Business Operations in Engineering


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Unit 7 – Business Operations in Engineering Level 3 – [R/600/0257]

Duration – 2 Months

Aim and purpose

This unit gives learners an understanding of the major factors that affect the way that engineering companies operate in competitive business environments. They will also develop skills in costing techniques for engineering activities.

Unit Introduction

Engineers are employed in a range of businesses within the primary, secondary and tertiary sectors. Their knowledge and skills are used to carry out a variety of specific functions that solve the needs of businesses and contribute to their commercial success. By making effective use of their engineers’ expertise, organisations can secure competitive advantage, whether they be a small owner-managed company or a large limited company with many shareholders.

For anyone considering a career in engineering, it is important to have an understanding of how an engineering business operates and its position within society. This unit will develop learners’ understanding of business, the engineering industry and the effect of engineering on the environment. It will help give learners a firm foundation for employment in the engineering sector and an understanding of the organisational, financial, legal, social and environmental constraints within which an engineering company operates.

The unit will enable learners to examine an engineering company in detail. This could be either the one in which they are employed or one in an engineering sector in which they may look for employment. Learners will understand how the company operates, the factors that impact upon the business and the importance of a cost-effective output. This will include an examination of the engineering functions of the company and the importance of communication and information flow within the business. This is set within a study of how external factors and the economic environment impact on the company.

Learners will examine relevant legislation and how it can place considerable constraints on the way that a typical engineering company is required to operate. A company cannot survive if it is not profitable and the unit allows learners to consider the use and implication of costing techniques on the sustainability of a
particular engineering activity.

Learning outcomes
On completion of this unit a learner should:

  1. Understand how an engineering company operates
  2. Understand how external factors and the economic environment can affect the operation of an engineering company
  3. Know how legislation, regulation and other constraints impact on the operation of engineering businesses
  4. Be able to apply costing techniques to determine the cost effectiveness of an engineering activity.


Awarding Organisation (AO)

Pearson (Edexcel)


Assignments, x3










2 Months