UNIVERSITY OF SANTO TOMAS

Faculty of Engineering
Civil Engineering Department
1st Semester SY 2019-2020

GE302

ENGINEERING MANAGEMENT

Case Study No. 3

MOTORBUS COMPANY: Que Sera Sera

GROUP D5

ARCEGA, Rylgem Dominic

BATURIANO, Karl Joshua Q.

BOLANOS, Dell Sherwin

GALVEZ, Ma. Andrea Denise

LLANTOS, Neil Janry

Date Submitted:

October 16, 2019

Submitted to:

Engr. Jucele Ganibe- Jaravata

I. OVERVIEW

Engineer Hormegenes Ancheta was recently promoted from being an

Assistant Manager to the Manager of the Maintenance Department of the

Motorbus Company. He has just passed the board exam when he became a

part of the said company. In just two years after he joined the company, he

was able to attain the position of being the Assistant Manager. The Motorbus

Company’s Maintenance Department was headed by their Manger,

Engineer Gaudencio Inductivo. The said manager joined the company since

the start of its operations in 1989. The operations started with a total of ten

buses with a route of Manila-Isabela. Each Maintenance unit has a full-time

mechanic and one a mechanic and was deployed for both terminals

Sampaloc, Manila and another in Ilagan, Isabela. The mechanic diagnoses

the different problems and list down the parts need to be replaced or fix and

then sent to the Manager, Engineer Inductivo. The list will be then transferred

to be a purchase request to be approved by the company accountant and

sometimes purchased personally by Engineer Inductivo. The materials will be

forwarded to the mechanic to performa the fixing.

In 1993, additional of 40 buses were purchased by the company and

each unit was increased up to 5 mechanics and 5 assistants. The purchase

request started to pile up because the old method of requests approval was

not

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 UNIVERSITY OF SANTO TOMAS
Faculty of Engineering
Civil Engineering Department
1st Semester SY 2019-2020

innovated. Operational delays started to manifest that resulted to internal

complaints. Engineer Inductivo applied for his retirement and later approved

by the Vice President. The newly appointed Manager, Engineer Ancheta was

appointed to fix the issue in the stock room. He was given 30 days to be ready

for the new 50 more buses. Engineer Ancheta should plan on the operations as

efficient and effective as possible.

II. STATEMENT OF THE PROBLEM

Engineer Ancheta faced a lot of pass over problems from the

administration of Engineer Inductivo as he was promoted as the Manager of

the Maintenance Department and he needed to devise a plan to make his

department more efficient and more effective as possible. The promotion of

Engineer Ancheta’s problem was mostly because that they needed to

resolve all the problems just in time for the new 50 more buses. Also, they also

need to plan out the required upgrades or changes in the system of the

company as another 50 new buses will be added to their everyday operation

which means additional buses which will be needed to be inspected for

repairs or maintenance.

The problems from the previous administration that one of which is that

there was so many requests for new parts and equipment for the repair of the

broken company bus that delays the process of repairing the buses. Another is

that they needed to resolve the problem regarding the old way of approving

and buying the request of the required parts for the maintenance of the buses

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 UNIVERSITY OF SANTO TOMAS
Faculty of Engineering
Civil Engineering Department
1st Semester SY 2019-2020

that needs to be repaired. Engineer Ancheta would also need to address the

problems in the manpower just in time for the new 50 buses that will arrive in

their operations which will need additional manpower from the maintenance

department. He must address everything in a short amount of time because

there was a short notice deadline that was burden to him from the retirement

of Engineer Inductivo.

III. STATEMENT OF FACTS

A. Engineer Hermogenes Ancheta has been promoted from Assistant

Manager to Manager of the Maintenance Department.

B. In 1993, Engineer Ancheta just passed the board exam for Mechanical

Engineering and recently joined Motorbus Company.

C. By June 1995, he was promoted as Assistant Manager for Maintenance

D. In 1989, the company started and the former manager of the department,

Engineer Gaudencio Inductivo, joined the company.

E. Total of ten buses plying the Manila-Isabela route.

F. A maintenance unit was put up at Manila Terminal in Sampaloc and

Ilagan, Isabela.

G. Each unit has a full-time mechanic and an assistant

H. When a company bus comes in for repair, the mechanic produces a list of

parts needing replacement and Engineer Inductivo performs the actual

purchasing himself where he later sends the purchased items to the

mechanic who made the request.

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 UNIVERSITY OF SANTO TOMAS
Faculty of Engineering
Civil Engineering Department
1st Semester SY 2019-2020

I. In 1993, 40 new buses were procured by the company.

J. Maintenance personnel threaten to quit their jobs unless additional

mechanics and assistants were recruited.

K. By the end of 1993, each unit has personnel complement of 5 mechanics

and 5 assistants.

L. The old method of purchasing was not improved even with current

developments.

M. Engineer Inductivo informed the VP of Operations for the approval of his

application for retirement.

N. On the same day, the President approved the request for retirement.

O. The next day, Engineer Ancheta was promoted to Manager.

P. Engineer Ancheta was informed by the VP that the company will be

fielding an additional 50 new buses in 30 days.

IV. ANALYSIS OF FACTS

The Vice President for Operations appointed Engineer Hermogenes

Anchete to Manager of Maintenance shows that he is the most capable, and

perhaps he’s the most familiar with the run and operation of the business

pertaining to Motorbus Company most effectively in good service.

Furthermore, the VP for Operations trust him to be able to handle the

additional 50 buses and put order in the department.

Also, seeing how the maintenance units threatened to quit their jobs

unless additional mechanics and assistants were recruited due to the

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 UNIVERSITY OF SANTO TOMAS
Faculty of Engineering
Civil Engineering Department
1st Semester SY 2019-2020

additional 40 buses in 1993, the need for more personnel is bound to come with

the 50 new buses within the 30 days.

The storage room is also filled with excessive quantities of uneven parts,

while some important one was inadequately stocked. In addition, a corner of

the room contains a huge amount of obsolete parts. It can be assumed that

the storage room mostly consists of less important parts and are not properly

segregated. Thus, it can be assumed that the space consumed in the storage

room is not maximized.

V. CONCLUSION AND RECOMMENDATION

Engr. Ancheta is promoted to become a Manager since the Engr. Inductivo

already retired and he is seen as the best fit for the job. When Engr. Inductivo

left there were several issues that needs to be resolved. The purchase requests

were continuously piled up and there were several complaints already. Also,

there were delays in the delivery of the requests and these two needed urgent

solutions. Upon promotion, Engr. Ancheta checked the storage and found out

that parts were not organized and maximized. This just shows that needed parts

were not readily available. The unorganized and uneven number of parts add

up to the delay in the time of delivery. Another problem arises, when the VP

told him that 50 new buses will arrive within 30 days. If there will be the same

number of employees and the same method of purchasing, the requests will

continue to be delayed. The purchasing method is inefficient and not effective

since it was stated that Mr. Inductivo himself still buys the needed parts even

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 UNIVERSITY OF SANTO TOMAS
Faculty of Engineering
Civil Engineering Department
1st Semester SY 2019-2020

though there were newly hired people. The purchasing method of Mr.

Inductivo is inefficient since the number of buses were adding up so the

number of needed parts to buy were increasing. Also, there is a need to hire

again new workers since there will be additional buses to arrive.

Upon seeing the flaws of the old method, Engr. Ancheta should improve

and develop a more effective and efficient way of purchasing. The workers

should be properly distributed. There should be a team assigned in purchasing

the needed parts so that it will not be done by one man alone. Also, there

should be a team doing the inventory of storage. This team will always check if

the parts there are always enough. Lastly since there will be additional buses

that will arrive, the company should hire additional people for to have a

sufficient an evenly distributed workers and for the existing workers to not be

overfatigued.

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