QUEZON CITY UNIVERSITY

THE EFFECT OF ADVANCED MANUFACTURING TECHNOLOGY ON

RESPONSIVE SUPPLY CHAIN STRATEGY, PULL SYSTEM AND

RESPONSIVENESS TO MARKER IN CATHAY METAL CORPORATION

In Partial Fulfilment of the Course Requirements in

Quality Management System
for the Degree in
Bachelor of Science in Industrial Engineering (BSIE)

______________________

SUBMITTED BY:

Acop, Cherry Mae J.

Custodio, Jessel Bryan D.
Dequilla, Maria Patricia
Laoyon, Mary Mae V.
Tinio, Jonalyne
Yacap, Allysa D.

(Group 1)

BSIE – 4F

SUBMITTED TO:

Engr. Evelyn Dacanay

December 2024

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TABLE OF CONTENTS

I. INTRODUCTION
 Company Profile
 Background of the Company
 Company Mission, Vision and Core Values
 Location Map
 Product

II. PRODUCTION
 Flow Chart
 Layout
 Process Chart
 Outline Process Chart
 Safety

III. QUALITY MANAGEMENT SYSTEMS AND INITIATIVES

 ISO 9000
 Total Quality Management
 Lean Six Sigma
 PDCA
 Malcolm Bladrige National Quality Awards

IV. QUALITY IMPROVEMENT TOOLS AND TECHNIQUES

 Problem Solving Tools
 Problem Identification Tools
 Tools for Measuring Quality(Process Chart - Process
Capability Index)
 Tools for Measurement Systems Analysis
 Acceptance Sampling Techniques

V. PROCEDURES
VI. DATA AND RESULTS
VII. VII. DOCUMENTATION
VIII. CONCLUSIONS AND RECOMMENDATIONS

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I. INTRODUCTION

COMPANY NAME
CATHAY METAL CORPORATION

COMPANY PROFILE
Cathay Metal Corporation is a dynamic and forward-thinking
industrial conglomerate with a rich heritage in iron and steel production
and manufacturing. Established in 2014, our company has evolved into a
leading player in the global marketplace, renowned for its commitment to
excellence, innovation, and customer satisfaction.

BACKGROUND OF THE COMPANY

Cathay Metal Corporation is a diversified industrial company
primarily engaged in the production of iron and steel, as well as various
related products. Founded in 2014, it has established itself as a
significant player in the Iron and Steel Mills and Ferroalloy Manufacturing
sector.

In addition to iron and steel production, Cathay Metal Corporation

is involved in Other Nonmetallic Mineral Product Manufacturing,
producing a range of materials that complement its primary metal
operations. This diversification allows the company to serve a broader
market and mitigate risks associated with fluctuations in specific sectors.

The company's operations also encompass Primary Metal

Manufacturing, indicating its involvement in the initial stages of metal
production, such as smelting and refining. This vertical integration likely
provides Cathay Metal Corporation with greater control over its supply
chain and production processes.

Furthermore, Cathay Metal Corporation is engaged in

Manufacturing various metal and steel products, including pipes, billets,
and abrasive materials. This broad product portfolio caters to diverse
industries, from construction to manufacturing, further solidifying its
position in the market.

Overall, Cathay Metal Corporation's extensive involvement in iron

and steel production, along with its diverse product range and vertical
integration, underscores its significance in the manufacturing sector.

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COMPANY MISSION, VISION AND CORE VALUES

Vision:
"Our vision is to become a global leader in the
manufacturing industry, known for our commitment to
excellence, innovation, and sustainability. We strive to set
new benchmarks for quality and customer satisfaction while
driving positive change in the communities we serve."

Mission:

"Our mission is to deliver superior value to our customers by

providing high-quality metal and steel products, innovative
solutions, and exceptional service. We are dedicated to
fostering a culture of continuous improvement, integrity, and
environmental responsibility, while creating opportunities for
our employees to grow and succeed. Through our relentless
pursuit of excellence, we aim to drive sustainable growth and
generate value for our stakeholders."

LOCATION MAP

299 P. Dela Cruz Street, San Bartolome, Novaliches Quezon, Manila,

1123 Philippines

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PRODUCT

II. PRODUCTION

FLOW CHART

FLOW DIAGRAM

Process Description Time (min) Distance (m)

1.Receiving of raw materials 120 20

2. Product size identification 20 3

3. In furnace section, the billet will undergo 300 150

different heating temperature.

4. The heated billet will pass through the 9 10

roughing mill six times.

5. After passing six times, it will go through to 4 10

oval roughing mill two times.

6. After the passing two times in the oval 3 10

roughing mill, it will pass through in the oval
intermediate mill where the angle bar is shaped.

7. The angle bar will pass through in the oval 3 10

finishing mill where the desired size is finalized.

8. In the finishing mill, the billet will have the 4 5

logo, dimension, and grade imprinted.

9. In the cooling bed area, the angle bars will be 3 4

set aside.

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10. The angle bars will be cut down to their 3 3

specific sizes.

11. After cutting down the billets, a small size 1 3

angle bar by batch needs to be ready for
inspection.

12. After checking if the produced angle bars 1 10

have no defects, it will be set aside in the
cooling area.

13. In straightening section, the angle bars will 3 4

pass through the straightener where it will be in
the final straightness.

14. After straightening, the angle bars will be 15 8

bundled by 100.

15. It will be painted by specific color by their 10 10

specific sizes.

16. The final process is tagging by their sizes. 13 3

17. It will be stored in the warehouse. 30 20

PRODUCTION LAYOUT

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PROCESS CHART

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SAFETY
Safety guidelines in Cathay Metal Corporation workplace are critical to
ensuring the well-being of employees and the prevention of accidents or
injuries.

PURPOSE/OBJECTIVE
The policy clearly outlines the roles and responsibilities of management,
supervisors, employees, and other stakeholders in safety matters, promoting
accountability and effective coordination in implementing safety measures and
hazards. Establishing proactive measures and preventive actions, a safety
policy aims to reduce the likelihood of workplace incidents, accidents, and
occupational illnesses.

RESPONSIBLE PERSON AND RESPONSIBILITIES:

1. Workers are obligated to understand and adhere to all safety policies,
procedures, and guidelines that are pertinent to their work tasks.

2. Workers are required to wear and maintain necessary Personal Protective

Equipment (PPE), such as safety glasses, gloves, hard hats, or hearing
protection, as specified by their employer.

3. Workers may be expected to participate in safety committees or meetings,

where they can contribute ideas, concerns, and suggestions for improving
workplace safety.

4. Workers are encouraged to participate in safety inspections, audits, and

investigations by employers or regulatory authorities, providing accurate
information and assistance as needed.

5. Workers foster a safety culture in the workplace by encouraging colleagues

to prioritize safety, setting an example, and actively participating in safety
initiatives.

6. Workers should be familiar with emergency response procedures, such as

assembly points, evacuation points, and protocols for handling fire
situations, medical emergencies, or other crisis situations.

GUIDELINES/PROCEDURE:

1. Employers mandate workers to undergo safety training programs, covering

hazard recognition, emergency procedures, and proper use of PPE.

2. Outlines guidelines for the safe handling, storage, and transportation of

electrical equipment to prevent damage, malfunctions, or accidents.

3. Implement a comprehensive maintenance program for electrical systems,

involving regular inspections, testing, and calibration of equipment to
guarantee optimal performance and safety.

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4. The training program should instruct employees on identifying and reporting

electrical hazards, including exposed wires, overloaded circuits, and
damaged equipment, and implementing prompt resolution procedures.

5. Implement clear and accessible work areas around electrical equipment,

ensuring proper labeling, signage, and barriers to prevent unauthorized
access.

6. It is crucial to adhere to established wiring standards and guidelines for the

safe installation and maintenance of electrical wiring systems, ensuring
proper grounding, insulation, and circuit protection.

7. Develop and communicate emergency response procedures for electrical

incidents, including electric shocks, power outages, and equipment failures.

8. Regular risk assessments of electrical work activities and the

implementation of mitigation measures like job hazard analyses are crucial
to reduce the risk of accidents or injuries.

9. Maintaining precise records of electrical inspections, maintenance activities,

training sessions, and incident reports to monitor compliance and pinpoint
areas for enhancement.

10. The company is committed to continuous improvement through employee

feedback, safety audits, and policy updates based on best practices and
lessons learned.

III. QUALITY MANAGEMENT SYSTEMS AND INITIATIVES

ISO 9000
Cathay Metal Corporation's utilization of both ISO 9000 and PNS 657-
2008 reflects its commitment to implementing robust quality management
systems (QMS) that align with international standards as well as specific
national requirements in the Philippines.

ISO 9000
By adhering to ISO 9000, Cathay Metal Corporation demonstrates its
dedication to following globally recognized quality management principles. This
includes establishing processes for quality management, continual
improvement, customer focus, and adherence to applicable statutory and
regulatory requirements. ISO 9000 provides a framework for Cathay Metal
Corporation to streamline its operations, enhance customer satisfaction, and
drive organizational improvement.

PNS 657-2008
Implementing PNS 657-2008 ensures that Cathay Metal Corporation's
quality management system complies with specific standards and regulations
set forth by the Bureau of Philippine Standards (BPS). PNS 657-2008 likely
incorporates the core principles of ISO 9000 while also addressing any unique
considerations or requirements relevant to the Philippine context. By adhering
to this national standard, Cathay Metal Corporation demonstrates its
commitment to meeting local regulations, enhancing product quality, and
fostering trust among Filipino consumers and stakeholders.
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Combining ISO 9000 with PNS 657-2008 allows Cathay Metal

Corporation to leverage both international best practices and local standards to
optimize its quality management processes. This approach enables the
company to maintain high standards of quality, ensure regulatory compliance,
and continuously improve its operations to meet the evolving needs of its
customers and stakeholders in both domestic and international markets.

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DOCUMENTATION

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V. PROCEDURE

Figure # Process of Printing a Paper

The image illustrates the production of angle bar. Here's a breakdown of the
steps:

1. Selection of materials: Carefully choose high-grade steel, Quality control

ensures only materials meeting stringent standards are used, guaranteeing the
integrity and performance of the final product.

2. Grinding: This is essential for ensuring the ingots are clean and uniform
before they are melted down. Grinding improves the ingots' surface quality,
enhancing their workability and facilitating the melting process

3. Heating: Subject the prepared steel to controlled heating in a furnace,

raising it to a precise temperature. Heating softens the steel, making it more
pliable and easier to shape during subsequent processes.

4. Rolling: Pass the heated steel through rolling mills, where pairs of rollers
gradually shape it into the desired angle profile. This deformation process,
conducted through successive passes, results in the formation of the
characteristic shape of angle bars.

5. Cooling: Once shaped, cool the angle bars to stabilize their structure.
proper cooling prevents deformation and ensures the angle bars retain their
desired properties, such as strength and hardness.

6. Cutting: Size the cooled angle bars to the required dimensions using
shearing machines. Precision cutting ensures the angle bars meet specified
tolerances and dimensions,

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7. Quality control: Implement rigorous quality control measures throughout

the production process. Any deviations from specified standards are identified
and rectified to ensure only high-quality angle bars are delivered to customers.

8. Storage: Once quality control checks are completed, carefully package

and store the finished angle bars in designated areas

The arrows indicate the progression from one step to another. This process
ensures that the Angle Bar is accurate and of high quality. Please note that this
is a general process and the exact steps may vary based on specific
requirements or workflows.

VI. DATA AND RESULTS

The total number of rejects observed was 72. The most common type of
reject was “Surface Imperfection”, accounting for 33.33% of the total rejects.
This suggests a potential issue with the process in the system. This issue not
only wastes resources but also increases the workload for quality control and
can lead to customer dissatisfaction if not detected before delivery.

The second most common type of reject was “Warping”, contributing to

25% of the total rejects. Warping can significantly impact the usability of the
Angle bar, leading to a negative perception of the product’s quality. This could
be due to issues with the cooling process of the production.

On the other end of the spectrum, the least common type of reject was
“Internal Defects”, which accounted for only 4.17% of the total rejects. While
this issue is less frequent, it is still important to address as it can lead to
significant waste of resources and potential dissatisfaction among customers
expecting a durable product.

The analysis of these reject types provides a roadmap for improving the
quality of the Production process. By focusing on the most common types of
rejects, quality management efforts can be targeted effectively to reduce the
overall number of rejects. This not only improves the efficiency of the
Production process but also enhances customer satisfaction by delivering high-
quality materials It is recommended that further investigations be conducted
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into the causes of these common rejects. Potential corrective actions could
include equipment calibration, operator training, or Machinery updates. Regular
monitoring and analysis of rejected data should also be carried out to track the
effectiveness of implemented improvements and identify new areas of focus.

This analysis and its conclusions form an integral part of our academic
study on Quality Management Systems in the Production Industry industry. It
underscores the importance of data-driven decision-making in quality
management and provides valuable insights for other industries facing similar
quality control challenges.

V. RECOMMENDATION AND CONCLUSION

Based on the analysis of the provided data, several recommendations

can be made to improve the quality of the printing process. The most common
type of reject was “Surface Imperfection”, accounting for 33.33% of the total
rejects. This suggests a potential issue with the process in the system.
Therefore, the first recommendation is to address this issue by optimizing
grinding processes, enhancing material handling, improving surface inspection
methods, maintaining cleanliness, optimizing rolling parameters, implementing
surface treatment techniques, ensuring material quality, and providing
comprehensive operator training.

The second most common type of reject was “Warping”, contributing to

25% of the total rejects. Warping can significantly impact the usability of the
Angle bar, leading to a negative perception of the product’s quality. This could
be due to issues with the cooling process of the production Therefore, the
second recommendation is to optimize cooling processes, ensure uniform
material heating, minimize stress during rolling, maintain proper material
alignment, implement controlled cooling methods, inspect for uneven cooling,
and employ corrective measures promptly.

Even though "Internal Defects" was the least common type of reject, it is
still important to address this issue to avoid waste of resources and potential
dissatisfaction among customers. Therefore, the third recommendation is to
implement rigorous material inspection procedures, optimize melting and
casting processes to reduce impurities, conduct thorough quality control checks,
utilize non-destructive testing methods, and ensure proper handling and
storage of raw materials to minimize contamination risks.

In conclusion, the analysis of reject types provides valuable insights into

the areas that need improvement in the printing process. By focusing on the
most common types of rejects, quality management efforts can be more
effectively targeted to reduce the overall number of rejects. This not only
improves the efficiency of the production process but also enhances customer
satisfaction by delivering high-quality printed materials. Regular monitoring and
analysis of rejected data should be carried out to track the effectiveness of
implemented improvements and identify new areas of focus. This data-driven
approach is crucial for effective quality management in the production industry
and can provide valuable insights for other industries facing similar quality
control challenges. Please note that these recommendations are based on the
provided data and analysis. Actual implementation may require further
investigation and consideration of additional factors.

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IX. QUALITY IMPROVEMENT TOOLS AND TECHNIQUES

Surface Imperfections

1. Why are there surface imperfections on the angle bars?

 The surface imperfections are due to temperature fluctuations during
the cooling process.

2. Why are there temperature fluctuations during the cooling process?

 The cooling water temperature is not being consistently maintained.

3. Why is the cooling water temperature not being consistently maintained?

 The cooling system's temperature control mechanisms are

malfunctioning.

4. Why are the cooling system's temperature control mechanisms

malfunctioning?

 The sensors and control units are outdated and not calibrated correctly.

5. Why are the sensors and control units outdated and not calibrated correctly?

 Regular calibration and updates are not part of the maintenance

schedule.

Warping

1. Why is there warping in the angle bars?

 Warping occurs due to uneven heating in the reheating furnace.
2. Why is the heating in the reheating furnace uneven?
 The furnace temperature distribution is not uniform.

3. Why is the furnace temperature distribution not uniform?

 Some of the furnace burners are malfunctioning or misaligned.

4. Why are some of the furnace burners malfunctioning or misaligned?

 There has been a lack of regular inspection and maintenance of the
burners.

5. Why has there been a lack of regular inspection and maintenance of the
burners?
 The maintenance schedule does not prioritize frequent checks and
repairs of the furnace components.

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Cracks

1. Why are there cracks in the angle bars?

 Cracks are forming due to rapid cooling after the rolling process.

2. Why is rapid cooling occurring after the rolling process?

 The cooling rate is too high because the cooling system is set to an
excessively low temperature.

3. Why is the cooling system set to an excessively low temperature?

 The temperature settings have not been adjusted to match the

specific material requirements.

4. Why have the temperature settings not been adjusted to match the
specific material requirements?

 There is a lack of detailed process guidelines for different materials.

5. Why is there a lack of detailed process guidelines for different materials?

 The production process documentation is outdated and has not

been revised to include recent best practices and material
specifications.

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