Assignment 1 Business Systems for Technicians

Brendan BurrBTEC National Certificate in Electronics

The Operation of an Engineering Company

Assignment 1 Business Systems for Technicians

Types and operation of engineering businesses*Note

Please read the following carefully:

Tasks 1, 2, 3 are compulsory and must be completed in full. On successful completion of these tasks you will achieve a Pass for each (P1, P2, P3)

Please note that other PASS criteria exist on other assignments and only on completion of ALL Pass criteria (seven in total) will an overall PASS be awarded for this unit.

Task 4 Optional On successful completion of this task you will achieve a Merit (M1) provided that ALL the Pass criteria have been completed successfully.

Please note that other Merit criteria exist on the other assignments and only on completion of ALL Merit criteria (three in total) will a Merit be awarded for this unit.

Task 5 Optional On successful completion of this task you will achieve a Distinction (D1) provided that ALL the Pass and Merit criteria have been completed successfully.

Please note that other Distinction criteria exist on the other assignments and only on completion of ALL Distinction criteria (two in total) will an overall Distinction be awarded for this unit.

Types and operation of engineering businesses WHAT YOU WILL LEARN IN THIS ASSIGNMENT

You will appreciate that the engineering industry is diverse, and engineering companies do more than just manufacture products. Engineering involves sourcing and refining of raw materials, adding value to materials by converting them into products and providing services such as data communications and product support.

ASSIGNMENT OBJECTIVES

In this assignment you will need to show that you can:

identify UK-based engineering companies and investigate the industry sector in which they operate

identify a range of processes and manufactured products and assign them to their particular industrial sector

investigate the way in which companies are organised so that they can be managed effectively

investigate the internal and external information systems used by an engineering company.

WHAT YOU WILL DO IN THIS ASSIGNMENT

You will use the internet and draw on other information sources to carry out research into UK-based engineering companies. You will research processes used by engineering companies and look at some of the products that these companies manufacture. You will investigate the management structure of companies and compare the different approaches used to manage people and communications. Finally, you will investigate the internal and external systems used by an engineering company to communicate information effectively.

TASK INTRODUCTION

The main focus of this assignment is to carry out research based on actual engineering companies. These companies will be involved in a range of business activities and have different management structures.

TASK 1

Identify three engineering companies which operate respectively in each of the three sectors investigated in lessons that is, one must be in the primary sector, one in the secondary sector and one in the tertiary sector which send apprentices to the college where you are studying for your National qualification. You could consider companies which send apprentices to the college where you are studying or you could find companies from the internet or other information sources.

Identify the nature of the business of each company and its product range or services.

Describe the engineering functions carried out by each company in their particular sector.

This task provides evidence for grading criterion P1.

TASK 2

The Newline Aeroplane Manufacturing Company (NAMC) buys hydraulic equipment from three suppliers. Each has a different type of organisational structure and management style.

Company A Set up 30 years ago by the current managing director, company A is still organised in a tall hierarchical structure. It employs approximately 100 people.

It is well known in the industry for the quality of its products but lately there have been problems with delivering on time and at the last AGM shareholders expressed concern about its profitability. The managing director maintains a very rigid line of command.

The workforce is made up of directors, senior managers, middle managers and other staff. The job roles within each of these categories are as follows.

Directors Managing, finance, marketing, production, technical, personnel.

Senior managers Purchasing, sales, advertising, finance, personnel, marketing, public relations, research and development, product design, production, maintenance, quality assurance, customer relations.

Middle managers Catering, building maintenance, machine shop operation, electroplating, tooling, design office, production control, inspection, goods inwards, despatch, IT services, UK sales, overseas sales, health and safety.

Other staff CAD designers, manufacturing engineers, production schedulers, CNC machining centre technicians, machine operatives, sales engineers, commissioning and maintenance technicians, inspectors, quality auditors, personnel administrators, wages administrators, IT technicians, front-of-house staff, staff trained as first-aiders, plating shop operatives, assembly and test technicians, goods inwards administrators, catering staff, cleaners, staff trained as evacuation wardens in the case of fire or emergency, customer relations.

Company B Set up three years ago and employing about 80 people, company B has a board of directors and is registered as a private limited company (Ltd). It makes a similar product to company A, is much more reactive to customer demand and has never missed a delivery date even though there have been times when machine tools and other equipment have broken down. The company is organised in a flat structure and produces the same volume of product as company A.

Company C This is a relatively young start-up company owned by three friends and selected by NAMC to collaborate on a new project. Company Cs management has decided to reorganise the research and development, design and manufacturing sections so that the business operates in a matrix structure.

Tasks (a) Draw an organisational chart for company A which shows lines of command. Describe the origins of this type of structure.

(b) Construct an organisational chart for company B and describe how it differs from company A.

(c) Describe how the matrix structure for company C would be set up.

(d) Describe the classification of each company in terms of size and status.

These tasks provide evidence for grading criterion P2.

TASK 3

In task 1 you were asked to identify three engineering companies. To complete this task, you need to base your research on the company that operates in the secondary sector that is, the company that designs and manufactures products for sale to customers.

Select a specific product that is manufactured by your engineering company. Explain how information is passed between the various people responsible for its design, manufacture, sale and continued maintenance. You should support your written findings with suitable block diagrams and company literature such as flow charts.

This task provides evidence for grading criterion P3.

TASK 4

You work for an old established engineering company which has just been sold to new owners. The new owners are concerned that the drawing office has limited CAD facilities and there is no integration with the CAM software being used by the manufacturing engineers to produce programs for the CNC machines which are cutting metal. Scrap rates in the workshop are high because CNC programs are unproven and technicians have to make numerous corrections. Within the business there are limited IT facilities and much communication is still through paper-based systems.

The companys main product line is high pressure pipe couplings for use in the aerospace, instrumentation and oil industries. The parts are machined in large quantities in a range of standard sizes using stainless steel bought in as bar stock. As raw material is used, staff manually update stock levels and reorder as required. Each week the company processes about 500 metres each of 30 mm, 40 mm, 50 mm and 60 mm hexagonal diameter bar to make approximately 35,000 couplings.

The company also offers the facility to produce specials if requested by a customer. These are manufactured in the fast response cell, and can be turned around within 36 hours of the first contact from the customer. Fast response orders are taken over the phone and confirmed by email. A drawing of the part is sent by the customer as an attachment to the email. Once the order is completed, the couplings are packaged, bar coded and despatched using a special delivery service.

One problem that has been identified by the management is that when customers phone in to check on the progress of their orders whether they be standard or fast response there is no up-to-date information available. You have been asked by your manager to survey the various types of information being passed around the company and between its customers and raw materials suppliers.

Write a detailed memo to your manager explaining your thoughts on how information and communications could be improved within the factory.

This task provides evidence for grading criterion M1.

TASK 5

Investigate the information flow through the company which you work for (or one which you have visited as part of your studies) and evaluate its effectiveness. This will involve meeting with people within the factory and finding out how they fit into the communication chain. You need to home in on a particular product or activity which is being carried out. There a number of options open to you, for example: follow through the sequence of events which take place when a product is ordered, manufactured, tested and subsequently despatched

or

investigate what happens if a product goes faulty in service and a customer contacts the company help desk

or

find out what happens when a manager decides to purchase and install a new machining centre (or similar piece of capital) equipment in the workshop.

Produce a detailed report which could be presented to someone such as a director of the business. The report should include information about IT systems within the company in the context of data flow and general communication. If, when you have completed your investigation, you feel that there are areas where communication is not as effective as it should be, you should produce an improvement plan which can be added to the end of your report.

This task provides evidence for grading criterion D1.

Task 1

My three chosen companies are:BP (British Petroleum) produce energy supplies and supports a variety of products, by extracting an already existing non-renewable energy, crude oil. This requires safe extraction from the oil pockets deep within the Earth.The company works in the primary sector by working with oil, as they extract raw materials.It also transports the fuels, after processing and refining it, and delivers them to various stations around the country to allow easy access for consumers such as automobile users.This brings them into the secondary and tertiary sectors also.

The company works in the engineering sector of Chemical Engineering.

Commercial functions Sales, marketing, distribution, finance and purchasing.

Engineering functions - Research & Development, design, manufacturing, product development, quality, planning and product support.Garador Ltd produce garage doors in a variety of designs such as in steel, timber and GRP, as well as accessories for the fitting and installation of the door.

They are part of a group called Hormann group, which are Europes largest garage door manufacturer.

The distribution and services to the customers seem as important as the manufacture of the actual product, for the company. The company have trained independent garage door companies, this is so the repair of the companies products can be distributed across the country and therefore increase the range of the sellable products.

This company is therefore included in the secondary and tertiary sectors.Commercial functions Sales, marketing, distribution, commissioning, finance and purchasing.

Engineering functions - Research & development, design, manufacturing, product development, quality, planning and product support.

AgustaWestland produce aircraft for Aerospace and Defence contracts.

The company ranges from Civil Aircraft to Military Aircraft and have recently secured a contract to build the US Presidential Helicopter.The company push cutting edge equipment to provide the latest technology integration on all variants of its aircraft.

They also have departments dedicated on the relationship between the company and the MoD. This includes providing training to Navy and RAF aeronautical engineers who will undergo all of the maintenance whilst the aircraft is deployed in the battlefield.

AgustaWestland fall within the secondary and tertiary sectors.

The company works in the engineering sector of Aerospace and Defence.

Corporate functions Admin finance and control, business development, strategy, helicopter system design, external affairs and communication, processes and competitiveness, research and development, human resources, ICT, audit, legal department and general counsel.Business functions UK government business unit, Italian government business unit, international government business unit, commercial business unit, US government business, NH90 programmes, marketing, business management, training and heads of region.Operational functions Operations, engineering, product support, procurement and supply chain, quality system, industrial development, products and flight operations.

Task 2(a)Draw an organisational chart for Company A which shows lines of command. Describe the origins of this type of structure.

Organisational chart: See attached.

The tall hierarchical organisational structure allows the company to display all the roles within the company subject to importance.

With this type of structure the company can show the chain of command and therefore begin with the most important person the Managing Director. This would be situated at the top of the chart whilst the more junior ranks are situated at the bottom.

(b)With Company A the tall structure gives the company five levels in the chain of command. This would make it difficult for the rest of the workforce (at the bottom of the chain) to be heard and communicate to the top of the chain.With Company B the flat structure allows the 3 levels to spread communication across less broad range, therefore reaching the top of the chain more quickly.

The five levels are shown to the left, where the normal workforce would have to raise concerns with the supervisor who would then take the next step to the managers and if the problem is serious will be raised with the board of directors, where the managing director may also be informed. This is a long path where information could be distorted through multiple communications through various people

Three levels are much simpler and allow the workforce to communicate almost directly to the board of directors, getting the point across quickly and therefore having a much bigger effect on the outcome.

(c) Describe how the matrix structure for company C would be set up.

A matrix structure has a two way flow of authority. This means that many individual groups can work on different projects for the same company and not delegate to a variety of departments who will be handling other projects also.

The three friends will most likely own a limited company.

Each section of the matrix structure will be alongside one another, so there will be a Director for the three departments (R&D, Design and Manufacturing) this will increase the communication between the three departments and therefore increase accuracy and quality in the products they produce.The main advantage to the company of reorganising the different departments in this way is that everybody is spoken to on the same level. This results in people that have the smaller boring but crucial tasks completing them and feeling part of the team and overall success of the project.

A matrix structure is specifically designed for a company which is project based. (d)Describe the classification of each company in terms of size and status.

Company A:

Limited or a Public Limited Company Medium Sized CompanyThe company is of a medium size due to the amount of employees amassing to 100 people. The range for a medium sized company is 50 200 people. The company is a medium size company and therefore would have an influence in local communities. Company B:

Limited Medium Sized CompanyCompany B is also a medium sized company due to the amount of employees being between the range of 50 200 people.

Company C:

Limited Small Sized CompanyCompany C was recently set up into a matrix structure, this would indicate that the company is of a relatively small size, employing less than 50 people.Task 3Select a specific product that is manufactured by your engineering company. Explain how information is passed between various people responsible for its design, manufacture, sale and continued maintenance. You should support your written findings with suitable block diagrams and company literature such as flow charts.Garage Door

Design activities of the garage doors are done by Garadors parent company Hormann group. The manufacture of the garage doors is completed on the Yeovil site in the UK.

Sales can take place all around the world, depending on the customers requirements.

Continued Maintenance of the doors is provided through independent garage door companies.

I have included a copy of the Sequence & Interaction Between Existing Procedural Instructions (Process Landscape), as there is a lot of detail which is best represented in diagrammatic form.The process begins with the customer and their requirements, this then produces specifications for the design offices to contemplate and ensure that a redesign is not required.

It is the customers responsibility to ensure that the all of the requirements necessary for the correct product, such as dimensions, materials, colours, how it opens and closes, details and other specifications, are supplied at the design stage. Failure to do so can result in added cost to the product, which would then be delegated to the customer.

Communication to the manufacturer is critical as failure to do so could result in extra expense and extended delivery dates for the customer.

Garador Sales Department will then have to take all of the specifications into account and ensure that all of the details are available to be covered by the company.This will be created by using various communication methods to different departments such as design (to calculate the amount of man hours required for the design stages), costing (this department will ensure that all of the material costs and hours are implemented at the correct cost).Conformations of the specifications may be made to the customer to ensure that the requirements are met first time. This may be done through various methods such as a friendly courtesy call, e-mail or letter.

Once the design is clarified the processing would begin for implementation into the manufacturing stages. Computer Aided Design is a global trend and is most likely incorporated into the design offices in Garador. This would allow them to send digital renderings to the Computer Numerically Controlled machines in the workshops, manufacturing the garage door in a very short space of time.

The door must then be transported and delivered to the customer, this could take up to a week as there are other things required such as packaging and cost effective transportation. Which may mean that the garage door is stored in a warehouse until other doors are manufactured and require shipment.

The garage door will then get fitted to the customers garage. This will be completed by one of Garadors trained independent companies, therefore information will have to be delivered to them to ensure that the correct equipment is used for the fitting.

Information will be delivered to the customer, this may be done by letter through the post or with delivery of the door. It would contain information with regards to the maintenance of the door and the contact details of the company for easy call out if there is a problem with the product.

Task 4

Write a detailed memo to your manager explaining your thoughts on how information and communications could be improved.MemorandumDate26th November 2008SubjectInformation and Communications Improvements

ToM. ManagerUrgencyImportant

FromB. Burr

To M. Manager,

With reference to your request for a review of the current information and communication techniques used within the company, I have composed a summary of the main affecting factors on the company.The first main issue is with regards to the CNC machines. There is a requirement for the Computer Aided Design facility to update successfully to the Computer Aided Manufacturing facility. At the moment a problem exists where the integration between the two facilities results in inaccuracies with the manufacturing on the shop floor. This leads to an excess in scrap material, which should have been eliminated with the introduction of Computer Numerically Controlled machines to the company.What I propose to resolve this problem is a meeting with both departments to ensure that a unitary route for production is finalised and incorporated across the entire company rather than individual departmental plans.

An investment into IT technologies is required to ensure that the backing of the above plan is implemented successfully. This is because the CAD packages currently in use will need to be delivered electronically for the design to then be inserted into the CNC machining programs to produce the thousands of components.The introduction of new IT technologies into the business will allow further interfacing into a component tracking system. This will allow exemplary forecasts on the delivery for the customer, as all components can be individually monitored over the system. Further expansion will allow the customer to log on via the internet and track their order, giving the customer a greater sense of inclusion into the manufacture of our product.Previous projects from renewable contracts need to be kept on record for any future requirements. For this reason there needs to be a suitable storage facility/regime that consistently works to procedures and allows any future problems to be resolved more efficiently and effectively.Stock levels need to be monitored more efficiently. At the moment new stock is ordered at the time when it has ran out, so a new system needs to be brought in to ensure there is the correct stock in the stores at all times.I propose using a system called DLF (Direct Line Feed), this will monitor the stock levels constantly and ensure that there is always the correct amount of materials and components available.

A simple breakdown of the problems is shown below.

Task 5Produce a detailed report which could be presented to someone such as a director of the business. The report should include information about IT systems within the company in the context of data flow and general communication. If, when you have completed your investigation, you feel that there are areas where communication is not as effective as it should be, you should produce an improvement plan which can be asses to the end of your report.Introduction

AgustaWestland produce and import detail fittings for the manufacture of a wide range of in-house products. The company as a whole manufactures 18 specific Helicopters with variants in each type, depending on customer requirement.

The company is broken down into three major sections which are as follows:Operations Consisting of:

Engineering

Products

Product Support

Procurement and Supply Chain

Quality System

Industrial Development

Flight Operations

Operations

Corporate Consisting of:

Administration Finance and Control

Business Development

Strategy (Product, Industrial)

Helicopter System Design

External Affairs and Communication

Process and Competitiveness

Research and Development

Human Resources

Information and Communication Technology

Audit

Legal Department and General Counsel

Business Consisting of:

UK Government Business Unit

Italian Government Business Unit

International Government Business Unit

Commercial Business Unit

US Government Business

NH90 Programmes

Marketing

Business Management

Training

Heads of RegionIt is the fluent communication between all of these areas that allow products to be completed successfully.

The product I have chosen to base the report on is the AW101. This is currently in production at the Yeovil site and will therefore be easier to research the communication techniques used for the development, production and delivery of the aircraft.

FindingsThe AW101 begins its life at the customer requirements stage, where the customer will contact the company and ask for a quote for a medium lift aircraft. This will then allow the company to determine which aircraft will be best suited for the customer. This communication will begin over the phone and as the purchase comes to a close the company will liaise with the client until the objectives are finalised.Once they are finalised the company will take away the specifications and any parts numbers which need to be modified will be sent to the design office for rework. This can then be incorporated into the final assembly, once all of the details and vital parts are produced. This process is helped significantly by CAD packages. In the design office the CAD software is used in such a way that a complete 3D rendering of any variant of Helicopter can be displayed down to the last rivet. This helps to see if there is any discrepancy on parts, such as fouling, and can save a lot of time and money.The customer has a tendency to repeatedly change the specifications throughout the contract, this adds cost and time to the project, however no extra time is given by the customer so more work is required in the same amount of time.

The majority of the transference of information is completed on a system called SAP. This has been set up in the company to monitor many details about the aircraft, such as components, fixtures and fittings.

The majority of the aircraft is imported, as this saves on cost through cheap labour. This means that there are parts such as the AW101 Roof Structure which currently get constructed in Denmark, which have to be fully completed, shipped and tracked to ensure it fits in with the project plan.All of the dates and part numbers are stored on the SAP system as this allows many departments to view information about the part, allowing them to push harder for the part to be manufactured and delivered or whether it has been delivered and is available for fitting onto the aircraft.

This is at the utmost importance as the assembly of the aircraft has to be completed in stages, which are critically laid down in the plan and design documents. For example the fuel pump cannot be fitted before the fuel tank as it would then have to be removed and refitted, costing time and money.

So if the fuel pump is here before the fuel tank it must be held in the stores until required and the fuel tank must be pushed forward to ensure it doesnt compromise the delivery date of the aircraft.A way that this information is communicated quickly and efficiently is by arranging small meetings, which allows concerns to be raised and then actions to be taken. This is completed verbally and someone may take minutes to ensure all the actions are carried out.

This is all done via an IT set up which includes multiple CAD packages, SAP, Internal Network (Intranet), Email system and Telephone system.

Communication is made easier by using this up to date technology, however there is still a constant lack of communication which is produced by the ignorance of mankind. Even though the technology is there it doesnt mean everyone will utilise its effectiveness and pass on the information they may know about the part.

ConclusionI have found that there is a networking system set up in the company which branches internationally to the other sites via an Intranet. This aids in the communication between the various sites and helps bring the employees together to ensure they are all up to date with company information about production.

The communication types vary widely depending on the departmental goals, however there are a few methods which remain the same throughout, such as telecommunications and email.All of the communication types are 2 way communications (In accordance with the Shannon and Weaver model produced by Shannon and Publicised by Weaver in 1948, defining the communication methods used by most organisations to communicate between their customers and themselves. Including the Information Source, Transmitter, Sources of Noise, Receiver and Destination.) as specifications are given by the customer and quotes are returned from the company, for example via telephone or email. This shows how closely the company works with the customer to deliver the correct aircraft, with the correct specifications.

I found the main weakness of the company to be the people working in it. This was because they have a tendency to withhold information and not relay messages on to the correct people. This could then cause confusion and delays, which could jeopardise the contract.It would be difficult to overcome this problem as people can only be supplied the training, it is their choice whether they utilise the training and perform to it.Delivery Of Maintenance Documentation

[Direct Paper Based Information]

Fitting (Fit the door for the customer)

[Paper Based Information]

Transportation (Deliver the product to the customer)

[Paper Based Information]

Operations (Put the final design into manufacture)

[Computer Aided Manufacture]

Design (Implement the specifications into the correct product)

[Computer Aided Design]

Sales (Ensure the correct

product is sold to the customer)

[Customer Based E-mail]

Initial Customer Enquiry

[Phone Call]

Information Desk

Very Little IT Usage

Customers Cannot Track Their Orders

Manual Stock Ordering

CAD/CAM Not Working Together

Information and Communicational Problems

Web Based Tracking

Automated Stock Control System

Invest in new integrated CAD/CAM System

High Scrap Rates

Paper Based

Invest in new IT and Network

Web Based Network (Intranet)

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