MODULE 9: MANAGING TECHNOLOGY to enhance their skills for themselves and the

NATURE OF RESEARCH & DEVELOPMENT organization. The more dynamic the

► Basic research - a research devoted to environment, the more important skill
achieving a fuller knowledge or enhancement is for the firm and the
understanding, rather than a practical individual.
application, of the subject understudy, ► Use good change management processes
although when funded by commercial firms, to help the firm succeed in introducing
it may be in fields of present or potential newness into the organization.
interest to the company.
► Applied research - directed toward the NEW PRODUCT STRATEGIES
practical application of knowledge, which for 1. First to Market
industry means the discovery of new ● This demands major expenditures for
scientific knowledge that has specific research before there is any guarantee
commercial objectives with respect to either of a successful product.
products or processes.
► Development - the systematic use of 2. Follow the Leader
scientific knowledge directed toward the ● This strategy does not require a
production of useful materials, devices, massive research effort, but it
systems, or methods, including design and demands strong development
development of prototypes and processes. engineering

RESEARCH STRATEGY AND ORGANIZATION 3. Me too

► Design systems and processes that can ● In its purest form this strategy means
identify, assess, and develop technology copying designs from others, buying or
based opportunities (or protect from new leasing the necessary technology, and
technology threats). The systems and then concentrating on being the
processes should be able to sense what is absolute minimumcost producer
coming.
► Identify communication needs and 4. Application Engineering
efficiently turn data into information so that ● This role involves taking an established
the right information can be available to product and producing it in forms
make the best decision in a timely fashion. particularly well suited to customers’
The current interest in big data and what it needs.
can tell firms is tied to the notion that we ● It requires no research and little
have a lot of bytes of data available because development, but a good deal of
of computer technology that is not being understanding of customers’ needs
used effectively or efficiently. and flexibility in production.
► Develop employees through training and
learning opportunities. This becomes more ENGINEERING DESIGN
critical as the competitive environment for ► Design - the activity that best describes
the organization becomes more dynamic. the engineer. To design is to create
The management of technology and something that has never existed before,
innovation requires that all levels of the either as a solution to a new problem or as a
organization are involved and that efforts are better solution to a problem solved
made to ensure that employees are allowed previously.
► According to J. B. Reswick, “design is the ► Systems engineering - a robust approach
central purpose of engineering”. It begins to the design, creation, and operation of
with the recognition of a need and the systems.
conception of an idea to meet that need. It ► In simple terms, the approach consists of
proceeds with the definition of the problem. identification and quantification of system
► Engineering design - a process of goals, creation of alternative system design,
transforming information, as illustrated in the concepts, performance of design trades,
figure. Information provides the input to the selection and implementation of the best
process: a statement of the problem to be design, verification that the design is actually
solved, design standards, design methods, built and properly integrated, and
and the methods of engineering science. post-implementation assessment of how well
the system meets the goals.
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 (if ever na malabo, page 10 sya sa pdf)
solution in the form of drawings, specifications,
financial estimates, written reports, and oral
CONCURRENT ENGINEERING
presentations to explain and promote the solution.
► A new approach is now applied to the
Unfortunately, many engineers do not realize the
engineering design philosophy to create
importance of this vital last step of
products that are better, less expensive, and
communication, without which the rest of the work
done is fruitless. 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

SYSTEMS ENGINEERING/NEW PRODUCT fewer changes:

DEVELOPMENT ● Collocate key functional disciplines.

► The design of a complex engineered ● Organize cross-functional teams.

system, from the realization of a need (for a ● Use computer-aided design (CAD)

new system or improvement of an existing software.

system) through production to engineering ● Conduct thorough design reviews at

support in use is known as systems design concept and definition stages.

engineering or as new product development ● Involve key disciplines, especially

(with commercial systems). manufacturing, early in development.

 ● Prepare properly for CE CHALLENGES OF INDUSTRY 4.0
implementation. ► Industry 4.0 - defined as a term for the
● Allow for a CE learning curve. modern trend of automation and data
● Implement CE in small, manageable exchange in manufacturing technologies,
bites. together with cyber-physical systems, the
Internet of things, cloud computing and
cognitive computing and forming the smart
factory.
► characterizes a new stage in the
organization and control of the business
value chain, hence, makes it easier for
different industries to automate routine tasks
and disrupt the balance between job tasks
completed by humans and those completed
by machines and algorithms.
► New business models—the definition of a
(if ever na malabo, page 13 sya sa pdf)
new strategy
► Rethinking your organization and
GLOBALIZATION CHALLENGE
processes to maximize new outcomes
► Globalization - a process of interaction
► Understanding your business case
and integration among the people,
► Conducting successful pilots
companies, and governments of different
► Helping your organization to understand
nations, a process driven by international
where action is needed
trade and investment and aided by
► Change management, something that is
information technology.
too often overlooked
► This process has effects on the
► Examination of company culture
environment, on culture, on political systems,
► The genuine interconnection of all
on economic development and prosperity,
departments
and on human physical well-being in
► Recruiting and developing new talent
societies around the world.
► Globalization broadly refers to the
MODULE 10: MANAGING PRODUCTION
expansion of global linkages, the organization
- A production operation is a set of
of social life on a global scale, and the growth
interrelated activities that are involved in
of a global consciousness.
manufacturing products.
- Operations management focuses on
FUTURE CONSIDERATIONS IN ENGINEERING
carefully managing the production
AND MANAGEMENT
operations to produce and distribute
► Continuing computer-based information
products and services.
revolution
-Production/operations management is
► Increasing technological sophistication of
about the transformation of various
society
resources into value added product/services.
► International and political considerations
- Production is the creation of goods and
in a shrinking, interdependent world
services.
► Demographic considerations
► Interactions of food, energy, materials, and
the environment
- Operations management is the set of academic background in business or
activities that manage the creation of goods industrial engineering.
and services.
MANUFACTURING PROCESS
* Today production/operations management ► Manufacturing processes are those that
terms are quite often used interchangeably refer to the making of products by hand or
depending on the product. A major focus of with machinery.
production operations is on efficiency and
effectiveness of processes. The use of quality
1. Job Shop
concepts with production operations includes
▪ A job shop is one whose production is
substantial measurement and analysis of internal
“based on sales orders for a variety of small
processes.
lots”.

OPERATIONS ▪ Job shops are very useful components of

► Operations refer to “any process that the entire production effort, since they

accepts inputs and uses resources to change manufacture products in small lots that are

inputs in useful ways.” needed by, but cannot be produced

► It is also an activity that needs to be economically by many companies.

managed by competent persons.

2. Batch Flow

OPERATIONS MANAGEMENT ▪ The batch flow process is where lots of

► “the process of planning, organizing and generally own designed products are

controlling operations to reach objectives manufactured.

efficiently and effectively” ▪ It is further characterized by the following:

► Efficiency is related to “the cost of doing ● There is flexibility to produce either low

something, or the resource utilization or high volumes.

involved.” When a person performs a job at ● Not all procedures are performed on

lesser cost than when another person all products.

performs the same job, he is more efficient ● The type of equipment used is mostly

than the other person. for general purpose.

► Effectiveness refers to goal ● The process layout is used.

accomplishment. When one is able to reach ● The operation is labor intensive,

his objectives, say produce 20, 000 units in although there is less machine

one month, he is said to be effective. idleness.

● The size of operation is generally

OPERATIONS AND THE MANAGER medium-sized.

► The manager is expected to produce some

output at whatever management level he is Examples of companies using the large

working. batch flow are wineries, scrap-metal

► The operations manager must find ways reduction plants and road-repair

to produce the required quality of goods and contractors.

services and the reduction of costs in his

department. 3. Worker-Paced Assembly Line

► The typical operations manager is one ▪ An assembly line refers to a production

with several years of experience in the layout arranged in a sequence to

operations division and possesses an

accommodate processing of large volumes
of standardized products orservices. QUALITY ASSURANCE
▪ The quality and quantity of output in a • Quality has been described asfitnessfor use
worker-paced assembly line dependsto a or customer satisfaction.
great extent to the skill of the labor utilized. • It may be divided into two categories.
1. Quality of design measures the extent
Examples of worker-paced assembly lines to which customer satisfaction is
are food martslike McDonalds and Shakey’s. incorporated into the product design
through the specification of proper
• The worker-paced assembly line is materials, tolerances, and other
characterized by the following: precautions.
● The products manufactured are 2. Quality of conformance (or quality of
mostly standardized. production) measures how well the
● There is a clear process pattern. quality specified in the design is
● Specialized equipment is used. realized in manufacture and delivered
● The size of operation is variable. to the customer.
● The process is worker-paced.
● The type of layout used isthe line flow. COSTS OF QUALITY
Labor is still a big cost item. 1. Prevention Cost
• incurred in advance of manufacture to
4. Machine-Paced Assembly Line prevent failures, such as quality planning,
• This type of production process produces training, data analysis and reporting, process
mostly standard products with machines control, and motivation programs.
playing a significant role.
• Among its other features are as follows: 2. Appraisal Cost
● The process is of clear, rigid pattern. • include the costs of inspection of incoming
● Specialized type of equipment is used. parts and materials (whether by the supplier
● The line flow layout is used. or when receive the parts), inspection and
● Capital equipment is a bigger cost test of the product in process and as a
item than labor. finished product, and maintenance of test
● Operation islarge. equipment.
● The process is machine-paced
3. Internal Failure Cost
5. Batch/Continuous Flow Hybrid • are those that would not appear if there
• This method of processing is a combination were no defects in the product before
of the batch and the continuous flow. shipment to the customer.
• Two distinct layouts are used, one for batch • They include scrap (labor and material
and one for continuous flow. spent on unrepairable items), rework (the
• The typical size of operation is also very cost of making defective items fit for use,
large giving opportunities for economies of including necessary retesting), downtime
scale. and yield losses caused by defects, and the
cost of material review and disposition of
Examples of companies using the defectives.
batch/continuous flow hybrid are breweries
and tobacco manufacturers.
4. External Failure Cost 2. Maintenance of existing plant buildings
• External failure costs are those caused by and grounds
defects found after the customer receives the 3. Equipment inspection and lubrication
product. 4. Utilities generation and distribution
• These include the costs of investigating and 5. Alterations to existing equipment and
adjusting complaints, the costs of replacing buildings
defective product returned by the customer, 6. New installations of equipment and
price reductions (“allowances”) offered to buildings
compensate for substandard products, and
warranty charges. TYPES OF MAINTENANCE
1. Corrective
COSTS OF QUALITY • simply repair work, made necessary when
COQ = Appraisal Cost + Prevention Cost + something breaks down or is found to be out
Internal Failure Cost + External Failure Cost of order

“COQ = CoGQ + CoPQ” 2. Preventive

• Scheduled downtimes
Where :
CoGQ = Prevention Cost + Appraisal Cost 3. Predictive
CoPQ = Internal Failure + External Failure Cost • a preventive type of maintenance that
involves the use of sensitive instruments (e.g.,
*CoGQ = Cost of Good Quality vibration analyzers, amplitude meters, audio
*CoPQ = Cost of Poor Quality gages, optical tooling, and pressure,
temperature, and resistance gages) to
PRODUCTIVITY predict trouble.
• Productivity is a measure of the efficiency
with which an organization performs its TOTAL PRODUCTIVE MAINTENANCE (TPM)
activities. • Total productive maintenance (TPM), a
• Efficiency is achieved by using the fewest concept originated by the Japanese, is an
inputs to generate a given output. integrated, top-down, system-oriented, life
• The effectiveness of these operations is cycle approach to maintenance, with the
achieved when the organization pursues the objective of maximizing productivity.
appropriate goals. • Directed primarily to the commercial
• A simple measure in productivity might be manufacturing environment, TPM does the
units of production per labor hour, or following:
per-labor dollar: 1. Promotes the overall effectiveness and
Productivity = Output/Input efficiency of equipment in the factory
2. Establishes a complete preventive
MAINTENANCE AND FACILITIES (PLANT) maintenance program for factory
ENGINEERING equipment based on life cycle criteria
► The Maintenance Engineering Handbook 3. Is implemented on a “team” basis
identifies the following primary functions of involving various departments to
the maintenance (engineering) activity: include engineering, production
1. Maintenance of existing plant operations, and maintenance
equipment
 4. Involves every employee in the planning, tuition assistance, organizational
company, from the top management development)
to the workers on the shop floor. Even ► Health and safety (industrial hygiene,
equipment operators are responsible safety engineering, first aid and medical,
for maintenance of the equipment workers’ compensation)
they operate. ► Employee benefits (insurance, pensions,
5. Is based on the promotion of profit sharing, food service, dependent day
preventive maintenance through care, social programs)
“motivational management” (the
establishment of autonomous B. PURCHASING AND MATERIALS
small-group activities for the MANAGEMENT
maintenance and support of 1. Recognition of need
equipment 2. Description of requirement
3. Selection of possible sources of supply
OTHER FACILITIES AND PLANT ENGINEERING 4. Determination of price and availability
FUNCTIONS 5. Placement of the order
1. Plant security (guards, fences, locks, theft 6. Follow-up and expediting of the order
control, emergency planning) 7. Verification of the invoice
2. Fire protection (fuel and chemical storage, 8. Processing of discrepancies and
fire detection and extinguishment, loss rejections
prevention, and risk management) 9. Closing of completed orders
3. Insurance administration 10. Maintenance of records and files
4. Salvage and waste disposal
5. Pollution and noise abatement
6. Property accounting

OTHER MANUFACTURING FUNCTIONS

A. Human Resources (Personnel)
Management
► Recruiting and employment (human
resource planning, recruiting, interviewing,
testing, transfers, and layoffs)
► Equal employment opportunity
(affirmative action, minority records and
reports, complaint investigation)
► Industrial relations (contract negotiations,
contract administration, grievances, and
arbitration)
► Compensation (job analysis and
evaluation, wage surveys, incentives and
performance standards, managerial and
professional compensation)
► Education and training (orientation, skills
training, management training, career