Republic of the Philippines
Nueva Ecija University of Science and Technology
Cabanatuan City, Nueva Ecija
College of Engineering
Civil Engineering Department
CE 323 Engineering Management
Case Study no. 4
Submitted by:
Roger F. Villaruel, Jr.
BSCE 3-C
Case:
Bits and Pieces International Corporation or BPIC is one of the
companies that appear to be the succeeding and the growth has become a
part of its agenda for the next few years. This is quite unusual for a BPIC
company whose certificate of incorporation has only been approved by the
Securities and Exchange Commission four years ago.
BPIC is maintaining an office at Makati Avenue in Makati and a plant at
Sta. Rosa Laguna. The company is producing various injection molded plastic
products classified as consumer and industrial.
The officers of the BPIC Company that consider as a key officers are as
follows:
Engineer Rodrigo Reyes, as President and Chairman of the Board
Engineer Jesus Ualat, as Vice president and a General Manager
Mrs. Mildred Salazar, as a corporate secretary
PuritaToquilar, as a Treasurer of the company
Engineer Silvino Santiago, the engineer manager, and
Engineer SeveroLagayan, the production manager
The BPIC Company classified as a manufacturing corporation and
operates on the two activities:
1. Production of stocks to be sold to the local market
2. Production as a subcontractor
The BPIC in not maintaining a sales force and the general manager
acts as marketing executive and directly transacts business with costumers.
The companys average sales per month are total of 1600php.
At the current output levels, the company was declared profitable. The
following are the financial data provided:
Profit margin (net income/ sales) = 32%
Return on the total assets (net income) = 72 %
Annual turnover = 1.1
Acid test ratio = 1.05
The analysis of the companys market potential convinced the top
management to consider expansion. It was also decided that a new product,
the tissue holder, must be added to its existing line of products. The target
sales for the next year is total of 154Mphp, for the next two years, are
194Mphp, and for the next three years is 249Mphp.
The BPIC Company made provisions for improving its facilities including land,
building, machinery and equipment. The hiring of additional manpower was
also proposed. The position for Finance Manager, Quality control and
research and development manager, senior machinist, junior machinist, and
helpers.
Engineer Rodrigo Reyes ordered Engineer Silvino Santiago a general
manager to prepare an organization chart for the new set up. The key
officers of the company were directed to review the proposed set-up and
present their comments on an executive meeting scheduled next week.
Engineer Lagayan is contemplation on what credible points he is going
to raise in the meeting.
Problem:
What is the most effective organizational structure for the expansion of
the company?
What could be the most appropriate solution to easily distribute the
labor in the company as it expands?
Solutions/Recommendations:
According to Engr. Arvin Chrize Ami, project engineer at Tampengco
Construction Development Corporation, the Bits and International
Corporation or BPIC made the provisions for improving its facilities,
considering the expansion, and to its existing line products to prepare an
organization chart for the new set up, acquiring the various skills in
organizing the technical activities is necessary.
Engr. Garcia also leave a statement about this situation saying that,
When it comes to any business model whose primary value offering is
providing products and/or service to paying customers, there is one universal
truth: no matter how great your project or service is your business will
inevitable fail if you have an inefficient sales process. Whether the sales
process inefficiency lies is training, teamwork, motivation, organization and
use of sales data, or communications with the sales staff and other
departments of the company, these issues have to be addressed if you ever
want your business to grow and thrive.
Conclusion:
I therefore conclude that if Engr. Lagayan, together with the key
officers planned a new and effective organizational structure, then the
company would have better workflow. The proposal needs to be reviewed
first by the key company officers because the general manager might have
some mistakes. If the key officers find it effective then the implementation of
organizational structure must be done. The organizational structure is very
important in the company. It helps the
company to have a smooth workflow. It is recommended to have a different
organizational structure from the suggestion of Engr. Lagayan for the BPIC.
References:
Name: Engr. Arvin Ami
Occupation: Project Engineer (Tampengco Construction Development
Corporation)
Name: Engr. Gemmo Garcia
Occupation: Plant Operations Manager (Jotun Philippines Inc.)
Address: Central Luzon, Philippines
