DE LA SALLE LIPA

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

ELECTRONICS ENGINEERING DEPARTMENT

CASE STUDY

Case 4. BITS AND PIECES INTERNATIONAL CORPORATION:

Little things mean a lot

ENGINEERING MANAGEMENT

SUBMITTED BY:

ARGUELLES, MARIA DANIELA

BASILIO, DENICE LOUICE

GARCIA, RAZIEL

MANALO, ANGELOU DAWN

MERCADO, KARL BENEDICT

VILLAR, KIT

T5B-BS ECE

SUBMITTED TO:

ENGR. OVETTE C. MARCO

COURSE INSTRUCTOR

AUGUST 28, 2019

I. INTRODUCTION

The Bits and Pieces International Corporation (BPIC) is a company that produces
various injection molded plastic products classified as consumer and industrial. The
company appears to be succeeding in its production which is unusual since the
company’s certificate of incorporation has only been approved by the Security and
Exchange Commission four years ago.

The company’s total average sales per month is ₱1,640,000. Moreover, with the
current output levels shown in the case study, the company was declared profitable.
With the analysis of the company’s market potential, the top management considered
expansion along with the new product, the tissue holder. In addition, it was proposed to
hire additional manpower and to improve its facilities.

Engineer Lagayan is a Production Manager at Bits and Pieces International

Corporation. The president, Engineer Reyes, directed the key officers to review the
proposed set-up suggested by the general manager. The problem in the case study is that,
as one of the key officers of BPIC, Engineer Lagayan is contemplating on what credible
points he is going to raise in the meeting.

II. BACKGROUND

In the past four years, Bits and Pieces International Corporation became one
company that succeeds a lot and grows very fast since its certificate of incorporation was
approved. The company appears to be producing products such as various injection
molded plastic products classified as consumer and industrial. Growth has also been part
of the agenda of the company. Additionally, the company operates in two activities -
production of stocks to be sold at the local market and production as a subcontractor.
Gauging from its output levels, the company is declared profitable even though the
company does not maintain a sales force. Considering the analysis of the company’s
market potential, the top management was convinced to consider an expansion.
However, the management still lack sound and well-thought business plan in order to
achieve growth sustainability.

III. ALTERNATIVES

1. The company should accept the proposed organization chart and new positions.

One alternative is to check the proposal that 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 new organizational structure must be
done. Although this alternative can be done due to its advantage that it will smooths the
 work flow in the company. This alternative was not fully considered due to the fact that
this will cause the salary of employees to increase.

2. The company should provide building for offices near the plant or vice versa.

Since the location of BPIC’s office and plant were far from each other, it is better to
build structures in between them. This will help the company obtain faster transaction
with customers although this alternative was not fully considered because building a new
office will cost a lot of money.

3. The company should have and maintain a sales force.

The company should hire a Sales Manager due to the growing number the number of
sales especially with the addition of tissue to the product line. Additionally, the Sales
Manager should work with a team or subordinate members to exercise authority. This
alternative can help the company transact business to their customers much faster and
more efficient but this was not fully considered due to the fact that this will cause the
salary of employees to increase just like first alternative.

IV. PROPOSED SOLUTION

Regarding Engineer Lagayan’s contemplation, the weaknesses should be observed

before raising credible points for the meeting. One of the weaknesses of the company is
that BPIC does not maintain a sales force. If the company does not maintain a sales
force, the company will then have difficulties in dealing with the customers as it
expands. In addition, the location of the plant and the office are far from each other since
the plant is located in Laguna, while the office is located in Makati. It is better to build
structures near each other in order to have faster transactions with customers; however,
it will be costly.

Since it was mentioned that the company does not maintain a sales force, BPIC
should research or the most appropriate and effective way to distribute labor among
employees by planning an organizational structure appropriate for expansion which
includes the new positions and planned provisions of the company. Moreover, there
should be a new hiring of employees in order to fill up the proposed organizational
structure. This is important for the company in order to facilitate the implementation of
plans. In this case, BPIC wants to expand and produce a new product with lack of
employees. Hence, Engineer Lagayan should introduce a critical point wherein the
company should plan an organizational structure before implementing the said proposal.
V. RECOMMENDATIONS

Organizational Structure is very important in one’s company. It helps the company

to have smooth and faster work flow. Due to the fact that the company is growing fast
and even considering an expansion, the proponents decided to recommend a new and
different organizational structure. The figure shown below is the new proposed and
recommended organizational chart.

Moreover, these are the additional recommendations provided by the proponents:

1. The key officers in the company, including Engineer Lagayan, should plan a
new and effective organizational structure to improve workflow.

2. The company should consider and maintain a sales force, from then the
company can transact business to their customers much faster and they can open
more opportunities

VI. REFERENCES

Medina, R. G. (1999). Engineering Management. Manila: Rex Book Store.