Case analysis toms manufacturing corporation

TOMS MANUFACTURING CORPORATION Manufacturing Plant Visit

Case Analysis

In partial fulfillment of the requirement for

Production and Operations Management

Submitted to:

DR. VICTOR T. CRISOSTOMO

Submitted by:

Leah P. Digo Elizabeth S. Francisco

Michael Q. Loyola Rhea F. Perea

Catherine M. Sagcal Wylyn S. Salva

Mary Grace A. Saylon Eugenia F. Serrano

Mark I. Varem

PHILIPPINE CHRISTIAN UNIVERSITY – DASMARINAS

Dasmariñas Cavite 4115

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TABLE OF CONTENTS PART I. About TOMS MANUFACTURING CORPORATION Company Profile …………………………………………………………………………………………… 2 Company History ………………………………………………………………………………………….. 3 Company Location & Structure …………………………………………………………………….. 4

Corporate Policy, Vision and Mission & Customers .................................................................................................... 5 Organization Chart ……………………………………………………………………………………….. 6 Sales per Segment ………………………………………………………………………………………… 7 Sales and Projection …………………………………………………………………………………….. 8

PART II. MACHINES, PROCESS AND PRODUCT Company Machines ………………………………………………………………………………………..11-12 Operational Flow …………………………………………………………………………………………… 13-14 Company Product …………………………………………………………………………………………. 14-15 Quality Assurance …………………………………………………………………………………………. 16 Waste Management ……………………………………………………………………………………… 16

Maintenance Management ………………………………………………………………………….. 16 PART III. PLANT VISIT CASE STUDY Identification and Analysis of the Problem …………………………………………………… 18 Alternative Courses of Action ………………………………………………………………………….18-19 Plan of Action and Cost Analysis ……………………………………………………………………..20 Appendix …………………………………………………………………………………………………………21



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PART 1

COMPANY PROFILE



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Registered Name : TOMS MANUFACTURING CORPORATION

Date Established : October 20, 1997 Address : B1 L2 Daiichi Industrial Park Maguyam Silang, Cavite Capital : PHP 100,000.000.00 Stockholder : 100% owned by NANBU JAPAN Area : lot area: 9,242m2 floor area: 5,974,3m2 Sales : US$ 12,440k (FY12 performance) Employees : 318 personnel (JPN: 4) as of June, 2013 Male; 138, Female; 180 Regular; 125, Contractual; 120, Agency; 69 Product Line : Mold Fabrication, injection molding, Painting, Printing Assembly



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Toms Manufacturing Corporation, a commitment of excellence in Plastics

Technology!

TOMS, a member of Nanbu Plastics Inc. is one of the growing plastic precision

company in the Philippines that aims to be the largest Plastic Manufacturing

Company and no.1 in the country. Our nature of business varies extensively in the

manufacturing, painting/printing and assembly of precision plastic parts for

automotive, electronics, medical, housing and other applications beyond the reach

of your imagination.

In middle of August 1997, TOMS decided to have second overseas plant in

the Philippines. In March 2003, in order to TOMS to remain competitive, the

company applied for its ISO Certification. And so, the company has been

ISO9001:2000 certified.

In April 2005, TOMS became a member of NANBU Group of companies

transferred the 100% capital stock. The number of injection machines 42 units with

some units of painting and printing machines and with a total of 150 manpower.

In November 2006, TOMS applied for its ISO environmental certification and

became ISO 14000; 2003 certified.

In February 2008, TOMS became ISO/TS16949 certified. TOMS decide to

expand its business through Mold Fabrication.



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LOCATION:



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TOMS has affiliated overseas companies including in Japan; Yoshida

Factory, Kyushu Nanbu Plastic Co. LTD, Oigawa Factory, Hamamatsu Factory,

Susono Factory, and also in China; Shanghai Nanbu Plastics, Dong Guan Nanbu

Plastics, Suzhou Nanbu Plastics, Guangzhou Nanbu Plastics. In Philippines; Nanbu

Philippines Inc., and in Indonesia; PT Nanbu Plastic, PT Standard.

TOMS COMPANY POLICY under NANBU Policy; we put all our hearts into

our principle ‘’CUSTOMER FIRST’’ and the ultimate goal of our company is our

customer will get satisfaction and emotion from us.

All employees serves with a pride of their work and the company strives to

train the person who will be able to contribute the good for the society through their

achievement.

TOMS COMPANY VISION is to become the No. 1 plastic injection company

in the Philippines.

TOMS COMPANY MISSION is to provide plastic parts that delight our

customers at a reasonable price, serve with pride and contribute to the good of the

society.

TOMS Main Customers is YAZAKI, FURUKAWA Electric Group, TOKAI

RIKA, YAMAHA, EPSON, Canon, TERUMO, USHIO, TECHTUIT and Panasonic.



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TOMS ORGANIZATIONAL CHART



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Figure 1

TOMS sales per segment shown in Figure 1. TOMS has the largest plastic

manufacturing in the Philippines. Their products are parts of computer, electronics,

automotive and medical use. They provide printing and painting also of these parts.



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On the graph below, TOMS recognized their sales from 2010 to 2012. In

2010 their actual sales was 10.25$ but in 2011 it decrease and it became 9.84$ and

by 2012, 12.44$ is the actual sales. TOMS have their projection of sales for the next

three years. Their target sales should be at least 50% increase compare to 2010 to

2012.

Figure 2



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PART 2

Machines, Operational Flow

and Product



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Figure 3

TOMS Manufacturing Corporation has 70 injection machines, these are their

main equipment. They use this to inject plastic to become a product. These

machines have their differentiation. In the table shown above, for example; In 36

injection machines, 1 machine is equal to 15 tons and the other 1 machine is equal

to 60 ton. In short these two machines have different unit of weight. On the other

hand, in 34 machines, 110 tons is equal to 2 machines, in 155 tons in equal to 2

machines also and 300 tons is equal to 2 machines. Therefore, in every machine

have different unit of weight.



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Figure 4

TOMS Manufacturing Corporation uses machines for molding process, painting

and printing to become a product.



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Figure 5 Operational Flow



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Operation starts with advanced quality planning wherein the parts which will

be used in making the product are being critically examined and delivered. The raw

materials are stored in the storage area wherein FIFO-LIFO is being practiced. After

the completion of the required raw materials, the next procedure will be the product

testing or the first trial sample, in this stage; sample products are undergoing

repetitive development and improvement to achieve its optimal form. After having

the desired form of the product, machine feeding or machine will be loaded by the

required raw materials for mass production. The molds will be set in accordance to

the kind of product that it will produce. When in process of the raw materials and

when the raw materials are being converted into the finish products, the finished

goods will go through the painting section and will be checked by the quality control

personnel for the packing and delivery. In TOMS Company, the production, Q/A

and Q/C are trained. They applied poka-yoke for correcting and prevention of

defects of product.

TOMS PRODUCTS

ELECTRONIC PRODUCTS



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ASSEMBLED PARTS

AUTOMOTIVE PARTS

HOUSING APPLICATION



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Quality Assurance

After processing the product, there are some teams that will inspect

the output before it goes to QC. Quality assurance is in charge for

checking/inspecting of the finish product. They make sure that the finish product is

based on their customer requirements.

The quality control team is tasked to have 100% final/assembly

inspection to the finished goods made by the production. However, some of TOMS

customers demand to check one by one of their request orders while other

customers are suit for per box checking.

Waste Management

With regards to waste they have very little waste because all of their

raw materials are plastics. TOMS have their recycle area where in some materials

that have been damaged, rejected and other materials will be use again. They have

proper segregation which materials will be recycled and which materials will be

collected. They make sure the people who will collect their waste have

environmental permit. TOMS have almost ZERO waste.

Maintenance Management

TOMS Manufacturing Corporation has a team in regards with their

machines/equipments. They have 24 hours every day production process that is

why on a regular basis they monitor/checked the machines/equipment through

Preventive Maintenance.



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PART 3

Case Analysis



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Identification of Problem

Products are frequently returned by the clients, because of a defect/quality

problem.

Analysis of the Problem

The quality of the product is very much important in a Manufacturing

Company. The customers will convince if the products have meet the customers

standards, needs and satisfaction therefore if the quality of the product is zero

defect the customers will tend to demand/order. The more demand the more sales

of the Company.

Alternative Courses of Action

1. There should be proper training for the Production, Quality Assurance

and Quality Control Team.

Advantages:

1. Zero defects of the products are possible to happen.

2. Production, Q/A and Q/C will be more productive and careful.

Disadvantages

1. Training program will be costly.



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2. Establish accurate guiding principles in Production, Q/A & Q/C

process.

Advantages:

1. There are machines that help production, Q/A & Q/C in producing product.

Proper guidelines of Poka-yoke should be implemented & follow.

2. There will be no product return.

Disadvantages:

1. Staffs that have difficulties in understanding new procedures will have long

period of time to comprehend.



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PLAN OF ACTION AND COST ANALYSIS

STEPS NEEDED

COST ANALYSIS

BENEFITS

Rendered time/days

Motivation Execution Interference of Production

Process

Planning of accurate guiding

principles

P3000 (for employee

compensation)

2 weeks to 3

weeks YES 80%

Review of Plans and Decision Making

P450 (for report and

other materials

1 week YES 60%

Training Program of Personnel

P15,000.00 1 week YES 80% 70%

Implementation 1 week YES 80% 70%

Above table is plan of action and cost analysis that both company and

employee will benefit. If there is an accurate guiding principles the employees

particularly will have produce a good quality and zero defect of a product that will

satisfy the TOMS customers.

Management and responsible personnel in Production area will plan for

about 2 weeks to 1 month. The next thing to do is review of what they have planned

and decision making. Then, the training program of personnel, skilled people that is

knowledgeable regarding of Q/A and Q/C process will train the personnel. However,

those personnel that have difficulty to comprehend in this training program will have

difficulty also to execute his job. Implementation is very important because what

personnel learned from training should apply in actual job. At first they will find it

hard for the new proper implementation but soon after they will manage, it will

motivate them because the customers will not return defect products.



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APPENDIX

Photo taken in front of TOMS Company with Ms. Ria Rose Soriano and MBA

students.

Business

Case analysis toms manufacturing corporation