Case1.

ALMA ELECTRONICS: Ill Dream of You

Mr. Andy Mallari opened a small shop selling transistor radios in 1979. His store was located at one corner (Genera l Luna St.) of the entire stretch of Burgos Avenue, the main thoroughfare of Cabanatauan City. The demand for electronic parts made him carry a wide assortment of parts that are used in the assembly and maintenance of radios, tape recorders, amplifiers and various related appliances. By 1990, Mr. Mallari was able to save enough money for the purchase of a 300 square meter lot along Del Pilar Street. He constructed a 10 meters x 15 meters two-storey building on the lot. The ground floor is used as his store where sales are made to customers which grew in number month after month. The second floor is used as his residence. Mr. Mallari thinks that he can duplicate his feat in sooner big towns of San Jose City, Gapan and Guimba. He has already started operating his stores in those towns and sales and repair. There are five salesladies in Cabanatuan attending to the various needs of the customers. Those who bring their appliances for repair are served by one of the six technicians. The parts used come from the stocks maintained at the store. Those who purchase parts from the store consist of technicians from the various towns of Nueva Ecija. Sometimes the technicians send someday to do the purchasing of parts. Mr. Mallaris perspective has changed drastically after he met his former classmates Estelito Chan in a class reunion at Araullo University; Mr. Chan has a well-established appliances assembly plant in Manila. He indicated that he did not start big but rather as a subcontractor for a large assembly plant. Slowly, Mr. Chans business picked up until he was able to establish his own factory. Mr. Mallari thinks that he can follow the footsteps of his friend. As he is already 47 years old and his oldest child is about ready to enter college, he thinks this is the best time for him to consider sending his son to an engineering school. His decision will center on which school and which engineering course. He feels that his children are keenly interested in whatever career he will ask them to take. Mr. Mallari has three sons, all belonging to the top ten in their respective classes. He thinks all three have the potentials to help him realize his dream of establishing his own assembly plant. His immediate concern now is to identify the right college courses for his children.

Case Study in Decision Making: R. E. CONSTRUCTION: Its Now or Never

When Engineer Romeo Estabillo finished his Civil Engineering course at Mapua Institute of Technology, he took the board examination and passed it in 1981. Wanting to start independently, he went back to his hometown (Santiago City) to organize his own construction firm. In his first few years of operation, he accepted contracts for the construction of residential houses. As he gained experience, his clients grew in number, and even the most prominent persons in the province of Isabela availed of his services. At the start, he hired two assistants to help him in his daily routine as a contractor. One of the two assistants, Mr. Silvino Santiago, was a third year civil engineering student who had stopped schooling due to financial difficulties. His main task was a draftsman. His duty was to produce all documents relating to the physical requirements of the various contracts entered into by his boss. Among, these documents are the building plan, specifications, bill of materials, building permit, etc. his additional duty was to assist Engineer Estabillo in supervising the foremen and workers at the various construction sites. The second assistant, Mr. Romulo Mamaril, was assigned to coordinate purchasing bookkeeping, and other related administrative activities. At the third year of operations, Engineer Estabillo was already directing operations in his newly constructed office inside his residential compound. By this time, two more female employees were hired to assist in the various tasks performed in the office. By 1994, Engineer Estabillo reviewed his companys payroll. It indicated that he has in his employ six full time civil engineers, two draftsmen, ten administrative personnel, one messenger and one security guard. The foremen and laborers working at the various projects were contractual. By June 1996, Engineer Estabillo felt that business was continuously growing, so he will have to secure the services of four civil engineers on a full-time basis. As he was directly supervising all operations, he now feels that he may not be able to perform his functions effectively if he will push through with the plan. He wants to make a decision, but he is apprehensive. He thinks operations are now more complex that decision-making must be a little scientific. With this thought, he pondered on how he will go about solving the problem.

MOTORBUS COMPANY: Que Sera Sera Engineering Hermogenes Ancheta has just received his appointment paper from his new immediate superior, the Vice President for Operations. He has been promoted from Assistant Manager of the Maintenance Department. After congratulating him, his boss gave him a verbal directive that he should put some order in his department and make it the most effective and efficient manner 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 was promoted as Assistant Manager for Maintenance. The former manager of the department, Engineer Guadencio Inductivo, joined the company since it started operations in 1989. A total of ten buses began playing the Manila-Isabela route. A maintenance unit was put up at the Manila terminal in Sampaloc. Another unit services the Ilagan, Isabela terminal. Each unit has a full-time mechanical and one assistant. When a company bus comes in for repair, the mechanics diagnoses the carious automotive system in the bus and later produce a list of part needing replacement. The mechanic sends the list to Engineer Inductivo, who, in turn, forwards the same to the company accountant for approval of the request. Oftentimes, Engineer Inductivo performs the actual purchasing himself. Later, he sends the purchased item to the mechanics that made the request. The maintenance unit were operating normally unit 40 new buses were procured by the company in 1993. Since then, every maintenance personnel were so busy that they threatened to quit their jobs unless additional mechanics and assistant were recruited. By the end of 1993, each unit has a personnel complement of 5 mechanics and 5 assistants. Even with current developments, the old method of purchasing was no improved. Purchase request started to pile up. Mechanics and drivers began complaining to the VP for Operations about delays in the delivery of needed parts. The VP for Operations immediately sent a note to Engineer Inductivo ordering that problem should be resolved immediately. Engineer Inductivo was hard presses and he could not offer an immediate solution. The next day, Engineer Inductivo informed the VP for Operation that he is requesting for the approval of his application for retirement as he is already 62 years old. The VP forwarded the request to the President with an endorsement justifying the request. On the same day, the request for retirement was approved. The next day, Engineer Ancheta received his appointment papers promoting him to Manager. One day the first things Engineer Abcheta did was to inspect the storage room for parts. He found out that the room was full of an uneven supply of parts. Some parts were of excessive quantities, while some important ones were inadequately stocked. A corner of the rooms contains a big volume of absolute parts. At the end of the day, Engineer 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 the next month, about 100 buses will be servicing the various routes assigned to Motorbus Company. Engineer Ancheta is now mulling over how he will make the operation of his department as efficient and effective as possible.

Case 4: BITS AND PIECS INTERNATIONAL CORPORATION: Little Things Mean a Lot
The Bits and Pieces International Corporation (BPIC) is one company that appears to be succeeding and growth has become a part of its agenda for the next few years. This is quite unusual for a 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 key officers of the company are as follows: President and Chairman of the Board: Engineer Rodrigo Reyes Vice President and General Manager: Engineer Jesus Ualat Corporate Secretary: Mrs. Mildred Salazar Treasurer: Ms. Purita Toquilar Auditor: Ms. Elsa Marzo Engineer Manager: Engineer Silvino Santiago Production Manager: Engineer Severo Lagayan The organizational chart of BPIC is shown in Exhibit: 1. The company, classified as a manufacturing corporation, operates on two activities: 1. Production of stocks to be sold to the local market 2. Production as a subcontractor BPIC does not maintain a sales force. The general manager acts as marketing executive and directly transacts business with customers.

The companys average sales per month are as follows: Product Ball Pen Tips Sputum Cups Grease Cups Bottle Caps PVC Fittings Total Average Sales per Month 340.000 900.000 100.000 100.000 200.000 1640.000

At current output levels, the company was declared profitable. The following financial data were provided: 1. 2. 3. 4. Profit margin (net income/sales) = 32% Return on the total assets (net income/ total assets) = 72% Annual turnover = 1.1 Acid test ratio = 1.05

An 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 three years are as follows: Product Ball Pen Tips Sputum Cups Grease Cups Bottle Caps PVC Fittings Tissue Holder Total Year 1 6M 12 M 12 M 24 M 48 M 48 M 154 M Year2 7M 22 M 13 M 36 M 58 M 58 M 194 M Year3 8M 33 M 14 M 54 M 70 M 70 M 249 M

The company made provisions for improving its facilities including land, building, machinery and equipment. The hiring of additional manpower was also proposed. The following constitute the positions proposed: Position Finance Manager Quality Control and Research And Development Manager Senior Machinist Junior Machinist Helpers 1 1 2 2 Quantity 1

The president ordered the general manger 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. The proposed organizational chart is shown in exhibit 2. Engineer Lagayan is now contemplating on what credible points he is going to raise in the meeting.

KUNDIMAN COMMUNICATION CORPORATION: Mr. Lonely

The Kundiman Communications Corporation (KCC) is a local company with more than 2000 persons in its payroll. The companys top management is composed of the President for Administration. A member of the staff, Engineer Lorenzo de Guzman, an electronics engineering graduate, has just received an order from his immediate superior, the VP for operations, to head the newly built telecommunication facility in Antipolo, Rizal. So far, he is the only company personnel identified with the new facility. He was gicen three months to make the facility operational. Engineer de Guzman appraised that for Antipolo unit to operate, it will require the services of a number of persons skilled in the various activities that will be undertaken. As he has been working with KCC for ten years (five years in the field and five years in the head office), Engineer de Guzman is familiar with many aspects of the firms operation. Some of the supervisors and three of the key officers are his friends. Engineer de Guzman felt that the various training KCC provided him had really prepared him well for the technical aspects of his new job. His exposure to the different units at the head office will also be useful in some ways to the administrative aspects of his position. However, his trainings and experiences have not provided him with the expertise to recruit qualified persons to occupy the various positions that will be created. To begin with, he does not even have information on the number and nature of the positions to be created. As he was inspecting the building in Antipolo where he will hold office, Engineer de Guzman wondered if he could convince top management to transfer some of his acquaintances in the head office to his new assignment. Engineer de Guzman knows that his next promotion will depend much in the success of the new faculty under his direction. He thought that if he could only get right persons, his job would not be too difficult. With this in mind, he pondered on what his first move must be.

Case 6. NORTHERN CONTAINER CORPORATION: Time to Cry

Engineer Godofredo Monsod, Jr., general manager of Northern Container Corporation (NCC), was taken aback by a letter-replay from a prospective new customer (see Exhibit 1). His company has been operating for only five years and is in need of new customers with potentials of doing business with them in a long-term basis. NCC is engaged in the manufacture of general and sanitary tin cans, cooking oil filling facilities, and molds and dies fabrication. Its factory and administrative office is located at Valenzuela, Metro Manila. Since, its first year of operation. Engineer Monsod worked hard to make NCCs operation at full capacity. The companys various departments are manned by a personnel complement of 323, growing by 5 percent annually. The increasing number of employees is a result of the growing patronage of the companys products by customers. Engineer Monsod felt, however, that the company needs one more good customer and their operations will be at full capacity. It was in October 1996 that Engineer Monsod came in contact with the general manager of a newly established company, Mr. Godofredo Tapiador. Engineer Monsod was able to convince Mr. Tapiador to order his tin can requirements from NCC. In January 10, 1997, NCCs production manager informed Engineer Monsod that unless new production orders are received by his department, he will be forced to recommend the lay-off 12 workers in the factory. Five days later, 12 workers were indeed lands off. It was in January 25 that Engineer Monsod through of making a follow-up of the agreement between him and Mr. Tapiador. A letter was sent to Mr. Tapiador on the same da. On January 28, Engineer Monsod read the reply of Mr. Tapiador. After a while, Engineer Monsod composed himself and prepared to think hard about what happened and what possible remedies could be worked out.

Exhibit 1

RED RIBBON MANUFACTURING CORPORATION 1201 Putting Bato Taytay, Rizal 27 January 1997 THE GENERAL MANAGER Northern Container Corporation 1526 Amihan St. Bakod Pare, Valenzuela Metro Manila

Dear Sir: This is in reply to your letter dated January 25, 1997 inquiring about whether we still consider ordering tin cans from your company. Please be informed that since we have placed our order with your marketing department as early as December 1, 1996 and no reply was sent to us, we deemed it wise to deal with another company as late as January 15, 1997. Thank you for your interest and we hope to do business with you under other circumstances.

Yours truly,

GODOFREDO TAPIADOR General Manager

Case 7. BATANGAS POLYTECHNIC COLLEGE: The Morning after

Engineer Felicidad Lazaro, a mechanical engineering graduate of Adamson University, has been operating in the past five years an auto parts supply in Kumintang Ilaya, Batangas City. It is a lucrative business she inherited from her father. Four years ago, she started became a full-time faculty teaching on a part-time basis at the Batangas Polytechnic College. After a year, she became a full-time faculty member of the college of engineering. She attended to her auto parts business after her official hours at the school. Miss Lazaros dedication to her duties earned her the chairmanship of the Mechanical Engineering Department. When her boss, the dean, was offered a good paying job abroad, he resigned. Miss Lazaro was named the new dean of the college of engineering. Miss Lazaro feels that even if she is offered a job anywhere, she cannot accept it because of her concern for her business. This matter her also think that she must take her new job as dean seriously. Miss Lazaros first concern is to recruit well-qualified engineer to fill up the slots left by five faculty members who resigned. An advertisement for the vacancies was made. After a few weeks of waiting, only ten applications were forwarded to her. Nine of the applicants were new graduates and have no job experience of any kind. The tenth applicant is a newly retired government employee with no teaching experience. Miss Lazaro slowly realizes that there are good engineers in the area but they are not attracted by the prospect of teaching engineering subjects. Miss Lazaro is also aware that even those that are currently employed by the school are only waiting for a good job offer other institutions. Miss Lazaro was mildly shocked when her assistant showed her the enrollment statistics of the College of Engineering. In the past five years, a steady 10% increase in the number of students was noted. Last year, there was a 16% increase. Just yesterday, Engineer Lazaro was approached by two engineering professors, one a department chairman, and the other, a senior faculty member. They were requesting for a years leave of absence. Because nobody at the moment could take their place, Engineer Lazaro disapproved their request. Engineer Lazaro was given the information that the two will take jobs in another company on a one-year trial basis. If prospects are good, they will resign from the school.

After having been informed of the disapproval of their request for leave, the two professors filed their irrevocable resignation the next morning. 1. Formulating an immediate solutions to the shortage of teachers in her area of concerns; and 2. Keeping the incumbent ones satisfied with their jobs.

Engineer Lazaro is now contemplating how she will survive this crisis.