Pert-Cpm and Transportation Problem Technique
CHAPTER I
INTRODUCTION
BACKGROUND OF THE STUDY The IIMMPC is a producer’s cooperative composed of small scale manufacturers from Iligan City and Lanao del Norte. It was organized in 2007 to enable the members to engage in big projects that cannot be done singly by any member cooperators but only through the joint efforts of all the member-cooperators. The members of the cooperative come from the different sectors of manufacturing business. These include the food sector, the gift, toys and housewares (GTH) sector, the bamboo products sector and the furniture sector. 1n 2007, the IIMMPC through the furniture sector participated in the bidding for the supply of various school furnitures for the Department of Education of Region 10. The IIMMPC got the project at the winning bid of about P3,000,000.00. The duration of the project was 90 calendar days. The work was divided by the six furniture makers of the cooperative. In 2008, the IIMMPC again won two projects to supply the school furnitures requirements of DepEd- Region 10 and DepED-Lanao del Norte for a combined amount of about P 6,000,000.00. The work was divided by the seven furniture members of the cooperative (a new furniture maker was added). In 2009, the IIMMPC was able to win three projects – to supply the school furnitures requirements of DepEd- Region 10, DepEd-Lanao del Norte ,and DepEd-Region 7 (Negros, Cebu,Bohol) for a combined amount of about P 9,000,000.00. The work was divided by the eight furniture members of the cooperative with a new furniture maker based in Cebu City was added to help supply the Region 7 project. This study will deal with the use of the quantitative tools of PERT-CPM and Transportation Problem Technique in providing assistance in solving the existing and potential problem of IIMMPC regarding production planning and scheduling and delivery cost minimization.
STATEMENT OF THE PROBLEM With the increasing volume of works and the increasing vista of opportunity, the
INTRODUCTION
BACKGROUND OF THE STUDY The IIMMPC is a producer’s cooperative composed of small scale manufacturers from Iligan City and Lanao del Norte. It was organized in 2007 to enable the members to engage in big projects that cannot be done singly by any member cooperators but only through the joint efforts of all the member-cooperators. The members of the cooperative come from the different sectors of manufacturing business. These include the food sector, the gift, toys and housewares (GTH) sector, the bamboo products sector and the furniture sector. 1n 2007, the IIMMPC through the furniture sector participated in the bidding for the supply of various school furnitures for the Department of Education of Region 10. The IIMMPC got the project at the winning bid of about P3,000,000.00. The duration of the project was 90 calendar days. The work was divided by the six furniture makers of the cooperative. In 2008, the IIMMPC again won two projects to supply the school furnitures requirements of DepEd- Region 10 and DepED-Lanao del Norte for a combined amount of about P 6,000,000.00. The work was divided by the seven furniture members of the cooperative (a new furniture maker was added). In 2009, the IIMMPC was able to win three projects – to supply the school furnitures requirements of DepEd- Region 10, DepEd-Lanao del Norte ,and DepEd-Region 7 (Negros, Cebu,Bohol) for a combined amount of about P 9,000,000.00. The work was divided by the eight furniture members of the cooperative with a new furniture maker based in Cebu City was added to help supply the Region 7 project. This study will deal with the use of the quantitative tools of PERT-CPM and Transportation Problem Technique in providing assistance in solving the existing and potential problem of IIMMPC regarding production planning and scheduling and delivery cost minimization.
STATEMENT OF THE PROBLEM With the increasing volume of works and the increasing vista of opportunity, the