New Era University

No. 9 Central Ave., New Era, Quezon City

College Of Engineering and Technology

Case Study Analysis 1

ES311 Engineering Management
Sat. 3:00pm-6:00pm

Submitted By:
Group 1
Ralph Marwin Corpuz 11310928
Ryan Nafuran 1312075
Jerome Pascua 1311979
Liezl Shienna Geronimo 1310438
Jade Manzano 1312582

Submitted To:
Engr. Justin Carlo A. Dela Cruz

Date of Submission:
August 15, 2015

I.

Executive Summary
As Engineer Hermogines Ancheta had been promoted from Asst. Manager to Manager of

the Maintenance Department of Motorbus Company, he was bothered by several problems. First,
the uneven supply of purchased parts that some are excessive quantities while some important
ones are inadequately stocked. Engr. Ancheta mulling over how he will perform well as Manager
in addition of 50 new buses that will be fielding within a month, by the next month a total of 100
buses that will Engr. Anchetas maintaining responsibilities.
For uneven supply of purchased parts to be organized, Engr. Ancheta must provide an
inventory of purchased parts every end of the month to lessen the quantities of less necessary
parts and to meet the necessary quantities of important ones. Additionally, to ensure good
condition and safety of buses, Engineer Ancheta must request for additional workers that will
accommodate all of the buses.
II.

Statement of the Problem

With the Engineer Hermogines Ancheta as new appointed manager of the Maintenance

Department he inherits problems from the former manager (Engr. Gaudencio Inductivo). As
Engr. Ancheta inspected the storage room for parts, he found out that there was a full of an
uneven supply of parts wherein there are excessive quantities of less necessary parts than
important ones. At the end of the day, he was informed about fielding an additional 50 new buses
within 30 days. Which, by total there will be 100 buses servicing the various routes assigned to
Motorbus Company.

III.

Causes of the Problem

Its very critical situation for Engr. Hermogenes Ancheta because all of the problems of

the Maintenance Department are lying on his shoulder as well as its future. The maintenance
units were operating normally until 40 new buses were procured by the company in 1993. Since
then, every maintenance personnel was so busy that they threatened to quit their jobs unless
additional mechanics and an assistants were added.
Even with the current development, the old method of purchasing was not improved, and
in result, purchase request started to pile up. Mechanics and drivers began complaining to the
Vice President of the company for the operations about delays in the delivery of needed parts.
IV.
Decision Criteria/Methodology
Motorbus Company facing a problem from lackness of maintenance personnels. When
Engr. Ancheta inspected the storage room for parts and found out that there an uneven and
excessive supplies of parts. With these problems here are the steps for solutions to solve the
Motorbus Company Problem:
1. Hire more mechanics/workers. Engineer Ancheta must request to the company
that there is in need of additional at least 4 mechanics at each 2 units within the
month since in 30 days there will be a total of 100 buses will be operating.
2. Hire Assistant Manager. Engr. Ancheta will make recommendations to the
Company to look for Assistant Manager that will assist him and will check the
orders of supply parts especially controlling and checking the inventory every end
of the month.
3. Make and Properly Handle Inventory. Kenneth Hamlett said that well-defined
inventory control policies can reduce the operational expenses and makes leaner
operations associated with the inventory. It needs inventory as a protection against
uncertainty, for efficient processing of material, and to permit transit and
handling. It is required to Motorbus Company for the supply of orders organize.

V.

Alternative Courses of Action

Alternatives comes up if ever the main plan of action failed to function. These are the list

of alternative courses of action that may serve as an alternative solution to the problem of Engr.
Ancheta:

Divide Management Responsibilities. Keep himself (Engr. Ancheta) as manager,

and point one of the workers to check for the inventory of all the supply orders of
parts.
Advantages: He can manage other important things other than checking
inventories.
Disadvantages: The handling of the inventories may not be effective because of

the inexperienced worker to control such.

Buy only the Important Parts, keep the excessive parts until it is consumed.
Engr. Ancheta will buy the important parts only leaving behind, in the meantime,
the excessive less necessary parts until it is consumed.
Advantage: The Company will no longer troubling for insufficient stocks for
important parts.
Disadvantage: The other parts (excessive parts) may consumed all at sudden

VI.

having no enough stock for it.

Implementation and Justification
As Engineer Ancheta organize the things he need to do, next part is implementing it in

order to solve his problem.

He must request to the President or the Vise President of the Motorbus Company
for hiring of mechanics and workers, within the month the company must have

VII.

produce at least 4 mechanics at each unit (Manila Terminal and Isabela Terminal)
He should also request for his assistant manager that will supervise and handle the

inventory.
Engr. Ancheta must implement to have inventories presented every end of the

month.
References
http://smallbusiness.chron.com/advantages-inventory-control-2228.html
http://onlinesharing.org/essays/Motorbus-2-68379313.html

Medina Roberto, G. (1982). Engineering Management. Rex Bookstore, Inc.