Management of Engineering Projects: Planning, Organizing, and Decision-Making

Comprehensive practice flashcards covering planning, organizing, and decision-making concepts from the Management of Engineering Projects lecture series.

According to Nickels and others, how is planning defined?

Planning is the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.

How do Aldag and Stearns define planning?

They define planning as the selection and sequential ordering of tasks required to achieve an organizational goal.

What is Cole and Hamilton's definition of planning?

Deciding what will be done, who will do it, where, when and how it will be done, and the standards to which it will be done.

What is strategic planning, which management level performs it, and what is its planning horizon?

It is the process of determining major organizational goals, policies, and strategies for obtaining and using resources. It is performed by Top Management (e.g., CEO, President, Vice Presidents) with a planning horizon of $1$ to $10\text{ years}$.

What is intermediate planning, which management level performs it, and what is its planning horizon?

It is the process of determining the contributions subunits can make with allocated resources to support the strategic plan. It is conducted by Middle Management (e.g., Functional Managers, Department Heads) with a planning horizon of $6\text{ months}$ to $2\text{ years}$.

What is operational planning, which management level performs it, and what is its planning horizon?

It is the process of determining how specific tasks can be accomplished on time with available resources. It is performed by Lower Management (e.g., Unit Managers, First Line Supervisors) with a planning horizon of $1\text{ week}$ to $1\text{ year}$.

How are goals defined within the planning process?

Goals are defined as the precise statement of results sought, quantified in time and magnitude, where possible.

What is the difference between a strategy and a tactic?

A strategy is a course of action aimed at ensuring the organization achieves its objectives, whereas a tactic is a short-term action taken by management to adjust to negative internal or external influences.

What four functional area plans are developed within an organization?

1. Marketing plan\n2. Production plan\n3. Financial plan\n4. Human resource management plan

What are standing plans and what are their three classifications?

Standing plans are plans used repeatedly that focus on recurring managerial situations. They are classified into: policies (broad guidelines), procedures (exact series of actions), and rules (statements requiring or forbidding actions).

What are single-use plans and what are their three classifications?

Single-use plans are developed to implement relatively unique courses of action that are unlikely to be repeated. They are classified into: budgets (projected expenditures and funding sources), programs (plans coordinating large sets of activities), and projects (plans more limited in scope than programs).

What is organizing, and what are the primary reasons for it?

Organizing is the structuring of resources and activities to accomplish objectives efficiently and effectively. It facilitates the implementation of plans, breaks down large tasks into manageable tasks, assigns specific tasks to specific individuals, and clarifies authority, responsibility, and accountability.

What five key concerns must an engineer manager address when structuring an organization?

1. Division of labor\n2. Delegation of authority\n3. Departmentation\n4. Span of control\n5. Coordination

Through what three documents or tools does management describe the formal organization?

1. Organization Chart (diagram of official positions and formal lines of authority)\n2. Organizational Manual (written descriptions of authority relationships, subunit functions, and job procedures)\n3. Policy Manual (describes personnel activities and company policies)

What are informal groups, and what are the six reasons or factors for joining or forming them?

Informal groups are formed spontaneously based on friendship and social bonds, lack official performance goals, and are not part of the formal organization. The six reasons are: friendship, common interest, proximity, need satisfaction, collective power, and group calls.

What are the advantages and disadvantages of a functional organization structure?

Advantages: promotes specialization, efficient resource use, centralized decision-making, strong departmental communication/coordination, and technical career growth.\nDisadvantages: poor inter-department coordination, delayed cross-department decisions, routine tasks with limited motivation, and narrow focus with limited management training.

What is a matrix organization?

An organizational structure that combines functional and project structures, requiring employees to report to both a functional manager and a project manager.

What are the three types of authority in an organization?

1. Line Authority (right to direct subordinates and ensure task completion)\n2. Staff Authority (right to advise superiors and support line departments)\n3. Functional Authority (specialist's right to oversee personnel in their area of expertise across departments)

What is the difference between an ad hoc committee and a standing committee?

An ad hoc committee is temporary and created for short-term tasks, whereas a standing committee is permanent and handles ongoing organizational issues.

How is decision-making defined, and how did Nickels and others describe its relation to management?

Decision-making is the process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation. Nickels and others characterized it as 'the heart of all the management functions.'

What are the eight steps in David H. Holt's rational decision-making process?

1. Diagnose Problem\n2. Analyze Environment\n3. Articulate Problem or Opportunity\n4. Develop Viable Alternatives\n5. Evaluate Alternatives\n6. Make a Choice\n7. Implement Decision\n8. Evaluate and Adapt Decision Results

How do qualitative and quantitative evaluations differ when solving problems?

Qualitative evaluation assesses alternatives using intuition and subjective judgment, whereas quantitative evaluation assesses alternatives using rational and analytical techniques.

What are the four common inventory models used in quantitative decision-making?

1. Economic order quantity (EOQ) model\n2. Production order quantity model\n3. Back order inventory model\n4. Quantity discount model

What is the purpose of queuing theory, and in what situations is it applied?

It determines the number of service units needed to minimize customer waiting time and service costs in situations where waiting lines occur (e.g., cars at a service center, ships waiting at harbors, computer programs waiting to be processed).

What is the key difference between PERT and CPM network models?

PERT (Program Evaluation and Review Technique) uses $3$ time estimates for each activity, whereas CPM (Critical Path Method) uses $1$ time estimate for each activity.

What is regression analysis, and how do simple and multiple regression differ?

Regression analysis is a forecasting method that examines the relationship between variables using past data to predict future events. Simple regression involves $1$ independent variable, while multiple regression involves $2$ or more independent variables.

What is simulation in quantitative decision-making, and what is its limitation?

Simulation is a mathematical model representing a real-life problem used to test and evaluate alternatives; its limitation is that it does not guarantee an optimal solution, but rather evaluates the alternatives provided.

What is linear programming (LP)?

A quantitative technique used to find the optimal solution to a decision problem within constraints or limitations, such as supply and demand limits affecting plants, warehouses, or market areas.

Why is sampling theory used in management decision-making?

It uses statistically selected samples from a population to save time and money when gathering data from the entire population is too expensive or time-consuming, such as in quality control and marketing research.

What are Bayesian analysis and the Bayes criterion in statistical decision theory?

Decision theory provides a rational approach to solving problems when information is limited or incomplete. Bayesian analysis updates the initial probabilities or assessments when new information becomes available. Bayes criterion helps select the decision with the maximum expected payoff or minimum expected loss.