Engineering Management Principles & Decision Making PDF

GROUP 1 ENGINEERING MANAGEMENT PRINCIPLES & DECISION MAKING GRANADOS, MILLAR, OBLIOPAS, SANTIAGO, VELASCO ENGINEERING MANAGEMENT VELASCO  ENGINEERING ENGINEER THE PROFESSION IN WHICH A KNOWLEDGE OF THE MATHEMATICAL AND NATURAL A PE...

GROUP 1 ENGINEERING MANAGEMENT PRINCIPLES & DECISION MAKING GRANADOS, MILLAR, OBLIOPAS, SANTIAGO, VELASCO ENGINEERING MANAGEMENT VELASCO  ENGINEERING ENGINEER THE PROFESSION IN WHICH A KNOWLEDGE OF THE MATHEMATICAL AND NATURAL A PERSON WHO IS APPLYING SCIENCES, GAINED BY STUDY, HIS / HER MATHEMATICAL AND EXPERIENCE, AND PRACTICE, IS SCIENCE KNOWLEDGE APPLIED WITH JUDGMENT, TO PROPERLY TO SOLVE DEVELOP WAYS TO UTILIZE, PRACTICAL AND REAL-WORLD ECONOMICALLY, THE MATERIALS PROBLEMS AND FORCES OF NATURE FOR THE EX. AGRICULTURAL, CIVIL, ELECTRICAL, ETC. BENEFIT OF MANKIND  MANAGEMENT MANAGER originates from Old French ménagement “the A PROFESSIONAL WHO art of conducting, directing”, and from Latin manu agere “to lead by the hand” COMBINES TECHNICAL MANAGEMENT REFERS TO THE EXPERTISE WITH PROCESS OF PLANNING, MANAGERIAL SKILLS TO ORGANIZING, LEADING, AND OVERSEE AND GUIDE CONTROLLING AN ENGINEERING PROJECTS, ORGANIZATION'S RESOURCES TO TEAMS, AND PROCESSES. ACHIEVE SPECIFIC GOALS EFFICIENTLY AND EFFECTIVELY. EXCELLENT MANAGERS HAVE/ARE GOOD COMMUNICATOR FLEXIBLE INTEGRITY GRATITUDE COMMITTED PEOPLE-ORIENTED FOCUSED ENGINEERING MANAGEMENT a specialized field that combines the technical expertise of engineering with the managerial skills necessary to lead teams, projects, and organizations. focuses on the effective planning, organizing, directing, and controlling of engineering projects and processes, ensuring that they meet technical, financial, and operational goals. ENGINEERING MANAGEMENT FUNCTIONS 1 PLANNING forecasting, setting objectives, action planning, administering policies, establishing procedure 2 ORGANIZING selecting organizational structure, delegating, establishing working relationship 3 LEADING deciding, communicating, motivating, selecting / developing people 4 CONTROLLING setting performance, standards, evaluating / documenting / correcting performances  THE CORE PRINCIPLES OF ENGINEERING MANAGEMENT millar, santiago  LEADERSHIP AND VISION PLANNING AND ORGANIZATION COMMUNICATION QUALITY MANAGEMENT INNOVATION AND CONTINUOUS IMPROVEMENT RISK MANAGEMENT FINANCIAL ACUMEN ETHICAL RESPONSIBILITY 8 PRINCIPLES OF ENGINEERING MANAGEMENT focusing on how they shape effective project leadership and organization in technical fields LEADERSHIP AND VISION Peter Drucker’s Management by Objectives (MBO) and James MacGregor Burns’ Transformational Leadershipemphasize how leaders inspire teams by setting clear, strategic goals and driving alignment across the organization. PLANNING AND ORGANIZATION according to Henri Fayol’s Administrative Theory  COMMUNICATION Chester Barnard’s work on organizational communication emphasizes the importance of clear, concise, and effective communication in ensuring organizational success. QUALITY MANAGEMENT Ensuring high-quality standards is critical in engineering. INNOVATION ANDF CONTINUOUS IMPROVEMENT Encouraging innovation and continuous improvement helps engineering organizations stay competitive.  RISK MANAGEMENT it involves identifying, assessing, and mitigating potential risks throughout a project’s lifecycle. FINANCIAL ACUMEN Engineering managers need a solid understanding of budgeting, cost control, and financial analysis. ETHICAL RESPONSIBILITY In engineering, it means making decisions that prioritize safety, sustainability, and fairness.  ENGINEERING MANAGEMENT DECISION MAKING GRANADOS & OBLIOPAS WHAT IS DECISION? the act of deciding or settling a dispute or question by giving a judgment. WHAT IS DECISION MAKING? defined as "the process of identifying and choosing alternative courses of action in a matter appropriate to the demands of the situation." according to Nickels and other "is the heart of all the management functions".  ENGINEERING MANAGEMENT DECISION MAKING RATIONAL DECISION-MAKING PROCESS A structured decision-making process helps managers make informed choices. DATA-DRIVEN DECISIONS Utilizing data analytics in decision-making leads to more accurate and effective outcomes. RISK-BASED DECISION-MAKING Weighing risks against potential rewards is essential for informed decision-making. COLLABORATIVE DECISION-MAKING Involving diverse stakeholders in the decision-making process enhances the quality of decisions by incorporating various perspectives and expertise. TOOLS AND TECHNIQUES Engineering managers often use structured tools and techniques to support their decision-making processes. DECISION-MAKING AS A MANAGEMENT RESPONSIBILITY Decision making is a responsibility of the Engineer manager. Management must strive to choose a decision option as correctly as possible. The higher the management level is, the bigger and more complicated decision- making become.  Artic z e ulate ly Ana ent Probl em o r ro nm Oppo En vi rtuni ty Diagn Develop ose Viable Prob lem Alternatives Evaluate Evaluate Rational decision-making, and adapt Alternatives decision according to David H. Holt, results t is a process involving the Make a le m en Imp ion following steps: choice De cis DECISION MAKING PROCESS DIAGNOSE PROBLEM To make an intelligent decision, the manager’s first move must be identify the problem. An expert said “identification of the problem is tantamount to having the problem half-solved." ANALYZE ENVIRONMENT An environmental analysis is a strategic technique used to identify all internal and external factors that could affect a company’s success. The environment consists of two major concerns: The internal environment refers to organizational activities within a firm that surrounds decisionmaking. The external environment refers to variables that are outside the organization and not typically within the short-run control of top management. DECISION MAKING PROCESS ARTICULATE PROBLEM OR OPPORTUNITY Discuss the problem with the member of the organization and gather data and information for future references. Turn your problems into opportunities. DEVELOP VIABLE ALTERNATIVES Oftentimes, problems may be solved by any of the solutions offered. The best among the alternative solutions must be considered by management. This is made possible by using a procedure with the following steps: 1. Prepare a list of alternative solutions. 2. Determine the viability of each solution. 3. Revise the list by striking out those which are not viable. DECISION MAKING PROCESS EVALUATE ALTERNATIVES Proper evaluation makes choosing the right solution less difficult. Each alternative must be analyzed and evaluated in terms of its value, cost, and risk charcteristics. The value of the alternatives refers to benefits that can be expected. MAKE A CHOICE This is the point that the decision-maker must be convinced that all the previous steps were correctly undertaken. Choice making refers to the process of selecting among alternatives representing potential solutions to a problem. “particular effort should be made to identify all significant consequences of each choice.”  DECISION MAKING PROCESS IMPLEMENT DECISION Implemented-refers to carrying out the decision so that the objectives sought will be achieved. At this stage, the resources must be made available so that the decision may be properly implemented. “those who will be involved in implementation must understand and accept the solution.” EVALUATE AND ADAPT DECISION RESULTS Feedback Control “If the desired result is achieved, one may assume that the decision made we good.” APPROACHES IN SOLVING PROBLEMS In decision making, the engineer manager is faced with problems which may either be simple or complex. APPROACHES 1. Qualitative Evaluation 2. Quantitative Evaluation QUALITATIVE EVALUATION This term refers to evaluation of alternatives using intuition and subjective judgement. STEVENSON STATES THAT MANAGERS TEND TO USE THE QUALITATIVE APPROACH WHEN; 1. The problem is fairly simple 2. the problem is familiar 3. the cost involved are not great 4. immediate decisions are needed QUANTITATIVE EVALUATION This term refers to evaluation of alternatives using any technique in a group classified as rational and analytical. QUANTITATIVE MODELS FOR DECISION MAKING The types of quantitave techniques which may be useful in decision-making are as follows: 1. Inventory Models 2. Queuing Theory 3. Network Models 4. Forecasting 5. Regression Analysis 6. Simulation 7. Linear Programming 8. Sampling Theory 9. Statistical Decision Theory  QUANTITATIVE MODELS FOR DECISION MAKING INVENTORY MODELS It consist of several types all designed to help engineer manager make decisions regarding inventory. They are as follow; Economic order quantity model Production order quantity model Back order inventory model Quantity discount model QUEUING THEORY It is one that described how determine the number of service units that will minimize both customers waiting time and cost service  QUANTITATIVE MODELS FOR DECISION MAKING NETWORK MODELS These are models where large complex tasks are broken into smaller segment that can be manage independently. The two most prominent network work models are: 1. The Program Evaluation Review Technique (PERT) 2. The Critical Path Method (CPM) FORCASTING These are the instance when engineer managers make decisions that will have implications in the future.  QUANTITATIVE MODELS FOR DECISION MAKING REGRESSION ANALYSIS It uses data from previous periods to predict future events. SIMULATION model constructed to represent reality, on which conclusions about real-life problems can be used. LINEAR PROGRAMMING used to produce an optimum solution within the bounds imposed by constraints upon the decision.  QUANTITATIVE MODELS FOR DECISION MAKING SAMPLING THEORY It is a quantitative technique where samples of populations are statistically determined to be used for a number of processes, such as quality control and marketing research STATISTICAL DECISION THEORY Decision theory refers to the "rational way to conceptualize analyze, and solve problems in situations involving limited, or partial information about the decision environment." GRANADOS, VICTORINO MILLAR, JADELYN GROUP 1 REPORTERS OBLIOPAS, JOSHUA SANTIAGO, AILEEN VELASCO, JUSTINE MARIE  GROUP 1 THANK YOU FOR YOUR ATTENTION Thank you for taking the time to learn about our Engineering Management Principles and Decision Making. We appreciate your support in making our class productive. GRANADOS-MILLAR-OBLIOPAS-SANTIAGO-VELASCO