Thesis Archive
A system study on the bus operations of RCJ Lines (2010)
Corpus
Cruz
Lee
Abstract:
-RCJ Lines is an incorporation headed by Mr. Rolando Abadilla Jr. Started in 1990, the main office is located in Libis and their main terminals are located in Espana, Laoag, and Junction Luna. Currently they have 24 buses with routes from Manila and ends in Cagayan via Ilocos and vice-versa. RCJ Lines currently has 20% market share in the Ilocos Region however; the financial number of the company is not favourably well due to high fixed assets.
The bus industry in Philippines is not as developed as compared to surrounding countries like Hong Kong, Taiwan, and Singapore. Rules and regulations in the Philippines are not well policed and there are still evident violators especially of the clean air act.
The primary objective of the company is to serve the public with utmost quality and safety by keeping all their buses in good condition and continuing to have zero customer casualties. Data gathering was done in different parts of the system namely maintenance department, motor pool, bus fleet, and administrative. After documenting and discussing the present system, the strengths, weaknesses, opportunities and threats (SWOT) were identified, the main problem was likewise determined through situation appraisal. In the period of September 2009 to August 2010, five thousand five hundred forty three (5,545) passengers or 4.41% of RCJ Lines customers were not accommodated during the peak period resulting to corporate losses amounting to PhP1,386,000. This circumstance was primarily due to the shortage of drivers during peak season.
The group came up with four mutually exclusive solutions for the problem; a standardized driver/conductor hiring process, bus allocation heuristic through forecasting demand, and standardized bus monitoring inspection. The proposed solutions were intended to help reduce the unfulfilled demand of the company. A simulation of the forecasted demand was made using Microsoft Excel, to establish if the unfulfilled demand was reduced. Subsequently, the performance from the proposed bus allocation was compared to the current bus allocation of the company. With the number of trips reduced from 2,386 to 1,747, there has been a huge gas savings of PhP8,946,000. Similarly, the capacity utilization increased from 44% to 90% hence a remarkable surge in sales of PhP2,202,746.99. This arrangement would allow an increase in drivers’ salary by PhP440,546.99. The proposed solution is intended to be implemented in 8 weeks or 56 days’ time.
Adviser:
Ms. Bella Manalang