THE GLOBE CONSTRUCTION COMPANY

The Globe Construction Company top direction held a direction workshop one weekend in April of 1989 for the intent of discoursing present policies and processs with the ultimate aim of formalising these in a new company operations manual. The company was established in the mid-50s by Mr. Eduardo Concepcion. The company grew at a really fast rate due to the building roar in the authorities sector during the disposal of ex-President Ferdinand E. Marcos. During the 1970ss and early 1880ss. the company constructed big undertakings for both the authorities and private sectors. However. most of its undertakings were for the authorities. Globe enjoyed high borders from its authorities undertakings during this period. Competition was non a job.

When Mrs. Aquino became President. private sector building undertakings in the state outnumbered authorities undertakings. Competition became more stiff coercing Globe to cut down its borders when command for both sectors. This alteration in the environment led direction to name the direction workshop to discourse ways of bettering organisational efficiency and effectivity. The workshop was attended by the president. the vice-president for disposal. the vice-president for operations. the buying director and all the undertaking directors ( See exhibit A for Organizational Chart )

Undertaking directors are the applied scientists in-charge of building undertakings. The company employs 20 undertaking directors. At present. there are about 18 ongoing undertakings at an estimated Bid monetary value of at least P100 million each runing from office condominiums. shopping Centres and authorities edifices. The buying unit is headed by a buying director to whom purchasers report. Each purchaser is wholly in-charge of buying stuffs required by one or more building undertakings. The VP for operations is over-all in-charge of ongoing undertakings.

During the workshop. one of the undertaking directors. Isidro Remigio. proposed that the purchasers should be located at the occupation site coverage to the Project Manager ( See Exhibit B for the Organizational Chart at the Project Site ) Mr. Remigio argued: “It takes so long. sometimes about 2 hebdomads. before Buying reacts to our purchase order ( PO ) . If the purchasers study to me straight. there is no uncertainty that they will go to to my PO. I will be the 1 who will measure the buyer’s public presentation. More significantly. his propinquity to the occupation site will do him better understand the urgency and the nature of our petitions. Communicating with him will be easier excessively. Sometimes. when the points I need are non available. he calls me to inquire for replacements. I ever have jobs making him by phone. If it’s non busy. he is non at that place! If my stuff are delayed. my undertaking will non be completed as scheduled. ”

At this point during the workshop. the Purchasing Manager interrupted Mr. Remigio and said. “Our map is non simply to implement Pos. We purchase stuffs ordered by the undertakings merely 1 ) if the points are non on stock in the cardinal warehouse and 2 ) if the points are included in the Bill of Materials ( BOM ) as provided by the Executive Committee. Any order in surplus of the approved by us unless there is an amended measure of stuffs. Therefore. if the purchasers will describe straight to undertaking directors. this could take to be overproductions.

The President of the Company took the floor after hearing Mr. Remigio and the Purchasing Manager. “I am besides concerned about the handiness of financess for sanctioned Pos to be acted upon by buying. While it is good for the undertakings to hold the needed stuffs on clip. I wouldn’t want to promote them to stock-up excessively much. This will tie-up financess and increase our involvement costs. I hope that wherever Purchasing is to be located in the organisation chart. we will besides see the affair of fund handiness. ”

The Central warehouse is located in Antipolo while Head office ( where the purchasers gilded office ) is located in Paco. Manila. Approximately P10Million worth of stuffs are kept in the Central warehouse.

Exhibit Bacillus
PROJECT SITE ORGANIZATION CHART
Board

Equipment
Engineering
Overseer
Administration

* General Foreman
* Asst. Foreman

Exhibit A
GLOBE ORGANIZATION CHART
* Selling
* Design
* Estimating
* Drafting
* Accounting
* Forces
* Finance
* Treasury
* Bookkeeper
* Stock Clerk
* Time Keeper
Undertakings
Construction

Buying
Undertaking Development
Administration
Operationss
President
Board