Engineering Management: Controlling Function

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Questions and Answers

What is the primary focus of internal benchmarking?

Using external industry standards to measure performance

Comparing financial ratios with competitors

Analyzing customer service mechanisms

Setting performance standards based on internal metrics (correct)

Which of the following best describes external benchmarking?

It uses industry-wide references to set performance standards. (correct)

It aims solely to improve employee productivity.

It focuses on internal operational processes.

It measures performance against an organization's past results.

In the example provided, what performance standard did Company X set for 2015 based on internal benchmarking?

$165,000 per employee (correct)

$140,000 per employee

$170,000 per employee

$150,000 per employee

What characteristics are considered in external benchmarking according to the provided information?

Financial ratios and quality control measures Signup and view all the answers

Why is it important to monitor additional company activities in benchmarking?

To ensure comprehensive evaluation of company performance Signup and view all the answers

What is the primary reason the manager believes it is better for the morale of the team?

To ensure all team members feel equally valued Signup and view all the answers

What should the director do in response to the manager's selective nomination for promotions?

Reprimand the manager and order a new nomination process Signup and view all the answers

Which barrier is not mentioned as preventing good standards from being developed?

Inadequate training of evaluators Signup and view all the answers

Which of the following best defines benchmarking?

A method of defining performance standards relative to references Signup and view all the answers

What could be the consequence if the manager refuses to repeat the nomination process?

It will be registered as an incidence of disobedience Signup and view all the answers

What is the primary purpose of the controlling function in engineering management?

To assess and regulate work in progress Signup and view all the answers

Which activity is NOT part of the controlling function?

Developing strategies Signup and view all the answers

Why is managerial control considered crucial for implementation?

It ensures effective execution of plans Signup and view all the answers

What does setting standards in the controlling function primarily involve?

Specifying criteria for measurement Signup and view all the answers

If an engineering manager fails to implement control effectively, what is a potential outcome?

Poor performance of the project Signup and view all the answers

In which stage of the controlling process is performance compared against the standards?

Evaluating performance Signup and view all the answers

What could happen if managerial delegation is ineffective?

Diminished managerial leadership Signup and view all the answers

Which of the following is an expected outcome of setting performance standards?

Clear expectations for results Signup and view all the answers

What is a common rating method used for employee performance evaluation?

A ranking scale from one to five categories Signup and view all the answers

What should a manager do if an employee is rated as poor or a failure?

Clearly communicate the performance issues Signup and view all the answers

What is NOT a reason for performance deficiencies?

Possessing excessive technical capabilities Signup and view all the answers

Which of the following is a short-term action recommended to address performance deficiencies?

Getting assistance from outside consultants Signup and view all the answers

Which action can be taken to ensure long-term improvement in employee performance?

Modifying work procedures and policies Signup and view all the answers

Correcting employee mistakes should focus on what aspect?

Future progress and growth Signup and view all the answers

Which of the following is likely to lead to performance deficiency?

Lack of feedback Signup and view all the answers

What is the purpose of measuring performance in the context of controlling?

Rectifying and improving work efforts and results Signup and view all the answers

What is the first step in measuring performance?

Collecting, storing, analyzing, and reporting information Signup and view all the answers

Which tool is NOT typically used to measure performance in routine work?

Employee satisfaction survey Signup and view all the answers

What is a key element in the evaluation of employee performance?

Providing recognition for good performance Signup and view all the answers

In the context of evaluating performance, what does deviation outside of tolerance limits signify?

Performance requiring corrective action Signup and view all the answers

How is performance typically documented after measurement?

By summarizing data and forecasting results Signup and view all the answers

What step is involved in both measuring and evaluating performance?

Setting standards to compare results Signup and view all the answers

Which of the following does NOT fall under the activities of controlling performance?

Issuing annual bonuses Signup and view all the answers

What needs to be established for effective performance evaluation?

Limits of tolerance for performance Signup and view all the answers

What is the purpose of target pricing in product development?

To determine prices based on competitor pricing Signup and view all the answers

What role do critical factors play in business management?

They are derived from historical successes and failures Signup and view all the answers

Why is setting gross margin targets important for a company?

It positions the company among the best performers in its industry Signup and view all the answers

What do best practices refer to in the context of corporate governance?

Results from experiences of companies in various fields Signup and view all the answers

Which of the following is an aspect of a balanced performance scorecard?

Incorporating external benchmarking Signup and view all the answers

How does external benchmarking influence corporate performance standards?

It helps standardize metrics based on top industry performers Signup and view all the answers

What is implied by perfecting work processes in various business areas?

Striving for continuous improvement and efficiency Signup and view all the answers

What is the main outcome for a company that sets and meets a specific gross margin target?

Recognition as an industry leader Signup and view all the answers

Study Notes

Engineering Management: The Controlling Function

The controlling function in engineering management involves activities to assess and regulate work progress.
This function aims to maximize productivity and prevent poor performance.
Effective managerial control is crucial for successful project, program, or plan implementation.
Lack of adequate control can hinder managerial delegation and leadership effectiveness.

Activities of Controlling

Setting standards: Defining criteria for measuring work and its results, specifying expected outcomes.
Measuring performance: Systematically collecting, storing, and analyzing data to assess progress against standards.
Evaluating performance: Comparing performance against standards, recognizing deviations, addressing shortcomings.
Controlling performance: Taking corrective actions to improve performance based on evaluation results.

Types of Standards

Technical: Metrics related to quality, quantity, MTBF, and maintenance.
Historical: Primarily based on past performance records.
Market: Related to competition, sales, ROI, analysis by financial institutions.
Planning: Relating to objectives, programs, schedules, budgets, and company policies.
Safety: Metrics related to safe facility operation, complying with safety regulations.
Equal employment opportunity (EEO): Initiatives ensuring fairness and equality in the workforce.

Setting Standards (continued)

Standards are typically defined in terms of quantity, quality, acceptance, and timing.
They should consider customer perspectives and company goals.

Measuring Performance

Recording and reporting work progress and outcomes.
Collection, storing, and analyzing data.
Comparison of performance data to established standards.

Tools for Measuring Performance

Time study, work sampling, performance rating (used in routine work).

Evaluating Performance

Assessing work progress, completed tasks, and providing feedback.
Establishing tolerance limits and deviations from standards.
Providing appreciation and recognition for good performance.
Addressing performance deficiencies promptly and effectively.

Controlling Performance

Rectifying and improving work based on evaluation outcomes.
Potential reasons for performance deficiencies: Lack of clearly defined standards or feedback, insufficient technical skills, or poor work ethic.
Short-term corrective actions to improve performance (e.g., assistance from outside consultants, temporary staff).
Long-term solutions to prevent repetition (policy changes, training programs).

Benchmarking

A method of defining performance standards by comparing against internal or external references.
Internal benchmarking: Comparing performance to internal standards within a company.
External benchmarking: Comparing performance to industry standards or competitors' performance.

Examples of performance standards

Financial ratios (e.g., ROI, ROA, ROS)
Production metrics (e.g., units per employee)
Sales metrics (e.g., per employee)
Quality metrics (e.g., defects per unit)
Service metrics (e.g., customer response time)
Time metrics (e.g., response time, cycle time, lead time).

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Description

This quiz focuses on the controlling function in engineering management, detailing its significance in assessing and regulating work progress. It covers key activities such as setting standards, measuring performance, evaluating results, and implementing corrective actions to ensure effective management and project success.