Chapter 1

Introduction

CTSI Logistics Philippines, an International freight

forwarding company service in the Philippines. It is one of the

biggest transporting Companies with a good reputation & has

established great relationships with 147 worldwide associates,

officials & organizations across the world.  The company owned a

three story warehouse and office facilities measuring 180,000 sq.

ft and 70,000 sq. ft open area allowing easy ingress/egress of

trucks and container vans and safe loading/unloading of cargo

strategically located at CTSI Head Office, Cargo Center 1 & 2,

Km. 14, West Service Road, Merville Pranaque City, Philippines.

CTSI Logistics also owned sub major Warehouse strategically

located in Clark Subic, Cebu, Cagayan De Oro, and Davao

CTSI Logistics was established in 1989, and has been honed

and tested through 22 years of having served world class US

apparel brands including Polo Ralph Lauren, Liz Claiborne,

Limited, Nautica, and Nike. CTSI Logistics started as a fledging

freight forwarding that quickly rose above the rest by delivering

1

most comprehensive, innovative and personalized transport service

headed by the CEO Jerry L. Tan, and in the Philippine Logistics

Specialist for Operation and Distribution Ann Stephanie T.

Tapales. The company also expanded their capabilities to include

other products like electronics, aircraft parts, perishables,

pharmaceuticals, medical equipment and dangerous goods.

CTSI Logistics strong partnership with major airlines like

China Airlines, Korean Air, Philippine Airlines, Continental

Airlines, and Saudia among others and have been honored by Korean

Air and China Airlines as one of the Top Business partners based

on cargo tonnage uplifted. CTSI Logistics also develop relations

with major international ocean carriers such as MOL (Mitsui

O.S.K. Line), OOCL, Hyundai.

CTSI Logistics offers a comprehensive range of services to

facilitate freight deliveries that are on time & are cost

effective. Delivering Import and Export cargo by land, sea or

air, Door to Door Services, Custom Clearance, CTSI Logistics

committed itself early on to provide  unmatched service in the

local & international transport industry; focusing on strict 

quality control to provide total customer satisfaction.

2

Background of the Study

CTSI Logistics offers a wide variety of services to suit the

client’s requirements. It vision is to provide and recognize

quality comprehensive global logistics services that responds in

order to continued growth, prosperity and long term stability to

our client’s increasingly sophisticated logistical needs.

In order to deliver their mission in providing quality

service, they must be able to do so in a quick and efficient

manner. However, given the current problems that CTSI is facing,

it is unable to do so. Queuing Delay in Poor Product Handling and

Facilities Allocation results in long holding time and high lead

inventory and In-transit cost.

In Supply chain logistics, it starts in the International

receiving of the package box from the International freight

forwarding company. All the collected Boxes must past the

standard size of 24″ x 24″ x 35”. Customer must have proper

declaration of the stuff inside the box for Custom Reason. After

passing the Custom clearance, Barcode encoding is done in every

boxes and declaration in the cargo manifest, before it is store

in the cargo containers The Cargo cut-off every Thursday noon and

depart once a week. As technology moves, Cargo Containers are now

3

equipped with GPS tracking systems until it bound to our

Philippine Port in North Harbor or Subic Freeport. In the

seaport, release clearance (Purchase Order, Waybill Information,

and ASN validation) must be acquired before the chassy is

transferred and loaded in the waiting area. The problem starts

in the cargo waiting area in the warehouse. One chassy contains

three hundred twelve (312) boxes stack in (27L x 4W x 3H). Poor

material handling of cargo due to long unloading time and check

in time due to issuing of Universal Product Code (UPC). The

issuing of the UPC using a portable hand held barcode with

printer. Jamming of the printed sticker from the hand held

machine and poor handling of the stacker of the printed UPC

leading to damage because of peeling of sticker from the base

paper, scattering of ink in the printed UPC. This lead to high

inventory cost and in transit cost of the company. Another

factor that affects the queuing is the mismanagement of the

warehouse due to poor stocking leading to misallocation and

allocation of storage of the product. This keeps the product in

long holding time and additional to facilities cost and slow pace

operation of the company.

4

This study shall focus on formulating mathematical solutions

using operation research II technique in order to minimize the

queuing in the supply chain output. This shall gather all the

necessary data to be able to come up with the best solution in

maximizing the company profit.

Problem Statement

CTSI Logistics Philippines is experiencing 13.49 % Delay in

operation of warehouse 1 amounting to PHP 125,385.36

Objectives of the study

To eliminate the 13.49% delay in the operation of warehouse

1 amounting to PHP 125,385.36

Specific Objective:

To reduce the delay caused by cumulative effect of long

queue

To improve the current queuing system used in the agency

5

To improve the supply chain and maximize the operation cost

of the company

Scope and Limitations

The scope of the study is limited to CTSI Logistics

Philippines Warehouse Facility 1 at the working area and its

workers. The actual observation will focus in the working area,

from the queuing of the packages from inbound to warehouse of

Docking Station 1. There will be a series of actual observations

and data gathering. It is limited to a maximum of 8 hours and can

be extended upon the needs and requests of the observers. The

observation and data analysis is based on the time study and data

forecasted conducted and accompanied by the observer.

Methodology

The following methods were used in gathering data and

information to analyze and interpret the problem which the store

encounters.

6

Interview with the Marketing and Supply Chain Logistics

Specialist for Operation and the Operation personnel

With the help of the Marketing and Supply Chain

Logistics Specialist for Operation Ms. Ann Stephanie T.

Tapales and the operations personnel, the observer was

provided with data (logbook profile, manifest history,

summary reports, and tracking records etc.) needed to

clearly understand the background of the problem situation.

Some questions that were asked:

How many trucks and machines do you have?

Are the trucks experiencing breakdowns? How frequent?

What is the actual capacity of the company warehouse?

Internet and Literature Research

A Research was utilized to provide the observer with

necessary information to clearly understand the existing

problem situation of the company. Internet Researches is

useful for the terminologies of the unfamiliar words,

Reading books regarding time and motion study helps to

7

understand the problem and to learn the different techniques

in solution to the said problem.

Sample thesis

Sample thesis and study regarding logistics

improvement was utilized as a reference on how the study

will make use of the information necessary for the

completion of the project.

Actual observation

The actual observation in the CTSI Logistics

Philippines will suggest an alternative course of action for

the problems detected in the operation. It is an overlook

for computing values.

1. Forecasting. Eight (8) hours of observation

in Operation Time.

2. Observation of occurrence of the long

process in Storing, holding and in transit

time.

Significance of the Study

8

To the Company, the study will continually help to improve

the Company Supply Chain Management and to be able to have an

easy process in logistics operation.

To the Industrial engineering students, the study will serve

as a guide and background concentrating on Operations Research II

and Supply Chain Management that can be used for future reference

and studies.

To the Workers, the study will help the workers to make

their job easier and more productive.

To the Readers, the study will help the readers most

especially those who are encountering the same problem in the

freight services how to resolve the problem.

To the Researchers, the study will provide a venture for the

researchers to apply what they have learned in Operation

Research, Engineering Management and Motion and Time Study. The

observations and warehouse visit will be an experience and an

introduction for the real life industry practice.

Definition of terms

ASN – Automatic Serial Number, a unique control Number

printed in the Box of the Package

9

Chassy – a 40ft, 44,000 lbs rectangular steel box used for

transporting goods from one place to another.

Customer –is usually used to refer to a current and

potential client of an individual organization.

Forecasting is the process of making statements about events

whose actual outcomes have not yet been observed.

Inquiry –is any process that has the aim of augmenting

knowledge, resolving doubt, or solving a problem.

Logistics is the management of the flow of goods between the

point of origin and the point of destination in order to meet the

requirements of customers or corporations.

Queuing – oldest and the most quantitative technique most

widely used in the study of waiting lines

Universal Product Code (UPC) – general term for barcode

consist of unique number and printer bars and intervening spaces

that represents product identification.

Warehouse - is a commercial building or facilities for

storage of goods and products.

10

11

CHAPTER 2

REVIEW OF RELATED LITERATURE

Logistics is the organization of the flow of goods between

the point of origin and the point of destination in order to meet

the requirements of customers or corporations.

Logistics involves the combination of information,

transportation, inventory, warehousing, and material handling,

delivery, idle or holding constraints, routing, packaging and

often security. Logistics is a channel of the supply chain which

adds the value of time and place utility. Today the complexity of

production logistics can be modeled, analyzed, visualized and

optimized by plant simulation software, but is constantly

changing. This can involve anything from consumer goods such as

food, to IT materials, to aerospace and defense equipment.

Logistics is one of the main functions within a company. The

main targets of logistics can be divided into performance related

and cost related. They are high due date reliability, short

delivery times, low inventory level and high capacity

utilization. But when decisions need to be made, there is always

12

a tradeoff between these targets. This is what makes being a

logistician challenging and interesting.

The term production logistics is used to describe logistic

processes within an industry. The purpose of production logistics

is to ensure that each machine and workstation is being fed with

the right product in the right quantity and quality at the right

time. The concern is not the transportation itself, but to

streamline and control the flow through value-adding processes

and eliminate non–value-adding ones. Production logistics can be

applied to existing as well as new plants. Manufacturing in an

existing plant is a constantly changing process. Machines are

exchanged and new ones added, which gives the opportunity to

improve the production logistics system accordingly.

Production logistics is becoming more important with

decreasing batch sizes. In many industries (e.g. mobile phones),

a batch size of one is the short-term aim, allowing even a single

customer's demand to be fulfilled efficiently. Track and tracing,

which is an essential part of production logistics due to product

safety and product reliability issues is also gaining importance,

especially in the automotive and medical industries.

13

In queuing which is the oldest form and the most widely used

technique in quantitative analysis. The three basic qualities of

queuing are the arrivals, service facilities, and the actual

waiting line. Most ideal problems are focused on finding the

ideal level of the service a firm should provide.

1

CHAPTER 31 Baziotopoulos (2008). An Investigation of Logistics Outsourcing Practices In the Greek Manufacturing Sector. PhD thesis

14

PRESENTATION OF GATHERED DATA

Table 2.1 Benchmark Queuing Analysis At the Warehouse 1 CTSI

Logistics CCFD-001 and Warehouse 2 CTSI Logistics CCFD-002

INBOUND

Warehouse

1

Warehouse

2

Average Chassy Arriving (Unit/Day) 2 2

Average Time each Chassy waits to be

Unloaded 9.71 8.4

Total Chassy Hour Lost per Day 19.42 16.8

Estimated Cost of Idle Chassy

(PHP/Hour) 1500 1500

Chassy Time Cost (Waiting time Cost in

PHP) 29,130 25,200

CTSI Logistics Wages and Services Cost

(PHP/day) 15,000 15,000

Total Expected Cost Per Day (PHP) 44,130 36,293.41

Total Expected Cost Per Week (PHP)(4

shipment) 176,520 415,173.67

Total Expected Cost Per Month (PHP) 706,080 580694.64

Cost Difference125,385.36

Service time Difference1.31 hours

Service time Percentage Difference13.49 %

15

In this table shows the computation of Average Waiting time

cost of CTSI Logistics trucking in Unloading the Cargo from the

Chassy at Warehouse 1 CTSI Logistics CCFD-001. The data also

shows ithe service difference between the two facilities

equivalent to 13.49 % amounting to Php 125,385.36

Table 2.2 Operation II Application on Queuing Services on

Warehouse 1

Multi Channel, Multi Server Warehouse 1

Arrival Rate (Actual Arrival

Rate)

36 units / hour

Service Rate (Actual Time

Study)

38 units / hour

K=6 (2 Forklift +2 Stacker + 2

encoder)

6

Po= Probability of Zero in

System)

0.3396

Ls (No. To Be queue) 1.1252

Ws (Waiting time in queue) 0.0712

Pw( Probability that the 89 %

16

service is Busy)

In the Operation Research II, Queuing system Multi Channel,

waiting time in queue is at .0712, or simply the process is delay

by 7.12 minutes per every hour in the inbound of the product to

the company.

Benchmarking: Flow Process Chart for Inbound at CTSI LOGISTICS-

001-CFD

Elements Symbols Time(in

min’s

Distance

(feet)

17

.)

1. Arrival of the Cargo Truck 9 875

2. Opening of Chassy and Removing Safety Bracing

7.5

3. Palletize at the Tailgate

(Repeat 78 times)93.60 1,560

4.Isuue, Inspect and Hit Barcode

(repeat 150 Times)

195 40

5. Load Box to Pallet(repeat 312 times)

174.02

6. Pick Pallet andTransport by Forklift(repeat 78 times Ave. Distance 278 Ft)

147 21,684

7. Store Pallets(Repeat 78 Times) 17.50

8. Close and Dispatch Truck 4.02 875

Total 582.92 24,159

In the chart above shows the flow process chart in warehouse

1. Total time is 582.92 minutes.

18

19

Figure 1: CTSI Logistics Philippines Logistic Supply Chain

Flowchart. Highlighted above shows the bottleneck of the

operation.

20

CTSI Logistics Warehouse Layout

21

Figure 2. Warehouse Layout of CTSI Logistics Philippines

22

Benchmarking: Flow Process Chart for Inbound at CTSI LOGISTICS-

002-CFD (Castrol Product)

Elements SymbolsTime

Mins

Distance

Feet

1. Arrival of theCargo Truck 8.5 435

2. Opening ofChassy and Removing

Safety Bracing8

3. Pick Pallet andTransport byForklift

(RF ID SCAN)(repeat 150 timesAve. Distance 255

Ft)

207.5038250

4. Store Pallets(Repeat 78 Times) 19.50

5. Close andDispatch Truck 4.15 435

Total 247.65 39,120

In the chart above shows the flow process chart in warehouse

2. Total time is 247.65 minutes.

Source:

1

______________________________

Ann Stephanie T. Tapales 

Operation Logistics Specialist

CTSI Logistics Philippines

Benchmarking Summary from Facilities 1 and Facilities 2 of CTSI

Logistics Philippines

WareHouse 1 (Per

Line)

WareHouse 2

Manpower 6 4

Total Time 458.92 min 247.65 min

Inbound Time (Pick,

Hit and Store)

287 min 207.50 min

Time difference in

Service

78 min

Manpower Difference 2

Service time

Percentage

Difference

13.49 %

2

Reduce Cost (Per

Month)

125,385.36

` In the table above shows the Percentage of delay due to

picking, Hit and identification of the boxes during Inbound and

storage.

Backtracking in CTSI from Chassey (Docking Station) to Storage (Warehouse)

Travelling 255 FtTrial Time (minutes)

17.14

28.15

37.45

47.28

3

57.56

68.25

78.45

87.44

97.17

107.04

Total Time77.14

Average time 7.714Normal Time 7.714Actual Time 9.26

In Table above shows the backtracking in CTSI from the

docking facilities to the warehouse. The data shows the

actual and standard time, furthermore it also show the

percentage delay causes by improper stocking and traffic

congestion inside the warehouse facilities.

Table 2.8: Hand held Barcode and Printer Specification

ORIGIN Germany

4

DATE OF PROCURENT 04-17-1996MODEL MNR-0417-JPP-0201Light Intensity 0.25 CdlaLifespan 10 yearsAccuracy +- 1.2 %

Battery12 V 5-Hours Drain

TimePrinter Output Ink Paper StickerProtection No

Table above shows the machine specification of the hand

held barcode , the date of procurement and the origin of the

machine.

5

Chapter 3

Problem Tree

Causes

Effects

6

CTSI Logistics Philippines is experiencing 24.39 %

Delay in operation of warehouse 1 amounting to PHP 125,385.36

CustomerDissatisfaction

OpportunityLoss

Profit loss

Facility WarehouseMismanagement and

Poor Lay-out

(Stocking)

Universal ProductCode (UPC) Hit and

Issue Error

(Man and Machine)

Universal Product Code (UPC) Hit and Issue Error (Man and Machine)

During inbound (unloading of the boxes from the truck to

warehouse), stacker must hit the international barcode and issue

warehouse barcode using portable hand held barcode reader.

Frequently, there are times that printer of the machine jammed

therefore it cost additional time to realign the paper. Also,

when the waybill of the box is damage or unreadable during hit,

the stacker manually encodes the waybill and print the UPC

warehouse control data, negligence comes when the stacker encodes

and print out invalid waybill information. Also poor handling of

the sticker when printed due to ink scattering and damage during

peeling of the paper and the sticker, therefore, it cause

additional time and cost to the company

Figure 1: Sample of the UPC in CTSI Logistics Philippines

Facility Warehouse Mismanagement

7

Mismanagement of the warehouse due to stocking leading

misallocation and allocation of the storage is another factors

that contributes to long waiting time in the operation.

Misallocation comes when the outbound of the boxes which is

missing to the original location. Mishandling and manual

allocation of the storage causes by damage boxes and the

unavailability of the rack during inbound. Furthermore, Poor

Layout affects also the queuing in the systems. Operation is not

effective therefore it decrease productivity and space

utilization.

Effects

Customer dissatisfaction

It is almost certain that the 3rd party distributors

products will be dissatisfied if the company will not be able to

deliver the products on time delay in the delivery of the

products will affect the company’s credibility and the company

needs to avoid this from happening.

Opportunity Loss

The company could lose opportunities because of the flaws in

their overall performance. Because of these, the opportunity for

8

them to gain more customers may reduce. The customers will not be

satisfied with the service they receive. They may also lose their

valued customers because of the problems in the service they

offer.

Profit loss

The Company’s main interest is to earn maximum profit by

achieving their maximizing quality service in the most efficient

way possible. However the company cannot achieve this with their

present services offered that causes them to lose profit.

Objective Tree

Means

9Improvement ofFacility

Warehouse Layoutand Automationusing Pro-model

Convert UPC toRFID Sticker

Tags

Ends

10

To develop a mathematical model that would strategically

minimize the CTSI Logistics warehouse 1 operation cost.

SatisfiedCustomers

OpportunityGain

Profit gain

Convert UPC to RFID sticker Tags

In converting UPC to RFID sticker tags, will reduce the

inbound and outbound time for the services will dramatically

reduced. Within this new technology, small sticker tags are put

into boxes (usually laser marked) and tower sensors in the

warehouse are put that will serve as the automated dispatcher.

Also it reduces human error and effort.

Figure 2: Sample RFID Sticker Tag

Facility Warehouse Automation using Pro-model

11

Automation of the warehouse using Pro-Model will reduce the

misallocation and allocation of the products during inbound and

outbound. Using Pro-Model software enables the company to

automatically locate, relocate and allocation the product that

will reduce company cost, maintenance, transit and holding cost.

Figure 3: Pro- Model Software (Courtesy of CMT Logistics

Philippines)

Figure 4: Proposed Warehouse Lay-out

12

In the figure above, applying the lay-out principle,

arrangement of inbound area into facilities on two opposite side

of the building will dramatically reduce the congestion and

increase space utilization of the company

Customer Satisfaction

If the company will be able to match their target output in

service in the exact time as ordered by the customer, the

customer will be satisfied by the service provided by the company

and the products they will receive.

Opportunity Gain

Upholding customer is one of the things a company needs to

do. By achieving the target output to be delivered, customers

13

will be satisfied with the service they receive. With this the

customers may also recommend their company to other firms.

Increase in profit

If the waiting cost will be reduce the company will gain the

maximum possible profit, this will mean an increase in profit

from the previous months.

CHAPTER 4

ALTERNATIVE COURSES OF ACTION

14

ACA #1: Convert UPC to RFID Sticker Tags

The old system in CTSI Logistics is where the inspector

issues a barcode upon the arrival of the package. Delays

are cause because of malfunctioning of the hand held barcode

reader, poor printing output of the barcode, and jamming of

the paper into the barcode machine. Another factor is that

due to the oldness, the battery is easy to deplete.

The best solution to this problem is to convert and

install a long range RFID detectors and ID tags to the

system. Within this process delay and error will be

eliminated.

Advantages:

Increase company productivity

Improved working conditions

Save space for future improvements

Disadvantages:

Additional cost to the company

15

Table 3.1: Proposed Flow Process Chart for Centralized Methane

Tanks

Conditions EffectsReduce Time 70 min

Reduce Manpower 2

Percentage to Delay 24.39 %

Shared Amount of Opportunity Gain Php 125,385.36

Return of Investment (Break EvenAnalysis)

1.12 Years

Cost of the RFID tags and Sticker Php 1,000,000Shared Amount of Opportunity Gain Php 1,118,403.66

16

Supplier No.1: Airam Technologies (RFID STICKER TAGS)

Model: AE-PPP-1700

Frequency: 13.65 Mhz

Chipise: mifare S50

Origin: China

Source:http://www.alibaba.com/products/

356935189/13_56MHZ_Programming_rfid_sticker_Tag.html

SWOT ANALYSIS

Name Strengths Weaknesses Opportunities

Threats

Supplier: Airam

TechnologieModel:AE-PPP-

programmable

Easy maintenance

Price of each doesnot include tax yet

Demand forindustrialRFID TAGS are emerging

Entry of NewLocal Competitors in the market

17

1700 ISO14443a certificat

e

and shipping costs

in Europe and North America

Table 3.2 BILL OF MATERIALS (Procurement and Installation of

RFID sticker Tags Model: AE-PPP-1700)

COMPONENTS QUANTITY DETAILS PRICE (PHP)RFID TAGS 1 Roll (per

10,000 pcs)

RFID sticker

tags

74,450

RFID TOWER 1 set Computer Based

Inbound

Outbound RFID

Tower

131,100

RFID HAND HELD

GUNS

1 set Programmable

RFID hand Held

Accessories

205,165

TOTAL PROJECT COST

Material Cost PHP 385,000Shipping Cost PHP 250,000

18

Assembly Cost PHP 240,000Labor Cost PHP 125,000Total Cost PHP 1,000,000

In table 3.2 shows the Bill of materials and the

summary of project cost in procurement and installation of

RFID tags and Sticker (Airam Technologies (RFID STICKER

TAGS) Model: AE-PPP-1700) for warehouse 1

ACA #2: Improvement of Facility Warehouse Layout and Automation

using Pro-model

In proposing the new layout for the warehouse facilities by

adding an additional docking area will reduce the congestion flow

and damages to the materials. Automation of the system in

warehousing and allocation of space to the product will

dramatically reduce the misallocation and allocation of the

products during inbound and outbound. Using Pro-Model software

19

enables the company to automatically locate, relocate and

allocation the product that will reduce company cost,

maintenance, transit and holding cost.

Advantages:

Increase company productivity

Improved working conditions

Additional space for future improvements

Disadvantages:

Additional cost to the company

Conditions EffectsAdditional Space Acquired 1463sq. m

Volume Capacity 3000 cu. ftCost of the New Facilities PHP 3,514,700

Return of Investment (Break Even

Analysis)

7.18 years

Shared Amount of Opportunity Gain PHP 489,568.20

Table 3.3 BILL OF MATERIALS (Improvement of Facility

Warehouse Layout and Automation using Pro-model)

20

TOTAL PROJECT COST

Contractor Cost PHP 1,500,000Installation Cost PHP 750,000Software Cost PHP 340,000Labor Cost PHP 799,700Total Cost PHP 3,514,700

In table 3.3 shows the Bill of materials and the

summary of project cost in Improvement of Facility Warehouse

Layout and Automation using Pro-model for warehouse 1

21

Figure 7: Proposed Layout on CTSI Logistics

22

Table 4.1 Cost Benefit Analysis

ACA COST BENEFITS

TANGIBLE INTANGIBLE

1. Convert UPC

to RFID Sticker

Tags

Cost of

procurement

and

installation

of Rfid tags

and sticker (

Airam

Technologies

(RFID STICKER

TAGS)Model:

AE-PPP-1700

= PHP

1,000,000

Shared Amount

of opportunity

Gain

=

PHP1,118,403.6

6

-Return of

Investment

=1.12 years

-Continuous

production

operation

-High Quality

Product

-High Morale

operator

2. Improvement

of Facility

Warehouse Layout

and Automation

using Pro-model

Installation of the Proposed Layout.

= PHP3,514,700

- Shared

Amount of

opportunity

Gain

= PHP

489,568.20

-Return of

Investment

=7.18 years

-Better

performance by

workers

-workers

satisfaction

-quality

products

23

CHAPTER 5

CONCLUSION AND RECOMMENDATIONS

Conclusion

Generally, the objective of the study is to eliminate the

productivity loss by 24.39 % delay in operation problems that

CTSI Logistics had experienced in past months of operation. Each

of the ACAs will increase the productivity in the operation if

implemented. The implementation of all ACAs will reduce the

productivity loss, provide high quality and competitive products

in the daily based operations and services of the company.

Recommendation

Since the major factor that contributes to the productivity

loss is caused by the UPC hit and issue error because of

defective machines, the researcher is highly recommended to

implement ACA1 which is the conversion into RFID tags. This will

remove the delay due to downtime period of the warehouse

operations. Furthermore, the implementation of other alternative

24

are also suggested reducing dramatically the storage time of the

pre- processed materials and also increasing the availability of

the materials to the company customers

25

CHAPTER 6

DETAILED PLAN OF ACTION

ACTIVITY MONTH 1 MONTH 2 MONTH 3 MONTH 4

Planning of theimplementation of ACAs

Review of the studyPresentation ofstudy to the companyConsultation tothe production dept. about matters regarding RFID sticker tags implementation Construction ofthe RFID towersand ControllersFacilitiesEvaluate of implemented ACAs

The table above shows the detailed plan of action of the

chosen alternative courses of action. The implementation of the

ACAs is projected to be completed within four (4) months.

26

Detailed Plan of Action:

1. Planning of the implementation of the ACAs

The proposal will be presented to the top management

including the President, CEO and Plant Manager. The proposal

should be presented substantially so that top management

will see that the project is feasible for the company.

2. Review of the study

Series of integrity and simulation will be

conducted to the company regarding the proposed

implementation of ACAs. Surveying and strict planning,

scheduling and monitoring will be used to serve as a

guide for the feasibility of the study

3. Presentation of the study to the company

Presentation of the proposal to the top management and

it will be subject for approval of the Company President and

Plant Manager. During this time both the Company President

27

and Plant Manager can give their opinions and suggestions

regarding the project.-

4. Consultation to the production dept. about matters regarding

RFID sticker tags implementation.

Consultation to the plant production manager

regarding the implementation of the new proposed

system.

5. Construction of the RFID controls and Towers

The procurement and construction of the RFID

controllers and towers of the plant layout will be

executed the same time as the procurement of the RFID

systems. The changes in the plant can be as long as

three (3) week.

6. Evaluate of implemented ACA

There will be assessment of the effect of the

implemented alternatives. Continuous evaluation of the

28

action plan should be done in order to monitor the

benefits.

ATTACHEMENT

29

30