DEALING WITH THE PRODUCTION MANAGEMENT CONCERNS OF CANARY ENTERPRISES INC.

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An Undergraduate ThesisPresented to the Faculty of the College of AccountancyPolytechnic University of the PhilippinesSta. Mesa, Manila

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In Partial Fulfillment of the Requirements for the DegreeBachelor of Science in Accountancy

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ByABONADO, Radji Rashed C.FALOGME, Joseph T.NICOLAS, Arjeon Paul D.BSA 4-1

September 2011C E R T I F I C A T I O N

This thesis entitled, DEALING WITH THE PRODUCTION MANAGEMENT CONCERNS OF CANARY ENTERPRISES INC. prepared by Radji Rashed C. Abonado, Joseph T. Falogme, and Arjeon Paul D. Nicolas in partial fulfillment of the requirements for ACCO 4013 Thesis has been examined and recommended for acceptance and approval for ORAL EXAMINATION.

GLORIA T. BAYSA, Ed. D., CPA Adviser

A P P R O V A L S H E E T

Approved by the PANEL OF EXAMINERS ON ORAL EXAMINATION with a grade of ____.

VICTORIA B. BADURIA, DBA, CPA ELLINOR C. FUA-GERONIMO, DEM, CPA Panelist Panelist

Accepted and approved in partial fulfillment of the requirements for the Degree of BACHELOR OF SCIENCE IN ACCOUNTANCY.

MA. CECILIA S. MERCADO, CPA Dean, College of Accountancy

September 2011ACKNOWLEDGMENT

This study would not be possible without the people who never hesitated to extend their extreme support in sharing their knowledge and time to us. We bestow our heartfelt appreciation and deepest gratitude to the following people who supported us in accomplishing this work:To Dr. Gloria T. Baysa, our thesis adviser, for her valued suggestions and encouraging words who never departed our hearts towards the end of the study. And also, for her precious time and creative insights that serves as one of our essential guide to continue and finish the study;To Mr. Alan Jimenez, the Production Manager of Canary Enterprises Inc. for accommodating us, giving us wise suggestions for the improvement of the research and assisting us through the survey process;To the production management people of Canary Enterprises Inc., for their warm accommodation as we conduct survey in their vicinity and who spent their time in answering our questionnaires;To our families, who provided us with moral and financial support;To our dearest friends and classmates, for being so supportive since the start of this research by offering us a supportive hand and inspiring ideas; andTo Almighty God whose name should always be glorified, for the wisdom and guidance that He gave us as we undertake the hardships in completing this study.

The Researchers

DEDICATION

This piece of work is wholeheartedly dedicated to God Almighty,

our families and friends.

ABSTRACTTitle:Dealing with the Production Management Concerns ofCanary Enterprises Inc. Researchers: ABONADO, Radji Rashed C.FALOGME, Joseph T.NICOLAS, Arjeon Paul D.

Degree :Bachelor of Science in AccountancyYear:2011Institution:Polytechnic University of the PhilippinesAdviser:Dr. Gloria T. Baysa

This research aimed to deal with the production management concerns of Canary Enterprises Incorporated. Moreover, this was intended to facilitate a better understanding of the profile of production management people, the company perspective, the problems encountered and the proposed solutions, the socio-economic and environmental contributions, and any significant difference among the variables factored-in.This study made use of descriptive research method to depict the nature of a condition, as it existed at the time of the study. Fifty-five (55) production management personnel were involved as respondents. The researchers primarily utilized survey questionnaire to gather the needed information. Also, unstructured interviews were conducted on Canary Enterprises Incorporated for additional sources of information that can be necessary to the study.Appropriate statistical tools such as frequency and percentage, ranking, weighted mean, Likert Scale and ANOVA Single Factor, were applied in treating the data of the study. The data were ordered, tallied and tabulated to facilitate the presentation and interpretation.Statement of the ProblemThis research entitled Dealing with the Production Management Concerns of Canary Enterprises Inc. aimed to highlight the production management concerns of Canary Enterprises Inc. Moreover, this study sought to find out the profile of production management people, company perspective, production management concerns, problems encountered and proposed solutions and social and environmental contributions and any significant difference among variables.Specifically, this study attempted to answer the following:1.0 What is the profile of production management people of Canary Enterprises Inc. in terms of the following:1.1 Age;1.2 Gender;1.3 Civil Status;1.4 Highest Educational Degree;1.5 Position in the Company; and1.6 Years of Service in the Company?2.0 What is the company perspective in terms of the following:2.1 Years of Existence;2.2 Form of Organization;2.3 Kind of Business;2.4 Major Customers;2.5 Most Saleable Garment Product;2.6 Number of Personnel; and2.7 Distribution of Products?3.0 What are the production management concerns in terms of the following:3.1 Scheduling of the Production of Garment Products;3.2 Equipment used in the Production; 3.3 Batch Processing and Quantity Produced;3.4 Monitoring and Controlling of the Production;3.5 Labor Workforce;3.6 Production Outputs; and3.7 Costs of Production?4.0 What are the problems encountered and proposed solutions thereto?5.0 What are the socio-economic and environmental contributions of the company?6.0 Is there a significant difference between the profile of production management people and the production management concerns?

Summary of FindingsIn light of the data analyzed, the summary of findings is stated:1. Profile of Production Management People Many of the respondents age was above 40 years old with a frequency of 19 or 34.55%, who are composed of 50.91% male or 28 out of 55 respondents. Also, most of the respondents were married which comprise 69.09% of the total respondents, having other educational attainment which was 27 or 49.09% of the total respondents and coming from other position in the company comprised of 27 or 49.09% of the population with 1-5 years of service in the company with a frequency of 40 or 72.73%.2. Company PerspectiveFifty-five or 100%of the respondents agreed that the company is in existence for 21- 30 years. 100% of the respondents agreed that the company is a family-owned form of corporation and it is engage manufacturing garment products for kids. Shopping malls are their major customers, and that their most saleable product is t-shirts, the way they distributes their products is through delivery on consignment basis, and the number of personnel that they have is ranging from 100-200 people, as agreed by 55 or 100 % of the respondents.3. Production Management Concerns The respondents agreed on production management concerns as to equipment used in the production (4.48), monitoring and controlling the production (4.49), and costs of production (4.50). However, they strongly agreed as to scheduling the production of garment products (4.51), batch processing and quantity produced (4.56), labor workforce (4.55), and production outputs (4.54).4. Problems Encountered and Proposed SolutionsThe respondents disagreed on problems encountered (2.37) and agreed on proposed solutions (4.49).5. Socio-economic and Environmental Contributions The respondents strongly agreed on socio-economic contributions (4.55) and environmental contributions (4.55).6. Difference Between the Profile of Production Management People and Production Management ConcernsThe study showed that there was no significant difference between the profile of production management people and production management concerns when respondents were grouped according to age in terms of equipment used in the production (2.16), monitoring and controlling the production (3.24), labor workforce (2.78), and costs of production (2.17). There was a significant difference between the profile of production management people and production management concerns when respondents were grouped according to age in terms of scheduling the production of garment products (3.84), batch processing and quantity produced (4.03), and production outputs (10.74). Thus, the null hypothesis was accepted.The study showed that there was no significant difference between the profile of production management people and production management concerns when respondents were grouped according to gender in terms of equipment used in the production (4.85), batch processing and quantity produced (0.68), monitoring and controlling the production (0.01), labor workforce (0.07), production outputs (0.02), and costs of production (0.02). There was a significant difference between the profile of production management people and production management concerns when respondents were grouped according to gender in terms of scheduling the production of garment products (9.97). Thus, the null hypothesis was accepted.The study showed that there was no significant difference between the profile of production management people and production management concerns when respondents were grouped according to civil status in terms of scheduling the production of garment products (0.04), equipment used in the production (0.48), batch processing and quantity produced (0.56), monitoring and controlling the production (0.41), labor workforce (0.87), and costs of production (0.63). There was a significant difference between the profile of production management people and production management concerns when respondents were grouped according to civil status in terms of production outputs (6.39). Thus, the null hypothesis was accepted.The study showed that there was no significant difference between the profile of production management people and production management concerns when respondents were grouped according to highest educational degree in terms of equipment used in the production (1.14), and production outputs (3.15). There was a significant difference between the profile of production management people and production management concerns when respondents were grouped according to highest educational degree in terms of scheduling the production of garment products (7.20), batch processing and quantity produced (10.42), monitoring and controlling (5.38), labor workforce (14.42), and costs of production (9.96). Thus, the null hypothesis was rejected.The study showed that there was no significant difference between the profile of production management people and production management concerns when respondents were grouped according to position in the company in terms of scheduling the production of garment products (0.51), equipment used in the production (2.52), batch processing and quantity produced (0.89), monitoring and controlling the production (0.40), labor workforce (0.58), and production outputs (1.43). There was a significant difference between the profile of production management people and production management concerns when respondents were grouped according to position in the company in terms of costs of production (2.25). Thus, the null hypothesis was accepted.The study showed that there was no significant difference between the profile of production management people and production management concerns when respondents were grouped according to years of service in the company in terms of scheduling the production of garment products (1.00), equipment used in the production (1.39), labor workforce (2.57), and costs of production (2.89). There was a significant difference between the profile of production management people and production management concerns when respondents were grouped according to years of service in the company in terms of batch processing and quantity produced (8.40), monitoring and controlling (7.28), and production outputs (37.81). Thus, the null hypothesis was accepted.

ConclusionsAfter performing all the necessary steps and procedures in conducting the study, the researchers come up with the following conclusions:1. Profile of Production Management PeopleMany of the respondents age are above 40 years old and male. Also, most of the respondents were married, having other educational attainment and coming from other position in the company with 1-5 years of service in the company.2. Company PerspectiveThe company is in existence for 21- 30 years, it is a family-owned form of corporation and it is engage manufacturing garment products for kids. Shopping malls are their major customers, and that their most saleable product is t-shirts, the way they distributes their products is through delivery on consignment basis, and the number of personnel that they have is ranging from 100-200 people.3. Production Management ConcernsIn terms of production management concerns of Canary Enterprises Inc., the respondents strongly agree regarding to scheduling the production of garment products, batch processing and quantity produced, labor workforce, and production outputs. However, the respondents agree with regards to the equipment used in the production, monitoring and controlling the production, and costs of production.4. Problems Encountered and Proposed Solutions In terms of problems encountered and proposed solutions by the Canary Enterprises Inc., the respondents disagree regarding the problems encountered and agree with regards to the proposed solutions.5. Socio-economic and Environmental ContributionsIn terms of socio-economic and environmental contributions by Canary Enterprises Inc., the respondents strongly agree to almost all of the statements under socio-economic contributions and strongly agree also to all the statements under environmental contributions.

6. Difference Between the Profile of Production Management People and Production Management ConcernsThere is no significant difference between the profile of production management people and production management concerns when respondents are grouped according to age, gender, civil status, position in the company and years of service in the company. However, there exists a significant difference between the profile of production management people and production management concerns when respondents are grouped according to highest educational degree. It only shows that the production management concerns made by our respondents are directly influenced by their educational attainment.

RecommendationsBased on the foregoing conclusions, the researchers had come up with the following recommendations to the production management people of Canary Enterprises Incorporated:Company should continue to give proper training to machine operators for the proper use of machines and the proper maintenance of it. They should also continue to give precise instruction manuals from higher management level all the way to lower managerial position.Canary Enterprises Inc. production management and the people in the production arena should continue to focus on using clothing materials effectively, efficiently and with economy. They should also continue in producing good units relative to total units in maintaining a total quality management. Properly explaining well the policies and instructions to its workers should be done. They should advise workers to be efficient and effective in doing job so that wasted materials will be lessened or be ultimately eliminated. And also, company should increase the numbers of quality controllers to ensure the quality of products in every production phases.For future researchers, follow-up studies related to areas covered could be conducted to verify, amplify or negate the findings of the study.

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