Revised Thesis Group 4

PATEROS TECHNOLOGICAL COLLEGE
SUPPLY AND PROPERTY INVENTORY MANAGEMENT OF

THE DEPARTMENT OF ENERGY: AN ASSESSMENT
A Thesis proposal Presented to the Department of Office Administration
Executive Class
Submitted by:
Salinas, Roquesa B.
Rendon, Haizel A.
Bordaje, Marianie D.
Caguioa, Michelle B.
Llesis, Lovely D.
Lomibao, Mary Jane V.
Thesis Abstract
TITLE : SUPPLY AND PROPERTY INVENTORY MANAGEMENT OF
THE DEPARTMENT OF ENERGY: AN ASSESSMENT
RESEARCHERS: Salinas, Roquesa

Rendon, Haizel
Bordaje, Marianie
Caguioa, Michelle
Llesis, Lovely
Lomibao, Mary Jane
ADVISER : Dr. Analiza Arcega
DATE : July 17, 2021
SCHOOL : PATEROS TECHNOLOGICAL COLLEGE
Supply and property inventory management holds a vital role for the overall
efficiency of the management control in the organization, however an organization’s
property and inventory management may show symptoms of problems and
challenges rooted in connection with the way it is managed such as high cost of
property and inventory, consistent stock-outs, low rate of inventory turnover, high
amount of obsolete inventory, high amount of working capital and capital assets,
high cost of storage and warehousing, furthermore, in a public sector which is the
focused organization of this study, in addition with the above-mentioned problems, is
the classifications of property and inventory items or materials have considerable
difficulties based on multiple criteria that result to various errors and conflicting
decisions.
To establish an in-depth study, the researchers carried out scholarly
researches from library, surveys and the Internet. This study consisted of 21
respondents who are office employees of the Supply and Property Management
Division (SPMD) of the Department of Energy (DOE) in BGC, Taguig City.
The results of the study found out that the Department of Energy may have
actually applied the implemented rule procedures as prescribed by law at high level,
however evidence of occasionally true on the assessment of supply and property
inventory reveals from difficulty in cooperation between related departments,
operational inefficiency for ordering or stocking items, no benchmarking and
accurate tagging on properties. Moreover in the challenges in the performance of
supply and property inventory management, the data presents occasionally true
from scarcity of common office supplies, obsolete inventories, data mismatch from
actual against the recorded, missing items, insufficient workers or lack of expertise,
property is not used at optimum level without performance evaluation and even lack
of transparency and accountability, more importantly the result of the study showed
usually true in the absence of comprehensive technology management system and
lack of full IT usage. The study also reveals that there is no significant relationship
on all variables of the challenges encountered by the respondents in the
performance of supply and property inventory of the Supply and Property
Management Division of the Department of Energy.

TABLE OF CONTENTS
Title Page--------------------------------------------------------------------------------------i
Abstract----------------------------------------------------------------------------------------ii
Table of contents----------------------------------------------------------------------------iv
Chapter 1 – The problem and its Background
Introduction----------------------------------------------------------------------------------1
Background of the Study-----------------------------------------------------------------2
Statement of the Problem ---------------------------------------------------------------3
Hypothesis of the Study ----------------------------------------------------------------5
Scope and delimitations -----------------------------------------------------------------5
Significance of the Study -----------------------------------------------------------------6
Theoretical Framework ----------------------------------------------------------------8
Conceptual Framework ------------------------------------------------------------------10
Definition of Terms ------------------------------------------------------------------11
Chapter 2 – Related Literature and Studies
Related Literatures------------------------------------------------------------------------14
Related Studies ----------------------------------------------------------------------------22
Reflections -------------------------------------------------------------------------------27
Chapter 3 – Methodology
Research Design-----------------------------------------------------------------------29
Locale of the Study--------------------------------------------------------------------30
Sampling Technique-------------------------------------------------------------------31
Table 1 Frequency and Percentage Distribution according to Sex ----- 37
Table 2 Frequency and Percentage Distribution according to Age ---- 38
Table 3 Frequency and Percentage Distribution according to Educational
Level ----------------------------------------------------------------------------- 39
Table 4 Frequency and Percentage Distribution according to Length of
Service in the Department ------------------------------------------------------------- 39
Research Instrument-------------------------------------------------------------------32
Data gathering procedure-------------------------------------------------------------33
Statistical Treatment of Data
Frequency and Percentage Distribution---------------------------------- 34
Weighted Mean----------------------------------------------------------------- 34
Standard Deviation ------------------------------------------------------------ 35
Chi-square ---------------------------------------------------------------- 36
Chapter 4 – Presentation and Analysis of Data

Table 5 DOE Assessment on Property and Inventory ---------------------- 41
Table 6 Challenges in the Performance of Property and Inventory ------ 44
Table 7 Correlational Result between perceived Implementing Rule
Procedures and the Challenges in Property and
Inventory Management -------------------------------------------------------------- 47
Chapter 5 – Summary, Conclusion and Recommendation
Summary of Findings ----------------------------------------------------------------- 49
Conclusion ------------------------------------------------------------------------------- 42
Recommendation ---------------------------------------------------------------------- 53
References --------------------------------------------------------------------------------------- 56
Appendices -------------------------------------------------------------------------------------- 60
CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
Introduction
In the modern world of organizational management, one of the most equally
important management processes in any entity whether it maybe private or public
entity is the supply and property inventory management and in most government
agencies in the Philippines, the supply and property inventory management which is
considerably left behind in the adoption of the use of technologies and upgrades,
eventually for this process still uses manual practices. In the advent of technological
advancements in the Philippines, most businesses from small to large have been
automating their systems, functions and processes, in recent years the adoption of
integrated business solutions have emerged replacing traditional information
systems. Integrated business solutions connects all departments into one system,
and for today’s business environment, a well-known internet based or web-based
systems are being utilized due to its wide range accessibility using any device as
long as it is connected to the Internet (Chan et al, 2017).
According to the Joint Memorandum Circular No. 2020 dated September 24,
2020, presented the study by the PricewaterhouseCoopers commissioned by the
World Bank upon the request by the Philippine Government in 2018 on asset
registry in the Philippines revealed that there is no available information technology
(IT)-based centralized inventory of assets in most agencies, there is no single
agency handling asset management and registry, there is lack of policies on asset
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management and insurance, there is limited institutional accountability for asset
management and discrepancy on data maintained by the property units vis-à-vis the
books of accounts of certain agencies.
It is noted that an organization’s supply and property inventory management
may show symptoms of problems and challenges rooted in connection with the way
it is managed such as high cost of property and inventory, consistent stock-outs, low
rate of inventory turnover, high amount of obsolete inventory, high amount of
working capital and capital assets, high cost of storage and warehousing (Chan,
2019).
Supply and property inventory management holds a vital role for the overall
efficiency of the management control in the organization and inventory management
is defined as the process of ordering, storing, and using a company’s inventory that
includes the management of raw materials, components, and finished products for
inventories and land, buildings, vehicles, equipment and tools for property
management which also includes warehousing and processing such items according
to Investopedia.com, however the lack of due diligence in placing the best practices
in property and inventory management will lead to an ineffective management such
as duplication of property and inventory systems, mismatch in data entries, lack of
system integration, inadequate staff training on property and inventory practices and
principles and insufficient attention to oversight (Nyaga et al, 2016).
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Background of the Study
In essence on the focus of this study, the Department of Energy (DOE) thru its
Supply and Property Management Division (SPMD) as a national agency, would
have to be in accord to the Republic Act 9470, otherwise known as the National
Archives of the Philippines wherein government offices shall conduct an inventory of
their public record and shall be mandated to keep the following data in their
respective registry and with this, a Joint Memorandum Circular 2015, pursuant to the
Executive Order 47 for Agency Records Inventory System (AGRIS) or a web-based
system for inventory records of office supplies, materials and equipment and the
likes should be utilized, but it is clearly not yet implemented and in today’s
environment according to a study by Tapado and Delluza (2015), in the utilization of
an inventory software that may result to an improved productivity and effectiveness
in the performance of property and inventory management duties of personnel and
would be an input in the decision making of an organization or otherwise not
(Tapado, 2015).
One of the proponents of this study is employed in Commission on Audit (COA)
assigned in the Department of Energy (DOE), and there are audit findings for supply
and properties inventory management of the agency not in accordance with the audit
requirements specifically in the supply and property inventory management of the
management that this is aiming to find out and propose viable recommendations.
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This study aims to assess the supply and property inventory management of
DOE, to find out the significant relationship of perception of the respondents in the
implementing rule procedures and the challenges in the performance of supply and
property inventory management and to proposed a program for the supply and
property inventory management of the DOE.
Statement of the Problem
This study is sought to find out the extent of supply and property inventory
management of the Supply and Property Management Division of the Department of
Energy, as assessed by 21 employees. The results of the study may be used to
provide guidelines in enhancing the management of supply and property inventory at
Department of Energy.
Specifically, it will answer the following research questions:
1. What is the profile of the respondents of the Department of Energy be de-
scribed in terms of:
1.1 age;
1.2 sex;
1.3 highest educational level; and
1.4 length of Service in the Department?
2. What is the effectiveness in assessment on the extend of supply and property
inventory management?
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3. What are the challenges encountered by the respondents in the performance
of supply and property inventory management of the Supply Management
and Property Division of the Department of Energy?
4. Is there a significant relationship between the extent of Supply and Property
Inventory management and the challenges encountered in the performance of
Supply and Property Inventory management?
5. What recommendations may be proposed for the enhancement of supply and
property inventory management of the Department of Energy based on the
findings of the study?
Hypothesis
Ho There IS NO significant relationship between the extent of Supply and Property
Inventory management and the challenges encountered in the performance of
Supply and Property Inventory management.
Scope and Delimitation of the Study
This study covered the assessments of 21 respondents. They were tasked to
assess the extent of Supply and Property Inventory Management in terms of the
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contribution of inventory for organization and availability of enough stockrooms and
warehouses, the inventories storage method and systems, the implementation rule
procedures for supply and property inventory management as prescribe by law in
terms of the audit and physical count of inventories of supply and property assets,
verification of all inventoried items (supplies and property) based on respective
location and the determination of stock of the common office supplies for
identification of data errors, the challenges and practice of inventory management
and property management in the performance of the organization, the disposal of
expired items, and lastly the capability of computer-based system for the property
and inventory management system. This study also explored the relationship
between the study variables on Supply and Property Inventory, and the challenges
encountered by the respondents in the performance of the Supply and Property
Inventory Management.
Significance of the Study
The researcher believed that the study will be great benefit to the following
stakeholders:
DOE Administrators. They will be use the results of this study as a basis to
reinforce the supply and property inventory management currently in place in the
organization. They may also device new methods, computer-based systems and
procedures in supply and property inventory management for the organization.
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DOE Employees. They will benefit from the assessment of the supply and
property inventory management system of the agency by identifying the key
challenges and difficulties and may also provide the administrators of the agency in
the development of an efficient and effective inventory management system.
COA Auditors. They will benefit from this study thru which key indicators of
problems proliferating the supply and property inventory management of the
Department of Energy will be identified and the auditing team will be able to make
recommendations to correct and align inventory errors mismatch.
School Administrators. The Pateros Technological College administrators
will be enlightened on the result of the study with regards to the supply and property
inventory management of a government agency and may likewise use the results of
the study as a basis for the schools inventory management as well.
Teacher. They will also be benefitting from the result of this study for the
development of a new knowledge or validation of concepts in the inventory and
property management system for the public sector.
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Students. They will benefit from the result of the study as an additional
knowledge for supply and property inventory management as one of a key
indicators of a well-managed organization, it processes and underlying concepts.
Researcher/Proponent. They will benefit the result of the entirety of this
study thru which variables identified as challenges, difficulties and problems
encountered of the supply and property inventory management procedures of the
Department of Energy will have been thoroughly investigated, thus clarity of data will
help the proponent of this study.
Conceptual Framework
INPUT
1. Profile of the Re-
spondent in terms
of:
 Age
 Sex
 Highest edu- OUTPUT
cational level PROCESS
 Length of ser- Effectiveness of
vice in the de- 1. Survey Ques- assessment in
partment tionnaire Supply and
2. Assessment on the 2. Descriptive Property Inventory
extent of supply and Statistics Management of
property inventory 3. Inferential the Department of
management. Statistics Energy Towards
3. Challenges in the Agency Records
performance in Inventory System
supply and property
inventory
management
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Figure 1. Research Paradigm
The research paradigm presents the input data for the study from profile of
the respondents, assessment and challenges in the performance in supply and
property inventory management of the Department of Energy supervised by the
Supply and Property Management Division of the department, through the process
of data gathering procedure with the use of survey questionnaire to be processed
using descriptive and inferential statistics to have a thorough assessment of the
inventory and property management of the Department of Energy towards Agency
Records Inventory System( AGRIS).
Definition of Terms
Common Office Supplies – it is a list of common-use-office supplies for
government-wide use as stated in the Government Procurement Policy or the
Administrative Order No. 17(ps-philgeps.gov.ph).
Department of Energy - The Department of Energy of the Philippines which is the
organization focused on this study, as mandated by Republic Act 7638 which is to
prepare, integrate, coordinate, supervise and control all plans, programs, projects
and activities of the government relative to energy exploration, development,
utilization, distribution and conservation and due to this mandate, accuracy of
inventoried data should be evident (source: doe.gov.ph)
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Expired Inventories – also known as obsolete inventory is a term that refers
to inventory that is at the end of its product life cycle (investopedia.com).
Inventories – it is an itemized list of current asset specifically supplies or goods on
hand and or catalog of the property of the government (Merriam-webster.com).
Inventory Management - is also known as an internal control structure for inventory
that protects its assets against theft and waste, ensure compliance with company
policies and laws, evaluate the performance of all personnel to promote efficient
operations and ensure accurate and reliable operating data and accounting reports
(Bragg, 2018).
Inventory Methods – defined as the use of latest IT systems, contracting process,
standardization of inventory management or inventory handling, staff training,
prioritization by senior leadership (Nyaga, 2016).
Property – includes vessels and craft, motor vehicles, machineries, permanent
buildings, properties stored therein (i.e. furniture, fixtures, equipment, supplies and
materials, etch) or in building rented by the government, or properties in transit, the
ownership of which had already passed to the government (coa.gov.ph).
Property Disposal – disposal of property and other assets or inventory held for sale
for all government entities/instrumentalities as prescribe by Commission on Audit
Circular No. 89-296 (gppb.gov.ph).
Property and Supply Management – defined in the Sec 2, P.D. 1445, that “All
resources of the government shall be managed, expended or utilized in accordance
with law and regulation and safeguard against lost or wastage through illegal or
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improper disposition, with a view to ensuring efficiency, economy and effectiveness
in the operation of the government” (coa.gov.ph).
Proponent – a student-researcher under the Bachelor of Science in Office
Administration in Pateros Technological College.
Respondents – employees in the Department of Energy.
Supplies inventory – are stock of supplies that have been bought already but not
yet used or consumed and usually refers to a company's office supplies.
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Chapter 2
REVIEW OF RELATED LITERATURE AND STUDIES
This section aims to highlight articles, journals, dissertations and studies
related to inventory management from private organizations, companies, from small
to medium enterprises and government agencies. This part of the study shows
varying viewpoints of different authors’ works, local and foreign in origin, with their
concurring and opposing stands about the themes in inventory management
protocols.
Property and Inventory Management
According to Hayes (2019), in his article “Inventory Management, publish in
investopedia.com, “A company's inventory is one of its most valuable assets. In
retail, manufacturing, food service and other inventory-intensive sectors, a
company's inputs and finished products are the core of its business”. The company’s
inventories are part of the overall assets, which essentially affects the company’s net
worth (Jane, 2017), because the relationship between the inventory management
and company performance is determined based on inventory days and return on
asset (ROA) analysis (Sohail, 2018), inventory accuracy, lean inventory, and stock
availability has positive and significant impact on efficiency (khan et al, 2019), thus
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inventory is a vital asset, necessary for effective operation of any organization and it
is the key to growing your business is the management ability to manage the chain
of vital inputs that needed to create the product and service (Urissa, 2019),
moreover, the factors on firm’s efficiency included capacity utilization, inventory
accuracy, lean inventory, and stock availability considering inventory accuracy, lean
inventory, and stock availability has positive and significant impact on efficiency,
however, capacity utilization doesn’t seem to affect efficiency hence, the main
indicator of inventory control comes out to be inventory accuracy that allows having
an effective control of the outputs of the different goods (Khan, et al 2019).
Carter (2019) in his article, “How to Implement Effective Inventory
Management Procedures”, stated that inventory management, from beginning to
end, is a process; multiple steps need to be undertaken and documented so that
warehouse’s inventory can be properly overseen and to have an effective inventory
management is to prioritize location and accessibility of warehouses and storage
houses. Warehouses though provides an insight of effective inventory management
but always comes with a cost (Chan, 2019). Most government agencies have no
warehouses of its own due to cost of construction and maintenance, most
warehouses used by government agencies are partnered and lease out to private
companies and concurrently included in the Philippine Development Plan is the
infrastructure for warehouses under the ‘Build-Build-Build’ program catered for
several government agencies due to the increasing government investment to
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improve the nation's infrastructure and rising demand for e-commerce logistics to
meet the consumption requirement of growing population (Gupta, 2019).
According to Hanfield (2020) supply and property inventory management is
supported by supply chain management which is a chain of activities that
organizations that make up the supply chain are linked together through physical
flows or the transformation, movement & storage of goods and materials and
information flows or the various supply chain partners to coordinate their long-term
plans, and to control the day-to-day flow of goods and materials up and down the
supply chain. In another study entitled “Assessing Challenges of Inventory
Management Practice” by Wondmagegn Urgessa Urissa Inventory, the researcher
stated that inventory is a vital asset, necessary for effective operation of any
organization. The key to growing your business is not the strategies, but the people
or the technology because it is the management ability to manage the chain of vital
inputs that needed to create the product and service (Urissa, 2019).
Furthermore, an Inventory control procedures are important because the
valuable items within a company’s inventory are part of the overall assets, which
essentially affects the company’s net worth and purchasing too many items for an
inventory may result in monetary losses if the items cannot be sold for preferred
price while controlling procedures are in place to ensure the company is earning
rather than losing money for inventory items (Jane, 2017).
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Inventory Management System Employed by the Department of Energy
The current property and inventory management system implemented at the
Department of Energy is MS Access, without proper tracking and monitoring of
properties and inventoried items; the department has yet to implement a property
inventory management system (PIMS) that is still under bidding posted in the
departments website on March 11, 2021, this process is very true as per the study A
by the PricewaterhouseCoopers in 2018 on asset registry in the Philippines revealed
that there is no available information technology (IT)-based centralized inventory of
assets in most agencies, there is no single agency handling asset management and
registry, there is lack of policies on asset management and insurance, there is
limited institutional accountability for asset management and discrepancy on data
maintained by the property units vis-à-vis the books of accounts of certain agencies.
By law, the Supply and Property Management Division (SPMD) of Department of
Energy (DOE) have the following objectives and that is; (1) To render a globally
competitive and efficient service to the Filipino people by providing sustainable
energy systems, thus property and inventory management plays a vital role in
fulfilling the said mandate and (2) to keep all properties and stock items intact,
accurate and well accounted for, and recorded properly that should be available
when needed, physically and tallied in the records as well but also because of the
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periodic audit conducted by the Commission on Audit (COA), however in every
organization not only in public sectors, there are challenges or difficulties of the
implementation for all systems to be in place, according to the Official Gazette of the
Philippines published November 24, 2014.
To accord with the law, DOE should have abided with the requirements of the
law as discussed in the preceding statements: In pursuant to the Republic Act 9470,
public policies on Property, Plant & Equipment Inventory Management has been
provided and should be followed such as: To conduct annual physical inventory of
Property, Plant & Equipment pursuant to COA rules, prepare and update Inventory
report to be reconciled with the accounting records. Submit Inventory report certified
by the Inventory Committee to the COA and accounting unit. Determine which of the
equipment are to be disposed. Then proceed to proper disposal procedure pursuant
to COA Rules and Regulations with the following are also the policies on Common
Office Supplies Inventory Management and that is to conduct physical inventory of
Common Office Supplies every semester pursuant to COA Rules, prepare and
update Inventory report to be reconciled with the accounting records, submit
inventory report certified by the Inventory Committee to the COA and Accounting
unit, determine which of the stocks are to be disposed then proceed t proper
disposal procedure pursuant to COA Rules and Regulations, determine which of the
stock levels are low then proceed to the procuring procedure pursuant to the
Provision on the Revised Implementing Rules and Regulations (IRR) of the Republic
Act 9184, according to the Official Gazette of the Philippines published November
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24, 2014 . Furthermore, RA 9184, an Administrative Oder No. 17 it has been
directed to establish an electronic procurement activities to improve the operation of
procurement service and develop a computerized system to manage inventories
with the primary objective of determining and controlling stock levels within the
physical distribution function to balance the need for product availability against the
need for minimizing stock holding and handling costs. This system shall be
connected to the Virtual Store for common-use goods to enable client agencies to
know the stock availability of items that they are ordering, according to the Official
Gazette of the Philippines published November 24, 2014.
Challenges Encountered in the Implementation of Property and Inventory
Management
In a local study of inventory management in a local university in Leyte,
Philippines entitled, “Automated Supplies and Equipment Inventory Management
System Using Barcode Technology for LNU Supply Office” by Quisumbing et al
(2017), The study showed that Leyte Normal University Supply Office is one of the
Offices that caters to the Delivery and Inventory of Supplies and Equipment to its
end users. Due to its numerous transactions, the Supply Office currently
experiences problems in their transactions since all processes are done manually.
Specifically, the generation of reports during the inventory and monitoring of
equipment’s proved to be a great struggle. Using the Descriptive Research Design,
a thorough study of the existing system in recording and monitoring of equipment in
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the supply office was conducted. Results showed that the Supply office is in dire
need of automating their Inventory process to better serve their stakeholders
(Quisumbing, Lowell et al, 2017).
Moreover, if your business is experiencing a combination of the below
symptoms, chances are there is a root connection to the way inventory is managed
for instance, high cost of inventory, consistent stock-outs, low rate of inventory
turnover, high amount of obsolete inventory, high amount of working capital, high
cost of storage and spreadsheet data-entry errors (Chan, 2019). It showed that
inventory management is a challenging problem area in supply chain management
and investigated the effect of various inventory management factors on firm’s
efficiency. Companies need to have inventories in warehouses in order to fulfill
customer demand, meanwhile these inventories have holding costs and this is
frozen fund that can be lost (Sohail, 2018).
In relation to a local study entitled, “Equipment Inventory Management
System” authored by Tapado (2014), the study implicated that an inventory
management systems are mostly developed and implemented in production
companies wherein the raw materials used in manufacturing a product are
inventoried against the number of products developed, and the actual expenditures
made until a finished product is produced (Tapado, et al, 2014).
From a study by Dayday (2013) entitled “Inventory Management System with
Reorder Trigerred SMS Alert”, the research establish that an inventory systems play
a vital role in a business setting because it lessens the time and burden in
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performing inventory of products. The job of monitoring and recording stocks is
considered to be a strenuous activity, by which computer and software come in
order to alleviate the work. With the advent of different computer technologies,
computer systems driven by human intervention speeds up the process and
increase efficiency (Dayday et al, 2013).
In a study by Islam (2019) on inventory management efficiency analysis on a
market leader in heavy equipment spare parts industry, have examined the factors
that affect inventory mismanagement examples are slow-moving stocks, delivery
delays to customers, and so forth. Those problems, at the end, may reduce
company’s profit. In order to determine the main factors, the research findings
suggest that the disintegrated company’s information system and lack of qualified
human resources are the main factors affect inefficient inventory management. Islam
(2019) research benefits the industry by suggesting the importance of information
systems and human resources to inventory management (Islam et al, 2019).
In an article entitled, “Ten Actions to Improve Inventory Management in
Government” by Nyaga et al (2016), the author mentioned that, ineffective
management of inventory has major implications on both cost and service delivery”.
In particular, “inventory shortages undermine service delivery while excess inventory
leads to increased costs. Thus, a key objective of inventory management is to
ensure that an appropriate amount of inventory is available to meet set service
levels while keeping costs at a minimum. In the healthcare sector where the focus
tends to be more on inventory availability, not cost, there is excess inventory
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accumulation resulting in very high inventory costs and other inefficiencies (Nyaga et
al, 2016).
According to a diagnostic study in public sector on inventory management of
the Brazilian public warehouses by Scheidegger et al (2014), the researchers have
proposal of materials classification using utility theory and ABC curve and identified
that the public sector has numerous peculiarities, whether organizational or
behavioral, compared with the private sector. Such characteristics make it difficult to
improve processes in the sector and corroborate to the inefficiency and long lead
times observed. Moreover, as noted in the object of study and indicated by Santos
(2006), despite the recent modernization of the sector, it still needs more efficient
management models. Thus, the adoption of management techniques from the
private sector can bring positive results to the processes. But at the same time, it is
important to emphasize the need to adapt these techniques to the reality of the
public organizations. (Scheidegger, Anna Paula Galvao et al, 2014).
Synthesis
With several challenges accustomed to the supply and property inventory
management, the best practice is to use a web-based integrated property and
inventory management using ABC classifications methods and adoption of the
private sector processes of handling property and inventories (Scheidegger et al,
2014), the factors that affect inventory mismanagement examples are slow-moving
stocks, delivery delays to customers, and so forth (Islam, 2019), thus
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computerization is one of the strategy that may reduce the challenges in supply and
property inventory management but comes with a cost (Tapado et al, 2014). The
difference between the related studies to the proponents’ thesis is that this study
focuses on its assessment on a government entity’s property and inventory
management systems primarily to that of the Department of Energy in the
Philippines which is the first time that a study of this theme has been used for the
said national government agency, since most related studies are concentrated on
private companies and other governmental agencies.
From mere recording of items of inventory being purchased to actual receipt
and placing to stock rooms and or warehouses, to re-ordering point, the procedures
of inventory varies from one organization to another, yet despite of systems in place
or even policies and protocols, whether it may be a computer based systems, there
are lapses and problems, such as tracking of inventory, mismatch from system to
the recorded item and also to the physical appearance or unit, missing items,
inaccuracy of data or worst human error (Sohail, 2018). Yet still every research may
be a case to case depending on the type of organization, culture and identity, and it
is more challenging if it is a public or government agency, where budget is
constrained and governed by laws of procurement (Dayday, 2013), furthermore,
warehousing provides an insight of effective inventory management but also always
comes with high cost (Chan, 2019).
In various government agencies identified several best practices, those were
that have been successfully used in the private sector to reduce inventory levels and
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logistics costs. In general, these practices provide inventory users with a capability
to order supplies as they are needed and then delivering those items directly to the
customer within hours after the order is placed. Ordering supplies only as they are
needed, combined with quick logistics response times, enable companies to reduce
or eliminate inventory levels, buy only the items that are currently needed, reduce or
eliminate the possibility of inventory spoilage or obsolescence, and reduce overall
supply system costs. In a study for governmental agencies, the lack of ability to
adjust is difficult from ordering, purchasing, warehousing and even payments most
likely due to bureaucracy (Tapado, 2014), and adopting private entities procedures
in an efficient property and inventory may eventually needed more laws enactment.
Moreover the Joint Memorandum Circular No. 2020 dated September 24, 2020,
presented the study by the PricewaterhouseCoopers commissioned by the World
Bank upon the request by the Philippine Government in 2018 on asset registry in the
Philippines revealed that there is no available information technology (IT)-based
centralized inventory of assets in most agencies, there is no single agency handling
asset management and registry, there is lack of policies on asset management and
insurance, there is limited institutional accountability for asset management and
discrepancy on data maintained by the property units vis-à-vis the books of accounts
of certain agencies.
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Chapter 3
METHODOLOGY
This section of the study aims to highlight the methods used by the
researcher to find the answers to the problem and sub-problems that are stated in
the first chapter of this study. The research design and respondents of the study
including the statistical tools to be used and treatment to be applied on the data will
be discussed in this chapter.
Research Design
The study is descriptive correlational research design. Descriptive research
method aims at finding out “what is “, so observational and survey methods are
frequently used to collect descriptive data. It provides answers to question such as
who, what, where, and how as they are related to the research problem.
For a full view of the study, the researcher will identify and determine the
demographic profile of the respondents, from age, gender, educational level and
length of stay in the department of Supply and Property Management Division of the
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Department of Energy and the survey on property and inventory management
applied by the said department.
Locale of the Study
The research locale will be the Supply and Property Division Management of
the Department of Energy located in BGC, Taguig City. The government agency is
tasked to utilized sources and renewable energy for the country and it the research
is vital for the said organization from which the researcher is a part of as an
employee in a unit of Commission on Audit assigned in the Department of Energy.
Sampling Technique
Total enumeration sampling technique was used in this study, because this
study is intended for the total or 100% population of Supply and Property
Management Division of the Department of Energy., who will answer the survey
questionnaire.
1. On the profile of the respondents of the Department of Energy.
Table 1
Frequency and Percentage Distribution of Sex of the Respondents
24 | Page
Gender Frequency Percent
Male 10 48.0
Female 11 52.0
Total 21 100.0
The table shows the frequency and percentage distribution of the
respondents according to sex. It is shown that majority of the respondents are
female. Among the twenty-one (21) employee of the Supply Property Management
Division in Department of Energy, 52% of them are female which has an equivalent
frequency of eleven (11), while the remaining 48% of the respondents are male
which has an equivalent frequency of ten (10).
“The Philippines attained gender parity with the number of females
participating in various tiers being at least equal to that of males (David et al, 2017)”.
Table 2
Frequency and Percentage Distribution of Age of the Respondents

AGE FREQUENCY PERCENTAGE
18-20 0 0.0
21-30 10 48.0
31-40 7 33.0
41-50 0 0.0
51-ABOVE 4 19.0
TOTAL 21 100.0
25 | Page
The above table shows that majority of the respondents which is 10 or 48%
belong to the age group 21-30 years old, 7 or 33% are 31-40 years old and 4 or
19% are 51 years old and above.
According to Philippine Statistics Authority (2020), in April 2020 the
employment situation by age is that most of the employed persons were in the age
group 25 to 34 years old (27.6%), followed by the employed persons in the age
group 35 to 44 years old (24.0%).
Table 3
Frequency and Percentage Distribution of Educational Level of the Respondents

HIGHEST FREQUENCY PERCENTAGE
EDUCATIONAL LEVEL
DIPLOMA 3 14.0
BACHELOR’S DEGREE 15 72.0
MASTERS 3 14.0
DOCTORS 0 0.0
TOTAL 21 100.0
The above table shows the frequency and percentage distribution for
educational Level of the respondents. It shown in the table the majority of
respondents which is 15 or 72% of the respondents have Bachelor’s Degree, 3 or
14% have Masteral, and another 3 or 14% have Diploma.
According to Civil Service Commission (2014) competency based
recruitment and qualifications standards that include educational level, training and
26 | Page
experience as a minimum set of requirements based on the government office
related jobs
Table 4
Frequency and Percentage Distribution of Length of Service in the Department

LENGTH OF SERVICE FREQUENCY PERCENTAGE
IN THE DEPARTMENT
0-5yrs. 9 43.0
6-10yrs. 5 24.0
11-20yrs. 3 14.0
21yrs- over 4 19.0
TOTAL 21 100.0
The above table shows the frequency and percentage distribution for the
length of service in the department. It is shown in the table the majority of the
respondents which is 9 or 43% have stayed for 0-5years, 5 or 24% have stayed
for 6-10 years, 4 or 19% have stayed for 21 years and above, and 3 or 14% have
stayed for 11-20 years.
According to Compensation Plan (CP) under RA No. 6758 is an orderly
scheme for determining rates of compensation of government personnel. It was
crafted to attract, motivate and retain good and qualified people to accomplish the
Philippine Government’s mission and mandates, to encourage personal and career
growth, and to reward good performance and length of service.
Research Instrument
27 | Page
The instrument of this study is a survey questionnaire with the adaptation of
one of the related study, which will guide the proposed study entitled “Assessing
Challenges of Inventory Management Practice” by Wondmagegn
UrgessaUrissa(https://www.iiste.org/Journals/index.php/FSQM/article/view/49049)
that assesses the management practices of inventory, with the modification by the
researcher for a comprehensive assessment of the inventory and property
management of the Supply and Property Management Division of the Department of
Energy.
Likert’s Scale
The researcher used five (5) point scales to get specific responses that are a
standard and typically psychometric response scale in which responders specify
their level of agreement to a statement.
Scal Range Verbal Interpretation
5 4.50 – 5.00 Almost Always True / Strongly Agree
4 3.50 – 4.49 Usually True / Somewhat Agree
3 2.50 – 3.49 Occasionally True / Neutral
2 1.50 – 2.49 Usually Not True / Somewhat Disagree
1 1.00 – 1.49 Almost Never True / Strongly Disagree
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As show in the above table, the verbal interpretation of almost always true
and strongly agree ranges from 4.50 to 5.00, usually true and somewhat agree
ranges from 3.50 to 4.49, occasionally true and neutral ranges 2.50 to 3.49, usually
not true and somewhat disagree ranges from 1.50 to 2.49, and the almost never true
and strongly disagree ranges from 1.00 – 1.49, the graph shows that the basis of the
highest range of the survey will be the almost always true and strongly agree while
the lowest will be based on the almost never true and strongly disagree
interpretation.
Construction of Survey Questionnaire
The survey form is drafted into three parts. The first part of the questionnaire
will answer the demographic profile of the respondents, while the second part will
assess effectiveness of the supply property inventory management of the
Department of Energy and third part will find the Challenges in the Practice of the
Management System for Property and Inventory.
Validation
The thesis adviser will validate the research instrument.
Data Gathering Procedures
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This section highlights the step-by-step procedures that will be employed by
the researcher in order to plan and answer the research questions of the study. The
following procedures will be conducted:
a. The researcher constructed a letter to the Department of Energy and
request a survey to be conducted in the Supply and Property Management
Division of the Department.
b. Once approved, the researcher constructed the survey questionnaire using
a Google form.
c. The researcher then will send the link to the respondents’ email or
messenger.
d. Once survey is completed and all the respondents have eventually answer
the survey, using the Google form, responses will be automatically stored in
the form with graphical presentations, and to be imported to excel for collating
and statistical analysis.
Statistical Treatment of Data
The data gathered through the survey questionnaire that the researcher
organized, tally and tabulated. To analyze the data, the researcher of this study used
the following statistical instrument.
1. Frequency and Percentage Distribution – these were the descriptive
statistic that the researcher will use to describe the relative frequency of
survey responses and other data. This specifies the percentage of
30 | Page
observations that exist for each or group of data. The value of the frequency
and percentage was computed from the formula.
The formula used:
Where:
P = Percentage
F = Frequency
N =Total Numbers of Respondents
2. Weighted Mean – Another statistical technique used by the researcher to
determine and analyze the result in computing the overall average of the
response to the survey questionnaires that was distributed.
The formula used:
Where:
X = Weighted mean
∑fx = Summation of Frequency and Scale
N= Total Number of Respondents
3. Standard Deviation – a measure that is used by the researcher to quantity
the amount of variation or dispersion of a set data values, and to determine if
the weighted mean is correct and effective.
The formula used:
Where:
31 | Page
S = Standard Deviation
∑f = Summation of Frequency and Scale
X = Observed Data
X= Weighted Mean
N = Number of Sample
4. Chi-square – an inferential statistics technique designed to test the significant
relationship between the perception of the respondents in the implementing rule
procedures and the challenges in the performance of property and inventory
management using a cross-tabulation table.
The formula used:
Degrees of freedom or df = (row-1) (column – 1).
Chapter 4
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter contains the results of the survey questionnaire and the answers
to the four research problems. The presented data contains results on the Supply
and Property Inventory Management of the Department of Energy and Assessment.
The analysis of the data contains the related literature and studies related to the
results of the study. The interpretation of data identifies the actions needed to be
32 | Page
done in order to remediate or sustain the suppl and property inventory management
of the Department of Energy based on the results of the survey questionnaire.
2. On the assessment of effectiveness of the Department of Energy
assess the supply and property inventory.
Table 5
DOE Assessment on Supply and Property Inventory

Indicators Mean SD Interpretation
1. Property and inventory management have sustainable 4.81 0.40 Strongly Agree
contribution for the organization
2. The department has enough warehouses for inventories, 3.38 1.20 Neutral
machineries and equipment.
3. Inventory items are stored separately at different areas in 3.67 1.02 Somewhat Agree
the warehouses with classification and control numbers.
4. The storage or warehouse is strictly for authorized 4.57 0.75 Strongly Agree
personnel only.
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5. The department periodically has an internal physical

counting and inspection for property and inventory items. 4.48 0.68 Somewhat Agree
6. How often does inspection take place? 2.52 1.12 Semi-Annual
7. What management system for property and inventory is at 4.48 0.51 Aggregate
currently used? Inventory (w/
classification)
8. The implementing rule procedures as prescribed by law are 4.05 0.86 High
actually applied in the division of property and inventory
management of the Department.
9. There is difficulty in co-operation or relationship from 3.29 0.96 Occasionally True
related departments or agencies.
10. Existence of operational inefficiency for ordering and 3.14 0.96 Occasionally True
stocking of items.
11. There are no benchmarking on properties and accurate 3.29 0.96 Occasionally True
tagging.
12. Vehicle assignments are traceable to different divisions in 4.09 0.62 Usually True
the Department.
13. Obsolete and damage inventory items are properly 4.00 0.95 Usually True
recorded and disposed.
14. Properties for disposal are sold thru proper procedure of 4.48 0.87 Usually True
public bidding.
15. Inventories & Equipment are purchased using the 4.09 1.04 Usually True
common office supplies on using PS-DBM procurement.
General Weighted Mean 3.95 0.87 Usually True /
Somewhat Agree
Based on the findings from Table 5, DOE Assessment on Supply and
Property Inventory, all of the combined indicators gain a general weighted mean of
3.95 and a standard deviation of 0.87, respectively with verbal interpretation of
Usually True / Somewhat Agree. This signifies that most of the respondents have
usually true or somewhat agreed upon the effectiveness of the assessment on the
supply and property inventory management of the Department of Energy.
In addition, it can be seen that among the fifteen indicators, three indicators
perceived the highest score; The number one indicator which is property and
inventory management have sustainable contribution for the organization has a
34 | Page
mean score of 4.81 with verbal interpretation of strongly agree, in number four
indicator the storage or warehouses is strictly for authorized personnel only showed
that the average mean score of 4.57 with verbal interpretation of strongly agreed and
while asked on indicator number eight, for the implementing rule procedures as
prescribed by law are actually applied in the division of supply and property
inventory management of the Department OF Energy the average responses is 4.05
with verbal interpretation of high. It shows that the respondents strongly agreed that
the laws and rules are already in place. Moreover, from the assessment of supply
and property inventory management of the Department of Energy exemplifies that
warehouses have classification and control numbers for the property and inventory
management of the Department of Energy showed responses of mean score of 3.67
with verbal interpretation of somewhat agreed, that according to Chan (2019), a
symptom of how inventory is managed is by the financial capability of an
organization towards high cost of storage resulting to inefficiencies; on the difficulty
of cooperation between departments showed mean score of 3.29 with verbal
interpretation of occasionally true, likewise in a study by Sohail (2018), the company
organizational performance have significant relationship on inventory management;
the results of the study also showed occasionally true or mean score of 3.29 in terms
of no benchmarking or tagging and inefficiency in reordering and according to Carter
(2019), one of the standardized inventory management process is to label all
products and get rid of unneeded stocks and set a cycle count schedule; in the
determination of common stock and property procurements using the PS-DBM, it
35 | Page
showed mean score of 4.09 with verbal interpretation of usually true or high
dispersed responses thus based from Republic Act 9184, PS-DBM Common Office
Supplies should always be used for consistency and as approved.
3. On the challenges in the performance in property and inventory
management of the Supply Management and Property Division of the
Table 6
Challenges in the Performance of Property and Inventory

Indicators Mean SD Interpretation
16. Scarcity or limited of common office 3.33 0.97 Occasionally True
supplies in the warehouse or storage
17. Items on hand have damages 2.57 0.98 Occasionally True
18.Items are already obsolete 2.81 0.81 Occasionally True
19.Data are mismatch from the actual to what 2.62 0.74 Occasionally True
is recorded
36 | Page
20. Missing items 2.76 0.83 Occasionally True

21. Absence of specific legal provisions 2.71 0.85 Occasionally True
22. The department have a reactive approach 3.43 0.87 Occasionally True
23. Insufficient workers 3.24 1.09 Occasionally True
24.Lack of expertise or staff training 3.05 0.92 Occasionally True
25.Absence of comprehensive technology 3.76 1.04 Usually True
management system
26.Property is not used at optimum level 3.14 1.06 Occasionally True
27.Lack of full IT usage 3.76 0.89 Usually True
28.There is no performance evaluation for 3.19 0.93 Occasionally True

properties (i.e. vehicles, machineries and
equipment)
29.Lack of transparency and accountability 2.67 1.11 Occasionally True
30. Timeliness of Property and Inventory 3.38 1.02 Occasionally True

Report of COA.
General Weighted Mean 3.10 0.94 Occasionally True
Based from the findings on Table 6. Challenges in the Performance of
Property and Inventory, all of the combined indicators gain a general weighted mean
of 3.10 and a standard deviation of 0.94, respectively with verbal interpretation of
occasionally true. This signifies that most of the responses are occasionally true on
the challenges in the performance of the supply and property inventory
management of the Department of Energy.
The key results in the challenges of the performance of supply and property
inventory of the Department of Energy, showed that it has mean score of 3.76 with
verbal interpretation of usually true in the absence of technology management
system and in lack of full IT usage has mean score of 3.76 with verbal interpretation
of usually true, similarly according to Urissa (2019), one of the key to growing
37 | Page
business or an entity is through technology, likewise Quisumbing (2017), the need
for automating inventory process is to better serve the stakeholders, moreover
Tapado (2014), automation of property and inventory system improve productivity
and effectiveness in the performance of inventory management duties of personnel
and would be an input to the decision making process thus is accordance to
Executive Order 47, there should be a web-based system for inventory records of
office supplies, materials and equipment and the likes should be utilized; on the
property not used at optimum level showed mean score of 3.14 with verbal
interpretation of occasionally true or a high dispersed variation with the responses,
Jane (2017), emphasizes that property and inventory are part of the overall assets,
which essentially affects the company’s net worth if not properly controlled; For the
lack of transparency and accountability has a mean score of 2.67 with verbal
interpretation of occasionally true or it showed high dispersed variation in the
responses, according to Tapado (214), property and inventory should have history
tracks such as when equipment is issued for each employee, and performs
automated inventory management and generates reports as regards inventory
management of the equipment, likewise from the research of Dayday (2013), that
when coupled with effective monitoring and an alert feature of inventory and property
management prevents losses; the findings also showed a mean score of 3.38 with
verbal interpretation of occasionally true for the timeliness of COA reports vis-à-vis,
thus according to Dayday (2013), managing inventories require up-to-date
information of stocks status, prevent fraud, inefficiencies and long lead times,
38 | Page
moreover Hayes (2019) reiterated that timeliness of report reduces theft, damage or
shifts in demand.
4. On the significant relationship between the challenges encountered
by the respondents in the performance of supply and property inventory of
the Supply Management and Property Division of the Department of Energy.
Table 7
Correlational between challenges encountered by the respondents in the

performance of supply and property inventory of the Supply Management and
Property Division of the Department of Energy
Challenges CHI TEST Df CRITICAL Decision/
Sources of variation x 2
Value VALUE Remarks
Scarcity or limited of common office 9.21 16 26.30 Accept Ho/ Not
supplies in the warehouse or storage Significant
Items on hand have damages 12.78 16 26.30 Accept Ho/ Not

Significant
39 | Page
Items are already obsolete 6.74 16 26.30 Accept Ho/ Not

Significant
Data are mismatch from the actual to 22.57 16 26.30 Accept Ho/ Not
what is recorded Significant
Missing Items 11.44 16 26.30 Accept Ho/ Not
Significant
Absence of specific legal provisions 10.62 16 26.30 Accept Ho/ Not
Significant
The department have a reactive 12.28 16 26.30 Accept Ho/ Not
approach Significant
Insufficient workers 10.06 16 26.30 Accept Ho/ Not
Significant
Lack of expertise or staff training 5.68 16 26.30 Accept Ho/ Not
Significant
Absence of comprehensive 9.21 16 26.30 Accept Ho/ Not
technology management system Significant
Property is not used at optimum level 24.49 16 26.30 Accept Ho/ Not
Significant
Lack of full IT usage 6.14 16 26.30 Accept Ho/ Not
Significant
There is no performance evaluation for 7.42 16 26.30 Accept Ho/ Not
properties (i.e. vehicles, machineries Significant
and equipment)
Lack of transparency and 14.06 16 26.30 Accept Ho/ Not

accountability Significant
Timeliness of ,Property and Inventory 13.28 16 26.30 Accept Ho/ Not
Report of COA. Significant
Based from the findings of the study on the correlational relationship between
the challenges encountered by the respondents in the performance of supply and
property inventory of the Supply Management and Property Division of the
Department of Energy showed the chi test p-values are lower than the critical value
and null hypothesis is accepted, thus there is no significant relationship on all
variables of the challenges encountered by the respondents in the performance of
supply and property inventory of the Supply Management and Property Division of
the Department of Energy, in a study by Islam (2019), suggests that human
40 | Page
resources are the main factors affect inefficient inventory management, since the
laws and rules are already in place but not properly utilized.
Chapter 5
SUMMARY, CONCLUSION AND RECOMMENDATION
This chapter presents the summary of findings, conclusions drawn and
recommendation offered by the researchers.
Summary of Findings
This study attempted to assess the supply and property inventory
management of the Department of Energy (DOE) through the Supply and Property
Management Division (SPMD) of the Department.
41 | Page
For the first part of the survey, the researchers sought to identify the profile of
the respondents in terms of age, sex, educational attainment and length of service in
the Department. The second part of the survey is to find out the assessment of the
supply and property inventory management and the third part is the challenges
encounter by the respondents in the performance of supply and property inventory
management using a survey questionnaire which the researchers organized, tallied,
tabulated and applied statistical treatment.
After a comprehensive review of the gathered data, the researchers found out
that most of the employees of SPMD are female. The study also shows that majority
of the respondents belong to the age group 21-30 years old. The study also shows
the educational attainment that majority of the respondents have Degree and
among the twenty one (21) respondents majority have a length of stay in the
department for 0-5years.
Based from the analysis of the data for the DOE Assessment on Supply and
Property Inventory, four (4) indicators gained the mean with verbal interpretation of
Usually True, for properties for disposal are sold thru proper procedure of public
bidding scores 4.48, for vehicle assignments are traceable to different divisions in
the Department and inventories and equipment are purchased using the common
office supplies on using PS-DBM procurement scores both 4.09, and for obsolete
and damage inventory items are properly recorded and disposed score 4.0. Three
(3) indicators gained a mean with verbal interpretation of Occasionally True, for
there is difficulty in co-operation or relationship from related departments or
42 | Page
agencies and there are no benchmarking on properties and accurate tagging score
3.29 and existence of operational inefficiency for ordering and stocking of items
score 3.14. Two (2) indicators gained a mean with verbal interpretation of Strongly
Agree for property and inventory management have sustainable contribution for the
organization score 4.81 and the storage or warehouse is strictly for authorized
personnel only score 4.57. Two (2) indicators gained a mean with verbal
interpretation of Somewhat Agree for the department periodically has an internal
physical counting and inspection for property and inventory items score 4.48 and for
inventory items are stored separately at different areas in the warehouses with
classification and control numbers score 3.67. One (1) indicator with gained a mean
with verbal interpretation Neutral for the department has enough warehouses for
inventories, machineries and equipment score 3.38. One (1) indicator with gained a
mean with verbal interpretation Semi-Annual in how often does inspection take place
score 2.52. One (1) indicator with gained a mean with verbal interpretation
Aggregate Inventory (with classification) in what management system for property
and inventory is at currently used score 1.48. And one (1) indicator gained a mean
with verbal interpretation High for the implementing rule procedures as prescribed by
law are actually applied in the division of property and inventory management of the
Department score 4.05.
In the analysis of data for the Challenges in the Performance of Property and
Inventory, two (2) indicators gained a mean with verbal interpretation of Usually True
in the absence of comprehensive technology management system score and lack of
43 | Page
full IT usage score 3.76. Thirteen (13) indicators gained a mean with verbal
interpretation of Occasionally True for the department have a reactive approach
score 3.43, timeliness of Property and Inventory Report of COA score 3.38, scarcity
or limited of common office supplies in the warehouse or storage score 3.33,
insufficient workers score 3.24, there is no performance evaluation for properties
(i.e. vehicles, machineries and equipment) score 3.19, property is not used at
optimum level score 3.14, lack of expertise or staff training score 3.05, Items are
already obsolete score 2.81, missing items score 2.76, Absence of specific legal
provisions score 2.71, lack of transparency and accountability score 2.67, data are
mismatch from the actual to what is recorded score 2.62 and items on hand have
damages score 2.57.
Based from the findings of the study on the correlational relationship between
the challenges encountered by the respondents in the performance of supply and
property inventory of the Supply Management and Property Division of the
Department of Energy showed the chi test p-values are lower than the critical value,
thus there is no significant relationship on all variables of the challenges in the
performance of supply and property inventory of the Department of Energy.
Conclusion
From the findings of the study, the Department of Energy may have actually
applied in the Supply and Property Management Division the implemented rule
44 | Page
procedures as prescribed by law at high level, however the assessment also shows
the following;
1. Evidence of occasionally true on the assessment of property and inventory
reveals from difficulty in cooperation between related departments, operational
inefficiency for ordering or stocking items, no benchmarking and accurate tagging on
properties.
2. The challenges in the performance of supply and property inventory management,
the data presents occasionally true from scarcity of common office supplies,
obsolete inventories, data mismatch from actual against the recorded, missing items,
insufficient workers or lack of expertise, property is not used at optimum level
without performance evaluation, even lack of transparency and accountability, and
the study also showed usually true in the absence of comprehensive technology
management system and lack of full IT usage.
3. The study also reveals that there is no significant relationship on all the variables
of the challenges encountered by the respondents in the performance of supply and
property inventory in the Supply Management and Property Division of the
Recommendation
45 | Page
Based on the findings and conclusions of this study, the following
recommendations are hereby offered:
1. The SPMD-DOE should use the application of process mapping:
“A-B-C” classification of inventory and regular cycle counts for tagging and assigning
a class to every item or SKU (stock keeping unit) that may be used for consumption
value and that also provides status tracking, reduce mismatch, missing items and
increase accountability to assigned entities and conduct inventory performance
benchmarking, in doing so, it will help monitor the best possible productivity of each
property and inventory and create communities of practice to share them across
divisions of the Department of Energy and in the use of the Common Office Supplies
and Properties of the Procurement Service of the Department of Budget and
Management (PS-DBM), it should be noted the need for enhance supplier
collaboration to improve inventory replenishment processes.
2. The Supply and Property Management Division of the Department of
Energy should adopt an easy-to-use software applications and training to encourage
use of existing legacy systems, and or full IT implementation and utilization of
Agency Records Inventory System (AGRIS) or a web-based system for inventory
records of office supplies, materials, vehicles, equipment and other properties, thus
46 | Page
generates timely and accurate property and inventory reports for the adamant
interest of the public.
3. The SPMD-DOE must establish a culture of continuous improvement in
supply and property inventory management by adopting more effective and expert
level staff training approaches and builds a culture of teamwork with an effective
communication channels on inventory issues. and establish greater accountability
mechanisms for senior leadership to empower staffs, since senior officers determine
resource allocation priorities, including the number of personnel hires in different
units and also influence major initiatives, including those related to inventory
management, considering their oversight role on resource deployment.
References
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Control”, retrieved from
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control.html
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Karachi”, retrieved from
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Nyaga et al (2016), “Ten Actions to Improve Inventory Management in Government”,
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%20to%20Improve%20Inventory%20Management%20in%20Government.pdf
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Government Links:
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system-agris-
http://ps-philgeps.gov.ph/home/images/Downloads/AO.17.PDF
www.csc.gov.ph
www.dbm.gov.ph
www.psa.gov.ph
Appendices
I. Letter to DOE
51 | Page
Pateros Technological College

Pateros, Metro Manila
Date: May 4, 2021
To: SPMD Employees Staffs

Department of Energy
BGC, Taguig City
Dear Respondents:
Greetings!!!
We are the Office Administration students of Pateros Technological College who are
enrolled in Office Administration and Management Research.
Currently, we are conducting a study entitled “SUPPLY AND PROPERTY
INVENTORY MANAGEMENT OF THE DEPARTMENT OF ENERGY: AN
ASSESSMENT ”.
In lieu with our thesis, we are asking for your precious time, and effort to answer all
questions in the survey questionnaire, your responses are important and helpful for
the completion of the study.
Rest assured that all data gathered from you will be kept in the highest level of
confidentiality in accordance with the republic Act 10713 or Data Privacy Act of
2021. Your positive response in this request will be valuable contribution to the
success of the study with utmost appreciation.
Thank you very much and God bless.
Very Truly Yours,
Researchers
II. Survey Questionnaire
52 | Page
-SURVEY QUESTIONNAIRE-
Name (optional): ________________________
Part 1. Demographic Profile

(Please check ✔ in the space provided for your answer)
1.1 Age ( ) 18-20 ( ) 21-30 ( ) 31-40 ( ) 41-50 ( )51-Above
1.2 Sex ( ) Male ( ) Female
1.3 Educational Level ( ) Diploma

( ) Bachelor’s Degree
( ) Masters
( ) Doctors
1.4 Length of Service in the Department ( ) 0-5 yr

( ) 6-10 yrs
( ) 11-20 yrs
( ) 21 yrs - over
Part 2. Survey on Assessment of Supply and Property Inventory Management

1. Property and inventory management have sustainable contribution for the

organization.
( ) Strongly Agree
( ) Somewhat Agree
( ) Neutral
( ) Somewhat Disagree
( ) Strongly Disagree
2. The department has enough warehouses for inventories, machineries and

equipment.
( ) Strongly Agree
( ) Somewhat Agree
( ) Neutral
53 | Page
3. Inventory items are stored separately at different areas in the warehouses with
classification and control numbers.
( ) Strongly Agree
( ) Somewhat Agree
( ) Neutral
4. The storage or warehouse is strictly for authorized personnel only.
( ) Strongly Agree
( ) Somewhat Agree
( ) Neutral
5. The department periodically has an internal physical counting and inspection for
property and inventory items.
( ) Strongly Agree
( ) Somewhat Agree
( ) Neutral
6. How often does inspection take place?
( ) Weekly ( ) Monthly ( ) Semi-Annual ( ) Annually
7. What management system for property and inventory is at currently used?
( ) Item Inventory (w/o classification or clustering)

( ) Aggregate Inventory (w/ classification)
8. The implementing rule procedures as prescribed by law are actually applied in the
division of property and inventory management of the Department.
( ) Very High ( ) High ( ) Neutral ( ) Low ( ) Very Low
54 | Page
9. There is difficulty in co-operation or relationship from related departments or

agencies.
( ) -Almost Always True

( )-Usually True
( ) -Occasionally True
( ) -Usually Not True
( ) -Almost Never True
10. Existence of operational inefficiency for ordering and stocking of items.

( )-Usually True
11. There are no benchmarking on properties and accurate tagging.

( )-Usually True
12. Vehicle assignments are traceable to different divisions in the Department.

( )-Usually True
13. Obsolete and damage inventory items are properly recorded and disposed.

( )-Usually True
55 | Page

14. Properties for disposal are sold thru proper procedure of public bidding.

( )-Usually True
15. Inventories & Equipment are purchased using the common office supplies on
using PS-DBM procurement.
( )-Usually True
Part 3. Challenges in the Practice of the Management System for Supply and
Property Inventory.
16. Scarcity or limited of common office supplies in the warehouse or storage

( )-Usually True
17. Items on hand have damages

( )-Usually True
18.Items are already obsolete

( )-Usually True
56 | Page

19.Data are mismatch from the actual to what is recorded

( )-Usually True
20.Missing items
( )-Usually True
21.Absence of specific legal provisions

( )-Usually True
22.The department have a reactive approach

( )-Usually True
23.Insufficient workers
( )-Usually True
24.Lack of expertise or staff training

( )-Usually True
57 | Page
25.Absence of comprehensive technology management system

( )-Usually True
26.Property is not used at optimum level

( )-Usually True
27.Lack of full IT usage

( )-Usually True
28.There is no performance evaluation for properties (i.e. vehicles, machineries and

equipment)
( )-Usually True
29.Lack of transparency and accountability

( )-Usually True
30. Timeliness of Property and Inventory Report of COA.

( )-Usually True
58 | Page

Thank you and God bless !!!
III. Curriculum Vitae
59 | Page
60 | Page
61 | Page
62 | Page
63 | Page
64 | Page
65 | Page
sssss
66 | Page

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PATEROS TECHNOLOGICAL COLLEGE

SUPPLY AND PROPERTY INVENTORY MANAGEMENT OF

A Thesis proposal Presented to the Department of Office Administration

TITLE : SUPPLY AND PROPERTY INVENTORY MANAGEMENT OF

THE DEPARTMENT OF ENERGY: AN ASSESSMENT

RESEARCHERS: Salinas, Roquesa

ADVISER : Dr. Analiza Arcega

DATE : July 17, 2021

SCHOOL : PATEROS TECHNOLOGICAL COLLEGE

efficiency of the management control in the organization, however an organization’s

property and inventory management may show symptoms of problems and

focused organization of this study, in addition with the above-mentioned problems, is

the classifications of property and inventory items or materials have considerable

To establish an in-depth study, the researchers carried out scholarly

Division (SPMD) of the Department of Energy (DOE) in BGC, Taguig City.

however evidence of occasionally true on the assessment of supply and property

inventory reveals from difficulty in cooperation between related departments,

operational inefficiency for ordering or stocking items, no benchmarking and

accurate tagging on properties. Moreover in the challenges in the performance of

usually true in the absence of comprehensive technology management system and

on all variables of the challenges encountered by the respondents in the

performance of supply and property inventory of the Supply and Property

Management Division of the Department of Energy.

Chapter 1 – The problem and its Background

Background of the Study-----------------------------------------------------------------2

Statement of the Problem ---------------------------------------------------------------3

Hypothesis of the Study ----------------------------------------------------------------5

Scope and delimitations -----------------------------------------------------------------5

Significance of the Study -----------------------------------------------------------------6

Theoretical Framework ----------------------------------------------------------------8

Conceptual Framework ------------------------------------------------------------------10

Definition of Terms ------------------------------------------------------------------11

Chapter 2 – Related Literature and Studies

Related Studies ----------------------------------------------------------------------------22

Locale of the Study--------------------------------------------------------------------30

Table 1 Frequency and Percentage Distribution according to Sex ----- 37

Table 2 Frequency and Percentage Distribution according to Age ---- 38

Table 3 Frequency and Percentage Distribution according to Educational

Table 4 Frequency and Percentage Distribution according to Length of

Service in the Department ------------------------------------------------------------- 39

Data gathering procedure-------------------------------------------------------------33

Statistical Treatment of Data

Frequency and Percentage Distribution---------------------------------- 34

Standard Deviation ------------------------------------------------------------ 35

Chapter 4 – Presentation and Analysis of Data

Table 5 DOE Assessment on Property and Inventory ---------------------- 41

Table 6 Challenges in the Performance of Property and Inventory ------ 44

Table 7 Correlational Result between perceived Implementing Rule

Procedures and the Challenges in Property and

Inventory Management -------------------------------------------------------------- 47

Chapter 5 – Summary, Conclusion and Recommendation

Summary of Findings ----------------------------------------------------------------- 49

THE PROBLEM AND ITS BACKGROUND

In the modern world of organizational management, one of the most equally

important management processes in any entity whether it maybe private or public

integrated business solutions have emerged replacing traditional information

and for today’s business environment, a well-known internet based or web-based

long as it is connected to the Internet (Chan et al, 2017).

2020, presented the study by the PricewaterhouseCoopers commissioned by the

registry in the Philippines revealed that there is no available information technology

(IT)-based centralized inventory of assets in most agencies, there is no single

management and insurance, there is limited institutional accountability for asset