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A COMPANY STUDY ON OPERATIONS MANAGEMENT

I. INTRODUCTION

A. Objectives of the Study

The study generally aims to identify the operational principles, procedures

and techniques used by a specific organization. Specifically, the study intends to

present Boardwalk Business Ventures, Inc (Iloilo Branch).

The study aims:

1) to analyze the operational functions used by Boardwalk

2) to find out implications and results of applying the basic operational functions

3) to recommend and suggest feasible and alternative solutions for the

improvement of the organization’s business cycle and operations

B. Scope and Limitations of the Study

The study focuses and is limited only to a branch of Boardwalk, the Iloilo

branch which is in Panay Island. This study deals on the basic principles,

procedures and techniques used by Boardwalk Iloilo. Some information and data

acquired through interviews and observations are applicable exclusively to the said

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branch. Thus, it will be limited only to the output that the owner from the selected

business provides such as data and information that were asked, as well as the

information from the researches cited and reviewed from the company website,

blogs and social networking sites that is related to the whole organization. The

gathered facts are limited because of availability and privacy issues.

C. Methodology

Group meetings were held as to decide what organization or business

enterprise to study. Tasks were also delegated to the members of the team and

deadlines were set prior to the presentation of the study and the submission of the

final paper. The data and information are gathered primarily through series of

interviews with the branch manager of Boardwalk Iloilo branch and an employee of

Boardwalk Iloilo. The branch manager of Boardwalk also accepted the request of the

group to have an actual observation of operations done by the said company.

Questions were asked about the business, and the operational processes,

techniques and principles being used by their company. Secondary research was

also conducted through electronic searches of articles, blogs, online documents, and

of the company website.

The gathered data were discussed as a group, the task were divided equally.

The ideas, analysis, and evaluations were written individually but were deliberated

informally by the members.

D. Operational Definition of Terms

Aggregate Planning determines the resource capacity needed to meet

demand over an intermediate time horizon usually covering a time frame of 2 to 12

months. Aggregate planning can help decision makers to make plans about their

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capacity because different seasonal variations in demand are difficult to predict

accurately.

Database: A data processing file-management approach designed to

establish the independence of computer programs from data files. Redundancy is

minimized, and data elements can be added to, or deleted from, the file structure

without necessitating changes to existing computer programs.

ERP or Enterprise Resource Planning is an expanded effort to integrate

standardized record-keeping that will permit information sharing throughout the

organization. It involves sharing information across functional areas, integrating

business processes and facilitating customer interaction, Stevenson (2002).

Inventory Management is the process of efficient supervision of the constant

flow of units into and out of an existing inventory to prevent the inventory from

becoming too high, or decreasing to levels that could put the operation of the

company into risk.

Mass Customization- The creation of a high-volume product with large

variety so that a customer may specify his or her exact model out of a large volume

of possible end items while manufacturing cost is low because of the large volume.

Mass Production- High-quantity production characterized by specialization

of equipment and labor.

Reorder Point (ROP) System. Inventory method that places an order for a lot

whenever the quantity on hand is reduced to a predetermined level known as the

reorder point.

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II. COMPANY BACKGROUND

A. History and Evolution

Direct selling has been a continuing trend in the Philippines and has been

attractive to many people by not only helping dealers to earn profit but also helps the

customers to buy products with less hassle.

Boardwalk Business Ventures, Inc. is one among the top direct selling

company in the country that had been operating for 23 years founded by Bernardo

H. Madera and Imelda P. Madera. It started in 1989 as Miami Garments, a

manufacturing company where their products were displayed in leading malls, and in

1991, the couple shifted to direct selling giving birth to Boardwalk.

Boardwalk provides a collection of affordable and trendsetting pieces that are

stylish and of quality. Boardwalk caters the needs of children, teens, and adults from

casual and corporate clothes, underwear, jeans, shoes, bags, wallets, to timepieces;

they had also branched out to health accessories category. Boardwalk has

everything to offer to everyone as it continues to set new trends in the fashion

industry.

Led by its founders, the company has become a force in the industry as it

grow to be the measuring stick that other competitors compare themselves to.

Currently, the business has over 1 million registered dealers and 26 strategically

located branches and 30 Brand Satellite Offices (BSO). Its main office is in Ortigas,

Pasig City..

Boardwalk dealers do play a big role in the business, to repay their hard work;

the Business Development Division of BW came up with “Boardwalk Alliance”. This

project focuses on the dealers, for them to maximize their leisure activities after a

hard day’s work. Loyal dealers are usually rewarded through cash incentives,

discounts on merchandise, free reward items, and the like. However, Boardwalk

Alliance program provides different way of rewarding its dealers – they get discounts

and freebies from the program’s merchant partners like Kameraworld, Generika

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Drugstore, Neotopia, Zen Zest, Jolibee, Padi’s Point, Pioneer Insurance, Ace Water

Spa, Oasis Country club, and more.

Boardwalk also sees the importance of the young people in the community.

With its advocacy to instil entrepreneurial spirit to the young generation of today, it

developed the Young Entrepreneurs' Sponsorship (YES) Program. It is an

endeavour of the company to educated college students with important business

and entrepreneurial skills. It offers students a real-life business experience, awards

them with an instant 3 000 credit line they can use as capital to start up their

business, shares case studies of successful businesses and other useful

information, and offers employment assistance after graduation.

Boardwalk has also committed itself to the mission of service for the afflicted,

the tormented, the distressed, and the troubled. With its Boardwalk Charity

Foundation, Inc. (BCFI) it reaches out to those in need through charitable and

humanitarian efforts.

Its mission is to put up projects to serve the needs of the children, bring forth

initiatives that take advantage of the available technology to help out the poor, and

bring forward organizations that focus on education, community services, health and

nutrition, environment, arts and culture, livelihood, and entrepreneurial and

employment programs.

The BCFI is focused on three priorities in reaching out to the Filipino:

education, community service, and employment involvement. It is also affiliated with

various charitable institutions like Gawad Kalinga in Building communities to end

poverty, ANCOP in giving education for everyone through their Educational

Assistance Program, Boys Town in giving children a fresh start, Marikina Watershed

in providing a haven for people afflicted with calamities, and ABS-CBN’s Bantay

Kalikasan in protecting and preserving nature.

The Boardwalk Charity Foundation, Inc. is building a better world one-step at

a time - encouraging people to be part of them to make a better place to live in.

DONATE. VOLUNTEER. LEAD.

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In June 18, 2011, Boardwalk celebrated its 20 years of uplifting the lives of

the Filipino with ONE BIG SHOW at the Araneta Coliseum. Featuring some of the

highly regarded names in the country such as Kris Aquino, Jean Garcia, Ryan

Agoncillo, Cherry Pie Picache, Assunta De Rossi, Bangs Garcia, Jake Cuenca,

Gabby Concepcion, Derek Ramsay, Coco Martin, Julia Montes, Nikki GIl and Matteo

Guidicelli, Boardwalk proudly display their masterful pieces and gave their audience

a show to remember. It also highlighted the work of their designer, Avel Bacudio, a

known celebrity designer.

Boardwalk was awarded the best direct sales company and one of the most

outstanding organizations in the country. The company is very much dedicated in

empowering the people and bringing out the best they can be, and creating a world-

class brand made by the Filipino for the Filipino.

Alliance

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Because the company wants to repay its dealers for their hardwork, the

Business Development Division of BW came up with “Boardwalk Alliance”. This

project focuses on the dealers, for them to maximize their leisure activities after a

hard day’s work.

The Boardwalk Alliance was supposed to be launched last September 26,

2009, but because of the typhoon Ondoy the launching was moved to November 22,

2009. And as of the moment, there are almost 15,000 dealers nationwide who own

the Alliance Card.

Boardwalk Business Ventures, Inc. has been doing everything to reward all its

loyal dealers for their patronage in selling Boardwalk merchandises. The

management has been giving out cash incentives, discounts on merchandises, free

reward items and the like. But because its loyal dealers never stops patronizing

Boardwalk products, the management decided to reward the said dealers in the

most innovative way possible. Hence, the Boardwalk Alliance Program, an exclusive

loyalty program for Boardwalk dealers nationwide was given birth to!

Boardwalk Alliance Program is a different way of rewarding its dealers

because it is through its merchant partners that the dealers are rewarded. In

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particular, dealers get discounts, benefits and freebies from the Boardwalk Alliance

Program’s merchant partners.

To date, Boardwalk Alliance Program has a number of merchant partners.

From restaurants, fastfood chains, amusement parks, etc. But Boardwalk Alliance

Program will not stop here. It will continuously acquire merchant partners who are

willing and able to offer more exciting perks and benefits for the Filipino people.

Boardwalk Iloilo

A number of Boardwalk branches is spread in the country, among the 26, one

is in Iloilo City with 2 Branch satellite offices (BSO) and 2 Boardwalk Servicing Office

(BWSO).

Boardwalk Iloilo started its operations last August 2004, located at St. Andrew

Building, Mabini St. It is the main branch in Panay, under Boardwalk Iloilo are the

BSOs sited in Roxas City and Kalibo, and BWSOs in Passi City and Antique.

The branch is currently under the supervision of Mr. Niel dela Cruz, with 21 staffs

under him in the branch for BSOs and BWSOs. The branch operates Mondays to

Saturdays, from 9 am to 7 pm, while the BSOs and BWSOs operate from 8 am to 6

pm.

B. Mission/Vision

Vision

“Boardwalk is a globally recognized institution of self actualized people innovating

systems and technology for a life changing lifestyle brand.”

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Mission

Uplift the quality of lives of people as it satisfies the lifestyle needs of the market

through world-class services.

Promote entrepreneurial spirit and generate employment opportunities for a self

actualizing career and quality life.

Advocate social entrepreneurship by contributing to society through philanthropic

works and environmental programs.

The Madera Philosophy

“Entrepreneurial technology-driven visionary leadership building, innovating, and

sharing the abundance of life-changing global opportunities.”

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Vis

ion

Self-Actualized

People

Innovated Systems and

Technology

Globally Recognized

Institutions

Mis

sio

n

Uplifting Quality of

Life

Promoting

Entrepreneurial Spirit

Advocating Social

Entrepreneurship

Cultu

re

Measurement of rules

Accountability for actions

Dedicated Team

Empowerment through Learning

Relevant Innovation

Abundance Mentality

Pill

ar

of

Exce

llen

ce

People

Systems

&

Processes

Technology

Brand

Sales

Core

Va

lue

s

Be

co

min

g

Respect

Unity

Sharing Spirit

Doin

g

Customer-ship

Dynamic Entrepreneurship

Havin

g

Professionalism

Integrity

Excellence

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Core Values

1. Professionalism

2. Integrity

3. Excellence

4. Dynamic Entrepreneurship

5. Customer-ship

6. Respect

7. Unity

8. Sharing Spirit

Bridging Unity Organize Excellence Align Integrity Renew Professionalism Deserve Respect Win Dynamic Entrepreneurship Assure Customer-ship Live the Sharing Spirit Keep the Faith

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C. Organizational Structure

Boarwalk Iloilo is headed by Mr. Niel de la Cruz. He leads 22 staff, 7 for sales

and 15 for operations.

Each staff has a detailed set of activities to be done - every member has its

itinerary for the whole month (a list of tasks with corresponding schedule). Before, a

Gantt chart is used to supervise the progress of the task made by the employees;

however, it resulted to problem in terms of evaluating the performance and

contribution of each. Thus, Boardwalk opt to revise their work system and develop a

new method where every employee has its own job description to focus in order to

monitor and evaluate the work performance easier.

(Since Boardwalk Iloilo is only a branch here in Iloilo, production is outside the

scope.)

Being the main branch in Panay, Boardwalk Iloilo works hard to maintain the

smooth flow of their operations in order to keep their dealers and other walk-in

customers. Operations division is led by the operations head. He oversees the

performance of those under him and also makes sure that they are able to deliver

their task within a short time but still with minimal errors.

Under the operations head are the Operational Technical Training Specialist

(OTTS), DSYS, and warehouse custodian. OTTS takes handles the minimal

problems experienced by the branch especially those concerning with their

information system, and also monitors the orders in the warehouse. The warehouse

custodian heads in maintaining and keeping track with the flow of stocks monitors

the print orders, and the immediate superior in the warehouse.

Other members under OTTS are Branch Satellite Office Associate (BSOA),

Administrative Clerk (ACL), Cashier (CH), Baggage Clerk (BCL), Credit Evaluation

Specialist (CES), Sales Order Controller (SOC), and Releasing Clerk (RLC). SOC

includes the Print Order (P.O) staff, Controller, and Returns staff. The driver

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addresses the delivery needs of the branch, as well as BSOs, but he is under the

BSOA.

For warehouse custodian, customer care assistant, quality control staff and

caretaker are under him. Customer Care Assistant checks the performance of the

staff; this includes their personal grooming, service towards dealers, and compliance

with their duties (scheduled cleaning of the branch). He reports directly to the

manager regarding his observations every day.

D. Operations Strategy of the Company

Boardwalk Iloilo is positioned at Mabini St, Iloilo City, once a strategic place

because of the presence of Avon but currently is subject for transfer. It rents a 2-

storey building for its office, and stockroom. The first floor comprises the area for

processing the transaction of the customers/dealers, storage for apparel and men’s

items, and office of the manager. The second floor is allocated plastic wares, and

women’s items.

The store is operates from 9 AM to 7 PM and is able to address about 200

transactions per day. To increase performance and reduce the problem on waiting

lines, Boardwalk designed its work system wherein each employee has its own

designated set of tasks and schedule, and set limits on the number of transactions a

Customer Assistant may serve at a time. Boardwalk follows a step-by-step process

in serving their customers/dealers, these steps are posted in the walls of the branch

so that they may be able to read it, and to be aware. Appropriate standard operating

procedures (SOPs) when dealing with the customer/dealer concerns are also

followed by the business in order to reduce hassle and further problems.

Boardwalk has also engaged itself to automation. For the customers/dealers,

a touch-screen machine is found near the entrance of the branch which dealers use

for loging in their transactions, an online catalogue is also available in the company

website where a dealer or interested customer may view and a virtual closet for

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customers to mix-and-match shirts, pants, bags, and footwear. For the business

itself, they have a point-order (P.O) system that records the transactions made at the

stockroom (the inflow and outflow of stocks) which is connected to the main branch

for monitoring, and a database to record all transactions pertaining to the branch.

The products of Boardwalk is being mass produced by the manufacturer, and

delivered to different branches across the country. The products are made-to-stock.

The Iloilo branch sends out stocks to BSOs and BWSOs in other provinces to lessen

the hassle of going to the main branch by some dealers.

III. DOCUMENTATION OF COMPANY OPERATIONS

A. System Design

1. Product and Service Design

Boardwalk provides a wide range of products that address the needs of

children, teens, and adults (both men and women). They have casual and corporate

clothes, underwear, jeans, shoes, wallets, watches, accessories, and health

products (partnered with another company). To ensure that what they are offering

would set new trends, Boardwalk has its own set of designers. All their products are

displayed in their catalogues which are also available online.

The Iloilo branch focuses primarily on delivering the tangible goods to the

dealers and customers at a good quality. The following are the procedures done by

the branch to guarantee that they are delivering their services based on what the

customers would expect from them.

1. Upon entering, the guard will greet the customer/dealer and ask about what

transaction does he/she needs to do.

2. The baggage clerk gives priority number to the customer/dealer. Priority

numbers have different colors (a) violet – transactions under the cashier, (b)

Yellow – return/ purchase order transactions, (c) blue – pending transactions.

3. Sales order controller announces the priority number to be served.

4. Encoder will get the order of the customer/dealer, and then forwards it to the

controller.

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5. Controller confirms to the customer/dealer the number of orders, number of

stocks available, and the amount to be paid. He also asks the

customer/dealer if there are other items he/she wishes to add (controller must

have the merchandising skills to encourage additional purchase from the

customer/dealer). The final order list will be forwarded to the warehouse

custodian.

6. Warehouse custodian/ customer assistant prints the order of the dealer.

7. Customer Assistant (CA) picks the actual items from the shelves.

The process of picking is also based on a number system because

they follow a First-in First-out (FIFO) procedure. Items with least number

written must be picked up first; this is then indicated in the remarks of their

record. The numbering system must be strictly followed because the main

branch could track their transactions through the Print Order (PO) System.

In picking, CAs are only allowed maximum of 3 transactions with 10 as

the total number of items – above than this is not allowed (e.g. the CA will

print and pick items for 5 dealers at the same time, and each ordered 5

items). This is to reduce the waiting time of the dealers.

8. PO controller then records the control number of the items picked in the

warehouse.

9. The CA forwards the list of the products to the cashier when he already had

the actual products at hand.

10. Cashier collects the payment from the customer/dealer. If the items were not

for payment, it will be forwarded to the releasing clerk.

All transactions pass through the cashier with or without payment.

11. Releasing Clerk gives the items to the dealer.

2. Strategic Capacity Planning

It is an essential for every business to manage system performance in a

proactive fashion, analyzing and fixing problems as consumers report them.

Boardwalk Business Ventures Inc. must therefore have the necessary tools to

quickly respond and remedy these unconventional situations in order to avoid

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bottlenecks performance. Capacity planning comes in to adequately handle future

workloads and to provide satisfactory service levels to consumers in such a way that

it is also beneficial and cost-efficient to the company. They determine their capacity

requirements and improve utilization through forecasting, budgeting, employee

considerations, facility layout design, and determining design and effective capacity.

Forecasting. Boardwalk monitors and forecasts its sales through using both

the qualitative and quantitative methods. The business has a group of consultants

that makes forecasts based on case studies and evaluation of the environment, and

sales representatives are asked to estimate their future sales based on their

observation. They are also predicting daily sales using the trend projection; however,

they are using a different approach – sales on the same day last year against the

sales on the same day this year (e.g. September 30, 2011 will be the basis of the

sales for September 30, 2012). Usually, they do obtain accurate forecasts.

Boardwalk’s field of industry requires efficient daily operations in order not to

miss the demands of the customers and dealers. To keep their business moving,

Boardwalk allocates it financial and human resources for continuous operations.

Budgeting. Annual budget proposals are usually required by the finance

department of the main office from each branch of Boardwalk. A standard format is

required in making the proposal; it includes both the monthly and yearly-expected

expense. All types of possible expenses that could be incurred by the branch like

salaries expense, travel expense, utility expense, etc. are listed except for the

supplies, which is under the production department. Managers must be careful in

making budget proposals – a branch manager must at least make sure that their

estimates are accurate because they might have a difficult time requesting for

additional budget in case of deficiency. Boardwalk’s fiscal year starts on July 6 of the

current year and ends on July 5 of the next year.

Employee Considerations

a. Nature of Work

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Sales Function. The sales function of the branch head manager is to ensure

that monthly and annual sales and profit targets are met. The annual targeted sales

are between 5-10 million pesos. It is also his duty to implement all sales programs

which includes the promotional events and advertising campaigns of the sales

department and the development programs and activities of their personal shoppers

or previously known as dealers. He is also involved in network development that

comprises the dealers or members, the Junior Marketing Consultant, the Group

Supervisor, and the Group Manager.

Administrative Function. The administrative function of the branch head

manager is to safeguard that the rules, regulations, and policies of the company are

strictly followed by his members. It is also his task to make sure that there is peace

among his employees, therefore, functioning as a guidance counselor of the

organization. He also evaluates their performance based on a standardized criteria

set by the management. He is responsible with the security of the company’s

properties of the Iloilo branch because he holds the key to the entrance and exit

doors so if there are losses, he is held liable. He makes sure that the right

employees are hired and given their appropriate positions. He also makes sure that

they do their specific tasks responsibly and efficiently. He is in-charge in ensuring

that the maintenance personnel maintain the work setting clean and orderly. He

also serves as the representative or mediator of his employees of the particular

branch to externalities. The leadership term on one branch depends on his/her

decision to stay or otherwise. The company will either approved or disapprove the

decision of the branch managers.

b. Roles

Liaison to externalities. He always informs his employees that whatever

they do inside the management, it will be reflected to him. For example, whenever

they have business meetings requested by the main branch, he is the representative

of the Panay or Iloilo Branch. Not only as a spokesperson of the said branch but

also, he is held liable and responsible to the performances of the branch.

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Change agent. For him, seeing potentials is a chance for development. If he

sees that his employees have abilities that are not directly known, he is willing to

help them improve it. He also compliments his employees even the small things or

effort they do.

Guidance Counselor. Whenever conflicts or problems arise, he always talks

to the persons involved. He maintains his professionalism because he understands

that it is inevitable that personal problems are barriers for a person to work and think

effectively. There are also some cases, wherein the employee was relocated

because he or she has an attitude problem.

3. Process Description

Process selection refers to the way an organization chooses to produce its

goods or services. It allows an organization to offer a safe and reliable product and

service through pragmatic design and effective capacity planning. Boardwalk

Business Ventures Inc. as one of the top direct selling companies in the country

makes sure that every process used in creating its products has been tested, tried,

and proven to be the best possible.

Boardwalk does not use either job or mass production. Instead, they produce

their products depending on the unserved market’s demand. Before, especially

with the non-moving ones, items are just stuck at the warehouse, which eventually

damages them. It expires ahead the actual expiration date and because of this, the

management found its old system unsystematic. Although there is a standard rule

of how much quantity will be produced for every item, most of the time, the

management still bases it on the unserved market. In terms of delivery, the items

are produced and grouped per box where in some occasional occasions reach a

maximum of 200 boxes per shipping time. These boxes are delivered from the

main branch twice a week that usually depends on the ship’s schedule.

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Also, the branch does not have a reordering point system but that which only

caters to special orders. For some cases where an item is saleable, they connect

with other branches – the closest one if possible – then the transaction will be

coordinated through their head office. Once approved, the special ordered

products will be delivered to their branch at Iloilo City. These special order products

must have a minimum cost of P10,000 to avoid external fees such as the shipping

fee. This minimum standard was necessitated because the management finds it

unsystematic and stressful for the dealer’s part to deliver one, two, or three items

per order. If the special order is by volume, then the company will pay for the

shipping fee. If there are available products from Carmona (warehouse), then they

just get there right away. They also check with the other branches and deliver the

items trough JRS or LBC.

Moreover, they also have schedule for item pullouts. The branch pulls out

items everyday but the shipment of the general pullouts of all the items

accumulated depends if the 20-footer pullout delivery box is already full. Therefore,

the items pulled out from the branch just stay in the 20-footer box until it is full for

shipment. Items that are out of campaign or promos are pulled out.

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4. Facility Layout

First Floor Layout

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Second Floor Layout

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Other facilities include:

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5. Design of Work Systems

Job Design

Internal

o Branch Head Manager-Mr. Neil de la Cruz

Nature of Work

Sales Function. The sales function of the branch head manager is to ensure that

monthly and annual sales and profit targets are met. The annual targeted sales are

between 5-10 million pesos. It is also his duty to implement all sales programs

which includes the promotional events and advertising campaigns of the sales

department and the development programs and activities of their personal shoppers

or previously known as dealers. He is also involved in network development that

comprises the dealers or members, the Junior Marketing Consultant, the Group

Supervisor, and the Group Manager.

Administrative Function. The administrative function of the branch head manager

is to safeguard that the rules, regulations, and policies of the company are strictly

followed by his members. It is also his task to make sure that there is peace among

his employees, therefore, functioning as a guidance counsellor of the organization.

He also evaluates their performance based on a standardized criteria set by the

management. He is responsible with the security of the company’s properties of the

Iloilo branch because he holds the key to the entrance and exit doors so if there are

losses, he is held liable. He makes sure that the right employees are hired and

given their appropriate positions. He also makes sure that they do their specific

tasks responsibly and efficiently. He is in-charge in ensuring that the maintenance

personnel maintain the work setting clean and orderly. He also serves as the

representative or mediator of his employees of the particular branch to externalities.

The leadership term on one branch depends on his/her decision to stay or

otherwise. The company will either approved or disapprove the decision of the

branch managers.

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Recruitment Stage

There are three means of finding possible and probable applicants and

employees in Boardwalk namely; internal, external, and campus recruitments.

In internal recruitment the company looks for employees who deserve to be a

promoted a higher position. This is traditionally done in almost all businesses, from

entry level to the highest position depending on the effort that employees are

exerting.

In external recruitment, they hire new staff through job fairs and job postings

for no specific age limit as long as they can meet qualifications for the position. They

are into campus recruitment as well. Hiring fresh graduates are on of their main

goals in manpower planning. They consider fresh graduates for they know that fresh

graduates have lesser demand to compensation than to those who are experienced

enough. The branch head manager does believe too that, fresh graduates have

fresh ideas with them that the company can use to maximize their profit and have

better strategies.

The company uses campus recruitments that are usually held at placement

office for personal discretion, PESO (Philippine Employment Service Office) for

passing necessary files (resume’s) of possible applicants and the most common of

all, the Job fairs that are usually conducted by the main office (Nationwide)

commonly to schools and malls. Mr. Dela Cruz also states that he also employees

that have recommended to him by a referrals. Recommendations are very reliable

source of applicants according to him for they have already good feedbacks from the

one who referred to them.

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Selection Stage

Gathering information about the applicants can be done by first, passing

application forms including bio-data and resume’. The company asked applicants

that 4-year educational attainment. Right after that, the company gives 30 minutes

examination which consists of general information in English and Mathematics.

Lastly, is a one-to-one interview with the branch head manager. Sometimes in

personal interview, the manager asked the candidates to show their talents to test

their willingness. According to Mr. Neil Dela Cruz, branch head manager of

boardwalk, he prefers his instinct rather than relying on the placement examination

results because for him, it is not reliable. He said that everyone can answer the

examination excellently if all are given enough time since it is easy.

Manager’s Preference

The manager prefers to hire employees that are single. For him, married

employees have the possibility to lose their concentrations towards their work

because they might have a family problem that will be resulted to poor performance

of the employees. Another thing is that, single employees can extend their time as

long as they can for they have all the time unlike to those who are married that is

limited.

External

o Dealership (offline and online)

Be a Personal Shopper (Dealer)

The company offers unlimited opportunities through a tried-and-tested business

model. Incentives such as: 25% discount, Lifetime Membership, Special Credit

Program, and Performance Recognition for Top Performing Dealers, and Special

trainings are made available exclusively for the personal shoppers.

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Qualifications and Requirements

1. Select a sponsor. If you do not know any existing member, a boardwalk

member/staff can assign a sponsor residing nearest to you.

2. Prepare the requirements:

Photocopy of valid ID

2×2 ID picture

Proof of Billing

There are three options in processing the registration.

1. Visit the nearest Boardwalk branch and apply for dealership. (Offline)

2. Submit requirements through the company’s e-mail at

customercare@boardwalk.com.ph (Online)

3. Submit online registration form (Online) (appendix)

4. Attend a BOS (Business Orientation Seminar). BOS is conducted daily at all

branches. Customers who applied for dealership online willreceive a reply about the

various dealership programs available within five days of the filing for membership.

Incentives and Privileges:

25% Basic Discount

8% – 21% Rebates

Sponsoring Bonus

Free Entrepreneurial Trainings

Exciting Prizes & Fun Games Monthly

Many more perks and advantages

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Work/ Job Specialization

The company assigns tasks and jobs to particular individuals or groups. Every

employee have various and different roles to play. Yet, the company is open to

flexibility as an option when uncontrollable matters occur. For example, if one

member of the administration is absent, one employee can fill-in with the position.

There are two primary reasons why they employ this: efficiency and

effectiveness. Efficiency in terms of expertise will make it easier for employees to

adapt and adjust with the demands of the work. Effectively because being an expert

entitles a person to have specific and certain responsibility that should be well-

known and familiar in order to gain successfulness. Even though the company offers

trainings and seminars, they still prefer to employ people based on what they are

good at already. In boardwalk, employees are hired based on their proficiency,

competence, and know-how. The employees are not placed in a box in order to be

hidden from other opportunities out of the usual work and job specifications, they are

also encouraged to at least familiarize other’s work because if someone gets sick or

is not available that day or time, then someone can fill-in. The company however

does not have a reserved team for absenteeism purposes.

Advantages. Job Security

It will motivate the employees of Boardwalk to work hard and perform well that will

avoid cost incurred in turnover. In turn, the company will gain good reputation and

reliability towards their customers because their employees are enthused to produce

better services. This is also highly beneficial for the company because of low wages

and training costs.

Disadvantages. Employee Drawbacks

Employees are not machines that are used with monotonous activities and

repetition. Even though it is mentioned that the company allows employees to fill-in

during absences, it is not always a beneficial option since every person has its

unique set of responsibilities. It will be challenging to carry out the task efficiently.

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Some others would prefer job rotation so that they will gain broader experiences and

knowledge about the operations and functions within the company.

Behavioural Approaches to Job Design

The company does not practice job rotation, enlargement, and enrichment because

they already have specified tasks planned per month.

Developing Work Methods

• Working conditions

Inside the branch outlet, the temperature is neither hot nor cold because of the

presence of a good air conditioning system. Even though outside the outlet it is

very hot, the humidity inside is fine; not dry nor wet attributable to the centralized

air condition. The room of the manager is colder compared with other rooms

inside the outlet. But in general, the outlet has good ventilation.

The illumination and lighting inside is functionally good because it provides

enough light for employees to work properly. However, in terms of aesthetics and

appeal, it fell short because it does not have lighting that display attractiveness to

invite more customers and consumers. The color of the wall is fine and some

parts are colored violet and yellow, the theme color of the company.

6. Location Planning & Analysis

The company’s recent location is at GF St. Andrew Bldg,28Mabini St, Iloilo

City. The location is strategically placed when Avon and other top direct selling

businesses of the nation are still there, yet, because the Avon changed location, the

manager viewed their place as one of the company’s concerns because the place

are surrounded by different store/establishments that are not cohesive with their

representation. Also, with small size of area, the idea of expansion in the location is

not an option. Yet, the manager still hopes to get a good location near the top and

leading direct selling businesses in the country in order to be highly competitive and

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have successful expansion not only of the physical structure but also increased in

membership and sales.

Their location can be a possible contributor as to why for last year, they did

not met their quota. The place is not strategic enough because it is surrounded by

hardware that has huge trucks and vehicles that tend to cover the little signage

Boardwalk made.

B. Quality

1. Management of Quality

Quality Control

For the company, one of the common situations they face is concerning

quality in terms of defective products and incorrect orders. Some problems with

quality are due to handling in delivery and storage. The company takes appropriate

actions to maintain quality and prevent damages and errors. First, is their approach

in handling inventories and stocks. The company uses FIFO (First-in First-out). The

Quality Control Personnel is in-charge of making sure that the olds stocks should be

the first to leave the storage area. To ensure this, the company places a tag on each

item about some necessary information and the date of the delivery of the product. If

there are damages, it is the SOP (Standard Operating Procedure) of the custodian

to report the damages for pull-out everyday. If the management is unable to report

the damages, then the employees will be liable for that. The damaged items can be

return and be replaced within seven days.

In terms of ordering, the management ensures that the dealer or the personal

shopper gets the right items. What the company does is to assign a baggage clerk

that will check if the items ordered matched the items placed inside the bag. Also,

the guard checks the bag and the receipt before the personal shopper leaves.

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TQM

Customer-oriented (Employees and leaders)

The company is customer oriented mainly because it is a direct selling

business. The nature of the business is to provide convenience and services to the

customers. The company values relationship. This is evident with its core values:

Customer-ship, Unity, and Respect.

Leadership

He pointed out the 4M’s: model, motivator, mentor, and multiply. He said that

every leader should be a good role model to his followers because according to him,

“in order for my employees to do their job well or to be in the way I want them to be, I

must lead by a good example”. All leaders should be motivators because every

employee they have accepted do not only possess skills and qualifications that

passed their standards but also, potentials that can be turn into skills and be further

developed. Another one is the idea of mentorship. It is significant for him to mentor

his employees because he wants them to grow progressively and be consistent in

terms of their development. He constantly gives them advices and points of

improvements. Sometimes, he really encourages his employees to have a one-on-

one conversation and training with him. It is also important to duplicate the “self’

according to him. he learned that it is a fulfilment to produce a leader. For example,

if a leader can produce a Branch Head Manager from a low- level position in the

company.

He said that he is a focused, results- oriented, and rule- oriented kind of a

leader. He also said that most of his employees perceived him as friendly but when it

comes to work he is strict. He always reminds his employees that they need to work

hard for the best interest of the company. He has his own personal set of standards

and limitations because he believes that it is a necessity to have a small gap or

boundary between him and his employees in order to prevent unethical practices

and injustices inside the work setting. He pointed out that every time a company

have “Morning Workout” which is usually done daily but now they do it every Monday

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only, is an evaluation activity in order to correct inefficiencies and in order to assess

the performance of the employees. He usually adds a talent showcase of each

employee for them to be able to start the day with confidence. He is also a type of

leader who looks closely and gives importance to the communication skills of his

employees.

Formula for Success (Leader)

Teamwork is what makes an organization successful. Everyone should be

responsible because if one will not work hard, then the achievement of the company

will be sacrificed. Lack of teamwork is like a domino effect, it could mean the end of

the company. He said that; “first, you need to accomplish your task first before

helping others because it will be a burden for the team

Strategic planning

In direct selling arena, Boardwalk needs to compete with several rivals in

order to keep in the business going. To formulate appropriate managerial actions,

Boardwalk has a strategy forum, an executive meeting of per area high-level branch

head together with the consultants of the company. One strategy they are currently

pursuing is to penetrate Class B customers (the corporate and the cosmopolitan);

Boardwalk expands its market from class D and C.

Employee responsibility

Each Staff has a detailed set of activities to be done. Boardwalk reorganized

their system of work and develops a new method where every employee has its own

job description to focus in order to monitor and evaluate the work performance

easier. Boardwalk schedules each employee’s tasks.

The company has specific goals and objectives established for the members

of the organization to achieve. Well-defined rules and regulations guide and

influence behaviors and decisions of its members. Because of this, duties and

responsibilities of employees are made clear, resulting to efficiency and order in the

workplace.

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Boardwalk has a wide span of control for its organizational structure. As

shown in its organizational chart, each superior or supervisor (Sales and Operations)

is responsible for at least five other employees.

Departments are divided by function of work. Employees are divided into two

divisions: Sales and Operations, and employees under them are further subdivided

depending on their nature of work or function.

Tasks are formalized. Employees are guided by certain rules and policies on

how they are supposed to accomplish their work. Employees are advised to follow

these rules so that it would be easier for them to accomplish their tasks.

Continuous improvement

After performance has been measured in terms of sales, they compare their

actual performance with the target and see whether they were able to achieve it or

not. If the target is not achieved, they analyze the decisions and try to find out what

caused them.

The management reviewed and studied the reasons why they were not able

to meet their target. These solutions usually come in form of programs that would

focus on the retention of their members as well on how they could increase or widen

the scope of their network.

The management monitors everyday activities from the branch level up to the

employee’s. The latter is done through feedback from supervisors or employees

holding the authority to do so.

Cooperation

The company encourages cooperation through group decision- making.

The company allows group-decision making because they believe that every

idea of an employee is a potential solution to the problem or a new innovation for the

business. They also encourage employees to participate especially in operational

procedures of the company.

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The branch head manager is the one who forms the teams in Iloilo whenever

there are projects. He allows his employees to share their ideas individually and

afterwards, discuss them as a group. He is also open to the suggestions and

comments of employees having low-level positions. But in matters that it requires the

decision of the main branch, he said that he does not hesitate to call for the

assistance of the main office.

Decision-making for Boardwalk, Iloilo is decentralized. The branch head does

not make decisions on his own; instead he consults his subordinates, especially

when it comes to major decisions. Supervisors are given the freedom or right to

make minor decisions, but they usually consult the branch head about it.

Training and education

New staffs are being oriented by providing them appropriate training

proportional to their position. Trainings under the field of sales were conducted by

Mr. Dela Cruz, while preparations under the operational field were held by the

Operational Technical Training Specialist. Usually, trainings are held at the office

itself where the new staff was assigned. Preparations under the Operational usually

last up to 3 days while there is a 3 –month on-going learning process for sales.

There are also ongoing trainings for existing employees. For sales personnel,

there is what we called Comprehensive trainings, Enrichment programs for handlers

(outlet) and Training institute; wherein sales personnel undergone before being

deployed to different branches.

Partners

The company uses diversification to promote growth of the business through

collaborating with other firms such as Smart Communications, Pioneer Insurance,

and Zenzest Colognes. Boardwalk extended to loading business through selling

Smart pre-paid load. Dealers are also given the opportunity to be Smart load

retailers through their E-wallets where they could use their accounts to sell load.

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Boardwalk branches also sell Smartbro broadband, life and death insurances, and

perfume line by Zenzest.

Information Technology

The company has a computerized system (E-Wallet System and Database

System) to record some operation procedures. For the manager, it makes

transactions easier and faster. It is also a helpful tool in identifying targets and

factors for the expansion and development of the company. The company

encourages their dealers and employees to explore the World Wide Web. They have

a computerized kiosk for transaction and information purposes. Because of the

substantial growth of online networking, they are introducing the concept of working

online suing tablets, android phones, laptops, and personal computers to their

dealers or personal shoppers. They also encourage their customers to shop online

and download the latest catalog of the company.

Strategic Implications of TQM

Strong leadership

It is remarkable that the leader has an in-depth knowledge about company.

He knows the detailed information of the company like; the history, philosophy, core

values, mission, and vision. He also identifies the major alliance partner

organizations like: Smart, Pioneer Insurance, and Zen Zest and many more and

explained their specific contributions to the company. He has his own set of goals

that are different from the company but still those goals are not highly

distinguishable towards the company.

A rule-oriented and a focused leader will achieve greater heights in life

because they know how to be a good follower of rules and regulations standardized

by the organization.

Operational plans and policies

Being in the industry where there are many competitors, Boardwalk works

hard to ensure that the performance of the business and its people could

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meet the expectations of its customers. It practices environmental scanning,

and forecasting.

Boardwalk monitors and forecasts its sales through using both the qualitative

and quantitative methods. The business has a group of consultants that

makes forecasts based on case studies and evaluation of the environment,

and sales representatives are asked to estimate their future sales based on

their observation. They are also predicting daily sales using the trend

projection; however, they are using a different approach - sales on the same

day last year against the sales on the same day this year (e.g. September 30,

2012 will be the basis of the sales for September 30, 2013). Usually, they do

obtain accurate forecasts.

Boardwalk’s field of industry requires efficient daily operations in order not to

miss the demands of the customers and dealers. To keep their business

moving, Boardwalk allocates it financial and human resources for continuous

operations.

Annual budget proposals are usually required by the finance department of

the main office from each branch of Boardwalk. A standard format is required in

making the proposal; it includes both the monthly and yearly-expected expense. All

types of possible expenses that could be incurred by the branch like salaries

expense, travel expense, utility expense, etc. are listed except for the supplies,

which is under the production department. Managers must be careful in making

budget proposals – a branch manager must at least make sure that their estimates

are accurate because they might have a difficult time requesting for additional

budget in case of deficiency. Boardwalk’s fiscal year starts on July 6 of the current

year and ends on July 5 of the next year.

Return and replacement policy for branch and branch satellite office

Only legitimate and registered members of boardwalk business ventures, inc.,

can return and replace products

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Bring Trust Receipt Agreement of the products for return or replacement of

the products

The NO TRA, NO REPLACEMENT OR RETURN POLICY APPLIES

Ensure that all items for return or for replacements are in good condition

Items will only be allowed for return or replacement within 30 days period.

Damaged items within the 7 day period from the date of purchase can be

replaced with the same style of the product

Damaged items beyond the 7 and until the 30th day from the day of purchase

shall be accommodated for purposes of repair.

Non-returnable items: promo items, white items, undergarments, wallets,

accessories, tumblers, and home essentials

Bags can be replaced with other style of bag

Belts can be replaced of size only

Return and replacement of items is still subject to management discretion

For branch return and replacement procedure

1. Allow the security guard to check the item.

2. Fill-up the return slip, and let the baggage clerk validate it.

3. Give the filled-up return slip to the return check booth for processing.

Mechanism for feedback

The company’s head ensures that feedbacks are given importance because

he believes that every employee deserves to be heard. He encourages his

employees to share their ideas and have that confidence to speak about

matters concerning the company.

Through performance evaluation, the company was able to collect ideas,

suggestions, and comments of their employees. Also, the company allows

this so that the leader will be able to identify the reasons why they are

excellent at some levels and why problems occur at certain degrees.

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Quality Attributes in Service

Benchmark

Boardwalk practices competitive strategies such as the cost leadership and

differentiation strategy. It offers lower range of prices compared to related

competitors at the same time providing good quality products. The company

also offers unique design of products especially in its clothing line through

their designer Avel Bacudio.

2. Quality Control/ Acceptance Sampling

Before products are shipped from the warehouse in Carmona, the checker

will check if the products have any defect. If there is none they will forward the

products for shipping. When the products arrive at the branch the custodian will

check if there are any damages on the products. If there are damages, it is a

standard operating procedure for the custodian to report the damages so that they

can pull out the damaged products. The branch also uses the first in first out basis

so that the older stocks will not stay in the inventory for too long. Since some of their

products like the shoes have expiry dates, by using FIFO they can lessen the

wastage brought about the product being damaged because it is stored far too long.

To ensure the quality of their service the customer care assistant checks the

performance of the staff. Another way they ensure the quality of their service is that

before the products are released to the customers, they check if the products are

complete and not damaged. In case that some of the products that the customers

got is damaged they can return and replace if there are still inside the branch or

within 7 days. If they are over 7 days already, the choice that they have is for the

branch to repair it.

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For branch return and replacement procedure

4. Allow the security guard to check the item.

5. Fill-up the return slip, and let the baggage clerk validate it.

6. Give the filled-up return slip to the return check booth for processing.

C. Supply Chain Management

From Boardwalk’s warehouse in Carmona, the products are shipped to

the different branches. After the products arrived, the custodian and the checker will

check if the products have any damages before they put it in storage. The products

are pulled out from the storage when there is an order for them. After the order is

placed, it is encoded and forwarded to the customer assistant for picking. After the

order are picked and properly accounted for, it is released to the customers.

There are cases that some of the products ordered by the customers are not

available to the branch. If this happens they informed the main office about it so that

they can deliver the ordered products to the branch. If the order is urgent, they

coordinate with the other branches and see if the particular product needed is

available in that branch. If it is available then they will ask the branch if they can

send the product to the Iloilo branch.

Warehouse

Other

branches

Storage Service Customer

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D. Inventory Management and Scheduling

1. Inventory Management

In order to ensure that the company is running smoothly, one should know the

key aspects of an inventory. An employee should understand how long it takes for a

supplier to process an order and execute delivery. Inventory management also

demands that an understanding of how long it will take for those materials to transfer

out of the inventory be established.

Boardwalk constantly monitors its stocks and inventories to make sure that

their stocks are enough to meet purchase order demands. They apply different

control measures for the order, replacement and pull-out of these items.

In the case of Boardwalk, their head office located in Metro Manila uses the

periodic system to check the inventory of its different branches nationwide. The head

office quarterly checks the inventory of other branches including the Iloilo branch.

While their main warehouse located in Carmona, Cavite handles the allocation of the

stocks. According to Mr. dela Cruz, Boardwalk’s Brand Manager, if the head office

finds something wrong in the inventory of their branch like shortages in the stocks,

the 50% of it was being charged in the employees and the other 50% was being

shouldered by the company.

In case of shortage of stocks before schedule, the management request for

replenishment right away but the decision depends on the discretion of the main

warehouse. In addition, the shipment of stocks from the main warehouse to

Boardwalk’s Iloilo branch is done twice or thrice a week. It depends on the unserved

items of the branch, the items that are needed to be replenished and the scheduled

trips of the boat. Since their system is now automated, their branch, including the

main warehouse can check everyday their unserved items and replenished stocks.

Boardwalk Iloilo orders the items by volumes, maximum of 200 boxes per shipment,

to avoid incurring additional costs and expenses.

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The process starts when the Iloilo branch sends an order to the main

warehouse then one personnel from the main warehouse will pick the items. Then,

the main warehouse will prepare it for shipment. The shipment from the main

warehouse to the Iloilo branch usually takes a longer time because of the schedule

of the trips. The items will be then delivered to Boardwalk’s Iloilo branch and will be

received by the Warehouse Custodian.

Mr. dela Cruz said that, the warehouse custodian and the customer assistants

need to finish setting up the items in the main warehouse as soon as possible. But

the branch has a standard time of two days for them to finish it. However, if they did

not able to arrange the items within two days, they have no choice but to do

overtime.

The First In, First Out system is also used by Boardwalk when disposing

inventories. Older stocks are distributed first before the new ones to ensure quality.

The warehouse custodian is also responsible to make inventory reports for items

that are being delivered and pulled-out to make sure that stocks are properly

accounted for and also to detect losses in stocks.

2. Aggregate Planning

The main goal of any company is to match resources with the expected

demand in the market and in order to do that; they need to allocate their resources

properly. In order to do this, businesses need to take into account various factors

such as people management, overtime, capacity and inventory levels.

Intermediate Plan

For Boardwalk’s intermediate plan at general level, the company is

considering employment and people management. The company tries to develop

and improve their external recruitment. They are hiring new staffs through job fairs

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and job posting for no specific age limit as long as they can meet the qualifications

for the position. They also engage in campus recruitment where hiring fresh

graduate candidates are one of their main goals in manpower planning. They

consider fresh graduates for they know that fresh graduates have lesser demand to

compensation than to those who are experienced enough.

The company has two goals, the short-term and long term goal. The short-

term goal of the company is to achieve monthly target (as a whole branch). Long-

term goal includes expansion of outlets. The company is currently planning to put up

outlets in other areas, specifically in Sara, Iloilo. But before arriving at the plan, they

conducted studies and checked the market potential in the area.

Performance Appraisal

Performance evaluation is very necessary for maximizing profits and monitors

the over-all performance of the company. It is regularly done monthly or yearly. In

measuring performance of the branch, the company uses sales and number of

dealers or active members (or network). Dealers include new recruits, active

members and active Junior Marketing Consultant (JMCs), Group Supervisor (GS),

and Group Manager (GM), members that is exclusive to Boardwalk.

Long Term Plan

The long term plan of Boardwalk to compete with these seasonal factors is to

transfer their branch location because their business is the only one left behind in

their current place. Although, according to Mr. dela Cruz, this plan will only happen

after a few years from now because they still have three years to stay in their current

location as stated in the contract. They are planning to transfer in the city proper

somewhere near other direct-selling companies such as Avon and MSE because it

is the center of the city and they are also considering the foot traffic. However, until

now, they still do not have a specific place to transfer into. If ever they will find a

proper location, they will only rent the place and the management will shoulder the

interior construction of the building.

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3. Enterprise Resource Planning (ERP)

In order for the company to share information across its functional areas,

Boardwalk uses a software or a database called- the Boardwalk Information System

(BIS). Specifically, the PO (Purchase Order) system facilitates the ordering and

releasing of items from the baggage clerk, sales order controller, encoder, controller,

customer assistants, and cashier and up to the releasing clerk. This system is very

helpful in terms of utilizing the number system of the company, mainly to avoid long

waiting lines. On the other hand, the sales department handles the collection of

money.

To secure the information stored in the system, the management makes sure

that there is a limited access in the system and it depends on jobs of the employees.

For example, the cashier can view this system in their computers through the PO

sequential viewer which is arranged by the customers’ orders. While the branch

manager, Mr. dela Cruz, can only view the system but cannot access it.

Boardwalk has an internal Information Technology (IT) division wherein their

internal managers develop the programs. If minimal problems occur in their system,

the Operational Technical Training Specialist handles the problem. However, if

major problems happen, the IT manager from the branch will contact a main

technician from the head office (Manila based).

4. JIT and Lean Operations

Boardwalk’s Iloilo Branch Office does not use a just-in-time system for their

inventory. An automated system was developed to monitor the daily level of

inventory for every branch. This system, which serves as some sort of a database

that connects every branch to Boardwalk’s main office, sends a report regarding the

number of unserved (unavailable) orders for the whole day to the company’s main

warehouse in Carmona, Cavite. This allows them to replace/replenish inventory on a

daily basis. Inventory items are exported from the main warehouse early morning

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each day and delivered to different branches across the country. The shipment

schedule of these items may vary depending on the number of trips the shipping

companies have. In this case, Boardwalk Iloilo branch receives shipments of

inventory two to three times a week.

In the context of services, Boardwalk Iloilo branch applies the just-in-time

system since services are provided when customers (dealers) need it. The quality of

customer service is very important for direct selling (networking) businesses. Thus,

the management makes sure that their employees are able to provide fast, high

quality, and consistent service to their customers.

To accomplish this, Boardwalk tries to minimize or (if possible) eliminate

waste during the process of providing service to their customers. As much as

possible, they eliminate disruptions that may occur during the process. A number

system is strictly followed for all the transactions in the branch office. This is done to

make sure that customers/clients are prioritized accordingly and to eliminate

conflicts that may cause delays or conflicts between customers and employees as

well. These priority numbers are also color-coded to minimize confusion between

different transactions. This system is also their way of managing waiting lines.

According to the manager, disruptions and conflicts in waiting lines were eliminated

since the system was implemented.

As every transaction goes through each stage of the process, standard

operating procedures are followed to minimize delays. According to the manager,

they seldom encounter disruptions or delays for transactions, except for the cashier.

Since all kinds of transactions involve going to the cashier, this is the stage where

delays usually occur. Also, there is only one cashier to handle different transactions

of customers.

Boardwalk also minimizes processing wastes through its automated system.

In terms of operations in the branch office, delays are reduced since the system

connects each personnel involved in every stage of processing transactions through

computers. This also lessens the use of paper for transactions. In the context of

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branch to branch or branch to main office transactions, Boardwalk’s automated

system also allows them to contact, update, or send reports to the main office

without much hassle.

5. Maintenance

Boardwalk uses/practices a combination of three types of maintenance:

breakdown, preventive, and total productive maintenance. These are applied both to

their facilities as well as the performance of their employees. A particular staff, the

Customer Care Assistant, is responsible for the overall maintenance and monitoring.

His tasks include making sure that the office and its facilities are kept clean and in

order all the time, as well as supervising the performance of each employee in the

branch office. The Customer Care Assistant reports to the branch manager every

day to give updates on problems regarding the performance of employees and

several other concerns.

A schedule is followed for the maintenance of office facilities and equipment.

A person is assigned to clean, or if necessary, fix the air conditioning units at least

once a week. A group of employees is also assigned to clean the office for each

working day. They also have a fixed schedule for general cleaning every month. For

the service vehicle used, a technician from the main office comes to the branch once

a year to check or fix it if necessary. On the other hand, a morning workout is done

in the branch office every Friday to maintain and improve their relationship with the

employees as well as the dealers (customers). During this time, employees and

clients are given the chance to discuss their concerns with the management.

Through this, they are also able to receive feedback on what certain aspects of

operations need to be changed or improved.

In terms of the replacement of certain facilities or equipment, the manager is

allowed to make his own decision regarding low volume or urgent needs without

asking permission from the main office. This includes minor repairs and small

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amounts of purchases (office needs). For high volume purchases, the manager

should report it to the main office and request for replacement.

6. Scheduling

Boardwalk’s branch office operates from 9 am to 7 pm, Monday to Saturday.

This also includes a two-hour break for all the employees. The office is not open

during “red holidays” or national holidays. On local holidays, however, operations

continue since more customers come during these times. They also extend working

hours during due dates to accommodate more customers.

For the personnel, only the Sales Training Assistant (STA) follows a particular

schedule very month. Boardwalk schedules the number tasks as well as the areas to

visit or each STA for the whole month. These include:

8 visits to Boardwalk Services Station (BWSS)

4 days of duty in the main branch (every Monday)

4 Leafleting

2 days outside the main branch (checking of Branch Satellite Offices or BSO)

2 house-to-house visits to dealers

10 or 1 Pre-delivery Services (PDS)

IV. DECISION MAKING

A. IDENTIFICATION OF PROBLEMS/ POINTS FOR IMPROVEMENT IN

OPERATIONS MANAGEMENT

“Specialization”

When an employee has to multi-task to cover responsibilities of other

positions, this happens when an employee is absent or a position is left vacant.

According to the branch head, this caused no problem to the organization so far

since the employee filling in for the position is willing to do the job and is paid

accordingly.

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“Security Guard Problem”

The job of the guard is basically to secure the place and to assist the logging

in and out of the employees and dealers. However, in the case of Boardwalk, their

guard seems to have special tasks that generally are not part of he’s job. Like during

one of our visits in the branch, aside from guarding the place, he was the one who

informed the manager that we were going to have an interview, which basically the

job of one of the employees in the branch. Also, because some of the time, the

baggage clerk was inside the office doing something else, the guard was also the

one giving numbers to the customers. This can cause delays because the guard

cannot allocate his time properly since he is doing something else, aside from his

job. The security of the branch is also at stake because the guard is doing

something else.

“Existing Facility Layout”

The stocks area of the branch is well-arranged, however, there is no enough

space or separate area for pulled-out stocks – some of these are placed in the

manager’s office. Newly arrived items also pass through the main entrance and are

placed along the hallway.

The aisle and stairs in the stockroom is not wide enough, where only a single

person can pass through. The rooms in second floor have no connecting door.

These slow down the flow of operations at the stockroom because the customer

assistant needs exert much effort – go down on one stair and go up on the other in

order to collect items from the other room.

The stockroom does not have an exit door.

47

B. FOR EACH PROBLEM IDENTIFIED:

1. Specify objectives and criteria for choosing a solution

“Specialization”

Objectives

• To reduce waiting lines

• To decrease delays in transactions

• To minimize confusion in terms of the organization of tasks

Criteria

• Should not affect the flow of transactions

• Should maintain ethical standards

• Should uphold the goals, values, and philosophies of the company

“Security Guard Problem”

Objectives

To reduce delays caused by the guard’s unnecessary special tasks

To help improve the flow of services

To properly identify the specific job descriptions of the guard and baggage

clerk

Criteria

Should not disrupt the flow of operations

Less cost

Should be effective

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“Existing Facility Layout”

Objectives

To reduce the time it takes for a customer assistant to finish picking the

items ordered.

To improve the flow of traffic in the stockroom.

To make hallway and manager’s office spacious from outside view.

Criteria

Should not adversely affect the operation while improvement is on

going

Should allow workers to adjust easily

2. Develop Alternatives

“Specialization”

a. The company should orient and train the employees on every tasks

within the company (Familiarization)

b. Job Rotation

c. Remain as it is (Work Specialization)

“Security Guard Problem”

a. Boardwalk can add one more guard in its branch.

b. Boardwalk can add one more baggage clerk.

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c. Explain and implement job descriptions of the guard and the baggage

clerk.

d. Do nothing about it.

“Existing Facility Layout”

a. Make minor renovations in the stockroom – First floor: provide

room/area for pulled-out stocks, and place a door at the back. Second

floor: widen the stairs or make a connecting door between the two

rooms.

b. Transfer to another location

c. Do nothing

3. Compare and analyze alternatives using operation

management tools

“Specialization”

Advantages

Alternatives Advantages Disadvantages

1. The company

should orient and

train the employees

on every tasks

within the company

(Familiarization)

Increased

awareness on

different areas in

the workplace

Increased

employee

flexibility

The employees might

not be able to adapt

and adjust easily

2. Job Rotation Increased

employee

flexibility

Broadens the

knowledge of

Lessens motivation of

the employee to work

hard in one area

Takes time to learn

the new job

50

employees

about the

different

operations within

the company

Prevent frauds

and malpractice

Reduces uniformity

and cohesiveness

3.Remain as it is

(Work Specialization)

Increased

efficiency and

productivity

Job Security

Monotonous and

repetitive tasks

Lesser flexibility

Increased

Absenteeism

“Security Guard Problem”

The first alternative is for Boardwalk to add another guard in its branch. By

doing this, the management can ensure the security of the branch. They will work

hand in hand in order to secure the place. However, by choosing this alternative

Boardwalk will incur addition costs for the salary of the other guard.

The second alternative is for Boardwalk to add another baggage clerk. This

alternative will make sure that the other baggage clerk will do the checking of the

items of dealers while the other one will concentrate on his or her job on the cashier.

This can also help the guard because he can now concentrate on his job, which is

making sure that their branch is secure and safe. Basically, adding another baggage

clerk can solve the problem since it can help the guard to concentrate on his work as

well as making the baggage clerks divide the work among themselves.

Explaining and implementing the job descriptions of the guard and the

baggage clerk is also an alternative. This can avoid confusion for both the guard and

the baggage clerk. Customers will also be able to approach the proper employee if

51

they have questions or problems. Also, this alternative does require additional costs

for Boardwalk.

“Existing Facility Layout”

The first alternative is to make minor renovations in the two stockrooms. For

the first (ground) floor, providing a room or an area/space where pulled-out stocks

can be placed can reduce clutter and crowding of boxes of items. Doing this can

help in the proper arrangement and organization of the stocks, as well as decrease

the likelihood of confusion on the part of the staff. Also, they no longer have to place

these pulled-out or out of campaign items in the manager’s office since there is

enough space. Another recommendation would be improving access to the second

floor stockrooms. This includes installing wider, high-quality stairs and placing doors

that can connect the two stockrooms. The two rooms should be arranged or laid out

in such a way that would be more convenient to the staff. That is, a door or entrance

connecting the two stockrooms can give the staff access to both rooms without

having to go down and climb different flights of stairs. This way, access to the

stockrooms is improved and much time can be spent in the flow of operations. This

alternative requires the management to spend or invest in the renovation of these

stockrooms.

Transferring the branch office to a bigger or wider location is another

alternative. They have to find an area or building large enough for their offices and

stockrooms. This way, they may no longer need to make certain renovations if the

new location is already in good condition. However, this alternative requires a

greater amount of effort and investment from the management and also involves

great risk. Since they have to move to another location, all the facilities, equipment,

and inventory also have to be moved. This would likely take a longer time to finish.

At the same time, they have to make sure that all their dealers/clients are informed

so that they would know where the new office is located. They also need to consider

52

other factors such as the price (lease) of the new office/building and its accessibility

to customers.

4. Select the best alternative

“Specialization”

We chose that the company would orient and train the employees on different

tasks in the company. This should have some limitations because we do not want

the workers to lose their specialization. What we want to suggest is to at least give

them enough knowledge to suffice not only the absence of an employee but also the

tasks left in order to ensure the efficiency and smooth flow of transactions. Also,

even though this is not a flawless proposal, the advantages offset the

disadvantages. Incorporating the elements of job specialization and cross- functional

trainings is beneficial and significant to the growth of the company towards a globally

competitive generation.

“Security Guard Problem”- Alternatives b and c, Boardwalk can add one more

baggage clerk and Boardwalk can explain and implement proper job descriptions of

the guard and the baggage clerk.

“Existing Facility Layout”- Make minor renovations.

V. REFERENCES

Boardwalk. Direct Selling Company. Retrieved March 24, 2013 from

http://boardwalk.com.ph/direct-selling-company/

53

Roberta Russell & Bernard W. Taylor. (2006). Operations Management 5th

Edition.

William J. Stevenson. (2002). Operations Management 7th Edition.

VI. APPENDICES

Appendix A

A Dealer Registration Form PLEASE ENTER ALL DETAILS

FIRST NAME

MIDDLE NAME

LAST NAME:

EMAIL ADDRESS

AGE

BIRTHDAY

ARE YOU EMPLOYED? Yes No

CIVIL STATUS

TIN NUMBER

EDUCATIONAL ATTAINMENT

DEGREE

BUSINESS / SOURCE OF INCOME

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CONTACT NOS

COMPLETE ADDRESS (Including zip code)

HOW DID YOU LEARN ABOUT BOARDWALK? Flyers Billboards

Internet Referral

NAME OF PERSON WHO REFERRED YOU

In Case of Emergency

Contact Person

Contact Number

Send

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Appendix B

Mr. Niel dela Cruz Branch Manager, Boardwalk GF St. Andrew Bldg,28 Mabini St, Iloilo City February 29, 2013

Dear Sir/Madam:

Good Day!

We are the third year BSBA-Marketing students from University of the Philippines-Visayas College of Management. As a requirement for our BA 187: Operations Management class, we need to make a company study regarding the basic principles, procedures, processes and techniques used by the management system to create goods and/or provide services. In line with this, we would like to request for an interview and an actual observation of your business operations on a date you would allow. Rest assured that the information we will get will be kept confidential.

For inquiries and confirmation, please contact Doreen Faith Escobañez at 09061059711 (TM) or Beverly Joy Caragayan at 09466891182 (Smart). You can also email us at doreenescobanez@yahoo.com.ph.

Thank you for your cooperation.

Sincerely yours,

Doreen Faith T. Escobañez

BSBA Marketing III

NOTED:

Prof. Manuel P. Ocampo

Operations Management, Adviser