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Case-Study-No.-4

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8 views5 pages

Case-Study-No.-4

Uploaded by

christianjaymagat
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Republic of the Philippines

PHINMA Araullo University


Cabanatuan City

BES 047: ENGINEERING MANAGEMENT

CASE STUDY NO.4

BITS AND PIECES

INTERNATIONAL CORPORATION:

Little Things Mean a Lot

Submitted by:

__________________________
(Year & Section)
Case 4: BITS AND PIECES INTERNATIONAL CORPORATION: Little Things
Mean a Lot

The Bits and Pieces International Corporation (BPIC) is one


company that appears to be succeeding and growth become a part of
its agenda for the next few years. This is quite unusual for a
company whose certificate of incorporation has only been approved
by the Securities and Exchange Commission four years ago.

BPIC is maintaining an office at Makati Avenue in Makati and a


plant at Sta. Rosa, Laguna. The company is producing various
injection molded plastic products classified as consumer and
industrial.

The key officers of the company are as follows:

o President and Chairman of the Board: Engineer Rodrigo


Reyes
o Vice President and General Manager: Engineer Jesus Ualat
o Corporate Secretary: Mrs. Mildred Salazar
o Treasurer: Ms. Elsa Marzo
o Engineering Manager: Engineer Silvino Santiago
o Production Manager: Engineer Severo Lagayan

The organization chart of BPIC is shown in Exhibit 1.

The company, classified as a manufacturing corporation, operates


on two activities.

1. Production of stocks to be sold to the local market


2. Production as a subcontractor

BPIC does not maintain a sales force. The general manager acts as
marketing executive and directly transacts business with
customers.

The company’s average sales per month are as follows:


PRODUCT AVERAGE SALES PER MONTH
BALL PEN TIPS Php 340,000
SPUTUM CUPS Php 900,000
GREASE CUPS Php 100,000
BOTTLE CAPS Php 100,000
PVC FITTINGS Php 200,000
TOTAL Php 1,640,000
At the current output levels, the company was declared
profitable.

The following financial data were provided:

1. Profit margin (net income/sales) = 32%


2. Return on total assets (net income/total assets) = 72%
3. Annual turnover = 15 times
4. Current ratio = 1.1
5. Acid test ratio = 1.05

An analysis of the company’s market potential convinced the top


management to consider expansion. It was also decided to its
existing line of products.

PRODUCT YEAR 1 YEAR 2 YEAR 3


BALL PEN TIPS Php 6M Php 7M Php 8M
SPUTUM CUPS Php 12M Php 22M Php 33M
GREASE CUPS Php 12M Php 13M Php 14M
BOTTLE CAPS Php 24M Php 36M Php 54M
PVC FITTINGS Php 48M Php 58M Php 70M
TISSUE HOLDER Php 48M Php 58M Php 70M
TOTAL Php 154M Php 194M Php 249M

The company made provisions for improving its facilities


including land, building machinery, and equipment. The hiring of
additional manpower was also proposed.
The following constitute the positions proposed:

POSITION QUANTITY
FINANCE MANAGER 1
QUALITY CONTROL AND RESEARCH AND DEVELOPMENT MANAGER 1
SENIOR MACHINIST 1
JUNIOR MACHINIST 2
HELPERS 2

The president ordered the general manager to prepare an


organization chart for the new set up. The key officers of the
company were directed to review the proposed setup and present
their comments on an executive meeting scheduled next week. The
proposed organization chart is shown in Exhibit 2.

Engineer Lagayan is now contemplating on what credible points he


is going to raise in the meeting.
Question: If you were Engineer Lagayan, what credible points will
you raise in your executive meeting concerning the newly proposed
organizational chart of your company?

INTRODUCTION: Provide a brief narrative about the case study,


summarizing the key points.

BODY: Include the interviewee's response in the question along


with their name, company position, and company address. Provide a
narrative based on your analysis of the answer given by the
interviewee.

CONCLUSION: Conclude with a narrative that reflects the overall


context and ideas presented in the interviewee’s response, along
with your analysis.

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