Globe Construction Company Case

976 Words Sep 16th, 2011 4 Pages
THE GLOBE CONSTRUCTION COMPANY

I. Point of View
We take the point of view of the top management in resolving the problem of the Globe Construction Company particularly in their operations policies & procedures. II. Central Problem
What system or design should the Globe Construction Company develop in order to improve the effectiveness & efficiency of their operations?

III. Case Facts:

A. GLOBE CONSTRUCTION COMPANY

• Was established by Mr. Eduardo Concepcion & has been in the business for almost 40 yrs.
• During the 70’s & 80’s, the company has been servicing mostly large government projects where they get the bulk of their profits.
• But not until the Aquino’s regime when projects for private sector dominated
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Decision Criteria

Alternative 1 Alternative 2 Alternative 3
Implementation (40%) 1 0.45 2 0.90 3 1.35
Cost Effectiveness (30%) 1 0.20 2 0.40 3 0.60
Timeliness (30%) 2 0.70 3 1.05 1 0.35
Total 1.35 2.35 2.30

VI. Decision – justify as according to:

Decision to the problem: (alternative 1) We therefore choose to retain the current organizational set-up by improving & including some system in the departments’ policies & procedures, wherein we add a purchasing supervisor that would be handling specific buyers with specific accounts (government or private projects). The Purchasing Supervisors will be the one to monitor the Buyers. In case of delays in the processing of PO, the purchasing supervisors will be the one held responsible and will have direct authority & responsibility over the Buyers. It is also the responsibility of the Purchasing Supervisor to do regular coordination with Project Managers in terms of their needs & requirements in the field. The principle behind the Purchasing Supervisors directly communicating with Project Mgrs is to have control in the management of funds unlike the Buyers directly coordinating with the Project Mgrs, this may cause some cost overruns.
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Rationale:

Considering our decision criteria; implementation, cost effectiveness & timeliness. We think that with this
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