Engineering Management Reviewer PDF

ENGINEERING MANAGEMENT REVIEWER CHAPTER 1 – FIELD OF ENGINEERING MANAGEMENT technologies that continue to influence daily the activities of various institutions public or life....

ENGINEERING MANAGEMENT REVIEWER CHAPTER 1 – FIELD OF ENGINEERING MANAGEMENT technologies that continue to influence daily the activities of various institutions public or life. private. ENGINEERS  Engineers are key to addressing current global 9. Teaching – gets employment in a school and is - Are expected to perform a variety of tasks challenges such as sustainability, energy needs, assigned as a teacher of engineering courses depending on their specialization and job and technological advancements. 10. Management – manage groups of people level. 1. Food production performing specific tasks - Must understand their job expectations to 2. Environmental protection perform effectively and efficiently. 3. Waste management THE ENGINEER IN VARIOUS TYPES OF ORGANIZATION - Identifying their skill gaps is crucial. 4. Noise reduction - Often lack people-based skills especially when 5. Energy supply 1. Level one – Minimal Engineering Jobs transitioning to management roles. 6. Mobility solutions  Slim chance of becoming the general - If the engineer want to do his job well, 7. Crime prevention manager or president exposure to engineering management 8. Communication facilities  Assigned to head a small engineering unit, activities becomes necessary. require basic management skills focused on team leadership and project oversight CORE FUNCTIONS OF ENGINEERING  Example: Retail Firm THE FUNCTIONS OF THE ENGINEER 1. Research – where the engineer is engaged in Historical Contributions the process of learning about nature and 2. Level two – Moderate Engineering Jobs codifying this knowledge into usable theories.  Head the engineering division  Engineers have been instrumental in shaping 2. Design and Development – turning a product  Develop stronger management skills, human civilization. concept to a finished physical item including planning, resource, and division  Their innovations have solved critical problems 3. Testing – where new products or parts are management and improved the quality of life. tested for workability.  Example: Transportation company 1. Stone bladed axe and irrigation system – 6000 4. Manufacturing – directly in charge of to 3000 B.C. production personnel or assumes responsibility 3. Level three – High Degree Engineering Jobs 2. Pyramids of Egypt – 3000 to 600 B.C. for the product  Biggest opportunity to become the 3. Roadbuilding by the Romans – 6000 B.C. to 5. Construction – where the construction president or general manager A.D. engineer is either directly in charge of the  Management skills are crucial 4. Production of paper and gunpowder by the construction personnel or may have  Must be proficient in leadership, decision- Chinese – 100 A.D. to 1600 A.D. responsibility for the quality of the construction making, financial management, and 5. Production of steam engine and the spinning process. overall organizational strategy to function weaving machinery – 1601 A.D. to 1799 A.D. 6. Sales – assists the company’s customers to effectively 6. Manufacture of cars and household meet their needs, especially those that require  Example: Construction Firms appliances – modern times technical expertise. 7. Consulting – the engineer works as consultant Lasting Impact of Engineering on Society WHAT IS ENGINEERING MANAGEMENT? of any individual or organization  Engineering has led to the development to the 8. Government – find employment in the  Engineering management – the activity coning essential tools, infrastructures, and government performing nay of the various “technical knowledge with the ability to tasks in regulating, monitoring, and controlling ENGINEERING MANAGEMENT REVIEWER organize and coordinate worker power, Kreitner – “at least three general preconditions for - The opportunity for successful materials, machinery, and money.” achieving success as a manager.” management has 2 requirements:  1st phase – assigned to supervise the work with 1) Obtaining suitable managerial job 1. Ability few people. Lead his group into producing a 2) Finding a supportive climate – it is - Capacity of an engineer manager to certain output consistent with the required characterized by the recognition of achieve organizational objectives specifications. managerial talent through financial effectively and efficiently  Top position – general manager ship or and nonfinancial rewards.  Effectiveness (Higgins) – whether presidency of any firm, large or small. The objectives are accomplished higher they goes up, the less technical  Efficiency (Higgins) – relative amount of CHAPTER 2 – DECISION-MAKING activities they perform, and the more resources used in obtaining management tasks he accepts. ENGINEER MANAGERS effectiveness Management - Tasked to provide leadership in the quest for 2. Motivation to manage the attainment of the organization’s objectives. - “Creative problem solving-process of John B. Miner – developed a psychometric - Must learn the intricacies of decision-making to planning, organizing, leading, and instrument to measure objectively an be effective. controlling an organization’s resources to individual’s motivation to manage. The test is - Decision-making skills will be very crucial to his achieve its mission and objectives.” anchored to the following: success. The Process Of Management 1) Favourable attitude towards - Good decisions will provide the right superiors environment for continuous growth and - Planning, organizing, directing (or leading), 2) Desire to engage in games or sports success. and controlling competing with peers 3) Engage in occupational or work- related competition with peers DECISION-MAKING AS A MANAGEMENT REQUIREMENTS FOR THE ENGINEER MANAGER’S JOB 4) Desire to assert oneself and take RESPONSIBILITY 1. A bachelor’s degree in engineering; master’s charge.  Decision-making – a responsibility of the degree in engineering or business 5) Desire to exercise power and engineer manager. management; authority over others.  Delaney – managers who cannot do or not 2. A few years of experience in a pure 6) Desire to behave in a distinctive want to make decisions are dangerous and engineering job; way, which includes standing out “should be removed from their position as soon 3. Training in supervision; from the crowd. as possible.” 4. Special training in engineering management. 7) Sense of responsibility in carrying  Management must strive to choose a decision out duties associated with option as correctly as possible. Since they are managerial work HOW ONE MAY BECOME A SUCCESSFUL ENGINEER responsible for whatever outcome their MANAGER decisions bring. 3. Opportunity  The higher the management level is, the Successful engineer managers do not happen as a - Successful managers become possible bigger and more complicated decision- matter of chance, although luck is a contributory only if those having the ability and making become. factor. motivation are given the opportunity to manage. ENGINEERING MANAGEMENT REVIEWER WHAT IS DECISION-MAKING?  External limitations: - The alternatives can be ranked from best o Patents are controlled by other to worst on the basis of some factors like  Decision-making – “process of identifying and organizations. benefit, cost, or risk. choosing alternative courses of action in a o Limited market for products and manner appropriate to the demands of the services 7. Implement Decision situation.” o Strict enforcement of local zoning  Implementation – carrying out the  Nickels – “is the heart of all the management regulations. decision so that the objectives sought functions.” 3. Articulate problem or opportunity will be achieved.to make it effective, a plan must be devised. THE DECISION-MAKING PROCESS 4. Develop viable alternatives - Resources must be made available so that - The best among the alternatives solutions decision may be properly implement. David H. Holt process of rational decision-making: must be considered by management with the following steps: 8. Evaluate and Adapt Decision Results 1. Diagnose problem 1) Prepare a list of alternative solutions. - It is important for the manager to use - A manager must identify the problem first. 2) Determine the viability of each control and feedback mechanisms to - “Identification of the problem is solutions. ensure results and to provide information tantamount to having the problem half- 3) Revise the list by striking out those for future decisions. solved.” which are not viable.  Feedback – process which requires  Problem – exist when there is a difference checking at each stage of the process between an actual situation and a desired 5. Evaluate Alternatives to assure that the alternatives situation. - Proper evaluation makes choosing the generated, the criteria used in right solution less difficult. evaluation, and the solution selected 2. Analyze the Environment - Alternatives are evaluated depending on for implementation are in keeping with - The environment where the organization is the nature of the problem, objectives of the goals and objectives originally situated plays a very significant role in the the firm, and the nature of alternatives specified. success or failure of such an organization. presented.  Control – actions made to ensure that - Its objective is the identification of  Souder – “each alternative must be activities performed match the desired constraints, which may be spelled out as analysed and evaluated in terms of its activities or goals that have been set. either internal or external limitations. value, cost, and risk characteristics.” Components of the Environment: - The value of alternatives refers to benefits APPROACHES IN SOLVING PROBLEMS that can be expected. 1) Internal – organizational activities within a firm. 1. Qualitative Evaluation  Internal limitations: 6. Make a Choice - Using intuition and subjective judgement. o Limited funds  Choice-making – process of selecting  Stevenson states that managers tend to use o Limited training on the employees among alternatives representing the qualitative approach when : o Ill-designed facilities. potential solutions to a problem. o The problem is fairly simple.  Webber – “particular effort should be o The problem is familiar. 2) External – variables that are outside the made to identify all significant o The cost involved are not great. organization and not typically within the short- consequences of each choice.” o Immediate decisions are needed. run control of top management. ENGINEERING MANAGEMENT REVIEWER 2. Quantitative Evaluation large and complex projects by employing - Using any technique in a group classified three time estimates for each activity. 8. Sampling theory as rational and analytical.  The Critical Path Method (CPM) – this is a - Where samples of populations are network technique using only one time factor statistically determined to be used for a per activity. number of processes, such as quality QUANTITATIVE MODELS FOR DECISION MAKING control and marketing research. 1. Inventory Models 4. Forecasting - Consists of several types all designed to - “The collection of past and current 9. Statistical Decision-Theory help the engineer manager make information to make predictions about the - “Rational way to conceptualize, analyse, decisions regarding inventory. future.” and solve problems in situations involving  Economic order quantity model – used to limited, or partial information about the calculate the number of items that should be 5. Regression Analysis decision environment.” ordered at one time to minimize the total - A forecasting method that examines the  Bayesian Analysis – to revise and update the yearly cost of placing orders and carrying the association between two or more variables. initial assessments of the event probabilities items in inventory. - Uses data from previous periods to predict generated by the alternative solutions.  Production order quantity model – an future events.  Bayes criterion – selects the decision economic order quantity technique applied to - May be simple or multiple depending on alternative having the maximum expected production orders. the number of independent variables payoff, or the minimum expected loss if he is  Back order inventory model – used for present. working with a loss table. planned shortages.  Simple Regression – one independent variable  Quantity discount model – used to minimize involved. CHAPTER 3: PLANNING TECHNICAL ACTIVITIES the total cost when quantity discounts are  Multiple Regression – two or more offered by suppliers. independent variables are involved. THE NATURE OF PLANNING 6. Simulation  Plan – which is the output of planning, provides 2. Queuing Theory - Represent reality on which conclusions a methodical way of achieving desired results. - To determine the number of service units about real-life problems can be used. - Serves as a useful guide in the that will minimize both costumer waiting - Highly sophisticated tool of which the implementation of activities time and cost of service. - Applicable for companies where waiting decision maker develops a mathematical lines are common situation. model of the system under consideration. PLANNING DEFINED - Does not guarantee an optimum solution 3. Network Models but it can evaluate the alternatives fed  Planning – selecting the best course of action - Where large complex tasks are broken into into the process by the decision maker. so that the desired result may be achieved. It smaller segments that can be managed may be stressed that the desired result takes independently. 7. Linear Programming first priority and the course of action chosen is  The Program Evaluation Review Technique - A quantitative technique that is used to the means to realize the goal. (PERT) – a technique which enables engineer produce an optimum solution within the  Nickels and other – “the management managers to schedule, monitor, and control bounds impose by constraints upon the function that involves anticipating decision. future trends and determining the best ENGINEERING MANAGEMENT REVIEWER strategies and tactics to achieve  Operational Planning - The quality and quantity of resources organizational objectives.” - The process of determining how specific needed must be correctly determined.  Aldag and Stearns – “the selection and tasks can best be accomplished on time - To satisfy strategic requirements, a general sequential ordering of tasks required to with available resources. statement of needed resources will suffice. achieve an organizational objectives.” - Must be performed to support the strategic  Cole and Hamilton – “deciding what plan and the intermediate plan. 4. Setting Standards will be done, who will do it, where, - Standards may be set at the planning when, and how it will be done, and the stage. THE PLANNING PROCESS standards to which it will be done.”  Standard – a quantitative or qualitative 1. Setting organizational, Divisional, or Unit measuring device designed to help monitor Goals the performances of people, capital goods, or PLANNING AT VARIOUS MANAGEMENT LEVELS - The first task of the engineer is to provide a processes. 1. Top Management level – strategic planning sense of direction to his firm (if he is the 2. Middle management level – intermediate chief executive), to his division (if he heads TYPES OF PLANS planning the division), or to his unit (if he is a 3. Lower management level – operational supervisor).  Functional Area Plans planning  Goals – the precise statement of results sought, 1. Marketing Plan – written document or quantified in time and magnitude, where blueprint for implementing and controlling  Strategic planning possible. an organization’s marketing activities - The process of determining the major goals related to a particular marketing strategy. of the organization and the policies and 2. Developing Strategies or Tactics to Reach 2. Production plan – states the quantity of strategies for obtaining and using resources Goals output a company must produce in broad to achieve those goals.  Strategy – the ways to realize the goals and terms and by product family. - The whole company is considered, these will be concern of top management. 3. Financial plan – summarizes the current specifically its objectives and current - A course of action aimed at ensuring that financial situation of the firm, analyses resources. the organization will achieve its objectives. financial needs, and recommends a  Strategic Plan – the decision about long-range  Tactic – is a short-term action taken by direction for financial activities. goals and the course of action to achieve management to adjust to negative internal or 4. Human resource management plan – these goals. external influences. indicates the human resource needs of a - Formulated support the firm’s strategies. company detailed in terms of quantity and  Intermediate Planning  Tactical Plan – the decision about short-term quality and based on the requirements of - The process of determining the goals and the courses of action. the company’s strategic plan. contributions that subunits can make with allocated resources. 3. Determining Resources Needed  Plans With Time Horizon - The goals of subunit are determined and a - When particular sets of strategies or tactics 1. Short-range plans – plans intended to plan is prepared to provide a guide to the have been devised, the engineer cover a period of less than one year. realization of the goals. manager will, then, determine the human 2. Long-range plans – plans covering a time - Designated to support the strategic plan. and nonhuman resources required by such span of more than one year. strategies or tactics, ENGINEERING MANAGEMENT REVIEWER  Plans According to Frequency of Use 8. Financial data and control MAKING PLANNING EFFECTIVE 1. Standing plans – used again and again Planning may be made successful is the following are and focus on managerial situations that  The Contents Of The Production Plan observed: recur repeatedly. 1. The amount of capacity the company  Policies – broad guidelines to aid managers at must have 1. Recognized the planning barriers every level in making decisions about recurring 2. How many employees are required 2. Use of aids to planning situations or function. 3. How much material must be purchased  Procedures – plans that describe the exact The planning barriers, according to Plunkett and series of actions to be taken in a given  The Contents Of The Financial Plan Attner, are as follows: situation. 1. An analysis of the firm’s current financial 1. Manager’s inability to plan  Rules – statements that either requires or forbid condition 2. Improper planning process a certain action. 2. Sales forecast 3. Lack of commitment to the planning process 3. Capital budget 4. Improper information 2. Single-Use Plans 4. Cash budget 5. Focusing on the present at the expense of the - Developed to implement courses of action 5. A set of pro forma (or projected) financial future that are relatively unique and are unlikely statements 6. Too much reliance on the planning to be replaced. 6. External financing plan department  Budget – is “a plan which sets forth the 7. Concentrating on only the controllable projected expenditure for a certain activity  Contents of the human resources plan variables and explains where the required funds will 1. Personnel requirements come from”, Weston and Brigham. 2. Plans for the recruitment and selection Among the aids to planning that may be used are:  Program – designed to coordinate a large set 3. Training plan of activities. 4. Retirement plan 1. Gather as much information as possible  Project – usually more limited in scope than a 2. develop multiple sources of information 3. Involve others in the planning process program and is sometimes prepared to PARTS OF THE STRATEGIC PLAN support a program. 1. Company or corporate mission CHAPTER 4: ORGANIZING TECHNICAL ACTIVITIES - Refers to the strategic statement that PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS The value of a superior organizational set-up has been identifies why an organization exists, its  The Contents of the Marketing Plan philosophy of management and its proven dramatically during the Second World War Willian Cohen maintains that the following purpose as distinguished from other similar when a smaller American naval force confronted the must be included in the marketing plan. organizations in terms of products, services, formidable Japanese navy at Midway. Military historians indicated that the Americans emerged 1. Executive Summary and markets. 2. Table of Contents 2. Objectives or goals victorious because of the superior organizational skills 3. Situational Analysis and Target Market 3. Strategies of their leaders. 4. Marketing objective and goals REASONS FOR ORGANIZING 5. Marketing strategies 6. Marketing tactics  Organizing – Is undertaken to facilitate the 7. Schedules and budgets implementation of plans. ENGINEERING MANAGEMENT REVIEWER - In effective organizing, steps are 1. Division of labor – determining the scope of undertaken to break down the total job work and how it is combined in a job. 3. policy manuals - describes personnel activities into more manageable men-size jobs. and company policies. - Doing these will make it possible to assign 2. Delegation of authority - the process of particular tasks to particular persons. assigning various degrees of decision-making THE INFORMAL ORGANIZATION - In turn, these will help facilitate the authority to subordinates. assignment of authority, responsibility, and 3. Departmentation – the grouping of related jobs,  Informal Group – are instances when members accountability for certain functions and activities, or processes into major of an organization spontaneously form a group tasks. organizational subunits. with friendship as a principal reason for belonging. 4. Span of control - the number of people who ORGANIZING DEFINED report directly to a given manager. TYPES OF ORGANIZATIONAL STRUCTURES  Organizing – is a management function which refers to “the structuring of resources and 5. Coordination - the linking of activities in the 1. Functional organization - this is a form of activities to accomplish objectives in an organization that serves to achieve a common departmentalization in which everyone efficient and effective manner.” goal or objective. engaged in one functional activity, such as  Structure – the arrangement or relationship of engineering or marketing, is grouped into one positions within an organization. unit. - The result of the organizing process THE FORMAL ORGANIZATION 2. Product or market organization - this refers to THE PURPOSE OF THE STRUCTURE  Formal Organization – “the structure that the organization of a company by divisions details lines of responsibilities, authority, and The structure serves some very useful purposes. They that brings together all those involved with a position.” are the following: certain type of product or customer. - Depicted in the organization chart 1. It defines the relationships between tasks and - Planned structure 3. Matrix organization - an organizational authority for individuals and departments. - Represents the deliberate attempt to structure in which each employee reports to 2. It defines formal reporting relationships, the establish patterned relationships among both a functional or division manager and to a number of levels in the hierarchy of the components that will meet the objectives project or group manager. organization, and the span of control. The formal structure is described by management 3. It defines the groupings of individuals into through: departments and departments into TYPES OF AUTHORITY organization. 1. organization chart - is a diagram of the The delegation of authority is a requisite for effective 4. It defines the system to affect coordination of organization's official positions and formal lines organizing. It consists of three types. They are as effort in both vertical (authority) and horizontal of authority; follows: (tasks) directions. 2. organizational manual - provides written 1. Line authority - a manager's right to tell When structuring an organization, the engineer descriptions of authority relationships, details subordinates what to do and then see that manager must be concerned with the following: the functions of major organizational units, and they do it. describes job procedures; and ENGINEERING MANAGEMENT REVIEWER 2. Staff authority - a staff specialist's right to give - Formed to provide necessary line-up of advice to a superior. expertise needed to achieve certain objectives. 3. Functional authority - a specialist's right to oversee lower level personnel involved in that Committees may be classified as follows: specialty, regardless of where the personnel are in the organization 1. Ad hoc committee - one created for a short- term purpose and has a limited life. An  Line department – perform tasks that reflect example is the committee created to manage the organization’s primary goal and mission. the anniversary festivities of a certain firm. - The department that negotiates and secure contracts for the firm 2. Standing committee - it is a relatively permanent committee that deals with issues  Staff departments – provide specialized skills in on an ongoing basis. An example is the support of line department. grievance committee set up to handle initial complaints from employees of the Staff officers may be classified into the following: organization 1. Personal staff - those individuals assigned to a specific manager to provide needed  Delaney – suggests that “it might be useful to staff services. set up some procedures to make the committee a more effective tool to 2. Specialized staff - those individuals accomplish our goals.” providing needed staff services for the whole organization.  Functional Authority – is one given to a person or a work group to make decisions related to their expertise even if these decisions concern other departments. This authority is given to most budget officers of the organizations, as well as officers. PURPOSE OF COMMITTEES  Committee – Is a formal group of persons formed for a specific purpose. - Useful most especially to engineering and manufacturing firms.