Types of engineering organizations 1

Engineering Environment Awareness Aims Introduce types of engineering organizations with respect to size, ownership and turnover and what health and safety regulations they need to abide by. Objectives Appreciate the organizations within an engineering environment and the H & S they comply to. 2

The types of engineering organizations with respect to size, ownership and turnover Multi national National Regional SMEs Sole traders 3

Multinational It is believed that foreign investments in host engineering companies drives production up and wages down. But in fact "Within host countries it has been abundantly shown that foreign-owned firms pay higher wages than domestically-owned firms," according to business analysis Robert Lipsey. He notes that foreign firms tend to be in "higher wage sectors," generally hire "better educated and more qualified workers" than locally-owned firms, and "tend to be larger and more capital intensive." He finds only sparse evidence of those higher wages having a "spill over" effect on wages paid by local companies, but he claims that whatever evidence there was points to an increase in average wage. 4

National effects on an engineering environment The Nation could have various effects on an engineering environment 1.Funding:- the government could subsidise and industry to encourage economical growth in the area. 2.Health & Safety legislation could change so that British firms would have to comply to this legislation where as other countries may not. These factors could have a major effect on an engineering company. Regional organizations could have the same effect 5

WHAT IS AN SME? The definition of an SME (small and medium enterprise) used by the South West Ventures Fund is a business or company that: ♦ has fewer than 250 employees; ♦ has either (a) an annual turnover not exceeding €50 million (approximately £24 million) or (b) an annual balance sheet total not exceeding €27 million (approximately £16 million); and ♦ 25% or more of the capital or the voting rights are not owned by one enterprise, or jointly by several enterprises falling outside this definition of an SME. 6

The Sole Trader When setting out in business, you will probably be setting up on your own, using your own personal capital to get started. If this is the case you will be known as a Sole Trader. The sole trader is the most simplest business to develop as it initially consists of only you (the one man band), and has very little legal formalities, obligations or constraints attached to this form ownership as opposed to other forms; in fact it is just a case of informing the tax inspector and contributions agency of your intentions and you can begin to trade. You also need only a small amount of capital and you're off! 7

The Sole Trader However, as the expansion of the business depends on the amount of capital you are personally able to inject, you may find investing in the growth of my business very difficult as capital is often difficult to find. In addition, as a result of the inability to assist expansion, your competitors would have the edge over your business; for example, businesses with greater access to investment would be able to adapt more quickly to market demands leaving you struggling to compete. Larger organisations could change the prices without feeling the impact as much as the sole trader would. 8

The purpose of the main functions within an engineering organization. Human resources Production management Quality management Sales Marketing Research 9

Human Resources or Personnel Department Human Resources provides guidance and interpretation of the law in all the following important areas: Absence and Working Time Contracts of Employment Discipline and Grievance Discrimination and Diversity Health and Safety HR Strategy Industrial and Employee Relations Maternity and Parental Leave Pay and Benefits Recruitment and Selection Termination of Employment Training and Development 10

Production Manager Production management, also known as operations management, is the planning, co-ordination and control of industrial processes. A production manager ensures that goods and services are produced efficiently; that they are of the right quality, quantity, and cost; and that they are produced on time, to the satisfaction of the customer, at the right price. The scope of the job will depend on the nature of the production system: jobbing production; mass production; process production; and batch production. Many companies are involved in several types of production, adding to the complexity of the job. Most production managers have an important responsibility for human and materials resources. 11

Quality Management The definition of a quality manager is someone that overviews the quality aspects of a project. This person ensures that the quality of the product is upheld. This person maintains that the product is of reasonable quality or fit for purpose for the desired function. 12

The Sales Person The sales person would be responsible for qualifying all incoming sales enquiries and working with the Sales Manager and Directors to provide them with appointments and internal sales support. In addition the sales person will be expected to spend approximately 70% of their time generating new business through proactive calling and account development. 13

Marketing Marketing involves finding out what your customers want and then providing it. At the heart of marketing lies the market research process. This involves identifying customer requirements and then meeting their needs. As a minimum this involves asking customers such questions as: What size and shape mobile phone would you like to see us provide? What services do you want our phones to provide? However, responsible companies go beyond that and ask: How would you like our company to behave? What part do you want us to play in building a better society 14

Research Research in an engineering environment involves the product life cycle. e.g. a car may be modified with different engines, body styles or material but after a certain time the design will change to give a new lease of life to the product. game.aspx?game_id=