BACKGROUND

Siam Cement Group (SCG) is one of the leading conglomerates in

Thailand. SCG is present here in the Philippines through its subsidiaries:
United Pulp and Paper Co., Inc. in SCG Packaging, Mariwasa Siam
Ceramics, SCT Philippines, and CPAC Monier.
UPPC-SCG Packaging is the biggest industrial paper manufacturing in
the Philippines located at Calumpit, Bulacan. They are also the first
Philippine manufacturer of industrial paper to achieve ISO 9002 and FSC
certification.
They uses 100% recycled paper to produce various grades of test liner
board and corrugating medium used in carton packaging products.

Collectors/ Bailing Corrugator/Con

Dumpsite Paper Mill End-users
Junkshop Station verters
 PROCESS FLOW DIAGRAM
Customer

Warehouse Distribution
Receive Customer Order
- From Purchase Order
by Sales / Customer
Services Print Delivery Due List

Check & Receive Production

(Daily Reconcialiation)
Create Picking List & Shipment

X-Trim / Machine Order

Check & Monitor Paper Rolls Prepare Product by Picking List
Movement

Production
Scan Barcode to confirm Batch
Daily Inventory Movement
Split in Picking List

Print Barcode Label for

each Product (PLS)
Quarterly Physical
Inventory Count Control Loading in Truck

Delivery to Customer
Daily Actual Roll Count Post Goods Issue & Print
by Contractor (Hauler)
Delivery Document

Follow-up Customer-Signed
Core Stock in and out to Prod’n
Delivery Document from Contractor
 GRADES OF WASTE PAPER USED
Pre-Consumed (WP from corrugators)
• LDLK (Local Double Lined Kraft)- expensive among all the waste paper received by UPPC. These
cuttings are extremely clean and dry and have high Kraft content.

• Trimmings- It is the die-cut scrap from box-converting operations. It consists of clean sorted
unprinted corrugated cardboard cartons, boxes, and sheet and trimmings.

Post-Consumed (WP from Bailing Stations)

• LOCC (Local Old Corrugated Cartons)- These are cartons which usually came from supermarket.

• Mixed Paper- has the lowest quality of waste paper. It consists of office papers, newspapers,
flyers, magazine etc.

UPPC PAPER MACHINE

• PM1- Produces CM or Corrugating medium only. Accepts LOCC and Mixed Paper.
The usual combination for CM in PM1 is 60% LOCC and 40% MP.

• PM2- Produces TX or Test Liner Excellent, TM or Test Liner Maximum, and CM or

Corrugating Medium. Accepts LDLK, Trimmings and LOCC only.
 PROBLEM STATEMENT

“UPPC have been experiencing decrease in sales volume

because some of their customers have started to get
imported goods since April 2016.”

OBJECTIVE

“To reduce the imports of customers and improve sales volume to

achieve the monthly target set for the whole year (2016).”
 DATA
DAILY SALES STATISTICS 3,185 BALANCE TO HIT DOMESTIC ROLLING TARGET OF 19
As of April 30, 2016 3,185.00 MIN. VOL PER DAY
172 MIN. TRUCKS PER DAY
ORIGINAL % ACTUAL (24) BALANCE TO HIT EXPORT ROLLING TARGET OF 24
SALES VOLUME ACTUAL TARGET VS TARGET
DOMESTIC 16,140 19,500 83% TOTAL ACTUAL REMAINING
NO. OF
EXPORT 48 - 25 24 1
DAYS
TOTAL 16,188 19,500 83% 96% 4%

Rolling Target Actual Sales % vs

Sales Performance
TLB CM ADDTL Total TLB CM ADDTL Total Target

73% Continuum 50 50 35 25 60 120%

Superior Nova 1,520 1,900 3,420 255 1,576 1,831 54%
Master 400 400 402 - 402 101%
Jennson 650 1,000 1,650 896 645 - 1,541 93%
Triple Star 150 600 750 50 700 - 750 100%
Sub-total 2,770 3,500 0 6,270 1,638 2,946 0 4,584
Combox 930 1,920 2,850 430 1,600 - 2,030 71%
85% Malinta 600 600 632 - 632 105%
UCC 300 300 439 - 439 146%
Packlink 350 250 600 223 200 - 423 71%
Central 150 150 - 149 149 99%
Goodyear 200 350 550 193 293 486 88%
Valenzuela 500 1,100 1,600 523 980 1,503 94%
Sub-total 2,880 3,770 0 6,650 2,440 3,222 0 5,662
Twinpack 1,200 1,650 2,850 1,119 1,823 - 2,942 103%
Packagemakers 60 90 150 70 80 150 100%
103%
Sub-total 1,260 1,740 0 3,000 1,189 1,903 0 3,092
85% Greenstone 1,625 200 1,825 1,092 304 1,396 76%
Multipack 800 800 823 - 823 103%
Itrade 20 10 30 21 10 31 103%
Packageworld 600 600 425 - 425 71%
Sunpack 150 150 127 - 127 85%
Sub-total 3,195 210 0 3,405 2,488 314 0 2,802

TOTAL
DOMESTIC 10,105 9,220 0 19,325 7,755 8,385 0 16140 84%
 DATA ANALYSIS

SALES As of APRIL 30, 2016 Sales vs. Target

ACCOUT NAME TARGET ACTUAL SALES
Continuum 50 60 3500
Superior Nova 3420 1831
Master 400 402 3000
Jennson 1650 1541
Triple Star 750 750 2500
Combox 2850 2030
Malinta 600 632 2000
UCC 300 439 MT
Packlink 600 423 1500
Central 150 149
Goodyear 550 486 1000
Valenzuela 1600 1503
Twinpack 2850 2942 500
Packagemakers 150 150
Greenstone 1825 1396 0
Multipack 800 823
Itrade 30 31
Packageworld 600 425
Sunpack 150 127
TOTAL 19500 16140 ACCOUNT NAME
 DATA
DAILY SALES STATISTICS 2,717 BALANCE TO HIT DOMESTIC ROLLING TARGET OF 19
As of May 31, 2016 2,717.00 MIN. VOL PER DAY
147 MIN. TRUCKS PER DAY
ORIGINAL % ACTUAL (24) BALANCE TO HIT EXPORT ROLLING TARGET OF 24
SALES VOLUME ACTUAL TARGET VS TARGET
DOMESTIC 16,608 19,500 85% TOTAL ACTUAL REMAINING
NO. OF
EXPORT 48 - 25 24 1
DAYS
TOTAL 16,656 19,500 85% 96% 4%

Rolling Target Actual Sales % vs

Sales Performance
TLB CM ADDTL Total TLB CM ADDTL Total Target

80% Continuum 50 50 49 19 68 136%

Superior Nova 1,520 1,900 3,420 298 1,760 2,058 60%
Master 400 400 390 - 390 98%
Jennson 650 1,000 1,650 779 980 - 1,759 107%
Triple Star 150 600 750 90 649 - 739 99%
Sub-total 2,770 3,500 0 6,270 1,606 3,408 0 5,014
Combox 930 1,920 2,850 400 1,549 - 1,949 68%
85% Malinta 600 600 599 - 599 100%
UCC 300 300 400 - 400 133%
Packlink 350 250 600 329 240 - 569 95%
Central 150 150 - 139 139 93%
Goodyear 200 350 550 190 305 495 90%
Valenzuela 500 1,100 1,600 505 1,002 1,507 94%
Sub-total 2,880 3,770 0 6,650 2,423 3,235 0 5,658
Twinpack 1,200 1,650 2,850 1,201 1,700 - 2,901 102%
Packagemakers 60 90 150 69 80 149 99%
102%
Sub-total 1,260 1,740 0 3,000 1,270 1,780 0 3,050
93% Greenstone 1,625 200 1,825 1,202 205 1,407 77%
Multipack 800 800 803 - 803 100%
Itrade 20 10 30 19 15 34 113%
Packageworld 600 600 502 - 502 84%
Sunpack 150 150 140 - 140 93%
Sub-total 3,195 210 0 3,405 2,666 220 0 2,886

TOTAL
DOMESTIC 10,105 9,220 0 19,325 7,965 8,643 0 16608 86%
 DATA ANALYSIS

SALES As of May 31,2016

ACCOUT NAME TARGET ACTUAL SALES SALES vs. TARGET
Continuum 50 68
3500
Superior Nova 3420 2058
Master 400 390 3000
Jennson 1650 1759
Triple Star 750 739 2500
Combox 2850 1949
Malinta 600 599 2000
MT

UCC 300 400

1500
Packlink 600 569
Central 150 139
1000
Goodyear 550 495
Valenzuela 1600 1507 500
Twinpack 2850 2901
Packagemakers 150 149 0
Greenstone 1825 1407
Multipack 800 803
Itrade 30 34
Packageworld 600 502
ACCOUNT NAME
Sunpack 150 140
TOTAL 19500 16608
 DATA ANALYSIS

Based from the data gathered, Superior, Jennson, Combox

Valenzuela, Twinpack and Greenstone have higher contribution
on the sales volume.

But, the top accounts who have low actual sales came from
those top contributors. These includes Superior, Combox and
Greenstone that’s why they have a high effect if they decrease in
their volume withdrawal.

Based from the information gathered by sales team, These

three(3) accounts started to get imported Kraft Liner from
foreign competitors.
 FISH BONE DIAGRAM

Kraft Liner has hugher quality but

CustomerImports Customer's Feedback
lower price than TX

Decrease in Price of Customer Quality Complaints

Kraft Liner

Production problems
CM production at PM 2
Decrease in sales of Test
Liner
Test Linerhas higher
price compared to kraft
liner
Low Sales
Volume
Late PO and Late Sizes given

Lower paper quality than UPPC Customer decides when to give

PO and Sizes.

Local Competitors offer lower price

for CM and TL Customer can withdraw
orders anytime
Lower production volume than
UPPC

Local Competitors Contract Terms

 • WHY-WHY ANALYSIS

• WHY does starting from April 2016, UPPC decrease in Sales Volume?
- Customers with higher sales volume starts to import kraft liner.
• WHY did they start to import?
- Foreign competitors starts to offer kraft liner in a lower price?
• WHY did the customers buy kraft liner?
- Kraft Liner has higher quality compared to Test Liner
• WHY did they decrease order in Test Liner?
- Customers have negative feedback on Test Liner.
• WHY they have negative feedback on Test Liner?
- Production on PM2 encountered a lot of shutdown due to process
issue.
• WHY did they encountered process issue?
- CM are produced on PM2 due to high demand.
• Why does CM has higher demand?
- CM has a lower price compared to TL and KL but has good quality
compared to other local competitors.
 REJECTS DATA (YTD)
PM1 rejects PM2 rejects

Defect Reject, MT
Defect Reject, MT
CLS 78.8
CLS 90.2
High cobb 72.3
High Cobb 57.1
Start up 53.6
Start up 5.6
Wrinkle ply 14.0
Wrinkled ply 3.1
Crumpled 13.5
Crumpled 2.1
Low RCT/CMT 10.5
Slack start 8.9
Bad profile 5.9
Low CMT 5.5
Low plybond 4.2
Bad trim 3.9
Underweight 3.9
Overweight 3.7
Color off 3.4
Offsize 3.2
 REJECTS DATA ANALYSIS
100
90
80
70
60
50
40
Defect (PM1)
30
Defect (PM2)
20
10
0

• Based from the rejects data, PM2 showed higher rejects compared to PM1, thus
supporting our answer as to why production on PM2 encountered a lot of shutdown
due to process issue because CM are produced on this Paper Machine
 COST-BENEFIT ANALYSIS
CAUSE EFFECT SOLUTION BENEFITS RECOVERY ADDITONAL COST
The PPD team may come up 2 operators(
Strengthen the PPD team with a new idea on how to PhP15,000
who will conduct a study develop the current process each/month)=
Decrease in Price in Kraft to know the market as to which may lead to a new set 3 months PhP30,000
Liner; Kraft Liner has higher Customer starts to import why Kraft Liner have of product that has a lower (quarterly Additional
Manpower
quality than TX that UPPC Kraft Liner lower price, wherein in value than the current basis study resources
offers ideal, KL should have a liner/KL but has higher proposal) used in study
higher price due to RM quality without (Budget/quart
used; compromising the RM( er=
recycled) used. PhP100,000)
Even though we also have
some low quality papers
that we can offer with
Maintain good
lower price compared to our Per budget
Local competitors can relationship with Meeting with
regular price, but still higher allocation to
Some Customers do not offer their off specs/low customer; if necesarry you accounting ,
compared to local 1 month customer as
need high quality paper quality products with low can proposed rebate just additional time
competitors price, we can per advised by
price to maintain their order with customers
still maintain the target management
volume
volume per customer since
we already build trust with
our clients.
lesser production of CM on
PM2 can reduce quality
issues since shifting of
Lower production volume
CM starts to be produced customer has quality producing from CM to TL has
to atleast maintain good 1 month none none
on PM2 due to high emand complaints higher effect in terms of
quality of paper
cleanliness of TL because
RM used for CM is dirtier
compared to RM used in TL
Not only customer will
benefit but also the
Customers can withdraw
supplier. Even though
their order volume
Review contract terms. customer is supposed to be
anytime they want (even
Meeting with always right, but we should
Contract terms are all in if you have credit terms).
management if changing still think of an idea which 2 weeks none none
favor on customer No penalty is given to
the contract term would will protect the profit of our
them if they go beyond
affect the order qty company without
the dredit days of
compromising the trust of
delivery
our customer and credibility
of the company

Arrange a meeting with lost in profit

the Marketing department due to
Small account cannot
on how we can help the decrease in
fight in the market since
small account to grow; price during
they have low
maybe giving them a new the 1st quarter
consumption and the
project price and (loss depends
price we give them is
increasing the volume In helping them by reduing on the
high
Big accouns have lower they're getting from us the price, they can 3 months discounted
price since they have high can make a win-win eventually start to fight with (quarterly price per
volume order relationship. the big accounts. PO) none account)
END