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TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES

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

COLLEGE OF ENGINEERING

DEPARTMENT OF CIVIL ENGINEERING

ENGINEERING MANAGEMENT

ASSIGNMENT #8

CASE STUDY

BUENAVISTA ELECTRIC COOPERATIVE, INC.,: Masquerade

Angeles, Timothy Randell

14-205-098

BSCE-3C

Submitted on:

February 23, 2017

Engr. A. Arcibal

Instructor
Right after Engineer Oscar Pascua finished his electrical engineering course at FEATI
University in 1985, he was hired as an employee of the National Electrification Administration
(NEA). He was assigned to handle jobs in the various units of NEA until his promotion to Chief
Planning Officer in 1994. His main function was to supervise the planning activities of his unit.
Three engineers and two other employees reported directly to him. His performance was rated
very satisfactory.

Engineer Pascua attended training sessions of various kinds including those for
management. He finished his M.B.A course in 1995.

When the position of general manager of the Buenavista Electric Cooperative, Inc.
(BECI) became vacant in January 1996, he was nominated by NEA. He got the post in March
1996. Aware of the many problems besetting the cooperative, he immediately went to work.

When Engineer Pascua called the key officers of the cooperative to a meeting, he was
appraised of the following:

1. That the price of electricity charged to BECI's customers is the first highest in the
country.

2. That 25 percent of the electricity service provided by BECI is lost every month and
cannot be accounted for;

3. Requisitions for supplies and materials are served after delays of as long as three
months;

4. Some employees of the cooperative do not report regularly for work;

5. The increasing amount of uncollected accounts.

Three days after the meeting, he recommended to the board of directors the following:

1. The dismissal from the service of employees not regularly reporting for work;

2. Salary increases of up to 20 percent for every employee on the payroll;

3. The hiring of eight additional employees; and

4. The formation of a team to investigate and recommend measures to minimize


"system loss"

All his recommendations were approved by the board, after which Engineer Pascua
signed all the necessary inspections of the activities of the various units of the cooperative.
During the first week of March 1997, he convened the key officers for an evaluation of
the past year's activities. The following points were made clear to him:

1. No reduction in the price of electricity could be extended to BECI's customers


because no reduction in the overall cost of doing business was achieved.

2. Instead of reducing the 25 percent system loss, it even went up to 26 percent.

3. There was no improvement in the requisition of supplies and materials. Delays still
reach three months

4. There is a new set of employees who do not report regularly for work.

5. The amount of uncollected accounts increased from P3.8 million to P4.2 million.

Engineer Pascua concluded that in spite of the granting of salary increases requested by
the rank and file, no subsequent improvement in services was registered. He is now considering
more drastic measures but he is not sure if it is the right thing to do. In addition, he is also aware
that there are some employees who are qualified and dedicated to their jobs.

Problem

 How to reduce product cost?


 How to reduce system loss?
 How to improve the delivery of materials?
 How to get the employees to report regularly?
 How to resolve the uncollected accounts?

Goal

 Reduce the product cost for the customers


 Reduce the system loss.
 Improve the acquirement of the materials.
 Get the employees to report regularly
 Find the reason and resolve the uncollected accounts.
Solutions

 Access the cost of production, personnel and materials.


 Form a new investigation team to access the reason of the system loss but this time be
more hands-on and have them write a detailed report of what needs to be done.
 Find a new supplier where they will deliver the materials on time to prevent any more
delays.
 Make a more work friendly environment, be more hands-on and rules about re porting
regularly to work.
 Form another investigating team to find the reason for the uncollected accounts

Conclusion

Thus in doing this there will be a higher chance of resolving the problems presented. The
main factor in this is being hands-on for the purpose of making sure that employees do their jobs
right and with excellence.