Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF ENGINEERING
Department of Industrial Engineering

CE VISION
The College of Engineering envisions itself to be
center of excellence in engineering education.
ENGINEERING VALUES AND ETHICS
CE MISSION
The College of Engineering is committed to
produce competitive engineers who will serve as
catalyst for sustainable growth and development
in national and international levels.

CE GOALS
1. Provide Quality education through
instruction, advance research and extension
services:

2 Produce world-class professionals as potential

industry leaders and job providers

3. Develop and improve facilities through the

use of adapted technology and indigenous
materials and: CASE STUDY:
4. Maintain, upgrade and improve facilities
through the adaptation of engineering
techniques. Struktura, Inc.
OBJECTIVES
1. Strengthen the BSIE program consistent with
global trends;
2. Develop faculty as competent mentors and
quality researchers, through advanced studies,
and other facets of continuing professional
education;
3. Develop the critical thinking and
communication skills of students, giving
emphasis to research and extension services;
4. Equip graduates with appropriate knowledge
and technical skills imbued with desirable work
attitudes and moral values, through enhanced
teaching/learning process by using multimedia
facilities on top of traditional methods;
5. Create a conducive teaching and learning
Prepared by:
atmosphere with emphasis to faculty and .
students’ growth and academic freedom;
6. Establish network with educational Janda, Niyel Jay C.
institutions, Industries, GO’s and NGO’s, local
and international, which could serve as:
a. Funding sources and/or partners of
researches,
Submitted to:
b. Sources of new technology, Dr. Jerilyn Landicho-Pilar
c. Centers for faculty and students’ exchange
programs and on-the-job trainings, and

d. Grantees of scholarships/ additional

facilities and;
AUGUST 17, 2015
7. Continuously conduct action researches
on the needs of laboratory and other facilities
that could be locally produced or innovated
BSIE V-2
using local materials and adapted technology. A. Y. 2015 - 2016
I. Timeframe
The context of time of this case study is at 1988, seven years after signing of
contract between the Federal Republic of Germany and the Republic of the
Philippines to develop applications of solar energy.

II. Background of the Case

Struktura Inc. had been working with the PGSEP for around four years. They
manufactured the best quality steel frames and bases for the panels.
Furthermore, Frank Schneider had high regard for SI’s president, Antonio Co.
He had offered Anton to examine the possibility of assembling the SHS units
and marketing them to the Burias community and even the other rural areas of
the Philippines. The introduced technology involved the encapsulation of the
sun’s rays through panels of PV cells, charging a wet cell battery. The project
also trained a pool of Filipino engineers who are now experts on solar thermal
technologies and installation of solar systems. They have tested charging
stations, poultry incubators, various systems and even larger power grids.
Though it would be deemed feasible if the community was located within 17
kilometers from an existing conventional power grid. The alternative was a
stand-alone unit for a single household, owning a PV panel, BCU, battery and
DC appliances. This particular application could be an answer to the
Philippine’s rural electrification needs especially from sparsely populated areas
where line extensions from existing conventional grids were not economically
feasible and they have local companies that could reliably supplies the needed
components. However, PGSEP had a problem: the project was to be
terminated by the end of the year. Unless they could identify a local group to
undertake the project commercially, they were afraid their efforts to propagate
the technology were useless. In fact, there are communities like Burias,
Masbate that indicates willingness to order the system. Furthermore, they
reasoned that a firm with commercial interests in mind would professionalize
 the operations. Their contract with the Philippine government also disallowed
tem from commercializing the venture.
Anton Co and his consultant, Bingo Dimalanta, had inspected stand-alone PV
energy generation units. Anton had given the leg work to his consultant and
instructed to study the project and give his recommendations.

III. Viewpoint
Mr. Anton Co
An entrepreneur and the owner, manager and president of ALCO Group
to which Struktura, Inc. affiliated.

IV. Statement of the Problem

The problem is the decision whether Anton Co should accept Frank
Schneider’s offer. Anton needs to confirm the viability of the said project.

V. Areas of Consideration
The areas to be considered are analyzed by utilizing SWOT Analysis.

Strength Opportunities

 They manufacture best quality  Frank Schneider is offering SI to

steel frames and panel bases. commercialize SHS units.

 They have foreign connections.
 Their quality work is impeccable.
 They have reliable suppliers.
 People are willing to buy for its
convenience and environmental-
friendliness.
 The market will have few
competitors.
 Weakness Threats

 The price of the installation.  The termination of the project at

the end of the year
 Their main target is exclusively for
rural areas only.  People’s preference over cheaper
options

 People’s adamancy in changing

the traditional means of power
source.

 The power of Philippine

Government

VI. Assumptions
The prospect has no need for assumptions regarding this case study.

VII. Alternative Courses of Action

1. Accept the offer, serving as the local group to commercialize the project.
Advantages:
 It will be an additional source of income.
 It will expand the production line of the company.
 It will promote utilization of environmental-friendly products.
Disadvantages:
 It will need additional capital investment
 It requires more effort in advertising due to its small market size.

2. Maintain the current operation and the status quo of the ALCO Group.
Advantages:
 Free from risk and further cost
 Can concentrate more on current production line.
 Disadvantages
 Company would be less competitive.
 Loss of the opportunity.

VIII. Conclusion and Recommendation

It is recommended to follow the first alternative course of action, to serve as the
local group that would commercialize the said project. Based on the data
provided, 92% of the total 72% of the population in Burias Island is willing to
purchase the system. Moreover, Burias Island population increase by 2.4%
every year may increase at the same rate the number of people who will want
to avail and need the generator units. Most of them are willing to shift to solar
energy system because it is economical in the long run and convenient to use.
Of course, potential customers and statistics of unelectrified in the Philippines
displays a possible share in the market in the country especially that there are
no major direct and indirect competitors. As per recommendation,
commercialization of the Solar Home System is beneficial for both the people
in rural areas and the local group who would commercialize.

To make sure of the viability of the project, conducting a feasibility study is

recommended so that it could verify its marketing potential and at the same
time, formulate marketing strategy.

IX. Action Plan

Activities Person/Group Responsible Remarks

Marketing Dept. c/o Mr. Co

Develop a marketing strategy
and Dimalanta
Prepare for the financial Finance Dept. c/o Mr. Co and
statements and concerns Mr. Schneider
Prepare the needed documents
Legal Dept.
for commercialization
Contact suppliers for the raw
PPC Dept. c/o Mr. Co
materials and components
Sales Dept. c/o Mr. Co and
Introduce and advertise the
product Mr. Schneider