SWOT analysis of the industrial enterprise

This is the so-called method for assessing the strengths and weaknesses of the company, opportunities, and threats from the environment – SWOT (Strengths Weaknesses Opportunities and Threats).

This method is a tool that allows you to assess how the strategy can better combine the strengths and weaknesses of the organization, ie. its capabilities with the situations in the environment. What opportunities or threats does it provide for the development of the company.

After analyzing the conditions of the internal and external company environment, alternative strategies for achieving the goals of the organization should be formulated. The goal is to be able to most effectively use everything generated by the external environment, ie. to take advantage of opportunities and circumvent threats.

The strengths are expressed in the positive internal features that facilitate the activities of the organization and increase its competitiveness.

These are:

  • high quality of production;
  • competent management;
  • loyalty and fairness to all customers;
  • increased diligence and diligence on the part of the staff;
  • the technological conditions for production are at a good level;

Weaknesses are expressed in negative internal features that hinder the activities of the organization and reduce its competitiveness.

These are:

  • poor organization and coordination of work between the hierarchical levels;
  • not well-organized advertising activity;
  • weak innovation policy;
  • small market share;

Production management and engineering

Nature of production management and engineering

Production management manages the production processes in the enterprise, through which raw materials are converted into finished products with the help of appropriate physical, chemical, thermal, and other effects. The words “production” and “operations in services” are gradually beginning to take on the meaning of synonyms meaning actions to transform resources.

Engineering is closely related to the construction and operation of the managed subsystem of the industrial enterprise. The task of engineering is the design of the production process and its constant improvement in time and space for each industrial enterprise. Reference: “Management and engineering in organizations”, https://www.worldforgemagazine.com/management-and-engineering-in-organizations/

The tasks of production management are:

  • to ensure the production of the planned or agreed with the customers’ production in terms of quantity, quality and for the given period;
  • to ensure the necessary commitment in the work of the individual units over time;
  • to ensure constant and continuous use of resources (machines, equipment, people);
  • to ensure maximum continuity in the movement of materials;
  • to ensure continuity in the management of production;

Analysis of the production program of the enterprise

The formation of the annual production program of the enterprise is one of the most important functions of production planning, as it depends on the general financial condition of the enterprise, the material security of production, compliance with deadlines for completion, and delivery of finished products, etc. The manner and correctness of the formation of the annual production program determine the appearance of permanent or temporary “bottlenecks” in the production or downtime of individual machines or groups of machines due to their non-loading.

The formation of the annual production program in the industrial enterprise is carried out through forecasts, through orders, or mixed.

The formation of the annual production program must provide such nomenclature and range in which:

  • to satisfy the market demand for the respective types of products;
  • to take into account the requirements of the parent organization for the specialization of the enterprise;
  • to satisfy the regulated economic relations and in particular the needs of the contracting enterprises with cooperative supplies;
  • to ensure the implementation of the technical and economic indicators for the use of production facilities, use of labor and material resources, reduction of the cost of production;

Analysis of the type of production

The type of production is a complex character of the technical, organizational, and economic features of the production of a single product (semi-finished product) or the industrial enterprise (its production unit).

This complex character is based on the nomenclature, volume, and repeatability of the delivered products and the specialization of the production.

The most accurate guideline for making an appropriate decision to build the production process in space and its implementation over time is the type of production.

The main types of production in manufacturing enterprises are:

  • single production – is characterized by a very large range of manufactured products in small quantities or single pieces.
  • serial production – is characterized by a stable range and volume of production, which vary widely, products are made in series, and semi-finished products for them in batches. Serial production is subdivided into small-, medium- and large-scale production.
  • mass production – is characterized by a very limited range of products, and it is possible to manufacture only one type of product.

The mode of operation of the production site is determined by taking the number of working days, the shift rate, which shows how many shifts the site will work, the duration of the shift, and the rate of use of shift time.

Production structure of the industrial enterprise

Under the production structure of the industrial enterprise (structure of the production subsystem of the industrial enterprise) is understood the composition of the structural elements of its production subsystem and the technological-production relations between them. The complexity of the production structure depends on:

  • The size of the industrial enterprise;
  • The size of the industrial enterprise affects the vertical dimension of its production structure. In large and medium-sized industrial enterprises it is three-hierarchical, while in small ones it is two-hierarchical;
  • The number of structural elements of the production subsystem of the industrial enterprise;
  • The number of structural elements of the production subsystem of the industrial enterprise has an impact on the horizontal dimension of its production structure.

A large number of structural elements of the industrial enterprise complicates the coordination between them at the respective hierarchical level;

The specialization of the production units

The specialization of the production units predetermines the technological production relations between them. In subject specialization, due to the homogeneity of production, technological-production links may not be maintained or be few and permanent, and in technological specialization, due to the large range and small volume of production, they are numerous and temporary.

The composition of the structural elements of the production subsystem of the industrial enterprise is directly dependent on the production process carried out in it. Relevant production units and jobs are established for the realization of their separate structural elements.
The production unit is an organizationally separate part of the enterprise, which performs a specific production task. There are two types of production units:

Workshops (farms)

The workshop is the largest structural elements of the production subsystem of the industrial enterprise in a three-hierarchical structure, representing a set of production sites and individual jobs. A separate phase of the production process or parts of it related to the implementation of specific partial processes takes place in the workshop. Depending on the type of the implemented phase or part of it, the workshops are:

billets – foundry, forging, stamping, pressing, cutting, cutting, etc .;
processing – mechanical, thermal, galvanic, etc .;
assembly – assembly, general installation, painting, testing, packaging, etc.

At this hierarchical level in the production structure instead of workshops can be differentiated farms that are related to the implementation of specific service operations (transport, storage, etc.) – transport farm, warehouse, etc.

Correspondence between the structural elements of the production process and the production subsystem of the industrial enterprise. Reference: “Reorganization of business processes in the organization”, https://w-europe.org/reorganization-of-business-processes-in-the-organization/

Production lines

The workshops are made up of smaller production units – production lines. A production line is a set of a subject- or technologically specialized jobs for performing one or several similar partial processes.

Some subject-specialized sections are called lines – technological or flow because the workplaces are located according to the technological sequence, which ensures a unidirectional flow of material in them. In small industrial enterprises, the production section (line) is the largest structural elements of the production subsystem, due to which their production structure is two-hierarchical – shopless.

In medium and large enterprises from an administrative point of view it is possible to unite several small production sections with the same or different specialization – lathe-milling section, section “Gears and bushings” and others.

The workplace is a part of the production area (space) of the industrial enterprise, on which everything necessary is located (machine, production furniture, equipment, fixtures, tools, materials, pallets for semi-finished products, waste pallets, safety equipment, etc.) for performing a certain operation or a certain type of homogeneous operations. The workplace is the smallest structural element of the production subsystem, which is why it is considered to be its main structural element.

Analysis of the ongoing production process

The production process is a set of purposeful interactions in the production enterprise to convert input resources into finished products.

Production processes are divided into two types according to the practical application of the finished product – basic and auxiliary. The main ones are those in which the finished product is obtained, which production is sold outside the enterprise.

Auxiliary are those production processes in which the finished product is sold in the enterprise and are necessary for the main processes. To be better organized in space and time, the production processes are made up of the following structural elements – phases, partial processes, and operations.

The phases are homogeneous in purpose leading to new properties for the objects of production. Partial processes are a set of technological operations to perform the production process or homogeneous activities. The production operation is part of the process performed at one workplace by one (or group) of workers.

The constituent elements of the production process in the industrial enterprise are – labor, means of labor, and objects of labor. Reference: “Business process reengineering”, https://mstsnl.net/business-process-reengineering/

Various production operations are successively performed on the objects of labor entering the production enterprise, in which their shapes, sizes, or properties are purposefully changed until the finished product is obtained.

Analysis of the construction of the production process in space

The efficiency of the organization of the production process in space largely depends on the spatial location of the production units and the workplaces in them. The following requirements must be observed when locating production units and workplaces:

To provide the shortest way of movement of materials, semi-finished products, and products on the territory of the industrial enterprise, ie. the production units and the workplaces should be located according to the technological sequence;

To rationally use the area and volume of production
premises;

To create appropriate conditions for the prevention and repair of
machinery and equipment and for transportation of finished products and waste;

To ensure normal sanitary and hygienic and safe working conditions.

The spatial location of the production units and the workplaces in them is determined according to the course of the production process, depending on the sequence of phases, partial processes, and operations. The developed variants of the spatial location of production units and workplaces are compared by the volume of transport work (transport costs), the degree of use of areas and volumes of production facilities, and other specific indicators to select the optimal option.

The spatial arrangement of the production units concerning the general direction of the production process in the industrial enterprise can be realized according to three basic schemes:

Consistent placement

In the sequential arrangement, the workshops or production sections are technologically specialized and are arranged in the course of the production process. For example, first is the procurement workshop, then – the processing, and finally – the assembly, and it follows the following sequence of sections: assembly, general installation, adjustment, testing, and packaging.

Parallel-sequential combination

In parallel-sequential (mixed) combination, the pairs of consecutive structural elements of the production process are realized with maximum or less overlap, which depends on the ratio between their durations. When the next element has a greater or equal duration than the previous one, then the overlap is maximum. In all other cases, the overlap is less than the maximum, but the next smaller structural element of the production process is continuously implemented. The execution time of all structural elements of the production process is slightly longer than that of parallel combination and significantly less than that of sequential combination. Reference: “Business process reengineering”, https://mstsnl.net/business-process-reengineering/

The manner of movement of the semi-finished products from the batch is a quantitative characteristic of their movement between the workplaces or production units of the industrial enterprise. The ways of movement of the semi-finished products from the batch are:

Single movement

In the case of a single movement, each semi-finished product in the batch is moved independently from the previous one to the next workplace or production unit, where the transport work has the largest volume.

Movement of transport lots

When moving batches, several semi-finished products in the lot are moved together. Their number shall be determined to be a multiple of the lot size and to ensure the movement of consignments of the same size. The volume of transport work is smaller than that of a single movement, as it decreases in proportion to the increase in the size of the transport lot.

Batch movement

In the case of batch movement, all semi-finished products from the batch are moved together (one-time transfer of the whole batch) from the previous one to the next workplace or production unit, where the volume of transport work is the smallest.

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