James Vincent L.

Tono BSCE 2-A

A Case Study About the MOTORBUS COMPANY: Que Sera Sera

I. INTRODUCTION

Engineer Hermogenes Ancheta has just received his appointment papers from his new
immediate superior, the Vice-President for Operations; he has been promoted from Assistant
Manager to Manager of the Maintenance Department. After congratulating him from his
promotion, his boss gave him a verbal directive that he should put some order in his department
and make and make it work in the most effective and efficient manner as possible.

Engineer Ancheta has just passed the board examination for Mechanical Engineering
when he joined Motorbus Company in 1993. By June 1995, he informed his former classmates at
the University of Santo Tomas that he has promoted as Assistant Manager for the Maintenance
Department in the Motorbus Company ─ a company that started its operations since 1989 where
a total of ten buses began plying the Manila-Isabela route and the maintenance unit were
established in the Manila terminal and in Isabel terminal. Later on, he received his promotion as
soon as Engineer Gaudencio Inductivo requested for his application for retirement to be
approved because he is already in his sixties.

By the time he started his responsibility as the manager of the maintenance department,
he inspects the storage room and he found the uneven supply of parts. Some parts were in
excessive quantities and some important ones were inadequately stocked and the corner room
contains a big volume of obsolete parts.

At the end of the day, Engr. Ancheta was informed by the VP that the company will be
fielding an additional 50 new buses within 30 days. This will mean that by next month, about
100 buses will be servicing the various routes assigned to Motorbus Company. Now, Engineer
Hermogenes Ancheta is facing his department’s predicament of making the operations efficient
and effective.
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II. STATEMENT OF THE PROBLEM

As Engineer Gaudencio Inductivo stepped in his early sixties, the application for his
retirement was also approved by the President. The responsibility he pledged for years will now
be passed to Engineer Hermogenes Ancheta. The promotion of Engr. Ancheta unexpectedly
arrived to him but it is loaded with a parcel of burden from the previous management of the
maintenance department.

With the simultaneous forthcoming of additional buses to administer and the appearance
of newly found problem in the maintenance department, how will Engr. Ancheta be able to
resolve each trouble and end up successful?

The questions that are needed to be answered are the following:

1. How can Engr. Hermogenes Ancheta be able to make the operations of his department as
efficient and effective as possible?

2. What actions he needs to undertake in order to improve the old method of purchasing?

3. How will he able to resolve the issues regarding the inadequate supply of the necessary
tools and materials and the excessive and obsolete parts he found in the storage room?
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III. SOLUTIONS AND ADVANTAGES

1. The situation that Engineer Ancheta entered might cause an oppressive feeling for him
because he will handle such operations with the surge of complications everywhere. To
eradicate this kind of problem, Engr. Ancheta is highly advised to invest his time and
ideas in planning and outlining the key points necessary to contemplate. The major goal
of his department is clearly defined and that is to make the operations efficient and
effective. With this sense of direction, he can now able to step up on developing
corresponding strategies and tactics to accomplish the priority he laid down. As he will
be responsible for the maintenance department, he can consider making a hiring plan and
a proposal to hire additional employees to carry out operations since there will be
incoming fifty new buses for his supervision. He should make a balance by adding
workforce and also to avoid conflicts about the heaviness of tasks being shouldered by
the persons in operation. He can initiate a training for the newly hired maintenance
mechanics and assistants. This training will enhance the skills of his members to work
effectively and efficiently and to assure that the service they offer is reliable and safe
from errors. He should ensure that the people under the maintenance department are
aspiring for the goal he set. Engr. Ancheta should also evaluate the performances of his
employees and the quality of their work to establish a stable and successful operations in
his scope of responsibility. In this manner, the verbal directive of his boss about putting
an order in his department and assuring that the operations are effective and efficient as
possible will be met.

2. The old method of purchasing needs to be improved because it was evidently seen from
the previous management that it made complaints and conflicts because purchase
requests were piled up. To avoid this problem to arise, Engr. Ancheta should assign
persons that can be requested to do the purchasing and are readily available as soon as the
approval of purchase request from the company accountant was granted. He must focus
in supervising his department and discard the old method of purchasing. He might lose
track on his responsibility if his time and attention will be divided into purchasing and
James Vincent L. Tono BSCE 2-A

supervising. By this course of action, he can assure that the purchase requests will not
accumulate in his desk and will not be ignored. He should also scrutinize thoroughly if
the requested materials or tools are just precise to what is necessary in order to avoid the
excessive supply to be stocked in the storage room. If he is skeptical about the persons he
assigned, he can request a liquidation statement. In this way, he can carry out his function
while maintaining his credibility and transparency will clear his mind.

3. Upon inspecting the storage room, Engr. Ancheta should make an inventory of the items
or parts. He should evaluate if the parts needed by the maintenance department can be
derived from the stocks present in the room. Once he is finished and the excessive,
inadequate and obsolete parts were determined, he should formulate an idea on where it
will be redirected. Excessive parts can be retained in the storage room for future uses or
can be subjected for selling to retailers.

If he will come up to a conclusion that there are inadequate supplies of the parts needed,
he should prepare a list and make a purchase request to immediately continue the
operations being disrupted by the lack of necessary things to use.

Since obsolete parts have no longer use, it can be pulled out from the storage room and
send it to junks shops that accept these kinds of mechanical parts to save space for the
supplies needed.
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IV. DISADVANTAGES

1. Transitions can be a challenge when ascending to higher positions. Engineer Hermogenes

Ancheta might expend a lot of time and energy to adjust with his current responsibility as
a Manager of the maintenance department. The pressure will increase as he will explore
his tasks. With great planning requires a wide source of information. If he miscalculates
his planning because of limited knowledge, his decisions will be affected and further
complications may seem to rise. Moreover, hiring additional mechanics and assistants
could mean added financial obligations to the Motorbus Company. Looking for skilled
workers is time consuming and trainings need an ample amount of time to mold one’s
skills and knowledge.

2. The newly devised method of purchasing is on the experimental stage. Since it is new,
adjustments are still needed and Engr. Ancheta is expected to do observations if it is
effective compared to the old method of purchasing.

3. If Engr. Ancheta will do an inventory by himself, it will take a toll on his part. It will be
an addition to his tasks but as he is the manager, he should ensure that all areas in his
department are thoroughly inspected. Discrepancies might come as a problem so he
should ask the persons in his department to lend some time on counting and classifying
stocks for the purpose of accuracy and hastening the completion of task.
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V. CONCLUSION

Responsibilities may not come as handy as desired. As for the case of Engr. Hermogenes
Ancheta, his promotion happened with the influx of problems. There are broken systems under
the maintenance department that are needed to be fixed as soon as possible so that operations
will be effective and efficient. With the potential he obtains, his boss appointed and entrusted
him with such crucial position which entails a bigger responsibility.

To meet the goal of the Motorbus Company, he needs to invest in planning. It includes
making strategies and tactics to reach what has been set. He can consider producing a hiring plan
to have a reference while finding for additional mechanics and assistants to be assigned on the
incoming fifty new buses. The option of initiating trainings should be considered to enhance the
skills of the workers and to guarantee that the goal will have a high percentage of attainment. But
he should be careful while formulating plans and gather even specks of information to create a
great one.

Conflicts were prevalent with the implementation of the old method of purchasing.
Developing a new one can give ease to the current situation that Engr. Ancheta is facing. By the
newly devised method where he should assign persons to do the purchasing, he can able to spend
his time in supervising his scope of responsibility and he can be certain that purchase requests
will not accumulate and left neglected. Given that it is on its early stage of implementation, he
should observe if it brings improvement.

The supplies in the storage room are classified as inadequate, excessive and obsolete. If
parts are considered inadequate, he should immediately make a purchase request so that the
operations will continue to move. If there are excessive parts, it can be reserved for future
James Vincent L. Tono BSCE 2-A

purposes or can be sold to retailers. Obsolete parts can be redirected to junk shops to save space
in the storage room.

Engr. Hermogenes Ancheta will now be held accountable of the operations of the
maintenance department. He must be fully equipped to formulate plans on his own while
considering the progress of the company he is serving. He must be flexible to adjust with the
situations in order to deal with much technical problems. With his dedication, he can be an
effective manager as he aspires.
James Vincent L. Tono BSCE 2-A

A Case Study About

BITS AND PIECES INTERNATIONAL COMPANY: Little Things Mean a Lot

I. INTRODUCTION

The Bits and Pieces International Corporation (BPIC) is a company that appears to be
succeeding and constantly chasing growth as an agenda for the next few years. This is considered
as unusual for a company whose certificate of incorporation has only been approved by the
Securities and Exchange Commission (SEC) four years ago.

The company is classified as a manufacturing corporation and known to be producing

various injection molded plastic products. It operates on two activities: production of stocks to be
sold to the local market and production as a subcontractor.

It does maintain a sales force. The general manager acts as marketing executive and
directly transacts business with customers. At current output levels, BPIC was declared
profitable. The top management has seen potential in the company that they considered to have
expansion and it was also decided to add new to the existing line of products, the tissue holder.

The company made provisions for improving its facilities including land, building,
machinery, and equipment. The proposal of hiring additional manpower was also considered.
The president ordered the general manager to prepare an organization chart for the new set up.
For the executive meeting that is scheduled new week, the key officers of the company were
directed to review the proposed set-up and present their comments.
James Vincent L. Tono BSCE 2-A

As the Production Manager, Engineer Lagayan is now contemplating on what credible

points he is going to raise during the meeting.

II. STATEMENT OF THE PROBLEM

Despite of the company’s growth and success in its operations for consecutive years, the
demand to rely on sustainability is still needed. One of the lapses found in the company is the
inconsistent sales force. The expansion and development must be carried out to stabilize the
progress and to maintain its attempts on greater heights.

Engineer Lagayan, as the Production Manager, is one of the persons that is expected to
present well founded and crucial points in the scheduled meeting regarding the proposed set-up.
With the target goals in sales and the overall state of the company, how will he able to give
insights and finish the meeting with a productive discussion?

The questions that are necessary for Engr. Lagayan to pondered upon are:

1. What details about the proposal must be needed to elaborate and how will he able to
support his viewpoints?

2. As a Production Manager of the BPIC, what insights can he provide to maintain the
order in the future operations now that a new product is being proposed?

3. What should he consider to fill the chasm between the opinions that will come out
during the meeting?
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III. SOLUTIONS AND ADVANTAGES

1. Engineer Lagayan must focus on weighing the effectiveness of the entire proposed set-
up. Every detail must be elaborated. He should examine if each position will coordinate
with the other or can bring out the expectations attached to them. He should also ensure
that the organizational chart can largely contribute to the company’s success and can
boost the overall performance of it for the succeeding years. He must reflect that the
structure must serve as a way to reach the organization’s goals.

He should raise his concern to create a product planning committee to evaluate and to
approve the ideas about the tissue holder. This is to guarantee that the concepts on
making the newly added product will be integrated.

The proposed positions still lack necessary persons. Engineer Lagayan can raise a point
about including a sales manager or a marketing executive to supervise the sales of the
company. The expectations of the company are increasing and with the target sales for
the next three years, BPIC needs someone who is knowledgeable about the intricacy of
business transactions. It is also necessary to maintain a sales force where distribution of
products to customers and market will be achieved while ensuring the establishment of
sales territories. As for the proposal of the additional product, the tissue holder, the sales
will also grow in number so officers that will be capable enough to do this obligation are
essential. As an addition, they will also be responsible to maximize profits through
formulating sales strategies that will correspond to customer requirements by promoting
the product. They will also be able to make the sales team efficient in their department.
More importantly, the general manager, who acts as the marketing executive, will be able
to function well if someone will assist with sales matters.
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Another point is assigning subordinates for the Finance Manager and the Quality Control
and Research and Development Manager. The managers need persons to execute their
tasks in their respective departments. If BPIC is on their way on hiring these managers,
might as well they should assign staffs or officers so that they can work appropriately and
effectively.

2. With the potential that the top management can see in the company, the bar was also
raised higher than the previous. The company made provisions for the improvement of
the land, building, machinery and equipment. By the enlargement of the production
volume the company can accommodate, the goal was elevated but as Engineer Lagayan is
the Production Manager, he must realize that it is not all about the facilities but also the
workforce. The quantity of the proposed additional workforce still requires adjustments.
If the company is extending and widening their horizon, they need people to maintain the
operation in an effective and efficient manner. Hiring additional helpers can greatly affect
the production now that an added product is on its way to the production line. It is also
worth mentioning that increase in productivity will have an indication that the revenue
will also increase. Moreover, maintenance of the machinery and equipment must be
followed accordingly to avoid the disruption of the operations and to make sure that it
will run smoothly throughout the manufacturing processes.

3. It is inevitable to encounter people with different viewpoints and ideas. If the key officers
will have a clash of perspectives regarding the agenda and presentations, they should
incorporate each other’s opinions and meet halfway. The vision of the company is a
larger talk and they need to refer to their main goals and objectives. Engineer Lagayan
must compose himself and settle matters in the discussion. He must present his ideas
clearly so that no traces of confusion may appear.
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IV. DISADVANTAGES

1. The organization chart that the general manager prepared may not be as effective as what
the company expects. Engineer Lagayan’s points to be raised on the meeting can have the
possibility that it may not sound viable to the board. He must make a lot of preparations
to support his ideas. It takes enormous amount of time to make a compelling one. He
should research and observe in order to avoid lapses regarding his suggestions or
comments.

2. The addition to the quantity of proposed positions to carry out processes may not be the
most reliable solution to grasp when undergoing expansion. Instead, investing in skills
and development of the existing employees might put an end to the predicament of the
company. Although additional helpers can boost the operations and maintenance of the
machinery and equipment, the financial obligation of the company like salary might rise
first before the profit.

3. Some insights can be hostile to others and might cause conflict. Understanding must be
prioritized to deal with the differences in viewpoints.
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V. CONCLUSION

Business is more on a collaborative output and collective effort of the employees. Each
decision of the key officers is significant to the company. Engineer Lagayan is one of the
managers and he must share ideas towards the proposal for the expansion of BPIC.

Even though the company is exhibiting growth and success in its early years of operation,
sustainability and stability must always be put as a part of the foundation. With the expansion
that the top management decided, there are areas that are needed to include in a bigger picture.

Engineer Lagayan was challenged to prepare the points he needs to present when the
meeting comes. He must raise his concerns especially about making a product planning
committee to conceptualize the newly added product which is the tissue holder. The sales force
must be maintained so having a sales manager or a marketing executive is necessary. Adding
subordinates to the proposed managers should be brought to light. These points are highly
beneficial to the discussion but it must be supported with a sound support from Engineer
Lagayan.

As a Production Manager, Engineer Lagayan must also think about the operations he
ought to administer when expansion is already over. He should balance it by proposing to add
workforce to carry out operations. He can also enhance the skills of the existing employees so
the addition of another might not be an option.

Since they will be having a meeting, varying viewpoints might come out naturally. They
should respect each other’s opinions and settle their collective decision.
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Engineer Lagayan represents one of the pillars of the BPIC. His suggestions will be a
piece of puzzle needed to reach the goal they all want to pursue in creating a well-defined picture
of a lasting success.