Father Saturnino Urios University

ACCOUNTANCY PROGRAM

Butuan City, Caraga, Philippines

OPERATIONS ASSESSMENT OF CARLOABEL MINI SAWMILL

An Outcome-Based Education

Presented to

J.C. Linnor M. Oraiz, CPA

In Partial Fulfillment

For the Requirements of the Subject

Operations Management and Total Quality Management

Submitted by:

ABING, JEA E.

ALARCON, EUNICE

ALTIZO, AMADEL J.

AMPER, JESIEL

AMPO, SHEEN LYNWELL P.

 OCTOBER 2019

TABLE OF CONTENTS

Topic Page Number

I. Company Profile
II. Introduction
III. Review of Related Literature
IV. Assessment of the Operation
V. Conclusion
VI. Recommendation
VII. Bibliography

Appendices
 COMPANY PROFILE

GENERAL BUSINESS INFORMATION

 Business Name: Carloabel Mini Sawmill

 Head Office Address: P – 4, Bingkilan, San Vicente,
Butuan City
 Proprietor: Carlos N. Tanjay
 Contact Number : (+63)917 1377 003 / (+63)999 9919 063
 Company Status: Still in operation

BUSINESS DETAILS

 Date of Creation: June 29, 2005

 Main Areas of Activities of Business: P – 4, Bingkilan,
San Vicente, Butuan City
 Main Products:
o Wood Lumbers
o Veneers
Both are from the species of Falkata,
Gemilina, Mangium.
 Principal Customer Industries and Geographies
o Agusan Plywood Corporation - located at P-1 Manapa
Street, Buenavista, Butuan City, Agusan Del Norte
o Richmond Plywood Corporation – located at Baan
Riverside, Butuan City, Agusan Del Norte

BUSINESS CAPACITY

Human Resources

o Business Organization
 The Business is owned and managed by the
proprietor himself, Mr. Carlos N. Tanjay.

o Number of Workers

The number of workers hinges on the demand for

production. Approximately, the business has a total
of 50 people, including all the employees and workers.

Technical

o Environmental Compliance Certificate No. R13 – 1801

– 0001

This was issued under the Presidential Decree

1586 by the Department of Environment and Natural
resources (DENR) through the Environmental Management
Bureau, Region 13.

INTRODUCTION

In business, having a good quality of products is

essential. Quality products help to maintain customer
satisfaction and loyalty to reduce the risk and cost of
replacing faulty goods. It enables companies to build a
reputation for quality by gaining accreditation with a
recognized quality standard. In general, it works
horizontally across an organization serving as the customer
advocate, to protect the brand, and build customer
satisfaction. Yet, quality mainly is a subordinate of the
business's operations.

Operation in a business is very vital. It holds the main

purpose of a business, which is to serve and to satisfy its
customers through the products or services that can be
produced. According to Stevenson (2018), operations is what
business does. These are the processes that either provide
services or create goods. Because of the importance that a
business's operations have, it then must be observed and
studied well in order to ensure a positive outcome for the
business. This is where Operations Management took place.

Operations Management, on the views of Anastasia (2016),

involves planning, organizing, and supervising processes and
make necessary improvements for higher profitability.
Stevenson (2018) assent to this in which he defined operations
management as the management of systems or processes that
create goods and/or provide services. With this being said,
it can be concluded that Operations Management is
intrinsically linked to the supply chain, and no business
organization could exist without both.

Total Quality Management adds up to the processes of

operations management and supply chain management. This
course seeks to understand and deliver customer expectations
via continuous improvement across every function within an
organization. According to Ramakrishnan (2015), it is based
on a principle that consistent delivery of customer
expectations can only be achieved if each contributor
performs as required to meet the needs of every customer.
Improvement will be driven in product features, process
efficiency, service delivery, staff development and awareness
and responsibility towards the environment.

To build a business is not just about producing goods or

services, earning a profit, having good management in
operations, and all other internally related complexity.
According to Katz and Green (2018), a business or any
organization should also look on to the external factors that
might affect the business and also to the effects that the
business might impact on to its stakeholders such as the
customers, employees, the community in which they are
situated, to the Government, and to the environment.

The Wood Industry in the Philippines is highly prominent

and remarkable. However based on Forest Management Bureau
(2009), due to the illegal exercise of this kind of business,
it caused destruction of forests in the country that resulted
in the decline of the 17.8 million HA of forest cover reported
in 1934 to only about 5.4 million in 2000. As a result, strict
regulation has been mandated by the Government in order to
regulate the said kind of business. Early 2000, the Department
of Environment and Natural Resources, together with the
Environmental Management Bureau, have strengthened the
Presidential Decree 1586 which mandated the importance of
having a plantation for businesses in wood industry in order
to certify their operations and refrain it from shutting down,
Israel, D. C., and Bunao, D. F. M. (2017). As a result, many
businesses under the Wood Industry had stopped their
operations because of not complying, however, one that stands
among these businesses is the Carloabel Mini Saw Mill.
 This paper is in an inquisition of how the Carloabel
Mini Saw Mill had surpassed the legal and environmental threat
to its business. It seeks to answer the question of how they
have managed to withstand the dilemma that the businesses
under the wood industry in the early 2000s have faced. In
order to aid this principal inquiry, a scholastic
investigation has been conducted through the use of the
theories available in the subject, Operations Management and
Total Quality Management. The topics that has been used and
will be discussed and reflected in this paper are the
following: Competitiveness, Strategy, and Productivity,
Forecasting, Product and Service Design, Methods of Quality
Control, Process Selection and Facility Layout, Work Design
and Measurement, Inventory Management, Supply Chain
Management and lastly, the Location and Planning. These
topics helped in answering the primary inquisition and also
aided in forming this Operations Assessment paper.
 REVIEW OF RELATED LITERATURE

Quality management plays an important role in the

overall organizational strategy. The major challenge for
global organizations is to survive in this increasingly
competitive global market (Zakuan et al., 2010).

Competitiveness, Strategy, and Productivity

Organizations that adopt Total Quality Management (TQM)

and pursue product quality, will improve their competitive
position, business success, and differentiate their products
(Belohlav, 1993; Fernandez-Perez and Gutierrez, 2013; Lam et
al., 2011). Recent studies showed positive relations between
TQM implementation and performance of companies (Duh et al.,
2012; Gimenez-Espin et al., 2012; Kaynak and Hartley, 2008;
Kim et al., 2012; Lam et al., 2011; Rahman and Bullock,
2005. Most literature also agrees about the positive
relationship between TQM and competitive, Strategies, and
productivity (Stevenson, 2018). The competitive strategy is
defined as the strategy which looks for a preferable
competitive situation for the organization it acts in. It
aims to establish certain levels of profits and sustain that
in a competitive atmosphere of industry (Porter, 1980).

William Stevenson(2018) had put strategies and tactics,

that according to him are like roadmaps for reaching the
destination - the company’s goals - and that which provides
a focus for decision making and provides guidance and
direction for carrying out actual operations. As such,
specialization, flexible operations, and sustainability
strategies in total quality management are adopted by Carlo
Abel Mini Sawmill Company which helped them acquire a detailed
plan for the decision making process. They used
specialization strategy by focusing on narrow product lines,
producing lumbers and veneers, in particular, provides
limited services to what was only demanded which had to help
them achieve high-quality products. Putting a value on
customer satisfaction by focusing on quick response through
flexible operations had also contributed to the company’s
success. Aside from that, the company recognized
sustainability as a strategic advantage, not only in economic
terms but also in promotional benefit by having been
publicized their sustainability efforts and achievements
through Environmental Compliance Certificate (ECC) awarded by
the Department of Environment and Natural Resources (DENR)
through the Environmental Management Bureau, Region 13. The
company has its own plantations which have been their supply
of raw materials, thus focusing on environmentally-friendly
and energy-efficient operations. However, strategy
formulation takes into account its core competencies or those
special attributes and abilities possessed by an organization
that gives it a competitive edge, but merely matching a
competitor is usually not sufficient to gain market share
(Stevenson, 2018). The most effective organizations according
to Stevenson, 2018 use an approach that develops core
competencies based on customer needs as well as on what the
competition is doing. Carlo Abel Company’s ability to surpass
other companies from the same industry in other dimensions
such as its rapid delivery or service after the sale has
become their competitive edge and has gained market share.
Thus, identifying companies' competitiveness and formulating
strategies aligning together is crucial to the company’s
success in achieving productivity.
 One of the primary responsibilities of a manager is to
achieve productive use of an organization’s resources
(Stevenson, 2018). Productivity is another factor in
determining the competitiveness of a certain company and
computing productivity can be based on a single input (partial
productivity, on more than one input (multifactor
productivity), or on all inputs (total productivity). The
measure of productivity depends primarily on the purpose of
the measurement (Stevenson, 2018). In the case of Carlo Abel
Company, Partial measures are often used in their operations
management which relates output to a single input, the wood
converted into lumbers and veneers, examples include labor
productivity (output per hour worked, they measure the total
number of lumbers and veneers per labor hour, capital
productivity (output per unit of capital), and energy
productivity (output per joule of energy used).

The researchers argue that firms hoping to improve

their performance may not realize the direct impact coming
from the implementation of TQM practices at the firms’ level.
The results emphasize the importance of quality and the
implementation of TQM in Carlo Abel Mini Sawmill Company. The
literature strongly supports that competitive strategies are
positively related to organizational performance (Chi, 2010;
Jung et al., 2009).

Forecasting

Forecasts are vital to every business organization and

for every significant management decision. According to
Stevenson (2018), forecasts are a basic input in the decision
processes of operations management because they provide
information on future demand. Stevenson, in his book of
Operations Management 13th edition, states that the primary
goal of operations management is to match supply to demand,
having a forecast of demand is essential for determining how
much capacity or supply will be needed to meet demand. Thus,
operations need to know what capacity will be needed to make
staffing and equipment decisions, budgets must be prepared,
purchasing needs information, and other plans. There are two
aspects of forecasts that are important. One is the expected
level of demand; the other is the degree of accuracy that can
be assigned to a forecast. The expected level of demand can
be a function of some structural variation, such as a trend
or seasonal variation.

While a forecast is never perfect due to the dynamic

nature of the external business environment, it is beneficial
for all levels of functional planning, strategic planning,
and budgetary planning. Decision-makers use forecasts to make
many important decisions regarding the future direction of
the organization. As can be gathered from what has gone before
that forecasting is a systematic attempt to probe the future
with a view to drawing certain useful infernos. Such a probing
obviously demands a proper and full analysis of known facts
with the help of various qualitative and quantitative
forecasting techniques. Through the use of forecasting
techniques,

Forecasting techniques and models can be both

qualitative and quantitative and their level of
sophistication depends on the type of information and the
impact of the decision. The forecasting model a firm should
adopt depends on several factors, including forecasting time
horizon, data availability, accuracy required, size of the
forecasting budget, and availability of qualified personnel.

Demand management exists to coordinate and control all

sources of demand so the productive system can be used
efficiently and the product delivered on time. Demand can be
either dependent on the demand for other products or services,
or independent because it cannot be derived directly from
that of other products.

Product and Service Design

Product design is cross-functional, knowledge-intensive

work that has become increasingly important in today's
globally competitive environment, Mark Vonderembse (2015).
Customers demand greater products are quick to shift to new,
innovative, full-featured products. Product design is a
critical factor in organizational success because it sets the
characteristics, features, and performance of the service or
good that consumers demand, Mark Vonderembse (2015). The
resulting product should be competitive or better than
similar products on the market, in terms of quality,
appearance, performance, service life, and price. With the
key stages in the lifecycle of any product and service, it
identifies where products or services are in their lifecycle
is central to your profitability () The lifecycle of a product
or service can be extended by investing in an extension
strategy, increase your promotional spending, introduce minor
innovations by adding extra features or updating the design
and seek new markets.

Organizations have a strategic interest in product and

service design. Product or service design should be closely
tied to an organization strategy. It is a major factor in
cost, quality, time-to-market, customer satisfaction, and
competitive advantage (Stevenson 2018). The introduction of
new products or services or changes to product or service
designs can have impacts throughout the organization and the
entire supply chain. (Stevenson 2018) Developing a successful
product line doesn’t have to capture within a small area of
the market there are practices to bring your product to a
wider market as efficiently and economically as possible.
(Toni Koh 2016) Designers must be careful to take into account
a wide array of legal and ethical considerations. Moreover,
if there is a potential to harm the environment, then those
issues also become important. Most organizations are subject
to numerous government agencies that regulate them. Carlo
Abel mini sawmill strongly complies with government
requirements which lead them to achieved Environmental
Compliance Certificate (ECC)by the Department of Environment
and Natural Resources (DENR) through the environmental
management bureau. Region 13. For Carlo Abel’s Mini Sawmill
they focus only on one product design, demand by their
costumer. The logs are converted into lumbers and veneers and
selling their outputs to Agusan Plywood Corporation (APC) and
RICHMOND Plywood (Stevenson 2018). Obtaining input from
customers is essential to assure that they will want what is
offered for sale. With the help of Quality Function
Development (QFD) it is a structured approach for integrating
the voice of the customers into both product and service
development process and was performed perfectly by Carlos N.
Tanjay the owner of Carlo Abel Mini sawmill which focuses and
strictly monitored every buyers order and demand to improved
its quality to give their customers demand and meet its
satisfaction.
Methods of Quality Control

Quality is a relative concept. Quality is the

performance of the product as per the commitment made by the
producer to the consumer. J.M. Juran (1970). Quality is also
the totality of features and characteristics of a product or
service that bear on its ability to satisfy the given needs
(Samiksha Sawant, 2014) Quality also encompasses people,
process and environment. Stevenson’s in his book of Operation
Management 13th edition, Quality Control is a process that
measures output relative to a standard and takes corrective
action when the output does not meet standards. On the other
hand, Quality Control is used to meet or exceed costumers
requirements and vital in manufacturing businesses. Quality
Control is also the process of verification, or correction of
the quality of the product when deviations are found to be
more than expected.

Quality control is also a strategic decision. It can be

defined as the systematic control of those variables which
are encountered in the manufacturing process and which
adversely affect the excellence of the final product in one
way or other (Dk Sinha, 2014). According to Stevenson 2018,
there are inspection processes where many operations have
numerous possible inspection points. Because each inspection
adds the cost of the product or service, it is important to
restrict inspections effort to the points where they can do
the most good. Some of the typical inspection points are
applied to Carloabel Mini Sawmill even when their process of
quality assurance and control is basic. First is checking raw
materials, their ways of ensuring the quality starts with the
inspection of the logs. This is the phase in which they
checked whether what part of the logs will be used to produce
the veneer, and what will be used to produce the lumbers.
Those logs who are thick and strong enough will be put on to
the process of making lumbers. Second is with their finished
products, they only have a couple of checkers during shipment
of finished lumbers. To make sure to have zero defect
operation the supervision that the team does during the
process of making the products, specifically on making the
lumbers, in which they align the quality to the demand of the
customers, this includes the length, the thickness,
roughness, and the diameter. The inspection will then be
followed after the products have been made. They make sure
that it coordinates to the conditions of the customers. The
last inspection happens before the products will be
transferred to the customers. This kind of inspection
measures, not just the quality but also the quantity of the
lumbers or veneers that will be sent out to the market. When
customers feel that they can count on the consistent quality
of your products, they're more likely to give you their repeat
business. Consistent quality takes hard work, attention to
detail and systems for monitoring and assessing whether your
products meet the standards you have set. Quality control is
an ongoing process that touches everything from purchasing to
manufacturing to distribution (Devra Gartenstein et. Al
2019).

Process Selection and Facility Layout

Operations management is the strategic administration of

production processes and personnel to maximize output,
minimize errors and continually enhance product quality, this
is according to Ingram, D. (2017). Facility layout refers to
the way in which work stations, equipment, machinery, and
employees are positioned within a work facility. Process
selection involves strategically choosing which types of work
processes to include in the production of a product. Process
selection and facility layout are both important elements of
operations management. Understanding the basics of each and
their correlation can help you to design more efficient
production processes. The process converts inputs into
outputs; they are the core of the operation management. But
the impact of process selection goes beyond operation
management. It affects the entire organization and its
ability to achieve its mission, and it affects the
organization’s supply chain, (Stevenson 2018).

Business owners have a range of options to choose from

when it comes to designing their facilities layouts,
depending on the total size of the buildings, yards and other
spaces they have to work with. Operations managers set up
production facilities in such a way as to minimize the travel
or holding time of semi-finished goods between different
stations. Noise and air pollution can be a large factor in
certain businesses while it may be convenient to locate a
large number of work stations in a small area, you may need
to spread things out to maintain a safe and healthy work
environment (Ingram, D. (2017). In a wood industry like
Carloabel, it is easy to hypothesize their manner of
production is continuous because it is a raw material type of
a product, their manner in producing their products are
through Job Shop process both lumber and veneer products.
This business only makes yield products when there is a demand
from its customers. Choosing the right processes and laying
out processes in the most efficient manner can increase
production output, decrease operational costs and enhance
product quality - the ultimate goals of operations
management. Operations managers continually re-evaluate their
production setups to look for opportunities to save money or
boost production effectiveness ibit.

Work Design and Measurement

Satisfying the employees is one of the most challenging

tasks for an organization or company. In order to increase
efficiency, effectiveness, productivity and job commitment of
employees, the organization must satisfy the needs of its
employees by providing good working conditions. Concurring to
Vroom (1964), job satisfaction is an orientation of emotions
that employees possess toward the role they are performing at
the workplace. Job satisfaction is a crucial element for
worker motivation and encouragement towards achieving better
performance. Hoppok and Spiegler (1938) characterize job
satisfaction is an integrated set of psychological,
physiological and environmental conditions that empower
workers to confess that they are satisfied with their jobs.
Clark (1997) also argued that in the event that workers are
not satisfied with the jobs given to them, then they are not
certain about the factors such as their rights, working
conditions are unsafe, co-workers are not cooperative,
supervisor is not giving them regard that they want and they
are not considered within the decision-making process,
resulting them to feel that they are not part of the
organization anymore. In terms of the working condition, it
comprises two broader dimensions such as work and context.
Work includes all the distinctive characteristics of the work
as the way work is carried out and completed. It also involves
tasks, like task training activities and a sense of
accomplishment from work (Sree, R. N. B., & Satyavathi, R.,
n.d.)

The working environment has a positive impact on the job

satisfaction of the employees. A bad working condition
prevents the employee to portray their true capabilities and
they can’t attain fulfillment. (Raziq, A., Maulabakish, R.,
2014)

Work motivation is a set of energetic forces that

originate within and beyond an individual’s being to
establish work-related behavior. Work motivation also
influences the commitment of an employee to the organization
or workplace. Commitment is a vital element in an organization
and it depends on the activities and roles produced by the
employees in the organization. If they are committed, there
are fewer possibilities that they will leave the company.
Hence, the motivation that is created from within an
individual and causes them to be internally encouraged is
called intrinsic motivation. It is the most important reward
because it is through this kind of natural motivational
tendency that human development and social and physical
abilities will be more enhanced. Some said that there are
external factors that also motivate an employee to work hard.
It is called the extrinsic reward. That reward involves every
activity undertaken to achieve distinguished results than the
activity itself. Extrinsic motivation can be referred to as
a desire to meet the needs and wants that are not basically
related to the work itself.

The committed worker is a team player, who is willing to

make personal sacrifices for the goal of the company. There
is a relationship between work motivation and organizational
commitment. Organizational commitment brought a big influence
on the success of the organization. Having good work
motivation among employees may contribute to a full
commitment to working as employees feel that they are part of
the organization. (Mat Salleh, S., Zahari, A., MohdSaid, N.,
Omarali S., 2016)

Inventory Management

All organization keeps an inventory, that includes

the company’s raw materials, work-in-process, supplies used
in the operations, and especially the finished goods.
Inventory falls in the ordering costs and holding costs.
Holding costs include the cost of capital tied up in the
inventory, storage cost, and cost of handling the product
such as equipment, warehouse, and stock-keeping staff,
wastage and taxes. In the case of ordering cost, it includes
the salaries of those purchasing the product, costs of
expediting the inventory, and so on.

An organization obtains and holds inventory for some

important reasons. First is for predictability; to engage in
capacity planning and production scheduling, an organization
needs to control how much raw materials and how many parts
and subassemblies they have to process at a given time. Second
is for the fluctuating demand; it is not necessary that
organizations must know how much they are going to need at
any given time, but instead, they still need to satisfy
customer or production demand on time. The third is the
unreliability of supply; inventory protects the organization
from unreliable suppliers or when an item is scarce or a
steady supply is difficult to ensure. Fourth is the price
protection; buying quantities of inventory at appropriate
times helps avoid the impact of cost inflation. The fifth is
quantity discounts; often bulk discounts are available if
organizations buy in large rather than small quantities.
Sixth is lower ordering costs; if the organization buys a
larger quantity of an item less frequently, the ordering costs
are less than buying smaller quantities (Muller, M. 2019)

Inventory management can make or break a business. It is

often the largest item in the current assets account on a
balance sheet. Issues in inventory management contribute to
business losses and even failures. This management is all
about the balance of the overstock and stockout. When a
business invests in more inventory than more than it can sell
(overstock), it creates a deficit in the budget. In that case,
the business has to deduct the costs of the excess inventory
from profits. They cannot sell the inventory, and they cannot
get a refund from the manufacturer. Failing to have inventory
and finished products on hand to meet customer demands
(stockout) can also hurt business. The company may lose a
sale if they don’t have enough inventory to fill a customer
order.

An efficient inventory management system accurately

forecasts how much inventory a company will need based on
sales activity. In that way, a company can place orders
accordingly to prevent overstock and stockout. They must
understand how much demand consumers have for a product as
well as the product’s depreciation rate. The company must
also consider the costs of storing items, the expense of
keeping inventory on hand, counting, and handling it. (DSD,
Business Sytems, 2017)
 According to Stevenson (2018), management has two basic
functions concerning the stock. One is to set up a framework
to keep track of items in inventory and the other is to form
a decision on how much and when to order. To be successful,
the management must have a framework to keep track of stock
in hand and on order. A reliable forecast of demand that
includes an indication of possible forecast error. Next is to
have information on lead times and lead time variability.
Then, there is a sensible estimate of stock holding costs,
ordering costs, and shortage costs. Lastly, a classification
framework for stock items.

Supply Chain Management

A supply chain is the connected network of individuals,

organizations, resources, activities, and technologies
involved in the manufacture and sale of a product or service
(Hayes, 2019).

It is the flow of goods and services transforming raw

materials into products. According to Hayes in his article
(2019), improvements in productivity and efficiency go
straight to the bottom line of a company and have a real and
lasting impact. Good supply chain management keeps companies
out of the headlines and away from expensive recalls and
lawsuits. The Global Supply Chain Forum identified eight key
processes that make up the core of supply chain management
[5]: • Customer Relationship Management • Customer Service
Management • Demand Management • Order Fulfillment •
Manufacturing Flow Management • Procurement • Product
Development and Commercialization • Returns, (Croxton K.,
García-Dastugue S., and Lambert, D. 2001.
 Customer Relationship Management is a process companies
use to understand their customer groups and respond quickly—
and at times, instantly—to shifting customer desires. (Bain
& Company, 2018) It allows organizations or companies to
collect various data before carrying out strategies based on
that data gathered. It also allows companies to gather new
insights and use them to their advantage. Through Strategic
Planning Croxton K., García-Dastugue S., and Lambert, D.
(2001), stated that at the strategic level, the customer
relationship management process provides the framework for
managing relationships with customers. Carloabel Mini Sawmill
strongly emphasized their Public Relations between their
suppliers, customers, and their employees and the
organization. Their aim is to inform and ultimately persuade
them to maintain a favorable and positive view of the
organization. The role of public relations is to help build
the firm’s brand equity by delivering key messages to target
audiences to elicit a particular response and thus shape
public opinion, attitudes, and beliefs. (Rubel, Esq, G.
2017.) Carloabel’s short term plan is to give back to the
community and build stronger relations within the
organization. Being a small company is an advantage for the
owner of the business since it gives him the opportunity to
personally talk and manage the business relations himself.
Carloabel’s owner is very hands-on in terms of the logistics
of the company. Personally checking the inputs or the logs
inbounded from their suppliers which are the Lanyong, Ellen
Gonzaga which are reliable suppliers and have been their
suppliers since and selling their outputs which are the
veneers and lumbers to Agusan Plywood Corporation (APC) and
RICHMOND Ply. Carloabel also exports its product and was able
to do so due to the owner’s strong logistic skils. Carloabel
rarely keeps extra wood inventories since wood is a fragile
material to keep that can easily be ruined by termites and
other natural causes. The materials needed for the production
will only be ordered if there is demand from the customers.

Hayes (2019), further discussed that SCM oversees each

touchpoint of a company's product or service, from initial
creation to the final sale. With so many places along the
supply chain that can add value through efficiencies or lose
value through increased expenses, proper SCM can increase
revenues, decrease costs, and impact a company's bottom line.

Location and Planning

The business location affects all areas of the business

and so choosing one is vital. Finding the right location can
be very difficult. Although having the right one doesn’t
guarantee success but having the wrong location guarantee
failures. Your business location sets the tone for your
business. It adds to what customers think of your business.
The business location determines how well you will do.
(DeWitt, 2017).

According to Rivera J. in her article, in choosing a

business location the following factors must be considered.
First is the location of the source of raw materials, its
necessity, perishability and transportation cost. Second, the
location of markets whether the organization is located near
the market they intended to serve. The third is the Labor
Factors where the cost and availability of labor, wage rates
in the area, labor productivity and attitudes toward work are
the primary labor considerations that can be a serious
potential problem for the business. Lastly, climate and taxes
also play a role in location decisions. Carloabel Mini Sawmill
is located in Bingkilan, Butuan City alongside the river banks
of Agusan. Carloabel is not the only wood industry in the
area, a few blocks away is the location of Orgon Wood
Industries Inc. which had already made a name in the business.
Despite the competitiveness in the area, Carloabel is the
provider of veneers and calls to order lumbers for other wood
industries and was still able to make a mark to their
suppliers and customers by making sure that the product is of
the best quality.

According to Buelow, D. a Principal with Deloitte

Consulting LLP’s Global Expansion Optimization practice,
Knowledge of logistics, human resources, real estate, tax,
financing, infrastructure, construction, incentives, and
environmental considerations has become more important as the
complexity of location strategy increases.
 ASSESSMENT OF OPERATION

C
Topic Correct Process Actual Process or
NC

COMPETITIVENESS, STRATEGY, AND PRODUCTIVITY

How do you The book of Stevenson Carloabel Mini C

address to the (2018) entitled Operations Sawmill, still being a
existing Management thirteenth growing business

competition you edition, positions that enterprise, is very

companies must be much eager in terms of
have in the
competitive to sell their the marketing
industry?
goods and services in the influence for its
marketplace. It suggests competitiveness. It
two (2) factors that may keenly identifies
impact competitiveness in consumer wants and/or
a business, one is the needs in a way that it
marketing influence and perceives the
the other is the customers as their
operation’s influence. boss and obediently do
Marketing Influence their demands. The
includes identifying business also
consumer wants and/or rubberized their
needs, pricing, and prices in terms of
advertising and promotion. pricing strategy in
On the other hand, the order to alter it in a
operation’s influence way that it would fit
includes product and the conditions of the
service design, cost, customer and to the
location, quality, quick necessity of the
response, flexibility, business itself.
inventory management, Lastly, on to the
supply chain management, Advertising and
 service, and managers and promotion, the
workers. business has been
combative in sales
taking and convincing
other manufacturing
companies to be the
outlet of Carloabel’s
products and services.

What is the A mission is a reason At Carloabel C

optimum mission for an organization’s Mini Sawmill, its

of your existence. On the views of optimum mission is to

business? How Stevenson (2018), the help jobless
business’ mission is individuals in the
do you make the
stated in a mission community in which
mission come in
statement in which it they are planted. In
to reality?
serves as the basis for order to carry out
organizational goals. To this mission, they
transform missions and have applied the
strategies into action, process of Balanced
businesses may apply the Scorecard. Out of the
Balanced Scorecard that is four perspectives that
a top-down management are intended to
system. Its idea was to balance, Carloabel
move away from a purely Mini Sawmill managed
financial perspective and to apply three out of
integrate other four which are the
perspectives such as efficiency of internal
customers, internal business processes,
business processes, and financial
learning and growth. performance, and
customer and
stakeholder
satisfaction. On the
 efficiency of internal
business processes,
Carloabel has made
sure that they are
adequate enough in
handling their
business operations by
dividing the sectors
of their processing
department into the
function it
undertakes. For the
financial performance,
the proprietor
himself, Mr. Carlos
Tanjay is very keen
and wise in terms of
spending, pricing, and
managing their
financial resources.
Lastly, this business
puts emphasis on the
satisfaction of the
customers through
reinforcing to their
variety of demands and
needs.

What are your Traditional At Carloabel Mini C

strategies to strategies business Sawmill,
of they have
complied with this kind
keep your organizations have tended
to emphasize cost of strategies wherein
operations and
minimization or product they really have put
your business
minimization, this is emphasis on the quality
of products that they
in smooth- according to Stevenson produce for the

sailing? (2018). While not customers. According to

abandoning those the owner, he himself,
strategies, many together with his

organizations have checker, checked for

embraced strategies based the diameter, the
thickness and the
on quality and time. The
individual capacities
quality-based strategies
of both of their
focus on maintaining or
products, the lumbers
improving the quality of an
and the veneers. Also,
organization’s products or
in terms of the time-
services. It is generally
based strategies, the
a factor in both attracting
business enterprise
and retaining customers.
have really put
On the other hand, Time- significance unto this.
based strategies focus on In order to cope up
reducing the time required with the demand of the
to accomplish various customers, they make
activities such as to sure to deliver the
develop new products or products on the day
services and market them, that they have promised
respond to a change in and the customer had
customer demand, or demanded to. For
deliver a productor actualization,
perform a service. By doing whenever there is a
so, organizations seek to bulk demand from

improve service to the customers, the business

hires more employees
customer and to gain a
that is enough to
competitive advantage over
accomplish and deliver
rivals who take more time
the demand
to accomplish the same
appropriately on time.
tasks.
Can you say Productivity The Carloabel NC
that your according to Stevenson Mini Sawmill can

business is (2018), is a measure of the expressly say that

in effective use of their business is

productive
resources, usually productive in terms of
terms of
expressed as the ratio of production. However,
production? How
output to input. It is they failed to
can you say so?
usually expressed as the numerically measure
ratio of output over the their productivity
input. The choice of because they just
productivity measure measure it through
depends primarily on the having their
purpose of the continuance in the
measurement. It may be in industry and through
terms of labor making sure that they
productivity, machine adhere and fulfill to
productivity, capital the demand and request
productivity, energy of their customers.
productivity, or can be a
multifactor productivity.

FORECASTING

How many Forecasts are a At Carloabel C

finished goods basic input in the Mini Sawmill, the

(lumbers) can decision processes of average cubic meter

you produce in operations management that they can produce

because they provide in a day is 30 cubic
a day? In a
information on future meter which can turn
week? In a
demand. Based on the views into 7000 – 8000 board
month? In a
of Stevenson (2018), The feet of veneer or
year? importance of forecasting logs. The above-
to operations management mentioned numbers
cannot be overstated represents their daily
 because its primary goal rated capacity. In
is to match supply to order to induce to
demand. In terms of those amounts, the
production, forecasting business uses
the number of products information that they
that needs to be produced obtained through the
requires information that demand of their
are timely, accurate, customers and the
reliable, meaningful availability of their
units, should be in raw materials, both
writing, the forecasting from their storage and
technique that will be from their key
used should be simple to suppliers. These
understand and use, and information are
the forecast should be sometimes not in the
cost – effective. form of writing
because they already
utilize mobile phones
which are highly
accessible, however it
still assures
timeliness,
accurateness, and
reliability in order
to for them to conform
it through their
production.

How do you Accurate forecast is Carloabel Mini NC

forecast the very important for the Sawmill unfortunately

number of supply chain because do not forecast

having inaccurate beforehand the number
products
forecasts can lead to of products that they
(lumbers) that
shortages and excesses will produce. They
your company
will produce in throughout the supply just rely on to the
a day? In a chain. Stevenson (2018) demand of their

week? In a suggests approaches to customers in order to

a forecasting. He had stated decide on how many

month? In
that there are two general board feet of products
year?
approaches which are to produce. At times,
qualitative and they may be applying
quantitative. However, he the seasonal
also had introduced three variations under the
forecasting techniques time – series
that might be used to forecast, however this
develop a forecast. These can be applied to one
techniques are namely: or more customers only
Judgmental forecasts, Time and do not cater the
– Series forecasts, and entirety of their
associative models. production.
Judgmental forecast uses
subjective inputs such as
opinions from consumer
surveys, sales staff,
managers, executives, and
experts. Time – Series
forecast project patterns
identified in recent time-
series observations.
Lastly, Associative Model
uses explanatory variables
to predict future demand

METHODS OF QUALITY CONTROL

How do you make Quality control, as At Carloabel C

sure that the defined by Stevenson Mini Sawmill their

products you (2018), is a process that process of quality

evaluates output relative assurance and control
are producing to a standard and takes is primitive. With the
are of good corrective action when owner himself, and

quality? output does not meet just a few checkers,

standards. His book also it already consists
introduced approaches to the team which insures
quality insurance which the overall quality of
are: Inspection, Process their products that
Control which consists of will be enjoyed by
inspection and corrective their customers. Their
action during production, ways in insuring the
and lastly, Continuous quality first starts
improvement which is the with the inspection of
quality built into the the logs which they
process. Along with is the obtain from their
guidelines in where plantation or from
business should inspect their key suppliers.
which are simultaneously Next is the scrutiny
the following: Raw they do after cutting
Materials and Purchased the logs. This is the
parts; Finished products; phase in which they
Before a costly operation; checked whether what
Before an irreversible part of the logs will
process; and Before a be used to produce the
covering process. veneer, and what will
be used to produce the
lumbers. Initially,
those logs who are
thick and strong
enough will be put on
to the process of
making lumbers. Next
is the supervision
that the team do
during the process of
 making the products,
specifically on making
the lumbers, in which
they align the quality
to the demand of the
customers, this
includes the length,
the thickness,
roughness and the
diameter. The
inspection will then
be followed after the
products have been
made. They make sure
that it coordinates to
the conditions of the
customers. The last
inspection happens
before the products
will be transferred to
the customers. This
kind of inspection
measures, not just the
quality but also the
quantity of the
lumbers or veneers
that will be sent out
to the customers.

PROCESS AND LAYOUT SELECTION

How do you Process selection and In a saw mill and C

decide on the facility layout define the wood industry, it

way of manner of production a would be easy to

business enterprise will hypothesize that their
producing adopt in order to manage manner of production
goods/products? their operations. is continuous because
According to Stevenson it is a raw material
(2018), process selection type of a product.
and capacity planning However at Carloabel
influence system design. Mini Saw Mill, their
There are four basic manner of producing
process types which are the their products, both
following: Job Shop, a the veneer and the
small manufacturing unit lumbers are through
that makes specific the Job Shop process.
products for one customer This business
at a time; By Batch, goods enterprise only make
are produced in groups and yield products
(batches) and not in a when there is a demand
continuous stream; of it from their key
Repetitive, production of customers. This is
goods in rapid succession. because most of their
Goods that are created customers are
through repetitive companies who also
manufacturing follow the produce wood related
same production sequences; products. These
and lastly, continuous, companies demand large
continuous physical flow quantity of products
of materials. It makes use that are being
of special purpose customized based on
machines and produces the needed criteria
standardized items in for their production.
large quantities.

PRODUCT AND SERVICE DESIGN

What techniques One of the concepts Along the C

do you apply in in the Product and Service process of turning the
Design is the value inputs to outputs, the
order to analysis that can be proprietor himself of
improve your applicable to the Carloabel Mini Sawmill

product and business. According to examines each of the

service design? Stevenson (2018), it is the components of the

examination of the process. The logs are
function of parts and individually inspected
materials in an effort to to oust defective ones
reduce cost and/or improve and to refrain from
product performance. It producing damaged
breaks down a product or products and to
service into components, eliminate further
it enables the unnecessary costs. He
organization to analyze also scrutinizes the
each component on its own, process in order to
evaluating its importance make sure that the
and efficiency. best quality of
products that aligns
with the requirements
are being delivered to
the customers.

WORK DESIGN AND MEASUREMENT

How many A business cannot Carloabel Mini C

workers and work its function without Saw Mill has

employees do its people which are mainly approximately fifty

you have? What composed of employees (50) workers and

and/or workers. Stevenson employees in a normal
are their
(2018), introduced job range of operation.
specializations
design in which it involves The specifications in
in work areas?
specifying the content and work areas are the
methods of jobs. It following: employees
focusses on what will be assigned in the
done in a job, who will do office; workers
the job, how the job will assigned at the
 be done, and where the job cutting area; checkers
will be done. The who distinguish what
objectives of job design to be used in
include productivity, producing veneers and
safety, and quality of work lumbers; another a
life. Under the behavioral bunch of workers
approaches to Job design assigned at the lumber
are job enlargement which section; workers
gives worker a larger assigned at the veneer
portion of the total task, section; freighters
by horizontal loading, job who loads the finished
rotation, wherein Workers products; and drivers
periodically exchange who transfers the
jobs, and job enrichment products from their
which increases location to the key
responsibility for customer’s location.
planning and coordination In order to cultivate
tasks, by vertical the behaviors of the
loading. employees, the
business enterprise
uses job enrichment in
which workers are
given the opportunity
to manage and to be in
control with the
processes they have in
their specific job.

How do you Motivation is a key To manage and C

manage your factor in many aspects of keep the employees
employees and work life. Not only can it and workers of
influence quality and
how do you Carloabel Mini Saw
productivity, it also
motivate them? Mill in harmonious
contributes to the work
track, the
 environment. Based in the proprietor or the
views of Stevenson (2018), manager himself uses
people work for a variety compensation as
of reasons in addition to
financial reward,
compensation. Other
and exudes trust as
reasons include
they execute their
socialization, self-
assigned jobs and
actualization, status, the
physiological aspects of
tasks.

work, and a sense of

purpose and
accomplishment. Awareness
of these factors can help
management to develop a
motivational framework
that encourages workers to
respond in a positive
manner to the goals of the
organization.

INVENTORY MANAGEMENT

How do you Based on the views of CarloAbel Mini C

manage your Calderon (2017), Just-in- SawMill work under the
inventory? Is time (JIT) stock could be “make-to-stock”
a strategy that strategy, because they
it secured?
manufacturers utilize to create products based
decrease waste by on the demand of the
receiving goods only as customers. Stocking
they are required in the excessive amounts of
market, thereby reducing finished wood products
the cost of inventory. such as lumber and
Critically, producers must veneer, reduces profit
estimate their because storage costs
requirements accurately.
 This a strategy were a for the inventory of
producer makes as what is goods.
required, as it were when
it is needed.

How can you An accurate inventory In order to keep

identify that monitoring is needed to track of the
C
you are already know what products or inventory, CarloAbel

in the need of materials needed to be Mini Sawmill is

bought and maintain. performing inventory
ordering raw
According to Stevenson counts. The
materials?
(2018), a perpetual organization has
inventory system keeps continuous monitoring
track of removals from of inventory
stocks on continues basis, withdrawals where they
so the system can give performed a physical
information on the current count of inventories
level of stock for each to verify records of
item. products.

SUPPLY CHAIN MANAGEMENT

Explain your A supply chain is the Carloabel Mini

supply chain connected network of Saw Mill strongly
individuals, emphasized their C
management.
(This includes organizations, resources, Public Relations
activities, and between their
your suppliers,
technologies involved in suppliers, customers
the process of
the manufacture and sale of and their employees
converting your
a product or service and the organization.
raw materials (Hayes, 2019). It is the Their aim is to inform
to finished flow of goods and services and ultimately
goods, and the transforming raw materials persuade them to
key customers into products. According maintain a favourable
which you sell to Hayes in his article and positive view of
your products (2019), improvements in the organization. The
to.) productivity and role of public
efficiency go straight to relations is to help
the bottom line of a build the firm’s brand
company and have a real and equity by delivering
lasting impact. Good key messages to target
supply chain management audiences to elicit a
keeps companies out of the particular response
headlines and away from and thus shape public
expensive recalls and opinion, attitudes and
lawsuits. The Global beliefs. (Rubel, Esq,
Supply Chain Forum G. 2017.) Carloabel’s
identified eight key short term plan is to
processes that make up the give back to the
core of supply chain community and build
management which are: stronger relations
Customer relationship within the
management; Customer organization. Being a
service management; Demand small company is an
management; Order advantage for the
Fulfilment; Manufacturing owner of the business
flow management; since it gives him the
Procurement; Product opportunity to
development and personally talk and
commercialization; returns manage the business
(Croxton K.,García- relations himself.
Dastugue S., and Lambert, Carloabel’s owner is
D. 2001). Customer very hands-on in terms
Relationship Management is of the logistics of
a process companies use to the company.
understand their customer Personally checking
groups and respond the inputs or the logs
quickly—and at times, inbounded from their
instantly—to shifting suppliers which are
customer desires. (Bain & the Lanyong, Ellen
Company, 2018) It allows Gonzaga which are
organizations or companies reliable suppliers and
to collect various data has been their
before carrying out suppliers since and
strategies based from that selling their outputs
data gathered. It also which are the veneers
allows companies to gather and lumbers to Agusan
new insights and use them Plywood Corporation
to their advantage. (APC) and RICHMOND
Through Strategic Planning Ply. Carloabel also
Croxton K.,García-Dastugue exports their product
S., and Lambert, D. (2001), and was able to do so
stated that at the due to the owner’s
strategic level, the strong logistic skils.
customer relationship Carloabel rarely keeps
management process extra wood inventories
provides the framework for since wood is a
managing relationships fragile material to
with customers. keep that can easily
be ruined by termites
and other natural
causes. The materials
needed for the
production will only
be ordered if there is
demand from the
customers. Hayes
(2019), further
discussed that SCM
oversees each touch
point of a company's
product or service,
from initial creation
 to the final sale.
With so many places
along the supply chain
that can add value
through efficiencies
or lose value through
increased expenses,
proper SCM can
increase revenues,
decrease costs, and
impact a company's
bottom line.

AGGREGATE PLANNING AND MASTER SCHEDULING

How do you Based on the book of At Carloabel C

manage and Stevenson (2018), Mini Sawmill, they

schedule the Aggregate planning is obliquely applied the

projects you intermediate-range demand and capacity

capacity planning that technique under
have for the
typically covers a time Aggregate Planning.
business?
horizon of 2 to 12 months, This business entity
although in some companies only perform work when
it may extend to as much as there is a demand,
18 months. It is hence it alters its
particularly useful for capacity or the supply
organizations that options such as :
experience seasonal or Hiring workers when
other fluctuations in the demand is at peak
demand or capacity. or layoff when it is
Aggregate planning at base which results
strategies can pertain to to having part – time
demand, capacity, or both. workers; It also
Demand strategies are applies overtime or
intended to alter demand so slack time when highly
 that it matches capacity. needed for the
Capacity strategies demand’s operation;
involve altering capacity Inventories are also
so that it matches demand. being altered on the
Mixed strategies involve basis of the inputs
both of these approaches. needed for the demand,
and if more products
are highly demanded,
the business sometimes
rely on outsourcing or
subcontracting.

LOCATION PLANNING AND ANALYSIS

Existing
How did you organizations may need to Carloabel Mini C
plan and make location decisions for Sawmill is being owned
identify the a variety of reasons. by an individual who
once dreamt of having
location of Location decisions are
closely tied to an its own business, that
your business?
organization’s strategies. is why his reason for
Stevenson (2018) have identifying the
identified the general location of the
procedure for making business was duly
location decisions. The because it is within
general procedure for the hometown of the
making location decisions owner. Albeit distant
usually consists of the from the real reason
following steps:
behind, it can also be
1. Decide on the
observed that although
criteria to use for
it was within the
evaluating location
hometown of the owner,
alternatives, such as
the business was
increased revenues,
situated in a river
decreased cost, or
bank which can be used
community service.
as a way of cutting
 2. Identify important cost wherein it can be
factors, such as location of used as a way to
markets or raw materials. transport the inputs
The factors will differ (logs) from its
depending on the type of plantation or
facility. For example, suppliers.
retail, manufacturing,
distribution, healthcare,
and transportation all have
differing factors that
guide their location
decisions.
3. Develop location
alternatives:
a. Identify a country
or countries for location.
b. Identify the
general region for a
location.
c. Identify a small
number of community
alternatives.
d. Identify site
alternatives among the
community alternatives.
4. Evaluate the
alternatives and make a
selection.

Are you in Under the General Carloabel Mini C

accordance with Procedure for Making Sawmill, along with the

the regulation Location Decisions from other businesses under

the Wood Industry have
of the Stevenson (2018), it was
stated that under ideology faced a dilemma around
government? How
of identifying a country, early 2000’s in which a
stricter and scrupulous
a business who wish to
do you comply locate within a country regulations among

so? must conform to the loggings have been

regulations set the implemented.
by Many
Government. A few of these business entity have
are the following: closed, yet Carloabel
Policies on foreign Mini Sawmill one among
those who stand firm in
ownership of production
the industry. The
facilities; Local content
business entity have
requirements; Import
conformed and duly
restrictions; Currency
complied with the
restrictions;
regulations set by the
Environmental regulations;
government and by the
Local product standards;
environmental
Liability laws; and lastly
regulations. A
the Stability issues. validation and
verification to this is
the Environmental
Compliance Certificate
(ECC) Number – ECC-R13-
1801-0001 issued under
Presidential Decree
1586 which certifies
that the business have
been granted by the ECC
to conduct its
operations.

What are your Social responsibility Carloabel Mini C

ways to give benefits businesses of all Sawmill promotes a

back to your sizes but it is essential good relationship with

when you’re a small the community they are
stakeholders,
business that is closely situated with. They
specifically to
tied to the community, this frequently sponsor
the community
is according to Rampton some events in the
your business
(2017). Giving back helps community and often
were being attract new customers and times help in times of
surrounded to? employees while makes calamity. They also
business owners happier accept small amount of
and healthier. He have solicitation in order
introduced the following to cater people who
ten (10) ways on how small are in need of
business can give back: financial support.

1. Make A Plan
2. Encourage your team
to volunteer.
3. Buy from neighboring
Small Businesses.
4. Share your skills and
experiences
5. Sponsor a youth
sports team.
6. Sponsor an event.
7. Launch a charity
drive.
8. Put a collection jar
on the counter.
9. Make giving back part
of your referral
program.
10. Consistently
give a little.
 CONCLUSION

Administering a business’s management and its operations

is both an honor and a responsibility. It demands commitment,
courage, discipline, and knowledge and ideas in terms of
governing the business operations. Grasping philosophies and
familiarities with the operations management and total
quality management can be a great benefit to aid business
complications and dilemma. With what had happened to
Carloabel Mini Sawmill, they may have encountered obstacles
internally, through its ways of supervising and conducting
its business operations, and externally related problems,
such as the strict governmental and environmental regulations
for their course of business, they still had stand firm and
maintained to be one of the toughies who remained in the wood
industries in Butuan City. It can be concluded that aside
from complying with the requirements of the government and
other environmental advocates, a major contributor to
Carloabel Mini Sawmill’s existence to the industry is its
ways of managing its operations and its eagerness in
satisfying its customers and stakeholders. This business
entity may still be small-scale, yet it produces raw materials
that are highly demanded by big local companies and other
individual consumers which provides it an opportunity to
cultivate and develop its business strategies and operations
in order to expand and to widen its customer shareholdings.
 RECOMMENDATIONS

Grounded by the operation assessment that has been

conducted to the Carloabel Mini Saw Mill based on the theories
of the course Operations Management and Total Quality
Management, the following are the recommendations that can be
suggested to the said firm in terms of the following topics:
Competitiveness, Strategy, and Productivity; Forecasting; Product
and Service Design; Methods of Quality Control; Process
Selection and Facility Layout; Work Design and Measurement;
Inventory Management; Supply Chain Management; and the
Location and Planning.

Competitiveness, Strategy, and Productivity

In terms of marketing, since Carlobel is still a small

company it needs to expand or widen their range of customer
and should promote and market their products more often than
they should in order for them to also expand their business
and at the same time be exposed to the nature alongside with
the high rolling companies.

Carloabel Mini Sawmill also lacks the mission and goal

in which employees actions must align with. The business
focuses on the employee satisfaction rather than the
organizations success. They must integrate a mission and goal
for the future of the company rather than focusing on the
present.

Carloabel lacks strategies in terms of the operation of

their business. They must include strategies in how to handle
the operation during an abrupt or immediate orders from
customers. They should implement a strategy for specific
situations in the business.

Forecasting

Forecasting is estimating or matching the supply to the

customers demand and at Carloabel, they must have extra
inventories to keep in case of unforeseen events or any
changes in customer orders. Since they only provide the exact
number the customer demanded it is much safer and more
convenient to keep extra inventories at hand.

Product and Service Design

Carloabel needed to improve their product by thinking of

ways on how to minimize waste and how to decrease defects.
Either changing or improving the ways of their production
process or changing the position or layout of their machines
or processing area.

Methods of Quality Control

Because Carloabel is a small business its methods of

quality control is primitive and simpler in which the owner
himself, hands on, checks the product before releasing them.
We recommend that they hire a Quality Assurance Manager in
order to correctly and consistently improve their product.

Process Selection and Facility Layout

Carloabel being a small business still needs to

understand how facility layout can affect the business.
Proper allocation of spaces or layout of equipment and
materials can create a smooth flow of operation.
Work Design and Measurement

Although Carloabel have already specified the diffirent

job positions they have yet to use the different methods under
under behavioral approach.

Carloabel’s owner sometimes find it difficult to control

and measure the employee’s consistency since the workers they
hire are those who are within the community in which those
workers are not regularly hired by them. Before hiring, the
company must do a background check to ensure that the worker
will perform well and will help the organization to succeed.

Inventory Management

Carloabel is under “make-to-stock” in which the owner

also stated that they do not keep inventories with them. Their
suppliers will deliver the raw materials whenever their
customer would make an order. In this case, whenever there is
a change of plan or unforeseen events that would cost a loss
or inadequate number of logs, Carloabel would have to expense
additional cost thus keeping extra inventory of logs can save
the business of great expense.

Supply Chain Management

Aside from Personal Relations the company must also

regularly check its resources, activities and technological
advancement of the organization to better improve the
production of the organization.
Location and Planning

Carloabel Mini Sawmill’s production process for timbers

is situated in another area away from the veneer production
process. It would be convenient if both production process,
for timbers and veneers, is situated in one large area instead
of processing the veneer across the street. They are situated
along the riverbank of Agusan which can be an advantage but
the downside is that within the area there are also a handful
of competitors thus it is somewhat difficult for Carloabel
who is still a small wood processing business.
 BIBLIOGRAPHY

Anastasia. 2016. Operations Management: Definition, Principles,

Activities, Trends. CleverIsm. Retrieved on September 29,
2019 from: https://www.cleverism.com/operations-
management-definition-principles-activities-trends/

Bain&Company. (2018). Customer Relationship Management.

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 APPENDICES

Appendix A: Letter of Request

Appendix B: Interview Questionnaire
Appendix C: Transcribed and Translated Interview Recording

1. What is your business all about?

Answer: “Mini sawmill and veneering, in veneering we produced
or processed plywood from raw materials. My business is wood
industry to produce raw materials for plywood products.”
2. Name all the products that your business is producing.
Answer: “We have planted species of falcata, gmelina,
manguim, which will be cut into logs then be processed into
lumber and sticks which are raw materials for the making of
plywood.”
3. What is the background or history of your business?
Answer: “We started from the bottom, strive hard until we
became successful. We started from far flung area until we
came here in 2005 and rented “bansohan”, until we finally
bought our own.
4. What is the optimum mission and goals of your business?

Answer: “...to help the people in the community get a job and
have a source of income.”

5. How do you address to the existing competition you have in the

industry?
Answer “it depends on the sales talk to the buyer,
establishing good relationship to the plantation or to the
supply chain to have a better quality product in exchange.”
6. What are your strategies to keep your operations and your
business in smooth-sailing?
Answer: “through conducting a feasibility study to have a
better idea on how to properly management the operation,
having feasibility study is our strategy.”
7. Can you say that your business is productive in terms of
production? How can you say so?
Answer: “because of the feasibility study I have conducted,
our company has always been productive, and we can formulate
 strategy which helped our company grow to what it is now. One
of our strategies is to promote our spiritual relationship
with God by praying for guidance, establishing good
relationship with our suppliers, the management, buyer, and
workers.”
8. How many finished goods (lumbers) can you produce in a day? In
a week? In a month? In a year?
Answer: “it depends on the market demand, if the demand is
higher, we will have to work with it overtime, we have daily
rated capacity production every day, 30 cubic meter are
consumed daily, logs are processed into lumbers in a 7,000-
8,000 board feet daily rated capacity.”
9. How do you forecast the number of products (lumbers) that your
company will produce in a day? In a week? In a month? In a
year?
Answer: “it depends on the market demand, if there is demand
we work overtime”
10. What are your methods of quality control? (How do you make
sure that the products you are producing are of good quality?)
Answer: “I always make sure that the quality assurance should
know about the exact thickness, lessen the defects, and
maintain good quality, so we have quality control. There is
no permanent thickness because it will depend on the buyer’s
preference.”
11. Do you systematically measure the level of customer
satisfaction and loyalty for the improvement of product
processes?
Answer: “We provide good quality products, both sides were
satisfied, between the buyers and the management because we
always follow their preferences, which will lead to a positive
feedback that they are satisfied with our products and
services. Also, because of quality control, there is
feedback, and we always follow what they want.
12. What techniques do you apply in order to improve your product
and service design?
Answer:”in wood industry, we have the same techniques,
depending on the buyer; my technique is to monitor the buyer’s
order. We always improve the quality for them to become
satisfied with our products.”
13. How do you decide on the way of producing the goods/products?
Choose among the following:
a. Job – Shop - a small manufacturing unit that makes
specific products for one customer at a time.
b. By Batch - goods are produced in groups (batches) and
not in a continuous stream.
c. Repetitive - production of goods in rapid succession.
Goods that are created through repetitive
manufacturing follow the same production sequences.
d. Continuous - continuous physical flow of materials. It
makes use of special purpose machines and produces
standardized items in large quantities.

Answer: “I think we use the Job Shop. We base on order. We

will not make what was not in the order. Since we are just
producers, it means we depend on the buyer’s choice and
preferences, we will not make products that are not saleable
to the market, we always follow their standard of sizes.”
14. What are the steps or the different areas in producing your
products?

Answer: “From logs, then processed into veneer or lumber. If

veneer, we will cut intended to veneer sizes into the designated
machine. First step is to cut it using chainsaw for us to know
which part are intended for the machine or to the sawmill, 1
length, one size is intended for veneer. When it comes to
lumbers, there are different sizes intended for that. Sizes
would determine which are for lumber processing or veneer or
“banso” processing.”
 15. How many workers and employees do you have? What are their
specializations in work areas?

Answer: “There are around 40-50 employees, depending on the

market demand. If the demand of the market is higher, we hire
additional workers, if the demand is low, we do otherwise and
that small number of people will be assigned for chainsaw
operation, lumber and veneering.”

16. Are your workers or employees productive? How do you measure

their productivity?

Answer: “To become productive, through feasibility study basis,

workers are assigned to areas where I see they are productive,
they are assigned by departments.”

17. How do you manage your employees and how do you motivate them?

Answer: “through giving them allowances, if some ask then I

give.”

18. How do you manage your inventory? Is it secured?

Answer: “We have control over the inventory, from checker to the
offices. Checking inputs and outputs, how many board feet are
there should be same number of board feet that shoukd be released.
We always monitor to prevent loses, we also have strict security
over the process, and we also have control and monitoring in our
office to prevent bankruptcy.”
19. How can you identify that you are already in the need of
ordering raw materials?
Answer:” The orders are constant except if there is export order.
If orders are from local market, orders are the same. If we
stock extra inputs from suppliers that would lead to spoilage.”
20. Explain your supply chain management. (This includes your
suppliers, the process of converting your raw materials to
finished goods, and the key customers which you sell your
products to.)
 Answer: “Our suppliers are farmers, our suppliers are processing
plant like APC(Agusan Plywood Corporation), RICHMOND PLY.
Suppliers: Lanyong, ellen gonzaga, costumers: APC, Richmond ply.
processing plant in Caraga. Transportation of logs from Agusan
River, tracking during the delivery.”
21. Are you ISO (International Organization for Standardization)
certified? If yes, what type of ISO Certification?
Answer: “not ISO certified. “
22. Are you familiar with the Six Sigma? If yes, do you apply it
in your business?
Answer: “not familiar with Six Sigma”
23. What are your short-term and long-term plans for the business?
How do you make those plans come to reality?
Answer: “It needs long term planning in achieving the plans. We
need good management, since our business is wood industry so we
need to promote wood industry. Other businesses like furniture
making needs our products so that people can have a source of
income.”
24. How do you manage and schedule the projects you have for the
business?
Answer: “Through time management, the stricter the deadline,
the quickest the production process should be. We are not fixed
and we depend on the customer’s demand.”
25. How did you plan and identify the location of your business?
Answer: “we chose this location because this has been my
residence. I just bought this place here so i liked to do
business here. Before, the transportation would took place on
the River, so i decided to established it here.”
26. Are you in accordance with the regulation of the government?
How do you comply so?
Answer: “It is always a must to follow the government rules
and implementation. Compliance with the local government’s
requirements is a must especially in the DENR compliance to
have a continuous operation. I have a huge plantation in Las
Nieves, which has been our source.”
 27. What are your ways to give back to your stakeholders,
specifically to the community your business were being
surrounded to?
Answer: “through establishing good relationship with people
within the same industry and with the barangay.”

Additional question:

“Are you the one who call for your customers? Or the customers
will call for you?”
Answer: “It depends. Sometimes I would market the product myself
and canvass for customers, sometimes they are the ones who call
for me.”

“Any existing problem in your business?”

Answer: “Sometimes the market itself is the problem. There are
times that demand and price is low, so it could affect to the
competition.”

“Any existing problem within your organization?”

Answer: “So far so good. Sometimes workers does not follow
instruction, some are lazy but it is normal.”

“Do you have any difficulty in choosing your workers?”

Answer: “None, It is always easy to look for workers because most
of the people in the area does not have jobs so it is easy for us
to find workers to hire.”
Appendix D: Curriculum Vitae

ABING, JEA E.
269, P- Yakal, Brgy. Pangabugan, Butuan City
Cellphone #: 0948 6613 774
Email Address: jaye.abing@gmail.com

PERSONAL DATA

Nationality : Filipino

Sex : Female

Marital Status : Single

Date of Birth : May 28, 1999

Place of Birth : Butuan City

Father’s Name : Marcelo Q. Abing

Mother’s Name : Erlinda E. Abing

EDUCATIONAL ATTAINMENT______________________________________

2018 – present : Bachelor of Science in Accountancy (BSA)

Father Saturnino Urios University

2016 – 2018 : Senior Highschool

Father Saturnino Urios – BP Pueblos
2012 – 2016 : Junior Highschool
Science and Technology Oriented High School
Agusan National High Schoo

2009 – 2012 : Primary

Butuan Central Elementry School

ALARCON, EUNICE L.
445 Arujville Subdivision, Libertad, Butuan City
Cellphone #: 09186219659
Email Address: eunicealarvon.35@gmail.com

PERSONAL DATA

Nationality : Filipino

Sex : Female

Marital Status : Single

Date of Birth : February 16, 2000

Place of Birth : Butuan City

Father’s Name : Franklin B. Alarcon

Mother’s Name : Ritchie L. Alarcon

EDUCATIONAL ATTAINMENT______________________________________
2018 – present : Bachelor of Science in Managerial Accounting (BSMA)
Father Saturnino Urios University

2016 – 2018 : Senior Highschool

Father Saturnino Urios – BP Pueblos

2012 – 2016 : Junior Highschool

Agusan National Highschool

2009 – 2012 : Primary

Butuan Central Elementry School

ALTIZO, AMADEL J.
Purok 4, Maug Butuan City
Cellphone #: 09054451185
Email Address: ajaltizo23@gmail.com

PERSONAL DATA

Nationality : Filipino

Sex : Female

Marital Status : Single

Date of Birth : October 23, 2000

Place of Birth : Butuan City

Father’s Name : Amado V. Altizo

Mother’s Name : Chona J. Altizo

EDUCATIONAL ATTAINMENT______________________________________

2018 – present : Bachelor of Science in Accounting Information System(BSAIS)

Father Saturnino Urios University

2016 – 2018 : Senior Highschool

Saint Joseph Institute of Technology, Annex Campus

2012 – 2016 : Junior Highschool

Saint Joseph Institute of Technology, Annex Campus

2009 – 2012 : Primary

Saint Joseph Institute of Technology, Annex Campus

AMPER, JESIEL C.
Purok 4 Bancasi, Butuan City
Cellphone #: 09271150395
Email Address:jcelamper@gmail.com
PERSONAL DATA______________________________________________

Nationality :Filipino

Sex :Female

Marital Status :Single

Date of Birth : February 19, 1999

Place of Birth :Butuan City

Father’s Name : Josua L. Amper (Deceased)

Mother’s Name : Ritchie C. Amper

EDUCATIONALATTAINMENT______________________________________

2018 – present : Bachelor of Science in Accountancy (BSA)

Father Saturnino Urios University

2016 – 2018 :Senior Highschool

Father Saturnino Urios – BP Pueblos

2012 – 2016 :Junior Highschool

Agusan National Highschool

2009 – 2012 :Primary

Butuan Central Elementry School
AMPO, SHEEN LYNWELL P.
Purok 5 Lower Bonbon, Butuan City
Cellphone #: 09464249509
Email Address: stacker699@gmail.com

PERSONAL DATA

Nationality : Filipino

Sex : Female

Marital Status : Single

Date of Birth : September 06, 1999

Place of Birth : Butuan City

Father’s Name : Romewell T. Ampo

Mother’s Name : Merlinda S. Perez

EDUCATIONAL ATTAINMENT______________________________________

2018 – present : Bachelor of Science in Managerial Accounting (BSMA)

Father Saturnino Urios University

2016 – 2018 : Senior Highschool

Father Saturnino Urios – BP Pueblos

2012 – 2016 : Junior Highschool

Agusan National Highschool
2009 – 2012 : Primary
Butuan Central Elementry School