ENGG 406 ENGINEERING MANAGEMENT

CHAPTER 6 : COMMUNICATION
IN ORGANIZATION

Marvill Jun C. Villanueva

Lecturer I
1
 LEARNING OBJECTIVES
► Evaluate the basic communication skills
► Identify the barriers to communication.
► Recognize the importance of management
information system
► Demonstrate general communication skills to
manage complex engineering problems in a team
project environment.

2
 COMMUNICATION
Communication is the process of sharing information
through verbal and nonverbal means, including
words, messages, and body movements.

3
 COMMUNICATION
1. Is communication essential in
organization?
2. Will the organization train you to
communicate effectively?

4
 BASIC COMMUNICATION SKILLS

5
 REGULATING SKILLS
1. Opening a conversation / Setting goals
1. Formal or informal
2. Be clear with your intentions
3. Have a prepared agenda
2. Goal Evaluation
1. What is it that we want exactly to achieve?
3. Closing conversation
1. Keep an eye of the time
2. e.g. Maybe it is a good idea to look at…
6
 LISTENING SKILLS

Not only is it important to have a good

structure in a conversation, but it is also
important to let your conversational
partner know that he is being listened
to.
7
 LISTENING SKILLS

Not only is it important to have a good

structure in a conversation, but it is also
important to let your conversational
partner know that he is being listened
to.
8
 LISTENING SKILLS – NON VERBAL BEHAVIOR

Non verbal behavior

• Facial Expression
• Eye Contact
• Body Posture
• Encouraging Gestures
9
 LISTENING SKILLS – VERBAL FOLLOWING
• The comments you make should be in line with what the
speaker is saying and that you do not start any new
subjects.
• If you follow closely what the speaker is saying, the
speaker will be able to finish his train of thought.
• To understand the speaker fully, it is necessary to put
aside your own opinions and thoughts about the
subject.
• In order to do so, you should confine yourself to
‘minimal encouragers’.
10
LISTENING SKILLS – MINIMAL ENCOURAGERS
• Minimal encouragers are short verbal reactions
intended to stimulate the speaker to talk by
showing him that he is being listened to.

Examples are: hemming (uh-huh), yes…yes, and then?, go

on, or even the repetition of one of the words in a
questioning tone of voice.

11
 BARRIERS TO COMMUNICATION
• Personal Barriers. These are hindrances to
effective communication arising from the
communicator’s characteristics as a person,
including emotions, values, poor listening habits,
sex, age, race, socioeconomic status, religion,
education, and so on.

12
 BARRIERS TO COMMUNICATION
• Physical Barriers. These are interferences to
effective communication occurring in the
environment where the communication is
undertaken. The very loud sound produced by a
passing jet temporarily drowns out the voice of a
guest delivering a speech. Such distraction does not
allow full understanding of the meaning of the
entire message and is an example of a physical
barrier.
13
 BARRIERS TO COMMUNICATION
• Sematic Barriers. Semantics is the study of
meaning as expressed in symbols. Words,
pictures, or actions are symbols that suggest
certain meanings. When the wrong meaning
has been chosen by the receiver,
misunderstanding occurs. Such error
constitutes a barrier to communication.
14
 OVERCOMING BARRIERS TO COMMUNICATION
1. Use feedback to facilitate understanding and increase
the potential for appropriate action.
2. Repeat messages in order to provide assurance that they
are properly received.
3. Use multiple channels so that the accuracy of
information may be enhanced.
4. Use simplified language that is easily understandable and
which eliminates the possibility of people getting mixed-
up with meanings.
15
 TYPES OF COMMUNICATION

VERBAL WRITTEN NON VERBAL

• Body
Language
• Eye Contact
• Facial
Expressions
• Posture
• Touch
16
 MANAGEMENT INFORMATION SYSTEM (MIS)
Management
information system (MIS)
may be defined as an
organized means of
providing past present,
and projected
information on the
company’s internal
operations and external
intelligence for use in
17
decision making.
 PURPOSE OF MIS
1. To provide a basis for the analysis of early warning signals
that can originate both externally and internally.
2. To automate routine clerical operations like payroll and
inventory reports.
3. To assist mangers in making routine decisions like
scheduling orders, assigning orders to machine, and
reordering supplies.
4. To provide the information necessary for management to
make strategic or non- programmed decisions.
18
 KEY POINTS
1. Communicating is vital function of the manager. Organizations cannot function
properly without effective communication. If the required outputs must be realized,
communication must be managed.
2. Communication is used to serve the information function, motivation function, control
function and emotive function of an organization.
3. The communication process consists of various steps namely, develop an idea,
encode, transmit, receive, decode, accept, use and provide feedback.
4. The forms of communication are verbal and non-verbal.
5. The barriers to communication may be classified as personal, physical or semantic.
These may be eliminated or minimized by using feedback, repeating messages, using
multiple channels and using simplified language.
6. Management information systems are useful means of communication.
19
 CHARGE TO EXPERIENCE
When you become future managers, always remember that people will look up to you
for leadership. Their response to your instructions will be based on how you delivered
the message to them.

Some will only hear what they want to hear while others will listen to what they need to
know.

Learn to differentiate listening from merely hearing. Master the art of communicating
effectively.

Sometimes, silence is the best response but always know when to speak up.

Always be cautious of your actions. As managers, you will always be the center of
attention not because of your position, but because you hold the responsibility over your
subordinates.

Always choose to be kind and polite but firm and credible with your actions and
decisions.

20 Marvill Jun C. Villanueva

 ENGG 406 - ENGINEERING MANAGEMENT

CHAPTER 7 : MOTIVATING AND

LEADING PEOPLE AND
ORGANIZATION

Marvill Jun C. Villanueva

Lecturer I

21
 LEARNING OBJECTIVES
1. Examine styles of leadership.
2. Explain the leading activities.
3. Assess special topics on leading.
4. Criticize leadership styles to anticipate the
consequences in managing groups and teams.

22
 ???

What is LEADERSHIP?

23
 LEADERSHIP DEFINITION
• Leadership is an influence process that enable
managers to get their people to do willingly
what must be done, do well what ought to be
done.(Cribbin,
J.J. ‘Leadership: strategies for organizational
effectiveness’)
• Leadership is defined as the process of
influencing the activities of an organized
group toward goal achievement. (Rauch &
24 Behling.)
 LEADER BEHAVIORS
Task Oriented
• involve structuring the roles of
subordinates,
• providing them with instructions,
and behaving in ways that will
increase the performance of the
group.
• Task-oriented behaviors are
directives given to employees to
get things done and to ensure
that organizational goals are met.
25
People Oriented
• include showing concern for
employee feelings and treating
employees with respect.
• People-oriented leaders
genuinely care about the
well-being of their employees,
and they demonstrate their
concern in their actions and
decisions.
 LEADER DECISION MAKING
Authoritarian Democratic Laissez-faire

• leaders make the • employees • leave employees

decision alone participate in the alone to make
without making of the the decision.
necessarily decision • The leader
involving provides
employees in the minimum
decision-making guidance and
process. involvement in
the decision.

26
 ???

What type of leader

will you be?

27
 STYLES OF LEADERSHIP
1. The nice guy: Places too much value on social acceptance while
neglecting technical tasks.
2. The loser: Neither obtains acceptance from others nor gets the job
done.
3. The compromiser: Balances both the needs of people and task factors.
4. The task master: Is interested in getting the job done right without
concern for human feelings.
5. The ideal manager: Gets the job done and at the same time makes
everyone happy

28
 ???

What is the best

leadership style?

29
 Fiedler’s Contingency Theory
• The earliest and one of the most influential contingency theories was developed
by Frederick Fiedler.Fiedler, F. (1967). A theory of leadership effectiveness.
• According to the theory, a leader’s style is measured by a scale called Least
Preferred Coworker scale (LPC).
• According to Fiedler’s theory, different people can be effective in different
situations.
• If the leader has a good relationship with most people and has high position
power, and the task at hand is structured, the situation is very favorable.
• When the leader has low-quality relations with employees and has low position
power, and the task at hand it relatively unstructured, the situation is very
unfavorable.

30
 Situational Leadership
• Another contingency approach to leadership is Kenneth Blanchard and Paul
Hersey’s Situational Leadership Theory (SLT) which argues that leaders
must use different leadership styles depending on their followers’
development level employee readiness (defined as a combination of their
competence and commitment levels) is the key factor determining the
proper leadership style.
• The model argues that to be effective, leaders must use the right style of
behaviors at the right time in each employee’s development.
• Employees who are at the earliest stages of developing are seen as being
highly committed but with low competence for the tasks.
• As the employee becomes more competent, the leader should engage in
11 more coaching behaviors.
 Path-Goal Theory of Leadership
• Robert House’s path-goal theory of leadership is based on the expectancy
theory of motivation.
• The expectancy theory of motivation suggests that employees are
motivated when they believe—or expect— that
• their effort will lead to high performance,
• their high performance will be rewarded, and
• the rewards they will receive are valuable to them.
• leaders will create satisfied and high-performing employees by making sure
that employee effort leads to performance, and their performance is
rewarded by desired rewards.
• The leader removes roadblocks along the way and creates an environment
12 that subordinates find motivational.
 DEVELOPING LEADERSHIP SKILLS
Technical Skills Human Skills Conceptual Skills

• these are skills a • these skills refer to the • this skills refer to the
leader must possess ability of a leader to “ability to think in
to enable him to deal with people, both abstract terms, to see
understand and make inside and outside the how parts fit together
decisions about work organization. to form the whole.”
processes, activities, • Good leaders must • A leader without
and technology. know how to get along sufficient conceptual
• Technical skills is with people, motivate skills will fail to
specialized knowledge them and inspire achieve this.
needed to perform a them.
job.

33
 LEADING ACTIVITIES
SELECTING DEVELOPING
DECIDING COMMUNICATING MOTIVATING
PEOPLE PEOPLE
• Arriving at • Creating • Inspiring, • Choosing the right • Helping
conclusions and understanding and encouraging, or employees for employees
judgments with resolving conflicts impelling others to positions in the improve their
respect to priority, by talking, take required organization or for knowledge,
personnel, meeting, or writing action and specific team attitudes, and
resources, to others. creating activities skills.
policies, workplace
organizational conditions to
structures, and ensure work
strategic satisfaction.
directions.
• Decision-making
with incomplete
data is the norm,
not the exception.

34
 BASIC TECHNIQUES TO ENHANCE MOTIVATION
• Participation: Invite employees to take part in setting objectives and making decisions.
Doing so will ensure emotional ownership and the utilization of specialized knowledge.
Participative management is known to have a positive motivational impact on
employees.
• Communication: Set clear standards, relate the importance of the work, keep
expectations reasonable, and respond to suggestions offered by employees.
• Recognition: Give credit where it is due, as sincere praise tends to promote further
commitment. Fair appraisals induce employee loyalty and trust.
• Delegate authority: Trust the employees and do not over control them. Achievers will
seek additional responsibilities, and security seekers will not. Delegate what to do and
leave how to do it to the individuals. Delegate technically doable work only to those
who want it.
• Reciprocate interest: Show interest in the desired results to motivate employees to
15
achieve these results
 INNOVATIVE STRATEGIES IN MOTIVATING WORKERS
1. Present a variety of work assignments perceived to be desirable and that offer the
opportunity for personal growth.
2. Offer work that has a scope broad enough for the employee to develop self
expression and individual creativity.
3. Manage with minimum supervision and control, as professionals favor
independence and individuality. Professionals tend to prefer having the freedom to
make their own decisions and choose their own work methods for achieving the
stated objectives.
4. Provide work that fully utilizes the individual’s professional experience, skills, and
knowledge.
5. Assign work that enables the employee to receive credit and peers’ recognition.
Examples include teamwork, publication of technical articles, patents, company
36
awards, and activities in professional and technical societies.
 ADVICE FOR NEWLY PROMOTED LEADERS
New leaders often make a number of common mistakes.
These mistakes include:
• being isolated,
• having “the answer,” not strengthening the team,
• attempting too much,
• trusting the wrong people, and
• setting unrealistic expectations

37
 ADVICE FOR NEWLY PROMOTED LEADERS
In order for an engineering manager to become effective in a new
organization, Watkins (2003) offers specific advice consisting of seven rules,
namely:
• leverage time before entry
• organize to learn
• secure early wins
• lay a foundation for major improvements,
• create a personal vision
• build winning coalitions, and
• manage oneself.

38
 GUIDELINES FOR SUPERIOR LEADERSHIP
• Maintain absolute integrity: Any doubt about the
leader’s integrity will be reflected in the trust that
others place in the leader.
• Be knowledgeable: The leader should be technically
excellent at what it takes to get the job done.
• Declare expectations: The leader should let people
know which work to perform and what results are
expected.
39
 GUIDELINES FOR SUPERIOR LEADERSHIP
• Display unwavering commitment: The leader must demonstrate
his or her clear commitment.
• Get out in front: The leader needs to build, establish, and
maintain a strong positive image. The leader should get out of the
office to see what is going on (e.g., at the plant floor,
marketplace, customer service center, and technology
laboratories). The leader should also get out in front of the group
to be seen, so that others know their manager is committed
• Expect positive results: Show self-confidence and work to get
favorable results.
40
 GUIDELINES FOR SUPERIOR LEADERSHIP
• Take care of people: This is the basic reciprocity doctrine
of Confucius: “If you take care of people, people will take
care of you.” Starbucks is said to practice this doctrine by
taking care of their employees first (e.g., financially
supporting their college education), then customers, and
finally shareholders.
• Put duty before self-interests: The mission and the
employees must be more important than one’s own
self-interests.
41
 CHARGE TO EXPERIENCE
“Before you motivate and lead people, you
should be able to motivate and lead yourself.
Believe in what you want to achieve and it will be
reflected in your outputs. The kind of followers
you have is reflective of what type of a leader
you are.”

Marvill Jun C. Villanueva

42
 ENGG 406 ENGINEERING MANAGEMENT

CHAPTER 8 : THE ESSENTIALS

OF CONTROL

Marvill Jun C. Villanueva

Lecturer I

4
3
 LEARNING OBJECTIVES

► Explain the steps in the control process.

► Describe the different levels and types of
control.
► Evaluate organizational control in handling

4
4
 ORGANIZATIONAL
CONTROL
Controlling refers to the “process of
ascertaining whether organizational
objectives have been achieved; if not,
why not; and determining what
activities should then be taken to
achieve objectives better in the future.”
4
5
 STEPS IN CONTROL
PROCESS

Compare
Measure Take
Establish performance
actual corrective
Standards with
performance action
standards

4
6
 STEPS IN CONTROL
PROCESS
Step 1 : Establishing standards of performance
Standards should be measurable, verifiable, and tangible to the
extent possible.
Examples are:
• standard rate of production established by work
measurement;
• budgeted cost of computer usage;

• targeted value for product reliability; or

• desired room temperature.

4
7
 STEPS IN CONTROL
Step 2: PROCESSof the actual level
Measurement of performance
achieved.
Step 3 : Comparison of the two, measurement of the
variance (deviation between them), and communicating this
deviation promptly to the entity responsible for control of
this performance, so that they might identify what changed
to cause the deviation to occur and identify potential
corrective actions.
Step 4: Taking corrective action as required to “compel
6
events to conform to plans.”
 TYPES AND LEVELS OF
CONTROL
Strategic control Operational Control
•involves monitoring • involves control over
a strategy as it is intermediate-term
being implemented, operations and
evaluating processes but not
deviations, and business strategies.
making necessary • When performance
adjustments does not meet
•may involve the standards,
reassessment of a managers enforce
strategy due to an corrective actions,
immediate, which may include
unforeseen event. training, discipline,
•e.g. obsolete motivation, or
product termination.
49
Tactical Control Top-Down Control
Objective and
Normative Control
•A tactic is a method • also known as • Objective control is
that meets a specific bureaucratic based on facts that
objective of an controls can be measured
overall plan. • the use of rules, and tested
•Tactical control regulations, and • Smile and greet
emphasizes the formal authority to anyone within 10
current operations of guide performance feet.
an organization. • senior executives • Normative controls
•Managers determine make decisions and govern behavior
what the various establish policies through accepted
parts of the and procedures that patterns of action
organization must implement the rather than written
do for the decisions. policies and
organization to be • Lower-level procedures.
successful in the managers may • Normative control
near future (one make uses values and
year or less). recommendations beliefs called norms,
for their which are
departments, but established
they follow the lead standards.
of senior managers.
 STRATEGIC CONTROL SYSTEM

“It is the process by which managers monitor

the ongoing activities of an organization and
its members to evaluate whether activities
are being performed efficiently and
effectively and to take corrective action to
improve performance if they are not”
50
 STRATEGIC CONTROL
SYSTEM
Premise Control:
• Premise control is necessary to identify the key assumptions, and
keep track of any change in them so as to assess their impact on
strategy and its implementation.
• Premise control serves the purpose of continually testing the
assumptions to find out whether they are still valid or not.
• This enables the strategists to take corrective action at the right time
rather than continuing with a strategy which is based on erroneous
assumptions.
• The responsibility for premise control can be assigned to the
corporate planning staff who can identify key assumptions and keep
a regular check on their validity.
51
 STRATEGIC CONTROL
SYSTEM
Implementation Control:
• Implementation control may be put into practice through the
identification and monitoring of strategic thrusts such as an
assessment of the marketing success of a new product after pre-
testing, or checking the feasibility of a diversification programme
after making initial attempts at seeking technological
collaboration.

52
 STRATEGIC CONTROL
SYSTEM
Strategic Surveillance:

• Strategic surveillance can be done through a broad based,

general monitoring on the basis of selected information
sources to uncover events that are likely to affect the
strategy of an organization.

53
 STRATEGIC CONTROL
SYSTEM
Special Alert Control:
• Special alert control is based on trigger mechanism for rapid
response and immediate reassessment of strategy in the light of
sudden and unexpected events called crises.
• Crises are critical situations that occur unexpectedly and threaten
the course of a strategy.
• Organizations that hope for the best and prepare for the worst
are in a vantage position to handle any crisis.

54
 CHARGE TO
“Your EXPERIENCE
ability to control will not determine how
powerful you are as a manager. It is based on the kind
of control you are imposing in your leadership.

People may follow you because they fear you or just

because it is the right thing to do.”

Marvill Jun C. Villanueva

55
 ENGG 406 ENGINEERING MANAGEMENT

CHAPTER 9 : MANAGING
TECHNOLOGY

Marvill Jun C. Villanueva

Lecturer I

56
 LEARNING OBJECTIVES
1. Understand the role of research and development; and
engineering design process in the product development.
2. Identify technology and innovation management issues
3. Describe the significance of research and engineering
design factors in managing global challenges.

57
 NATURE OF RESEARCH & DEVELOPMENT
• Research and development are commonly taken
together under the general term “R&D.”
• To distinguish between them, the National Science
Foundation defined the following terminologies:
• Research, both basic and applied, is systematic,
intensive study directed toward fuller scientific
knowledge of the subject studied.

58
 NATURE OF RESEARCH & DEVELOPMENT
• Basic research is a research devoted to achieving a fuller knowledge or
understanding, rather than a practical application, of the subject under
study, although when funded by commercial firms, it may be in fields of
present or potential interest to the company.
• Applied research is directed toward the practical application of knowledge,
which for industry means the discovery of new scientific knowledge that
has specific commercial objectives with respect to either products or
processes.
• Development is the systematic use of scientific knowledge directed toward
the production of useful materials, devices, systems, or methods, including
design and development of prototypes and processes.
59
 RESEARCH STRATEGY AND ORGANIZATION
• Design systems and processes that can identify, assess, and
develop technology based opportunities (or protect from new
technology threats). The systems and processes should be able
to sense what is coming.
• Identify communication needs and efficiently turn data into
information so that the right information can be available to
make the best decision in a timely fashion. The current interest
in big data and what it can tell firms is tied to the notion that
we have a lot of bytes of data available because of computer
technology that is not being used effectively or efficiently.
60
 RESEARCH STRATEGY AND ORGANIZATION
• Develop employees through training and learning opportunities.
This becomes more critical as the competitive environment for
the organization becomes more dynamic. The management of
technology and innovation requires that all levels of the
organization are involved and that efforts are made to ensure that
employees are allowed to enhance their skills for themselves and
the organization. The more dynamic the environment, the more
important skill enhancement is for the firm and the individual.
• Use good change management processes to help the firm succeed
in introducing newness into the organization.
61
 NEW PRODUCT STRATEGIES
Application
First to Market Follow the leader Me too
Engineering
• This demands • This strategy does • In its purest form • This role involves
major expenditures not require a this strategy means taking an
for research before massive research copying designs established product
there is any effort, but it from others, buying and producing it in
guarantee of a demands strong or leasing the forms particularly
successful product. development necessary well suited to
engineering technology, and customers’ needs.
then concentrating • It requires no
on being the research and little
absolute development, but a
minimum-cost good deal of
producer understanding of
customers’ needs
and flexibility in
production.

62
 GLOBALIZATION CHALLENGE
• Globalization as defined is a process of interaction and
integration among the people, companies, and governments of
different nations, a process driven by international trade and
investment and aided by information technology.
• This process has effects on the environment, on culture, on
political systems, on economic development and prosperity,
and on human physical well-being in societies around the
world.
• Globalization broadly refers to the expansion of global linkages,
the organization of social life on a global scale, and the growth
63
of a global consciousness.
 Future Considerations in Engineering
• and Management
Continuing computer-based information revolution
• Increasing technological sophistication of society
• International and political considerations in a
shrinking, interdependent world
• Demographic considerations
• Interactions of food, energy, materials, and the
environment
64
 Challenges of
• Industry 4.0 hasINDUSTRY
been defined as4.0
a term for the modern trend
of automation and data exchange in manufacturing
technologies, together with cyber-physical systems, the
Internet of things, cloud computing and cognitive computing
and forming the smart factory.
• characterizes a new stage in the organization and control of
the business value chain, hence, makes it easier for different
industries to automate routine tasks and disrupt the balance
between job tasks completed by humans and those
completed by machines and algorithms.

65
 Challenges of
New business models — the definition of a new strategy
•
INDUSTRY 4.0
• Rethinking your organization and processes to maximize new
outcomes
• Understanding your business case
• Conducting successful pilots
• Helping your organization to understand where action is needed
• Change management, something that is too often overlooked
• Examination of company culture
• The genuine interconnection of all departments
11 • Recruiting and developing new talent
 ENGG 406 – ENGINEERING MANAGEMENT

CHAPTER 10 : MANAGING
PRODUCTION

Marvill Jun C. Villanueva

Lecturer I

67
 LEARNING
1.
OBJECTIVES
Define operations and operations
management.
2. Illustrate an example of manufacturing process
of a business organization.
3. Understand some of the quality tools.

68
 OPERATIONS

• Operations refer to “any process that

accepts inputs and uses resources to
change inputs in useful ways.”
• It is also an activity that needs to be
managed by competent persons.

69
 OPERATIONS
• MANAGEMENT
“the process of planning, organizing and controlling
operations to reach objectives efficiently and effectively”
• Efficiency is related to “the cost of doing something, or the
resource utilization involved.” When a person performs a
job at lesser cost than when another person performs the
same job, he is more efficient than the other person.
• Effectiveness refers to goal accomplishment. When one is
able to reach his objectives, say produce 20, 000 units in
one month, he is said to be effective.

70
 OPERATIONS AND THE
• TheMANAGER
manager is expected to produce some output at
whatever management level he is working.
• The operations manager must find ways to produce the
required quality of goods and services and the reduction
of costs in his department.
• The typical operations manager is one with several
years of experience in the operations division and
possesses an academic background in business or
industrial engineering.
71
 MANUFACTURING
PROCESS
Manufacturing processes are
those that refer to the
making of products by hand
or with machinery.
72
 MANUFACTURING
PROCESS
Job Shop
• A job shop is one whose production is “based on
sales orders for a variety of small lots”.
• Job shops are very useful components of the
entire production effort, since they manufacture
products in small lots that are needed by, but
cannot be produced economically by many
companies.
73
 MANUFACTURING
Batch FlowPROCESS
• The batch flow process is where lots of generally own designed products are
manufactured.
• It is further characterized by the following:
• There is flexibility to produce either low or high volumes.
• Not all procedures are performed on all products.
• The type of equipment used is mostly for general purpose.
• The process layout is used.
• The operation is labor intensive, although there is less machine idleness.
• The size of operation is generally medium-sized.

• Examples of companies using the large batch flow are wineries, scrap-metal
reduction plants and road-repair contractors.

74
 MANUFACTURING
Worker-PacedPROCESS
Assembly Line
• An assembly line refers to a production layout arranged in a sequence to
accommodate processing of large volumes of standardized products or services.
• The quality and quantity of output in a worker-paced assembly line depends to a
great extent to the skill of the labor utilized.
• Examples of worker-paced assembly lines are food marts like McDonalds and Shakey’s.
• The worker-paced assembly line is characterized by the following:
• The products manufactured are mostly standardized.
• There is a clear process pattern.
• Specialized equipment is used.
• The size of operation is variable.
• The process is worker-paced.
• The type of layout used is the line flow.
• Labor is still a big cost item.
75
 MANUFACTURING
PROCESS
Machine-Paced Assembly Line
• This type of production process produces mostly standard
products with machines playing a significant role.
• Among its other features are as follows:
• The process is of clear, rigid pattern.
• Specialized type of equipment is used.
• The line flow layout is used.
• Capital equipment is a bigger cost item than labor.
• Operation is large.
• The process is machine-paced
76
 MANUFACTURING
ContinuousPROCESS
Flow
• The continuous flow processing is characterized by “the rapid rate at which
items move through the system.”
• This processing method is very appropriate for producing highly standardized
products like calculators, automobiles, televisions, cellular phones, etc.
• Its characteristics are as follows:
• There is economy of scale in production, resulting to low per unit cost of production.
• The process is clear and very rigid.
• Specialized equipment is used.
• The line flow layout is used.
• Operations are highly capital intensive.
• The size of operation is very large.
• Processing is fast.
77
 MANUFACTURING
PROCESS
Batch/Continuous Flow Hybrid
• This method of processing is a combination of the batch and
the continuous flow.
• Two distinct layouts are used, one for batch and one for
continuous flow.
• The typical size of operation is also very large giving
opportunities for economies of scale.
• Examples of companies using the batch/continuous flow hybrid are
breweries and tobacco manufacturers.

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 QUALITY
• Quality hasASSURANCE
been described as fitness for use or
customer satisfaction.
• It may be divided into two categories.
• Quality of design measures the extent to which
customer satisfaction is incorporated into the
product design through the specification of proper
materials, tolerances, and other precautions.
• Quality of conformance (or quality of production)
measures how well the quality specified in the
design is realized in manufacture and delivered to
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the customer
 COSTS OF
Prevention Cost

• incurred in advance
QUALITY
Appraisal Cost

• include the costs of

Internal Failure Cost

• are those that would

External Failure Cost

• External failure costs

of manufacture to inspection of not appear if there are those caused by
prevent failures, such incoming parts and were no defects in defects found after
as quality planning, materials (whether by the product before the customer
training, data analysis the supplier or when shipment to the receives the product.
and reporting, receive the parts), customer. • These include the
process control, and inspection and test of • They include scrap costs of investigating
motivation programs. the product in (labor and material and adjusting
process and as a spent on unrepairable complaints, the costs
finished product, and items), rework (the of replacing defective
maintenance of test cost of making product returned by
equipment. defective items fit for the customer, price
use, including reductions
necessary retesting), (“allowances”) offered
downtime and yield to compensate for
losses caused by substandard
defects, and the cost products, and
of material review warranty charges
and disposition of
defectives.
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 COST OF QUALITY
(COQ)
COQ = Appraisal Cost + Prevention Cost + Internal
Failure Cost + External Failure Cost

COQ = CoGQ + CoPQ

Where : CoGQ = Prevention Cost + Appraisal Cost
CoPQ = Internal Failure + External Failure Cost

CoGQ = Cost of Good Quality

CoPQ = Cost of Poor Quality
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 PRODUCTIVI
• Productivity is a measure
performs its activities.
TY
of the efficiency with which an organization

• Efficiency is achieved by using the fewest inputs to generate a given

output.
• The effectiveness of these operations is achieved when the organization
pursues the appropriate goals.
• A simple measure in productivity might be units of production per labor
hour, or per-labor dollar:
Productivity = Output/Input

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MAINTENANCE AND FACILITIES (PLANT) ENGINEERING
The Maintenance Engineering Handbook identifies
the following primary functions of the maintenance
(engineering) activity:
1. Maintenance of existing plant equipment
2. Maintenance of existing plant buildings and grounds
3. Equipment inspection and lubrication
4. Utilities generation and distribution
5. Alterations to existing equipment and buildings
6. New installations of equipment and buildings
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 TYPES OF MAINTENANCE
CORRECTIVE PREVENTIVE PREDICTIVE

• simply repair work, • Scheduled • a preventive type of

made necessary downtimes maintenance that
when something involves the use of
breaks down or is sensitive
found to be out of instruments (e.g.,
order vibration analyzers,
amplitude meters,
audio gages, optical
tooling, and
pressure,
temperature, and
resistance gages) to
predict trouble.
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 TOTAL PREVENTIVE MAINTENANCE (TPM)
• Total productive maintenance (TPM), a concept originated by the
Japanese, is an integrated, top-down, system-oriented, life cycle approach to
maintenance, with the objective of maximizing productivity.
• Directed primarily to the commercial manufacturing environment, TPM does the
following:
1. Promotes the overall effectiveness and efficiency of equipment in the factory
2. Establishes a complete preventive maintenance program for factory equipment based on
life cycle criteria
3. Is implemented on a “team” basis involving various departments to include engineering,
production operations, and maintenance
4. Involves every employee in the company, from the top management to the workers on
the shop floor. Even equipment operators are responsible for maintenance of the
equipment they operate.
5. Is based on the promotion of preventive maintenance through “motivational
management” (the establishment of autonomous small-group activities for the
maintenance and support of equipment)
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 Other Facilities and Plant Engineering Functions
1. Plant security (guards, fences, locks, theft control,
emergency planning)
2. Fire protection (fuel and chemical storage, fire detection
and extinguishment, loss prevention, and risk
management)
3. Insurance administration
4. Salvage and waste disposal
5. Pollution and noise abatement
6. Property accounting
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 Other Manufacturing
1.
Functions
Human Resources (Personnel) Management
Recruiting and employment (human resource
2.
planning, recruiting, interviewing, testing,
transfers, and layoffs)
3.
Equal employment opportunity
4.
(affirmative action, minority records and
5. reports, complaint investigation)
6. Industrial relations (contract negotiations,
7. contract administration, grievances, and
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arbitration)
 Other Manufacturing
Functions
Purchasing and Materials Management
1. Recognition of need
2. Description of requirement
3. Selection of possible sources of supply
4. Determination of price and availability
5. Placement of the order
6. Follow-up and expediting of the order
7. Verification of the invoice
8. Processing of discrepancies and rejections
9. Closing of completed orders
10. Maintenance of records and files
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