Track: Operations Research

Abstract

According to a study on the Philippine Manufacturing Activities by the Board of Investments (BOI) in 2017, the Philippines is regarded as Asia’s new manufacturing powerhouse; its top 1,000 corporations include 322 manufacturing firms and post gross revenues totaling Php 3.2 trillion. The manufacturing industry is a significant player in the economic sectors, generating both wealth and employment. However, many processes experience significant delays due to machine downtimes and erratic work schedules, resulting in low machine efficiency and product throughput. Through careful consideration, this research study focuses on a 3rd party logistics company specifically, the B-Mirk Enterprises. B-Mirk Enterprises is one of the premier providers of manufacturing, warehousing, logistics, and manpower services in the Philippines. The research study aims to evaluate the company’s performance through the Overall Equipment Effectiveness (OEE) criteria and identify parameters that influence the outcomes of the company’s production processes. The research study focuses on the company’s newly implemented services within the labeling department which are also identified as the lowest in terms of its efficiency. A mathematical model is generated through the use of the Linear Programming technique, which is an analytical method of problem-solving and decision-making that is proven to be useful in the management of organizations. The overall study evaluated the company’s overall production performance as a support in developing an LP algorithm which made use of LINGO Optimizing Software and Excel Solver and was able to maximize machine efficiency and uptime for 7 hours or 2.3 hours per shift for B-Mirk’s Labeling Department.