank going to the bay

which is in need of replenishment of Argon tank. If the warehouse is placed near the

structural line, the effort exerted by the worker can be lessen. The chance that the

worker will feel fatigue will be minimized. The energy saved by the worker can be

used in doing the job in the structural area.

3.2.1.3Assigned trained personnel for replacing argon tank

Having a strong and successful training strategy helps to develop the worker

skills and learn the basic steps in replacing argon tanks and continuously work

without having any problem. This helps reduce any weak links within the company

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who rely heavily on others to complete basic work tasks. Providing the necessary

training creates an overall knowledgeable for the workers.

3.2.2Ends

3.2.2.1High Efficiency

Having a high efficiency will be able to save time and money. It will make the

work easier and faster and the process will no longer be repeated.

3.2.2.2Improve travel time for workers

The travel time of Argon tank will be lessened; the worker will have more

time in the bay in finishing the product. In this case the idle time will be less reduced,

maximizing the working time leading to a higher chance in meeting the quota.

3.2.2.3 Minimize work delay in replacing argon tank

Being the person that will be in charge to monitor the production need scan to

minimize the work delay. It allow the workers to have a very detailed overview about

what other way to speed up the process and what has just happened in the structural

line in order to analyze each situation and undertake corrective actions for the

company’s improvement.

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CHAPTER 4

ALTERNATIVE COURSES OF ACTION

ACA 4.1 Improving process flow for replenishing argon tank

Due to inconvenience of replacing the argon tank that is mostly used in every

bay of the structural line. Replacing ever tanks prolonging the idle of work in

structural line. The researchers, plan to improve the way of replacing the argon tank.

Give them a briefing in replacing argon tank to minimize the additional time allotted

in replacing. So, that the structural line will be improved in terms of work delay.

Procedure:

1. Introduced the new process to the employees. Proper orientation is a must.

2. Strict implementation of the process.

3. Working guidelines in ever structural line area.

4. Noted the amount of time spent in the old process and compare it to the new

one.

5. Continuous implementation if the process is effective.

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Propose Flow Chart in Replacing Argon tank

START

1. Get the argon tank in the


argon tank cages.

2. Turn and close valve on


top of the empty argon tank.

3. Undo the nut of the argon


tank to disconnect the high
pressure hose.

4. Replaced the argon tank by


quickly opening and closing
the valve on the top to clear
the dust.

5. Connect the high pressure


hose to the replacement of
empty tank.

6. Inspected the argon tank if


there is a leakage.

End

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STRENGTH WEAKNESSES

 Process excellence  Mastery of process

 Good organization Structure  Inter cultural crashing

 Strong researcher team

OPPORTUNITIES THREATS

 High productivity  Near competitors

 Market being worth  Intensify competition on

major competitors

Table 4.1 SWOT ANALYSIS

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ACA 4.2 Proper place designation area of argon tanks in structural area.

To shorten or minimize the time spent taking Argon tanks from the

warehouse. The researchers decides to place an argon tank storage cage inside the

structural line, but be sure to put it in a way that does not interfere with work and is

away from possible accidents. Make sure it is secure because a large accident is likely

to occur when it falls.

Fig. 4.2

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Procedure:

1. Set a safe location for storage cage of argon tanks in structural line and that is

away from any other source of fire/ignition.

2. If the storage cage are now set, put the argon tank inside, make sure that it

does not have leakage.

3. To ensure that the argon tanks will not fall, secure it with the chain and lock it.

4. Put chain around the storage cage and lock it.

5. Insert the hose in the top of storage cage where it has a hole so that it can be

connected to the argon tanks valve.

6. Put aluminum foil around the hose for safety.

7. Put caution beside the storage cage

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Table 4.2 SWOT ANALYSIS

STRENGTH WEAKNESSES

 Maximizing the productivity  Additional cost

time.  Poor tooling and user

 Innovative structure. experience.

4
.
2

C
OPPORTUNITIES THREATS
o
s Production efficiency  Near competitors
t
-

B
e
n

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Table 4.3Cost- Benefit Analysis

SUPPLIERS COST ITEMS BENEFIT

-Lazada Materials Hose – 27 -To lessen the time

www.lazada.com Padlock – 3 travel of Argon tanks

-OLX Welding hose Chain – 3 from warehouse to

www.olx.com - ₱1,750.00 / 50 m structural line.

-Harware Padlock

-₱ 38.00

Chain

- ₱615.00

Steel

-₱54.00 / meter

Aluminum foil

– ₱1000.00/10sq.ft

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Fig. 4.3 Existing Layout of Placement of Argon Tank

Fig. 4.4 Propose Layout of Placement of Argon Tank

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Minimizing the production losses of ECO PUV Jeepney in the
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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

ACA 4.3Assign trained personnel for replacing argon tank

Due to no one has been assign in the warehouse to monitor the replacement of

argon tank, the structural line workers replace and get argon tanks when consumed.

As a result of additional and prolonged work, the researchers plan to assign trained

personnel in the warehouse, give them additional job to monitor the replacement of

argon tanks. So, that the structural line workers will lessen their wasted time and to

have continuous work.

Procedure:

1. The assigned personnel in the warehouse will move around the structural line

before the employees out at work.

2. Counted the empty argon tanks and replace it.

3. Returned to warehouse, place the argon tank on the argon tank storage.

4. Get a new argon tank.

5. Put it on the designated bay.

6. Placed the argon tank to the welding machine and make sure that it is well

placed so that the next day the workers will continuous working in production.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Monitoring Sheet

Sheet no,: Date:

Department: Bay no,:

Operators name: Time monitor:

Supervisor:

No, of argon tank in each bay:

No. Of empty argon tank:

No, of argon tanks to replaced:

----------------------------------------- -------------------------------------------

Operator: Monitored by:

Fig. 4.5

* This sheet will serve as approval to get new argon tanks.

Daily Monitoring Schedule of the Argon Tanks in Structural line

When: Mon - Sat, 4:00-4:30 (max. Of 45 minutes.)

Where: Each Bay in Structural Line

Who: Assigned Personnel of the Warehouse.

Actions:

1. Check Argon Tanks each day.

2. Count empty argon tanks that need to be replace.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


3. Use the monitoring sheet.

4. Send the sheet to the warehouse departmental.

Training Cost

Personnel Amount/Day Days Cost

Trainee 500 3 ₱1500

Table 4.5

To conduct training for the assigned personnel of the warehouse in monitoring

Argon tanks. The Hino Motors Philippines is needed a personnel in monitoring the

empty Argon tanks that is need to replace, by using monitoring sheet and use it as

approval to get a new one. To reduce the process in requesting argon tanks which

causes work delay.

Training Plan:

Who: Assigned personnel of the warehouse.

What: Training on how to do the proper monitoring of Argon tanks in each bay.

When: April 1, 2019 – April 3, 2019

Where: Hino Motors Philippines Inc., Training Room

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Activity Topic Duration

Orientation -Use of Argon Tank 1hr/1session


-Content of the
monitoring sheet.
-Proper use of monitoring
sheet.

Training -Trial monitoring of 1-2hrs (Max of


Argon tank by using 2hrs)/session
monitoring sheet.

Examination/Actual -Actual demo of 1hr/1session


Demo monitoring Argon tank
by using monitoring
sheet.

Certification -Giving the badge I.D 20minutes/1session

Deployment -Actual deployment of 30minutes


worker.

Table 4.5.2 Activity for training

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

Fig. 4.6 Badge

The trainee will received a badge I.D after he/she finished the required

training.

62
Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

STRENGTH WEAKNESSES

 Continuous production  Additional cost

 Superior quality products.  Mastery of trainee

OPPORTUNITIES THREATS

 High productivity  Near competitors

 Growing demand for  Intensify competition on

emerging major competitors

Table 4.6 SWOT ANALYSIS

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

COST BENEFIT

 To lessen the work of the structural

Additional work for the assigned line operators.

personnel in the warehouse.  To reduce the idle time of the

690/day structural line operators.

 Uninterrupted work of the

operators.

Table 4.7Cost Benefit Analysis

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

CHAPTER 5

Conclusion:

The study conducted by the researchers produce valuable outcome regarding

in the gathered data from the company. Based upon the findings of the study, the

researchers conclude with this standard work process in replacing argon tank,

appropriate workers, proper planning and production control will result of high

outcome and also provide knowledge for those malpractices that are might to happen

in the working area. All this be the ways to lessen and determine the different

technique in organizing the structural line.

Recommendation:

Based on the research conducted in the study, the following recommendation are

made:

First, set a new place designation of argon tanks. In this way it will not be

difficult for workers to return in the warehouse as it is far from the structural line

aside from this it does not interfere the workers job and promotes continuous

progress. All argon tanks will be merge in one place separate from the welding

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION


machine to make easier for the workers to move the welding machine elsewhere in the

area. This recommendation consider as one of the suitable process in the production

wherein it is basic source to produce ECO PUV in the structural line.

Lastly, assign capable person to monitor the replacement process of argon

tank. It is a great factor to consider the fast transaction in requesting to replenish

argon tanks in the storage cage. To suggest a standard work flow for requesting argon

tanks replacement. Through this research intend to have a better understanding in

replacement argon tanks while removing the unnecessary things.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

References:

 https://blog.capterra.com/6-super-helpful-tips-to-avoid-common-construction-

delays

 https://www.brighthubpm.com/monitoring-projects/107392-ten-ways-to-

better-manage-project-delays/

 https://www.brighthubpm.com/risk-management/39861-how-to-communicate-

project-delays-to-your-client-when-behind-schedule/

 https://www.quora.com/What-are-causes-of-delay-in-production-Describe-the-

corrective-actions-to-avoid-the-delays

 http://www.westairgases.com/blog/rules-of-thumb-for-argon-tank-supply-

planning

 https://www.google.com/search?client=ms-android-samsung-gj-rev1&ei=-

DqUXJj7PNj4hwP3l7TYBA&q=work+delay+because+of+materials&oq=wor

k+delay+because+of+materials&gs_l=mobile-gws-wiz-

serp.3...2845.19739..20476...15.0..2.1134.11253.0j15j24j2j1j1j0j1......0....1......

.8..35i39j0i131j0j0i67j46i131j0i10j0i20i263j0i22i30j33i22i29i30j33i160j33i2

1j30i10j33i22i10i29i30.33eLBp_JaB0#sbfbu=1

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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

ATTACHMENTS

PRODUCTION ACTUAL OUTPUT (UNIT)

July August September October November December

1 1 1 1 1 1 1
2 2 2 2 2 2
3 1 2 2 2 2 1
4 2 2 1 2 1 1
5 2 1 2 2 2 1
6 2 2 2 1 2
7 2 2 1 2 2 2
8 2 2 2 2 1 2
9 2 2 2 2 2 2
10 1 2 1 2 2 2
11 2 2 2 2 1 2
12 2 2 2 2 2
13 2 2 2 2 2 2
14 1 2 1 2 1 2
15 2 2 2 2 2 2
16 2 2 2 2 2 2
17 1 2 2 2 1 2
18 2 2 1 2 2 2
19 2 2 2 2 2 2
20 1 2 2 2 1
21 2 2 2 2 2 2
22 2 2 2 2 2 1
23 2 2 2 2 2 1
24 1 2 2 2 1 1
25 2 2 2 2 2
26 2 2
27 1
45 48 44 50 39 37
TOTAL
UNITS

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Minimizing the production losses of ECO PUV Jeepney in the
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SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

EXCESS TIME IN TRAVELING OF ARGON TANK USING HAND TRUCK

July August September October November December

1 3 2 5 3 4 4
2 4 2 4 3 3
3 5 3 3 3 3 3
4 2 3 3 4 2 3
5 3 3 4 3 3 4
6 3 4 5 2 4 3
7 3 3 2 3 3 3
8 1 2 2 2 5 4
9 2 4 4 4 4 3
10 3 2 3 3 3 4
11 2 3 3 3 3 3
12 3 4 3 3 2
13 3 3 2 4 3 3
14 4 3 3 3 3 3
15 2 5 1 3 3 3
16 4 2 2 3 3 3
17 3 4 3 4 2 3
18 3 3 3 3 4 3
19 2 3 5 2 5 3
20 4 4 2 3 2 4
21 2 2 2 4 3 2
22 3 3 5 3 3 5
23 3 3 4 4 3 3
24 3 2 2 3 3 4
25 3 2 3 3
26 3 3
27 4
TOTAL 88 89 85 86 93 78
minutes minutes minutes minutes minutes minutes minutes
TOTAL 1.47 1.48 1.42 1.43 1.55 1.3
hours hrs. hrs. hrs. hrs. hrs. hrs.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

WAITING TIME FOR APPROVAL REQUEST (minutes)

July August September October November December

1 5 min 4 min 8 min 4 min 5 min 7 min


2 5 min 4 min 7 min 5 min 3 min
3 4 min 8 min 4 min 7 min 4 min 5 min
4 7 min 7 min 8 min 5 min 8 min 4 min
5 8 min 5 min 6 min 6 min 6 min 6 min
6 2 min 5 min 4 min 7 min 8 min
7 6 min 6 min 3 min 5 min 6 min 7 min
8 4 min 4 min 4 min 7 min 3 min 3 min
9 8 min 8 min 6 min 5 min 3 min 4 min
10 7 min 6 min 3 min 4 min 6 min 5 min
11 6 min 3 min 5 min 3 min 7 min 6 min
12 4 min 4 min 4 min 6 min 8 min
13 6 min 5 min 7 min 7 min 4 min 6 min
14 8 min 3 min 5 min 5 min 7 min 5 min
15 3 min 8 min 8 min 8 min 6 min 7 min
16 4 min 3 min 8 min 7 min 3 min 5 min
17 5 min 5 min 3 min 5 min 3 min 8 min
18 8 min 4 min 3 min 6 min 4 min 4 min
19 3 min 5 min 4 min 7 min 5 min 6 min
20 4 min 5 min 6 min 4 min 4 min 7 min
21 8 min 4 min 8 min 5 min 6 min 4 min
22 3 min 3 min 7 min 4 min 7 min 5 min
23 4 min 6 min 5 min 7 min 8 min 8 min
24 8 min 3 min 8 min 3 min 4 min 5 min
25 3 min 5 min 4 min 4 min
26 3 min 7 min
27 3 min
TOTAL 137 123 138 139 172 125
minutes minutes minutes minutes minutes minutes minutes
TOTAL 2.28 2.05 2.3 2.32 2.87 2.08
in hours hrs. hrs. hrs. hrs. hrs. hrs.

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Minimizing the production losses of ECO PUV Jeepney in the
Structural line of Hino Motors Philippines Inc.

SAN PEDRO COLLEGE OF BUSINESS ADMINISTRATION

October 8, 2018 (Monday)

9:00am – 10:30 am Machine breakdown in Bending and Shearing

1.5 hours downtime from raw materials

November 2, 2018 (Friday)

4:00 – 6:00pm under time

December 3, 2018 (Tuesday)

8:10am – 10:40am Waiting time in restocking empty tank from the supplier

2.5 hours downtime

December 14, 2018 (Friday)

2:30pm – 5:00pm Waiting time in restocking empty tank from warehouse

2.5 hours downtime

December 25, 2018 (Tuesday)

4:00pm – 6:00pm under time

Engr. Ezekiel Colona

71

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