Business Systems for Technicians

Business Systems for Technicians

This unit is designed to provide you with an introduction to the business and commercial aspects of engineering. It aims to broaden and deepen your understanding of business, industry and the effects of engineering on the environment. It also aims to provide you with a firm foundation for employment in the engineering industry together with an understanding of the financial, legal, social and environmental constraints within which an engineering company operates.

When you have completed this unit you will understand how an engineering company is organized and you will be aware of the external factors and the economic environment in which it operates. You will also have an understanding of the impact of relevant legislation and the effect of environmental and social constraints on its operation.

To help you understand more about the financial aspects of running an engineering business, you will be introduced to the techniques used in the costing of an engineering operation including those that will tell you whether a business is operating at a profit or a loss.

This unit is assessed through a series of assignments and case studies, and it has strong links with the core units Communications for Technicians (Unit 2) and Engineering Project (Unit 3). Wherever possible, you should apply the techniques that you have developed in the communications unit to work that you undertake in this unit. There are also links to several of the optional units including Quality Assurance and Control and Production Planning and Scheduling.

Case studies (based on real or invented engineering companies) are an important part of this unit. When you carry out a case study you will be presented with sample data to analyse. You might find it useful to relate your experience of employment or work experience periods in industry to the case study as well as to work covered elsewhere in the unit.

Engineering Companies

All engineering companies must operate as commercial enterprises in order to survive. In this section you will look at how an engineering company operates. You will learn about the various sectors in which engineering companies operate and the functions that are performed within a typical engineering company, such as research and development (R&D), design and manufacture. You will also learn about the various types of organization and how they differ. You will also gain an insight into how information flows within an engineering company. This section is important not only because it sets the scene for the sections that follow but also because it will help you to understand your eventual role within an engineering company. We start by looking at the areas within which engineering companies operate: we call these `engineering sectors'.

Engineering sectors

Some of the engineering sectors, engineered products and engineering companies with which you are probably familiar include:

Chemical engineering            Fertilizers, pharmaceuticals, plastics, petrol, etc. Companies in this field include Fisons, Glaxo, ICI and British Petroleum.

Mechanical engineering        Bearings, agricultural machinery, gas turbines, machine tools and the like from companies such as RHP, GKN and Rolls-Royce.

Electrical and electronic         Electric generators and motors, consumer       electronic engineering                                                    equipment (radio, TV, audio and video), power cables,         computers, etc. produced by companies such as GEC,   BICC and ICL.

Civil engineering                     Concrete bridges and flyovers, docks, factories, power stations, dams, etc. from companies like Bovis, Wimpey and Balfour-Beatty.

Aerospace engineering          Passenger and military aircraft, satellites, space vehicles, missiles, etc. from companies such as British Aerospace, Westland and Rolls-Royce.

Telecommunications              Telephone and radio communication, data communications equipment, etc. from companies such as Nokia, GEC, Plessey and British Telecom.

Motor vehicle engineering     Cars, commercial vehicles (lorries and vans), motorcycles, tractors and specialized vehicles from companies such as Rover, Vauxhall UK and McLaren.

As you work through this unit, it will help you to put things into context by relating the topics to those engineering companies with which you are familiar. This will give you an appreciation of the factors that affect their operation as well as the constraints under which they operate.

Some companies operate within more than one sector. For example, a company may produce products and provide services in both the electronic engineering and telecommunications sectors. Other companies may be active in one sector only and their products and services may only relate to that sector.

Test your knowledge 1.1

An engineering company specializes in the design and manufacture of wind generators. In which two sectors of engineering does this company operate?

Activity 1.1

Identify the sector(s) in which each of the following engineering companies operate:

1. Perkins (http://www.perkins.com)

2. Thales Group (http: //www. thalesgroup. com)

3. Dean and Dyball (http://www.deandyball.co.uk)

4. RPS Group (http://www.rpsgroup.com)

5. Bayer-Wood Technologies (http://www.bayer-wood.co.uk)

6. Smiths Group (http://www.smiths -group. com)

Activity 1.2

Identify three engineering companies in your area that are active in three different engineering sectors. For each company, identify the range of products or services that it supplies and the nature of its business (e.g., manufacturing, maintenance, design, etc.). Present your work in the form of a data sheet for each company and include full company name, address and website.