TABAÑAG, DIETHER L.

BSME V-1 MARCH 28, 2020

ASSIGNMENT

ES 521 ENGINEERING MANAGEMENT

1. Define the following terms:

1.1 Product
Product includes the tangible (or intangible) item and its capacity to
satisfy a specific need.

1.2 Advertising
Advertising is a paid message that appears in the mass media for the
purpose of informing or persuading people about particular products, services,
beliefs, or action.

1.3 Finance Function

Finance function is an important management responsibility that deals
with the “procurement and administration of funds with the view of achieving the
objectives of business.”

1.4 Risk
Risk refers to the uncertainty concerning loss or injury.

1.5 Operations
Operations refer to “any process that accepts inputs and uses resources
to change those inputs in useful ways.”

1.6 Job Shop

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.

1.7 Service factory

Service factory offers a limited mix of services which results to some
economies of scale in operations. This also affords the company to compete on
terms of price and speed of producing the service.

1.8 Marketing Concept

Marketing concept states that the engineer must try to satisfy the needs of
his clients by means of a set of coordinated activities. When clients are satisfied
with what the company offers, they continually provide business.
2. Discuss the importance of Operations Management?

The management of operations is very crucial to the survival of firms. Operations refer to
the changing of inputs into useful outputs. In the effort to manufacture products (or services),
operations management must contribute its share in the accomplishment of the company’s
objectives.

The function of the operations manager is to plan, organize, and control operations in
order to achieve objectives, and control operations in order to achieve objectives efficiently and
effectively. The engineer manager is, oftentimes, assigned to perform the tasks of the
operations manager.

The transformation process may be classified generally as manufacturing or service

processes. These two are subclassified into various types, each with built-in advantages
depending on certain conditions.

Production systems consist of various parts that complement one another in the
production task. The engineer manager needs to be familiar with these various parts.
3. Draw a typical example of an Organizational Chart of a Construction Company.

President

Vice President Vice President Vice President

for for for

Finance Construction Human
Resources

Projects Construction Purchasing Contract

Manager Manager Manager Administration

Manager

Project X Purchasing Contract

Engineer
Manager Specialist Negotiator

Project Y Purchasing Contract

Engineer
Manager Specialist Negotiator

Project Z Purchasing Contract

Engineer
Manager Specialist Negotiator
4. Discuss the engineer and the 4P’s of marketing.

The engineering organization will be able to meet the requirements of its clients
(or customers) depending on how it uses the four P’s of marketing which are as the
product (or service), the price, the place, and the promotion.

Product
In the marketing sense, the term “product” includes the tangible (or intangible)
item and its capacity to satisfy a specific need. When a customer buys a car, he is
actually buying the comfortable ride he anticipates to derive from the car. This is not to
mention the psychological benefits attached to the ownership of a car.

Price
Price refers to “the money or other considerations exchanged for the purchase or
use of the product, idea, or service.” Some companies use price as a competitive tool or
as a means to convince the customer to buy.

Place
If every factor is equal, customers would prefer to buy from firms easily
accessible to them. If time is of the essence, the nearest firm will be patronized. It is very
important for companies to locate in places where they can be easily reached by their
customers. Not every place is the right location for any company.

Promotion
When engineer managers have products or services to sell, they will have to
convince buyers to buy from them. Before the buyer makes the purchasing decision,
however, he must first be informed, persuaded, and influenced.
5. Discuss the different types of transformation process in managing production

and service production.

The engineer manager must have some knowledge of the various types of
transformation process. They are as follows:

1. Manufacturing processes
a. Job shop
b. Batch flow
c. Worker-paced line flow
d. Machine-paced line flow
e. Batch/continuous flow hybrid
f. Continuous flow

2. Service processes
a. Service factory
b. Service shop
c. Mass service
d. Professional service

Manufacturing Processes
Manufacturing processes are those that refer to the making of products by hand or with
machinery.

Job Shop
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.

Batch Flow
The batch flow process is where lots of generally own designed products are
manufactured.

Worker-Paced Line Flow / Worker-Paced 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.

Machine- Paced Line Flow/ Machine-Paced Assembly Line

This type of production process produces mostly standard products with machines
playing a significant role.

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 the continuous flow. The typical size of
operation is also very large giving opportunities for economies of scale.
Continuous 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, typewriters, automobiles, televisions, cellular phones,
etc.

Service Processes
Service processes are those that refer to provision of services to persons by hand or
with machinery.

Service Factory
A service factory offers a limited mix of services which results to some economies of
scale in operations. This also affords the company to compete in terms of price and speed of
producing the service.

Service Shop
A service shop provides a diverse mix of services. The layout used are those for job
shops or fixed position and are adaptable to various requirements.

Mass Service
A mass service company provides services to a large number of people simultaneously.
A unique processing method is, therefore, necessary to satisfy this requirement. To be able to
serve many people, mass service companies offer limited mix of services.

Professional Service
These are companies that provide specialized services to other firms or individuals.
Professional service firms offer a diverse mix of services. There is a lower utilization of capital
equipment compared to the service factory and the service shop. The process pattern used is
very loose. The process layout used is identical to the job shop.
6. What are the important parts of productive system?

Productive systems consist of six important activities as follows:

1. Product design
2. Production planning and scheduling
3. Purchasing and materials management
4. Inventory control
5. Work flow layout
6. Quality control

Product Design

Product design refers to “the process of creating a set of product specifications

appropriate to the demands of the situation.”

Production Planning and Scheduling

Production planning may be defined as “forecasting the future sales of a given product,
translating this forecast into demand it generates for various production facilities, and arranging
for the procurement of these facilities.

Scheduling is the “phase of production control involved in developing timetables that

specify how long each operation in the production process takes.”

Purchasing and Materials Management

Firms need to purchase supplies and materials required in the various production
activities. The management of purchasing and materials must be undertaken with a high degree
of efficiency and effectiveness specially in firms engaged in high volume production. The wider
variety of supplies and materials needed adds to the necessity if proper managing and
purchasing of materials.

Materials management refers to “the approach that seeks efficiency of operation through
integration of all material acquisition, movement, and storage activities in the firm.”

Inventory Control

Inventory control is the process of establishing and maintaining appropriate levels of

reserve stocks of goods. As supplies and materials are equipped by firms in the production
process, these must be kept available when they are needed. Too much reserve of stocks will
penalize the firm in terms of high storage costs and other related risks like obsolescence and
theft. Too little reserves, on the other hand, may mean lost income opportunities if production
activities are hampered. A balance between the two extremes must be determined.
Work-Flow Layout

Work-flow layout is the process of determining the physical arrangement of the

production system. In the transformation process, the flow of work may be done either
haphazardly or orderly.

Quality Control

Quality control refers to the measurement of products or services against standards set
by the company. Certain standard requirements are maintained by the management to facilitate
production and to keep customers satisfied. Poor quality control breeds customer complaints,
returned merchandise, expensive lawsuits, and huge promotional expenditures.