ENTREPRENEURSHIP & ENGINEERING

MANAGEMENT

18 – Mechanical Engineering

Department of Mechanical Engineering 1

A: INDUSTRIAL ENGINEERING AND MANAGEMENT: Industrial
competitiveness and significance for industrial productivity. Industrial
Setup and Layout. Types of Production. Process Design. Material
Handling. Industrial operations and their management. Production
planning and control. Inventory Control and Management. Quality
Control and Management.

B: ENGINEERING ECONOMY: Basic economic concepts and

principles. GNP and GDP. Supply and Demand. Circular flow of
money. Cost and its various types. Cost estimation techniques. Time
value of money. Laws of return (The present worth method, the
future worth method, the internal rate of return, payback period
method). Break even analysis. Engineering economic analysis.
Depreciation and its calculation.

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C: ENTREPRENEURSHIP
Introduction to entrepreneurship: meaning and concept of
entrepreneurship. Economic and social perspectives of
entrepreneurship. Role and importance of entrepreneurship.
Entrepreneurship in services sector. Entrepreneurial mindset. Forms
of enterprise. Social and ethical responsibilities.
Entrepreneurial Process: competing models of entrepreneurship.
Developing and screening ideas. Identifying and evaluating
opportunities. Business Plan. Business plan v/s Business Model.
Entrepreneurial Finance: financial objectives of entrepreneurial
ventures. Sources of funding for new ventures. Debit financing.
Equity financing.
Entrepreneurial Marketing: Marketing research. Marketing Plan.
Marketing strategies. Product marketing v/s Services marketing.
Product and service quality.

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 BOOKS
• Willium J. Stevenson “Operations
Management” McGraw Hill, Latest Edition.
• Degarmo E. Paul, “Engineering Economy”
Pearson, Latest Edition.
• Robert Hisrich, Michael Peters & Dean
Shepherd , ‘Entrepreneurship’ McGraw Hill,
latest edition

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 INTRODUCTION
• Operations is that part of a business organization that is responsible for
producing goods and/or services.
• Goods are physical items that include raw materials, parts, subassemblies
such as motherboards that go into computers, and final products such as
cell phones and automobiles.
• Services are activities that provide some combination of time, location,
form, or psychological value.
• Examples of goods and services are found all around you. Every book you
read, every video you watch, every e-mail or text message you send,
every telephone conversation you have, and every medical treatment
you receive involves the operations function of one or more
organizations. So does everything you wear, eat, travel in, sit on, and
access the Internet with.
• The operations function in business can also be viewed from a more far-
reaching perspective: The collective success or failure of companies’
operations functions has an impact on the ability of a nation to compete
with other nations, and on the nation’s economy.
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• The ideal situation for a business organization is to achieve an economic
match of supply and demand. Having excess supply or excess capacity is
wasteful and costly; having too little means lost opportunity and possible
customer dissatisfaction.
• The key functions on the supply side are operations and supply chains, and
sales and marketing on the demand side.
• While the operations function is responsible for producing products
and/or delivering services, it needs the support and input from other
areas of the organization.
• Business organizations have three basic functional areas, as depicted in
Figure : finance, marketing, and operations. It doesn’t matter whether the
business is a retail store, a hospital, a manufacturing firm, a car wash, or
some other type of business; all business organizations have these three
basic functions.

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• Finance is responsible for securing financial resources at favorable
prices and allocating those resources throughout the organization,
as well as budgeting, analyzing investment proposals, and
providing funds for operations. Marketing is responsible for
assessing consumer wants and needs and selling and promoting
the organization’s goods or services.
• Operations is responsible for producing the goods or providing the
services offered by the organization.
• To put this into perspective, if a business organization were a car,
operations would be its engine. And just as the engine is the core
of what a car does, in a business organization, operations is the
core of what the organization does.
• Operations management is responsible for managing that core.
Hence, operations management is the management of systems or
processes that create goods and/or provide services.

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• Operations and supply chains are intrinsically linked, and no
business organization could exist without both. A supply chain is
the sequence of organizations—their facilities, functions, and
activities—that are involved in producing and delivering a product
or service. The sequence begins with basic suppliers of raw
materials and extends all the way to the final customer, as seen in
Figure.

• Facilities might include warehouses, factories, processing centers,

offices, distribution centers, and retail outlets. Functions and
activities include forecasting, purchasing, inventory management,
information management, quality assurance, scheduling,
production, distribution, delivery, and customer service.
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• Figure provides another illustration of a supply chain: a chain that
begins with wheat growing on a farm and ends with a customer
buying a loaf of bread in a supermarket. Note that the value of the
product increases as it moves through the supply chain.

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 Activity
• Automobile manufacturing/assembly plant
• Refrigerator / Air conditioning manufacturing plant
• Pharma (Medicine) production plant
• Pipe manufacturing plant
• Any other …

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• Supply chains are both external and internal to the organization.
The external parts of a supply chain provide raw materials, parts,
equipment, supplies, and/or other inputs to the organization, and
they deliver outputs that are goods to the organization’s
customers.
• The internal parts of a supply chain are part of the operations
function itself, supplying operations with parts and materials,
performing work on products, and/or performing services.
• The creation of goods or services involves transforming or
converting inputs into outputs. Various inputs such as capital,
labor, and information are used to create goods or services using
one or more transformation processes (e.g., storing, transporting,
repairing).
• To ensure that the desired outputs are obtained, an organization
takes measurements at various points in the transformation
process ( feedback ) and then compares them with previously
established standards to determine whether corrective action is
needed ( control ).
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• Figure depicts the conversion system.

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• Some examples of inputs, transformation processes, and outputs.

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• It is also important to note that goods and services often occur jointly. For
example, having the oil changed in your car is a service, but the oil that is
delivered is a good. Similarly, house painting is a service, but the paint is a good.
• The goods–service combination is a continuum. It can range from primarily
goods, with little service, to primarily service, with few goods. Figure illustrates
this continuum. Because there are relatively few pure goods or pure services,
companies usually sell product packages, which are a combination of goods and
services. There are elements of both goods production and service delivery in
these product packages. This makes managing operations more interesting, and
also more challenging.

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• Identify the similarities and differences between production and
service operations
• Typical differences between production of goods and provision
of services
• The importance of learning about operations management.

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 THE SCOPE OF OPERATIONS MANAGEMENT

• The scope of operations management ranges across the organization.

Operations management people are involved in product and service design,
process selection, selection and management of technology, design of work
systems, location planning, facilities planning, and quality improvement of the
organization’s products or services.
• The operations function includes many interrelated activities, such as
forecasting, capacity planning, scheduling, managing inventories, assuring
quality, motivating employees, deciding where to locate facilities, and more.

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Explain the key aspects of operations management decision making
• The chief role of an operations manager is that of planner/decision maker. In
this capacity, the operations manager exerts considerable influence over the
degree to which the goals and objectives of the organization are realized.
Most decisions involve many possible alternatives that can have quite
different impacts on costs or profits.
• Consequently, it is important to make informed decisions.
• Operations management professionals make a number of key decisions that
affect the entire organization. These include the following:
• What: What resources will be needed, and in what amounts?
• When: When will each resource be needed? When should the work be
scheduled? When should materials and other supplies be ordered? When is
corrective action needed?
• Where: Where will the work be done?
• How: How will the product or service be designed? How will the work be done
(organization, methods, equipment)? How will resources be allocated?
• Who: Who will do the work?
• An operations manager’s daily concerns include costs (budget), quality, and
schedules (time).
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 Describe current issues in business that impact operations management
There are a number of issues that are high priorities of many business organizations. Although
not every business is faced with these issues, many are. Chief among the issues are the
following:
Economic conditions: The lingering recession and slow recovery in various sectors of the
economy has made managers cautious about investment and rehiring workers who had been
laid off during the recession.
Innovating: Finding new or improved products or services are only two of the many
possibilities that can provide value to an organization. Innovations can be made in processes,
the use of the Internet, or the supply chain that reduce costs, increase productivity, expand
markets, or improve customer service.
Quality problems: The numerous operations failures mentioned at the beginning of the
chapter underscore the need to improve the way operations are managed. That relates to
product design and testing, oversight of suppliers, risk assessment, and timely response to
potential problems.
Risk management: The need for managing risk is underscored by recent events that include
the crisis in housing, product recalls, oil spills, and natural and man-made disasters, and
economic ups and downs. Managing risks starts with identifying risks, assessing vulnerability
and potential damage (liability costs, reputation, demand), and taking steps to reduce or
share risks.
Competing in a global economy. Low labor costs in third-world countries have
increased pressure to reduce labor costs. Companies must carefully weigh their options,
which include outsourcing some or all of their operations to low-wage areas, reducing costs
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internally, changing designs, and working to improve productivity.
THANKYOU

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