IOM

INTRODUCTION TO MANAGEMENT

What is an Engineer?

LATIN

• INGENIUM

• meaning: Skillful

• Talented

• Natural capacity or clever invention

OXFORD

• designs, builds, and maintains engines, machines, and public works

• has a scientific training

• designs and builds complicated systems, structures, products, and machines

• specializes in a branch of engineering

What is Management?

• directs action of a group to achieving a goal in the most efficient manner

• getting things done through other people

• process of achieving a goal by working with and through other people and organizational resources

• is a purposive activity, directs group efforts into attaining a predetermined goal

• works with and through people to achieve an organizational goal with its limited resources in this changing world

THREE LEVELS OF MANAGEMENT

Top Level Management

• Senior-most position holders responsible for taking decisions that will affect the firm thus impacting the overall growth and development of the organization

Positions

• President

• Executive Vice President

• CEO

• Project manager/project coordinator

Roles

• Represents the whole enterprise

• Responsible for defining the character, mission, and objectives of the enterprise

• Establish and review the criteria for long-range plans

• Evaluate the performance of major departments

Middle Level Management

• Intermediary between the top level and lower level management

• Responsible for effective implementation of plans and objectives set by the top level management

Positions

• Project Engineer

• Division head

Roles

• Manage through other managers

• Make plans of intermediate range to achieve long range goals set by top level management

• Establish departmental policies, evaluate performance of subordinates and their managers

• Provide; integrating and coordinating functions

• Orchestrate decisions and activities of first line/lower level management

Lower Level Management

• The bottom-most group of managers in an organizations

• Responsible for managing work of non-managerial employees of the organization

Positions

• Construction Foreman

• Supervisor

• Section Chief

Roles

• Directly supervising the non-managerial employees

• Carry out plans and objectives set by the higher management using personnel and resources assigned

• Short-range operating plans governing what will be done tomorrow or next week, assign tasks to workers, supervise work, and evaluate performance

MANAGERIAL SKILLS

Interpersonal / Human Skills

• Skills related to dealing with others and leading, motivating, or controlling them

• Roles:

  • Figurehead

  • Leader

  • Liaison

Technical / Informational Skills

• Specific subject-related skills such as engineering, accountancy, and others

• Roles:

  • Monitor

  • Disseminator

  • Spokesperson

Conceptual / Decisional Skills

• Ability to realize critical factors that determines the organization’s success or failure

• Ability to see the forest in spite of the tree

• Roles:

  • Entrepreneur

  • Disturbance handler

  • Resource Allocator

  • Negotiator

MAIN FUNCTION OF MANAGERS

Planning

• Selecting missions and objectives.

• Requires decision making

Organizing

• Establishing the structure for the objective.

Staffing

• Keeling filled the organization structure.

Leading

• Influencing people to achieve the objective.

Controlling

• Measuring and correcting the activities.

WHAT IS AN ENGINEERING MANAGEMENT?

Engineering Management

• A specialized form of management that is required to successfully lead engineering and technical personnel

• Applied to either functional management or project management

Engineering Managers

• They use their training and experience to coach, mentor, and motivate technical personnel.

Engineering Manager’s Duties

• Overseeing team members’ processes associated with engineering or construction projects

• Providing management and leadership to a team of analysts or industrial engineers

• Helping a company or organization in identifying cost and budget needs for a specific project in early planning

• Delegating tasks and inspecting processes and project results for accuracy and quality

What Jobs can I get with an Engineering Management Degree?

• Material Logistics Professional

• Automation Engineer

• Chemical Process Engineer

• Firmware Engineer

• Construction Project Engineer

• Design Engineer

• Technical Consultant

DECISION-MAKING IN MANAGEMENT

What is Decision Making?

• The process of identifying and choosing an alternative course of action appropriate for the demands of the situation

• The heart of all management functions

Three Levels of Management

Strategic Level

• Long-term decisions

• (TOP LEVEL MANAGEMENT)

Tactical Level

• Medium-term decisions

• (MEDIUM LEVEL MANAGEMENT)

Operational Level

• Day-to-day decisions

• (LOWER LEVEL MANAGEMENT)

FOR ALL LEVELS

• Management must strive to choose the decision option as correctly as possible

• Since they have the power, they are also responsible for the outcome their decision brings

• The higher the management level, the bigger and more complicated decision-making becomes

Decision-Making Process

1. Diagnose the problem

2. Analyze the environment

3. Develop viable alternative

4. Evaluate alternative

5. Make a choice

6. Implement decision

7. Evaluate and adapt to decision results

APPROACHES IN PROBLEM SOLVING

Qualitative Evaluation

• Evaluation of alternatives using intuition and subjective decision

• Managers use this when:

  • problem is simple

  • problem is familiar

  • cost involved are not great

  • immediate decisions are needed

Quantitative Evaluation

• Refers to the alternative using any technique in a group classified as rational or analytical

• Evaluation method that yields numerical indices gathered primarily from formal (objective) methods of data collection, systematic and controlled observation, and prescribed research design

Quantitative Models for Decision Making

Inventory Models

• consists of several types all designed to help the engineer manager make decisions regarding INVENTORY

  • Economic Order Quantity Model - used to calculate number of items that should be ordered at one time to minimize total yearly cost of placing orders and carrying items in inventory.

  • Production Order Quantity Model - economic order quantity technique applied to production order.

  • Back Order Inventory Model - used for planned shortages.

  • Quantity Discount Model - used to minimize total cost when quantity discounts are offered by suppliers.

Queuing Theory

• describes how to determine the number of service units that will minimize both customer waiting time and cost of service

• Queuing theory is applicable for companies where waiting lines are common situations

Network Models

• Models where large complex tasks are broken into small segments that can be managed independently

  • Program Evaluation Review Technique - enables engineer managers to schedule, monitor, and control large and complex projects by employing three time estimates for each activity

  • Critical Path Method - network technique using only one time factor per activity that enables engineer managers to schedule, monitor and control large and complex projects

Forecasting

• There are instances where engineer managers make decisions that will have implications in the future

• Forecasting is a decision-making tool used by many businesses to help in budgeting, planning, and estimating future growth.

• Forecasting is the attempt to predict future outcomes based on past events and management insights.

Regression Analysis

• regression is a forecasting method that examines the association between two or more variables.

  • Simple Regression - one independent variable is involved

  • Multiple Regression - two or more variables are involved

Simulation

• model constructed to represent reality, on which conclusions about real-life problems can be used

• A highly sophisticated tool by which the decision-maker develops a mathematical model of the system under consideration

Linear Programming

• quantitative technique that is used to produce an optimum solution within the bounds imposed by constraints upon the decision

• a very useful decision-making tool when supply and demand limitations at plants, warehouses, or market areas are constraints upon the system

Sampling Theory

• quantitative technique where samples of populations are statistically determined to be used for a number of processes, such as quality control and marketing research

• when data gathering is expensive, sampling provides an alternative. Sampling saves time and money

Statistical Decision Theory

• refers to the rational way to conceptualize, analyze, and solve problems in situations involving limited or partial information about the decision environment

• focuses on the investigation of decision-making when uncertainty can be reduced by information acquired through experimentation

SEVEN FUNCTIONS OF MANAGEMENT

Planning

• determining the long and short term objectives (ends) of the institution or unit and the actions (means) that must be taken to achieve these objectives.

Purpose of Planning

• Gives direction to the organization

• Improves efficiency

• Eliminates duplication of efforts

• Concentrates resources on important services

• Reduces guesswork

• Improves communication and coordination of activities

Planning Heirarchy

• Strategic Planning

  - Top Level Managers

  - formulate long term strategic planning to reinforce the firm’s mission (mission clarifies organizational purpose)

  - strategic plans are specified for five years period or more; but circumstances dictate the planning horizon

• Tactical Planning

  - Middle Management

  - responsible for translating strategies onto shorter term tactics

  - tactical plans are often specified in one-year increments

  - translating strategic plans into measurable tactical objectives is important because most strategic objective is rather vague

• Operational Planning

  - First Line Managers (Lower Level)

  - More concerned with budget, quotas, and schedules

  - Refinements of tactical objectives in which work is defined and results are measured in small increments

  - time horizon for operational planning is very short. most reflect operational cycles.

Establish Objectives

• Every plan has the primary purpose of helping the organization succeed through effective management. Success is defined as achieving organizational objectives. These are performance targets, the end results that managers seek to achieve.

• Characteristics of Objectives:

  • Specific

  • Measurable, Realistic, and Challenging

  • Defined time period

Organizing

• defined as the arranging of component parts into functioning wholes.

• purpose of organizing is to coordinate activities so that a goal can be achieved.

• planning and organizing are often used synonymously. planning is the determination of what is to be accomplished, and organizing is the determination of how it will be accomplished.

Six Steps in the Organizing Process

1. Establish overall objectives

2. Formulate supporting objectives, policies, and plans

3. Identify and classify activities necessary to accomplish the objectives

4. Group the activities in light of the human and material resources available and the best way of using them under the circumstances

5. Delegate to the head of each group and the authorities necessary to perform the activities

6. Tie the groups together horizontally and vertically, through authority relationships, and information systems