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New Era University

No. 9 Central Ave. New Era, Quezon City

College of Engineering and Technology


Ralph Marwin Corpuz
Ryan Nafuran
Jerome Pascua
Liezl Shienna Geronimo
Jade Manzano

Engr. Justin Carlo A. De La Cruz

Executive Summary
As Engineer Hermogines Ancheta had been promoted from Asst. Manager to Manager of

the Maintenance Department of Motorbus Company, he was bothered by several problems. First,
the uneven supply of purchased parts that some are excessive quantities while some important
ones are inadequately stocked. Engr. Ancheta mulling over how he will perform well as Manager
in addition of 50 new buses that will be fielding within a month, by the next month a total of 100
buses that will Engr. Anchetas maintaining responsibilities.
For uneven supply of purchased parts to be organized, Engr. Ancheta must provide an
inventory of purchased parts every end of the month to lessen the quantities of less necessary
parts and to meet the necessary quantities of important ones. Additionally, to ensure good
condition and safety of buses, Engineer Ancheta must request for additional workers that will
accommodate all of the buses.

Statement of the Problem

With the Engineer Hermogines Ancheta as new appointed manager of the Maintenance

Department he inherits problems from the former manager (Engr. Gaudencio Inductivo). As
Engr. Ancheta inspected the storage room for parts, he found out that there was a full of an
uneven supply of parts wherein there are excessive quantities of less necessary parts than
important ones. Moreover, he also troubled by the addition of buses to the Motorbus Company.

Causes of the Problem

Its very critical situation for Engr. Hermogenes Ancheta because all of the problems of
the Maintenance Department are lying on his shoulder as well as its future. Every maintenance
personnel is not happy for their job because their number isnt proportioned enough for the
number of the buses. Furthermore, there is no improvement in the old method of purchasing with
the current development.
Decision Criteria/Methodology
Motorbus Company facing a problem from shortage of maintenance personnel. When
Engr. Ancheta inspected the storage room for parts and found out that there an uneven and
excessive supplies of parts. With these problems here are the steps for solutions to solve
Engineer Anchetas problem:
1. He may consider proposing intermediate planning for the said problems.
2. He may also consider the Inventory Control Policies defined by Kenneth
Hamlett that suggested that well defined inventory control policies can reduce the
operational expenses.
3. He may take into account about developing strategies and tactics.
4. He can consider about setting standards in purchasing method.
Alternative Courses of Action
These are the list of alternative courses of action that may serve as an alternative solution
to the problem of Engr. Ancheta:
He may keep himself (Engr. Ancheta) as manager, and point one of the
workers to check for the inventory of all the supply orders of parts. By this,
he can manage other important things other than checking inventories. However,
the handling of the inventories may not be effective because of the inexperienced

worker to handle inventories.

He may order to buy only the important parts and keep the excessive parts
until it is consumed. From this, the Company will no longer troubling for
insufficient stocks for important parts. However, the other parts (excessive parts)
may consumed all at sudden having no enough stock for it.

He may hire more mechanics/workers. This will make the job easier and be

handle more comfortably. However, this will cost additional persons to pay.
He may hire assistant manager. This will be great help for Engr. Ancheta to
assist him and the one to check inventories. However, hiring somebody means

additional persons to pay.

He may make inventory for the supplies. Inventory is a protection against
uncertainty, for efficient processing of material, and to permit transit and
handling. Hence, supply of the companys orders will be organize. However,


improper handling of inventory will result for no improvement.

Implementation and Justification
As Engineer Ancheta organize the things he need to do, next part is implementing it in

order to solve his problem.

First, he will request to the President or the Vise President of the Motorbus
Company for hiring of mechanics and workers, within the month the company
must have produce at least 5 mechanics at each unit (Manila Terminal and Isabela
Terminal). This is since, before the procurement of the new buses there is 10
mechanics each unit for 50 buses now, that there is 50 new buses, 5 mechanics is


He will also request for his assistant manager that will supervise and handle the

Engr. Ancheta must implement having inventories presented every end of the

Medina Roberto, G. (1982). Engineering Management. Rex Bookstore, Inc.