Engineering Management Notes PDF

ENGINEERING MANAGEMENT NOTES **[The Field of Engineering Management]** *Engineering as a Profession* The art of directing the great sources of power in nature, for the use and convenience of man. Engineers provide a public service not only in the goods and services they create for the betterment...

ENGINEERING MANAGEMENT NOTES **[The Field of Engineering Management]** *Engineering as a Profession* The art of directing the great sources of power in nature, for the use and convenience of man. Engineers provide a public service not only in the goods and services they create for the betterment of society, but also by placing the safety of the public high on their design criteria. Modern Definition of Engineering By ABET (Accrediting Board for Board for Engineering Technology) The profession in which a knowledge of the mathematical and natural sciences gained by study, experience, and practice which is applied with judgment to develop ways to utilize, economically, the materials and forces of the nature for the benefit of mankind. Engineer: A person applying his mathematical and science knowledge properly for mankind *Types of Engineers* Many engineering applications require Cross- pollination or integration of multiple disciplines. e.g Aerospace Engineers require knowledge of: Material science Electronic control Computers Production limitation Finance Logistic Customer service *The Functions of the Engineer* Engineers are expected to perform a variety of tasks depending on their specialization and job level. It is important to the engineer that he knows what is expected of him so that he may be able to perform his job effectively and efficiently Since prehistoric times, mankind has benefited from the various tools, equipment, and projects developed by engineers. \*Pantheon is famous for being the most preserved monument of ancient Rome. Among these are the following: - The stone bladed axe which was a very useful tool; and the irrigation system used to promote crop growing -- 6000 to 3000 B.C.; - The pyramids of Egypt -- 3000 to 600 B.C.; - Roadbuilding by the Romans -- 600 B.C. to 400 A.D. - The production of paper and gunpowder by the Chinese -- 100 A.D. to 1600 A.D.; - The production of steam engine and the spinning and weaving machinery -- 1601 A.D. to 1799 A.D.; and - The manufacture of cars and household appliances -- Modern Times. These contributions indicate that engineers have become an indispensable segment of the world's professions. Even as engineers are currently producing solutions to many of the difficulties faced by mankind, much is still expected of them. Engineer are still needed in the following specific problem concerns: ➡The production of more food for a fast growing world population; ➡ The elimination of air and water pollution; ➡Solid waste disposal and materials recycling; ➡The reduction of noise in various forms; ➡ Supplying the increasing demand for energy; ➡Supplying the increasing demand for mobility; ➡Preventing and solving crimes; and ➡Meeting the increasing demand for communication facilities. Specifically, the functions of engineering encompass the following areas: 1.Research - where the engineering is engaged in the process of learning about nature and codifying this knowledge into usable theories 2.Design and Development - where the engineer undertakes the activity of turning a product concept to a finished physical item 3.Testing - where the engineer in a unit where new products or parts are tested for workability 4.Manufacturing - where the engineer is directly in charge of production personnel or assumes responsibility for the product 5.Construction - where the construction engineer (a civil engineer) is either directly in charge of the construction personnel or may have responsibility for the quality of the construction process 6.Sales - where the engineer assists the company's customers to meet their needs, especially those that require technical expertise 7.Consulting - where the engineer works as consultant of any individual or organization requiring his services 8.Government - where the engineer may find employment in the government performing any of the various tasks in regulating, monitoring, and controlling the activities of various institutions, public or private 9.Teaching - where the engineer gets employment in a school and is assigned as a teacher of engineering courses 10.Management - where the engineer is assigned to manage groups of people performing specific tasks *Engineering Employment* The corporations and firms of the past no longer exist. Employment opportunities lie with companies of all sizes. Engineers of the future should expect to be constantly improving their skills and marketability. Continuing education, flexibility, and a willingness to shift employment will be required of successful engineers *Engineers in Various Types of Organization* It can be classified according to the degree of engineering jobs performed: 1.Level One: those with minimal engineering jobs like retailing firms 2.Level Two: those with moderate degree of engineering jobs like transportation companies 3.Level Three: those with a high degree of engineering jobs like construction firms At level one, the engineer will have a slim chance of becoming the general manager or president, unless of course, he owns the firm. The engineer manager may be assigned to head a small engineering unit of the firm. In level two firms, the engineer may be assigned to head the engineering division. The need for management skills will now be felt by the engineer manager. Level three firms provide the biggest opportunity for an engineer to become the president or general manager. *What is ENGINEERING MANAGEMENT?* It refers to the activity combining "technical knowledge with the ability to organize and coordinate worker power, materials, machinery, and money." McFarland identifies management as: ‣an organizational or administrative process ‣a science, discipline or art ‣the group of people running an organization ‣an occupational career When the engineer is assigned to supervise the work of even a few people, he is already engaged in the first phase of engineering management. His main responsibility is to lead his group into producing a certain output consistent with the required specifications. The top position an engineer manager may hope to occupy is the general managership or presidency of any firm, large or small. As he scales the management ladder, he finds that the higher he goes up, the less technical activities he performs, and the more management tasks he accepts. *MANAGEMENT* Management may be defined as the "creative problem solving-process of planning, organizing, leading, and controlling an organization's resources to achieve its mission and objectives. *Management Levels* Top-level management (president, executive vice president) Middle managers (chief engineer, division head etc.) First-line managers (foreman, supervisor, section chief) First line Directly supervise non-managers. Carry out the plans and objectives of higher management using the personnel and other resources assigned to them. Short-range operating plans governing what will be done tomorrow or next week, assign tasks to their workers, supervise the work that is done, and evaluate the performance of individual workers Middle Manage through other managers. Make plans of intermediate range to achieve the long-range goals set by top management, establish departmental policies, and set by top management, establish departmental policies, and evaluate the performance of subordinate work units and their managers. Provide and integrating and coordinating function so that the short-range decisions and activities of first-line supervisory groups can be orchestrated toward achievement of the long- range goals of the enterprise. Top Responsible for defining the character, mission, and objectives of the enterprise. Establish criteria for and review long-range plans. Evaluate the performance of major departments, and they evaluate leading management personnel to gauge their readiness for promotion to key executive positions. *Management Skills* Managers need three types of skills: Technical: 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 discern the critical factors that will determine as organization's success or failure. Ability to see the forest in spite of the trees. *The Process of Management* Management is a process consisting of planning, organizing, directing (or leading), and controlling. Management must seek to find out the objectives of the organization, think of ways on how to achieve them, decide on the ways to be adapted and the material resources to be used, determine the human requirements of the total job, assign specific tasks to specific persons, motivate them, and provide means to make sure that the activities are in the right direction. *Requirements for the Engineer Manager's Job* Depending on the type of products or services a firm produces, the engineer manager must have the following qualifications: 1\) a bachelor's degree in engineering from a reputable school; In some cases, a master's degree in engineering or business management is required; 2\) a few years experience in a pure engineering job; 3\) training in supervision; and 4\) special training in engineering management. *How one may become a successful ENGINEER MANAGER* Successful engineer managers do not happen as a matter of chance, although luck is a contributory factor. It is very important for the engineer manager to know the various factors leading to successful management. Kreitner indicates at least three general preconditions for achieving lasting success as a manager. They are as follows: 1\. Ability 2\. Motivation to Manage 3\. Opportunity - Managerial Ability It refers to the capacity of an engineer manager to achieve organizational objectives effectively and efficiently. - Effectiveness, according to Higgins, refers to a description of "whether objectives are accomplished", while efficiency is a description of the relative amount of resources used in obtaining effectiveness." - Motivation to Manage Many people have the desire to work and finish specific tasks assigned by superiors, but not many are motivated to manage other people so that they may contribution to the realization of the organization's objectives." Ability Managerial ability refers to the capacity of an engineer manager to achieve organizational objectives effectively and efficiently. Effectiveness, according to Higgins, refers to a description of \"whether objectives are accomplished\", while efficiency is a description of the relative amount of resources used in obtaining effectiveness. Motivation to Manage A management researcher, John B. Miner, developed psychometric instrument to measure objectively an individual's motivation to manage. The test is anchored to the following dimensions: 1\. Favorable attitude toward those in positions of authority, such as superiors. 2\. Desire to engage in games or sports competition with peers. 3\. Desire to engage in occupational or work-related competition with peers. 4\. Desire to assert oneself and take charge. 5\. Desire to exercise power and authority over others. 6\. Desire to behave in a distinctive way, which includes standing out from the crowd. 7\. Sense of responsibility in carrying out the routine duties associated with managerial work. Opportunity Successful managers become possible only if those having the ability and motivation are given the opportunity to manage. The opportunity for successful management has two requirements: 1\. Obtaining a suitable managerial job, and 2\. Finding a supportive climate once on the job **[MAKING DECISION]** *Be A Better Decision Maker* A key to success in management and in your career is knowing how to be an effective decision maker. *What is a Decision?* Decision---a choice among two or more alternatives *Decision-Making Process* Decision-Making Process Step 1: Identify a Problem Problem: an obstacle that makes it difficult to achieve a desired goal or purpose. Every decision starts with a problem, a discrepancy between an existing and a desired condition. Example: Amanda is a sales manager whose reps need new laptops. Decision-Making Process Step 2: Identify the Decision Criteria Decision criteria are factors that are important to resolving the problem. Example: Amanda decides that memory and storage capabilities, display quality, battery life, warranty, and carrying weight are the relevant criteria in her decision Decision-Making Process Step 3: Allocate Weights to the Criteria If the relevant criteria aren't equally important, the decision maker must weight the items in order to give them the correct priority in the decision. Example: The weighted criteria for Amanda's computer purchase are shown in Exhibit 2.2. Important Decision Criteria: Example Decision-Making Process Step 4: Develop Alternatives List viable alternatives that could solve the problem. Example: Amanda identifies eight laptops as possible choices (shown in the next figure). Example: Possible Alternatives  Decision-Making Process Step 5: Analyze Alternatives STEP 5: Once you identify the alternatives you need to analyze them using the criteria established in Step 2. Decision-Making Process Step 6: Select an Alternative STEP 6: Choose the alternative that generates the highest total in Step 5. Example: Evaluation of Alternatives Decision-Making Process Step 7: Implement the Alternative Put the chosen alternative into action. Convey the decision to those affected and get their commitment to it. Decision-Making Process Step 8: Evaluate Decision Effectiveness Evaluate the result or outcome of the decision to see if the problem was resolved. If it wasn't resolved, what went wrong? *Decisions Managers May Make:* Planning and Organizing  Leading and Controlling *Rationality* Rational Decision Making: choices that are logical and consistent and maximize value Assumptions of rationality: -- Rational decision maker is logical and objective -- Problem faced is clear and unambiguous -- Decision maker would have clear, specific goal and be aware of all alternatives and consequences -- The alternative that maximizes achieving this goal will be selected -- Decisions are made in the best interest of the organization *Bounded Rationality* Bounded rationality: decision making that's rational, but limited by an individual's ability to process information Satisfice: accepting solutions that are "good enough" *Intuition* Intuitive Decision Making: making decisions on the basis of experience, feelings, and accumulated judgment What is Intuition?  *Evidence-Based Management* Evidence-based management (E B Mgt): the systematic use of the best available evidence to improve management practice. *Crowdsourcing* Crowdsourcing: a decision-making approach where you solicit ideas and input from a network of people outside of the traditional set of decision makers. *Types of Decisions:* Structured Problems and Programmed Decisions Structured problems: straightforward, familiar, and easily defined problems Programmed decisions: repetitive decisions that can be handled by a routine approach *Types of Programmed Decisions* Procedure: a series of sequential steps used to respond to a well-structured problem Rule: an explicit statement that tells managers what can or cannot be done Policy: a guideline for making decisions *Types of Decisions:* Unstructured Problems and Nonprogrammed Decisions Unstructured problems: problems that are new or unusual and for which information is ambiguous or incomplete Nonprogrammed decisions: unique and nonrecurring and involve custom-made solutions *Programmed vs. Nonprogrammed Decisions* *Decision-Making Styles* Research has identified four different individual decision-making styles based on two dimensions: 1\. An individual's way of thinking 2\. An individual's tolerance for ambiguity The four styles are directive, analytic, conceptual and behavioral. *Four Decision-Making Styles* Directive style: low tolerance for ambiguity and seek rationality Analytic style: seek rationality but have a higher tolerance for ambiguity Conceptual style: intuitive decision makers with a high tolerance for ambiguity Behavioral style: intuitive decision makers with a low tolerance for ambiguity *Decision-Style Model*  *Heuristics* Heuristics or "rules of thumb" can help make sense of complex, uncertain, or ambiguous information. However, they can also lead to errors and biases in processing and evaluating information. *Decision-Making Biases and Errors* Overconfidence Bias: holding unrealistically positive views of oneself and one's performance Immediate Gratification Bias: choosing alternatives that offer immediate rewards and avoid immediate costs Anchoring Effect: fixating on initial information and ignoring subsequent information Selective Perception Bias: selecting, organizing and interpreting events based on the decision maker's biased perceptions Confirmation Bias: seeking out information that reaffirms past choices while discounting contradictory information Framing Bias: selecting and highlighting certain aspects of a situation while ignoring other aspects Availability Bias: losing decision-making objectivity by focusing on the most recent events Representation Bias: drawing analogies and seeing identical situations when none exist Randomness Bias: creating unfounded meaning out of random events Sunk Costs Errors: forgetting that current actions cannot influence past events and relate only to future consequences Self-serving Bias: taking quick credit for successes and blaming outside factors for failures Hindsight Bias: mistakenly believing that an event could have been predicted once the actual outcome is known (after-the-fact) *Cutting-Edge Decision Making* Technology has changed the ability of managers to access information. Two technology driven cutting-edge aides to decision making are: - Design thinking: approaching management problems as designers approach design problems - Big data and Artificial Intelligence: big data refers to huge and complex data sets now available. Big data has opened the door to widespread use of artificial intelligence (A I) *Big Data and Artificial Intelligence* Big data: the vast amount of quantifiable data that can be analyzed by highly sophisticated data processing Can be a powerful tool in decision making, but collecting and analyzing data for data's sake is wasted effort *Artificial Intelligence and Machine Learning Tools* Artificial Intelligence (A I) -- uses computing power to solve complex problems -- A I systems have the ability to learn and have facilitated the use of new tools such as: ➡Machine learning ➡Deep learning ➡Analytics *Machine Learning, Deep Learning, and Analytics* Machine Learning: A method of data analysis that automates analytical model building. Deep Learning: A subset of machine learning that use algorithms to create a hierarchical level of artificial neural networks that simulate the function of the human brain. Analytics: The use of mathematics, statistics, predictive modeling, and machine learning to find meaningful patterns in a data set.