DAR ES SALAAM INSTITUTE OF TECHNOLOGY

MECHANICAL ENGINEERING DEPARTMENT

BACHELOR OF ENGINEERING IN MECHANICAL
ENGINEERING
NTA LEVEL 8
ASSIGNMENT ONE

MODULE : MEU08105
MODULE TITLE : PRODUCTION ENGINEERING
SUBMITTED BY : GROUP FOUR
CLASS : BENG 18-ME

FEB, 2021
Certification
The undersigned certifies that he has read and accepted this group assignment of the module entitled
“Production Engineering (MEU 08105)” in partial fulfillment of the fifth semester in undertaking
Bachelor of Engineering in Mechanical at Dar-es-salaam Institute of Technology.

Signature……………………
Munuo E. L
(Module Lecturer)

Date……………………

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Declaration
We, group four (4) declare that this assignment is our own original work and the results embodied in
this assignment have not and will not be submitted to any other group of the class for the same or
similar purpose.

Group participants
s.No Student’s Name Admission Number Signature
01 Abdallah FUNGA Hamisi 170530520247
02 Beniwes KUNANI Peter 170530520395
03 OMARY Iddi 170530520148
04 Fausitine BUZINZA 180530520436
05 Sigfredy SIMCHIMBA Pansiano 180540520319

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Acknowledgement
The satisfaction and euphoria that accompany the successful completion of this assignment will be
incomplete without mentioning the people who have made it possible, because success is the epitome
of hard work. So with gratitude, we acknowledge all those whose guidance and encouragement have
made our efforts successful.
We wish to express our deep sense of gratitude to our module director and instructor and Lecturer
Mr. Munuo E.L for his valuable suggestions, constant encouragement and instruction in conducting
this assignment.
We cannot ignore the support given by our parents who have been always inspirational to us.
We thank every individual who has directly or indirectly influenced us to propel this assignment up
to its completion.

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Abstract
This assignment is one of the unique test on the understanding of the module to the students
concerning with the production Engineering. Normally different assignment performed by the
students test their awareness and ability on the particular module. And in this module through
assignment, students are checked and tested their ability and understanding all about production
Engineering.
The assignment consists of four questions selected from different areas of module concentrations. It
consist of Critical path Method testing which shows the overall process of selecting and arrangement
of activities to achieve the implementation of the project at an appropriate time without delaying and
without running off and important activity.
It also have explained the financial planning, production control and break even analysis which are
the activities and tasks that an Engineer or a manager require to control them to ensure the
production at a low cost with maximum utilization of recourses at a given time.

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Table of content

Certification ...........................................................................................................................................................
Declaration .......................................................................................................................................................... ii
Acknowledgement .............................................................................................................................................. iii
Abstract .............................................................................................................................................................. iv
Table of content ................................................................................................................................................... v
Abbreviation ....................................................................................................................................................... vi
List of table and figure ...................................................................................................................................... vii
QUESTION ONE ................................................................................................................................................ 1
QUESTION TWO ............................................................................................................................................... 2
FINANCIAL PLANNING .............................................................................................................................. 2
Important elements to be considered in preparation of financial plan ......................................................... 2
QUESTION THREE ........................................................................................................................................... 4
PRODUCTION CONTROL SYSTEM ........................................................................................................... 4
QUESTION FOUR ............................................................................................................................................. 5
BREAK-EVEN POINT ................................................................................................................................... 5
Significance of break-even point ................................................................................................................. 5
Conclusion ........................................................................................................................................................... 6

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Abbreviation

TE – Tail event
HE – head Event
tE – Estimated completion time of activity
EST – Earliest Starting Time of Activity
EFT – Earliest Finishing time of Activity
LST - Latest starting time of activity
LFT - Latest finishing time of activity

vi
List of table and figure

Table 1: Summary calculation for a project network .......................................................................................... 1

Figure 1: A network indicating all project activities and their duration .............................................................. 1

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QUESTION ONE
a)

Figure 1: A network indicating all project activities and their duration

Table 1: Summary calculation for a project network

Activity TE HE tE EST EFT LST LFT SLACK

A 1 5 4 0 4 0 4 -
B 1 2 2 0 2 0 2 0
C 2 3 10 2 12 2 12 0
D 2 4 3 2 5 2 5 -
E 2 5 6 2 8 2 8 -
F 2 7 5 12 17 12 17 -
G 3 6 8 12 20 12 20 0
H 4 6 4 5 9 16 20 11
I 5 6 7 8 15 13 20 5
J 5 9 3 8 11 13 16 5
K 6 9 3 20 23 20 23 -
L 6 8 11 20 31 20 31 0
M 7 8 7 17 24 24 31 7
N 7 11 8 17 25 24 32 7
P 8 10 6 31 37 31 37 0
Q 9 10 4 23 27 33 37 10
R 10 11 3 37 40 37 40 0
X 9 12 4 23 27 33 37 10
Y 11 13 3 40 43 40 43 0

b). In the taken network, the following activities are critical activities:
1 – 2, 2 – 3, 3 – 6, 6 – 8, 8 – 10, 10 – 11, 11 – 13.
c). Critical path is:
B–C–G–L–P–R–Y
d). Project implementation duration
2 + 10 + 8 + 11 + 6 + 3 + 3 = 43 Days
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QUESTION TWO
FINANCIAL PLANNING
A financial plan for business is an overview of business's financial situation and a forward-looking
projection for growth.
Financial planning is an important part of financial management. It is the process of determining the
objectives, policies, procedures, programmers and budgets to deal with the financial activities of an
enterprise.
Financial planning reflects the needs of the business and is integrated with the overall business
planning. Proper financial planning is necessary to enable the business enterprise to have right
amount of capital to continue its operations efficiently. It involves taking certain important decisions
so that funds are continuously available to the company and are used efficiently. These decisions
highlight the scope of financial planning.

Important elements to be considered in preparation of financial plan

Sales forecasting
The sales forecast is the projections, or forecast, of what Jimmy thinks will sell in a given period.
Forecast is an incredibly important part of your business plan, especially when lenders or investors
are involved, and it should be an ongoing part of business planning process.
There must be an estimate of business sales revenue for every month, quarter and year. This helps in
better understanding of the business. It is also invaluable to plan marketing initiatives and growth
strategies.
Forecast should be consistent with the sales number used in profit and loss statement hence it is
foundation for setting company growth goals.
Cash flow projection
This is the process of obtaining an estimate or forecast of a company’s future financial position
typically based on anticipated payments and receivables.
The business owner should be able to predict cash flow. Projecting cash flow for the full year allows
the business to get ahead of any financial struggles or challenges. It can also help you identify a cash
flow problem before it negatively impacts the business.
A cash flow projection gives a business owner a clear look at what money is expected to be left at the
end of each month, enabling him/her to plan a possible expansion or other investments.
Break-even analysis
This is the analysis involving finding out the point at which total cost and total revenue are equal
with no net loss or gain where cost incurred in the business has been neutralized.
Break-even analysis is also the best way to determine pricing. A break-even analysis can tell the
owner how many units he/she need to sell at various price points to cover the costs. Business owner
should aim to set a price that gives a comfortable margin over expenses while allowing the business
to remain competitive.

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Operations plan
In order to run a business as efficiently as possible, operational need must be well crafted.
Operational plan involves understanding what roles are required to operate your business at various
volumes of output, how much output or work each employee can handle, and the costs of each stage
of supply chain aid in making informed decisions for business's growth and efficiency.
It's important to tightly control expenses, such as payroll or supply chain, relative to growth. An
operations plan can also make it easier to determine if there is room to optimize operations or supply
chain via automation, new technology or superior supply chain vendors.
Expense outlay
A full expense plan includes regular expenses, and expected future expenses.
Regular expenses are related to standard business activities that occur each year, such as conference
attendance, advertising and marketing spend.
Expected future expenses are known future costs, such as tax rate increases, increased minimum
wage or maintenance needs. Generally, budget should also be allocated for unexpected future
expenses for calamities, such as damage of business caused by fire, flood or other unexpected
disasters. Planning for future expenses ensures your business is financially prepared via budget
reduction, increases in sales or financial assistance.
Statement of financial position (Assets and Liabilities)
Assets and liabilities are the foundation of business's balance sheet and the primary determinants of
net worth. Tracking both ensures that the business potential values are minimized.
Balance sheet, or financial position, offers a more complete view of business's health than a profit
and loss statement or a cash flow report. A profit and loss statement shows how the business
performed over a specific time period, while a balance sheet shows the financial position of the
business on any given day.

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QUESTION THREE
PRODUCTION CONTROL SYSTEM
Production control is the process of planning production in advance of operations, establishing the
extract route of each individual item part or assembly, setting, starting and finishing for each
important item, assembly or the finishing production and releasing the necessary orders as well as
initiating the necessary follow-up to have the smooth function of the Industry.
Dispatching:
Dispatching involves issue of production orders for starting the operations.
Necessary authority and conformation is given for movement of materials, tools and fixtures
necessary for each operation to different workstations.
Also it involves recording time for beginning of work in each operation and cost involved in each, as
well as the movement of work from one operation to another in accordance with the route sheet.
Follow up
This involves controlling manufacturing activities by grasping the progress status of issued orders
and expediting the delayed orders. It is indispensable to grasp and maintain the latest progress status
based on the performance results reported by each process, and notify the whole system of it.
Inspection
It is the most common method of attaining standardization, uniformity and quality of workmanship.
It is the cost art of controlling the production quality after comparison with the established standards
and specifications. It is the function of quality control that mainly to ensure the quality of goods.
Corrective measure
This is evaluation that involves the process of examining mistakes or defects in the production
functions and removing these errors by implementing necessary corrective actions.
Corrective action may involve any of those activities of adjusting the route, rescheduling of work,
changing the workloads, repairs and maintenance of machinery or equipment, control over
inventories.

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QUESTION FOUR
BREAK-EVEN POINT
Break-even point is defined as a point where total costs (expenses) and total sales (revenue) are
equal. Break-even point can be described as a point where there is no net profit or loss.
Any company which wants to make abnormal profit, desires to have a break-even point.
Significance of break-even point
i). It is helpful to managers since it provided information that can be used in making important
decisions in business, for example it can be used when preparing competitive bids, setting
prices, and applying for loans.
ii). Break-even point act as a simple tool defining the lowest quantity of sales which will include
both variable and fixed costs. This facilitates the managers with a quantity which can be used to
evaluate the future demand.
iii). It is helpful in recognizing the relevance of fixed and variable cost.
The fixed cost is less with a more flexible personnel and equipment thereby resulting in a lower
break-even point.
iv). The break-even analysis, in its simplest form, facilitates an insight into the fact about revenue
from a product or service hence incorporates the ability to cover the relevant production cost of
that particular product or service or not.

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Conclusion
Upon the completion of this assignment we have actually earned more knowledge on how to use the
critical path method which it is very vital in performing the production tasks. This critical path aside
from creating a realistic project road map, also it is very useful in different companies in variety way
hence and thus knowing it is of non-escape.
Also knowledge of production planning on the forecast of the materials and resources, controlling
them during production control and proper calculation and analysis of the Break-even point of the
project enable us in one way or another in smooth running of activates in different production
companies.