Case: Greenheights Stadium

Operations Management

MBA

FEU Manila

Submitted By:

Reacting Group

Belda, Christinne

De Jesus, Louie

Gales, Georgette Ann Marie

Torres, Celine

I. Case Background
 As the Philippines make the arrangements for the 2021 South East Asian Games (SEA
Games), the Philippine Government built up a thorough development plan in Central Luzon
means to grandstand the quality and intensity of the Philippines through the opening of a
progression of recently developed foundation.

One of the featured settings is the Greenheights Stadium to be developed in the core of
Subic, Zambales. Tarcila and Co. was granted the agreement with a punishment proviso of
Php100,000 every day of postponement past May 20, 2021.

Tarcila and Co. President Tarcille Joe communicated her hopefulness that they can
complete the task prior to the contracted cutoff time and produce a benefit of as much as Php 20
Million.

II. Statement of the Problem

The researchers will examine the possible strategies that the Tarcila & Co. will undertake
to adhere to all the conditions stipulated in the awarded contract.

III. Assumptions

● The stipulations stated in the awarded contract for Greenheights Stadium are those that
usually form part of the contracts as stated in Republic Act 9184.
● For this specific project, the Company hired a Project Manager that has years of
experience in dealing with construction projects granted by the government.
● The government will give the Company a priority stamp on future dealings that involves
building classic ballparks with modern luxury boxes.
● The Company currently has only 500 construction workers including supervisors.
● The Company has been in existence for 4 decades and has already completed both private
and government contracts.

IV.Areas for Consideration

a. Human Resource
 Based on previous project experiences, employment of additional 500-700 full
time construction workers will be needed to beat the deadline and avoid the penalty
clause.
Each supervisor handles 80-100 workers to ensure that no idle worker will be
given compensation.

b. Operations

Having suppliers that will meet the budget of the Company and will have ready
inventory to ensure that materials needed are ready for delivery to meet the required date
of project completion.

A sophisticated inventory management system shall be administered to ensure

proper handling and monitoring of inventory levels and procurement as needed in the
Project and minimize the possibility of inventory oversupply.
c. Finance
Availability of discounts for bulk orders and rebates for faster payment from the
suppliers that minimize the cost being incurred by the Company.
The Company may also consider checking financing options being offered by
banks and other financial institutions.
Successful completion of the Greenheights Stadium Project will generate a
possible Php 20 million income for the Company and open doors of possibilities for other
government awarded projects.

d. Marketing

The Marketing Department of the Company is actively looking for contract

biddings by building relationships with contact persons from concerned government
agencies like the Bases and Conversion Development Authority, Local Government
Units and The National Economic Development Authority.

e. IT/R&D
Online monitoring of inventories is a needed tool to properly account for all
materials coming in and going out that will be used for the project including but not
 limited to: concrete bowls, luxury boxes, jumbotron and steel canopy. Roof and roof
tracks shall have a separate inventory monitoring as the above-stated materials require a
more intrinsic monitoring.

V. Framework (e.g. SWOT, Porter”s etc)

Strength Weaknesses

-Good Management Leadership -Possibility for delay of work can cause

-Has a good relationship with their suppliers penalty clause of Php 100,000 per day
- -high dependency on suppliers

Opportunities Threats

-International Sports Events etc... -Regulatory Issuance

-Technological developments -High Competition
-

Discussion of Questions
1. Construct a network schedule for the stadium project
2. Will the project be able to be completed by the May 20 deadline? How long will it take?
3. What is the critical path for the project?
4. Based on the schedule would you recommend that Tarcila & Co. pursue this contract?
Why?
5. Include a Gantt chart for the stadium schedule.
 Greenheights Stadium Network Schedule

Answer to Question 1:

Answer to Question 2:

The project will be fully completed before the May 20, 2021 deadline. In fact, it will just
need less than two years of construction. To be exact, the project will take only 695 days. Below
is the detailed project completion of the project:

Answer to Question 3:

The critical path for the project is Path 2, 5, 6, 9, 10, 14, 15, and 20. The said critical path is
shown in previously presented AON having dashed arrows. It means that this path should not be
delayed.
Answer to Question 4:
Yes, because the contract will be finished before the May 20, 2021 deadline.
Answer to Question 5: Gantt Chart

VI. Alternative Courses of Action (at least 4)

Proceed to building the new 47,000 seat Baseball Stadium

Advantages: Tarcila & Co can utilize their exemplary management skills and big-ticket
events expertise and ride the resurgence of baseball.

Disadvantages: It is a costly endeavor and will require big capital and labor from the
organization. It is also risky if baseball’s resurgence will continue and if the audience will
continue to watch games live, there is a possibility in the future that the audience may
transfer to watch online.

Build the stadium with lesser seating capacity but with more high-tech cameras
designed specifically for online viewing.

Advantages: Tarcila & Co. can also utilize its expertise in project management and continue
to build a physical stadium but with the advent of online events; the stadium can be among
 the first venue to have a distinct advantage with online shows. This will also enable the
venue to cater to international events easily.

Disadvantages: It may prove costly to equip the stadium with features designed for online
shows and it is a gamble as this is one of the first venues of this type.

Build a stadium for a different kind of sport

Advantages – the firm can check on other sports that fetch a bigger following than baseball
and decide to build a stadium for it instead. This project will not hinge on the resurgence of
baseball but on the current popularity of another sport like basketball or football.

Disadvantages – Currently, there is no feasibility study proving a bigger following of a

different sport and the duration of the project needs to be studied again.

VII. Action Plans

Activity Responsible Person/s, or Timeline

Department/s, Team/s, etc

On time Delivery of Operations, Suppliers and Until May 20, 2021

Raw Materials, Finance
Equipments and
Machines

Consistency of Workers HR, Operations, Finance Until May 20, 2021

Promotion Marketing, FInance, As the stadium

 Operation already built

High Technology R&D. Finance Until May 20, 2021

VIII. Recommendation

The researcher therefore recommends that the project should continue due to the results
of the Greenheights Stadium Network Schedule that shows the end of time of the construction
of the stadium, As there will be no delays on the specified nodes in the network schedule. The
workers should follow the schedule and there must be no delay on deliveries of raw materials
by the supplier to the stadium.

IX. Conclusion

We conclude that Tarcila & Co. should proceed with the project because based on the
Activity on Node, the firm should finish the project on time and net a Php 20M without penalty
as it will be finished before May 20, 2021 deadline.