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The Globe Construction Company

I.

Point of View
The group decided to have the Presidents point of view for the reason that
he has the highest position in the company and has the authority to finalize
decisions.

II.

Problem Statement
What should the company do in order to improve the process of purchasing
materials for the companys efficiency and effectiveness?

III.

Analysis of Relevant Case Facts

Project managers are the engineers in-charge of construction projects


The company employs 20 project managers
During Mrs. Aquinos presidency competition became more stiff
The purchasing unit is headed by a purchasing manager to whom 15
buyers report
Each buyer is in-charge of purchasing materials for the projects
Increasing projects for the private sectors
Approx. 10M worth of materials are kept in the Central Warehouse
It takes so long (about 2 weeks) before Purchasing reacts to purchase
order
Purchasing Managers unavailability
Central warehouse is far from the Head Office

SWOT ANALYSIS
Opportunities
-Increasing projects for
the private sectors
Strengths
- The company employs
20 project managers
-Project managers are the
engineers in-charge of
construction projects
-Each buyer is in-charge of
purchasing materials for
the projects
-Approx. 10M worth of

-Maintain the existing


purchasing process

Threats
-During Mrs. Aquinos
presidency competition
became more stiff
-Maximize manpower to
improve the purchasing
process

materials are kept in the


Central Warehouse
Weaknesses
-It takes so long (about 2
weeks) before Purchasing
reacts to purchase order
-Purchasing Managers
unavailability
-Central warehouse is far
from the Head Office
- The purchasing unit is
headed by a purchasing
manager to whom 15
buyers report

IV.

-Purchasing manager
should have an
inventory of materials
available at the
warehouse
-Put the purchasing
managers performance
under evaluation
-Reduce distance
between the warehouse
and the head office
-Add purchasing
managers to
accommodate buyers
(purchasing manager :
buyer 1:15 -> 1:5)

-Evaluate the
performance of the
employees involved in the
purchasing process

Formulation and Evaluation of Alternative Solutions to the Identified


Problem
After taking into consideration the different aspects of the general, task and
internal environment of the Globe Construction Company, including the
strengths, weaknesses, opportunities and threats to its management, the group
has identified the following alternative solutions that were used to solve the
identified problem:
Alternative
Solutions
1st Alternative
solution:
Maintain the existing
purchasing process
2nd Alternative
solution: Maximize
manpower to
improve the
purchasing process
3rd Alternative
solution:
Purchasing manager
should have an

Advantages

No additional
work or expense
will be needed

Delays on
project
completion will
be avoided
More projects
will be catered
Organizing will
be more
efficient and
effective

Disadvantages

Delay in project
completion may
affect companys
image

Employees may
ask for a raise

Prone to human
error

inventory of
materials available at
the warehouse
4th Alternative
solution:
Reduce distance
between the
warehouse and the
head office
5th Alternative
solution:
Add purchasing
managers to
accommodate buyers
(purchasing manager
: buyer 1:15 -> 1:5)
6th Alternative
solution:
Evaluate the
performance of the
employees involved
in the purchasing
process
V.

Increased
accessibility to
the available
materials

May be expensive

Waiting time for


PO approval will
decrease

More employees to
pay

Ensure the
employees
competence

Additional work

Decision/Recommendation
The best alternative solution that the group had come up with is to evaluate
the performance of the employees involved in the purchasing process. By doing
this, the company will be able to identify the cause of the delays in the process.
If the problem was seen to be on the employees, we recommend that the
company must replace them with more competent ones.

VI.

Implementation Plan
Who
President

What
Meet with an
evaluator who
is not affiliated
with the
company

When
A week after
the workshop

Where
Presidents
office

Evaluator

Assess the
involved
employees

The very next


day after the
meeting with

On the job site


and main
office

How
Explain to the
evaluator the
current
situation and
what the
evaluator
needs to do
Discreetly
evaluate the
performance of

performance

the president
that will last
for a week

Evaluator

Report the
assessment to
the president

Last day of
assessment

Presidents
office

President

Decision

The very next


workshop or
general
assembly

Conference
room

VII.

the involved
employees
work efficiency
and
effectiveness
Explain the
assessment of
the involved
employees to
the president
Explain the
assessment
done to the
involved
employees and
relay the
decision made

Contingency Plan
If the initial plan fails and the company found out that their employees were
competent enough, they should hire more Purchasing manager to be able to
distribute the work load being shouldered by the lone Purchasing manager. By
doing this, the purchasing process may be more efficient and effective.