Technological University of the Philippines

Ayala Blvd. cor. San Marcelino St., Ermita, Manila

BES 4 – M
Engineering Management

Case No. 4:
Bits and Pieces International Corporation: Little Things Mean a Lot

Submitted by:
Verzosa, John Daeniel C.
BSCE-3A
TUPM-19-1389

Submitted to:
Engr. Arnolfo Arcibal

Date of Submission:
November 3, 2021
Case 4. Bits and Pieces 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 company’s average sales per month are as follows:
Product Average Sales per Month
Ball Pen Tips ₱ 340.000
Sputum Cups ₱ 900.000
Grease Cups ₱100.000
Bottle Caps ₱100.000
PVC Fittings ₱200.000
Total ₱1640.000
At current output levels, the company was declared profitable.
The following financial data were provided:
1. Profit margin (net income/sales) = 32%
2. Return on the total assets (net income/ total assets) = 72%
3. Annual turnover = 1.1
4. Acid test ratio = 1.05
An analysis of the company’s 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 Year 1 Year2 Year3
Ball Pen Tips ₱6M ₱ 7M ₱ 8M
Sputum Cups ₱ 12 M ₱22 M ₱ 33 M
Grease Cups ₱ 12 M ₱ 13 M ₱ 14 M
Bottle Caps ₱ 24 M ₱ 36 M ₱ 54 M
PVC Fittings ₱ 48 M ₱ 58 M ₱ 70 M
Tissue Holder ₱ 48 M ₱ 58 M ₱ 70 M
Total ₱ 154 M ₱ 194 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 Quantity
Finance Manager 1
Quality Control and Research
And Development Manager 1
Senior Machinist 1
Junior Machinist 2
Helpers 2
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.
Exhibit 1. Bits and Pieces International Corporation Current Organization Chart
Exhibit 2. Bits and Pieces International Corporation Proposed Organization Chart
Case Analysis
Introduction
The process through which managers plan, control, and arrange the aspects of an
organization's internal environment in order to achieve organizational objectives is known
as organizing. Organizing lays the groundwork for achieving an organization's objectives
and goals. Management benefits from a comprehensive approach to organization in a
variety of ways. In order for a firm to run properly and continue to develop, proper
management is essential. Various abilities are required of particular persons who are
allocated to specific roles and are obligated to dictate or guide their employees regarding
the duties they are assigned.
Problem
Bits & Pieces International Corporation (BPIC), an injection molded plastic
products manufacturer, had grown quickly in just four years. Due to the market potential
of their company, they have opted to expand by releasing a new product, the tissue holder.
They will need to update their infrastructure, which includes land, buildings, machinery,
and equipment, as well as more people, in order to do so.
Solution
Bits and Pieces International Corporation is the subject of Case 4. Since the
Certificate of Incorporation was obtained four years ago, it has been a successful and
rapidly developing firm.
They made a variety of plastic injection molded goods. Their plan over the next few
years is to expand their business. The firm is designated as a manufacturing company since
it engages in two activities: product production for the local market and subcontractor
production. The firm is lucrative based on their output levels. And, based on the company's
market potential statistics, it appears that they can increase their operations. They are not,
however, ready to grow.
In instance 4, there are issues, such as what Engineer Lagayan can say in the
executive meeting about the planned set-up given the known knowledge on growth.
Engineer Lagayan, as general manager, must research how effective the new organizational
chart will be and present his findings at the meeting.
The goal of the case is to provide feedback on the new suggested solution, analyze
the proposed organizational chart, and ensure that the firm does not experience excessive
strain while interacting with customers. Finally, as the firm grows, it must adapt to the
changing environment.
Engineer Lagayan should be in charge of overseeing the suggested organization
chart's efficacy and efficiency. It is critical to determine whether the organization chat
would be beneficial to the company's growth. Engineer Lagayan should be aware that the
primary goal of this is to expand the organization, and that this expansion should be
accompanied with standards for individuals or employees to follow. Engineer Lagayan
should investigate the new organization chart's disadvantages and benefits. He must ensure
that the revised chart is still in line with the company's objective and vision.
 When we compare the new organization chart to the present one, we can see that
the new one reflects the company's growth. Having additional positions is critical for
expansion because as we grow, our workload will grow as well. Because the organization
is striving for larger sales, adding a Financial Manager is also crucial. As a result, the
consequence is a rise in production capacity as well as property, construction, machinery,
and equipment. As a result, they will need to hire more workers, such as a Senior Machinist,
Junior Machinist, and Helper, in order to maintain the current ratio of personnel and
productivity. As a result, even if the pace of production is higher, the product's production
is still in good form. If customers see that as the firm grows, the product gets worse, the
growth will fail. It is through this door that Quality Control may enter. It is critical to ensure
that all of the products are of the same high quality.
Conclusion
In conclusion, the new organizational chart is a terrific idea. If the firm's objective
is to extend the entire company, the additional role is required. If they continue to employ
the present organizational chart, this might provide a future concern. It is preferable to
handle a potential problem as soon as feasible rather than dealing with it later. Keep in
mind that increasing the firm equates to better productivity and hence higher profits. High
production, on the other hand, necessitates the addition of additional personnel in order for
the production to sound as good as feasible. As a result, Engineer Lagayan must embrace
this and research the importance of these new jobs in a growing organization.