UNDERSTANDING A COMPANY FOR

INDUSTRIAL ENGINEERING STUDENT.

 PHILIPPINE MAIN INDUSTRIES

• Electronics • Textiles
• Aerospace • Garments
• Business Process • Metals
Outsourcing • Petroleum Refining
• Food • Agriculture
Manufacturing
• Shipbuilding
• Chemicals
TYPICAL COMPANY STRUCTURE.
 ACCOUNTING.

• Financial Statement
– Are formal records of the financial activities of a business.
 ACCOUNTING.

• Income Statement
– This will summarize the revenues and expenses generated by the business
– This will show you how much you earn or loss.

• Total Sales Less Cost of Goods Sold.

Revenues

• Total Operating Expenses

Expenses

• Difference of Total Sales Less of Goods

Profit / Loss Sold and Total Expenses
 ACCOUNTING.

• Balance Sheet
– A statement of the assets, liabilities, and capital of a business.

CASH. ACCOUNTS CAPITAL.

LIABILITIES
ASSETS

EQUITY
INVENTORIES. PAYABLES. EARNINGS.
ACCOUNTS BANK LOANS.
RECEIVABLES.
TOTAL SUM OF EQUITY
TOTAL ASSETS LIABILITIES CAPITAL AND
EARNINGS.
 ACCOUNTING.

• Cash Flow
– Contains information on how much cash a company is generated and spent.

1. OPERATING CASH FLOW

Cash from operation = Earnings + Depreciation and
Amortization – Changes in Working Capital

2. INVESTING CASH FLOW

This is the total amount of cash provided by investing
activities.

3. FINANCING CASH FLOW

Net cash provided by financing activities.
 OPERATION MANAGEMENT

• Operation Management is responsible for managing the process of goods and services. It
involves, planning, organizing, coordinating, and controlling all the resources needed to
produce a company’s goods or services.

OPERATION AND LOGISTICS

PURCHASING WHSE DEPT. – WHSE DEPT. - PLANNING

QC DEPT.
DEPT. RAW MATS FG DEPT.
 OPERATION MANAGEMENT

• Purchasing.
– The Company’s activity of acquiring goods or services to accomplish the goals of the organization.
• Objective:
– Maintain the quality and value of a company’s product.
– Minimize cash tied up in inventory.
– Maintain the flow of inputs to maintain the flow of outputs.
– Strengthen the organization competitive position.
 OPERATION MANAGEMENT

• WAREHOUSING (FG / Raw Mat’ls)

– The Company’s activity of storing goods or materials that will be sold or distributed.
• Objective:
– Systematically organized the storage and distribution of goods or materials..
– Minimize the stock inventory.
 OPERATION MANAGEMENT

• Quality Assurance / Quality Control

– Responsible in ensuring the quality of a service or product.

• Principle:
– Fit for purpose (the product should be suitable for the intended purpose).
– Right first time (mistakes should be eliminated).

• Basic Models use in Addressing Quality Issues.

– DMAIC – Define , Measure, Analyze, Improve and Control
– Act, Plan, Do, Check
– Fish Bone Diagram
 PRODUCTION PLANNING AND CONTROL

• Production planning and control address a fundamental problem of low productivity, inventory
management, and resource utilization.
• Production planning team is required to achieved production target, optimum utilization of
resources (manpower, machine and mat’ls) and cost effective production.

CHECK
AVAILABILITY OF
IDENTIFY RESOURCES
CONFORM AND ESTABLISH TARGET PRODUCTION COST NEEDED MONITOR AND ESTABLISH STUDY
SCHEDULING. OUTPUT AND ESTIMATED OBSERVE. REPORT.
PROFIT
MAN / MACHINE /
MATERIALS
 PRODUCTION PLANNING AND CONTROL

• Scheduling
– Production Schedules are very significant in the work place. It helps people to have direction on how they will plan the
production.

– Key indicators for a Good Production Schedule

1. PO No. was showed (Reference No.)

2. Items (Color, Sizes, Unit) and Quantity are stated clearly.
3. Target Output and Shipment Date are highlighted.

• Target Output - TMS

– Target Output is vital for the management side. It will able to help the management if the production is profitable.

– Target Output can be dictate by;

1. Shipment Date
2. History
3. Time and Motion Study.
 PRODUCTION PLANNING AND CONTROL

• Production Cost / Profit

– Identifying Production Cost and Profit helps improve the profitability and your decision making respectively.

Costing (B.O.M)
- Material Cost
- Labor Cost
- Shipment Cost
- Profit

• Man, Machine and Material Availability

– It is important to check the availability of all needed resources to avoid loss in production.

– Methods and Principles

1. First in First Out

2. Kaizen – Just in Time
3. Manpower and Machine Layout
 SALES AND MARKETING

• Sales and Marketing Sales include operations and activities involved in promoting and selling
goods or services.
• Marketing includes the process or technique of promoting, selling and distributing a product
or service.

MARKETING FOCUS AND SKILLS SALES

POSITIONING GOAL REVENUE

STRATEGIC THINGKING STYLE TACTICAL

TECHNICAL KNOWLEDGE EXECUTION

BRAND AFFINITY CUSTOMERS

 I.E. MUST UNDERSTAND.

• Good Character and Right Attitude is vital in working to a group of people.

– Commitment; learn the value of committing yourself.
– Discipline; once you have decided, never look back.
– Self-Humility; understanding humbleness attracts learning.

• Data and SOP’s are the heart and brain of any manufacturing firm.
– Establishing Data Monitoring and SOP’s must have Controls.

• Purchasing, Warehousing and Material Handling is a Key to Success.

– Purchasing; understanding the Economical Order Quantity.
• Other than planning and scheduling, it is a must to consider the Quality, MOQ’s, Shipping Fee’s, and Mode of
Payments.
– Warehousing; understanding Material Requirement Planning.
• MRP is important to maximize your Production. It helps you to avoid increasing Production Cost.
– Material Handling; understanding the importance of Safe Handling.
• Safe handling, Scheduling and Location plan are the most integral part of material handling.

• Ergonomics helps you to have a good relationship with your people.

– Ergonomically working standards must establish in any kind of manufacturing firm.

• Sales and Marketing helps you expand your business.

THANK YOU!