IEDA2200
Engineering Management
Xuan QIU
Dept. of IEDA
HKUST
Spring 2021
In-class Etiquette
• “Raise Hand” if you want to speak up in class
• Keep Mute while not speaking. When speaking up,
键 down will temporarily
holding the space bar
暂时
unmute so that you can speak, and release the
space bar after speaking to go back to释放
mute mode.
2
Instructor’s Information
• Instructor: Xuan QIU
• Contact Information:
– Room 5549
– E-mail: xuanqiu@ust.hk
• Office Hours: 10:30-11:30am, Friday
3
Teaching Assistants (L1)
• Mr. Kanglin CHEN (Tutorial)
– Email: kchenaq@connect.ust.hk
• Mr. Xiaoyi GAO
– Email: xgaoak@connect.ust.hk
• Ms. Phoebe CHING
– Email: pmlching@connect.ust.hk
4
Teaching Assistants (L2)
• Mr. Ziyue LI (Tutorial)
– Email: zlibn@connect.ust.hk
• Mr. Yudong HE
– Email: yhebh@connect.ust.hk
• Mr. Yuan An SIM
– Email: yasim@connect.ust.hk
5
Course Description
回标
⼴论的
• The objective
of this course is to introduce a broad
overall understanding and training in scientific
management of business activities in producing goods
重要性
貫穿
and services. Throughout
the course emphasis
will be
放在 on how to use scientific management techniques
placed
时机 as introducing
to improve cost, quality, market timing
product and service for a company.
• Lecture notes and Zoom videos are uploaded to canvas
(http://canvas.ust.hk).
6
Reference Book
• William J. Stevenson and
Sum Chee Chuong (2014),
Operations Management (2nd
Edition), McGraw Hill
Education (Asia).
• Available in the library
7
Assessment
• Homework ----------------------------------------------------------10%
– No late homework is accepted. Please submit through canvas.
• Participation --------------------------------------------------------5%
• Project ---------------------------------------------------------------20%
• Midterm Exam (26 March 2021) -------------------------------- 30%
• Final Exam ----------------------------------------------------------35%
– Both midterm and final exams will be conducted online
• Tutorials
– We have 5 tutorial sessions
– Some weeks may not have tutorial. Please check the announcement
from Canvas.
8
Online Midterm Exam
•
•
•
•
Time: 7:30-9:00pm (1.5 hours), 26 March 2021 (Friday)
Open book and open notes
Coverage: L1 – L6
Format: multiple choices & calculations
• If you could not take the exam during the above time
女排 slot, please let me know in advance. An earlier exam
will be offered on the same day.
calculator
v
9
aopthnize food
ordering in
use
⽶ so we
scheme into real work
real world problems
the
some
engineering
restaurant
principles
pandemh
What
is Engineering?
during
⽶
better cite
problem
for
⽶ solute
mechanization gufe
⽶
improving
by a scientific ⽣ tmpme the efficiency
methods and
tune
use
scienge
qphg the
knowledge
10
self driving or
autonomous vehicles
Future of Transportation?
Reduce
risk
convenience
11
train ridesivacuumtn
Future of Transportation?
hyperloop
Sue the
no
nose
costnhgh
Reduce energy
safety problems
investment
space
Global hyperloop technology market is
7⼤ US$5.72B by 2026
超值
expected to
reach
12
预计
继
无⽜
Cow-free Burger
regghe
Restaurant
rough texture
劣质
emerging
market
a
bit sdy
13
做 畅
战4 COVID-19?
How Engineering is helping combat
develop
vaccines
nano sprays
纳⽶ 囎
medical equtpme
消毒
到sanhthzer
豁免
dispenses
uhth
sensor
传感器
14
What is Engineering?
委派
• From the US Accreditation Board for Engineering and
委员会
Technology (ABET):
专业
Engineering is the profession in which a knowledge
获得 by
of the mathematical and natural sciences gained
应于 with
研究 experience,
经验 and practice
实钱 is applied
study,
利⽤
经济学上
在
斷
判
judgment to develop ways to utilize, economically,
the materials and forces of nature for the benefit of
mankind
⼈类
15
Questions
• Who wants to be a manager?
Product manager
motivate
动机
• Why you may want to consider management as a
career?
risk taker
tune management
标准
slovwgskws
• What are the criteria for a manager?
16
What is Management?
• Management is the 林
art of getting work done through
people (C.C.Nwachukwu,1988)
⼀系列
活动
需要
• Management requires a set of activities (including
制⾊ organising,
领导 and
组项 leading
规划 and decision
決策making,
planning
控制 directed
针对at an organisation’s resources
control)
信息
⼈⼒
財⼒ physical
物⼒ and informational)
(human,
financial,
with the
组设
回朽 in an efficient
aim of achieving organisational
goals
⾼效
and effective manner.*
的⽂
⽅式
interpersonal
些
sk
*Ricky W. Griffin, Management, 4th ed. (1993)
17
Three Levels of Management
战略 Planning
规划
Strategic
Top management
总载 General
CEO, President,
Manager
1-5 years
总经理
战术性 计划
Middle management Tactical
Planning
订
Plant manager
6-24 months
Division head 处⻓
Chief engineer
总⼯程师
Operations manager
运营经理
业务计划
First-line management
Unit manager
单传经理
Team leader
组⻓
Operational
Planning
1-52 weeks
§
§
§
§
§
§
确定⽬标
Determining
objectives
政策
⾊
制 计划
Framing
plans and policies
集合1装配
Assembling
all resources
Performance appraisal 绩效
联系 with outside world
Liaison
Welfare the survival of
福利
organization
幸存
转
中期
§ Make plans of intermediate
range to achieve the long-term
goals
⻓期
公司
§ Breaking corporate objective
target⼀
分解into unit
⽇
单个
§ Coordinate with first-line
协调 ㄧ线管理员
management
标
监督
§ Directly supervise nonmanagers 三⽇经理⼈员
任务 1to workers
分配 tasks
§ Assign
评传performance
§ Evaluate
§ Safety of workers
质量 standards
俯寺 quality
§ Maintaining
§ Boosting the morale of workers
18
提⾼
⼠⽓
Managerial Skills
• Managers need three types of
skills
Managerial level
Lowest
Middle
Top
– Technical:
主题 related skills
特定 subject
• Specific
kills
S
l
a
nic
such as engineering,
Tech
accounting, etc.
kills
S
l
a
rson
iql
e
p
r
– Interpersonal:
e
Int
ills
k
• Skills related to dealing with
S
l
ptua
e
c
n
others and leading, motivating,
Co
or controlling them 做 励
控制
– Conceptual:
概念 森林 䛗
的
• Ability to see the forest in spite
of the trees
19
What Managers Do?
⾓⾊
們
• Interpersonal roles
外向
Outward
Figurehead role
傀儡⾓⾊
⾓⾊
璐
Liaison role
Leader role
信息⾓⾊
⽔平
Horizontal
向下
Downward
• Informational roles
发⾔⼈
者
传播者
拉
监
– Monitor, disseminator, spokesman
• Decision roles 决 来⾓⾊
埋者 資源分配者
企业家决⾊ role; disturbance
失调处
– Entrepreneurial
handler; resource allocator;
negotiator.
诶判者
20
Function of Managers
选择 任务
国标
Selecting missions and objectives.
Requires decision making
决朱制定
决定 and providing
Determining
human and non-human
resources to the
organizational structure.
Measuring and
correcting the activities
纠区
⼈员
配备 组设 ⾆扬
的响people to
Influencing
achieve the objective
充满
Keeping filled
the
organization structure
21
What is Engineering Management?
• Engineering management is…
有⽬的
操作 and continuously improving purposeful
– Designing, operating,
systems of people, machines, money, time, information, and
集成 engineering and management
energy by integrating
期望 goals
knowledge, techniques, and skills to achieve desired
企业 through concern for the
in technological enterprise
environment, quality and ethics (Omurtag, 1988)
道德
分配
The art and science of planning, organizing, allocating
指导 and controlling activities that
resources and directing
have a technological component 成分
技术
致⼒于to making
学科 addressed
定施
The discipline
and implementing
战略 and operational
运营 leadership
领导 in
decisions for strategic
技术 and their impacts on
做的 technologies
当前 and emerging
current
interrelated systems
相关
American Society for
Engineering
Management
IEEE (1990) and
Kocaoglu (1991)
22
Engineering Managers
区别
于 from other
• Engineering Managers are distinguished
拥有 both the ability to apply
managers because they possess
engineering principles and skill in organizing and
directing people and projects.
趁
• Uniquely qualified for two types of jobs
职业 (e.g. design, production)
– Management of technical functions
in almost any enterprise 企业
营销
边界
– Management of boarder functions (marketing, top
management) in a high-technology enterprise
23
Our Aims
贡南堵
做 as technical contributors
• Make engineers more effective
管理 point of view
– Understand managerial
增
往业 objective: value增
– Enterprise
addition
收入 (new product, better service,
• Increase sales revenue
customer satisfaction)
简化
• Reduce cost to do business (simplified product design,
marketing partnerships and alliance)
营销
联盟
管理段位
• Ready engineers for managerial positions
洞察⼒
– Both technological insights and business savvy
– Managerial decision making
𧊅 悟性
管理 特 制定
24
简介
Course Outline
• Introduction to Operations Management
• System design and improvement
–
–
–
–
Product and service design
布局
设施 layout
流程 selection and facility
Process
醒 management
Quality
位置 analysis
分析
Location
⽣产
• Production planning and management
–
–
–
–
Forecasting
预测
库存
Inventory management
你合计划planning
Aggregate
计划
准时
制 (JIT)
需求
Materials Requirement Planning (MRP) and Just-in-time
25
Introduction to
Operations Management
26
Airplane Boarding Strategies
通常 used boarding
• What are normally
strategies?策略
商务舱
头等航
– First
class à Business
class à
Coach class 经济舱
– Coach class in groups
• back to front
24mhzqs
从后到前
• Outside-in
由外向內
14mm 555
• first come, first board
先得
27
⻄南航空
登机
流程
Southwest’s Unique Boarding Process
分成
• Passengers are broken up into three groups: A, B, and
C, and each passenger is given a number in that range
(1~60)
seat
hhyh Complaint 1 random
speed
• Passengers that check in first get on the planehhgh
first (A1
boards first, C60 boards last)
• Open seating on the plane
28
登机
知⽅
Airplane Boarding Strategies
公司
• 航空
Airlines
are trying to save time by speeding up the
boarding process
brand mage
重要
品牌形象
• Why does boarding strategy matter?
造成
– Slow boarding creates delays, unhappy customers, and extra
costs (every extra 1 minute idle adds $30)
闲置time between flights from an
缩短
⻜机 cutting
– For an airplane,
ground
四 more flights a day!
的two
hour to 40 minutes creates 地⾯
one or
造成
29
Airplane Boarding Strategies
测试
⻄部
⽇
美
⾦字塔
倒
“Reverse pyramid” by America West
2
• Boarding strategies tested:
–
• Saves boarding time by over 2 minutes (20%
saving)
⻄南航空公司
了
– Board through both front and back cabin doors (Southwest Airlines)
公司
通道from 5 to 2 (United
聯合航空
– Cut the boarding lanes
Airlines)
航空公司
达美
登机in smaller groups based on fare price (Delta
– Board
Airlines)
斯
学术发findings
坎
Academic
(Jan. 2020)
毗
•
瓢
明星的 28% more efficient to allow
䟷 slower passengers to board
– It is a resounding
first (paper published by American Physical Society)
发布
• OM tools论⽂
applied
应⽤
–
–
–
–
项 Analysis
Process
容量 Planning
Capacity
排队 Analysis
Queuing
规划
线性Programming
Linear
美因物理学会
30
What is Operations Management?
• Operations management is the management of
供应 produce,
⽣千
processes used to design, supply,
and deliver
valuable goods and services to customers
野的
市及当局
非莒利的
制造商
31
合
good shopping
self
sane
Operations Management at IKEA
•
•
•
•
•
四年 products
Over 50% recycled
更少 materials
Fewer
组装
Do-it-yourself assembly
Flat packages 扁平包装 仓库
Combine retail and warehouse
processes,零售
self-service
过程
⾃助服务
32
Basic Functions of Business Organizations
§ Create the product
Operations
运营
市场营销
Marketing
§
§
§
§
Customer preference 偏好
Competitor
者
Trends of technology
趋势
捕
…
詳
Advantuimg
财务
Finance
§ Budgeting
§ Economic analysis of
investment proposals
投资越of funds
§ Provision
§ …提供
款項 33
P
步骤
The Process View of OM
Value-adding 增值
Transformation Process 转变过程
输入
Outputs
Inputs
Feedback
Feedback
Control
Feedback
Value-added: The
difference between
the cost of inputs
and the value or
price of outputs.
34
食品加⼯器
OM Examples
Food Processor:
处理
Inputs
⽣ vegetables
Raw
Metal sheets ⾦屬板
Water
Energy
Labor 劳动
Building
Equipment 设备
Processing
Outputs
Cleaning
Canned 罐裝的
Making cans制作罐头 vegetables
Cutting
Cooking
Packing
Labeling
标记
Hospital:
Inputs
Processing
Doctors, nurses
Hospital
Medical supplies 医疗传应
Equipment设备
Laboratories
实验主
Examination
Surgery外科
Monitoring监控
Medication药
Therapy 治
冷
Outputs
Healthy
patients病⼈
35
Why Study Operations Management?
重要性
• Operations management matters to people
质量
决定
– OM pays an important role in determining the quality of life
for people all around the world (e.g. speed of services, cost
and quality of products)
持续性
– OM also directly impacts sustainability issues
相关
运营
– 50% or more of the jobs in industry are operations related
业
2
• Operations management matters
to organizations
茲出价值
– In every company, there is usually an underlying
value-
adding product transformation that needs to be well-managed
转换
– Operations activities are
at the core of all business 管理良好
organizations
枝⼼
优秀
– Operationally excellent organizations consistently outperform
their rivals
做得436好
始终
1
Goods vs. Services
负责化
• Operations is responsible for producing the goods or
providing the services
原材料
瓢
实物
– Good are physical items that include raw materials, parts,
产品
败终products.
但件
subassemblies,
and final
洗发⽔
烤箱Shampoo
游 Computer, Oven,
• Eg. Automobile,
组兮
– Services are activities that provide some combination of time,
⼼理价值
地之 form
形式or psychological
location,
value.
地⽅
湖 local)
• Government (national, state,
⽂是 toys,
玩是etc.)
电器 stationery,
批发 零售(clothing, food, appliances,
• Wholesale/retail
•
•
•
•
•
Financial services (banking, insurance, etc.)
美容
洗衣 dry
⼲洗
Personal services (laundry,
cleaning, hair/beauty, etc.)
交付etc.)
处埋 e-business,
电摘务 delivery,
Business services (data 数据
processing,
匦⽅保 (doctors, dentists,
牙医 etc.)
Healthcare
Education (schools, colleges, etc.)
𨫡
37
•
Goods vs. Services
通常
蝌 service- or purely
Products are typically
neither purely
goods-based
䩒商品
Goods
• Tangible 有形的
• Can be inventoried 盘纠总结
• Little customer contact联系
周期
研制time
• Long lead
保讴
• Quality easily assured
剩年的 value
• Often has residual
• Material is transformed
转换
Services
• Intangible 无形的
• Cannot be inventoried
⼴泛的 customer contact
• Extensive
• Short lead time
• Quality harder to assess
• Reselling is unusual
不常⻅
倒真
• Information
or
customer is
transformed
38
Discussion
• Think of the last time you visited a restaurant or a hotel:
遇到
⾯临
1
– What are the goods did you encounter?
– What are the services did you encounter?
– Are there both a good and a service?
提前
– Were they prepare in advance or prepare just as you ordered?
39
Goods Production vs. Service Delivery
地
不同 主要
制造
• Manufacturing and Service Organizations differ chiefly
because manufacturing is goods-oriented and service is
⾯向商品
act-oriented.
⾯向⾏为
Manufacturing
Goods-oriented
Services
Differ in what
Similar in how
如何
Act-Oriented
• Both involve design and operating decisions
–
容量
加
能
Make decisions on location, work, schedules, capacity, and
allocation of scarce resources
分配
稀缺
40
范围
Scope of Operations Management
相关的
• The operations function includes many interrelated
activities such as
–
–
–
–
–
–
–
–
–
Forecasting 预则
容量 planning
Capacity
设施 and layout
布局
Facilities
Scheduling 安排
Managing inventories 库存
保证 quality
Assuring
缸
漱励 employees
Motivating
位置
Deciding where to locate facilities
And more . . .
41
Case: An Airline Company
航空
• An airline company is a service organization’s
组成
⻜机
operations system, which consists
of the airplanes,
设施
机场 facilities,
维护设施
airport
and maintenance
facilities, sometimes
spread out over a wide territory地区
展开
Forecasting
Capacity planning
Scheduling
Managing inventories
Assuring quality
Facilities locations
Example Activities
oil Price Pandemu
Luggage
flight
No
schedule
plane
Safety management
toilet launch
42
Key Decisions of Operations Managers
鸞
• What?
– What types of activities and what types of goods/services are to be
delivered by the system?
預期的 customers care about?
特性 do our intended
– What product features
– What activities and resources are needed?
• When?
实施
– When should products be made, activities be carried out, services
be delivered?
• How?
提供
– How is the good/service to be designed, made, and delivered?
– How should we measure and assess performance?
• Where and Who?
估算
– Where should certain activities be done, and who should do them?
43
领域
Decision Areas / Topics
Basic Issues
L2: Project Management
• Which activities are the most critical to the success of a project?
• What are the goals of a project?
• What resources will be needed, and when will they be needed?
项⽬官遇
L3: Product and Service
Design
流程
L4: Process
Selection
L4: Layout
布局
L5: Quality
L6: Forecasting
L7: Location
预测
位置
L8: Inventory
有合理
Management 府
L9: Aggregate Planning
总体规 化
L10: MRP and JIT
关键
• What do customer want?
• What can products and services be improved?
• What processes should be organization use?
•
流程
部⻔
What is the best arrangement for departments, equipment, work flow, and
storage in terms of cost, productivity?
定义
储存
⽣
• How is quality defined?
拜 获得
• How are quality goods and services achieved and improved?
离求 be?
• What will demand
设施
理想的location for a facility?
• What is a satisfactory
• How much to order?
• When to reorder?
注意
• Which items should get the most attention?
的
国
中期厄range?
2硘capacity will be needed over the intermediate
• How much
满⾊
零件
伴
班
• What materials, parts, and subassemblies will be needed, and when?
• How can capacity needs best be met?
• How to achieve a smooth, balanced flow of work using fewer resources?
平稳
流程
44
Strategic Roles of Operations
• Operations strategy is to provide a
plan for the operations functions so
that it can make the best use of its
resources
• Operations strategy focuses on
能⼒
特定 capabilities
specific
of the operation
that give the company a competitive
edge – competitive priorities 諍
优势
优先友
45
Dimensions of Competitiveness
Quality
Being RIGHT
Being FAST
Time
Flexibility
区确
灵活性
Cost
改系
Being ABLE TO CHANGE
Competitiveness
詏
维度1规模
Being PRODUCTIVE
室有成效
• Will you compete on all the above? Some? Tradeoffs?
諍
友衡
46
Competing on Cost 成本
• Offering a product at a low price relative to the prices
本服
of competing products
折
• Example:
Reduce
flyhyhehyhe
47
What does Quality mean in …
Hospital
Bus company
good drher
good exmume
cheap
Supermarket
uuy
48
Competing on Quality
• “Quality” depends on who defining it.
赴
• Quality as a competitive priority has two
代做
dimensions维度
沒什
性能 design
– High performance
公差
耐⽤性
精密
卓越功
的 Close
• Superior
features;
tolerances; High durability;
Excellent customer service
– Product and service consistency
致
• How often the product or service meets the exact
design specifications 规
能 精确
克
实⾏
• Implement quality in every area of the organization
领城
– Product design quality
• Product meets customers’ requirements
啦
过程 quality
– Process
要求
• Design a process to produce error-free products
49
⽣
1
⼈ 细误
Competing on Time
• Time or speed is one of the most important competitive
priorities today
• Making time a competitive priority means
收到
– Rapid delivery: how quickly an order is received
快速 delivery: number of times deliveries are made on
– On-time
次数 交付
time 准时
制作
• Examples
50
能⼒
Competing on Flexibility
应
• Ability to accommodate
changes
⽅⾯
• Two dimensions of flexibility:
造
– Product flexibility
的
• The ability to offer a wide variety
定制
of products/services and customize
them to the unique needs of clients 客户
⼾能柔性 flexibility
– Volume
• The ability to rapidly
increase/decrease the amount 选应
produced in order to accommodate
changes in the demand
雦
McDonald’s
“build your own burger”
需求
51
Why not focus on all priorities?
需求
• Decisions often require tradeoffs 奴衡
– “Do you want it good, or do you want it Tuesday?”
– “No such thing as a free lunch”
权衡 in operations are the way we are willing to
– “Trade-offs
牺牲sacrifice one performance objective to achieve excellence in
绩效⽬标
another.”
• To decide which competitive priorities to focus on:
– Order qualifiers ⻔单限定
认为
特征 that potential customers perceive
• Characteristics
as
minimum standards
– Order winners
蜥耳 of an organizations’ goods or services that
• Characteristics
cause them to be perceived better than the competition 52
认为
Measure Competitive Capability:
Productivity
衡量 how well resources are used
• Productivity measures
Output (goods/services)
Productivity = Input (labor, materials, energy, and other resources)
靿⼒
项 业务
⿐
计
– A productivity ratio can be computed for a single operation, a
department, an organization or an entire country
以下⼿实
• What can we learn from the following fact?
– We operate an restaurant and its productivity last week was
8.4 customers per labor hour
每 2 时 measure
• Productivity is a relative
相对 指掠
⾏业
业务
内 its industry
– Compare itself in similar operations within
– Measure productivity over time within the same operation
53
不同
Computing Productivity
• Total productivity measure:
– Entire organization
部分的
Productivity = output / total of all inputs
• Partial productivity measure:
公司
– Productivity of one worker, machine, department, firm, nation
Productivity = output / single input
的因素
• Multifactor productivity measure:
Productivity = output / several inputs
– Several inputs: labor + machines; labor + materials;
labor + capital + energy…
资本
54
Computing Productivity: Example
地毯
安装
m2
• Four workers installed 720 square meters of carpeting
in 8 hours. What is the labor productivity?
蓝鳃
家是
等
⼆
qomyh
千
⼆
225 myh
制造
• Bluegill Furniture makes kitchen chairs. The weekly
dollar value of its output including finished goods and
在制品
work-in-progress
is $14,280. The value of inputs (labor,
⼤的
materials, capital) is approximately
$16,528. What is
the total productivity measure for Bluegill?
本
⼸
why
16528
⼆
7.864
55
reg
Computing Productivity: Example
的因素 productivity using the
• Determine the multifactor
following data:
one day
If
• Old system 1⽇系统
4 staffs each works 8 hrs/day
缸cost = $160/staff/day
Labor
Total output = 8 pieces/day
Fixed overhead = $400/day
固定费⽤
• New system ⾏系统
4 staffs each works 8 hrs/day
Labor cost = $160/staff/day
件
⼀
Total output = 14 pieces/day
Fixed overhead = $800/day
• How much the productivity has been increased?
2077 pieces1
old 8114 t ⼼ X 4
New
1411800 ⼗ 1601141
increased
o
0397 piecesH
around 26
56
㺪驾驶⻜⾏
Discussion
增⻓
物流业
快速
• Drone delivery is fast gaining popularity in logistics industry
privacy
concerns
l What are the pros and cons of the drone delivery service?
l What do you think of the drone delivery’s future?
57