Bprodom Final Paper

NATIONAL UNIVERSITY
COLLEGE OF BUSINESS AND

ACCOUNTANCY
ARGEL METAL FABRICATION

A.Y. 2016-2017
2nd Semester
In Partial Fulfillment
Of the Requirements for the Course
Production and Operation Management - BPRODOM
ACT141
Galban, Donna Silayan M.

Margallo, Lloyd Sonica D.
Morales, Crisha Faith M.
Santos, Jehan Alexis A.
Villarba, Kim Cassandra L.
Mr. Rainier David A. Tayurang

Professor
COMPANY PROFILE
ARGEL Metal Fabrication is a made to order manufacturing entity owned by the family
of Gantang. It is acknowledged as a sole proprietor business located at Sampaloc, City of
Manila. The name of the business is derived from their offsprings epithet namely Argee and
Angel. The operations began during the year of 2009 and still in service until now. Store is open
from Mondays until Saturdays from 8 am to 5 pm.
The proprietor offers diverse products depending on what the client has ordered. Some
of these are the following: Bushing, Plastic Washer or Plastic Roller, Toggle Plate and Seat,
Gears, Bolt, Spacer, Shafting, Fan, Piston ring, Toggle Pattern (wood) and pulley. And, their
most recognized clients are Electa, Grand Power, Red Cargo and Benedicto Steel companies.
Since it is at a halt going through, few types of machinery are owned by the unit unlike
big factories who has a huge amount of capital, giving them a great opportunity to acquire
numerous machineries. The biggest ace the entity has is the almost 15 years experience of the
owner in terms of fabricating metals being a former Machinist at Pier North Arbor. There are still
bunch of stuffs that the small proprietor would be encountering along the way, the important
aspect it has is the determination to continue despite technological changes are happening.
Galban, D., Margallo, L., Morales, C., Santos, J., Villarba, K. Page 2
LOGO
BUSINESS CERTIFICATES
CHAPTER 1: RAW MATERIALS
1.1 Origin
The unprocessed goods needed in the fabrication are ordered and picked up by the
entity from Seno Hardware located at Binondo, Manila. Direct calls will be made to set aside the
needed materials, this is made subsequent to receiving the order from their clients and following
that day, the materials is by now ready for pick up. Domingo Hardware is another provider of the
entity. However, Seno Hardware grants discount every purchase hence it is more favorable to
get materials there. The amount of raw materials depends on the particular job needed to be
finished on a specific deadline. In most cases, the resources needed for the finishing product
are provided by the customer since few of the customers are meticulous when it comes to
certain bits and pieces used. Furthermore, for safety requirements and lack of the availability of
the explicit object vital for the output they eagerly hands it out for well-organized and valuable
transaction. The following are the most raw materials acquired by the entity: Tiger Bronze,
Engineering Plastic, 4140, 1045, CRS, Stainless, Aluminum, Fiber, Wood and Cast Iron.
1.2 Timeliness of Delivering or on Time Delivery
The entity maintains no inventory on hand. It uses a Just in Time Inventory wherein the
goods needed for the operation are received in a particular day and issued directly to production
upon receipt. The production implemented this kind of inventory to help reduce the cost in
manufacturing the goods such as carrying cost. Thus, goods are assumed to be ready right on
time when it is needed. The availability of materials to be used depends on the size it
possesses. Small materials are available within 12 hours while for larger projects involves the
maximum of 72 hours to be on hand. The entity makes sure to accept possible jobs only for the
reason that the owner weighs the risk of producing the products on time or losing its customers
and moreover, the nuisance of losing the money invested in buying the raw materials for that
specific job.
1.3 Quality Assurance
In order to avert defective raw materials acquired by the entity, the proprietor picks up
the orders prepared; to check, whether it is structured as it was. Moreover, make certain that
either Seno Hardware or Domingo Hardware only will provide the materials required for
processing due to quality trust they have for their main suppliers since, year 2008. On the other
hand, resources supplied by the customers are put into process. The business considers three
areas arranged based on priority when it comes to buying the products; these are the Durability,
Aesthetics and Cost respectively. Durability means able to perform or compete over a long
period, as by avoiding or overcoming injuries (freedictionary). On the other hand, Aesthetics
refers to the appearance of a specific thing. Lastly, Cost is defined as the value to be given up in
order to obtain the item. These guidelines in terms of purchasing the raw materials enable the
business to produce the desired product without any deficiencies which in turn, meet the
intended use of the ordered product.
CHAPTER 2: MANUFACTURING PROCESS
2.1 Design, Research and Development
The increase in competition among industries is one of the biggest challenges amongst
businessman. With the help of this Design, Research and Development, ARGEL Metal
Fabrication has managed to comply with the undying demands and wants of the society. From
an article in the online website of PhilStar it was noted that The countrys manufacturing sector
grew 8.4 percent in February, reversing the 2.1 percent contraction in the same period last year.
Growth in production value was seen the most in fabricated metal products, food, printing,
furniture and fixtures (Valencia, 2016). With the established and visible statement of the popular
news provider, modernization and further developments should be given with attention by the
small entity. Above all that the fabricated metal products was mentioned together with the other
growing in size products. Being a keen group observers and interviewees, the manufacturing
entity we visited have not manifested the dread of regression due to different advancement
taking place around the country, more overly around the world mainly because that even it is
small in size, the entity assures the complying principle it has in terms
of accepting diverse and incredibly latest orders. The above reality is
acknowledged through verifying the following dealings taken by the
metal fabricator entity. In the research section, the owner of the
previously mentioned business is definitely not only a well-informed
manufacturer but also a service provider; in unoccupied days of the
proprietor, providing services in large manufacturing company such as Benedicto Steel
Corporation is given a space out the schedule. The chance to have a part-time job there
bestows him further familiarity about the new trends and developments happening nationally
which is a great privilege that can help the business he manages. Acquiring such new
informations from there, the sole proprietor creates ideas in further innovating what he had
gathered and making a trial and error until it turns into a success.
While for the Design and Development phase, the entity adapts the Forward and
Reverse Design. Mahdjoubi, D. (2009, p.14) states that forward design includes the forward flow
of information that initiates from Design and Development to provide information needed for
production which leads to new products for the market.
Consequently, the reverse design is the opposite of forward design.
Reverse design is used in bigger amount than forward since it is
less costly than the other. This is because forward design involves
trial and error which requires money to be spent in a single try.
Reverse design had been so helpful to ARGEL Metal Fabrication;
since the majority of large machineries are unaffordable with the
operating profit they have The owner, with the aid of his technical vocation and more than 10
years of experience in using machines, have done an amazing work of assembling a Hydraulic
Press (see Appendices p.2) without the need of purchasing one. According to the owner, he
assembled the Hydraulic Press for two days only during year 2009 without the help of any
person. In addition, it costs him only at around P10,000.00 which is exceedingly advantageous
for the reason that in the market, the selling price is P52,000.00 (OLX Titan Supertools, 2009).
2.2 Technology
Being a small business at present, Argel Metal Fabrication still uses manual process of
production. It involves cutting, forming, machining, welding and final assembling of steel or other
materials using different tools, techniques and processes. Cutting is done with a variety of tools
that the raw material must be cut to its needed size. It is done by the supplier when they ordered
the raw material. Forming is a process of material deformation typically applied to metals. To
define the process, a raw material piece is formed by applying force to an object. Machining is
the process of removing unwanted material from the block of metal to get the desire shape.
Welding is the focus of steel fabrication. The formed and machined parts will be assembled and
tack welded into place then re-checked for accuracy. The owner then completes welding as per
the engineering drawings if welding is detailed or as per his /her own judgement if no welding
details are provided. Since the entity only makes a product when the customer ordered, some of
them give a sample product or drawings as a guide. Lastly, after the welding has cooled it is
generally sand blasted, primed and painted. Any additional manufacturing specified by the
customer is then completed. The finished product is then inspected and shipped. With its three
machines: lathe, hydraulic press and drilling they can produce a single product one at time.
2.3 Production Schedules
The researchers focused on two main products of Argel Metal Fabrication, toggle sits
and toggle plate. These products are parts of a machine used to manufacture gravel. The
production schedules are shown below:
DAY 1 DAY 2 DAY 3 DAY 4 DAY 5 DAY 6 DAY 7
PURCHASE ORDER
DELIVERY OF SUPPLIES
LATHE MACHINE
DRILLING
THREADING
CLEANING
Fig. 2.31
Toggle Sit
Upon receiving the order from the consumer, they will also demand to the supplier the
raw material (cut metal with a weight of 45 kg.) needed for manufacturing. It will take three (3)
days to pick the material and another three (3) days in lathe machine. Next is drilling, threading
and cleaning for finalizing the product and ready to deliver or picked by the customer.
DAY 1 DAY 2 DAY 3 DAY 4 DAY 5
PURCHASE ORDER
DELIVERY OF SUPPLIES
LATHE MACHINE
DRILLING
THREADING
CLEANING
Fig. 2.32
Toggle Plate
Upon receiving the order from the consumer, they will also demand to the supplier the
raw material (cut metal with a weight of 45 kg.) needed for manufacturing. It will take two (2) to
three (3) days to pick the material and another two (2) days in lathe machine. Next is drilling,
threading and cleaning for finalizing the product and ready to deliver or picked by the customer.
2.4 Machine and Equipment
NAME DESCRIPTION
1. Lathe A lathe is a tool that rotates the work piece on its axis to perform
Machine various operations such as cutting, sanding, knurling, drilling, or
deformation, facing, turning, with tools that are applied to the work
piece to create an object with symmetry about an axis of rotation.
2. Hydraulic A device (see machine press) using a hydraulic cylinder to
Press generate a compressive force.
3. Drilling a tool used for drilling holes in various types of wood, plastic and
Machine metal.
4. Ruler a straight strip or cylinder of plastic, wood, metal, or other rigid
material, typically marked at regular intervals, to draw straight lines
or measure distances.
5. Compass an instrument for drawing circles and arcs and measuring
distances between points, consisting of two arms linked by a
movable joint, one arm ending in a point and the other usually
carrying a pencil or pen.
6. Tri- a woodworking or a metalworking tool used for marking and
square measuring a piece of wood.
7. Hand Used to clean tube holes.
tops
8. Pincers a tool made of two pieces of metal bearing blunt concave jaws that
are arranged like the blades of scissors, used for gripping and
pulling things.
9. Flat pile a cylindrical or flat member of wood, steel, concrete, etc., often
tapered or pointed at the lower end, hammered vertically into soil to
form part of a foundation
10. Flap disk a round, thin, flat plate coated with a magnetic substance on which
data for a computer is stored.
11. Screw a tool with a flattened, cross-shaped, or star-shaped tip that fits into
Drivers the head of a screw to turn it.
12. Wrench a tool used to provide grip and mechanical advantage in applying
torque to turn objectsusually rotary fasteners, such as nuts and
boltsor keep them from turning.
13. Pliers pincers with parallel, flat, and typically serrated surfaces, used
chiefly for gripping small objects or bending wire.
14. Long cutting and holding pliers used by artisans, jeweler designers,
nose electricians, network engineers and other tradesmen to bend, re-
position and snip wire.
15. Steel originally and principally made for cutting metal.
saw
16. Hammer a tool with a heavy metal head mounted at right angles at the end
of a handle, used for jobs such as breaking things and driving in

nails.
17. Welding a fabrication or sculptural process that joins materials, usually
machine metals or thermoplastics, by causing fusion, which is distinct from
lower temperature metal-joining techniques such as brazing and
soldering, which do not melt the base metal.
18. Allen an L-shaped metal bar with a hexagonal head at each end, used to
keys turn bolts and screws having hexagonal sockets.
19. Motor oil any of various substances (comprising oil enhanced with additives,
for example, in many cases, extreme pressure additives) that are
used for lubrication of internal combustion engines.
2.5 Calibration (Machine, Tools and Equipment)
Calibration is the process of checking machines and making sure that values used in
measurements remain at standard points. It is the process of verifying a machines work and
performance within a set of specifications. It allows for faster processes and of course with
lesser errors and mistakes. During calibration, it is also important to make sure that the
measurements taken during the period is also valid. Remember that whatever values that you
have gotten during the calibration process are the values that are accepted to be the most
accurate and precise.
Subsequently, Argel Metal Fabrication doesnt use a specific standard in calibrating their
machines, tools and equipment. As a small business that manufactures products in just-in-time,
they just use the machineries when needed. Per the entity, since 2009 (which they bought the
second-hand machines: lathe and drilling), it didnt breakdown or cause a delay in
manufacturing.
2.6 Man Loading (Personnel Work Schedules)
The entire business operations offer General Machine Job, Gear Making, Fabrication of
Parts for Industrial Machine, Fabricator of Parts of Material Equipment, Welding Job (Stainless,
Bronze, Aluminum, Cast Iron, etc.), Fabrication of Rubber, Engineering Plastic material Parts,
Marine Parts Repair and Fabrication, Bottling Plants Machine Repair and Fabrication, and
Components Fabricator Hydraulic Repair and Services.
Meanwhile, the owner is the sole permanent worker of the operations. Thus, personnel
work schedule is deemed to only revolve in his subsistence. With the business hour, eight in the
morning until five oclock in the afternoon (8AM-5PM) all through Mondays to Saturdays, the
owner accepts and renders services. Depending on the demand of the customer, he also works
every Sunday. However, if the work needs assistance, his son works as a part-timer. Moreover,
during delivery of output (if needed to be delivered), the owner simply hire a tricycle and the
driver (no specific person) for a certain delivery engagement.
2.7 Production Process Flow Chart
First Phase
Customer Order
The First Phase of the
production process consist the major
external engagement of the business

Purchase Order
of Supplies
operations which include the supplier
and customer. In Customer Order, the
customer places the order with the

Delivery/Pick Up
of Supplies layout request (with written or oral
detail of plan, if needed). Subsequently,
the owner will list down the purchase order for
the supplies. Afterwards the supplies will be in Lathe Machine
the possession, in the case of Argel Metal
Fabrication, the supplies are pick up at Binondo
Manila from various suppliers. Drilling
Second Phase
Accordingly, the second phase consists of

Threading
stages in the actual machine process. Usually in
most orders, raw materials are performed in Lathe Machine first, since work piece need to be
cut and deformed and such for specific measurement to create an object with symmetry.
Sometimes, work piece needs hydraulic press, drilling, and threading to crate holes for metal.
Moreover, before proceeding to the final stage, the product will be tested for quality control.
Third and Final Phase

Cleaning
The Third and Final of the
process is mainly for finalizing the
product and ready to deliver or picked Packaging/Finishing
by the customer. However this is also
the stage for customer satisfaction
feedback for quality control. Delivery/Pick Up by

Customer
2.8 Quality Control
To ensure quality and customer satisfaction in provided service, Argel Metal Fabrication
is hands on in every order. Moreover, prior to delivery or pick up, the customer gives feedback
whether the output is satisfactory, otherwise they will rework the finished good. Rework will be
based on customer and owner agreement. With that being said, the quality of output of Argel
Metal Fabrication is proven by the patronizing clients, nonetheless whether small or big
companies.
2.9 Health and Safety
With toxic smell of metal, the owner uses protective measures (i.e.mask) during the
production process. However, with the machine banning the user from wearing gloves for
preservation, the owner see to it that no accessory in hands are present, for safety purposes.
Moreover, in case of fire, the owner equipped the facility with fire extinguishers and
water access located in various areas in order to minimize casualties. With that being said,
Argel Metal Fabrication was granted Fire Inspection Certificate for Business Operation.
CHAPTER 3: WAREHOUSING MANAGEMENT
3.1 Inventory Control
Since the entity employs a Just-In-Time production, most materials are procured after
each order of the client. The materials are bought in volumes that are just enough for the each
order. Any excess would be considered as by-products and is sold to local junkshops.
3.2 Receiving and Releasing of Items (Policy)
The materials are ordered and picked up at the suppliers store. Most often than not is in
Seno Hardware Binondo branch. The final outputs are either picked at the shop, especially the
ones that are large in sizes, or delivered to the client. The released items would have repair
service if needed, and reworking is offered if the clients are not satisfied with the final output.
CHAPTER 4: FINISHED PRODUCT
4.1 Quality
The products produced can be classified as of good quality. In manufacturing bolts and
pins, the entity goes to a place where metal produce undergoes hardening to make them
stronger and less prone damages and rust.
4.2 Classification/Product Acceptability
Products completed by the unit are satisfactory. Due to expertise and cautious handling
of manufacturing the ordered outputs, there are no reported incidents that the products were
disapproved by the client. The owner bears in mind all the time the costs he has incurred in
finishing the product. And, he tests out carefully the product with the use of his senses as well
as if there are available deficiencies with the result; he does his best to give an aid to it. The
categorization that can be associated with what the entity employs is classifying the jobs based
on the client that ordered the particular job enclosed with it are the costs incurred to produce
them and its corresponding date of delivery. The registers of products already completed by the
entity are the following: Bushing, Plastic Washer or Plastic Roller, Toggle Plate and Seat, Gears,
Bolt, Spacer, Shafting, Fan, Piston ring, Toggle Pattern (wood) and pulley.
4.3 Quantity (Volume)
As mentioned earlier, the unit is a small manufacturing entity that doesnt have the
capacity to approve a lot of job in an exact day wherein having the same deadlines. The
quantity of work they accept depends on the days that they can accomplish an ordered job.
Since different works are accepted by the proprietor, the number of days involved in producing
them is different too. If two orders of toggle seat are required by the client for 13 days then it will
be negotiated, it is because it requires maximum of 72 hours to receive the material and 5 days
to finish a unit of toggle seat. Circumstances are observed before having an agreement with the
customer in order to avoid mistrust between their relationships; simply, containing capacity
planning in their operation.
4.4 Packaging
Output that is ready for deliver is wrapped up with Croco Cling Wrap. This is to avoid
abrasion upon loading and unloading the finished product in the delivery stage. The products
are preserved as it was after it undergone the course of actions. So that, there will be no
problems to be encountered between their transaction. A damaged product reduces the pay the
entity will receive. Worst case scenario is that they might return the output to be reworked again,
which means the cost to be incurred, will be under the direction of the proprietor. Added to this,
the alternative materials that support the plastic wrap in packaging the product is either box,
tapes and clear polly bag in bigger sizes, all of the packing materials is accepted in their
business. From time to time, carton, papers, tapes and other plastics are used to protect the
finished product. Below are the samples of packaged goods.
4.5 Logistics / Delivery
The entity rents a tricycle or L300 van in delivering their products; Tricycle for undersized
outputs and van for outsized outputs. Most of the large projects are picked up by the customer.
Among those companies are named Electa, Grand Power, Red Cargo and Benedicto Steel. The
flow of the product is illustrated using the chart (Fig. 4.5) below. The supplies used by the entity
arrived from its own supplier. Afterwards, when the goods are processed and finished before
now it will either be under the distributor or a manufacturing company who will further use the
output of the fabricator in his own product. And then, retailers will appear before the users take
hold of the final output in the chain.
Fig. 4.5
REFERENCES
Rante, G. A. (2016). Cost Accounting. Mandaluyong, Philippines: Millenium Books, Inc.
Stevenson, W. J & Chuong, S. C. (2014). Operations Management. (2nd ed.) McGraw-

Hill Education.
durability. (n.d.) American Heritage Dictionary of the English Language, Fifth Edition.
(2011). Retrieved February 8 2017 from http://www.thefreedictionary.com/durability
Valencia, C. (2016). Manufacturing sector turns around with 8.4% growth in February.
Retrieved from http://www.philstar.com/business/2016/04/13/1572204/manufacturing-sector-
turns-around-8.4-growth-february
Mahdjoubi, D. (2009). Four Types of R&D. Retrieved from

http://www.uis.no/getfile.php/Forskning/Senter%20for%20Innovasjonsforskning/Presentation%2
0Four%20Types%20of%20R%26D%20Darius.pdf
Titan Supertools (2009). Retrieved from https://www.olx.ph/item/50-ton-hydraulic-shop-

press-machine-with-gauge-ID7mhcZ.html?h=4bc86ba073
APPENDICES
APPENDICES
|| Hydraulic DRILLING
Press MACHINE ||
|| LATHE
MACHINE
APPENDICES
||Proctective FIRE
gear EXTINGUISHER ||
|| HAND ANGLE GRINDER & ||

TOOLS
|| MEASURING TOGGLE
TOOLS SEAT ||

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NATIONAL UNIVERSITY

COLLEGE OF BUSINESS AND

ARGEL METAL FABRICATION

Galban, Donna Silayan M.

Mr. Rainier David A. Tayurang

of Gantang. It is acknowledged as a sole proprietor business located at Sampaloc, City of

from Mondays until Saturdays from 8 am to 5 pm.

CHAPTER 1: RAW MATERIALS

1.2 Timeliness of Delivering or on Time Delivery

1.3 Quality Assurance

period, as by avoiding or overcoming injuries (freedictionary). On the other hand, Aesthetics

intended use of the ordered product.

CHAPTER 2: MANUFACTURING PROCESS

2.1 Design, Research and Development

of accepting diverse and incredibly latest orders. The above reality is

acknowledged through verifying the following dealings taken by the

metal fabricator entity. In the research section, the owner of the

previously mentioned business is definitely not only a well-informed

manufacturer but also a service provider; in unoccupied days of the

proprietor, providing services in large manufacturing company such as Benedicto Steel

production which leads to new products for the market.

Consequently, the reverse design is the opposite of forward design.

Reverse design is used in bigger amount than forward since it is

trial and error which requires money to be spent in a single try.

Reverse design had been so helpful to ARGEL Metal Fabrication;

since the majority of large machineries are unaffordable with the

2.3 Production Schedules

production schedules are shown below:

DAY 1 DAY 2 DAY 3 DAY 4 DAY 5 DAY 6 DAY 7

DAY 1 DAY 2 DAY 3 DAY 4 DAY 5

2.4 Machine and Equipment

of a handle, used for jobs such as breaking things and driving in

2.5 Calibration (Machine, Tools and Equipment)

accurate and precise.

second-hand machines: lathe and drilling), it didnt breakdown or cause a delay in

2.6 Man Loading (Personnel Work Schedules)

Components Fabricator Hydraulic Repair and Services.

driver (no specific person) for a certain delivery engagement.

2.7 Production Process Flow Chart

production process consist the major

external engagement of the business

and customer. In Customer Order, the

customer places the order with the

detail of plan, if needed). Subsequently,

the owner will list down the purchase order for

the supplies. Afterwards the supplies will be in Lathe Machine

the possession, in the case of Argel Metal

Fabrication, the supplies are pick up at Binondo

Manila from various suppliers. Drilling

Accordingly, the second phase consists of

Third and Final Phase

The Third and Final of the

process is mainly for finalizing the

product and ready to deliver or picked Packaging/Finishing

by the customer. However this is also

the stage for customer satisfaction

feedback for quality control. Delivery/Pick Up by

2.8 Quality Control

2.9 Health and Safety

CHAPTER 3: WAREHOUSING MANAGEMENT

3.1 Inventory Control

3.2 Receiving and Releasing of Items (Policy)

CHAPTER 4: FINISHED PRODUCT

stronger and less prone damages and rust.