BES 6 Midterm Reviewer

Engineering Management

activity combining "technical knowledge with the ability to organize and coordinate worker power, materials, machinery, and money."

Management

“creative problem solving-process of planning, organizing, leading, and controlling an organization's resources to achieve its mission and objectives.”

Ability

capacity of an engineer manager to achieve organizational objectives effectively and efficiently

Decision-Making

process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation

Problem

exists when there is a difference between an actual situation and a desired situation

Diagnose Problem

Tantamount to having the problem half-solved.

Internal Environment

Organizational activities within a firm that surrounds decision-making.

External Environment

variables that are outside the organization and not typically within the short-run control top of management

Value of the Alternatives

Benefits that can be expected

Cost of the Alternatives

Out-of-pocket costs, opportunity costs, and follow on costs

Risk Characteristics

Likelihood of achieving the goals of the alternatives.

Choice Making

Process of selecting among alternatives representing potential solutions to a problem.

Implementation

Carrying out the decision so that the objectives sought will be achieved.

Feedback

Process which requires checking at each stage of the process to assure that the alternatives generated, criteria used in evaluation, and the solution selected are in keeping with the goals and objectives.

Control

Actions to ensure that activities performed match the desired activities or goal.

Qualitative Evaluation

Using intuition and subjective judgement.

Quantitative Evaluation

Using rational and analytical technique.

Economic Order Quantity Model

Calculate the number of items that should be ordered at one time.

Production Order Quantity Model

Economic order quantity technique applied to production orders.

Back Order Inventory Model

Used for planned shortages.

Quantity Discount Model

Minimize the total cost when quantity discounts are offered.

Queuing Theory

Determine the number of service of units that will minimize customer waiting time and cost of service.

Network Models

Large complex tasks are broken into smaller segments.

PERT

Enables to schedule, monitor and control projects by employing three time estimates for each activity.

CPM

Using only one-time factor per activity.

Forecasting

Collection of past and current information to make predictions about the future.

Regression Model

Forecasting method, examines the association between two or more variables.

Linear Programming

Used to produce an optimum solution within the bounds imposed by constraints.

Sampling Theory

Sample of populations are statistically determined to be used for numbers of processes.

Decision Theory

Rational way to conceptualize, analyze, and solve problems.

Bayesian Analysis

To revise and update the initial assessments of the event probabilities.

Bayes Criterion

Selects the decision alternative having the maximum expected payoff, minimum expected loss

Plan

Provides a methodical way of achieve desired results, useful guide, output of planning

Planning

Management function that involves anticipating future trends and determining best strategies and tactics. (Nickel)

Planning

Selection and sequential ordering of tasks. (Aldag & Stearns)

Planning

Deciding what will be done, who will do it, when and how it will be done. (Cole & Hamilton)

Strategic Planning (TOP)

Determining the major goals of organization, policies and strategies for obtaining and using resources to achieve these goals.

Strategic Plan

Decision about long-range goals and course of action to achieve these goals.

Intermediate Planning (MIDDLE)

Determining the contributions that subunits can make with allocated resources.

Operational Planning

How specific tasks can best be accomplished on time with available resources.

Goals

Precise statement of result sought, quantified in time and magnitude, where possible.

Strategies

Way to realize the goals, course of action aimed at ensuring that the organization will achieve its objectives.

Tactic

Short-term action to adjust internal and external influences.

Standard

Quantitative or qualitative measuring device to help monitor the performances of people, capital goods, and processes.

Marketing Plan

Written document or blueprint for an organization’s marketing activities.

Production Plan

States the quantity of output a company must produce.

Financial Plan

Summarize the current financial situation of the firm, analyzes financial needs.

Human Resource Management Plan

Indicates the human resource needs of a company detailed in terms of quantity and quality.

Standing Plans

Are used again and again. Focus on managerial situations (Policies, Procedures, Rules)

Single-use Plans

Unique and are unlikely to be repeated (Budgets, Projects, Programs)

Budget

Projected expenditure for a certain activity.

Program

Designed to coordinate a large set of activities.

Project

Limited scope than program and sometimes prepared for the program.

Executive Summary

Overall view of the marketing project and its potential.

Organizing

Structuring or resources and activities to accomplish objectives efficiently and effectively.

Division of Labor

Scope of work and how it is combined in job.

Delegation of Authority

Assigning various degree of decision-making authority to subordinates.

Departmentation

Grouping of related jobs, activities or processes.

Span of Control

Number of people who report directly to given manager.

Coordination

Linking of activities in the organization to achieve common goal or objective.

Formal Organization

Structure that details line of responsibilities, authority and position.

Formal Organization

Structure that will carry out the plan.

Organizational Chart

Diagram of the organization’s official positions and formal lines of authority.

Organizational Manual

Written descriptions of authority relationship, functions of major organizational units, describes job procedures

Policy Manual

Describes personnel activities and company policies.

Informal Groups

Members of organization form a group with friendship as a principal reason for belonging.

Informal Groups

Find their ways to exist side by side with formal organizations.

Functional Organization

Form of departmentation in which everyone engaged in one functional activity. It is very effective in smaller firms.

Product/Market Organization

Brings together all those involved with a certain type of product or costumer. It is appropriate for a large corporation with many product lines in several related industries.

Matrix Organization

Employee reports to both functional or division manager and to a project or group manager. A structure with two or more channel of command, two lines of budget authority, and two sources of performance and reward.

Line Authority

A manager’s right to tell subordinates what to do and then see that they do it.

Line Departments

Performs tasks that reflects the organization’s primary goal and mission.

Staff Authority

Staff specialists’s right to give advice to a superior.

Staff Departments

Provide specialized skills in support of line departments.

Personal Staff

Designed to a specific manager.

Specialized Staff

Provides needed services for the whole organization.

Functional Authority

Specialist’s right to oversee lower level personnel involved in that specialty.

Committee

Formal group of persons formed for a specific purpose, often staffed by executives from marketing, production, research and the likes who work part time to evaluate and approve product ideas.

Ad Hoc Committee

One created for short-term purpose and have limited life.

Standing Committee

Unique and permanent committee that deals with issues on an ongoing basis.

Staffing

Determines human resource needs, recruit, select, trains and develop human resources for jobs created by an organization.

Forecasting

Assessment of future human resource needs in relation to the current capabilities of the organization.

Time Series Method

Use historical data to develop forecasts of the future.

Explanatory/Casual Model

Attempts to identify the major variables that are related or caused particular past conditions.

Monitoring Method

Provide early waring signals of significant changes in established patterns and relationship.

Programming

Translating the forecasted human resource needs to personnel objectives and goals.

Evaluation and Control

Monitoring human resource action plans and evaluating their success.

Recruitment

Attracting qualified persons to apply for vacant positions in the company so that those who are best suited to serve the company may be selected.

Selection

Act of choosing from those that are available individuals most likely to succeed on the job.

Selection

To evaluate each candidate and to pick the most suited for the position available.

Application Blanks

Provides information about a person’s characteristics such as age

References

Written by previous employees, co-worker and etc. May provide vital information on the character of the applicant.

Interviews

Asking a series of relevant questions to the job candidate.

Testing

Involves evaluation of the future behavior and performance

Psychological Test

An objective, standard measure of sample behavior.

Aptitude Test

Person’s capacity or potential ability to learn.

Performance Test

Person’s current knowledge of a subjects.

Personality Tests

Personality traits as dominance, sociability, and conformity.

Interest Test

Person’s interest in fields of work.

Induction

New employee is provided with necessary information about the company.