INTRODUCTION

What is Operations Management?

Operations management is the process of managing the operations of an organization. It aims to

ensure the efficient use of resources to produce high-quality products. Operations management involves

analyzing and managing processes and improving customer service. It is a vital part of any organization

and is key to success.

Additionally, operations management users are increasingly turning to automation. AI-assisted

systems are also gaining a stronger foothold. These systems help them streamline processes and save

time. Finally, the report showed that the leading operations management trend uses machine learning.

This has aided to gain deeper insights into operations data.

Operations management is the branch of management that oversees the entire production

timeline of a service/product. From the input to the finished stage, it includes planning, organizing,

and supervising operations.

It also oversees the manufacturing and production processes. Finally, the process ends with

the service delivery. This way, it achieves the desired outcome of a high-quality product/service

to meet customer demands.

Simply described, operations management serves the following purpose in the

administration of business:

• meet objectives

• increase productivity

• optimize profitability
Importance of Operations Management

Operations management is important in a business organization because it helps effectively

manage, control and supervise goods, services and people.

It cuts across the sector and industry. In the health sector, operations management ensures

proper health delivery with the right instruments at the right time. It also helps people like nurses

and doctors deliver timely service. A technical savvy individual knows what is at fault when

something goes missing.

For a production or manufacturing company to be successful, OM must first stand. Take an

oil and gas company’s product discharged by ship to the reservoirs to make it available for a large

customer. OM sees to the delivery of the products and schedules its execution. With OM, people

achieve more, and productivity is increased.

Operations management is widely used irrespective of company size or what they do.

Benefits of Operations Management

1. Product Quality – the operations management is the first unit in a typical firm that checks

a product’s durability and reliability. Operations management deals with the quality of

products or goods which would suit customers on and after delivery. When a product is of

quality, it gives you an edge compared to your competitors

2. Productivity – productivity is the ratio of input to output and is the only way to verify

employees’ input. Operations management ensures appropriate staffing of employees to

resources to get maximum results. The only way to ensure productivity is through effective

operations management.
3. Customer Satisfaction – there is no feeling for a manager or an employee as a customer

getting the utmost satisfaction. Operations management rightly ensures this is coupled with

a quality product. Customers make organization thrive, and they must be treated well in

every way necessary and possible.

4. Reduced Operating Cost – through productivity, quality products and customer

satisfaction, cost incurred on product servicing is maximally reduced. This simultaneously

leads to increased revenue. Only operations management can make this possible. In

reducing operating costs, there is also waste reduction. The exact number/size of products

is produced as requested via proper operations management.

 DEFINITION OF TERMS

Just-In-Time (JIT) – this component refers to the process of scheduling your operations so that

they can start and be completed “just-in-time” - or just when they are really needed.

Forecasting – this component pertains to the process of relying on historical data, facts, figures,

and statistics to make decisions for production.

Total Quality Management (TQM) – TQM is a strategy that is used to create a customer-focused

organization and involves improving all employees and activities of the company to meet customer

requirements.

Materials Requirements Planning (MRP) – this component ensures that you are receiving the

right amount of the right material on time to be able to complete your production on time.

Overheads – refer to the indirect costs necessary for project execution which are not directly

attributable to specific tasks but contribute to overall project operations.

Cost Control – the management of project expenses to ensure they stay within the defined budget

constraints, often involving monitoring, analysis, and adjustment of spending throughout the

project lifecycle.

Productivity – the measure of output produced per unit of input, typically referring to the

efficiency of resource utilization in achieving project goals.

Fixed Asset Expenditure – refers to the investment on long term assets used in the operations to

produce the product or services.

Implementation Schedule – it outlines the timeline and sequence of activities required to execute

a plan or project successfully

Licenses – are legal permissions granted by authorities that allow individuals or organizations to

engage in certain activities.

Monthly Expenses – refers to the payment made every month in the operations department.

Operating Expenses – these are the costs incurred in the regular course of business operations.

Operations Budget – budget refers to the financial plan that outlines the expenses associated with

running the day-to-day activities of a business or organization.

Other Expenses – these are expenses that are made and could not be categorized as fixed asset

expenditure or monthly expenses.

Permits – are official documents issued by regulatory bodies or local authorities that grant

permission for specific actions or projects.

Regulations – are rules and standards established by governments or regulatory agencies to

govern various aspects of industrial operations.

Variation – relates to the degree of fluctuation or variability in engineering processes or outputs

over time.

Variety – refers to the diversity or complexity of tasks, processes, or products involved in

engineering operations.

Visibility – refers to the transparency or accessibility of information and insights into engineering

operations.

Volume – refers to the scale or magnitude of operations within an engineering context.

 COMPONENTS IN AN OPERATIONS SYSTEM

12 Main Components of Operations Management

1. Forecasting: This component pertains to the process of relying on historical data, facts,

figures, and statistics to make decisions for production. Proper forecasting is necessary to

know how much of a specific product should be produced. This will allow your facility to

only produce what is needed to avoid being stuck with excess inventory or have too many

shortages.

2. Location Strategies: This component of operations management involves selecting the

right location for your organization. A number of factors are involved in selecting the

appropriate location. For example, the location of a manufacturing facility may be decided

based on the availability and proximity to certain materials or skilled labor resources. Other

factors such as transportation costs can be a factor, especially if the facility is located in an

area of low product demand. Together, the company’s requirements, values, and goals will

help determine the best location to minimize costs and potential risks.

3. Maintenance: This component involves scheduling all of the regular maintenance checks

and adjustments for your machines and equipment. Proper machine maintenance creates a

safer workplace environment for your employees while reducing the risk of unexpected

breakdowns and failures that could halt production. In addition, regular maintenance will

keep your machines running at max efficiency for the longest time so that your overall

production output remains high.

4. Purchasing: This component pertains to ensuring that you have enough raw materials to

supply the incoming demands for products. Purchasing can be done using centralized,

decentralized, or combined strategies. Centralized purchasing occurs when a single

 department is in charge of purchasing for the entire organization. Decentralized purchasing

occurs when each department or branch is in charge of purchasing to meet their individual

needs.

5. Scheduling: This component of operations management involves assigning jobs or

operations to the right machine or labor resource. When an operation schedule is done right,

it allows your company to decrease your overall production time and allow for more items

to be produced and shipped out in time. This will allow you to increase your revenues and

maintain a competitive advantage in the market.

6. Total Quality Management (TQM): TQM is a strategy that is used to create a customer-

focused organization and involves improving all employees and activities of the company

to meet customer requirements. The focus of total quality management is usually on

improving the processes rather than the outcomes and enables the organization to work

towards having zero defects.

7. Materials Requirements Planning (MRP): This component ensures that you are

receiving the right amount of the right material on time to be able to complete your

production on time. MRP involves taking inventory of the items you currently have,

identifying which additional materials are required, and scheduling the production of

materials or their purchase.

8. Quality: This component is important for companies to conform to product specifications

and maintain favorable relationships with their customers. Having quality products or

services usually means that they meet your customer demands.

9. Just-In-Time (JIT): This component refers to the process of scheduling your operations

so that they can start and be completed “just-in-time” - or just when they are really needed.
 This technique ensures that you are limiting the number of WIP items so that materials and

intermediates can flow from one resource to another to avoid needing to store large

quantities of WIP items.

10. Process and System Performance: This component is measured through examination,

capacity utilization, or production. You can analyze and compare the expected time and

quantity of items produced to the actual values to get a sense of whether your production

facility is meeting its targets of falling short.

11. Layout of Facilities: This component ensures that the most optimal workflow is used

within your production facility. One of the 7 wastes identified in lean manufacturing

involves the unnecessary movement of items throughout the facility caused by poor

workflow, poor layout, and inconsistent working methods. An optimal facility layout is

one that minimizes the motion of items.

12. Inventory Management: This component involves keeping track of the stocked materials

and items and making sure that the company is carrying the products they need at the right

time. Effective inventory management will help companies meet demands by ensuring that

they have the right number of materials and finished goods to avoid having too much or

too little stock.

 OPERATIONS PLAN

What does operational planning mean?

Operational planning creates a detailed roadmap based on a strategic plan. The operational

plan aligns timelines, action items and key milestones that finance or the business needs to

complete to execute on the strategic plan. In this way, an operational plan outlines the

organization’s key objectives and goals and clarifies how the organization will achieve them.

During the operational planning process, finance or the business responsibilities are

described in detail based on the timeline for the operational plan. The timeframe should depend on

typical organizational velocity; creating an annual operational plan is a fluid, changing process, so

keeping clarity and collaboration is vital for success.

A well-conceived business operational plan keeps team members collaborating smoothly,

ensures everyone knows what needs to be done and what their part in it is, and guides critical

decisions about long-term strategy.

Key steps of operational planning

• Define the goal or vision for the operational plan clearly

• Analyze and identify key business stakeholders, resources and budgets team members,

budgets, and resources

• Consistently track and inform team members and stakeholders on progress

• Adapt the operational plan to wider company goals as needed

Why are operational plans important?

The most important reason why operational plans are imperative to business success is

that they help employees to understand the goals of the company. It also works to achieve them

by taking the actionable and necessary steps to help the company succeed. An operational plan,

when well-structured and detailed, can help to ensure that a business stays on track, whether that

be for a single project or for a set amount of time.

By taking the time to create an operational plan, you may also be able to notice any areas

of the business that need improving.

Examples of Operational Plans

Example 1:

Jane owns a marketing business and is looking to grow her company by 25% over the next two

years by working with more clients. To meet this target, she creates an operational plan:

Goal: 25% increase in business growth, measured in revenue.

Timeline: Two years.

Required resources: Customer service training, increase in phone lines and extra staff members.

Tasks: To learn how to engage and advertise to customers over the phone, to learn how to use

email marketing to advertise and to learn how to network to generate potential leads for the

company.

Budget: £5,000 for two years

Monitoring technique: Analyzing revenue over the next two years.

Example 2:

Nico owns a manufacturing plant and wants to increase its production output by 10% over the next

3 months so that their company can sell to more clients. To achieve this goal, they write an

operational plan:

Goal: To increase production by 10%.

Timeline: Three months, as new clients may start ordering.

Required resources: £2,500 for the purchase of new manufacturing equipment, one more trained

manager and two more machinery employees

Tasks: Ask new clients to pay for their orders in advance to increase revenue streams, hire and

train two new individual employees about the heavy machinery and hire one trained manager to

oversee the whole operation.

Monitoring technique: Monitor the total output of the manufacturing plant each day and each

week to determine if there has been an increase in output. If output growth is slow, we may be

required to consider investing in an additional machine.

 PROCESS PLANNING

• Process – a series of actions that you take in order to achieve a result.

What is Process Planning?

Process planning is a preparatory step before manufacturing, which determines the

sequence of operations or processes needed to produce a part or an assembly. This step is more

important in job shops, where one-of-a-kind products are made or the same product is made

infrequently.

In companies, planning processes can result in increased output, higher precision, and

faster turnaround for vital business tasks. A process is described as a set of steps that result in a

specific outcome. It converts input into output. Process planning is also called manufacturing

planning, material processing, process engineering, and machine routing. It is the act of preparing

detailed work instructions to produce a part. It is a complete description of specific stages in the

production process. Process planning determines how the product will be produced or service will

be provided. Process planning converts design information into the process steps and instructions

to powerfully and effectively manufacture products.

It has been documented that process planning is required for new product and services. It

is the base for designing factory buildings, facility layout and selecting production equipment. It

also affects the job design and quality control.

Objective of Process Planning:

The chief of process planning is to augment and modernize the business methods of a

company. Process planning is planned to renovate design specification into manufacturing

instructions and to make products within the function and quality specification at the least possible

costs. This will result in reduced costs, due to fewer staff required to complete the same process,

higher competence, by eradicating process steps such as loops and bottlenecks, greater precision,

by including checkpoints and success measures to make sure process steps are completed

precisely, better understanding by all employees to fulfil their department objectives. Process

planning deals with the selection of the processes and the determination of conditions of the

processes. The particular operations and conditions have to be realized in order to change raw

material into a specified shape. All the specifications and conditions of operations are included in

the process plan.

Principles of Process Planning

General principles for evaluating or enhancing processes are as follows:

1. First define the outputs, and then look toward the inputs needed to achieve those outputs.

2. Describe the goals of the process, and assess them frequently to make sure they are still

appropriate. This would include specific measures like quality scores and turnaround times.

3. When mapped, the process should appear as a logical flow, without loops back to earlier

steps or departments.

4. Any step executed needs to be included in the documentation. If not, it should be eliminated

or documented, depending on whether or not it's necessary to the process.

5. People involved in the process should be consulted, as they often have the most current

information.
Example of a Process Plan:

1. Project Initiation:

• Define project objectives, scope, and constraints.

• Identify stakeholders and establish communication channels.

• Conduct a feasibility study to assess the project's viability.

2. Conceptualization and Design:

• Generate creative ideas for the product based on market needs.

• Conduct market research to validate concepts and identify target audience.

• Develop preliminary designs and specifications.

• Seek input and approval from cross-functional teams and stakeholders.

3. Detailed Design and Planning:

• Create detailed engineering drawings and specifications.

• Plan resource requirements, including personnel, materials, and equipment.

• Develop a project schedule with milestones and deadlines.

• Identify potential risks and develop a risk mitigation plan.

4. Procurement:

• Source and procure necessary materials and components.

• Establish relationships with suppliers and negotiate contracts.

• Ensure timely delivery of materials to meet project timelines.

5. Prototyping and Testing:

• Build prototypes based on the detailed design.

• Conduct rigorous testing to ensure product functionality and quality.

• Gather feedback from testing phase and make necessary design adjustments.

6. Production and Assembly:

• Implement efficient production processes.

• Monitor production progress and quality control measures.

• Coordinate with manufacturing teams to ensure adherence to specifications.

• Address any issues that arise during the production phase.

7. Quality Assurance:

• Implement quality control measures at various stages of production.

• Conduct inspections and tests to verify product compliance.

• Document and address any deviations from quality standards.

8. Deployment and Delivery:

• Develop a strategy for product launch and market introduction.

• Coordinate logistics for product delivery and distribution.

• Provide training and support for end-users as needed.

9. Monitoring and Optimization:

• Implement a system for monitoring product performance post-launch.

• Collect and analyze customer feedback for continuous improvement.

• Identify opportunities for cost optimization and process enhancement.

10. Project Closure:

• Evaluate the project against initial objectives and success criteria.

• Document lessons learned and best practices for future projects.

• Conduct a final review with stakeholders.

• Archive project documentation for future reference.

REFERENCES:

https://www.deskera.com/blog/what-is-operations-management/

https://www.planettogether.com/blog/12-components-of-operations-management

https://planful.com/operational-

planning/#:~:text=The%20operational%20plan%20aligns%20timelines,the%20organization%20

will%20achieve%20them.

https://uk.indeed.com/career-advice/career-development/operational-plan-examples

https://dictionary.cambridge.org/us/dictionary/english/process

https://link.springer.com/referenceworkentry/10.1007/1-4020-0612-

8_721#:~:text=Process%20planning%20is%20a%20preparatory,same%20product%20is%20ma

de%20infrequently.

https://exeedcollege.com/blog/importance-of-operations-management-in-business-organizations/
 OPERATIONS LAYOUT

In engineering management, the term "operations layout" typically refers to the physical

arrangement and organization of facilities, equipment, workstations, and resources within an

operational environment. The goal of an operations layout is to optimize the use of space,

streamline workflow, and enhance overall efficiency in the production or service delivery process.

This concept is particularly relevant in manufacturing, logistics, and other industries where

physical processes are a key component of the operational structure.

The operations layout involves decisions related to the physical placement of departments,

workstations, storage areas, machinery, and other elements within a facility. Different types of

layouts can be employed based on the nature of the operation and the specific requirements of the

processes involved.

Common types of operations layouts:

1. Process Layout:

• Arranges workstations and equipment based on the specific tasks or processes they

perform.

• Suited for job shops or facilities where a variety of products are produced in small

batches.

2. Product Layout (or Line Layout):

• Organizes workstations and equipment in a linear fashion, often in a straight line or

U-shape.
 • Ideal for assembly lines or mass production environments with a standardized

product.

3. Cellular Layout:

• Groups machines and workstations into cells, each responsible for a specific set of

tasks or processes.

• Enhances flexibility and efficiency, particularly in manufacturing environments.

4. Fixed-Position Layout:

• Suitable for projects where the product is too large or complex to move during

production.

• Resources and equipment are brought to the fixed location of the project.

5. Hybrid Layout:

• Combines elements of different layouts to leverage their respective advantages.

• Offers flexibility and efficiency tailored to the specific needs of the operation.

The goals of an effective operations layout in engineering management include:

• Optimizing Workflow: Ensuring a logical and efficient flow of materials, information,

and work processes.

• Minimizing Transportation and Handling: Reducing the distance and time required to

move materials or products between workstations.

• Facilitating Communication: Ensuring easy communication and coordination between

different departments or work areas.

 • Improving Utilization of Resources: Maximizing the use of available space, equipment,

and personnel to enhance overall productivity.

• Enhancing Safety and Ergonomics: Designing layouts that prioritize safety and provide

ergonomic work environments for employees.

In summary, the operations layout in engineering management involves strategic decisions

about the physical arrangement of resources to optimize operational processes, streamline

workflows, and improve overall efficiency within a facility.

Key Concepts of Operations Layout

• Illustrates the layout of the operations.

• Layout refers to the arrangement of machine, equipment, workers and other facilities used

in the operations.

• The layout must be design in such a way that the production of goods and services can be

done smoothly and efficiently.

• There are three types of layouts:

1. Layout based on process.

2. Layout based on product.

3. Layout based on marketing.

TYPES OF LAYOUTS

Layout based on product.

• This type of layout is suitable for a business that has product focus or continuous flow

production.
 • The design of this layout is made according to the sequence of activities to product the

product.

• Example of a business that have this kind of layout is a food processing factory.

Layout based on process.

• This layout is suitable for a business that produce several products using similar processes.

• This type of layout is design based on the similarity of processes whereby machine and

equipment that perform similar function will be grouped together.

• Example of business with this type of layout is a steel workshop and a tailor store.

Layout based on marketing.

• This layout is designed with an intention to maximize the area available to display goods.

• Examples of layout based on marketing can be observed in the retail business such as

bookstore or departmental store.

 PRODUCTION PLANNING

Production planning in engineering management is a critical process that involves the

systematic and strategic organization of resources, activities, and schedules to optimize the

manufacturing or production processes within an engineering context. The primary goal of

production planning is to ensure efficient utilization of resources while meeting production targets,

maintaining quality standards, and adhering to cost constraints. This process is essential for

achieving overall operational effectiveness and customer satisfaction.

Effective production planning is essential for achieving operational efficiency, minimizing

costs, and meeting customer expectations. It involves a holistic approach that integrates various

elements of the production process to create a well-coordinated and streamlined system.

Additionally, advancements in technology, such as the use of software systems and automation,

play a crucial role in enhancing the precision and agility of production planning in engineering

management.

Key Concepts of Production Planning:

• It is important to make sure that the business can produce output or to provide services that

is enough to fulfill the expected market demand or sales.

• This can be achieved by having a good production planning.

• In production planning, the business will determine how much output to produce for a

certain period such as in a day, a week or a month.

• The business may need the information from the marketing plan, e.g. average sales

forecast.
Example of calculation for output per day

Average sales forecast per month = RM 25,200.00

Price per unit = RM 15.00

𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒𝑠 𝑓𝑜𝑟𝑒𝑐𝑎𝑠𝑡 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ =
𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡

25,000 𝑝𝑒𝑠𝑜𝑠
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ =
15.00 𝑝𝑒𝑠𝑜𝑠

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑜𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 𝑚𝑜𝑛𝑡ℎ = 1,680 𝑢𝑛𝑖𝑡𝑠

If the number of working days per month is 24 days

The amount of output to be produced per day is:

1,680 𝑢𝑛𝑖𝑡𝑠
24 𝑑𝑎𝑦𝑠

= 70 𝑢𝑛𝑖𝑡𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦

 MATERIAL PLANNING

Material planning in engineering management refers to the systematic process of determining

the materials required for a project or production process and ensuring that these materials are

available in the right quantity, at the right time, and at the right cost. This process is essential for

efficient and cost-effective project execution, as it helps in avoiding delays, minimizing excess

inventory, and optimizing resource utilization. Material planning is a critical aspect of supply chain

management and involves various activities to meet the production or project requirements.

Efficient material planning is essential for preventing delays, reducing costs, and optimizing

resources in engineering projects. It involves a coordinated effort among various functions within

an organization to align material availability with project timelines and objectives. Advanced

planning tools and technologies, such as MRP software, are often employed to streamline and

enhance the accuracy of the material planning process.

Key Concepts of Material Planning:

• Material planning is done to determine the type and number of raw materials need for the

production.

• Material planning involved four steps:

1. Identify and list down the raw materials required.

2. Prepare the Bills of Materials.

3. Calculate the quantity of raw material required.

4. Identify the suppliers of raw materials.

Identify and List Down the Raw Materials Required

• Usually in manufacturing business, the raw materials used is easily identified.

 • For example, to manufacture pencils, raw materials needed are hollow wood, lead, eraser,

metal band, paint, glue and packaging box.

• In case of retail business, the raw materials are known as goods. The business needs to

estimate the amount of initial goods to be purchased to start the business operation.

Prepare the Bills of Materials

• The bills of materials will contain a complete list of materials, parts or components and the

amount needed to produce a unit of product.

• To prepare the bill of material, the entrepreneur must understand the design of the product.

• This bill of material is important information for purchasing activities.

Example of Bills of Materials

To produce a unit of pencil, the bills of materials is as follows:

Product No. Description Specification Quantity

101 Half hollow wood 17 cm long 2

102 Lead 17 cm long 1

1.5 mm diameter
103 Eraser 0.75 cm long 1
6 mm diameter
104 Metal Band 2 cm long 1

105 Paint .05 ml 1

106 Glue .05 ml 1

Examples of Materials Requirement Schedule

MATERIAL QUANTITY SAFETY TOTAL PRICE/UNIT TOTAL

STOCK MATERIAL (PESOS) PRICE
REQUIREMENT (PESOS)
Flour 50 kg 5 kg 55 kg 78 4,290

Sugar 50 kg 5 kg 55 kg 22 1,210

Eggs 200 units 20 units 220 units 9 1,980

Corn Syrup 100 Liter 10 liters 110 liters 160 17,600

Margarine 100 kg 10 kg 110 kg 199 21, 890

Total 46, 970

 MACHINE & EQUIPMENT PLANNING

Steps to determine machine and equipment requirement:

1. List out all machine and equipment required base on the process flow chart or process plan

2. Determine the amount of machine and equipment required based on the venture capacity

requirement

3. Identify the suppliers that are reliable in term of price and after sale services

Factors to be considered in purchasing machine and equipment:

• Price

• Quality and reliability

• Availability of spare parts

• Break down maintenance facility

• Technology & user friendly

• Supplier reputation

• After sale services

Examples of Machine & Equipment Requisition Planning Schedule

No. Machine Quantity Price/Unit Total Price

(PESOS) (PESOS)

1 Mixer 1 10, 000 10, 000

2 Cutter 2 5, 000 10, 000

3 Cash Register 1 8, 000 8, 000

Total 28, 000

Steps to determine quantity for machine & equipment

1. Determine the planned rate of production per day

2. Determine the standard production time per unit for the planned machine

3. Determine the machine productive time: Operation hours – (Setting up time + Down Time)

4. Calculate the amount of machine required using the formula:

𝑁𝑜. 𝑜𝑓 𝑀𝑎𝑐ℎ𝑖𝑛𝑒 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑑

𝑃𝑙𝑎𝑛𝑛𝑒𝑑 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑑𝑎𝑦

= × 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑡𝑖𝑚𝑒/𝑢𝑛𝑖𝑡
𝑀𝑎𝑐ℎ𝑖𝑛𝑒 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑒 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟 𝑑𝑎𝑦
REFERENCE:

• https://www.scribd.com/presentation/52628096/Chapter-6-Operations-Management
 MANPOWER PLANNING

What is manpower planning?

Manpower planning is essential for any construction project to be successful. The construction

industry requires a significant amount of human resources, and planning the manpower is crucial

to ensure the timely and cost-effective completion of the project.

Factors affecting manpower planning:

1. Efficient Resource Allocation

➢ Manpower planning helps to allocate resources efficiently. It ensures that the

right people are assigned to the right jobs, based on their skills and experience.

This prevents unnecessary delays and ensures that the project is completed on

time.

2. Cost Control

➢ Manpower planning helps to control costs. By planning the workforce

requirements in advance, it helps to avoid hiring too many workers, which

can result in increased labor costs. Additionally, it helps to ensure that the

right mix of skilled and unskilled labor is used to complete the job, reducing

the overall cost of the project.

3. Improved Productivity

➢ Manpower planning improves productivity by ensuring that the right number

of workers is available at the right time. This helps to avoid delays and ensures
 that the work is completed efficiently. By planning for the right mix of skilled

and unskilled labor, the project can be completed more efficiently.

4. Safety

➢ Manpower planning helps to ensure that the construction site is safe for

workers. By ensuring that the right number of workers is available, the

workload can be managed effectively, reducing the risk of accidents and

injuries.

5. Resource Management

➢ Manpower planning helps to manage resources effectively. By planning the

workforce requirements in advance, it helps to ensure that the necessary

resources, such as equipment and materials, are available when needed. This

helps to avoid delays and ensures that the project is completed on time.

In conclusion, manpower planning is a critical part of any construction project. It helps to

ensure that the right number of workers with the necessary skills and experience are available

when needed. This, in turn, leads to increased productivity, cost control, and improved safety, all

of which are essential for the successful completion of any construction project.
 OVERHEADS REQUIREMENT

What is overheads requirement?

Overheads play a crucial role in engineering management, particularly in terms of cost control,

budgeting, and project planning. In engineering management, overhead requirements refer to the

indirect costs necessary for project execution, such as administrative expenses, facility costs, and

support services, which are not directly attributable to specific tasks but contribute to overall

project operations. Understanding and managing these overhead expenses are essential for

controlling project costs, budgeting effectively, and ensuring the successful completion of

engineering projects within allocated resources.

Key factors in overheads requirement:

1. Cost Control

➢ Overhead costs often constitute a significant portion of the total project

expenses. Effective management of overhead requirements allows

engineering managers to control costs, ensuring that projects remain within

budgetary constraints.

2. Budgeting and Planning

➢ Accurate estimation and allocation of overhead expenses are essential for

developing realistic project budgets and resource plans. Understanding

overhead requirements helps in forecasting project costs more accurately

and planning resource allocation accordingly.

 3. Risk Management

➢ Overheads can represent a significant risk factor in engineering projects.

Fluctuations in overhead costs, such as unexpected increases in utility

expenses or regulatory compliance costs, can impact project profitability

and viability. Effective risk management strategies are necessary to mitigate

these risks. Failure to account for overhead requirements can lead to cost

overruns, delays, and project failures. By identifying and managing

overhead costs proactively, engineering managers mitigate financial risks

associated with project execution.

In summary, overheads are essential in engineering management as they influence cost

control, budgeting and planning, and risk management. Effective management of overhead costs

is critical for achieving project success, maintaining competitiveness, and maximizing overall

organizational performance. Understanding overhead requirements in engineering management

means grasping all the extra costs beyond direct project tasks, like office rent, administrative

salaries, or equipment maintenance. It's important because these overhead expenses can

significantly impact the project's overall budget and success. By knowing what these costs are and

how they affect the project, managers can plan better, control expenses, and ensure projects stay

on track and within budget.

 LOCATION PLAN

What is location plan?

In engineering management, a location plan is a detailed strategy or document that outlines

the specific site or area where a project will be implemented or a facility will be built. It involves

careful analysis and consideration of various factors related to the geographical location where the

project is planned to take place.

Why is environmental consideration and sustainability important in location plan?

Environmental Considerations and Sustainability:

• The location plan should carefully assess environmental factors such as air and water

quality, soil conditions, ecological habitats, and natural hazards.

• Minimizing environmental impact and ensuring sustainability are increasingly important

considerations in engineering projects.

• Selecting a site with minimal environmental risks helps mitigate potential liabilities,

ensures regulatory compliance, and enhances the project's reputation and acceptance by

stakeholders.

Environmental consideration and sustainability have significant impacts on the location plan in

engineering management in several ways:

1. Site Selection

➢ Environmental factors such as air and water quality, soil conditions, and

presence of sensitive habitats influence the suitability of potential sites for

development. Sites with minimal environmental impact and lower ecological

 sensitivity are preferred to minimize disturbances and preserve natural

resources.

2. Regulatory Compliance

➢ Environmental regulations and permits govern the development of

engineering projects. Environmental assessments and compliance with

regulatory requirements are essential components of the location planning

process. Choosing a site that meets environmental standards helps ensure

regulatory compliance and reduces the risk of costly fines or delays.

3. Resource Management

➢ Sustainable location planning involves optimizing resource use and

minimizing waste generation. Selecting a site with access to renewable energy

sources, efficient water management systems, and sustainable materials can

enhance the project's environmental performance and reduce its carbon

footprint.

Environmental considerations and sustainability play a crucial role in location planning

within engineering management. By carefully assessing factors such as air and water quality, soil

conditions, ecological habitats, and natural hazards, engineering projects can minimize their

environmental impact and ensure long-term sustainability. Selecting a site with minimal

environmental risks not only helps mitigate potential liabilities and ensures regulatory compliance

but also enhances the project's reputation and acceptance by stakeholders.

 Additionally, prioritizing sustainability in location planning promotes responsible resource

management, reduces waste generation, and contributes to overall environmental conservation

efforts, aligning with global efforts to address climate change and create a more sustainable future.

Overall, integrating environmental considerations and sustainability principles into location

planning practices is essential for fostering environmentally responsible development and

achieving positive outcomes for both the project and the surrounding environment.
 BUSINESS AND OPERATION HOURS

What is business and operation hours?

Business and operation hours in engineering management refer to the designated times during

which a firm or department is open for conducting business activities and operational tasks. These

hours typically include periods for administrative functions, client meetings, project planning,

fieldwork, and other project-related activities.

Three important aspects in business and operation hours:

1. Client Communication and Service Delivery

➢ Setting clear engineering and business hours facilitates effective

communication with clients and ensures timely delivery of services. Clients

often have questions, concerns, or requests regarding ongoing projects, and

having established hours helps manage expectations regarding when they can

reach out for assistance or updates. Prompt responses during business hours

contribute to client satisfaction, trust, and retention. Moreover, adhering to

defined engineering hours ensures that project tasks are completed within the

expected timelines, preventing delays and maintaining project momentum.

2. Employee Productivity and Well-being

➢ Engineering and business hours significantly impact employee productivity

and well-being. By providing consistent work schedules, employees can plan

their tasks, meetings, and personal commitments accordingly, leading to

better time management and work-life balance. Clear boundaries around work
 hours also help prevent burnout and fatigue, promoting employee satisfaction

and retention. Additionally, establishing specific engineering hours for

fieldwork or project-related activities enables efficient resource allocation

and coordination among team members, maximizing productivity during

operational periods.

3. Operational Efficiency and Resource Management

➢ Defining engineering and business hours is essential for optimizing

operational efficiency and resource management within an engineering firm.

It allows for effective scheduling of tasks, equipment usage, and staffing

levels based on anticipated workloads and project requirements. By aligning

business hours with peak client demand and project deadlines, firms can

ensure that resources are utilized effectively during operational periods,

minimizing idle time and maximizing output. Moreover, setting clear

boundaries around work hours facilitates better planning and coordination of

project activities, reducing the likelihood of errors, rework, or disruptions in

project workflows.

In summary, engineering and business hours play a critical role in engineering management

by facilitating client communication and service delivery, promoting employee productivity and

well-being, and enhancing operational efficiency and resource management within engineering

firms. By carefully considering these aspects and establishing appropriate hours, firms can

optimize their performance, meet client expectations, and achieve business success.
 Setting clear engineering and business hours is crucial for effective client communication,

employee well-being, and operational efficiency in engineering management. Clearly defined

hours allow clients to know when they can expect assistance, promoting satisfaction and timely

service delivery. For employees, consistent schedules enable better time management and work-

life balance, reducing burnout and boosting productivity. Moreover, aligning hours with project

needs optimizes resource allocation, ensuring efficient use of time and resources for successful

project completion. Overall, establishing clear boundaries around hours benefits both clients and

employees, leading to improved outcomes and client satisfaction in engineering firms.

REFERENCES:

• https://www.linkedin.com/pulse/importance-manpower-planning-construction-project-

debdeep-

majumdar#:~:text=Resource%20Management%3A%20Manpower%20planning%20helps

,project%20is%20completed%20on%20time.

• https://www.investopedia.com/terms/o/overhead.asp#:~:text=The%20costs%20associate

d%20with%20maintaining,%2C%20internet%2C%20and%20phone%20service.

• https://www.scribd.com/presentation/52628096/Chapter-6-Operations-Management

• https://www.designingbuildings.co.uk/wiki/Location_plan#:~:text=A%20location%20pla

n%20provides%20an,Survey%20(or%20similar)%20map.

• https://www.coursehero.com/u/file/70858511/Engineering-Management-Module-

Completepdf/?userType=student
 License, Permits and Regulations

In engineering management, particularly in operations management, licenses, permits, and

regulations are crucial aspects to consider for ensuring compliance, safety, and efficiency in

various industrial activities.

a. Licenses: Licenses are legal permissions granted by authorities that allow individuals or

organizations to engage in certain activities. In industrial operations, licenses may be

required for various purposes such as:

• Operating heavy machinery or equipment.

• Handling hazardous materials.

• Conducting specific types of engineering work.

In engineering management, a license is like a permission slip that allows you or your

company to legally use or operate something. It's kind of like getting the green light to do a specific

task or use a certain technology.

For instance, if your company develops a new software program, you might need a license

to legally sell or distribute it. Without that license, you could get into trouble for using someone

else's work without permission.

Licenses come with rules and conditions. They outline what you can and can't do with the

thing you're licensed for. These rules might include how many times you can use it, who else can

use it, or if you need to pay royalties to the owner.

So, in simple terms, a license in engineering management is a legal document that gives you

the right to use or operate something according to specific rules and conditions.
 b. Permits: Permits are official documents issued by regulatory bodies or local authorities

that grant permission for specific actions or projects. In engineering management, permits

may be needed for:

• Construction projects, including building permits, environmental permits, or

zoning permits.

• Environmental compliance, such as permits for air emissions, wastewater

discharges, or hazardous waste handling.

• Land use and development activities.

Permits are like official permission slips for carrying out certain projects or activities.

Imagine you want to build a new factory. Before you can start construction, you typically need to

get permits from the local government. These permits give you the green light to proceed with

your plans, but they also come with conditions and requirements.

Permits ensure that your project complies with safety standards, zoning laws, and

environmental regulations. They may cover aspects like construction methods, waste disposal, or

noise levels to protect the community and the environment.

Permits are like official permission slips from the government, allowing you to start a project

as long as you follow the rules. If you don't get permits, you could get fined, experience delays, or

face legal trouble for not doing things the right way.
 c. Regulations: Regulations are rules and standards established by governments or regulatory

agencies to govern various aspects of industrial operations. Compliance with regulations is

essential for maintaining safety, protecting the environment, and ensuring ethical business

practices. In engineering management, regulations may include:

• Occupational health and safety regulations governing workplace conditions,

equipment safety, and employee training.

• Environmental regulations addressing pollution control, waste management, and

resource conservation.

• Industry-specific regulations such as those for food safety, pharmaceutical

manufacturing, or nuclear power.

• Quality standards and regulations ensuring product quality, reliability, and

performance.

Imagine you're playing a game with specific rules. These rules keep the game fair and

ensure everyone plays safely. Similarly, regulations in engineering set standards and requirements

to make sure things like buildings, bridges, or machines are safe, efficient, and environmentally

friendly. These regulations come from various sources, like government agencies, industry

standards organizations, or international agreements. They cover things like how structures are

built, how products are manufactured, and how environmental impacts are managed.

For example, if you're designing a new building, you'll need to follow building codes that

dictate things like the materials you can use, the structural integrity requirements, and even fire

safety measures. In simple terms, regulations in engineering management are the guardrails that

help keep projects on track and ensure that they meet certain standards for safety, quality, and

sustainability.
 Operations Budget

In engineering management, particularly in operations management, an operations budget

refers to the financial plan that outlines the expenses associated with running the day-to-day

activities of a business or organization. It is a crucial component of overall financial planning and

management, providing a roadmap for allocating resources to support operational functions

efficiently and effectively.

Operating Expenses: These are the costs incurred in the regular course of business operations.

They can include expenses such as:

• Employee salaries and benefits.

• Utilities (electricity, water, heating, etc.).

• Rent or lease payments for facilities and equipment.

• Maintenance and repair costs for machinery and infrastructure.

• Office supplies and consumables.

• Communication expenses (internet, phone, etc.).

• Travel and transportation costs.

Fixed Asset Expenditure - Refers to the investment on long term assets used in the operations to

produce the product or services. refers to the money spent by a company on acquiring or improving

long-term assets that are essential for its operations and are expected to provide benefits over

multiple accounting periods.

• Examples are the purchase of machines and equipment

Monthly Expenses - Refers to the payment made every month in the operations department.

• Examples are wages for workers and raw materials purchased

Other Expenses - Other expenses refer to expenditures incurred by a business that cannot be

categorized as either fixed asset expenditures or regular monthly expenses. These expenses

typically represent miscellaneous or one-time costs that do not fit into the usual operating expenses

or long-term asset investments of a company.

• Examples are deposits, insurance, repairs and maintenance

 Implementation Schedule

In engineering management, specifically within operations management, an

implementation schedule outlines the timeline and sequence of activities required to execute a plan

or project successfully. It serves as a roadmap for coordinating resources, tasks, and deadlines to

achieve specific objectives efficiently. Here are the key aspects typically included in an

implementation schedule:

1. Task Breakdown: The implementation schedule begins with breaking down the overall

plan or project into smaller, manageable tasks. Each task should be clearly defined and specific,

with assigned responsibilities and deadlines.

2. Sequence of Activities: Tasks are then organized in a logical sequence, considering

dependencies and interrelationships between different activities. Certain tasks may need to be

completed before others can begin, so establishing the correct order is crucial for smooth

execution.

3. Resource Allocation: The schedule should specify the resources required for each task,

including personnel, equipment, materials, and budgetary allocations. Assigning resources

effectively ensures that all necessary inputs are available when needed to avoid delays.

4. Timeline and Milestones: Timeframes are assigned to each task or phase of the project,

setting clear deadlines for completion. Milestones are significant points along the timeline that

mark key achievements or checkpoints, allowing progress to be tracked and evaluated.

5. Critical Path Analysis: In complex projects, identifying the critical path—the sequence

of tasks that determines the shortest possible duration for completing the project—is essential. By

focusing on activities on the critical path, managers can prioritize efforts to minimize overall

project duration.

6. Contingency Planning: Anticipating potential risks and uncertainties, the implementation

schedule should incorporate contingency measures to address unforeseen challenges. This may

involve building extra time buffers into the timeline or developing alternative strategies to mitigate

risks.

7. Communication and Coordination: Effective communication is vital for successful

implementation. The schedule should outline mechanisms for regular updates, reporting, and

coordination among team members, stakeholders, and relevant parties involved in the project.

8. Monitoring and Evaluation: Throughout the implementation process, progress should be

monitored against the schedule to ensure adherence to timelines and milestones. Regular

evaluation helps identify deviations, bottlenecks, or areas needing adjustments, allowing for timely

interventions to keep the project on track.

 4 V’s (Volume, Variety, Variation, Visibility)

1. Volume:

Volume refers to the scale or magnitude of operations within an engineering context. It

encapsulates the quantity of tasks, processes, or products that need to be managed. In engineering

management, dealing with high volume entails challenges in resource allocation, capacity

planning, and ensuring efficiency without compromising quality.

In simple terms, Volume in engineering means how much stuff needs to be handled. It's

like how many tasks, jobs, or products there are to deal with. When there's a lot to handle, it can

be tough to figure out how to use resources wisely, plan for what's needed, and make sure things

are done well.

For instance, in a big factory, if they're making a ton of items, they need to make sure they

have enough materials, space, and workers to keep up. They also need to make sure everything

runs smoothly and efficiently without making mistakes or wasting resources. So, managing high

volume involves making smart decisions to keep things running smoothly and cost-effective

2. Variety:

Variety refers to the diversity or complexity of tasks, processes, or products involved in

engineering operations. It encompasses the range of different elements that need to be managed

within a system. Managing variety involves addressing diverse requirements, specifications, and

customization demands. In engineering management, dealing with variety requires flexibility,

adaptability, and the ability to accommodate diverse needs. For instance, in software development,

managing a variety of programming languages, platforms, and frameworks requires agile

methodologies and modular approaches.

 Basically, Variety in engineering is all about how different and complicated the tasks,

processes, or products are. It's like dealing with a bunch of different things at once. When there's

a lot of variety, it means there's a mix of different stuff to handle, and it can be tricky to manage.

Imagine you're cooking dinner, but instead of just making one dish, you have to make a

whole bunch of different recipes with lots of ingredients. That's like dealing with variety in

engineering. You have to figure out how to handle all these different tasks and requirements.

To manage variety, you need to be flexible and adaptable. It's like being able to switch

gears quickly and handle whatever comes your way. For example, in software development, you

might have to work with different programming languages or technologies. So, you need to be

able to adjust your approach and use different methods to get things done efficiently.

3. Variation:

Variation relates to the degree of fluctuation or variability in engineering processes or

outputs over time. It involves understanding and managing deviations from standard or expected

performance. Variation can arise from factors such as environmental conditions, market demand,

or technological changes. Engineering management strategies for dealing with variation include

statistical process control, predictive analytics, and continuous improvement methodologies like

Six Sigma. For example, in supply chain management, addressing variations in demand, lead

times, and supplier performance is critical for maintaining operational efficiency and meeting

customer expectations.

Variation in engineering is about how things can change or differ over time. It's like how

a recipe might turn out differently depending on factors like the temperature of the oven or the
freshness of the ingredients. In engineering, these changes can affect how well a process works or

how good the final product is.

To manage variation, engineers use strategies like keeping track of data, predicting future

trends, and constantly improving processes. It's like using a weather forecast to plan your activities.

For example, in a factory making cars, they might use statistics to monitor how each car is built

and make adjustments to ensure they all meet the same high standard.

In supply chain management, dealing with variation is crucial because things like customer

demand or supplier reliability can change unpredictably. So, companies use techniques like

analyzing past trends to predict future demand and making sure they have backup plans in case

things don't go as expected.

4. Visibility:

Visibility refers to the transparency or accessibility of information and insights into

engineering operations. It encompasses the ability to monitor, analyze, and communicate relevant

data and performance metrics. Enhanced visibility enables informed decision-making, proactive

problem-solving, and collaboration across teams and stakeholders. Engineering management

initiatives focused on improving visibility may include implementing real-time monitoring

systems, data analytics platforms, and communication tools. For instance, in project management,

enhancing visibility through Gantt charts, dashboards, and progress reports facilitates tracking

milestones, identifying bottlenecks, and coordinating tasks effectively.

 Visibility in engineering is like having a clear view of what's happening in a project. It's

about being able to easily see and understand all the important information and data. When you

have good visibility, it's like having a map that shows you exactly where you are and where you

need to go.

To improve visibility, engineers use tools and systems that help them keep track of

everything. For example, they might use special software that shows them real-time updates on

how a project is progressing. This helps them make better decisions, solve problems quickly, and

work together smoothly with their team.

Imagine you're driving a car at night. Without headlights, it's hard to see the road ahead

and you might miss important turns. But with headlights, you can see clearly and navigate safely.

That's what visibility does in engineering—it helps teams stay on track and reach their goals more

effectively.
REFERENCES:

• https://www.financialexpress.com/opinion/understanding-the-four-vs-of-operations-

management-volume-variety-variation-and-visibility/2231160/

• https://www.investopedia.com/terms/o/operations-management.asp
• https://www.econlib.org/library/Enc/Regulation.html

• https://wisebusinessplans.com/difference-between-permit-and-license/

• https://www.investopedia.com/terms/l/licensee.asp

• https://www.scribd.com/presentation/52628096/Chapter-6-Operations-Management