Production Scheduling In Reducing Overtime And Overtime Expense At Pamutongan Box Manufacturer

Many manufacturing businesses face high labor costs due to overtime, especially when meeting production quotas. Pamutongan Box Manufacturer a corrugated box producer located in Pamutongan, Jubay, Liloan, Cebu, encountered similar challenges in its Corrugator, Converting, and Extra Process Sections. This study aimed to develop a production scheduling strategy to minimize overtime and associated expenses. Data on production flow, standard task times, workforce distribution, and overtime hours were collected. Lucidchart was used to map workflows, while Microsoft Excel analyzed labor costs and production trends. The study focused on overtime during weekdays and Sundays, employing a quantitative research design. Findings showed the company’s standard work time of 532.68 minutes exceeded the 450-minute workday, causing frequent overtime. The production department logged 7,471 overtime hours, involving an average of 19 workers daily, resulting in ₱552,323.40 in expenses. The average daily output was 12.5 tons, straining workforce capacity. To address this, the study proposed acquiring additional machines and optimizing manpower. A revised production schedule was developed, and a cost-benefit analysis demonstrated significant reductions in overtime and related costs.