BES 047: Engineering Management

P1 - Reviewer

Module 1: Introduction to Engineering Management

Engineering - a profession which scientific knowledge and mathematics is
used and experimented with to develop ways that benefit
mankind, making it extremely important to society
Engineers - people who logically apply quantifiable principles.
- academic knowledge, practical training, experience, and
work-study are all avenues to becoming an engineer.
- A person who designs, builds, or maintain engines,
machine, or public works.
Functions of
Engineers

Functions of Engineers:

1. Research
- Process of learning things and the codification of this
knowledge into useful theories.
2. Design and Development
- the product design to a finished physical object.
3. Testing
- test the product for its work-ability
4. Manufacturing
- change of production personnel or assumes responsibility
for the product
5. Construction
- Assumes responsibility for the production staff or in charge
of the construction process
6. Sales
- assists the client of the organization in meeting their needs
7. Consulting
- Consultant of any individual or organization which requires
services.
8. Government
- the numerous tasks of regulating, monitoring and
controlling the activities of various public or private
institutions
9. Teaching
-gets a position at the schools
 - some are deans, chairmen and vice presidents.
10. Management
- to manage groups of people who will carry out specific
assignments.
The Engineer in A. Level 1 - Nominal engineer jobs like retailing firm
Various Types of B. Level 2 - Average engineering jobs like transportation
Organization companies
C. Level 3 - High degree of engineering jobs like
construction firms.
Management - is the process of designing and maintaining an environment
in which individuals, working together in groups, efficiently
accomplish selected aims.

Management Needs:
a. Objective
b. Resources
c. Methods
d. Organizing Setting
e. People
Engineering - art and science of planning, organizing, allocation
Management resources, and directing and controlling activities that have
technological components.
- “technical knowledge with the ability to organize and
coordinate worker power, materials, machinery and money”
Functions of
Management

Functions of Management:

1. Directing
- Guiding Employees
- Motivating Employees
2. Organizing
- Blends Humans and Material Resources
- Formal Structure of Tasks and Authority
3. Staffing
- Functions of Recruitment, Selection, Training and
Placement
- Assigning Right Position to Right Person
4. Controlling
- Check Progress of Plan
- Correct Derivations and Accomplish its Objectives
 5. Planning
- Anticipating the future
- Determining the best course of actions=
Level of
Management

Management Skill - Managers must be qualified to execute the management

duties and play various responsibilities. Robert Kartz
identified three management skill that are necessary for
effective management.

A. Technical Skill - about things

B. Human Skill - about people
C. Conceptual Skill - about ideas
Management Roles A. Interpersonal Roles
- Figurehead
- Leader
- Liaison
B. Informational Roles
- Monitor/Gatekeeper
- Disseminator
- Spokesman
C. Decisional Roles
- Entrepreneurial
- Disturbance Handler
- Resource Allocator
- Negotiator
Module 2: Decision Making
Decision-Making - the process of identifying and choosing alternative courses
of action in a manner appropriate to the demands of the
situatiion.
Decision-Making
Process

Step 1: Diagnose the Problem

Step 2: Analyze the Environment
- Components of the Environment
1. Internal Environment
2. External Environment
Step 3: Articulate Problem or Opportunity
Step 4: Develop a Viable Alternatives
Step 5: Evaluate Alternatives
Step 6: Make a Choice
- Choice-Making- process of selecting alternatives
Step 7: Implement Decision
- Implementation- refers to the execution of decision to
achieve the aims sought.
Step 8: Evaluate and Adapt Decision Results
- Feedback- refers to a process that requires checking at
each stage of the process to ensure that the alternatives
generated
- Control- refers to steps taken to ensure that the tasks
carried out are in line with the intended objectives or goals
sets.
Approaches in 1. Qualitative Evaluation
Solving Problems - Refers to assessing alternatives by intuition and subjective
judgement
 The problem is fairly simple
 The problem is familiar
 The cost involved is not great
 Immediate decisions are needed
2. Quantitative Evaluation
- Refers to alternatives which use any technique classified as
logical and analytical in a group.
Quantitative Models for Decision-Making:
a. Inventory Models
- consists f many types, all intended to assists the engineering
manager in making inventory decisions. They’re the
following:
 1. Economic order quantity model - used to calculate
number of item to be ordered at a time in order to minimize
the total annual costs of placing orders and carrying the
things in store.
2. Production order quantity model - this is an economic
order quantity technique applied to production orders.
3. Back order inventory model - this is an inventory model
used for planned shortages.
4. Quantity discount model - is used to reduce overall costs
as manufacturers give quantity discounts.
b. Queuing Theory
- explains how to calculate number of service units which
will reduce both waiting time and service costs for
costumers.
c. Network Models
- these are models in which large complex tasks are split into
smaller parts that can be independently controlled.
1. Program Evaluation Review Technique - a technique
which helps the engineer managers to plan, monitor and
control large and complex projects.
2. Critical Path Method - a strategy that uses only one-time
factors per task.
d. Forecasting
- the gathering of past and current information to make future
predictions.
e. Regression Analysis
- is a method of forecasting which examines the associations
of two or more variables.
f. Simulation
- designed to reflect fact, from which conclusions can be
drawn from real-life problems.
g. Linear Programming
- used to create an optimal solutions within the limits
imposed on the decisions by constrains.
h. Sampling theory
- statistically determines samples of populations to be used in
numerous process, such as quality control and marketing
research.
i. Statistical Decision Theory
- refers to the rational method of conceptualizing, evaluating,
and solving problems situations involving minimal or partial
decision environment information.
Module 3: Planning
Plan - Which is the output of planning, offers a methodical way to
achieve desired results. The plan serves as a useful reference
in the implementation of the activities. Without the plan,
major attention may be paid to some minor tasks which may,
later on, obstruct the fulfillment of activities.
Planning -according to Nickels and others, refers to “the management
function that involves anticipating future trends and
 determining the best strategies and tactics to achieve
organizational objectives.
Types of Planning

Strategic Planning - The process of identifying the organization's primary goals

and objectives is known as strategic planning procedures and
tactics for acquiring and applying resources in order to
accomplish those goals. With this kind of organizing is
involved with any organization's top management. The
strategic plan is the end product of strategic planning. It
describes "the choice of long-term goals and the appropriate
course of action.
Intermediate - The process of assessing the contributions that units will
Planning make with the help of intermediate planning allotted
materials. This kind of planning is done by middle
management. Its purpose is to maintain the overall scheme.
Operational - Is the process of determining the most effective ways to
Planning complete certain tasks with limited resources be finished on
schedule. The lower management is in charge of this kind of
planning. In support of the intermediate plan as well as the
strategic plan, this must be accomplished.
The Planning
Process
Types of Plans

Plans According to 1. Standing Plans

Frequency Use - are plans which are used repeatedly and which focus on
managerial situations that happens again and again.
2. Single-Use Plans
- a collection of activities planned to accomplish a particular
objective within a given budget and time duration that is
unlikely to happen in the future.
Parts of the Various - Functional areas help guarantee efficiency. The main
Functional Area functional areas include sales, marketing, customer service,
Plans human resource, research and development, finance, and
accounting.

Parts of Strategic - The six vital elements of strategic planning: vision, mission,
Plan objectives, strategy, approach, and tactics.

Strengths,
Weaknesses,
Opportunities and
Treat Analysis

Making Planning
Effective