Republic of the Philippines

PALOMPON INSTITUTE OF TECHNOLOGY

Palompon, Leyte

MAXIMA MACHINERIES INC.: PRODUCTION

MANAGEMENT

A SKILL DEVELOPMENT
Presented to
The Faculty of the Department of Industrial Engineering
College of Technology and Engineering
Palompon, Leyte

In Partial Fulfillment
of the Requirements for the Degree
BACHELOR OF SCIENCE IN INDUSTRIAL TECHNOLOGY

By:

Arradaza, Elmer C.
Samante, Khurt Louie L.
Pongtod, Robert
Ragas, Ryan Vince
Marilao, Jhon Mark
Licardo, Jundy

March, 202
I. Types of Production system followed.

Maxima Machineries, Inc. operates within a job shop production system, tailored to meet the
diverse needs of heavy equipment users. Specializing in the provision of customized parts and
comprehensive services for a wide range of heavy machinery, Maxima Machineries Inc. is a key player in
the industry.
The company's services encompass a spectrum of crucial activities, including the removal and
installation of parts, overhauling, resealing, preventive maintenance, and troubleshooting. These services
are designed to address the specific requirements of heavy equipment, ensuring optimal functionality,
longevity, and performance.
Additionally, Maxima Machineries Inc. distinguishes itself by offering genuine parts for heavy
equipment. These parts are meticulously designed and crafted to not only meet but exceed the demands of
customers and industry standards. By providing authentic and high-quality components, Maxima
Machineries Inc. reinforces its commitment to delivering reliable and efficient solutions for heavy
equipment users.
In essence, the company's job shop production system is characterized by its flexibility and ability
to tailor its products and services to the unique needs of each customer and heavy equipment type. This
approach allows Maxima Machineries Inc. to play a vital role in supporting the functionality and
longevity of heavy machinery across various industries
.

II. How production system managed?

The Maxima managed their production system by doing this;

A. Production Planning: Before making machine parts, Maxima Machineries plans things out carefully.
They think about how much they can make, what resources they have, and how long it will take. This
is because they really care about their customers and want to do a great job for them.
Behavioral Factors: When planning, the team at Maxima works together and talks a lot to make sure
everyone is on the same page. They always keep the customer in mind and try to do their best to make
them happy.

B. Organizing: Maxima uses a schedule to do their work well. They want to use their machines
efficiently and avoid any delays, so they plan everything in a way that makes sense. Being organized
helps them work smoothly.

Modeling when Encountering Problems: If something goes wrong, Maxima's team works together
to find a solution. They look at the problem and try to come up with new and smart ways to fix it. This
helps them keep going and do a good job, even when things get tough.

C. Controlling: Maxima makes sure that everything they make follows the rules. They pay a lot of
attention to detail and make sure the products they create match what the customer asked for. This is
part of their plan to always do a great job and make their customers happy.

Behavioral Factors: The team at Maxima really cares about doing things right. They pay close
attention to the quality of their work and always try to meet what the customer wants. This
commitment to quality is a big part of how they do things.
III. How they utilized manpower, capacity and materials?

A. At Maxima, they utilized manpower by sending their employees to the training center because they
have their own training center, so that they become more flexible in any job they have. They also
utilize their manpower by sending to their clients according to their skills and the skills that the
customers want.

a) The Maxima training center are TESDA registered.

B. Capacity, since that the Maxima accept services and customized special parts of heavy equipment,
they utilized their capacity based on the demand of the customers. If high the demand they used their
full capacity.

C. Materials- Maxima Machineries utilized their materials by measuring and determining the exact
measurement of materials being needed in their service or production, so that no wasting of
materials.

IV. How the customer service is rendered? (Feedback system exist or not)

Maxima Machineries Inc. places a strong emphasis on customer care, aiming to build lasting
relationships with their valued clients. The company is dedicated to providing outstanding support and
personalized assistance to ensure their customers feel comfortable and well taken care of. This
commitment stems from Maxima's deep dedication to their customers.

In instances where Maxima encounters customer care situations, their approach involves actively
engaging with clients, addressing their needs, and providing tailored assistance. The focus is on creating a
positive experience for customers by understanding their requirements and ensuring that they receive the
support they need. This personalized approach helps foster trust and satisfaction among clients,
reinforcing the strong relationship Maxima seeks to establish.

It's worth noting that, as of now, Maxima Machineries Inc. does not have a formalized feedback
system in place. However, the absence of such a system does not diminish their commitment to customer
care. Instead, the company relies on direct interactions, open communication, and a proactive attitude to
ensure that customer needs are met effectively. This hands-on approach demonstrates Maxima's
dedication to maintaining a strong connection with their clients and delivering a high level of customer
satisfaction.

V. The locational factors considered for establishing the enterprise.

Maxima Machineries Inc, like many companies, may consider several location factors when
establishing enterprises. These factors typically include:

 Proximity to Suppliers- Being close to suppliers can reduce transportation costs and ensure a
more efficient supply chain.
  Transportation Infrastructure- Access to well-developed transportation networks, such as
highways, ports, and airports, is crucial for the smooth movement of goods.

 Skilled Labor Availability- The presence of a skilled workforce in the chosen location is
essential for manufacturing and operating machinery.

 Market Demand- Establishing enterprises in areas with high demand for their products can
optimize sales and profitability.

 Regulatory Environment- A favorable regulatory environment can ease the process of

obtaining permits and ensure compliance with local laws.

 Cost of Operations- Considering factors like land costs, utilities, and overall
operating expenses is crucial for maintaining competitiveness.

 Infrastructure and Utilities- Availability and reliability of utilities like electricity, water, and
internet infrastructure are vital for uninterrupted operations.

 Political Stability- A stable political environment reduces risks and uncertainties

associated with business operations.

 Quality of Life for Employees- The attractiveness of the location for employees in terms of living
conditions, schools, healthcare, etc., can impact recruitment and retention. Maxima Machineries
Inc would likely conduct a comprehensive analysis considering these factors to make informed
decisions about the optimal locations for their enterprises.

VI. Strategy adopted for identifying the location [Ex: factor rating, load, distances method etc.]

Maxima Machineries Incorporated employs a comprehensive and strategic approach to facility location,
emphasizing the optimization of operational efficiency through meticulous evaluation processes. The
company places significant importance on key factors crucial to its success, giving substantial weight to
transportation costs as an indication of its commitment to cost-effective logistics. Acknowledging the
pivotal role of a skilled workforce in maintaining high production standards, Maxima Machineries
meticulously considers the impact of labor availability in its decision-making process.

Furthermore, the company prioritizes proximity to suppliers, recognizing the importance of a streamlined
supply chain for timely access to essential resources. This strategic consideration aligns with Maxima
Machineries' overarching goal of ensuring the efficiency and resilience of its production processes. The
assignment of weights to factors such as market demand reflects the company's responsiveness to dynamic
market needs, positioning it to proactively adapt to changing industry trends.

The selection of an optimal facility location is determined through a rigorous analysis that includes
identifying key points, assigning weights or volumes based on load or demand, and calculating the centroid
of the weighted sum. This data-driven decision-making process showcases Maxima Machineries'
commitment to precision and efficiency, even in the absence of a formal chart. The company's dedication to
informed decision-making, cost-effectiveness, and operational excellence underscores its holistic and
strategic approach to achieving sustained success in its business operations.
 I. Type of layout

In the case of Maxima Machineries Incorporated, the decision to employ a combination layout stems
from the dual nature of their production processes. The company engages in the production of customized
parts for heavy equipment, tailored to the specific requirements of individual customers. Simultaneously,
Maxima manufactures volume parts of heavy equipment and even produces complete heavy machinery.

The customization aspect of their production necessitates flexibility in accommodating various sizes and
specifications of heavy equipment parts. Each customized part may differ significantly, demanding a layout
that allows for adaptability in the manufacturing processes. This flexibility is characteristic of a process
layout, where equipment and workstations are organized by function to handle a variety of tasks.

On the other hand, the production of volume parts and complete heavy equipment requires efficiency
and optimization of workflows. Grouping similar processes together helps in achieving economies of scale
and streamlining production. This is typical of a product layout, where the arrangement is organized by the
sequence of production steps.

To reconcile these divergent needs, Maxima Machineries Incorporated utilizes a combination layout.
This allows them to have dedicated areas for the customization of parts, accommodating the variability and
uniqueness of each order, while also having organized and streamlined processes for the production of
volume parts and heavy equipment. By combining aspects of both process and product layouts, Maxima
achieves a balance that optimizes flexibility and efficiency in its manufacturing operations.

I. Physical facilities existing [line lighting ventilators, type of building etc.]

Maxima Machineries Incorporated prioritizes a well-ventilated working environment to enhance

employee comfort and focus during the production of diverse heavy equipment and customized parts.
Adequate air ventilation not only keeps the workstations cool but also contributes to visibility, minimizing
the risk of part interchange or loss. Additionally, the company's choice of a one- story building aligns with
the practical needs of their manufacturing processes. With the in-house production of machines and parts,
the single-level structure facilitates easy transportation of large components, ensuring a smooth workflow.
The spacious layout optimizes space utilization and supports efficient organization of workstations,
contributing to the overall effectiveness of Maxima Machineries manufacturing operations.

II. Material handling in the establishment for production and services.

Maxima Machineries maximizes the efficiency and safety of their material handling solutions by
incorporating fixed handling equipment into their processes. Utilizing conveyor belts, hoists and lifts, pallet
racks, shelving units, and cranes, they ensure a streamlined workflow tailored to their specific production
needs. Conveyor systems enable the seamless movement of materials along predetermined paths, efficiently
handling large volumes and minimizing manual effort. Hoists and lifts provide precise control over vertical
material movement, optimizing processes such as assembly and loading/unloading. Pallet racks and shelving
units contribute to organized storage, ensuring quick access to inventory and efficient space utilization.
Various types of cranes are strategically employed for heavy lifting, reducing the risk of damage and
enhancing overall productivity.

A key emphasis for Maxima Machineries is on safety. By minimizing manual handling of heavy or
awkward loads through fixed handling equipment, they significantly reduce the risk of accidents and
injuries. This approach not only improves workplace safety but also ensures a consistent and reliable
material handling process. The reliability of fixed handling equipment contributes to a standardized
workflow, allowing for predictable and optimized operations.

III. Type of material handling equipment used for production and services.

In delivering material handling solutions to clients, Maxima Machineries emphasizes the efficient and
safe handling of materials. The incorporation of fixed handling equipment aligns with their commitment to
providing reliable, streamlined, and client-focused solutions. This strategic Maxima Machineries Inc.
utilizes a variety of material handling equipment tailored to their specific production and service needs:

A. Conveyor Systems: Conveyor systems facilitate the seamless movement of materials

between different production stages or departments. Maxima Corp utilizes them to
automate material transport, ensuring a continuous and efficient workflow.

B. Pallet Racks: Pallet racks are integral for organized storage of materials and products.
Maxima Corp utilizes them to optimize warehouse space, making inventory easily
accessible and promoting systematic inventory management.

C. Cranes: Cranes play a crucial role in lifting and positioning large or bulky items.
Maxima Corp employs various types of cranes to enhance productivity during
manufacturing or assembly processes, allowing for the precise handling of heavy loads.

D. Shelving Units: Shelving units are utilized for the organized storage of smaller parts or
components. Maxima Corp employs them to keep smaller items easily accessible,
supporting efficient inventory management and quick retrieval.

E. Hoists and Lifts: Hoists and lifts are used by Maxima Corp for lifting and positioning
materials or equipment at different heights within the facility. They enhance workflow
by facilitating vertical movement, aiding in tasks such as loading/unloading and
assembly processes. utilization of equipment ensures that Maxima Machineries
maximizes productivity, minimizes risks, and ultimately enhances customer satisfaction
by delivering consistent and optimized material handling processes.
IV. Utilization of material handling equipment.

Maxima Machineries places a strong emphasis on the reliability and longevity of their material handling
equipment through a comprehensive maintenance and repair program. Several key practices are employed to
ensure optimal performance and minimize downtime:

 Regular Inspections: Scheduled inspections conducted by trained technicians play a

vital role in identifying potential issues before they escalate into major problems. This
proactive approach allows for timely interventions, preventing unexpected breakdowns
and ensuring continuous equipment functionality.

 Preventive Maintenance: Maxima Machineries implements routine maintenance tasks

such as lubrication, cleaning, and adjustments. These activities are crucial for keeping
equipment running smoothly, reducing wear and tear, and preventing unexpected
breakdowns. Preventive maintenance contributes significantly to the overall longevity
of the equipment.

 Predictive Maintenance: Leveraging sensors and data analytics, Maxima Machineries

employs predictive maintenance strategies. By monitoring equipment performance and
analyzing data, they can identify patterns that may indicate an impending need for
maintenance or repair. This proactive approach allows for strategic interventions,
minimizing the risk of unexpected failures.

 Emergency Repair Services: Maxima Machineries maintains a dedicated team of

technicians available for emergency repair services. This rapid response team ensures
quick resolution of unexpected equipment failures, minimizing downtime and swiftly
restoring operations. The immediate response capability is crucial for meeting
production demands and client expectations.

 Training Programs: Maxima Machineries invests in training programs for both

operators and maintenance personnel. Proper training ensures that equipment is used
correctly, reducing the risk of damage and enhancing overall safety. Well-trained
personnel are better equipped to identify potential issues and communicate them for
timely intervention.

V. Material Requirement Plan for procurement of Raw materials

Material Requirement Plan (MRP) for the procurement of raw materials at Maxima Machineries Inc.:

A. Analyzing Production Schedules: Understand what machinery needs to be produced

and when by reviewing production schedules and collaborating with the production
department.

B. Assessing Current Inventory Levels: Ensure there are enough raw materials on hand
for production without causing shortages or excess. Set up reorder points to prompt
procurement when inventory is low.

C. Understanding Lead Times: Communicate with suppliers to know how long it takes
for them to deliver raw materials after an order is placed. Consider various factors that
could affect delivery times.
 D. Forecasting Demand: Anticipate future raw material needs based on expected demand
for Maxima Machineries' products. Use historical sales data, market trends, and input
from sales and marketing teams.

E. Determining Quantities to Order: Optimize order quantities by calculating the

Economic Order Quantity (EOQ) and considering safety stock levels to account for
uncertainties in demand and supply.

F. Timing of Orders: Align the timing of raw material orders with production schedules
to prevent delays or excess inventory. Develop a procurement schedule considering
production lead times, order processing, and delivery schedules.

G. Identifying Preferred Suppliers: Evaluate potential suppliers based on quality,

reliability, pricing, and flexibility. Establish partnerships with key suppliers and
negotiate favorable terms when possible.

H. Utilizing Technology for Integration: Implement MRP software to automate tracking

and planning of raw material procurement. Utilize technology for real-time visibility
into inventory levels, demand changes, and supplier performance.

I. Communication and Collaboration: Maintain regular communication with suppliers

to address issues promptly. Collaborate with production, sales, and finance teams to
ensure alignment in planning and execution.

J. Continuous Monitoring and Improvement: Regularly review and refine the MRP
based on changing conditions. Conduct audits to ensure data accuracy and gather
feedback from stakeholders to identify areas for improvement in the procurement
process.

VI. Purchase Procedure adopted

The purchase procedure adopted by Maxima Machineries Incorporated typically involves the
following steps:

A. Identifying Needs: Departments or individuals within the company identify their requirements for
goods or services, considering factors such as quantity, quality, specifications, and budget constraints.

B. Request for Quotation (RFQ): If the required items are not readily available in inventory or if new
suppliers are being considered, a request for quotation (RFQ) is issued to multiple potential vendors.
The RFQ includes details of the desired products or services and asks for pricing, delivery terms, and
other relevant information.

C. Supplier Evaluation and Selection: Upon receiving responses to the RFQ, the procurement team
evaluates the proposals based on criteria such as price, quality, reliability, reputation, and compliance
with company policies and standards. A supplier or suppliers are then selected for further negotiation or
awarding of the contract.

D. Negotiation and Contracting: The procurement team negotiates with the chosen supplier(s) to finalize
terms and conditions, including pricing, payment terms, delivery schedules, warranties, and service
level agreements. A formal contract may be drafted and signed by both parties to solidify the
agreement.
 E. Purchase Order (PO) Issuance: Once the terms are agreed upon, a purchase order (PO) is generated
and sent to the supplier, specifying the details of the purchase, such as item descriptions, quantities,
prices, delivery dates, and shipping instructions. The PO serves as a legally binding document
authorizing the supplier to fulfill the order.

F. Receipt and Inspection: Upon delivery of the goods or completion of the services, the receiving
department inspects the items to ensure they meet the specified requirements and are in good condition.
Any discrepancies or issues are documented and addressed with the supplier as necessary.

G. Invoice Processing and Payment: After verifying that the goods or services have been received as per
the PO and are satisfactory, the finance department processes the supplier's invoice for payment
according to the agreed-upon terms.

H. Supplier Performance Evaluation: Periodically, the procurement team evaluates the performance of
suppliers based on factors such as delivery timeliness, quality of products or services, responsiveness to
inquiries or issues, and adherence to contractual terms. This feedback informs future purchasing
decisions and supplier relationship management. By following these steps, Maxima Machineries
ensures a systematic and efficient purchase process that enables the acquisition of goods and services
needed to support its operations while maximizing value and minimizing risks.

VII. The supplier or vendors selection.

Maxima Machineries Inc. likely employs a supplier or vendor selection process that involves
criteria such as quality, reliability, price, lead times, past performance, and compliance with standards or
regulations. They may conduct supplier evaluations, request proposals or quotes, perform background
checks, and negotiate contracts to ensure they partner with suppliers that meet their specific requirements
and contribute to their overall goals. The exact selection criteria and process would be outlined in their
procurement policies or procedures.

VIII. Adaptation of JIT Manufacturing Technique

Adapting the just-in-time (JIT) manufacturing technique for Maxima Machineries Incorporated
involves several key steps:

 Supplier Integration: Collaborate closely with suppliers to ensure timely delivery of raw materials
and components, aligning their production schedules with Maxima's manufacturing needs.

 Inventory Management: Minimize inventory levels by ordering materials only when needed,
reducing storage costs and minimizing waste.

 Production Scheduling: Implement a flexible production schedule that responds to customer

demand in real-time, allowing for efficient use of resources and reducing lead times.

 Quality Control: Emphasize rigorous quality control measures to ensure that each product meets
the required standards, preventing defects and rework.
 Employee Training: Train employees to work efficiently in a JIT environment, emphasizing the
importance of teamwork, communication, and problem-solving skills.

 Continuous Improvement: Establish a culture of continuous improvement, encouraging employees

to identify and implement opportunities for enhancing efficiency and reducing waste.

 Risk Management: Anticipate and mitigate potential risks, such as supply chain disruptions or
fluctuations in demand, to maintain smooth operations. By effectively implementing these
strategies, Maxima Machineries can realize the benefits of JIT manufacturing, including reduced
costs, improved quality, and increased customer satisfaction.