ENGINEERING MANAGEMENT
LECTURE 1: INTRODUCTION TO
ENGINEERING MANAGEMENT
What is an Engineer?
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Ingenium (Latin)
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Skillful, talent, natural capacity, or clever
First-line Management:
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Directing supervise non-managers
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Carry out the plans and objectives of higher
management using the personnel and other
resources assigned to them.
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will be done tomorrow or next week, assign
tasks to their workers, supervise the work
invention
that is done and evaluate the performance
Early applications of clever inventions based
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on military
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Builders of talent military machines
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The first issue (1866) of the English Journal
Engineering
The art of directing the great sources of
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power in nature, for the use and convenience
of man
○
(Accrediting Board for Engineering and
Technology)
The profession in which a knowledge of the
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technical, mathematical and natural sciences
gained by study, experience and practice is
applied with judgement to develop ways
economically in order to utilize the materials
and forces of nature for the benefit of
mankind.
Engineer: A person applying his mathematical
●
and science knowledge properly for mankind.
○
of workers
Middle-level Management
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manage through other managers
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make plans of intermediate range to achieve
the long-range goals set by top management
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It is a discipline not an art
establish departmental policies, evaluate
the performance of subordinate work units
Is it an art or profession?
Modern definition of Engineering by ABET
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Short-range operating plans governing what
& their managers
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provide integrating and coordinating
function
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orchestrate the decisions & activities of
first-line management
Top-level Management
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represent the whole enterprise
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responsible for defining the character
mission and objectives of the enterprise
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establish & review criterias for long-range
plans
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evaluate the performance of major
departments
What is Management?
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Directing the actions of a group to achieve a
goal in most efficient manner
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Getting things done through other people
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Process of achieving organizational goals by
working with and through people and
organizational resources
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●
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Top-level management
○
President
○
Executive
○
Vice-President)
Middle-level management
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Chief Engineer
○
Division Head etc.
First-line management
○
Foreman
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Supervisor
○
Section Chief
LECTURE 2: MANAGERIAL SKILLS
Managers need three (3) types of skills
Technicals: specific subject related skills such as
engineering, accounting, etc
Interpersonal: skills related to dealing with others
and leading, motivating or controlling them
Conceptual: ability to realize the critical factors
that will determine an organization's success or
failure. Ability to see the forest in spite of the
trees.
Leading - influencing people to achieve the
objective
Controlling - measuring and correcting the
activities
Management can be classified into one of four
categories:
1.
An organizational or administrative process
2. A science, discipline or art
Managerial Roles
What Managers Do?
●
Interpersonal roles
Figurehead role: outward relationship
Leader role: downward relation
3. The group of people running an organization
4. An occupational career
Management: Is it an art or science?
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Management has a body of specialized
knowledge
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This knowledge need not to be obtained in
formal disciplined programs
Liaison role: horizontal relation
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Informational roles
○
Somewhere between art and science
○
(Engineering + Management =
Discipline + Art)
○
Monitor role: collects information about
science
internal operations and external events
Disseminator role: transforms information
What is Engineering Management?
internally to everybody in organization (like
●
Again somewhere between art and
Directing supervision of engineers and/or
a telephone switchboard)
engineering functions.
Spokesman role: public relations
Definition of Engineering Manager:
Decisional roles
Entrepreneurial role: initiates changes,
assumes risks, transforms ideas into useful
products.
An engineer possessing both abilities to
apply engineering principles and skills in organizing
and directing people and projects.
Why Engineering Managers?
Disturbance handler role: deals with
Competition is global and companies need
unforeseen problems and crisis
these people to compete successfully.
Resource allocator role: distributing
The advantages of having an engineer as a
resources
Negotiator role: bargains with suppliers,
customers etc. in favor of entreprise
Functions of Managers
Planning - selecting missions and objectives,
requires decision making
Organizing - establishing the structure for the
objective
Staffing - keeping filled the organization structure
manager:
1.
Has the ability of thinking systematically
2. Has technical, mathematical & natural
science talents
3. Seizes the research & development as an
opportunity, not a cost
Advantages of Understanding Technology in Top
Management:
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Understanding the business thoroughly
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Understanding technology driving the
business today and technology that will
change the business in future
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Treating Research and Development as an
investment not an expense to be minimized
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Spending more time on strategic thinking
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Dedicating a customer’s problem (true
marketing via customer relations)
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Place a premium on innovation
Non-routine Decisions
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Unstructured and Novel Situations
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Non Recurring Nature
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High Level of Uncertainty
Objective versus Bounded Rationality
A Decision is objectively rational if it is the
correct behavior for maximizing given values in a
given situation.
Rationality requires:
LECTURE 3: DECISION MAKING
1.
consequences after a choice
Relation to Planning
Decision Making: Process of making a conscious
choice between 2 or more alternatives producing
most desirable consequences (benefits) relative to
unwanted consequences (costs).
Decision Making is essential part of Planning
A complete knowledge and anticipations of
2. Imagination since Consequences lie in future
3. A choice among all possible alternatives.
We can only talk about bounded rationality
Objective versus Bounded Rationality
Objective Rationality looks for the ‘best’ solution
Planning: Decision in advance what to do, how to do,
whereas Bounded Rationality looks for the ‘good
when to do and who is to do it.
enough’ solution.
Required also in:
Management Science Characteristics
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Designing and Staffing and Organization
1.
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Developing Methods of Motivating
2. Team Approach
Subordinates
3. Emphasis on the Use of Formal
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A System View of Problem
Identifying Corrective Actions on Control
Mathematical Models and Statistical and
Process
Quantitative Methods
Occasions for Decision
Models and Their Analysis
Occasions are in 3 distinct fields:
Model: Abstraction and Simplification of Reality
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From Authoritative Communications from
(Designed to include Essential Features)
Simplest Model
superiors
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From Cases Referred for Decision by
Subordinates
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From Cases Originating in the Initiative of
the Executive
○
Most important test of executive
Types of Decisions
Routine Decisions (e.g. payroll processing, paying
suppliers etc)
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Recur frequently
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Involve Standard Decision Procedures
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Has a Minimum of Uncertainty
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Structured Situations
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net income = revenue – expenses - taxes
5 Steps of Modeling
Real World
1.
Formulate Problem (Define objectives,
variables and constraints)
2. Apply the Model’s Solution to Real System,
Document its Effectiveness
Simulated (Model) World
3. Construct a Model (simple but realistic
representation of system)
4. Test the Model’s Ability
5. Derive a Solution from Model
LECTURE 4: ORGANIZING
Review
Proprietorship, Partnership, Corporation,
and Cooperative
Organizing Process:
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Comparison of subdivision logics
(Departmentalization)
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Raising money for growth is easy
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Easiness in transfer of ownership and
change management
Legal Forms of Organization:
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More difficult and expensive to organize
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Subject to many rules and regulations
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More taxing is applied
Most large organizations are corporations
Cooperatives
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or customers
Span of Control, nature of line, staff and
service relationships
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Earnings are usually distributed tax free
Effect of technology on organization
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Board members managing cooperative are
elected by all members
structure
Legal Forms of Organization
Sole Proprietorship
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Owned and operated by one person
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Simple to organize and shut down
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Has few legal restrictions
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Owner is free to make all decisions
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Profit is taxed only once (in USA)
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Unlimited responsibility for debts
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Difficult to raise capital for growth of
business
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Duration of business is limited to the life of
proprietor
Partnership
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Association of two or more partners
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Has relatively few legal restrictions
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Permits the pooling the managerial skills and
judgements
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Divided decision making and authority might
cause problems
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Partners have unlimited liability for debts
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In a limited partnership, there must be at
least one general partner
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Limited partners are limited only to the
extent of their investment
Most common form of business organization:
Corporations
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Legal entities owned by shareholders
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Shareholder has no liability beyond loss of
the value of stock
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Special type of organization owned by users
Have perpetual life as long as submitting
necessary reports
Organizing
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To work efficiently in a team, members
need to know the parts to play (roles) and
how these roles relate to one another.
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Designing and maintaining these systems of
roles is called organizing
Organizing involves:
1.
Identification and Classification of
Required Activities
2. Grouping of Activities to Obtain Objectives
3. Assignment of a manager to each group with
the authority
4. Provision for Coordination horizontally and
vertically
Organizing by Key Activities:
Effective organizing must first consider
basic mission and long-range objectives established
for the organization and the strategy.
Therefore, key activities have to be
considered first
Ask three questions to identify key activities:
1.
In what area is excellence required to
obtain the company’s objectives?
2. In what areas would lack of performance
endanger the results?
3. What are the values that are truly
important to us in this company?
After establishing key activities
Two additional works are suggested:
1. Decision Analysis
What decisions are needed to obtain
effectiveness in key activities?
(Futurity, effectiveness on the functions,
frequency and results are addressed)
2. Relations Analysis
With whom the person in charge of an
activity will have to work?
(Find the crucial relations for success and
effectiveness. These relations should be
easy, accessible, and central to the unit.
Patterns of Departmentalization
Primitive Organization