San Pedro College of Business Administration

KM30 Old National Highway, Barangay Nueva, San Pedro 4023, Laguna

Case Study:
Electroplus Incorporated

Prepared by:
BEDOYA, Librado III
BERDAN, Angelica
BERTULFO, Shielo Celeste
CABANGON, Lara Mae
DE GANA, Mariden Ann Gabrielle
DELA CRUZ, Shaina
MATIAS, Lorebel Jane
MERCADO, Nathaniel Ian
NESOLA, Sunshine
RIOVEROS, Joyzelle
SANCHEZ, Ramon
TANYAG, Kenneth

Submitted to:
Mr. Recto Luces

November 9, 2020
 CASE STUDY: Electroplus Incorporated

I. STATEMENT OF THE PROBLEM

Electroplus, a manufacturer of small motors, is experiencing a fall out through the

low projected earnings for the past months—until the motor company received a project

that might possibly help them bounce back with their loss. To achieve desired year-end

sales, the plant head and plant performer quickly agreed to include January order and

expedite production of equipment which requires 100% inspection—leading to rushed

quality checks that may cause serious problems down the line. Because of lack of time,

manpower, and equipment failures, the company is only able to inspect 80% of the

orders.

II. OBJECTIVE

The main objective of this analysis is to determine and propose solutions in order

to attain the company's sales goal to bounce back with the efficiency of the resources

and 100% quality control effective before the end of the year while avoiding the issue of

violation of contract which includes 100% inspection and shipping out of items before

the month of January, which they failed to do.

 III. AREAS OF CONSIDERATION

SWOT ANALYSIS
Strengths
 Materials – The company’s materials 
are complete and available, enough to
produce the amount of orders needed
by the client.
 Man – The company has enough man
power to work on the process of the
given project and they also had
increase in their salaries.
 Increase in sales – Bringing back the 
loss of the company for the past
month that could thus reach the
desired year-end sales.
Opportunities
 Regaining lost sales and customer 
trust with repetitive orders
 Improving competitiveness – since 
they finally have a chance they are
now able to get more earnings and 
work and run as usual
Weaknesses
Machinery – Unexpected breakdown
of the machines used for
manufacturing items.
 Man – Employees may become
overworked due to the amount of
tasks they have to do to process the
orders, including having to work
overtime
Method – No manual production is
possible in case of machine
breakdown.
Threats
Loss of client in case of failure in
maintaining quality standards
Arising of legal case due to
violation in contract
Negative feedbacks and poor
customer satisfaction

IV. ALTERNATIVE COURSES OF ACTION

The following are suggested alternative solutions proposed in order to

resolve the problem being studied in the case:

A. Include the top management and people within the company in planning and

decision making, to allow them to become more knowledgeable about the current

situation in the company and to analyze and propose better plans and solutions

for future issues and scenarios. The top management is the most crucial part of
 an organization, and their involvement in decision making and planning is

important as they can decide which plan is much more feasible.

B. Inspecting beforehand and during production each part and section of the

production process, by providing daily production monitoring sheets, which

enable the plant performer to closely monitor the 4 M's of the process and more

importantly the quality assurance of each batch of production.

C. Rent additional machines for special use cases. This can speed up production

and gives the plant the ability to produce more goods than what is normally

planned. It can also avoid issues down the line in case one of the machines

malfunction, so that the plant's production can still continue.

D. Hire additional seasonal employees inclined with the job to process and perform

required orders, especially in cases where additional manpower is needed. This

can be done if the company's budget allows in order to reach desired order quota

on a set due date without requiring employees to overwork.

E. Provide 6 months warranty to Hammond for the machines delivered. Inclusive of

1-year free service and maintenance for minor parts. For major machine defects

Electroplus Incorporated will repair or replace the unit provided that Hammond

reported within 30 days upon delivery.

V. CONCLUSION

Based on the case, the problem that the company encountered in the process of

product manufacturing that caused the company to violate the contract, and considering

the areas of concern and proposed alternative courses of action, it can therefore be
concluded that the project, and thus the company's biggest challenge in this case is to

ensure 100% inspection and compliance with the client's needs. Thus, this analysis

enables the company to overcome this by providing alternative courses of action that

will create a situation, beneficial for both companies.

VI. RECOMMENDATION

Based on the analysis of findings, out of all possible alternative courses of action,

the following solutions are recommended:

1. Separate inspection for the products will take extra time so it will be beneficial for

the company to inspect and monitor each step of the production while it is still

processing. Providing daily production monitoring sheets will give the plant

performer better access to know and monitor if the production is going smoothly

and does not face troubles.

2. The company must prepare additional equipment for use in larger orders and

processes, primarily by renting. Renting or contracting machines is feasible not

only because it is cost-efficient, but also because it can be used only when

needed (e.g. for large orders) and returned after use.

3. Include machine warranty in the contract and discuss thoroughly with the client

regarding coverage and benefits that will ensure safety and less cost for the

company.