Engineering Management and Specialization Levels

Areas of Specialization

• Level Two includes engineers involved in moderate-level engineering jobs like transportation companies.
• Level Three includes engineers engaged in high-level engineering jobs such as construction firms.

Types of Organization and Management Skills Required of Engineers

• Communication facilities involve engineers who work in areas where a moderate degree of engineering skills are required.
• Research and Development include engineers who are actively engaged in understanding and codifying knowledge into usable theories. The engineers in this field also use their acquired knowledge to convert a product concept into a finished physical item.
• Testing involves engineers who work in units where new products or parts are tested for functionality.
• Manufacturing involves engineers who directly oversee production personnel or are responsible for the product.
• Construction involves engineers who are either in charge of construction personnel or are responsible for the quality of the construction process.
• Sales involves engineers who assist the company's customers in meeting their needs, particularly those requiring technical expertise.

Types of Managers

• Managers play a vital role in an organization and have a "school of figure management."
• The word “manage” originates from the Italian word “maneggiare,” which means "to handle," especially to handle or train horses.

Network Models

• Network models are used to manage large, complex tasks by breaking them into smaller, independent segments.
• Program Evaluation Review Technique (PERT) is a technique that uses three time estimates to schedule, monitor, and control large and complex projects.
• Critical Path Method (CPM) is a technique that uses only one time factor per activity to schedule, monitor, and control large and complex projects.

Sampling Theory

• Sampling theory is a quantitative technique used to statistically determine samples of populations for various processes, including quality control and marketing research.

Statistical Decision Theory

• Decision theory refers to the rational approach to problem-solving in situations with limited or partial information.
• The process of decision-making involves evaluating alternatives, however, Bayesian analysis is a crucial aspect that should be considered when evaluating alternatives.
• Bayesian analysis aims to revise and update initial assessments of event probabilities generated by alternative solutions.
• Bayes criterion selects the decision with the maximum expected payoff or the minimum expected loss, based on probabilities assigned to the decision rule.

Forecasting

• Forecasting involves making decisions with future implications for engineer managers.
• It is defined as the collection of past programming, useful as a decision-making tool for supply and demand.

Planning

• Planning is a process of making decisions, which involves considering all alternatives and related facts.
• It also includes determining the who, what, where, when, and how of task execution, as well as the standards for completion.
• Planning is the process of selecting the best course of action to achieve desired results.

The Planning/Decision-Making Process

• When multiple activities are overwhelming, it is essential to use planning to minimize mistakes in decision-making.
• Planning provides a systematic approach to achieving desired outcomes and acts as a guide during implementation.

A Challenge in Planning

• An engineering firm encountered a situation where the hiring process cost more than double the expected amount compared to other firms for the same number of new hires.

Planning at Various Management Levels

• Strategic planning, undertaken by top management, involves setting long-range goals and strategies for their achievement.
• Intermediate planning, undertaken by middle management, focuses on implementing goals defined by top management.
• Operational planning, undertaken by lower management, focuses on executing tasks related to specific operations.

Strategic Planning

• Strategic planning is a process of determining the major goals of an organization and the policies and strategies for achieving these goals.
• It involves analyzing the organization's existing resources, considering external opportunities and threats, and developing a strategic plan outlining long-range goals and actions to achieve them.

Product or Market Organization

• Product or market organization structures group employees around specific products or customer segments to foster customer focus and coordination.
• These structures provide advantages like customer focus, coordination, responsibility, and product development opportunities.
• They also have disadvantages like resource duplication, reduced technical depth, poor coordination, limited top management control, and competition for resources.

Functional Organization

• Functional organization structures are effective for smaller firms where key activities revolve around distinct skills and specialization.
• These structures promote efficiency in departments like production, marketing, and finance.
• Staff departments provide specialized skills supporting line departments like strategic planning, labor relations, research, accounting, and personnel.

Matrix Organization

• Matrix organization structures involve multiple channels of command, budgeting, and performance reviews.
• They ensure the alignment of resources with projects while maintaining overall organizational goals.

Staff Departments

• Staff departments provide specialized support services to line departments, including strategic planning, labor relations, research, accounting, and personnel.