Page 570 - Sensors and Control Systems in Manufacturing

CHAPTER 11

Economic and

Social Interests

in the Workplace

This chapter was written most especially for those who possess the
talents of innovation but need economic know-how to implement
their dreams. It is written for all my students, peers, and those entre-
preneurs who wish to grasp the simple yet practical understanding
needed to build their new manufacturing business with a sound
financial strength.

11.1 Manufacturing Operation Control Through
Financial Planning

“Engineering in the absence of economics is a degenerate science.”
The small manufacturing firm, just as surely as the larger manufac-
turer, must have yardsticks for measuring the results of every activity
of its business operation. For this purpose, management should take
the following steps:
1. Define its objectives precisely.
2. Prepare a written statement of the steps to be taken to accom-
plish these objectives.
3. Refer continually to its statements of objectives to see that its
operation is proceeding according to schedule.
For some manufacturers, the budget may be simply an informal
sales forecast, production schedule, and profit forecast. If only one
person is responsible for seeing that activities proceed in accordance
with plans, the budget becomes a simple basis for action by a top
executive. It helps an executive make on-the-spot decisions that are in

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