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)

Email Address: ami_arvinl@ymail.com

Name: Engr. Gemmo Garcia

Occupation: Plant Operations Manager (Jotun Philippines Inc.)

Address: Central Luzon, Philippines