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Faculty of Engineering

Assignment Cover Sheet


for submission of individual and group work

Module code Assignment Assignment Group/Session name (if applicable)


number due date
EAT 340 1 17\5\2018 Group 1
Module name Program title
Professional Engineering Management Technique Engineering
Lecturer name Tutor / Marker’s name (if applicable)
Mr. Alex

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Family name Given name UOS number Student signature Date


Abdul Aziz 159116162 16/5/2018
Sharifah Nurul
Malai Hj Hamidon 149134907 16/5/2018
Safiqa
AbuBacker 159054668 16/5/2018
Al- Areqi Tariq 159138278 16/5/2018
Moosa Hassan Fariu 159031821 16/5/2018
Kam Zhon Wai 169044600 16/5/2018

Further information relating to the penalties for plagiarism, which range from a notation on your student file to expulsion
from the University, is contained in UOS and SEGi Handbook.

Assessor’s comments Grade School date stamp

(Office use only)


Telly World Report

Name Role
Abdul Aziz Finance Manager
Tariq Al-Areqi Manufacturing Manager
Abu Backer HR Manager
Sharifah Nurul Shafiqah Maintenance Manager
Hassan Moosa Marketing Manager

Kam Zhon Wai Project Manager


MARKETING MANAGER

Since this time, we do not want our competition to get the edge and get a hold of the 8k
resolution tv market, we are going to be using very aggressive tactics to ensure our product
will meet the customers demand. We are going to be taking advantage of the mass marketing
strategy, it is a strategy that focuses on high sale at low prices.

This is a very common strategies used for TV marketing as it allows the manufacturer to
reach a large audience and the strategies has proven to be very effective for the particular
segment which we are going to be focusing on. To ensure that this marketing strategy works,
we are going to be making the target demographic as wide as possible. We are going to be
releasing TVs for every segment of the target demographic.

First to release products for the target demographic we needed to conduct a proper market
research. Whilst researching the market we used two of the conventional approaches, the
PEST and SWOT analysis. With the PEST analysis we were able to understand the needs of
the demographic we are aiming for, in this analysis we learned that there are 2 main tiers of
products we can focus on to conquer the target demographic. A high-end tier and mid-end
tier. Next with the SWOT analysis we learned that what features each tier of product needed.
Using the market research we went on release our products.

First, we are going to be releasing the TVs for the high-end segment with the best features
and big screens. This will allow us to create an image among the people that we are a
company with high-end products and not a cheap name company. For the high-end products
the pricing will be higher than our other products but it still will be relatively lower than the
competitions price at same segment. Even though we are going to be making high end
products we will mostly be focusing on the mid-tier segment.
This is key segment for us, as most consumers will be in this tier so the demand for our
product will be considerably higher than the high-end segment. Therefore, this is the tier we
will need to focus on more. For the mid-tier we will be releasing TVs with adequate features,
features most consumer wants combined with different screen sizes
If we use this approach our marketing team is expecting huge market gains, which in turns
directly correlates to high profit. Hence, we are expecting a very high sales forecast.

References
- Bhasin, H. (2017, December 16). Mass marketing definition and explanation with
examples.
- Jeffrey, B. &. (2013, October 10). 52 Types of Marketing Strategies.
- Tseng, F.M., Cheng, A.C. and Peng, Y.N., 2009. Assessing market penetration
combining scenarioanalysis, Delphi, and the technological substitution model: the
case of the OLED TV market. Technological Forecasting and Social Change, 76(7),
pp.897-909.
- Chiu, Y.J., Chen, H.C., Tzeng, G.H. and Shyu, J.Z., 2006. Marketing strategy based
on customer behaviour for the LCD-TV. International journal of management and
decision making, 7(2-3), pp.143-165.
- Gawlinski, M., 2013. Interactive television production. Focal Press.
MANUFACTURING MANAGER
The impact of the led tv
- Environment: the led mainly known as less power consumption.
- Cost: the price too high but compare to it features it is reasonable
- Customer service: led tv serve the customer demands specially the
youngster or gamers because the higher the resolution he better.
- Quality: the quality of led is better than the lcd since the led is using
smaller, more efficient light emitting diodes to illuminate screen.

The most suitable production process is Mass process due to:


- Dedicated special types of machines which have high production output
- Large volume of products
- Balanced production lines
- The process flow in one direction without backtracking
Advantages
- Less skilled operators are required
- Low process inventory
- Manufacturing cost per unit is low
Disadvantages
- Break down of one machine may stop the whole production process

The suitable layout for mass production process (led tv) is Product layout
Product layout or known as assembly lines, production activities in a line which depends on
the flow type of the operations that need work to assemble a certain product. Each component
has it own line which has specific design to meet its customers requirements. The flow of the
process is organized and moving from one workstation to another down the assembly line
until the final product is ready. Since the process is set up for led tv, there should be a special
machines can be purchased to match tv specific processing requirements. Workers preform
assembly tasks that do not demand high wage rate.
Advantages
- Efficiency and easy to use
Disadvantage
- Inflexibility
Changes in product design it might require a new assembly line to build and new equipment
to purchase.

Product layout needs material to move in one direction along the assembly line and same
manner.
Storage in the assembly line is very small because in process inventory is used in the
assembly of the led tv as it moves in the assembly line. Final product, however, may need a
separate warehouse for storage they shipping it to the dealers.

To bring a new contractor there is a certain procedure it should be done


a- A contract: to bring an outside contractor it starts with contracts, the
contract should include the policies the contractor should follow, which is depends on
the company the contractors are signing to, from this step the contractor will
understand the relationship, making it clear that there are rules that may not let them
wonder freely and will be someone there to supervise them and follow their work.

b- Written provision:
- Background checks: to check on the contractor background, reports, good
conduct to see if he’s suitable for the job or not. Also, to check the certification or
license for the maintenance and technicians and other skills.
- Uniforms: to identifies what type contractor are they.
- Identification badges: to let the contractor gain the access to the building.
Requires picture to identify the contractor.
- Service entrance: each contractor has his/her own specified side entrances.
- Key management: a biometric fingerprint that will show to the system each
contractor who are present, absent, on time or late.

The new operators will be trained for 3 to 4 months maximum cause the job require less
skilled operators, for the new operators
- safety orientation and basic training will be provided before they start
working
- Each one will be trained for specific task ex: insert the connecting cable
and mounting the shield plate.
- Supervision and ongoing training will be provided to the operators so they
can work more safely.
The best method to be followed in this operation is JIT (just in time). The aim of this method
is to meet customers demand with perfect quality and eliminate the waste. The manufacturing
process will start when there is an order for the product (led tv), from this method it will
prevent over production, inventory high usage, making defective products.
There is method two control the operation which is push and pull
- Push is when you push the product forward into a continuous production
with assuming the sales will follow.
- Pull is when the production starts when there a demand on a specific
quantity, this method is related to JIT, if the customer didn’t pass down a request the
supplier cannot produce anything or move anything, a demand from a customer not
only moves the production stages but also induce the production stage to demand
further delivery from its own suppliers.

The consequences of push and pull to the inventory


- Push: in push method any delay or a problem at the stage there will be
accumulating in the inventory.
- Pull: in pull method the components can flow forward unless its finished
the stage, under this way the inventory cannot accumulate easily.
References:
1. Das, S.K., 1993. A facility layout method for flexible manufacturing
systems. THE INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH, 31(2),
pp.279-297.

2. Swink, M., Narasimhan, R. and Wang, C., 2007. Managing


beyond the factory walls: effects of four types of strategic
integration on manufacturing plant performance. Journal of
Operations Management, 25(1), pp.148-164.

FAINACE MANAGER
In today’s environment, markets, products, technologies and customer demand change
rapidly, and an increased number of companies are competing for market share. The most
important points of bringing a new product to the market is the profit margin and customer
attraction. The financial implications of bringing a new product to market is significant. The
labour costs, manufacturing, marketing and advertisement etc are just some costs that need to
be evaluated against the profit margin.
Currently the sales of 1080p TV’s are quite significant and the profit is also very
reasonable. Up to 21000 units are sold per month and revenue of up to £2,000,000. The
problem with current production line is the number of units sold against the return of
investment. A sale of at least 21000 units must be made per month to maintain the revenue.
With the new product line i.e. LED TV’s, the production according to the sales forecast is
only 12000 units to achieve the profit, and with inflation and price increases the profit will be
higher each year. The estimated cost of the start-up and production line is
approximately £43 million. The NPV is indicated in the following table.

Year Project Cash Flow Discount Factor Present Value


0 - £42956000 1 £42956000
1 £22140000 0.9091 £20127474
2 £24240000 0.8264 £20031936
3 £24240000 0.7513 £18211512
NPV= £15414922

We can see from the above table, launching the new product is very profitable after the first 2
years and can generate up to £15 million in profit. According to the data above we can see
that this project is viable financially and very profitable.
The current production of LCD’s will be affected dramatically and will see a decrease in
sales on yearly basis because of customer interest in the new product, but that will be covered
by the new production line.

References

- Damodaran, A., 1996. Corporate finance. Wiley.

- Saunders, A. and Thomas, H., 1997. Financial institutions management. Boston:


Irwin.

- Eaton, T.V. and Nofsinger, J.R., 2000. The new and relocating finance faculty market:
Factors affecting job selection. Financial Practice and Education, 10, pp.99-110.

- Dang, T.V., Gorton, G. and Holmström, B., 2012. Ignorance, debt and financial
crises. Yale University and Massachusetts Institute of Technology, working paper, 17.
- Kwon, S.S., 2002. Financial analysts' forecast accuracy and dispersion: High-tech
versus low-tech stocks. Review of Quantitative Finance and Accounting, 19(1), pp.65-
91.

- Cooper, R.G. and Kleinschmidt, E.J., 1995. Benchmarking the firm's critical success
factors in new product development. Journal of product innovation
management, 12(5), pp.374-391.

MAINTENANCE MANAGER

There are five type of maintenance that has to be followed to carried out on the machines and
equipment which are :
- Corrective maintenance: Task to correct the defects to be found in the different
equipment
- Preventive Maintenance: To inspect the equipment even it has no symptom of
having a problem
- Predictive Maintenance: It is to identify physical variables, where it has problem
that may appear on the equipment.
- Zero Hours Maintenance (Overhaul): To review the schedule of the equipment
before appearing any failure.
- Periodic maintenance (Time Based Maintenance TBM): It is the basic equipment
maintenance that requires a series of elementary task for the equipment.

As given the distance from the Project Operation to maintenances facilities are taking too
much time, a computerize maintenance management software is suitable for planning and
process to reduce the non-productive time activity. All the reports for faults
and maintenance has to be recorded as soon as possible in maintenance and repair record,
which includes the maintenance done in-house team, the vendors and service agents. The
information that has to be include in the record is the date, the reference number, what and
who did the works and the next maintenance date. This record must be done so that the spare
part that they have used can be ordered.
In order to ensure the personnel operators and craftsmen safety there will need an Healthy
and Safety (HSE) requirement, where Provision and Use of Work Equipment Regulations
(PUWER) can be implement. This regulation requires them to use the suitable equipment for
them to use. It has to be safe, fully maintained and ensure it is correctly installed. The
regulations also require that the equipment used are only use by the people who have trained,
equipment that is accompanied by suitable health and safety measures, and equipment that is
used in accordance with specific requirements.

References :
- Kidd,Andy (20 Ovtober 2016) Available at: http://www.hse.gov.uk/work-equipment-
machinery/puwer.htm

- John D. Szwedo (no date) Available


at: https://www.wwoa.org/files/publishedpapers/2012/Conference/Session%20B1%20
Preventive,%20Predictive,%20and%20Corrective%20Maintenance.pdf

HUMAN RESOURCE MANAGER

To meet the requirement of new product in the market new employees must be hire that meet
up the standard for building up new product
First of all the education, skills and experience will matter for which company have to
arrange an interview panel to select a team for their project. After the selection of right
employees one must have to introduce them with the project they want to work on and the
results they desire for from the employees at inauguration it makes easy for employees to get
their points and environment behavior of company they need some time to get adjust for
which the best way is training for few days so they will be aware of everything in their
working place which makes ease for employees to give their best for new launch.

Employees must be arranged in such a manner that new and selected previous employees
which are only for working on a new product must be only concentrating on specific regular
tasks for new launch no other burden shall be on their back .to keep the employees motivated
some sort of rewards must be introduce on every completion of meet up requirement from
company for every step making them close for the completion of new product.

In a case manager feels hurdle he must talk to his employees and his focus should be on
solution which can help him to remove the problem in short time. in process of training of
new employees or previous selected ones should give them clear points what company wants
from them complete information about time, product, tools, tasks, individual work and team
work . working in a specific manner is not giving required results the management can
change the strategy to achieve the goal the option of being flexible must always be there to
make the work easy.one must meet up the requirement of company by working on their task
if company is not satisfied with performance of individual or team they can replace them
anytime.

For assistance of employees the work must be distributed in such a way that they can give
their best to company and have balanced personal life too. The works must give employees a
sort of interest and enjoy from which they can learn and grow as an individual and employee
too and keep them focused on product.
References:
- Geroy, G.D., Wright, P.C. and Jacoby, L., 2000. Toward a conceptual framework of
employee volunteerism: An aid for the human resource manager. Management
Decision, 38(4), pp.280-287.
- Arthur, J.B., 1994. Effects of human resource systems on manufacturing performance
and turnover. Academy of Management journal, 37(3), pp.670-687.
- Hendry, C., 2012. Human resource management. Routledge.
- Foster, E.C., 2014. Human resource management. In Software Engineering (pp. 253-
269). Apress, Berkeley, CA.
- Schuler, R.S. and MacMillan, I.C., 1984. Gaining competitive advantage through
human resource management practices. Human Resource Management, 23(3), pp.241-
255.
- Huselid, M.A., 1995. The impact of human resource management practices on
turnover, productivity, and corporate financial performance. Academy of management
journal, 38(3), pp.635-672.

ELECTRICAL AND MECHANICAL PROJECT ENGINEERS

As this expansion project is expected to be going on for at least 1 year time and it is located
right next to the current factory, the main concern in this period of expansion is the safety and
the stability of the of the current production. Many contractors and heavy machinery will be
going in and out of the factory thus a specific line of path for the contractors had to be dotted
down and marked.

In addition, the current on-going production should not be interrupted in any way especially
the electrical power. Management should request contractors to use generators or apply for
temporary energy supply for the expansion works. The whole project shall be controlled and
managed by using gathered information and analysis of information and comparison of actual
progress and performance with the baseline documents of the project plan.

Progressive meetings shall be held for every 2 days with the contractors and relevant
managers to identify and fix any problem that is occurred during the expansion period. This
will avoid unwanted delay for this project. During the planning stage for the project life cycle
phase, a study shall be on the on the required standards to achieve ISO manufacturing
standards and the project managers will have to be specific to the contractors during
execution phase.

The engineering will ensure the process is delivered on time by implementing 1 line of
production first and running test before starting the second line of production. This will
enable managers to identify the mistake and problem that is unexpected and discuss will
management on the efficiency.

Reference

Jsm.gov.my. (2018). MS ISO 9001: 2015 – Quality Management Systems - JSM Portal.
[online] Available at: http://www.jsm.gov.my/ms-iso-9001#.WvxKTYiFNPY [Accessed 16
May 2018].