ENGR.

ANGEL BOOL

ENGINEERING
MANAGEMENT

ENGINEERING MANAGEMENT
MODULE 7-10
Module 7 – Motivating and Leading People and
Organizations

Introduction
Leading in engineering management refers to the function of an
engineering manager that causes people to take effective action. After
deciding what is worth doing, the engineering manager relies on
communication and motivation to get employees to act. By selecting
workers who are inclined to collaborate, the engineering manager
motivates them to steadily add value to the company. In addition, skills
training and attitude development may also enable employees to take
action.
In this chapter, five specific leading activities will be discussed,
namely, deciding, communicating, motivating, selecting, and developing.
In this chapter, specific methods for making decisions are also illustrated.
These include the rational method, decision-making by gut instinct, and
decision making in teams. Furthermore, a few special topics on
leadership are to be addressed, including (a) leading changes, (b) advice
for new leaders, and (c) guidelines for superior leadership.

Learning Objectives
• Examine styles of leadership.
• Explain the leading activities.
• Assess special topics on leading.
• Criticize leadership styles to anticipate the consequences in
managing groups and teams.

Leadership
♥ 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 &
Behling.)
♥ Leadership is discovering the company's destiny and having the
courage to follow it. (Joe Jaworski - Organizational Learning
Center at MIT.)
♥ Leadership is interpersonal influence, exercised in a situation, and
directed, through the communication process, toward the
attainment of a specified goal or goals. (Tannenbaum,Weschler
& Massarik)

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.
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
 involving
employees in the
• The leader
provides
decision-making
minimum
process.
guidance and
involvement in
the decision.

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.

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.
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 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
o their effort will lead to high performance,
o their high performance will be rewarded, and
o 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 that subordinates find motivational.
Developing Leadership Skills:

Technical Skills Human Skills Conceptual Skills

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

Leading Activities:
• Deciding:
o Arriving at conclusions and judgments with respect to
priority, personnel, resources, policies, organizational
structures, and strategic directions.
o Decision-making with incomplete data is the norm, not
the exception.
• Communicating:
o Creating understanding and resolving conflicts by talking,
meeting, or writing to others.
 • Motivating:
o Inspiring, encouraging, or impelling others to take
required action and creating workplace conditions to
ensure work satisfaction.
• Selecting People:
o Choosing the right employees for positions in the
organization or for specific team activities
• Developing People:
o Helping employees improve their knowledge, attitudes,
and skills.

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 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 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:
o being isolated,
o having “the answer,” not strengthening the team,
o attempting too much,
o trusting the wrong people, and
o setting unrealistic expectations
In order for an engineering manager to become effective in a new
organization, Watkins (2003) offers specific advice consisting of
seven rules, namely:
o leverage time before entry
o organize to learn
o secure early wins
o lay a foundation for major improvements,
o create a personal vision
o build winning coalitions, and
o manage oneself.
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.
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.
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

“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.”
Module 8 – The Essentials of Control

Introduction
Controlling is a critical function because it ensures that all the
management functions of leading, planning and organizing as well as the
mechanical processes of an organization, perform as planned.
Controlling includes establishing performance standards, which are
aligned to the company’s objectives and also involves evaluation and
reporting of actual job performance. A pivotal role of the manager is to
control the progress made towards achieving the plans set by senior
management. Monitoring the progress made entails identifying and
correcting variances from the planned progress. This chapter begins by
introducing the organizational control, the process of control and the
types and levels of control as well as the strategic control system.

Objectives:
• Explain the steps in the control process.
• Describe the different levels and types of control.
• Evaluate organizational control in handling

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.”

Steps in Control Process:

1. Establishing standards of performance
a. Standards should be measurable, verifiable, and tangible
to the extent possible.
b. Examples are:
i. Standard rate of production established
measurement;
 ii. budgeted cost of computer usage;
iii. targeted value for product reliability; or
iv. desired room temperature.
2. Measurement of the actual level of performance achieved.
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.
4. Taking corrective action as required to “compel events to
conform to plans.”

Types of Control:
• Strategic Control
o involves monitoring a strategy as it is being implemented,
evaluating deviations, and making necessary adjustments
o may involve the reassessment of a strategy due to an
immediate, unforeseen event.
o e.g. obsolete product
• Operational Control
o involves control over intermediate-term operations and
processes but not business strategies.
o When performance does not meet standards, managers
enforce corrective actions, which may include training,
discipline, motivation, or termination.
• Tactical Control
o A tactic is a method that meets a specific objective of an
overall plan.
o Tactical control emphasizes the current operations of an
organization.
o Managers determine what the various parts of the
organization must do for the organization to be successful
in the near future (one year or less).
Levels of Control:
• Top-Down Control
o also known as bureaucratic controls
o the use of rules, regulations, and formal authority to guide
performance
o senior executives make decisions and establish policies
and procedures that implement the decisions.
o Lower-level managers may make recommendations for
their departments, but they follow the lead of senior
managers.
• Objective and Normative Control
o Objective control is based on facts that can be measured
and tested
o Normative controls govern behavior through accepted
patterns of action rather than written policies and
procedures.
o Normative control uses values and beliefs called norms,
which are established standards.

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”
• Premise Control:
o 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.
o Premise control serves the purpose of continually testing
the assumptions to find out whether they are still valid or
not.
o This enables the strategists to take corrective action at the
right time rather than continuing with a strategy which is
based on erroneous assumptions.
 o 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.
• Implementation Control:
o 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 pretesting, or checking the feasibility of a
diversification programme after making initial attempts at
seeking technological collaboration.
• Strategic Surveillance:
o 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.
• Special Alert Control:
o 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.
o Crises are critical situations that occur unexpectedly and
threaten the course of a strategy.
o Organizations that hope for the best and prepare for the
worst are in a vantage position to handle any crisis.

Process of Strategic Control:

Strategic control processes ensure that the actions required to
achieve strategic goals are carried out, and checks to ensure that these
actions are having the required impact on the organization. An effective
strategic control process should by implication help an organization
ensure that is setting out to achieve the right things, and that the methods
being used to achieve these things are working.

1. Determine What to Control: The first step in the strategic

control process is determining the major areas to control.
 Managers usually base their major controls on the organizational
mission, goals and objectives developed during the planning
process. Managers must make choices because it is expensive and
virtually impossible to control every aspect of the organizations.

2. Set Control Standards: The second step in the strategic control

process is establishing standards. A control standard is a target
against which subsequent performance will be compared.
Standards are the criteria that enable managers to evaluate future,
current, or past actions. They are measured in a variety of ways,
including physical, quantitative, and qualitative terms. Five
aspects of the performance can be managed and controlled:
quantity, quality, time cost, and behavior.

3. Measure Performance: Once standards are determined, the next

step is measuring performance. The actual performance must be
compared to the standards. Many types of measurements taken
for control purposes are based on some form of historical standard.
These standards can be based on data derived from the PIMS
(profit impact of market strategy) program, published information
that is publicly available, ratings of product / service quality,
innovation rates, and relative market shares standings.

4. Compare Performance to Standards: The comparing step

determines the degree of variation between actual performance
and standard. If the first two phases have been done well, the third
phase of the controlling process – comparing performance with
standards – should be straightforward. However, sometimes it is
difficult to make the required comparisons (e.g., behavioral
standards). Some deviations from the standard may be justified
because of changes in environmental conditions, or other reasons.

5.
6. Determine the Reasons for the Deviations: The fifth step of the
strategic control process involves finding out: “why performance
 has deviated from the standards?” Causes of deviation can range
from selected achieve organizational objectives. Particularly, the
organization needs to ask if the deviations are due to internal
shortcomings or external changes beyond the control of the
organization. A general checklist such as following can be helpful:
a. Are the standards appropriate for the stated objective and
strategies?
b. Are the objectives and corresponding still appropriate in
light of the current environmental situation?
c. Are the strategies for achieving the objectives still
appropriate in light of the current environmental situation?
d. Are the firm’s organizational structure, systems (e.g.,
information), and resource support adequate for
successfully implementing the strategies and therefore
achieving the objectives?
e. Are the activities being executed appropriate for
achieving standard?
7. Take Corrective Action: The final step in the strategic control
process is determining the need for corrective action. Managers
can choose among three courses of action: (1) they can do nothing
(2) they can correct the actual performance (3) they can revise the
standard.

“Your 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. ”
Module 9 – Managing Technology

Introduction
Now that the basic management functions have been defined in the
previous chapters, this time the chapter will discuss how technology is
managed in the business organization. It includes the topic about
managing the research and development, engineering design,
globalization and management of challenges of innovation and dynamic
competition in the future. In order for a firm to develop a successful
management of technology, it is vital that the organization be readied for
the changing technology advancement. Thus, in this chapter the students
will learn a number of ways how organizations can develop and manage
technology as well as innovation in product development. Students will
explore the research strategies and engineering design process involved
in managing technology and challenges in competitive positions.

Objectives:
• Understand the role of research and development; and
engineering design process in the product development.
• Identify technology and innovation management issues.
• Describe the significance of research and engineering design
factors in managing global challenges.

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:
o Research, both basic and applied, is systematic, intensive
study directed toward fuller scientific knowledge of the
subject studied.
➢ Basic research is 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.

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.
➢ 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.
New Product Strategies:
▪ First to Market:
o This demands major expenditures for research before
there is any guarantee of a successful product.
▪ Follow the leader
o This strategy does not require a massive research effort,
but it demands strong development engineering
▪ Me too
o In its purest form this strategy means copying designs
from others, buying or leasing the necessary technology,
and then concentrating on being the absolute
minimum cost producer
▪ Application Engineering
o This role involves taking an established product and
producing it in forms particularly well suited to customers’
needs.
o It requires no research and little development, but a good
deal of understanding of customers’ needs and flexibility
in production.

Engineering Design:
▪ Design is the activity that best describes the engineer. To design
is to create something that has never existed before, either as a
solution to a new problem or as a better solution to a problem
solved previously.
▪ According to J. B. Reswick, “design is the central purpose of
engineering”. It begins with the recognition of a need and the
conception of an idea to meet that need. It proceeds with the
definition of the problem, continues with
▪ Engineering design is a process of transforming information, as
illustrated in the figure. Information provides the input to the
process: a statement of the problem to be solved, design standards,
design methods, and the methods of engineering science.
Through the activity represented by the box labeled “Engineering
 design process,” the engineer performs some logical sequence of
activities, decisions, and analyses to develop a solution to the
problem. However, this solution is of little use until the engineer
communicates the solution in the form of drawings, specifications,
financial estimates, written reports, and oral presentations to
explain and promote the solution. Unfortunately, many engineers
do not realize the importance of this vital last step of
communication, without which the rest of the work done is
fruitless.

Systems Engineering/New Product Development:

▪ The design of a complex engineered system, from the realization
of a need (for a new system or improvement of an existing system)
through production to engineering support in use is known as
systems engineering or as new product development (with
commercial systems).
▪ Systems engineering is a robust approach to the design, creation,
and operation of systems.
▪ In simple terms, the approach consists of identification and
quantification of system goals, creation of alternative system
design, concepts, performance of design trades, selection and
implementation of the best design, verification that the design is
actually built and properly integrated, and post- implementation
assessment of how well the system meets the goals

Concurrent Engineering:
▪ A new approach is now applied to the engineering design
philosophy to create products that are better, less expensive, and
more quickly brought to market.
▪ This trend reunites technical and nontechnical disciplines such as
engineering, marketing, and accounting. Always focusing on
satisfying the customer, these representatives work together in
defining the product to be manufactured.
 ▪ This approach to reduce time-to-market has become widely
adopted under the name concurrent (or simultaneous) engineering
for development of industrial systems.
▪ In concurrent engineering, the following are used for faster
product development and fewer changes:
o Collocate key functional disciplines.
o Organize cross-functional teams.
o Use computer-aided design (CAD) software.
o Conduct thorough design reviews at design concept and
definition stages.
o Involve key disciplines, especially manufacturing, early
in development.
o Prepare properly for CE implementation.
o Allow for a CE learning curve.
o Implement CE in small, manageable bites

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 of
a global consciousness.

Future Considerations in Engineering 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

Challenges of INDUSTRY 4.0

▪ Industry 4.0 has been defined as 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.
▪ It 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.
▪ New business models — the definition of a new strategy
▪ 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
▪ Recruiting and developing new talent
Module 10 – Managing Production
Introduction
A production operation is a set of interrelated activities that are
involved in manufacturing products. Operations management focuses on
carefully managing the production operations to produce and distribute
products and services. Production/operations management is about the
transformation of various resources into value added product/services.
Production is the creation of goods and services. Operations management
is the set of activities that manage the creation of goods and services.
Today production/operations management terms are quite often used
interchangeably depending on the product. A major focus of production
operations is on efficiency and effectiveness of processes. The use of
quality concepts with production operations includes substantial
measurement and analysis of internal processes.

Objectives:
✓ Define operations and operations management.
✓ Illustrate an example of manufacturing process of a business
organization.
✓ Understand some of the quality tools.

Operations:
o Operations refer to “any process that accepts inputs and uses
resources to change inputs in useful ways.”
o It is also an activity that needs to be managed by competent
persons.

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.

Operations and the Manager:

❖ The 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.

Manufacturing Process:
❖ Manufacturing processes are those that refer to the making of
products by hand or with machinery.
❖ Job Shop
o A job shop is one whose production is “based on sales
orders for a variety of small lots”.
o 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.
❖ Batch Flow
o The batch flow process is where lots of generally own
designed products are manufactured.
o It is further characterized by the following: ▪ There is
flexibility to produce either low or high volumes.
o Not all procedures are performed on all products.
o The type of equipment used is mostly for general purpose.
o The process layout is used.
 o The operation is labor intensive, although there is less
machine idleness.
o The size of operation is generally medium-sized.
o Examples of companies using the large batch flow are
wineries, scrap-metal reduction plants and road-repair
contractors.
❖ Worker-Paced Assembly Line
o An assembly line refers to a production layout arranged in
a sequence to accommodate processing of large volumes
of standardized products or services.
o The quality and quantity of output in a worker-paced
assembly line depends to a great extent to the skill of the
labor utilized.
o Examples of worker-paced assembly lines are food marts
like McDonalds and Shakey’s.
o 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.
❖ Machine-Paced Assembly Line
o This type of production process produces mostly standard
products with machines playing a significant role.
o 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.
 ❖ Batch/Continuous Flow Hybrid
o This method of processing is a combination of the batch
and the continuous flow.
o Two distinct layouts are used, one for batch and one for
continuous flow.
o The typical size of operation is also very large giving
opportunities for economies of scale.
o Examples of companies using the batch/continuous flow
hybrid are breweries and tobacco manufacturers.

Quality Assurance:
❖ Quality has been described as fitness for use or customer
satisfaction.
❖ It may be divided into two categories.
o 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.
o Quality of conformance (or quality of production)
measures how well the quality specified in the design is
realized in manufacture and delivered to the customer.

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

Productivity:
❖ Productivity is a measure of the efficiency with which an
organization performs its activities.
❖ 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:
o Productivity = Output/Input

Maintenance and Facilities (Plant) Engineering

❖ The Maintenance Engineering Handbook identifies the following
primary functions of the maintenance (engineering) activity:
o Maintenance of existing plant equipment
o Maintenance of existing plant buildings and grounds
o Equipment inspection and lubrication
o Utilities generation and distribution
 o Alterations to existing equipment and buildings
o New installations of equipment and buildings

Types of Maintenance:
❖ Corrective - simply repair work, made necessary when
something breaks down or is found to be out of order
❖ Preventive - Scheduled downtimes
❖ Predictive - a preventive type of maintenance that involves the
use of sensitive instruments (e.g., vibration analyzers, amplitude
meters, audio gages, optical tooling, and pressure, temperature,
and resistance gages) to predict trouble.

Total Productive 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:
o Promotes the overall effectiveness and efficiency of
equipment in the factory.
o Establishes a complete preventive maintenance program
for factory equipment based on life cycle criteria.
o Is implemented on a “team” basis involving various
departments to include engineering, production
operations, and maintenance.
o 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.
o 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).
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

Other Manufacturing Functions:

❖ Human Resources (Personnel) Management
o Recruiting and employment (human resource planning,
recruiting, interviewing, testing, transfers, and layoffs)
o Equal employment opportunity (affirmative action,
minority records and reports, complaint investigation)
o Industrial relations (contract negotiations, contract
administration, grievances, and arbitration)
o Compensation (job analysis and evaluation, wage surveys,
incentives and performance standards, managerial and
professional compensation)
o Education and training (orientation, skills training,
management training, career planning, tuition assistance,
organizational development)
o Health and safety (industrial hygiene, safety engineering,
first aid and medical, workers’ compensation)
o Employee benefits (insurance, pensions, profit sharing,
food service, dependent day care, social programs)
❖ Purchasing and Materials Management
o Recognition of need
o Description of requirement
o Selection of possible sources of supply
o Determination of price and availability
o Placement of the order
o Follow-up and expediting of the order
o Verification of the invoice
o Processing of discrepancies and rejections
o Closing of completed orders
o Maintenance of records and files