Introductions To Engineering Management (EM) , Lesson 1..

Lecturer; 1 Pre by Dr.TWANA

Engineering Management
What is management engineering?
Engineering management is a career that brings together the technological
problem-solving ability of engineering and the organizational, administrative,
and planning abilities of management in order to oversee the operational
performance of complex engineering driven enterprises. Engineering
Management & Industrial Engineering
Where industrial engineering has traditionally focused on the application of
engineering methods to the improvement of manufacturing and industry-
related processes, management engineering broadens that focus to include
other domains such as finance, business intelligence, health care and
information management.

Please see page 4

Leading

(0)
Introduction To Engineering Management

Engineering Manage1ne11t
Functions of Engineering Management

• Engineering Management is concen1ed with

the direct supervision of engineers and the
management functions (planning, organising,
leading and controlling) in a technological
organisation.
• Prepare engineers to become effective
leaders in meeting the challenges in this
new millennium

Major Pre1nises
~ Technology and business savvy represents a
very powerful combination of great den1and in
society
• Market environment is rapidly evolving
(changing marketplace con1plexities, web-
based teclmologies, globalization)
• Leaders with understanding of technology and
manage1nent perspectives are needed
• Engineers with proper manage1nent and
leadership training have great opportunities to
add value

1
 Work of an Engineer
As Technical Contributo

• Develop action plan for implementati n

• Define standards (performance metric )
• Select methodology/techniques
• Implement task with proper efforts
• ...6:1~~
~"'!'.! results and secure value
• R . rt findings (impact, lessons)
Introduction SEE..M 3530

Aims

• -~e engi11eers more effective as techni al

contributors (understand managerial po· ts
of view, effect teams coordination, drive o
add value)
• Ready engineers for managerial position
(managerial functions, success factors,
leadership talents, business/management
perspectives, expectations, contributions

2
 Dual Aims
engllleers more
.tv.u:ioAJ'e ·Make managers more
effective as technical effective in decisions
contributors (understand involving technologies
managerial points of view, (understand enginee1ing
language, limitations and
effect teams coordination, possibilities)
drive to add value)
·Ready managers for
· Ready engineers for contributing effectively in
managerial positions the management of a
(success factors, technology-critical
leadership talents, organisation.
business/management
perspectives)
!nb:oductioo SEEM 3530

E11gineering Manage111ent
Functions

Planning Leading ~
Directing "•

Manager
Engineer Manager

Organi1ing l Controlling
~

3
Enginee · g Management Functions

• Pl · ig (forecasting, setting objectives. action

pl~LU..g , a · ·stering policies, establishing
procedure)
• OJJrcuzifzi.rJ,g (selecting organizational structure,
delegating, establishing working relationship)
• Le1.rdm,g (deciding, communicating, motivating,
selecting/developing people)
• CoD.trolliD.g (setting pe1formance standards,
evaluating/documenting/correcting performance)

Skills for Technical Managers

Adtumistrative
Leadership Skills
Skills

Technical Skills

4
 Enterprise Objective:
Value Addition
Management-speak:
•ln.clre&l!le Sales ReVl'!lme (new • Efficiency - Accomplishing
aud enhanced products/services - tasks ·with the least amouut of
faster. better. cheaper - to create resources (time, money.
greater customer salisfaction) eqmpmeutl fucilities,
technology - know-how.
procedure, process. skills) -
•l<.ec:tucc:d Cost to Do Bm
· m· Le88
(simplified product design. ne w d() !h l11gs ngbr
technologies. i.mproved
productivity. raised efficiency.
reduced inventory , --ia supply
Accomplishing tasks with
cltatns. new productiou and
efforts commensurate with
marketing pa..rt:nersrups and the value created by these
alliances)
tasks - d(l c!,c rrgfrt thing.<,
l.nuoductton SEEM3530 n

- Project Scheduling
- Project Budgeting and Selection
• Organising
- Strategic decision-making
- Game theory
• Leading
- Incentives and Productivity (Principal-agent theory)
• Controlling
....
- Project Management
- Performance evaluation

5
 Heuristic vs. Analysis
Heuristic
• A technique to solve a problem \vith a "good'' ut not
necessarily Hoptimar· solution
• Based on experiences, hunches/instincts, and j

Analytical
• Formulate the decision model for the pr blem
• Use of computer and other tools to con uct an
extensive and thorough analysis to prod ce an
"optimal" solution

When Do Het1ristics Work ell?

► Optimal answers are often obvious

Draw on life experience to con1e up with an ans, er

► Task environments are forgiving of mistakes

A wide range ofbehaviors/solutions are optimal r near-
optimal

► One can learn by trial and error

Reinforcement learning. be more likely to repeat ctions that
generate good results and less likely to repeat act that
produce bad ones

6
 en Do Heuristics Fail Us?

► Ambiguity of Feedback
The trial and error method does not work: the decision is not
repeated or feedback is ambiguous

► Complexity of Decision
The problem is not intuitive: beyond our co 0 ·1ive
capabilities

► High Penalty for Mistakes

A small mistake could lead to serious consequences

Tips for Engineering Managers

-1 -ro1~"" Technical Competence & Innovative
capabilities
" Bn,_crh Up Co1nmunications skills (ask, listen, write
and talk)
· Show unfailing reliability to induce trust and
confidence
• Be Proactive in seeking challenging tasks
mrmoit readiness for assuming larger responsibilities
(take courses, practice skills, gain experience)
lntroduclion SEEvD530