The Field of Engineering Management

It is important to the engineer that he knows what Electrical 153,000 292,000 450,000
is expected of him so that he maybe able to perform Electronics 138,000
his job effectively and efficiently. Aerospace 90,000 78,000 80,000
Computer 79,000 74,000
Definition of “Engineering Profession” Environmental 54,000 47,000
“the art of directing the great sources of power in Chemical 30,000 33,000 67,000
nature, for the use and convenience of man.” Health & Safety 25,000 24,000
Materials 22,000 24,000
- The first issue (1866) of the English journal Petroleum 17,000 14,000
Engineering Nuclear 15,000 16,000
Biomedical 14,000 7,600
“the profession in which a knowledge of the Marine / Naval 9,200 4,900
mathematical and natural sciences gained by study, arch.
experience, and practice is applied with judgement to Mining and 7,100 5,200
develop ways to utilize, economically, the materials geological
and forces of nature for the benefit of mankind.” Agricultural 3,100 2,900
All others 170,000 243,000
- Engineers’ Council for Professional Development
What Engineers Do?
Engineering Jobs
 Engineers apply the theories and principles of
 Manufacturing Industries (~37%)
science and mathematics to the economical
o Product Research, Design
solution of practical technical problems.
o Production, Quality
 Engineers design machinery, products, systems,
o Plant, General
and processes for efficient and economical
performance.  Service Industries (~28%)
o Marketing, Purchasing, Recruiting
- U.S. Bureau of Labor Statistics o Logistics
Types of Engineers  Government (~12%)

 Civil Engineers The Functions of the Engineer

 Agricultural Engineers 1. the stone bladed axe which was a very useful tool;
 Mechanical Engineers and the irrigation system used to promote crop
 Electrical Engineers growing – 6000 to 3000 B.C.;
 Industrial Engineers 2. the pyramids of Egypt – 3000 to 600 B.C.;
 Chemical Engineers 3. roadbuilding by the Romans – 600 B.C.; to A.D.
 Aerospace Engineers 4. the production of paper and gun powder by the
 Computer Engineers Chinese – 100 A.D. to 1600 A.D.;
 Software Engineers 5. the production of steam engine and the spinning
and weaving machinery – 1601 A.D. to 1799 A.D.;
 Biomedical Engineers
and
Engineers of Future 6. the manufacture of cars and household appliances
– Modern Times
 Teamwork
 Flexibility Engineers have become an indispensable segment
 Interpersonal skills of the world’s professions

Engineering Employment Specific problem concerns:

1. Production of more food for a fast growing world
population;
2006 2002 2000 2. Elimination of air and water pollution;
Total (U.S.) 1,500,000 1,478,000 1,572,000 3. Solid waste disposals and Materials recycling
Civil 256,000 228,000 211,000 4. Reduction of noise in various forms;
Mechanical 227,000 215,000 259,000 5. Supplying the increasing demand for energy;
Industrial 201,000 194,000 210,000
6. preventing and solving crimes;
7. increasing demand for communication facilities
Following areas of the Engineer:
1. Research – process of learning about nature and
codifying this knowledge into usable theories.
2. Design and development – turning a product
concept to a finished physical item
3. Testing – new products or parts are tested for
work ability.
4. Manufacturing – production personnel or
assumes responsibility for the product.
5. Construction – (a civil engineer) is either directly Types of Organization & the Management Skills
in charge of the construction personnel or may Required of Engineers
have responsibility for the quality of the
construction process.
6. Sales – assist the company’s customer to meet
their needs
7. Consulting – work as a consultant
8. Government – performing any of the various task
in regulating, monitoring, and controlling the
activities of various institutions, public or private
9. Teaching – employment in school and is assigned
as a teacher of engineering course.
10. Management – assigned to managed groups of
people performing specific tasks.
Management Skills Required at Various Levels
The Engineer in various types of organization
Level 1 – the engineer will have a slim chance of
Level One – those with minimal engineering jobs like
becoming the general manager/president
retailing firms
Level 2 – the engineer may be assigned to head the
Level Two – those with a moderate degree of
engineering division
engineering jobs like transportation companies
Level 3 – provides the biggest opportunity for an
Level Three – those with high degree of engineering
engineer to become the president or general manager
jobs like construction firms
Management Levels

 First-line managers
o Foreman, supervisor, section chief
 Middle managers
o Plant manager, division head, chief
engineer, operations manager
 Top managers
o Chair of board, president, executive
vice president, CEO, CFO
Managerial Skills

 Technical skills
 Interpersonal skills
 Conceptual skills
  Employment of engineering and sciences
managers is expected to grow 8 percent over the
2006-16 decade, about as fast as the average for all
occupations.
- Bureau of Labor Statistics
Advanced Organizer
Managerial Roles

 Interpersonal
o Figurehead, leader, liaison
 Informational
o Monitor, disseminator, spokesperson
 Decisional
o Entrepreneurial, Disturbance handler,
Resource allocator, Negotiator
“Ordinary Managers” vs. “Engineering Managers”

 The engineering manager is distinguished from What is Engineering Management?

other managers because he/she possesses both an
 refers to the activity combining “technical
ability to apply engineering principles and a skill
knowledge with the ability to organize and
in organizing and directing people and projects.
coordinate worker power, materials, machinery,
 He/she is uniquely qualified for two types of jobs:
and money.”
the management of technical functions (such as
 Engineer’s main responsibility is to lead his group
design or production) in almost any enterprise, or
into producing a certain output consistent with the
the management of broader functions (such as
required specifications
marketing or top management) in a high-
technology enterprise.  Managership or presidency of any firm is the top
position an engineer may hope to occupy
Engineering Managers Nature of the Work
Management Defined
 Plan, coordinate, and direct research, design, and
“Creative problem solving process of planning,
production activities.
organizing, leading and controlling an organizations
 Supervise engineers, scientists, and technicians,
resources to achieve its mission and objectives”
along with support personnel.
 Apply knowledge of administrative procedures, (Higgins, 1991)
 Use communication skills extensively.
The Process of Management
- Bureau of Labor Statistics
 find out the objectives of the organization
Need for Engineering Managers  think of ways on how to achieve them
 decide on the ways to be adapted and the material
 High-tech nature of business
resources to be used
 Extensive planning
 determine the human requirements of the total job
 Uncertainties in products and processes
 assign specific tasks to specific persons
 Recruitment and evaluation of technical personnel
 Motivate them
 Leadership and motivation of technical personnel
 provide means to make sure that the activities are
Management and Engineering Career in the right direction

 Engineering and sciences managers held about Requirements for the Engineer Manager’s Job
228,000 jobs in 2006.
 a bachelor’s degree in engineering from a
 Manufacturing industries employed 38% of
reputable school
engineering and sciences managers.
 a few years’ experience
 Another 31% worked in services industries.
 training in supervision
 Other large employers include Federal, State, and
 special training in engineering management
local government agencies.
How one may become a successful Engineer  Desire to engage in occupational or work related
Manager competition with peers
 Desire to assert oneself and take charge
Kreitner (1992) indicates at least three general
preconditions for achieving lasting success as a  Desire to exercise power and authority over others
manager. They are as follows:  Desire to behave in a distinctive way which
includes standing out from the crowd
3 General conditions for achieving lasting success  Sense of responsibility in carrying out the routine
as a Manager duties associated w/ managerial work
1. Ability - refer to the capacity of an engineer Opportunity
manager to achieve organizational objectives
effectively and efficiently  the opportunity for successful management has
2. Effectiveness - “whether objectives are two requirements:
accomplished”
3. Efficiency - “relative amount of resources used in 1. Obtaining a suitable managerial job
obtaining effectiveness” 2. Finding a supportive climate once on the job
3. Supportive climate- characteristic by the
Motivation to Manage recognition of managerial talent through financial
Not many are motivated to manage other people. and non-financial rewards.

John B. Miner SUMMARY

 a management researcher  Known for their great contributions to the

 Developed a psychometric instrument to measure development of the world’s civilization. There are
objectively an individual motivation to manage. many areas where their presence is necessary.
 Management is concerned w/ planning, organizing,
The test is anchored to the following dimensions: leading, and controlling an organization’s
resources to achieve its mission and objectives.
 Favorable attitude toward those position of
 Ability, motivation to manage, and opportunity to
authority, such as superiors.
manage are met.
 Desire to engage in games or sports competitions
with peers

Decision Making
Introduction  The bigger issue is the manager who cannot or do
not want to make decisions. Delaney concludes
 Managers of all kinds and types, including the
that this type of managers is dangerous and
engineer manager, are primarily tasked to provide
“should be removed from their position as soon as
leadership in the quest for the attainment of the
possible”
organization’s objectives. If he is to become
 The higher the management level is, the bigger and
effective, he must learn the intricacies of decision-
the more complicated decision-making becomes.
making.
 The engineer manager’s decision–making skills Decision Making
will be very crucial to his success as a
professional. Good decisions, on the other hand,  It is the process of identifying and choosing
will provide the right environment for the alternative courses of action in a manner
continuous growth and success. appropriate to the demands of the situation
 According to Nickels and others
Decision-Making as a Management Responsibility “Decision making is the heart of all the
management functions”
 Decisions must be made at various levels in the
workplace. they are also made at the various stages Decision Making Process
in the management process.
Rational Decision making, according to David H. Holt,
 Decision-making is a responsibility of the engineer
is the process involving the following step:
manager. it is understandable for managers to
make the wrong decisions at times. 1. Diagnose Problem
2. Analyze Environment
3. Articulate Problem or Opportunity
4. Develop Viable Alternatives
5. Evaluate Alternatives
6. Make a Choice
7. Implement Decision
8. Evaluate and Adapt Decision Results
Diagnose Problem
 A problem exists when there is a difference
between the actual situation and a desired
situation
 Identification of the problem is the tantamount
to having the problem half-solved
Analyze Environment
 The objective of the environmental analysis is
the identification of the constraints, which may
be spelled out as either internal limitation or
external limitations.
 The environment consists of two major
concern:
 Internal environment – refers to
organizational activities within the firm that
Engineering Firm and its External Environment
surrounds decision making.
 External environment – refers to variables
the are outside the organization and not
typically within the short run control of top
management.
The objective of environmental analysis is the
identification of constraints, which may be spelled out
as either internal or external limitations
Example of Internal limitations are as follows:

 Limited funds available for the purchase of

equipment.
 Limited training on the part of employees.
 Ill designed facilities.
Examples of external limitations are as follows:

 Patents are controlled by other organizations.

 A very limited market for the company’s
Develop Viable Alternatives
products and services exists.
 Strict enforcement of local zoning regulations. Oftentimes, problems may be solved by any of the
solution offered. The best among the alternative
The Engineering Firm
solutions must be considered by management. This is
made possible by using a procedure with the following
steps:
1. Prepare a list of alternative solutions.
2. Determine the viability of each solutions.
3. Revise the list by striking out those which are not
viable.
Evaluate Alternatives
 Proper evaluation make choosing the right solution that managers tend to use the qualitative approach
less difficult. when:
 How the alternatives will be evaluated will depend
1. The problem is fairly simple.
on the nature of the problems, the objective of the
2. The problem is familiar.
firm, and the nature of the alternatives presented. It
3. The costs involved are not great Immediate
is suggesting that each alternative must analyzed
decisions are needed
and evaluated in terms of its value, cost, and risk
characteristics. Quantitative Models for Decision Making
Make a Choice 1. Inventory Models
2. Queuing Theory
Choice – Making
3. Network Models
Refers to the process of selecting among the 4. Forecasting
alternatives representing potential solution to a 5. Regression Analysis
problem. At this point, it is advises that “particular 6. Simulation
effort should be made to identify all significant 7. Linear Programming
consequences of each choices” 8. Sampling Theory
9. Statistical Decision Theory
Implement Decision
Inventory Model
 Implementation refers to carrying out the decision
so that the objectives sought will be achieved. To Inventory Models consist of several types all
make implementation effective, a plan must be designed to help the engineer manager make decisions
devised. regarding inventory
 At this stage, the resources must be made available 1. Economic order quantity model
so that decision may be properly implemented
It is one used to calculate the number of items that
Evaluate and Adapt Decision Results should be ordered at one time to minimize the total
 It is important for the manager to use control and yearly cost of placing orders and carrying the
feedback mechanism to ensure results and to items in inventory
provide information for the future decision.
 Control refers to actions made to ensure that
activities performed match the desired activities or
goals.
 Feedback refers to the process which requires
checking at each stage of the process to assure that
the alternatives generated, the criteria used in
evaluation, and the solution selected for
implementation are in keeping with the goals and
the objectives originally specified.
Approaches in Solving Problems
In decision-making, the engineer manager is faced
with the problems which may either be simple or 2. Production Order Quantity model
complex. to provide him with some guide, he must be
familiar with the following steps: This is an economic order quantity technique
applied to production orders.
1. Qualitative evaluation – refers to evaluation of
alternatives using intuition and subjective 3. Back Order Inventory Model
judgement.
This is an inventory model used for planned
2. Quantitative evaluation – refers to the evaluation
shortages.
of alternatives using any technique in a group
classified as rational and analytical. 4. Quantity discount model
Qualitative Evaluation An inventory model used to minimize the total
cost when quantity discounts are offered by
This term refers to evaluation of alternatives using
suppliers.
intuition and subjective judgement. Stevenson states
Queuing Theory
It is one that describes how to determine the
number of service units that will minimize both
customer waiting time and cost of service.
Network Model
These are models where large complex tasks
are broken into smaller segments that can be managed
independently
Simulation
 The Program Evaluation Review Technique
(PERT) Simulation is a model constructed to represent
reality, on which conclusions about real-life problems
A technique which enables engineer managers to can be used.
schedule, monitor, and control large and complex
projects by employing three time estimates for Linear Programming
each activity. It is a quantitative technique that is used to
 The Critical Path Method (CPM) produce an optimum solution within the bounds
imposed by constraints upon the decision.
This is a 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 when engineer managers make

decisions that will have implications in the future.
 Forecasting may be defined as “the collection of
past and current information to make predictions
about the future.
The Differences Between Forecasting & Prediction

Forecasting Prediction
Forecasting involves Prediction involves
into projection of the judgement in Sampling Theory
past into the future. management after taking
It is a quantitative technique where samples of
all available information
into account. populations are statistically determined to be used for a
Forecast involves Prediction involves the number of processes, such as quality control and
estimating the level of anticipated change into marketing research.
demand of a product on the future. It may include
Statistical Decision Theory
the basis of factors that even new factors that
generated the demand in may affect future Decision theory refers to the “rational way to
the past. demand. conceptualize, analyze and solve problems in
Forecasting is more Prediction is more situations involving limited or partial information
scientific. intuitive. about the decision environment”

Regression Analysis
Regression model is a forecasting method that
examines the association between two or more
variables.

 Simple Linear Regression

 Multiple Linear Regression
 Network Model Presentation
 Any project involves planning, scheduling and The cost and time for all the activities are estimated,
controlling a number or interrelated activities with and a network diagram is developed showing
use of limited resources, namely, men, machines, sequential interrelationships (predecessor and
materials, money and time. successor) between various activities during the
o The projects may be extremely large and planning stage.
complex such as construction of a housing,
Scheduling:
a highway, a shopping complex etc.
o Introduction of new products and research Based on the time estimate, the start and finish times
and development projects for each activity are worked out by applying forward
 It is required that managers must have a dynamic and backward pass techniques, critical path is defined,
planning and scheduling system to produce the along with the slack and float for non-critical paths.
best possible results and also to react immediately
Controlling:
to the changing conditions and make necessary
changes in the plan and schedule. Controlling refers to analyzing and evaluating the
actual progress against the plan. Reallocation of
A convenient analytical and visual technique of PERT
resources, crashing and review of projects with
and CPM prove extremely valuable in assisting the
periodical reports are carried out.
managers in managing the projects.
PERT stands for Project Evaluation and Review
Technique developed during 1950’s. The technique
was developed and used in conjunction with the
planning and designing of the Polaris missile project.
CPM stands for Critical Path Method which was
developed by Dupont Company and applied first to the
construction projects in the chemical industry.
Though both PERT and CPM techniques have
similarity in terms of concepts, the basic difference is;
CPM has single time estimate and PERT has three-
time estimates for activities and uses probability theory
to find the chance of reaching the scheduled time.
Project management generally consists of three
phases.
Planning:
Planning involves setting the objectives of the project.
Identifying various activities to be performed and
determining the requirement of resources such as men,
materials, machines, etc.