The document outlines the organizational structure of a typical manufacturing business. It is divided into two primary units: the administrative/business unit and the process/operational unit. The administrative unit provides resources and oversight, while the process unit directly produces goods and services. Quality systems cut across departments and ensure effective communication and process performance.

1. MECH 6004

2. Introduction
Business/Manufacturing can be broken
down into 2 primary units:
 Business/Administrative
 Process/Operational
Each has independent roles in
organizational Quality that are necessarily
interdependent.
 Process provides product and/or service
 Business provides the resources to
produce the product or service.

3. Organizational Structure
Board of
Directors
Administration
Process

4. Introduction cont.
 It is critical to understand the difference
between Departmentalization and Quality
Systems.
 Departmental Systems are verticals
meaning that communication flow is up
and down.
 Organized into discipline/activity specific
activities.
 Quality Systems are communications
groups that have interconnected interests
in activities between departments.

5. Departmentalization
CEO
Administration
Accounting
Human
Relations
Process
Engineering Production Maintenance
Quality

6. Introduction cont.
 Quality Systems are defined by their
overlapping interests:
 Safety Systems: Interface with ALL
departments
 Engineering Systems: Interface with each
other, Quality Departments, Accounting, HR,
Production.
 Accounting Systems: Interface with
Administration, Quality, Production etc.
 Information Systems: interface will ALL other
systems.

7. Systemic Quality
CEO
Administration
Accounting
Accounts
Receivable
Accounts
Payable
Human Relations
Sales and
Marketing
Process
Engineering
Design Engineering
Manufacturing
Engineering
Electrical
Engineering
Production Maintenance
Quality
Quality
Assurance
Quality
Control

8. Business/Administrative
Can be subdivided into 2 categories again;
interdependent: Administrative (senior
managers) and Support.
 Administrative:
 Board of Directors
○ Provides direction and resources for the
operations of the business.
○ Shareholders Responsibility
○ Money Supply
○ Includes the CEO/President as liaison to the
physical organization

9. Departmentalization
These are departments/groups to provide expertise
within each discipline. They are typically referred to as
SUPPORT FUNCTIONS because they do not directly
contribute to product or service.
Administration
 Most Senior Manager (CEO or President)
 Liases with Board of Directors.
 Communicates and coordinates business
directions to senior management
 Ensures financial needs are well forecasted
and met.
 Departmental Managers (Accounting etc.)

10. Departmentalization cont.
Accounting
 Financial Accounting
 Accounts Receivable
 Accounts Payable
 Payroll
 Purchasing.
 Shareholder management and reporting.
 Cost Accounting
 Monitors and reports all costs of operations.
 Closely works with Engineering departments.
 Analyzes expenditure for returns to profit.

11. Human Relations
 Provides workers, benefits and support.
 Deals with Human Rights issues
 Provides Training and Support
Resources.
Information Systems/Technology
 MIS/Intranet
 Internet/Web services
 Software/hardware support and control
Departmentalization cont.

12. Sales and Marketing
 Coordinate customers wants and needs
with the business’ goods and services.
 Communicates customer needs for new
products, parts etc. These are often technical.
 Follows up on customer satisfaction.
 Provides information about the company
externally. (Media, Web presence etc.)
 Scans the marketplace for developments
within the industry and competitors.
Departmentalization cont.

13. Operational Systems
These Departments are DIRECTLY involved in
the process of producing goods and services,
Senior Managers (VP’s. Directors etc.) are
administrative.
Line Systems
 Manufacturing or Production Department(s)
 Discipline/technical specific to the process of
goods and/or services.
 Often further departmentalized: ie. Casting Dept.,
Machining Dept. Assembly Dept. etc.)
 Primary Inspection (at the point of work)

14. These DEPARTMENTS and their derivatives
provide technical supports and expertise to
the PROCESS side of manufacturing.
Engineering Systems:
Design Engineering
 Design of Tooling, Gauging, Process
Drawings.
 Serves the needs of other engineering
groups as required.
 Product Design
 Research and Development
Support Systems

15. Engineering Systems Cont.
Manufacturing/Methods Engineering
 Control Plans. Core to DFMEA/PFMEA
 Prepares work instructions
 Document management (Engineering
Changes)
 Solves process problems
 Order or recommendation of new tooling
and machinery: Project Monitoring.
 Oversees design activity of Design
Engineering and Vendors.

16. Engineering Systems cont.
Process/Industrial Engineering
 Process flow, Plant layout
 Utilities Management
 Environmental Systems and Management.
Electrical/Controls Engineering
 Manages internal electrical systems from
point of demarcation.
 Services/troubleshoots controls systems
 PLC’s
 Computerized Numerical Controls

17. Support Systems Cont.
Quality Systems
Quality Assurance
 Management of Quality Systems and
Programs
 Quality Engineering
 Customer Quality Relations
 Analysis of Process performance for
administrative purposes.
 Standard Operating Procedures (Quality
Manual)

18. Quality Control
 Process Measurement and initial problem
analysis.
 Data gathering and elementary analysis
and reporting of process performance.
(Inspection as needed)
 Measurement Systems Analysis
 GR&R
 Calibration
 Gauging Control
 Repairs and Replacement
 Distribution
Support Systems Cont.

19. Support Systems cont.
Production Control Systems (The
Heart of Process)
 Order scheduling for production.
 Plans production schedules and issues
process orders to factory.
 Materials Requirements Planning (MRP)
 Purchasing Coordination
 Inventory Control
 Customer Supplied Materials Coordination
 Logistics (Shipping/Receiving) Control
 Ensures delivery of goods is timely.

20. Summary
 Administration and Process are co-
dependent. Neither is more important
than the other.
 Administration provides resources
needed to produce.
 Engineering Systems are ACCOUNTABLE
for process performance whether in
planning or final product.
 Quality Systems monitor the
organizational performance and report to
the highest level of management.