MERALCO CORPORATE WELLNESS CENTER

OPERATIONS RESEARCH PAPER

COLLEGE OF ARTS AND SCIENCES
SAN BEDA COLLEGE MENDIOLA, MANILA
Submitted to: Engr. Raymond Gerard G. De Leon
Submitted by: Angelica Bernardo & Jasper Sanchez
Octobe !", #"!$
I% Com&'(y Po)i*e
The Manila Electric ompany! or Meralco! is the "hilippines# largest distri$%tor o&
electrical po'er. The company holds the po'er distri$%tion &ranchise &or some (( cities and )*
m%nicipalities! incl%ding the capital city o& Manila! as 'ell as &or the cities o& San J%an! Las
"i+as! ,%ezon! Mala$on! Ma-ati! aloocan! "asay! Mandal%yong! "arana.%e! and /a0otas.
Meralco#s (12year &ranchise &or these mar-ets! a'arded in (334! gi0es the company control o&
the energy distri$%tion ser0ices &or an area o& more than *.4 tho%sand s.%are -ilometers and a
pop%lation o& more than 5*.6 million22one2&o%rth o& the "hilippines# total pop%lation. The
company $oasts a co0erage rate o& more than *6 percent! the highest in the co%ntry. Each year!
Meralco sells more than (4 million mega'att2ho%rs 7M89:! 'ith residential and commercial
sales each contri$%ting ro%ghly 41 percent! and ind%strial sales adding 43 percent. ;ormerly a
po'er prod%cer! Meralco p%rchases its po'er re.%irements primarily &rom go0ernment2o'ned
/ational "o'er orporation< since the $eginning o& the (333s! ho'e0er! the company has
$eg%n to p%rchase electricity &rom a n%m$er o& ne'ly esta$lished independent po'er
prod%cers! helping to lo'er its prices. Meralco also has started to di0ersi&y its operations in
response to the dereg%lation o& the "hilippines po'er ind%stry $y e=tending into po'er
generation! ind%strial constr%ction and engineering! and other areas! incl%ding real estate
de0elopment! e2commerce! and cons%ltancy ser0ices. Meralco is led $y hairman and E>
Man%el M. Lopez! 'hose &amily! thro%gh direct and indirect holdings! retains control o& some (1
percent o& the company. The Lopez &amily! one o& the co%ntry#s most prominent! also controls
conglomerate Benpres 9oldings and other $%sinesses.
Meralco marches on to its 53)th year o& ser0ice in (355. onsistently in the list o& the
"hilippines? top &i0e corporations and cited among Asia?s &inest! Meralco today ser0es o0er @.)
million residential! commercial and ind%strial c%stomers. At is strategically located to ser0e the
co%ntry?s center o& commerce and ind%stry and its h%$ o& go0ernment ser0ices and
in&rastr%ct%res. At ser0ices a$o%t 43 man%&act%ring economic zones! 'hich also compete in the
glo$al mar-et. Li-e'ise! the ompany caters to pro0iders o& o%tso%rced $%siness processes!
$oth domestic and international.

Retrie0e &romB 7httpBCC'''.re&erence&or$%siness.comChistory(CD4CManila2Electric2ompany2
Meralco.html:
7httpBCC'''.meralco.com.phCc%stomerCpage2c%sA$o%t2corp"ro&ile.html)
II% Pob*em o) t+e De&'tme(t
The researchers had chosen Meralco?s orporate 8ellness enter to 'hich they 'ill
apply some topics o& >perations Research. The orporate 8ellness enter stands inside the
compo%nd o& Meralco at the $%siness district o& >rtigas! "asig ity. At is %nder the 9%man
Reso%rce Department >peration! 'hich is $asically in charge o& the medical $ene&it o& acti0e
and retired Meralco employees as 'ell as their other s%$sidiaries. The orporate 8ellness
enter is composed o& Dental! "harmacy! Emergency room! La$oratory! >perating room!
Dietary section. The Department o& 9ealth had &%lly accredited the Meralco?s orporate
8ellness enter.
The "ro$lem that the orporate 8ellness enter had mostly enco%ntered in their
ser0ice process is the long transaction time per patient &rom registration time to releasing o&
medicines.
The p%rpose o& this research is to apply operations research topics in &orm%lating
alternati0e sol%tions in impro0ing the long transaction process.
III% O&e'tio(, Re,e'c+ A&&*ic'tio(
The researchers 'ill $e applying some >perations Research topics to pro0ide sol%tions
to the pro$lem that occ%r in the company that the researchers had chosen. These topics are
"ERT "M and ;orecasting 7Mo0ing a0erage:.
Ta$le $elo' sho's the acti0ities in0ol0ing on the ser0ices o& Meralco orporate
8ellness enter as 'ell as the standard time and act%al time per acti0ities.
Fi-ue !
Acti.itie, St'(d'd time /mi(ute,0 Actu'* time /mi(ute,0
Re-i,t'tio( 1 !
W'iti(- )o ('me to be c'**ed !" #"
Co(,u*t'tio( 1 !#
Di,&e(,i(- o) Medici(e, 1 2
Tot'* #1 3!
;ig%re ( sho's the comp%tations made $y the researchers that determines the estimated time
d%ration as 'ell as the proposed acti0ities $y the researchers 'ith their respecti0e completion
timeand crash d%ration to decrease the transaction time o& the patients.
E=pected time E 7aF@mF$:CD
Acti0ity AB Bet'een 5 to 4 min%tes 775F@7(:F4::CDE (
Acti0ity BB Bet'een 4 to 1 min%tes 774F@7@:F1::CDE @
Acti0ity B Bet'een D to ) min%tes 77DF@76:F)::CDE 6
Acti0ity DB Bet'een 1 to 51 min%tes 771F@753:F51::CDE 53
Acti0ity EB Bet'een 53 to (3 min%tes 7753F@751:F(3::CDE 51
Acti0ity ;B Bet'een @ to D min%tes 77@F@71:FD::CDE 1
Fi-ue #
Acti.ity Pedece,,o De,ci&tio( E,tim'ted Time
Du'tio(
C',+
du'tio(
C',+
Co,t
/mi(ute,0
A 4 Re-i,t'tio( /!14$"
ye', o*d0
# ! P 5,"""
B 4 Re-i,t'tio( /$!46"
ye', o*d0
3 # P 5"""
C A,B W'iti(- 'e' 7
D C Co(,u*t'tio( /!14$"
ye', o*d0
!"
E C Co(,u*t'tio( /$!46"
ye', o*d0
!1
F D,E Di,&e(,i(- o)
Medici(e,
1 $ P !","""

"athsB
A!!D!;E (1 min%tes
A!!E!;E 43 min%tes
B!!E!;E 45 min%tes 7ritical "ath:
B!!D!;E (D min%tes
rashingB
Acti0ity ; E " 53!333
A!!D!;E (4 min%tes
A!!E!;E () min%tes
B!!E!;E (* min%tes 7ritical "ath:
St'
t
A
$
B
3
C
7
E(d
D
!"
E
!1
F
1
B!!D!;E (@ min%tes
;ig%re 4 sho's the acti0ities 'ith their early start! late start! early &inish! and late &inish. As
sho'n in the ta$le there are some acti0ities that ha0e slac- time! this means that they can
e=tend the patients transaction time $%t it sho%ld not e=ceed the time in the critical path sho'n
a$o0e.
Fi-ue $
Acti.ity ES EF LS LF S*'c8
A " $ ! 3 !
B " 3 " 3 "
C 3 !! 3 !! "
D !! #! !6 #6 1
E !! #6 !! #6 "
F #6 $! #6 $! "
Foec',ti(- Met+od: Mo.i(- A.e'-e
;ig%re 1 data sho's the n%m$er o& patients arri0ed in the &irst three 74: days. This data
'ill $e %sed to &orecast n%m$er o& patients that 'ill arri0e in the ne=t se0en days %sing the 4
days mo0ing a0erage.
Fi-ue 1
D'y, No% o) P'tie(t,
D'y ! !6
D'y # !2
D'y $ !1
Belo' are the comp%tations o& &orecast.
Mo.i(- A.e'-e Fomu*'
/D'y! 9 D'y# 9D'y$0:$
7 D'y, Foec',t
D'y !; /!69!29!10:$; !6
D'y #; /!29!19!60:$; !6
D'y $; /!19!69!60:$; !1
D'y 3; /!69!69!10:$; !1
D'y 1; /!69!19!10:$; !1
D'y 6; /!19!19!10:$; !1
D'y 7; /!19!19!10:$; !1
;ig%re D sho's the &orecasted n%m$er o& patient &or the ne=t se0en days.
Fi-ue 6
D'y, ! # $ 3 1 6 7
Foec',t
Dem'(d
!6 !6 !1 !1 !1 !1 !1
I<% Co(c*u,io(
Meralco orporate 8ellness enter re.%ires coordination o& m%ltiple reso%rces! s%ch as
physicians! medications! and diagnostic e.%ipment. Delays can $e red%ced thro%gh care&%l
&orecasting and crashing o& acti0ities.
;orecasting is a strategy %sed to predict the &%t%re $ased %pon the past. The
researchers %sed the mo0ing a0erage method as their &orecasting techni.%e to &oresee the
%pcoming n%m$er o& patients in Meralco orporate 8ellness enter on a daily $asis. Tho%gh
the %se o& &orecasting the orporate 'ellness center can esta$lish their standard operating
ho%rs per day that can decrease their operating cost speci&ically in the %tilities to $alance their
e=pense that 'ill inc%r thro%gh the %se o& crashing method.
The "ERT "M diagram sho's the estimated d%ration o& the acti0ities as 'ell as its
slac- time. The critical path is 0isi$le that pro0ides in&ormation regarding the ma=im%m time to
'hich the ser0ice can $e done< the acti0ity 'ill $e delayed i& it is completed more than the
d%ration o& the critical path 'hich is 45 min%tes.
Applying the method presented $y the researcher 'ill $e a$le to red%ce the transaction
time o& patient in the 'ellness center o& Meralco. The researchers also created a ne' pert cpm
model that sho's a di&&erent path o& patients that depends on their age. The method created $y
the researchers 'ill $ene&it $oth the company and the patients $eca%se on the company side
they 'ill $e recei0ing positi0e &eed$ac-s regarding their &ast ser0ice! on the patient side they 'ill
$e rendered ser0ice immediately especially 'hen they ha0e serio%s illnesses that needs to $e
addressed! $eca%se 'hen the acti0ity is crashed the completion time o& the patient?s transaction
'ill $e red%ced to (* min%tes! 'hich is clearly &aster than the pre0io%s system.