Presented to the Decision Sciences and Innovation

De La Salle University - Manila

Term 3, A.Y. 2023-2024

In Partial Fulfillment
Of the Course Requirements
In MADDISC Section K32

Submitted to:
AMPARO, Roy Castaneda

Submitted by:
ABELARDO, Anne Gabrielle M.
LIM, Ella
NAVARRO, Alisa Bernice B.
ODIVILAS, Dianne
PADERNAL, Nami T.
ROBLES, Aidrienne Ricci C.

Submitted on:
August 5, 2024
 I. Background of the Study
Diamond Pump, a subsidiary of Greyson Industries, Inc., has a storied history of
manufacturing positive displacement pumps for various industries, including chemical,
petroleum, and other sectors requiring specialized pump solutions. With a legacy spanning 118
years, Diamond Pump has established itself as a reputable and reliable provider of high-quality
pumps. The company's product portfolio includes gear pumps, screw pumps, and progressive
cavity pumps, sold through a vast network of distributors and directly to original equipment
manufacturers (Marina el al., 2021). Despite its long-standing success and a consistent track
record of sales growth—averaging a 5% annual increase over the past two decades—Diamond
Pump faces persistent distribution challenges. These issues have become more pronounced in
recent years, potentially hindering the company's ability to capitalize on market opportunities
fully (Jiang et al., 2022).

The industrial pump industry, valued at approximately $60 billion globally as of 2023, is
highly competitive and characterized by several dominant players, including Blackmer Company
and Viking Corporation. These competitors typically focus on specific pump types—screw-type
and gear-type pumps, respectively (Chiorian & Vaida, 2024). In contrast, Diamond Pump
distinguishes itself by offering a diverse, standardized product line that caters to a broad
spectrum of applications. This diversity should theoretically provide Diamond with a competitive
edge; however, the company still faces significant hurdles in optimizing its distribution channels.
Pricing within the industrial pump sector tends to be relatively uniform across major
manufacturers. This uniformity is driven by several factors, including the high cost of raw
materials, which constitute a significant portion of production expenses. For instance, the price
of stainless steel, a critical raw material for pump manufacturing, has increased by 15% over the
past three years. Additionally, overhead costs, such as labor and logistics, have risen steadily,
contributing to the necessity of periodic price adjustments. Despite these pressures, price is not
the primary determinant in customers' purchasing decisions; rather, the quality of service and the
performance characteristics of the pumps play more crucial roles.

Diamond Pump's promotional efforts are predominantly concentrated on national

advertising through trade journals targeting specific industry segments. Publications like Fuel Oil
News, Chemical Engineering, and National Petroleum News are instrumental in reaching
potential buyers in the petroleum and chemical sectors (Kaya et al., 2021). These advertisements
generate inquiries, which are subsequently forwarded to the appropriate sales agents and
distributors. In parallel, the company targets engineers and product designers responsible for
specifying equipment for new projects. By advertising in trade journals such as Design News,
Diamond aims to ensure its pumps are included in product specification sheets, thereby
facilitating the sales process for both company and distributor sales personnel (Rodriguez et al.,
2023). Diamond Pump's distribution network comprises 21 commissioned sales agents
overseeing approximately 425 distributors, employing around 2,000 sales personnel nationwide.
These agents are responsible for selecting and managing distributors, who must meet stringent
criteria, including financial stability, a commitment to promoting Diamond products exclusively,
and a reputation for quality and service excellence. Despite these measures, attracting and
retaining high-quality distributors remains a challenge.

II. Statement of the Problem

Given the provided information, Diamond Pump faces challenges stemming from
distribution inefficiency. Even though the company has good cash flows, they also have
to deal with optimizing their distribution strategies. In addition to this, the Diamond
Pump is also dealing with outsourcing trustworthy distributors. This is because they are
hesitant to adjust given their existing suppliers. Lastly, the company is also struggling
with their sales agents and in appealing potential buyers. With this, it is necessary for the
business to take action accordingly to their goals in improving their efficiency and in
turn, encouraging overall productivity for the company.

III. ACA #1 - Provide Skill Training For The Employee Dealers

While Diamond Company and its distributors are having issues with their relationships,
another major factor of the Diamond company’s products sales that contributed to its decline was
also the company’s employees' low skills. It was stated that the employees had a difficult time
making a sale and marketing the products to the interested buyers as well as keeping their
consumers loyal because they did little to no effort in attempting to do so. This issue can be
solved by training their employees on how to deal with consumers when chewing able to make a
sale or marketing a product, by enhancing their employees skills this would give the company an
opportunity to increase their sales slowly but surely.

Advantages Disadvantages

Enhances Dealer Skills: Developing Costly: Hiring professionals who are willing
programs for the employees that have little to teach or part take for the program may be
experience on their line of work will enhance costly.
their skills which will help them secure more
details and learn more selling techniques so Time Consuming: The program may not
that they’ll be able to close deals to the only take a day to implement and may take a
interested consumers. week or so to happen.

Attracting Consumers: With the employees Some May Not Understand: Even with the
learning how to market if they implement program some may not understand what was
what they have learned in the program they taught or may not even understand the
were in they will be able to implement what essence of the program itself.
they have learned and catch the interest of
other consumers. Unwillingness to Learn: Other employees
may not be willing to learn and are just
 New Ideas & Strategies: If the employees working for the company because it's ‘easy’
are more motivated to work for the Diamond with that said if the company announced that
company they will feel more motivated in they are going to do a training program some
their line of work and create new strategies may quit the job because they are not willing
and generate more ideas for hillman. to learn.

Team building: This program will give the

opportunity for everyone in the tram to get too
know each other creating a bond with one
another to be able to get along more with each
other.

Evaluation
The company’s employees being low skilled also contributes to the company sales going
down, with that said what the company can do is to create a training program for their employees
to enhance their skills. The training program will be able to enhance the employees skills and
technique when dealing with potential customers. They may also be able to attract consumers on
their own using what they were taught during the program and they may also come up with their
own ideas and strategies. They can also treat this as a team building opportunity and bond with
their workmates so that they will be able to get along with one another and share their work tips
to one another. However, there will also be disadvantages to the company when implementing
this program. The professionals that the company plans to hire for this program may be costly if
they are looking for various professionals who are able to teach every aspect when it comes to
dealing, this may also be too time consuming for the company because the training may take
more than a day of the speakers and training plan to teach a lot of topics. There are also
disadvantages when it comes to the employee themselves because it isnt guaranteed that all the
employees will be able to understand or learn what was taught during the program but also some
employees may not even be willing to go through with the training program because some may
just be working for the company because they taught it is an easy job.

IV. ACA 2 - Time Allocation Optimization

Diamond Pump is also facing challenges with its operational efficiency. Specifically, the
lack of time for effectively supervising distributors while engaging with customers. This problem
can be mitigated through time allocation optimization. The company can enhance focus and
productivity by strategically assigning tasks based on employees' strengths, leading to more
efficient operations.

Advantages Disadvantages
 ● Increased and Improved Efficiency- ● Dependence on Key personnels /
By using time allocation optimization, Employee turnover – The delegation
Diamond Pump can simplify of tasks towards employees based on
operations by decreasing redundant their skill may be an advantage,
tasks, while also focusing on however, this may become a
high-priority activities. This enhances disadvantage when an employee
decision making, and overall decides to leave the company.
employee productiveness.
● Implementation Constraints and
Potential Resistance – Implementing
● Improved decision making – With a new work allocation may require
better time management, employees significant changes in the employee’s
may allocate time towards having habits. This may be challenging for
strategic planning, which may lead to the company to adjust as they may
being more informed on what encounter resistance from employees.
decisions should be made depending
on the customers’ behavior. This may
even enhance the company’s ability to
respond to the market trends and
customer needs in the industry they
are in.

● Improved skill utilization - As

mentioned above, the tasks are
assigned based on the employees’
individual capability, which may lead
to better and higher quality work from
them. With the utilization of their
skills, it enhances and maximizes the
potential of the work force, and
contributes to high quality
performance, thus achieving Diamond
pumps goals more effectively.

Evaluation
The company’s operational efficiency also contributes to one of its major challenges in
distribution management. To address this, the implementation of time allocation optimization
may be done. This approach aims to boost the overall efficiency and enhance decision-making of
the company by aligning employees with tasks that leverage their individual strengths. With
employees also allotting time on focusing on strategic planning and adapting to market trends,
employees can contribute more effectively to the company's objectives and goals. However, there
are some disadvantages to consider. One potential issue is the dependence on key personnels.
The reliance on key or specific individuals for specialized tasks may create toxicity in the
workplace if those employees leave the company. Additionally, employees accustomed to
existing workflows might resist changes associated with this new approach. Adjusting workflows
and adapting to new habits could present challenges, requiring careful management and support
during the transition if this approach is implemented.

V. ACA# 3 - Improve Operational Efficiency

Improving operational efficiency helps the company minimize waste and optimize
productivity through better optimization of business processes. In order to improve the
operational efficiency, some areas to focus on are:
● Production - it would help to streamline production processes to reduce inconvenience
and setbacks in processes from production to distribution.
● Inventory management - through improved management of inventory, the company can
avoid running out of stocks or having excess inventory.
● Logistics efficiency - reducing transportation costs and delivery times, as well as
improving delivery routes and exploring alternative shipping methods will be greatly
beneficial for the company’s operational efficiency.

Advantages Disadvantages

● Reduced costs - improved productivity ● Initial investment - the implementation

can lead to reduced costs in operation, of new strategies may bring about
production, distribution, inventory greater profits but require an
management, and logistics. investment upfront.
● Increased profits - reduced costs ● Potential job losses - improved
furthermore leads to increased output. efficiency leads to better task
This translates into increased profits allocation, and in some cases may lead
for the company. to job losses due to the improved
● Enhanced customer satisfaction - due completion time of tasks.
to improved operational efficiency, ● Resistance to change - employees may
customers will be more satisfied with find it inconvenient to deviate from
the faster delivery times, improved their usual practices. Introducing new
overall product quality, and better strategies may require more hands on
customer service in terms of response training and better communication
time. within the workplace.
● Improved brand standing - increased
efficiency can lead to better brand
 competitiveness. Due to the reduced
costs, the company is able to roll back
on the prices of certain products.

Evaluation
Overall, the strategy effectively addresses the key areas for improvement in Diamond
Company’s operations. It covers multiple areas, including production, supply chain, distribution,
and information systems. It also shows the importance of data analysis and Key Performance
Indicators (KPI) in order to make the necessary decisions that the company will implement. This
strategy helps Diamond Company help reduce costs, increase profits, and improve customer
satisfaction. In order to ensure that the strategies to be implemented will prove to be helpful for
the company, they may consider a pilot testing to assess the changes and difficulties faced by the
employees. They may also consider listening to employee feedbacks in order to improve their
operational systems, since they are the ones who can determine the key points for improvement
and most notable changes with the increased operational efficiency.

VI. Recommended Solution

In the first alternative course of action, the objective is to enhance the skillset of
the employees of the Diamond Pump. By doing so, the company would be able to
increase their sales as it was mentioned that they face challenges in making sales due to
the struggle in making an appeal to audiences. As mentioned, providing skills training for
company employees would make an allowance for better ideas and strategies, however it
should be noteworthy that not all are willing to learn, not to mention its costs in money
and especially time. In addition to this, while enhancing the skills of employees target
one of the problems faced by the company, it is not necessarily large enough of an impact
on their overall operations. On the second alternative course of action, the objective is to
manage the time allocated within the operations of the organization. Upon enhancing the
time allocation for operations, the company is able to address issues brought about in
their decision making processes and promote efficiency in their workplace. However, this
strategy develops a dependence on personnel, as time efficiency is conditional according
to the staff that is working to each job or task, as well as their level of skill. This
circumstance could lead to a hierarchical workplace environment. Lastly, the third
alternative course of action tackles the main problem currently being faced by Diamond
Pump. Improving operational efficiencies directly addresses their production. This could
lead to a larger number of cost savings and ultimately, enhanced customer satisfaction.
On the other hand, the initial costs in investments could be a barrier for the company.
However, it is important to also consider the payoffs that this particular investment could
return once a new operational strategy is continuously implemented. With this, the
researchers believe that the most comprehensive solution is for the organization to aim on
improving their operational efficiencies, further focusing on their distribution strategies
 as well in order to ensure the Diamond Pump remains and even improves their
competitive standpoint in the market.

VII. Implementation
To tackle problems related to the inefficient distribution process and an overall
improvement of the circulation of goods within the company, Diamond Pump will
employ a number of tactics. First, the company will conduct an awareness creating
campaign on skill training programs for the sales force and distributors to enhance the
skill in salesmanship, customer relation management and products knowledge relevant to
the buying process. This endeavor is expected to improve the employees’ experience,
attract more consumers, and discover new strategies, besides middle enhancing
teamwork. Second, time management will be improved in the internal processes of
Diamond Pump through the identification of such factors as the current work schedule
and other organizational processes, where tasks and responsibilities will be divided
depending on the preferences of the employees and the use of effective task-orientated
tools. This strategy will eliminate excess of work, cut numbers of repetitive tasks and
make decisions better, but this kind of change may be faced with some issues: the
primary risk is that there are problems with the dependence of the new organization on
specific workers and the second one is the problem connected with the natural resistance
of the workers to change. Last of all, the company will enhance operational productivity
by integrating efficient production systems, supply chain management, and supply chain
management systems. All of these improvements will contribute to lower costs and
higher revenues and customers’ satisfaction but can be associated with high initial
investments and losses in terms of employment. By targeting the mentioned areas,
Diamond Pump believes that they will be able to overcome the problems of distribution,
increase its productivity and increase its competitive edge in the market.

VIII. References

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