A systems study on the landline service of the Subic exchange of Pilipino telephone corporation

• Main Author: Biscocho, Maricel G.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/1636
• Institution: De La Salle University

Pilipino Telephone Corporation was incorporated on July 18, 1968. It was established by Mr. Domingo de Asis with the primary purpose of establishing telephone business, install, maintain, lease, and operate telephone systems in different cities and municipalities in the Philippines. At present, PILTEL has eight telephone exchanges nationwide. One of it is the Subic Telephone Exchange, which at present encounters a problem on installation delay. The study area, which is the Operations and Maintenance Department of Subic Exchange, experienced an average of 13.99% delay in the installation of telephone lines which resulted to an average loss of Php 565,952.36 in 1997. Various causes were identified that contributed to this problem. The two main causes were the breakdown of service vehicle and non-availability of installation materials. The first cause is mainly due to the age of the vehicle which is 7 years and inconsistent maintenance of the vehicle. Moreover, the exchange does not keep any safety stock and this is the reason why the second cause occurred. A proposed system was developed for the Operations and Maintenance Department. Two solutions were generated to solve the problem. Firstly, it is proposed for them to maintain the service vehicle monthly. Secondly, the group proposed to adopt a new inventory management policy by using the Lot Size, Reorder Point Model . This new policy would make their ordering of installation materials systematic. This would ensure that the exchange would not experience any stock-out, thus, the problem on installation delay would be eliminated. The proposed system was justified further through the analysis of the costs that would be incurred by the company and the benefits that it would gain upon its implementation. By carefully implementing the said proposals, the company is expected to achieve an annual savings of PhP87,722.99.