Engineering Management Principles PDF

**ENGINEERING MANAGEMENT PRINCIPLES** **Management is\...** ► Getting things done through **people**. ► The process of achieving organizational goals by engaging in the four major functions of **planning & decision-making, organizing & staffing, directing/leading, and controlling**. ► Identifyin...

**ENGINEERING MANAGEMENT PRINCIPLES** **Management is\...** ► Getting things done through **people**. ► The process of achieving organizational goals by engaging in the four major functions of **planning & decision-making, organizing & staffing, directing/leading, and controlling**. ► Identifying a **\"force\"/group of people** whose job is to direct the effort and activities of **other people** towards a common organizational objective. ► The **performance** of conceiving and achieving **desired results** by means of **group effort** consisting of utilizing **resources**, that will determine the success and failure of an organization. **Engineering is\...** ►The **profession** in which a knowledge of the mathematical and natural sciences gained by study, experience, and practice is applied with judgment to develop ways to utilize, economically, the material and forces of nature for the benefit of mankind. ►**Engineer is a person** who is applying his/her mathematical and science knowledge properly to \`solve practical problems. **Engineering Management is........** ► is a **process of leading and controlling a technical function**. ► is similar to the other definitions of management, but a slant towards technical issues **Functions of Management** **Planning & Decision-Making** - Involves **selecting goals** **and objectives**, as well as the action to achieve them; it **requires decision-making**, that is choosing the "best" from among alternatives. **Organizing** - Involves establishing an **intentional structure of roles** for people to fill in an organization. - The process of **allocating and arranging human and non-human resources** so that plans can be carried out successfully. **Staffing** - Involves filling and keeping filled, the **positions** in the organization structure. - Process by which managers select, train, promotes, and retires subordinate. **Directing/Leading** - **Influencing** people so that they will **contribute** to organizational and group goals. **Controlling** - **Measuring** and **correcting** individual and organizational performance to ensure that events conform to plans - **Facilitates** the accomplishment of plans. - The **process** of regulating organizational activities so that **actual performance** conforms to expected organizational **standards**. **Managerial Levels** ► **Strategic Managers** who are ultimately responsible for the entire organization. Typical titles include CEO, "President", "Executive Vice President", "Executive Director", "Senior Vice President", "Vice President". ►**Tactical Managers** located beneath the top levels of the hierarchy who are directly responsible for the work of managers at lower levels. Title include "Manager", "Director of", "Chief", "Department Head", "Division Head". ►**Operational Managers** at the lowest level of hierarchy who are directly responsible for the work of operating (non-managerial) employees. Often have titles that include the word "Supervisor". **Managerial Roles** ► **Unrelenting Pace** - Managers began working the moment they arrived at the office in the morning and kept working until they left at night. (e.g. Rather than taking coffee breaks they usually drank their coffee while they attended meetings, lunches were almost eaten in the course of formal of informal meetings. ► **Variety, and Fragmentation** - Managers handled a wide variety of issues throughout the day ► **Verbal Contacts and Networks** - Managers showed a strong preference for verbal communication and relied heavily on networks. A network is a set of cooperative relationships with individuals whose help is needed in order for a manager to function effectively. **Issues would-be managers should consider** ►**The increase workload** - 70-80 hours per week or even longer. ►**The challenge of supervising former peers.** - One of the toughest issue for new managers. ►**The headache of responsibility for other people.** ►**Being caught in the middle.** - Caught between upper management and workforce. **Excellence Managers have/are** ►**Good communicator** -- acquire the skills or listening, speaking, reading, and writing. ►**Flexible** -- multi-tasker, imaginative and innovative. ►**Integrity** -- "living it myself before leading others" ►**Gratitude** -- "giving credits where it is due" ►**Committed** -- willing to do whatever it takes attain organizational success. ►**People Oriented** -- knows that people's feelings are important. ► **Focused** -- try to see the "big picture" within the forest details. **Scope of Management** **Production Management** ►produce the right goods in right quantity at the right time and at the right cost. Consist of following activities: - Designing the product - Location & Layout of plant and building - Operations of purchase & storage materials - Planning & control of factory operations - Repairs & Maintenance - Inventory control and quality control - Research and development etc.. **Marketing Management** ►It refers to the identification of consumer\'s needs and supplying them the goods and services which can satisfy those, wants. These activities are follows: - Marketing Research to determine the needs and expectations of consumers - Planning and developing suitable products - Setting appropriate prices - Selecting the right channels of distribution - Promotional activities like advertising salesmanship to communicate with the customers. **Financial Management** ► seeks to ensure the right amount and type of funds to business at the right time and at reasonable cost. The activities are as follows: - Estimate the volume of funds requires for long term and short term needs of business. - Selecting the appropriate sources of funds - Raising the required funds at the right time - Ensuring proper utilization and allocation of raised funds - Administration of earnings **Personal Management** ►It involves planning, organizing, directing & controlling the procurement, development, compensation, maintenance etc\... of the human resources in an enterprise. It consists of the following activities: - Manpower planning - Recruitment - Selection - Training & Development - Performance Appraisal - Compensation & promotion - Employee services & benefits - Maintaining personnel records etc\... **DECISION MAKING** **Decision** - A choice made from available alternatives **Decision Making** - Refers to the process by which managers analyze issues, evaluate alternatives, and choose the most appropriate course of action to achieve organizational objectives - The process of identifying problems, opportunities and then resolving them. **Types of Decision Making** 1. **Programmed & Non Programmed Decisions** - **Programmed Decisions** are made in response to a situation that has [occurred often enough] to enable managers to develop decision rules that can be applied on the future. Recurring organizational problems - **Non programmed Decisions** are made in response to a situation that is [unique,] poorly defined and largely unstructured and has important consequences. Deal with unusual problems 2. **Major and Minor Decisions** 3. **Routine and Strategic Decisions** - **Routine Decisions** similar to Programmed Decision Making. Repetitive and do not need analysis and evaluation. [Made by middle level management] - **Strategic Decisions** related to the policy of the organization**. [ ]**[Made by High level management] 4. **Organizational and Personal Decision** - **Organizational Decision** the type of decision reflects policy of the organization**.** - **Personal Decision** manager's individual/own decision. 5. **Individual and Group Decision** - **Individual Decision taken by a single individual.** - **Group Decision conduct committee meetings** 6. **Policy and Operative Decision** - **Policy Decision** critical. [Top level management] - **Operative Decision** day to day operations. [Low level management] 7. **Long Term, Departmental and Non-economic Decision** - **Long Term Decision** taken for a longer period and high risk involvement - **Departmental Decision r**elated to particular department in the company - **Non-economic Decision** technical values. Moral behavior **Decision Making Process** **STEP 1- Identify the Decision** **STEP 2- Gather Relevant Information** **STEP 3- Identify the Alternatives** **STEP 4- Weigh the Evidence** **STEP 5- Choose Among Alternatives** **STEP 6- Take Action** **STEP 7- Review your Decisions & Its Consequences** **Skills need for Decision Making** 1. **Analytical Prowess** 2. **Problem Solving Powerhouse** 3. **The Art of Gathering Information** 4. **The Foresight Factor** 5. **Emotional Intelligence** 6. **The Value of Clear Communication** 7. **Embrace Calculated Risks** 8. **Learn form every choice** **FUNCTIONS OF MANAGEMENT** **PLANNING** **Planning at Various Management Levels** - **Top Management Level (Strategic Planning)** - **Middle Management Level (Intermediate Planning)** - **Lower Management Level (Operational Planning)** **Planning Process** 1. **Setting Organizational, Divisional, or Units goals** 2. **Developing Strategies or Tactics to reach those goals** 3. **Determining Resource needed** 4. **Setting Standards** **Workforce Development Planning** - All about creating a diverse, high-performance workforce made up of loyal and satisfied employees**.** **Product and Services Planning** - Is a function of the marketing, finance and operations departments. The marketing department is responsible for discovering what targets customers want and need **Expansion Plan** - Good business owners and managers continually lay plans for the next stages of growth in their companies. **Financial Planning** - Companies engage in financial planning activities the same as individuals and households. **Functional Area Plans** 1. **Marketing plan-** this is the written document or blueprint for implementing and controlling an organization\'s marketing activities related to a particular marketing strategy. 2. **Production plan -** this is a written document that states the quantity of output a company must produce in broad terms and by product family. 3. **Financial plan -** it is a document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends directions for financial activities. 4. **Human resource management plan -** it is a document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company\'s strategic plan. **Plans with time Horizon** 1. **Short-range plans -** these are plans intended to cover a period of less than one year First-line supervisors are mostly concerned with these plans. 2. **Long-range plans -** these are plans covering n time span of more than one year. These are mostly undertaken by middle and top management. **Plans According to Frequency of Use** **Standing Plans --** are plans that are used again and again, and they focus on managerial situations that recur repeatedly. Classified as follows: - A budget, according to Weston and Brigham, is a plan which sets forth the projected expenditure for a certain activity and explains where the required funds will come from. - A program is a single-use plan designed to coordinate a large set of activities. - A project is a single-use plan that is usually more limited in scope than a program and is sometimes prepared to support a program **Single Use Plans --** are specifically developed to implement courses of action that are relatively unique and are unlikely to repeated Classified as follows: - Policies-they are broad guidelines to aid managers at every level in making decisions about recurring situations or function. - Procedures-they are plans that describe the exact series of actions to be taken in a given situation. - Rules-they are statements that either require or forbid a certain action. **Parts of the Various Functional Area Plans** **The Contents of the Marketing Plan** - The Executive Summary - which presents an overall view of the marketing project and its potential. - Table of Contents - Situational Analysis and Target Market - Marketing Objectives; and Goals - Marketing Strategies - Marketing Tactics - Schedules and Budgets - Financial Data and Control **The Contents of the Production Plan** ►The production plan must contain the following: - The amount of capacity the company must have' - How many employees are required - How much materialmust be purchased **The Contents of the Financial Plan** - An analysis of the firm's current financial condition as indicated by an analysis of the most recent statements - A sales forecast - The capital budget - A set of pro forma (or projected) financial statements - The external financing plan **The Contents of the Production Plan** - Manager's inability to plan - Improper planning process - Lack of commitment to the planning process - Improper information - Focusing on the present at expense of the future - Too much reliance on the planning department - Concentrating on only the controllable variables