Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF ENGINEERING
Department of Industrial Engineering

CE VISION
The College of Engineering envisions itself to
be center of excellence in engineering
education.

ENGINEERING VALUES AND ETHICS

CE MISSION
The College of Engineering is committed to
produce competitive engineers who will serve as
catalyst for sustainable growth and development
in national and international levels.

CE GOALS
1.
Provide Quality education through
instruction, advance research and extension
services:
2 Produce world-class professionals as potential
industry leaders and job providers

CASE STUDY:
Struktura, Inc.

3. Develop and improve facilities through the

use of adapted technology and indigenous
materials and:
4. Maintain, upgrade and improve facilities
through the adaptation of engineering
techniques.
OBJECTIVES
1. Strengthen the BSIE program consistent with
global trends;
2. Develop faculty as competent mentors and
quality researchers, through advanced studies,
and other facets of continuing professional
education;
3. Develop the critical thinking and
communication skills of students, giving
emphasis to research and extension services;
4. Equip graduates with appropriate knowledge
and technical skills imbued with desirable work
attitudes and moral values, through enhanced
teaching/learning process by using multimedia
facilities on top of traditional methods;
5. Create a conducive teaching and learning
atmosphere with emphasis to faculty and
students growth and academic freedom;
6. Establish network with educational
institutions, Industries, GOs and NGOs, local
and international, which could serve as:
a. Funding sources and/or partners of
researches,
b. Sources of new technology,
c. Centers for faculty and students
exchange programs and on-the-job trainings,
and
d. Grantees of scholarships/ additional
facilities and;
7.
Continuously
conduct
action
researches on the needs of laboratory and other
facilities that could be locally produced or
innovated using local materials and adapted
technology.

Prepared by:
.
Janda, Niyel Jay C.

Submitted to:
Dr. Jerilyn Landicho-Pilar
AUGUST 17, 2015
BSIE V-2
A. Y. 2015 - 2016

I.

Timeframe
The context of time of this case study is at 1988, seven years after signing of
contract between the Federal Republic of Germany and the Republic of the
Philippines to develop applications of solar energy.

II.

Background of the Case

Struktura Inc. had been working with the PGSEP for around four years. They
manufactured the best quality steel frames and bases for the panels.
Furthermore, Frank Schneider had high regard for SIs president, Antonio Co.
He had offered Anton to examine the possibility of assembling the SHS units
and marketing them to the Burias community and even the other rural areas
of the Philippines. The introduced technology involved the encapsulation of
the suns rays through panels of PV cells, charging a wet cell battery. The
project also trained a pool of Filipino engineers who are now experts on solar
thermal technologies and installation of solar systems. They have tested
charging stations, poultry incubators, various systems and even larger power
grids. Though it would be deemed feasible if the community was located
within 17 kilometers from an existing conventional power grid. The alternative
was a stand-alone unit for a single household, owning a PV panel, BCU,
battery and DC appliances. This particular application could be an answer to
the Philippines rural electrification needs especially from sparsely populated
areas where line extensions from existing conventional grids were not
economically feasible and they have local companies that could reliably
supplies the needed components. However, PGSEP had a problem: the
project was to be terminated by the end of the year. Unless they could identify
a local group to undertake the project commercially, they were afraid their
efforts to propagate the technology were useless. In fact, there are
communities like Burias, Masbate that indicates willingness to order the
system. Furthermore, they reasoned that a firm with commercial interests in

mind would professionalize the operations. Their contract with the Philippine
government also disallowed tem from commercializing the venture.
Anton Co and his consultant, Bingo Dimalanta, had inspected stand-alone PV
energy generation units. Anton had given the leg work to his consultant and
instructed to study the project and give his recommendations.
III.

Viewpoint
Mr. Anton Co
An entrepreneur and the owner, manager and president of ALCO
Group to which Struktura, Inc. affiliated.

IV.

Statement of the Problem

The problem is the decision whether Anton Co should accept Frank
Schneiders offer. Anton needs to confirm the viability of the said project.

V.

Areas of Consideration
The areas to be considered are analyzed by utilizing SWOT Analysis.

Opportunities

Strength

They manufacture best

quality steel frames and
panel bases.

Frank Schneider is offering

SI to commercialize SHS
units.

They have foreign

connections.

Their quality work is

impeccable.

People are willing to buy for

its convenience and
environmental-friendliness.

Threats
Weakness
The market will have few
competitors.
The termination of the
The price
of the installation.
project at the end of the
Their main target is year
exclusively for rural areas
Peoples preference over
only.
cheaper options

Peoples adamancy in
changing the traditional
means of power source.

The power of Philippine

Government

VI.

Assumptions
The prospect has no need for assumptions regarding this case study.

VII.

Alternative Courses of Action

1. Accept the offer, serving as the local group to commercialize the project.
Advantages:

It will be an additional source of income.

It will expand the production line of the company.

It will promote utilization of environmental-friendly products.

Disadvantages:

It will need additional capital investment

It requires more effort in advertising due to its small market size.

2. Maintain the current operation and the status quo of the ALCO Group.
Advantages:

Free from risk and further cost

Can concentrate more on current production line.

Disadvantages

VIII.

Company would be less competitive.

Loss of the opportunity.

Conclusion and Recommendation

It is recommended to follow the first alternative course of action, to serve as

the local group that would commercialize the said project. Based on the data
provided, 92% of the total 72% of the population in Burias Island is willing to
purchase the system. Moreover, Burias Island population increase by 2.4%
every year may increase at the same rate the number of people who will want
to avail and need the generator units. Most of them are willing to shift to solar
energy system because it is economical in the long run and convenient to
use. Of course, potential customers and statistics of unelectrified in the
Philippines displays a possible share in the market in the country especially
that

there

are

no

major

direct

and

indirect

competitors. As

per

recommendation, commercialization of the Solar Home System is beneficial

for both the people in rural areas and the local group who would
commercialize.
To make sure of the viability of the project, conducting a feasibility study is
recommended so that it could verify its marketing potential and at the same
time, formulate marketing strategy.
IX.

Action Plan

Activities
Develop a marketing strategy
Prepare for the financial
statements and concerns
Prepare the needed documents
for commercialization
Contact suppliers for the raw
materials and components
Introduce and advertise the
product

Person/Group Responsible
Marketing Dept. c/o Mr. Co
and Dimalanta
Finance Dept. c/o Mr. Co and
Mr. Schneider
Legal Dept.
PPC Dept. c/o Mr. Co
Sales Dept. c/o Mr. Co and Mr.
Schneider

Remarks