National University

College of Business and Accountancy

A production process of
SRC International Panel System Inc.
Presented to the Faculty of
College of Business and Accountancy of
National University, Manila
---------------------------------------------------------------
In Partial Fulfillment of the
Requirements for the Degree of
Bachelor of Science in Accountancy
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Submitted by:

Del Rosario, Jeremiah S.

Mutuc, Christian Dave R.

Saldana, Elinelle D.

Sison, Marianne Louise Q.

Zafe, John Luis I.

Submitted to:

Mr. Ireneo Aguilan

Date
 National University
M.F. Jhocson St. Sampaloc, Manila
College of Business and Accountancy
A.Y. 2nd Semester 2017-2018

CHAPTER 1: RAW MATERIALS

Figure 1.1 Company Logo

SRC International Panel System Inc. offers steel reinforce concrete panels

which is composed of expandable polystyrene sandwiched between smooth

welded wire fabrics. The product is used as interior and exterior load bearing

walls, roofing or flooring when constructing building, house, establishments, etc.

It is known to be as the “future building foundation” as this will provide greater

benefit than traditional hollowblocks. The company uses expandable polystyrene

beads and steel wire as the raw materials when making their product. This

section of the paper will discuss the origin of raw materials, how did the company

employ those materials in their product, quality assurance, and the process of

ordering the raw materials.

By: Del Rosario, Jeremiah Page

Mutuc, Christian Dave ACT151
Saldaña, Elinelle Prof. Ireneo Aguilan
Sison, Marianne Louise
Zafe, John Luis
B.S. Accountancy 2nd Sem A.Y. 2017-2018
 National University
M.F. Jhocson St. Sampaloc, Manila
College of Business and Accountancy
A.Y. 2nd Semester 2017-2018

1.1 ORIGIN OF RAW MATERIALS

The raw materials that the company uses when producing their product

was imported from other country. The expandable polystyrene beads was

came from China and the steel wire was came from Ukraine. According to

Engr. Patricio Bantigue a former production manager in the company, raw

materials are all available here in our country, but the price is too high for

them to avail, that’s why they choses to import those materials from other

countries.

Table 1: SRC International Panel System Inc. raw materials used in

production

RAW MATERIALS DESCRIPTION

Steel Wires This raw material is the main

component of the product. This is

used as the main frame of the

product, it was welded together

50mm apart on both sides. It is

also used as spike to tie the two

frame.
Figure 1.1 Steel Wires

By: Del Rosario, Jeremiah Page

Mutuc, Christian Dave ACT151
Saldaña, Elinelle Prof. Ireneo Aguilan
Sison, Marianne Louise
Zafe, John Luis
B.S. Accountancy 2nd Sem A.Y. 2017-2018
 National University
M.F. Jhocson St. Sampaloc, Manila
College of Business and Accountancy
A.Y. 2nd Semester 2017-2018

Expandable Polystyrene Beads

This is the raw material when

making Styrofoam. The Styrofoam

serves as an insulator for the

panel, it is located in between the

two steel frame. The expandable

polystyrene beads was processed

and molded to become a solid

Figure 1.2 Expandable Polystrene Beads
Styrofoam.

1.2 RAW MATERIALS DELIVERY

According to Engr. Bantigue, even when the raw materials where

coming from other countries, the delivery of it still occurs at a considerable

time. But according also to him, problems are inevitable, there are some

instances wherein the supplier causes delay when delivering the product. As a

remedy, the company practices different policies in order to avoid raw

materials stock out and in order for the production to run smoothly.

By: Del Rosario, Jeremiah Page

Mutuc, Christian Dave ACT151
Saldaña, Elinelle Prof. Ireneo Aguilan
Sison, Marianne Louise
Zafe, John Luis
B.S. Accountancy 2nd Sem A.Y. 2017-2018
 National University
M.F. Jhocson St. Sampaloc, Manila
College of Business and Accountancy
A.Y. 2nd Semester 2017-2018

SRC International Panel System Inc. always keep in mind their goal to

deliver and produce products for customer at a lower cost and at a reasonable

time. Since the price of the raw materials offered locally is too high, the

company was importing materials from other countries and there are some

instances, due to fortuitous event, that the materials were delivered late. In line

with this, the company’s first policy is to practice the concept of Safety Stock in

order to avoid stock-out whenever the supplier encounter some problems

when it comes to material delivery. The Safety Stock is an additional items

held in the inventory in order to reduce the risk of being out of stock. In SRC,

the safety stock is located at their warehouse just beside the manufacturing

plant in order to reduce time of transfer and in order to be accessible when it is

really needed. Another policy is the established connection of the company

with their main supplier allowing the company to have a fixed period of

ordering and receiving of materials, this will help the company to avoid

experiencing stock-out as they have enough knowledge on the flow of raw

materials in the production site. The company also update the supplier’s

condition regularly as safety measure and allows some manager to fly over the

By: Del Rosario, Jeremiah Page

Mutuc, Christian Dave ACT151
Saldaña, Elinelle Prof. Ireneo Aguilan
Sison, Marianne Louise
Zafe, John Luis
B.S. Accountancy 2nd Sem A.Y. 2017-2018
 National University
M.F. Jhocson St. Sampaloc, Manila
College of Business and Accountancy
A.Y. 2nd Semester 2017-2018

particular country to communicate personally with the supplier. Based on Engr.

Bantigue’s statement the timeliness of raw materials delivery was very

important on their company because they manufacture products continuously

and experiencing stock-out is really a great problem for them.

1.3 QUALITY OF RAW MATERIALS

Quality of raw materials really plays a vital role in creating quality

products, it is not just enough that the manufacturing process is smooth it is also

important to consider the standard of raw materials to be use.

Engr. Bantigue said that the quality check for product received is actually

the work of receiving department, but unfortunately the team doesn’t have an

opportunity to have some conversation with anyone in the receiving department.

So Engr. Bantigue just gave us his limited knowledge regarding to how the

receiving department ensures that every raw materials entering the warehouse is

in line with the company’s standard. The main activity to check the quality of the

product is through step by step inspection, the company already established a

set of standard which will serve as the basis of inspection.

By: Del Rosario, Jeremiah Page

Mutuc, Christian Dave ACT151
Saldaña, Elinelle Prof. Ireneo Aguilan
Sison, Marianne Louise
Zafe, John Luis
B.S. Accountancy 2nd Sem A.Y. 2017-2018
 National University
M.F. Jhocson St. Sampaloc, Manila
College of Business and Accountancy
A.Y. 2nd Semester 2017-2018

The company ensures that the human resources behind the inspection

does have an enough knowledge with the process. This policy helps the

company to reduce production of defective products and to avoid rejects.

By: Del Rosario, Jeremiah Page

Mutuc, Christian Dave ACT151
Saldaña, Elinelle Prof. Ireneo Aguilan
Sison, Marianne Louise
Zafe, John Luis
B.S. Accountancy 2nd Sem A.Y. 2017-2018