Task 1
A UK manufacturing company supplies most of its product to the USA and has negotiated regular deliveries over a 10-year period. The contract was signed 5 years ago, with the product being priced in sterling (£) and with an agreed price uplift each year equivalent to the average of the USA and UK inflation rates.
i. Explain the impact on the business the as oil price per barrel has gone up as a result of recent conflict between the US and Iran.
ii. At the time the exchange rate was $1.5 to a pound, the US customer has asked for a price review. Explain why they want this and effect it might have on the profitability on the UK business. P4
In 2009, the Chinese economy had a positive balance of payments and was able to build up large reserves in the bank. To take advantage of the lower cost base, many UK companies relocated their manufacturing facilities to China while maintaining design and support services in the UK and EU.
i. Explain why is a Chinese company able to produce manufactured parts more cheaply than in the West while still maintaining quality?
ii. Explain the external and economic factors that might derail the Chinese engineering company’s manufacturing success? P4
Checklist of evidence required P4
Criteria covered by this task:
Unit/Criteria reference To achieve the criteria you must show that you are able to:
Uni1 7/LO2 explain how external factors and the economic environment affect the way in which an engineering company operates
Task 2
A workshop technician is using a lathe machine which has only recently been installed and commissioned by its manufacturer. Whiling setting up the tooling, the machine starts up without warning and the technician suffers a serious injury to both hands. A nearby worker cuts power supply to machine and summons a first aider. The technician is taken to hospital and will be off work several weeks.
You are the company’s health and safety manager. With the aid of flow chary, describe the steps you will take to investigate the accident and identify legislation and regulations that are relevant to this case and impact on the business.
Due to the serious nature of the injury you can expect a visit from the HSE inspector. What documentation will the inspector expect to see, and who will the inspector want to interview.
You company is currently tending for a big contract and bidding against a competitor based about 10 miles away. You are under strict instructions from your managing director not to talk to anyone outside the factory the about the accident. Why is this? P5
Checklist of evidence required P5
Criteria covered by this task:
Unit/Criteria reference To achieve the criteria you must show that you are able to:
Unit 7/LO 3 identify the legislation and regulations that impact on the way an engineering business operates
Task 3 a) A factory built originally on a Greenfield site is now ringed by housing estates. It employs about 200 people and is the largest business in the locality. Some people living nearby are trying to get it closed down because they are concerned about two of the manufacturing operations metal stamping, which they claim is very noisy, and electroplating, which involves the use of cyanide and they see this as a deadly process.
The company is to make a presentation to the residents’ association describing the environmental and social constrains that impact on the business, and explain how it complies with legislation and has good ‘green credentials’, particularly in respect of discharging waste water from the onsite treatment plant into a nearby river. The company also wants to highlight the economic benefits it brings to the local community.
Your manager asked you and a colleague to prepare an outline script and a ten-slide PowerPoint presentation. P6
b) Discuss the impact of the legislation on the operation of the company in task 3 in terms of benefits and limitations. You should make a balanced argument that picks the possible tensions between making a profit and complying with legislation in the situation described above. M2
c) Using the company, you work for or one which you have visited or in task 3, evaluate the importance and possible effect of the external factors that directly impact on its operation. You are looking to consider factors such as interest rates, inflation, political conflict between countries, climate change and carbon footprint issues, prices of raw materials, supply of materials, government legislation regulatory agencies (e.g. HSE), etc. D2
Checklist of evidence required
P6 M2 D2
Criteria covered by this task:
Unit/Criteria reference To achieve the criteria you must show that you are able to:
Unit 7/LO 2 describe the environmental and social constraints that impact on the way an engineering business operate
Unit 7/LO 3 discuss the impact of legislation on a specific operation within a typical engineering company in terms of benefits and limitations
Unit 7/LO 2 evaluate the importance and possible effect of the external factors that directly impact on an engineering company.
Sources of information to support you with this Assignment BTEC Level Engineering by Ernie Cook et al.
Business Skills for Engineers & Technologists by H. Cather et al
Boyce A, Cooke E, Jones R and Weatherill B – BTEC Level 3 National Engineering Student Book (Pearson, 2010) ISBN 9781846907241 Boyce A, Cooke E, Jones R and Weatherill B – BTEC Level 3 National Engineering Teaching Resource Pack (Pearson, 2010) ISBN 9781846907265 Chelsom J, Reavill L and Payne A – Management for Engineers, Scientists and Technologists, Second Edition (John Wiley and Sons Ltd, 2004) ISBN 0470021268 Nicholas J and Steyn M – Project Management for Business and Engineering and Technology (Butterworth-Heinemann, 2008) ISBN 0750683996 Tooley M and Dingle L – BTEC National Engineering (Newnes, 2007) ISBN 0750651660
Other assessment materials attached to this Assignment Brief eg, work sheets, risk assessments, case study
FOR 2012 L1/2 FIRSTS ONLY: If you have not achieved the Level 2 criteria, your work will be assessed to determine if the following Level 1 criteria have been met.
To achieve the criteria you must show that you are able to: Unit Criterion reference
explain how external factors and the economic environment affect the way in which an engineering company operates 7 Unit 7/LO 2
identify the legislation and regulations that impact on the way an engineering business operates 7 Unit 7/LO 3
describe the environmental and social constraints that impact on the way an engineering business operates 7 Unit 7/LO 2
discuss the impact of legislation on a specific operation within a typical engineering company in terms of benefits and limitations 7 Unit 7/LO 3
evaluate the importance and possible effect of the external factors that directly impact on an engineering company 7 Unit 7/LO 2
Sample Solution
