EIM2301 Engineering Management Lecture 02 PDF

10/13/2024 EIM2301 Engineering Management Lecture 02 The Functions of Engineering Management: The Planning Function (1) 1 Outline 1 Introduction 2 Types of Planning 3 Who Should Do the Planning...

10/13/2024 EIM2301 Engineering Management Lecture 02 The Functions of Engineering Management: The Planning Function (1) 1 Outline 1 Introduction 2 Types of Planning 3 Who Should Do the Planning? 4 Inexact Nature of Strategic Planning 5 Planning Roles of Engineering Managers EIM2301 Engineering Management Noha M. Galal, Ph.D. 2 1  10/13/2024 Introduction Planning, a major function of engineering management, is the work done by an engineering manager to predetermine a course of action. Planning defines who will do what, how, where, when, with which resources, and for what objectives. The purpose of planning is to enhance the effectiveness and efficiency of the company by providing focus and direction EIM2301 Engineering Management Noha M. Galal, Ph.D. 3 Types of Planning Planning Strategic Operational define the specific tactics and action sets the goals, purpose, and steps needed to accomplish the goals direction of a company specified by top management top-level engineering managers middle level (managers and directors) and lower level 5–10 years (supervisors and group leaders) EIM2301 Engineering Management Noha M. Galal, Ph.D. 4 2  10/13/2024 Strategic Planning strategic planning ensures that the company applies its resources— core competencies, corporate know-how, proprietary technologies, skilled manpower resources, business relationships, and so on— effectively to achieve the short- and long-term goals of the company. EIM2301 Engineering Management Noha M. Galal, Ph.D. 5 Questions answered by Strategic Planning 3. Does the company need to 1. What are the company’s change its product portfolio, 2. What business should the mission, vision, and value market coverage, production company be in? system? system, or service capabilities? If so, why? 5. What business networks 4. What specific goals should should the company establish the company accomplish, by via supplier alliances, co- when, with what investment, marketing partnerships, and by which core production joint ventures, and competencies? other forms of collaboration? EIM2301 Engineering Management Noha M. Galal, Ph.D. 6 3  10/13/2024 Strategic Management: Terminology The mission statement of a company defines why the company exists in the first place, which market segments it serves, and what it will do to serve them. The vision statement spells out the aspirations of the company with respect to its asset size, market position, business standing, ranking in industrial sectors, and other such metrics. The value system is the externalization of five or six specific corporate values emphasized by the company. Some typical values favored by U.S. industrial companies include quality, innovation, social responsibility, stability, honesty, quality of life, and empowerment. EIM2301 Engineering Management Noha M. Galal, Ph.D. 7 Examples Mission: Vision: “to provide access to the world's information in one click.“ Values: EIM2301 Engineering Management Noha M. Galal, Ph.D. 8 4  10/13/2024 Tesla: Mission and Vision Mission: To accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible. Vision: To create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles. EIM2301 Engineering Management Noha M. Galal, Ph.D. 9 College of Engineering and Technology (CET)- AASTMT EIM2301 Engineering Management Noha M. Galal, Ph.D. 10 5  10/13/2024 College of Engineering and Technology (CET)- AASTMT EIM2301 Engineering Management Noha M. Galal, Ph.D. 11 Questions answered by Strategic Planning (cont.) 7. What core technologies 6. Which new products should the company should the company offer? maintain, develop, acquire, or utilize? 9. How should the company 8. Which performance tackle the daunting challenge metrics are to be used for of making innovation central monitoring the company’s to the company’s products, progress? processes, or relationships? EIM2301 Engineering Management Noha M. Galal, Ph.D. 12 6  10/13/2024 Operational Planning Managers and directors break down the company goals into short- term objectives. Supervisors and group leaders specify events and tasks that can be implemented with the least amount of resources within the shortest period of time. Operational planning ensures that the company applies its resources efficiently to achieve its stated goals. EIM2301 Engineering Management Noha M. Galal, Ph.D. 13 Operational Planning 2. What is the best way 1. What is the most to link up with three top efficient way of suppliers in the accomplishing a project marketplace for needed with known objectives? parts? 3. What are the operational guidelines for performing specific work? EIM2301 Engineering Management Noha M. Galal, Ph.D. 14 7  10/13/2024 Who Should Do the Planning? In the past: high-level corporate planning departments made up of full-time planners to devise business strategies. Key weaknesses of this approach was that the strategic planners, while being superior analysts of hard business data, were outsiders insofar as the various specific business functions (marketing, production, engineering, and procurements) were concerned. EIM2301 Engineering Management Noha M. Galal, Ph.D. 15 Who Should Do the Planning? The most effective way of creating strategic plans for specific businesses or activities is to entrust such planning to those who are intimately involved with the particular businesses and activities. EIM2301 Engineering Management Noha M. Galal, Ph.D. 16 8  10/13/2024 Inexact Nature of Strategic Planning Requirements: critical thinking Synthesis (intuition and creativity) EIM2301 Engineering Management Noha M. Galal, Ph.D. 17 Major Difficulties of Strategic Planning Prediction of Applicable Random the future experience process of and insight strategy making EIM2301 Engineering Management Noha M. Galal, Ph.D. 18 9  10/13/2024 Why Do Strategic Plans Fail? 1. Not thinking strategically 2. Failure to identify critical success factors for the company. 3. Not having both an internal and an external focus. 4. Lack of long-term commitment from company management. 5. Reluctance of senior management to accept responsibility for tough decisions. 6. Not leaving enough flexibility in the plans, thus causing difficulties in adjusting to the changing environment. 7. Failure to properly communicate the plan and thus not securing support and management buy-in. EIM2301 Engineering Management Noha M. Galal, Ph.D. 19 Methods Used to Plan Strategically Based on data, managers invoke general administrative and economic principles to a specific situation, weigh alternatives, Deduction and make rational choices needs a lot of data, is useful for mature and stable industries Trial & Experiment with several options and select one. good for ambiguous, novel, or complex situations in order to Error experiment and learn from the experience. Think back to a familiar situation, draw lessons from it, and Analogies apply those lessons to the current situation. Be careful! EIM2301 Engineering Management Noha M. Galal, Ph.D. 20 10  10/13/2024 Technique to Gain Strategic Insights Competitors’ offerings A: our advantage How can we devise B: Points at parity strategies that would C: competitors’ strength increase area A, while reducing D and F? G E: Area for growth D, F, G: values produced by the company and the competitors that the customers do not need D C B F A E Company’s offerings Customers’ needs EIM2301 Engineering Management Noha M. Galal, Ph.D. 21 Technique to Gain Strategic Insights (cont.) A How big and sustainable are our advantages? Are they based on distinctive capabilities? B Are we delivering effectively in the area of parity? C How can we counter our competitor’s advantages? E Ask customers how our strengths can be made useful to them? EIM2301 Engineering Management Noha M. Galal, Ph.D. 22 11  10/13/2024 Planning Roles of Engineering Managers Engineering managers at the middle and low levels will predominantly devise operational plans to achieve the short-term goals of the unit or department. As engineering managers move up the corporate ladder, they are expected to participate increasingly in strategic planning. EIM2301 Engineering Management Noha M. Galal, Ph.D. 23 Planning Training (1) analyzing hard data (industry, competition, and marketing); (2) offering alternative interpretations of the data available; (3) raising insightful questions to challenge conventional assumptions; and (4) communicating the resulting outputs of planning—programs, schedules, and budgets—to help effectuate buy-in from others. EIM2301 Engineering Management Noha M. Galal, Ph.D. 24 12  10/13/2024 Planning Tasks Examples Time Projects and Management Programs Corporate Proactive Know-How Tasks EIM2301 Engineering Management Noha M. Galal, Ph.D. 25 13