P1.1 DEFINE ENGINEERING BUSINESS FUNCTIONS.2
P1.2 Outline the Interrelationships Between Different Processes and Functions of an Engineering Organisation.4
P1.3 Organise Work Activities to Meet Specifications and Standards.14
P1.1 DEFINE ENGINEERING BUSINESS FUNCTIONS.
On the whole, businesses can be very clearly defined and categorised using government and business standards. These categories include, but are not limited to: 1. Size- A company can generally be classified using the companies act 2006 as small, medium or large. According to the Office of National Statistics (http://www.bis.gov.uk/files/file51198.pdf) the definitions of small medium and large companies are based on 3 variables- number of employees, turnover and assets. | Small| Medium| Large|
Number of employees| <50| 50 < x < 250| >250| Turnover (£million)| < 5.6| 5.6 < x < 22.8| >22.8| Assets (£million)| < 2.8| 2.8 < x < 11.4| >11.4| 2. Product- manufacturing, service, agricultural.
3. Trading objectives- for profit or non-profit. An example of a not for profit company would be Oxfam, a charitable company. 4. Industrial Sector- primary (agriculture, mining, forestry), secondary (manufacturers), tertiary (service engineers). Some would also argue that a fourth sector now exists involving the technical support of IT equipment (the quaternary sector) 5. Ownership- Sole trader, partnership, private or public limited companies, franchise. 6. Culture- the attitudes, beliefs and values of the company. 7. Structure- how the business is organised- hierarchical, top heavy etc. With the above in mind we can now assess the organisational set up at Vehicle Safety Systems Ltd (VSS). VSS would appear to be a medium sized company with 145 employees however their annual turnover is toward the upper end of the stated medium sized business statistics indicating that the business may be in transition from medium to large. VSS is a manufacturing company placing it firmly within the secondary industrial sector and more specifically, according to the Standard Industrial Classification for Economic Activity 2007 (SIC 2007) VSS falls into section C, sub section 29320. VSS is a privately owned limited company meaning they can sue, or be sued, on their own contracts as they are seen as a separate legal entity. Gaining funds as a Ltd company is fairly difficult as money has to be raised using business loans, overdrafts and personal savings whereas VSS’ parent company Atlantic Research Group PLC (ARG) are a public limited company meaning raising capital is much easier as shares can be offered for sale on the stock market. As much as the previous comment is an advantage, it is equally a disadvantage as this means that the holding company can be easily taken over by somebody purchasing enough shares to become majority shareholder. Assumptions can be made about the culture at VSS from the information we have been given but without more details assumption would be as specific as we could be. VSS was once owned by a sole trader in the form of Mr David Pegg, who later invited his 2 sons to join him on his business journey. We can assume from this that whilst the founder of the company was still involved in the business that the culture at VSS would have been very family orientated. I believe this to be an advantage to VSS from a customer point of view as family run businesses are thought to carry a level of pride and personalisation of their services due to the emotional relationship between the shareholders and the company. This family business style culture can also be a disadvantage as family feuds can cause problems within the business and I think we would be right to assume that this may have happened at VSS due to David Pegg’s majority share holding being offered to the other family members but then ultimately...