Engineering Management Assignment by Oladele Oladipo Ayorinde

8/2/2019 Engineering Management Assignment by Oladele Oladipo Ayorinde

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ENGINEERING MANAGEMENT

TASK 1

INTRODUCTION

Automobile's bumpers are the front-most or rear-most part, modeled and manufactured in-other

to assist cars in sustaining impact without damage to the vehicle's safety systems. They dont

have the ability to reduce injury possibilities to the occupants in vehicles which engage in high-

speed but recently are designed to mitigate injury to pedestrians struck by cars. (I.e. Victims

struck by cars).

The car bumper injection molding manufacturing process involve some certain steps such as

making the polymer by mixing liquid plastic precursors are mixed with a catalyst that causes

them to combine and polymerize quickly. The materials after are then injected into a large mold,

where they combine faster.

This will result into polymer of polyurethane. With the presence of gas, the polyurethane will

expand and fill up the bumper mold after which the product is removed.

This process is formally used by the company and will remain the basic manufacturing processfor this task but will undergo some innovations.

1.1. THE STATEMENT OF OBJECTIVES FOR THE PROPOSED PLANT


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In order to increase productivity and at the same time meet up with customers satisfactions it is

our intent to:

To reach the demands of our customers with the highest quality products by increasing

our production and provide outstanding levels of sales and delivery service, which cannot

be matched by our competitors and the by this means increasing our market share.

To deliver superior rates of return to our shareholders and also providing opportunities

and reward for our employees.

To rebrand our trademark and reputation by producing quality goods to best satisfy

customers and wins their heart and trust over the past flaws or low rate of supply.

FUCNTIONAL STRATEGIES

1.2

Regarding the defects in the previous problem the company had which limits productivity to less

than 50 percents, the following functions will be adjusted to boost up production to at least 90

percents.

Manpower: Generally manpower will be increases in all fields needed in two folds to

help boost up the production in all areas.

Manufacturing department: Machines will be increased to help increase production and

also here manpower will be increased and work will be done to improve their capacity to

interact with the machines which are manuals to help improve product and quality.

Marketing department: Skill employees will be recruited to generate a wider marketing

strategy for the company in order to boost sales and increase the market share of the

company.

Purchasing department: Manpower will be improved in this sector to facilitate materials

and goods to be purchased and also transportation means will be improved to aid fast

importation of materials and machines needed.

Finance department: Adequate measures will be put in place to help provide capital for

the company in order to be able to carry out the objectives stated (Plan).

Sales / accounting department: Skilled workers will be recruited in this sector also to

improves sales and increase good relationship with customers in order to meet up with


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part of the objectives planned i.e. Wining the heart of the customers by providing quality

products and representing the company appropriately.

Product management: warehouse, packaging, safety have to be put in place to reduce risk

and lose thereby improving production and profit.

Transportation Department: More transportation equipments such as vehicles will be

needed to reach out to customers and to move goods to warehouse.

1.3 POSSIBLE STAKEHOLDERS IN THE COMPANY

1.4. POSSIBLE SOURCES OF FUND, COST AND RISK


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Risk can be defined as a concept which denotes the probability of certain outcomes or the

uncertainty of them especially when it is an existing negative threat for trying to achieve a

current monetary objective.

http://www.ehow.com/about_5233385_risks-bank-loans.html

Sources of fund Risks

Bank Loan Interest rate risk i.e. If the loan could not be

paid back on time, the rate increases in respect

to time and if care is not taken depreciateprofit.

Government Subsidy Cost of providing social amenities to thecommunity, and also if regime experience

changes there is a chance of losing funding

because the new government may decide to

drop the company funding policy without

prejudice.Franchise If franchise is taken as an objective, as the

franchisor everything as to be done on the

franchisees way with no argument thereby

limiting if any the objective of this company.

Other risks include, heavy cost of ongoing cost

such as royalties, a monthly payment from therevenue generated by the company and also

additional fees includes such as for

advertisement.

Ongoing support: There is a risk of the

franchisee withdrawing its support after a

while of starting up the business and the allwill be left to the company to bear.

Cost: Buying into a well-known franchisessuppose to be an option if good profit has to be

made but the cost is extremely high.

Meanwhile buying into a little known franchise

is really dangerous for the growth of the

business.

Joint Venture Most times the partners involved have different

objectives for on the company operate intermsof funding and other aspect.

Their different culture and management
http://www.ehow.com/about_5233385_risks-bank-loans.htmlhttp://www.ehow.com/about_5233385_risks-bank-loans.htmlhttp://www.ehow.com/about_5233385_risks-bank-loans.html


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strategy can lead to poor integration and co-

operation.

And also the partners dont provide sufficientand quality leadership at early stage.

Public funding The grant size is usually very small which willnot meet with the bumper production

requirement according to the objectives needed

to be meet.

There is a chance of rapid change in priorities.

Continuous support may not be possible.

Applicants have limited access on decision

making.

Indirect cost may not be covered and its less

likely to cover the overall project cost therebyaffecting production.

According to the risk involved and the advantages of the difference sources of fund explained

above, Joint Venture will be chosen for this project because the risk involve is very low

compare to others and will be depreciating with time.

1.5. HUMAN RESOURCES REQUIRED

The human resources required for the proposed plant based on different fields and departments in

the company.

In order to meet with the production rate of the car bumper targeted in the company objectives

which is increasing production to 90 percent from the previous epileptic production of less than

50 percent, most fields manpower needs increment almost double of what it used to be.

Fields Initial manpower Required manpower

Marketing Department 15 30

Quality Department 3 5

Purchasing Department 8 20

Finance Department 5 8

Sales 20 40


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Accounting 15 30

Personel 10 20

Manufacturing department

(According to task)

1. Procure material 5 10

2. Dehumidfy the material -

(pre-heat)

10 20

3. Bringing mold to machine 10 20

4. Load the mold - locking the

mold and giving it appropriatetonnage

10 25

5. Purging out the earliermaterial from the machine

5 10

6. Loading the material. 5 10

7. Filling slowly and in the

process gradually increasingthe shot weight.

10 20

8. Fine tune with packpressures, injection speed

5 10

9. cool the part ejected 5 10

10. Degate- Deflash (remove

flash)

5 10

11. wrap and pack. 10 25

Transportation department 5 10

Utility Department 4 6

Security Department 3 4

Total : 165 Total: 338

1.6. BUDGET OF THE PLANT (For 5 Years)

Possible Inflation rate of 3-5 % is included due to the global economy status in this era.


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ITEMS ESTIMAT

ES (USD)

2013

(USD)

2014

(USD)

2015

(USD)

2016

(USD)

2017

(USD)

Sales perUnit

40 45 45 50 50

Sales

Volume

300,000 500,000 800,000 1,000,000 1,500,000

FIXED

Land

purchase

andconstruction

333,333.33 - - - - -

Machines

andequipments

120,000.00 - - - - -

Tax 400.00 400.00 400.00 400.00 400.00 400.00

VARIABLE

Manpower(Labour)

wages

300,000.00 220,000.00 250,000.00 280,000.00 300,000.00 300.000.00

Materials 55,000.00 52,500.00 55,000.00 57,500.00 60,000.00 62,500.00

Utilities 1,600.00 1,575.00 1,650.00. 1,725.00 1,800.00

Transportation(Purchases

and

mentainance)

400,000.00 400,000.00 50,000.00 52,500.00 55,000.00 57,500.00

UtilityTaxes

800.00 840.00 880.00 920.00 960.00 1000.00

Machinesand

equipments

(Purchase/mentainance)

45,000.00 42,000.00 44,000.00 46,000.00 48,000.00 50,000.00

Miscellaneo

us

100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00

TOTAL: =1356133.

33

=817315.0

0

=501,930.0

0

=539,045.0

0

=566,160.0

0

=571,400.0

0

SALES 12,000,000 22,500,000 36,000,000 50,000,000 75,000,000


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REVENUE

PROFIT 11,182,685 21,998,070 35,460,955 49433840 74428600

According to the estimation derived from the budget, which is 1356133.33 (usd), the minimum

capital required to start up the business is 1356133.33 usd.

1.7. Organization Structure Diagram of the Company.


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TASK 2

2.1. Factors Influencing productivity means factors that helps in growing productivity. Most

problems with productivity are obvious such as Poor Alignment of IT, reliance on IT process,

poor leadership and poor communication system.

The factors that help growing productivity is directly opposite this flaws in todays companies.

The factors that influence overall productivity is identified and briefly described below:

1. Good Leadership: When good leaders are put into place or each functions, the whole function

can be managed and even bad processes can be fine tuned by the leader by changing the process

as soon as necessary. Good communication will be into place by him/her ensuring the

possibilities to good communication and thereby will boost up productivity.

2. Good Communication: If there is good communication between managers and every particular

team, everyone knows its responsibilities and expectation thereby giving a clear sense of

responsibility to each job holders.

3. Good Alignment of Information Technology: IT process must be flexible enough to facilitate

good influence on the company in order to have positive impact on overall productivity.

4. Staff complement and workforce flexibility: Productive casuals should be employed as fulltimes after various test to influence overall productivity. And more so the more flexible the

workforce the more productive the institution will be.

5. Management Experience: Job holders years of experience matters. The more year of

experience they have the more they can deliver to aid growth in the industry.

2.2. WHY THE JAPANESE ARE SEEN TO BE SUCCESSFUL IN ACHIEVING

MANUFACTURING PRODUCTIVITY THAN EUROPEAN COUNTRIES.

The principles of ''LEAN'' manufacturing and production development have been described and

talked about in many articles since 1990 up to date such as; Womack, Jones, and Nobeoka

(1992) for product development.

The main key element in this principle made it possible for the firms who follows its approach

to achieve extremely high levels of quality (absence of defects) and productivity (very much

higher like 2 or 3 times higher than European plants in the late 1980s) in manufacturing as


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and also relatively high levels of flexibility in the sense of being able to produce small lots

of different models with little or perhaps no penalty in productivity or their quality.

Toyota developed this small-lot idea, at the moment manufacturing approach is needed

urgently to meet up with the needs of the post-World War I I. Japanese auto market was very

small in size and was exporting few products which grows faster in time when demands ofdifferent cars and trucks models was increasing. Between 1970s and 1980s, major Japanese

automakers gradually shifted the primary competitive domain to product development by using

the advantage of the manufacturing capabilities. it was Led by Honda and Toyota, and they

grow rapidly estimate around 42 months in contrast with that of European producers (Clark and

Fujimoto) and the US. After which the Japanese adopted the idea of full model changes every

four years which was started in the 1950s.

This allow Japanese automakers to bring in new features and technologies into their

vehicles more quickly than U.S. or European automakers, which generally had product

replacement cycles every 6 to 8 years or more.

In summary, Japanese adopted the principle of producing products with new features and new

technologies and also bringing them out in different models into market in every 4 years thereby

gaining more ground in global market share than European.

[1]

2.3 TECHNIQUES USED IN JAPAN TO ACHIEVE HIGH QUALITY

In recent years, Japanese techniques sometimes called Japanese Model or Japanese

Management techniques are being into limelight in the US and other countries in the world in

terms of management skills. Alot had been written about Japanese high productivity and

efficiency of Japanese industry in recent years. The key to the success in the Japanese

management style or techniques.

The techniques are described below:

1. Lifetime Employment: Under this technique, employees are hired after graduating from

colleges or high school and retained till a particular mandatory age of retirement (55 years Old)

excluding top level managers. The employees appointment can only be terminated if cases likecriminal cases or other unbearable act comes up. After retirements, employees are entitled to

large sum of retirement grants. This technique draws employees passion for working excellence

towards the company thereby putting on all effort and being responsible at any post.

2. The Evaluation and promotion process: This process involves new hirer going upto ten

years with automatic payment and promotions before his formal performance are made. It is after


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evaluation that payment increases and promotions comes. This process helps in bringing out long

term management outlook, a good altitude of cooperation towards employees and also non-

competition among employees. This helps boost employees performance in order to serve the

company right.

3. Non-Specialized Career Paths and Lifelong Job Rotation: In this process evaluation occursafter job rotation of about ten years and even after the evaluation through promotions.

This process helps employees in being familiar with various departments in the company and

increase the level of corporation and coordination among employees.

4. The participating approach to decision making: This technique involve individuals who

will feel the impact of the any decision make in the company in decision making. One person or

group of people may form a decision making a squad and everyone in the group have a right to

pour out their mind on any issue. Though this system of decision making takes a lot of time but

its very effective and more supportive.

5. Collective value and a collective sense of responsibility: This idea is integrated into

Japanese firm to limit the idea of one employee been hype than another in terms of delivering.

All employee have equal expectation from the company in terms of productivity. Employees are

adviced to work together to help make the company more productive.

These techniques are the major key to Japan high productivity achievement.

[2]

2.4 HOW GOOD QUALITY LEADS TO HIGH PRODUCTIVITY

An organization which has the vision to grow and successful has to embrace some certain

characteristics which will make it productive. When a company or an organization embraces this

characteristics they tend to grow and more successful (Productive).

Ambition: Firstly, if the leadership team of any company have great and passion good

ambition for the company, high productivity is obvious in the company environs. When

the leaders of the company are ambitious and have some goals and objectives to be

pursued and its pursued with all enthusiasm not selfishness then the company will behighly productive.

Customer: Customers satisfaction should be a major goal of any good company. Nocustomer, no growth and 100 % loss assurance is guaranteed in any company. The major

expectation of any company is to make profit so without any input from customers the

company dead. Therefore if customers needs are met then this implies good quality in the

company and yes, the company will be highly productive.


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Focus: If being focus on a company territory is adopted by a company then its a good

quality and the company will be highly productive also. If a company will do what they

know best and not rumbling around in other unfamiliar territories then high productivity

is obvious in such company.

Inspiration: All individuals in a company should hold a piece of responsibility to the rise

and death of any company so they can know they are responsible for any occurrence in

the company. This can be done when everyone have a share in making decisions in the

company. This help in inspiring every job holders to be more hard working and devoted

because they will know they are responsible at to a piece of whatever happens to the

company either profitable, productive, not profitable, or not productive.

If employees are inspired in this means then theres a high chance of making the company

highly productive because everyone delivers.

[3]

The above qualities, if embraced will lead any company to the path of been highly productive.

2.5 HOW TO MEASURE THE PLANTS MANUFACTURING PERFOMANCE:

1. Production rate /Volume: If production increase as planned or not. This will indicate and

makes the performance of the new plant transparent.

2. Good quality: Measures can be taken by testing the quality of the new products produced after

the new implemented plant.

3. Sales rate: The higher the sales rate the better for the company. Performance can be tested

through the sales rate of the company after the proposed plant has been implemented.

4. Customers feedback: Also performances can be tested through customers feedback through

different mean, direct speech, media e.t.c.

5. Failure rate: The performance can also be tested through the failure rate in the organization in

every function.

6. Gain and loss: Overall performance can be seen clearly by studying if the company is making

profit or loosing in terms of profit.


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TASK 3

3.1. PRODUCT STRUCTURE

3.2 BILL OF MATERIALS

Table 3.2. The Cabinet Bill of Material

3.3. OUTLINE PROCESS CHART OF THE CABINET


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3.4. DIRECT PRODUCTION COST PER UNIT

PROCESSES COST PER UNIT ()

Cutting process 15

Sanding process 5

Drilling 9

Painting 5

Assembly 2

TOTAL PROCESSES = 5 TOTAL COST = 36

3.5 DETERMINING WHICH SITE TO BUY.


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According to the three sites found and the processes involve in the manufacuting of this product

which suppose to take large part of the company and the sales department, there is no necessity

of getting a too bigger site for the product. More so, considering the first two site which is 100

200 and 200 250 respectively, the price of the site (2) is not reasonable because the long side of

it is not as much different for the first site but the second site is wider and longer than the first

site and also longer just exactly as the bigger site which is the third site and close to the

wideness.

I will choose site 2 because it has the same length with the site three which cost much and have

closer breath with the site 3 also. In other to manage monetary resources, site three is the best

value.

3.6. SUITABLE LAYOUT FOR THE FACTORY


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TASK 4

It is paramount for employers to understand their responsibilities to provide safety at every

workplace. In other words to provide well a safe working environment for employees. Workrelated injuries and diseases should be prevented by taking safety and health at the working

environment very important.

The following are the standard procedures which must be put into place:

Tips for a safe working environment: It is important to give every new employees the tips

of the safety system that has been put into place in every particular organization by

making them aware of the occupational health and safety policies in the system.

It is advisable to for employers to provide a training session to employees on safety

procedures, and also shedding more lights on readymade evacuations and emergency

procedures.

Employer responsibility with health and safety: The machineries, equipments and tools

must be kept safe and not unsafe for employees. Also the process work is done in the

company must be monitored by employers and must be assure that it does not have

negative effect on employees.

Guidance should be given to employees on how to do their responsibilities safely and

employers needs to consult the employees to know the status of their health.The workplace must be checked regularly and records should be kept on every

occurrence that comes up during the supervision.

Employees with disability: There should not be any discrimination in terms of any

workers ability either able or a disable work. Employers must create a better work place

that fit all workers ability according to law even if any workers disability needs to be

consider.

Adjustment should be made for a worker with disability cases so it doesnt have its

contribution to the organization.

Managing a return to work: Any employee returning back to work after sometime of

vacation or after treatment of some injuries should be retrained on all safety procedures

and safe health tips in the company system at present.


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Small business occupational health and safety advisers program: This involved seminars

and safety programs to help create more awareness on safety tips to employees.

[4]

TASK 4B

Employers responsibilities on the contract of appointment, discrimination and termination

of employment.

CONTRACT OF EMPLOYMENT

1. A written statement of terms and conditions of employment; Certain terms and conditions

based on the employment must be stated in writing within two months of the employee working

with the company.

It must consist of method of calculating pay and whether or not sick say scheme is operated in

the system of the organization. In the case of fixed time employees, the document would also

include the date of employment completion.

2. A wriiten statement of pay or payslip : On the slip, gross pay and every possible deductions

will be indicated.

3. A minimum wage

4. A maximum working week: Average of 48 hours per week depending on the company.

Records must be kept by employers on how many hours any employee work.

5. Unpaid breaks during working hours: Workers have the grace of 15 minutes break if working

for fours and half hours and 30 minutes if working for six hours.

6. Annual leave from work: Full time worker are entitled to payment of four working weeks on

annual leaves per year by employers.

7. A minimum amount of notice before dismissal : Depending on the length of service rendered

by employees to an organization, they should have minimum time of notification on before

dismissal.

[5]

DISCRIMINATION: Its is an obligation to every employers to prevent discrimination in

workplaces and also when hiring or dismissing any staff.


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It is employers responsibility to control the level of discrimination at the workplace to zero

percent. It is also unlawful for employers to victimize anyone who complains about

discrimination at workplace.

Either direct or indirect discrimination, it is the responsibility of employer to monitor and control

it.

TERMINATION OF APPOINTMENT: The employer must give notice of dismissal to the

employee involve before the process is carried out. The notice that will be given depends on the

agreement on contract of employment and if no written agreement It can also base on any verbal

agreement between the two parties.

If none of the two have been put into place then the length of service may be considered.

REFERENCE

1.http://dspace.mit.edu/bitstream/handle/1721.1/2437/SWP-3477-26970551.pdf?sequence=1

2.http://www.questia.com/googleScholar.qst?docId=5000066441

3.http://www.businessknowhow.com/growth/greatco.htm

4.http://jobaccess.gov.au/Employers/Before_you_start/Preparing_and_modifying_the_workplace/Page

s/How_to_provide_a_safe_wor.aspx

5.http://www.employmentrights.ie/en/informationforemployers/whataremyresponsibilities/
http://dspace.mit.edu/bitstream/handle/1721.1/2437/SWP-3477-26970551.pdf?sequence=1http://dspace.mit.edu/bitstream/handle/1721.1/2437/SWP-3477-26970551.pdf?sequence=1http://dspace.mit.edu/bitstream/handle/1721.1/2437/SWP-3477-26970551.pdf?sequence=1http://www.questia.com/googleScholar.qst?docId=5000066441http://www.questia.com/googleScholar.qst?docId=5000066441http://www.questia.com/googleScholar.qst?docId=5000066441http://www.businessknowhow.com/growth/greatco.htmhttp://www.businessknowhow.com/growth/greatco.htmhttp://www.businessknowhow.com/growth/greatco.htmhttp://jobaccess.gov.au/Employers/Before_you_start/Preparing_and_modifying_the_workplace/Pages/How_to_provide_a_safe_wor.aspxhttp://jobaccess.gov.au/Employers/Before_you_start/Preparing_and_modifying_the_workplace/Pages/How_to_provide_a_safe_wor.aspxhttp://jobaccess.gov.au/Employers/Before_you_start/Preparing_and_modifying_the_workplace/Pages/How_to_provide_a_safe_wor.aspxhttp://jobaccess.gov.au/Employers/Before_you_start/Preparing_and_modifying_the_workplace/Pages/How_to_provide_a_safe_wor.aspxhttp://www.employmentrights.ie/en/informationforemployers/whataremyresponsibilities/http://www.employmentrights.ie/en/informationforemployers/whataremyresponsibilities/http://www.employmentrights.ie/en/informationforemployers/whataremyresponsibilities/http://www.employmentrights.ie/en/informationforemployers/whataremyresponsibilities/http://jobaccess.gov.au/Employers/Before_you_start/Preparing_and_modifying_the_workplace/Pages/How_to_provide_a_safe_wor.aspxhttp://jobaccess.gov.au/Employers/Before_you_start/Preparing_and_modifying_the_workplace/Pages/How_to_provide_a_safe_wor.aspxhttp://www.businessknowhow.com/growth/greatco.htmhttp://www.questia.com/googleScholar.qst?docId=5000066441http://dspace.mit.edu/bitstream/handle/1721.1/2437/SWP-3477-26970551.pdf?sequence=1

Engineering Management Assignment by Oladele Oladipo Ayorinde

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