New Era University

No. 9 Central Ave. New Era, Quezon City

College of Engineering and Technology

CASE STUDY ANALYSIS

OPERATION MANAGEMENT
SUBMITTED BY:

Ralph Marwin Corpuz

Ryan Nafuran

Jerome Pascua

Liezl Shienna Geronimo

Jade Manzano

SUBMITTED TO:
Engr. Justin Carlo A. De La Cruz

I. Executive Summary
 Engineer Milagros Abrera was managing the Pretty Dove Development which

holds residential subdivisions in several places. In just two years after she founded

her company, all of the residential lots were able to sell by the company’s marketing

department. However, Engr. Abrera suddenly thought that this marked the peak of the

performance of her company and she worries that her company’s performance will

decline soon. She is thinking about how to delay this inevitable and how to maintain

the performance of her company.

For this problem of Engr. Abrera to be solved, she must able to plan, organize,

and control operations for the product design. The ‘Important Parts of the Productive

Systems’ must be her basis for the new project or design to achieve success.

II. Statement of the Problem

As the Pretty Dove Development Corporation (PDDC) enjoying its good

performances in sales, Engineer Abrera, the general manager, suddenly thought that

this reaping of the company may not last forever and sales may decline. Indeed, in

their meeting, the marketing manager hinted that the company reached its highest

peak and need to form a new product design.

Engineer Abrera is now contemplating upon hearing the suggestion of the

marketing manager. How can she make the company’s current state stable and

prevent the declining. And, what will she raise or fix to the new design-to-make for

upcoming crisis.

III. Causes of the Problem

 The marketing department of PDDC was quickly able to sell the developed

residential lots as they should. Hence, this brought the PDDC to its gracious peak.

Engineer Abrera also thought that there is an over-supply of lots offered for

sales that will possibly the cause of declining of the company’s current state. Then,

there is mistakes in the production process in their former design.

IV. Decision Criteria/Methodology

For Engineer Abrera to accomplish these problems, she must consider the

following criteria:

• Engineer Abrera must able to plan, organize, and control operations for

the product design as these are the ways for the ‘Operation

Managements’, wherein the engineer manager is enhance to be efficient

and effective.

• Engineer Abrera must keep in mind all of the ‘Important Parts of the

Productive Systems’: product design, production planning and

scheduling, purchasing and material management, inventory control,

work flow lay-out and quality control for him to be able to submit and

to do wellin the new design of production.

V. Alternative Courses of Action

Given the criteria which are basis of actions of Engr. Abrera, these are the

alternative courses of action and optionsshe may achieve to solve her problem:

• Engr. Abrera may require another product design and developed

another residential lots.This will assure that somehow the stable state of
 the company will be conserve. However, there is possibility that if product

design is poor, it will not successful.

• Engr. Abrera may undertake forecasting for future sales considering

different factors such as seasonal demand, location, etc.This provides

help for the company to make decision and to less wastages. However, it

is not good to rely hundred percent on forecasting method because it is not

possible to accurately forecast the future.

• Engr. Abrera may require better use of inventory.From this, the

company will be able to control the supplies of lots offered to lessen or

prevent wastages. However, failure to do so appropriately will result to too

much reserves of lots offered which will penalize the PDDC in terms of

high storage cost and other related risks like obsolescence and theft or too

little reserves that may mean lost income opportunities if production

activities are hampered.

• Engr. Abrera may make work-layout or work time-table.This will

benefit the company because this will make the production be arrange and

organize that minimize overall production time and use existing space

most effectively. However, there is possibility that

• Engr. Abrera may require the location to establish the residential lots

is where the demand survey requires it. This will ensure that the

business will hit the market share. However, failure to do so will lead to

declining of the demand for the business.

VI. Implementation and Justification

 With the alternative solutions presented, Engr. Abrera will now implement

actions. For better solutions for the problem of Engineer Abrera she will follow with

these series of steps:

1. After the recent meeting, Engr. Abrera will order the marketing

department to forecast the future sales to be precise in the number of

production they will undertake for the new product design.

2. Then, she will order also to determine the correct locations of raw

lands to be develop to residential lots.

3. After that, she will raise another meeting with key officers after about

figuring the plan for new product design. They will consider talking

about the expenditure for the production.

4. Then, the said plan will forward to the production team then it is ready

for purchasing and materials management.

5. Afterwards, Engr. Abrera will require to the concerns to monitor the

inventory of ins and outs of supplies for the project to prevent

wastages.

VII. References

• Medina, R. Engineering Management. Manila: Rex Bookstore, 1999.