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Engineering is the profession in which a knowledge of the mathematical and natural sciences is applied with judgment to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind. As engineers, they are not directly trained to deal with people, it is expected that their weakness will most often be on people-based skills.
Engineering is the profession in which a knowledge of the mathematical and natural sciences is applied with judgment to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind. As engineers, they are not directly trained to deal with people, it is expected that their weakness will most often be on people-based skills.
Engineering is the profession in which a knowledge of the mathematical and natural sciences is applied with judgment to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind. As engineers, they are not directly trained to deal with people, it is expected that their weakness will most often be on people-based skills.
Engineers are expected to perform a variety of tasks depending on their specialization
and job level. It is important to the engineer that he knows what is expected of him to perform his job effectively and efficiently. The next concern will be to identify the skills required which the engineer did not possess. As engineers, they are not directly trained to deal with people, it is expected that their weakness will most often be on people-based skills. These difficulties will be more apparent once they are assigned to occupy management positions. It follows that if the engineer manager would want to do his job well, some exposure to engineering management activities will be necessary.
ENGINEERING Engineering is the profession in which a knowledge of the mathematical and natural sciences gained by study, experience, and practice is applied with judgment to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind.
THE FUNCTIONS OF THE ENGINEER Even as engineers are currently producing solutions to many of the difficulties faced by mankind, much is still expected of them. Specifically, the functions of engineering encompass the following areas: 1. Research where the engineer is engaged in the process of learning about nature and codifying this knowledge into usable theories. 2. Design and Development where the engineer undertakes the activity of turning a product concept to a finished physical items. Design for manufacturability and value engineering teams (a feature of some companies) are charged with improvement of designs and specifications at the research, development, design, and production stages of product development. 3. Testing where the engineer works in a unit where new products or parts are tested for workability. 4. Manufacturing where the engineer is directly in charge of production personnel or assumes responsibility for the product. 5. Construction this is where the construction engineer (civil engineer usually) is directly in charge of the construction personnel or may have responsibility for the quality of the construction process. 6. Saleswhere the engineer assists the companys customers to meet their needs, especially those that require technical expertise. 7. Consulting where the engineer works as consultant of any individual or organization requiring his services. 2
8. Government where the engineer may find employment in the government performing any of the various tasks in regulating, monitoring, and controlling the activities of various institutions, public or private.9. 9. Teaching where the engineer gets employment in a school and is assigned as teacher of engineering courses. Some of them become deans, vice presidents, and presidents. 10. Management where the engineer is assigned to mange groups of people performing specific tasks.
ENGINEERING MANAGEMENT DEFINED Engineering management refers to the activity combining technical knowledge with the ability to organize and coordinate worker power, materials, machinery, and money. When the engineer is assigned to supervise the work of even a few people, he is already engaged in the first phase of engineering management. His main responsibility is to lead his group into producing a certain output consistent with the required specifications. The top position an engineer manager may hope to occupy is the general manager ship or presidency of any firm, large or small. As he scales the management ladder, he finds that the higher he goes up, the less technical activities he performs, and the more management tasks he accepts. In this case, it is but proper that the management functions taught in pure management courses be well understood by the engineer manager.
THE PROCESS OF MANAGEMENT Management is a process consisting of planning, organizing, directing (or leading), and controlling. Management must seek to find out the objectives of the organization, think of ways how to achieve them, decide on the ways to be adapted and the material resources to be used, determine the human requirements of the total job, assign specific tasks to specific persons, motivate them, and provide means to make sure that the activities are in the right direction.
REQUIREMENTS FOR THE ENGINEER MANAGERS JOB Depending on the type of products or services a firm produces, the engineer manager must have the following qualifications: 1. a bachelors degree on engineering from a reputable school; In some cases a masters degree in engineering or business management is required; 2. a few years experience in pure engineering job; 3. training in supervision; 4. special training in engineering management
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HOW ONE MAY BECOME A SUCCESSFUL ENGINEER MANAGER Successful engineer managers do not happen as a matter of chance, although luck is contributory factor. It is very important for the engineer manager to know the various factors leading to successful management. Kreitner indicates at least three general preconditions for achieving lasting success as a manager: Ability Managerial ability refers to the capacity of an engineer manager to achieve organizational objectives effectively and efficiently. Effectiveness, according to Higgins, refers to a description of whether objectives are accomplished, while efficiency is a description of the relative amount of resources used in obtaining effectiveness.
Motivation to Manage Many people have the desire to work and finish specific tasks assigned by superiors, but not many are motivated to mange other people so that they may contribute to the realization of the organizations objective.
Opportunity Successful managers become possible only if those having the ability and motivation are given the opportunity to mange. The opportunity for successful management has two requirements namely obtaining a suitable managerial job, and finding a supportive climate once on the job.
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1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8. Drive out fear, so that everyone may work effectively for the company 9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.Eliminate work standards (quotas) on the factory floor. Substitute leadership.Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. 12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. 5
Managers of all kinds and types, including the engineer manager, are primarily tasked to provide leadership in the quest for the attainment of the organizations objectives. If he is to become effective, he must learn the intricacies of decision-making. Many times, he will be confronted by situations where he will have to choose from among various options. Whatever is choice, it will have effects, immediate or otherwise, in the operations of this organization. The engineer managers decision-making skills will be very crucial to his success as a professional. A major blunder in decision-making may be sufficient to cause the destruction of any organization. Good decisions, on the other hand, will provide the right environment for continuous growth and success of any organized effort.
DECISION MAKING AS A MANAGEMENT RESPONSIBILTY Decisions must be made at various levels in the workplace. They are also made at the various stages in the management process. If certain resources must be used, someone must make a decision authorizing certain persons to appropriate such resources. Decision-making is a responsibility of the engineer manager. It is understandable for managers to make wrong decisions at times. The wise manager will correct them as soon as they are identified. The bigger issue is the manager who cannot or do not want to make decisions. Management must strive to choose a decision option as correctly as possible. Since they have that power, they are responsible for whatever outcome their decisions bring. The higher the management level is, the bigger and the more complicated decision-making becomes.
WHAT IS DECISION-MAKING? Decision-making may be defined as the process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation. The definition indicates that the engineer manager must adapt a certain procedure designed to determine the best option available to solve certain problems.
THE DECISION-MAKING PROCESS Following are the important steps of the decision making process. 6
Identifying the Problem Analyzing the Problem Gathering Information Developing Alternative Solutions Evaluation of alternatives Select the best alternative Execute the decision Ensuring Feedback
STEP 1: Identifying the Problem: Identification of the real problem before a business enterprise is the first step in the process of decision-making. It is rightly said that a problem well-defined is a problem half- solved. Clear distinction should be made between the problem and the symptoms which may cloud the real issue. In brief, the manager should search the 'critical factor' at work. It is the point at which the choice applies. Similarly, while diagnosing the real problem the manager should consider causes and find out whether they are controllable or uncontrollable. STEP 2: Analyzing the Problem: After defining the problem, the next step in the decision-making process is to analyze the problem in depth. This is necessary to classify the problem in order to know who must take the decision and who must be informed about the decision taken. STEP 3: Gathering Information: After defining the problem and analyzing its nature, the next step is to obtain the relevant information/data about it. Managers seek out a range of information to clarify their options once they have identified an issue that requires a decision. Managers may seek to determine potential causes of a problem, the people and processes involved in the issue and any constraints placed on the decision-making process. STEP 4: Developing Alternative Solutions: After the problem has been defined, diagnosed on the basis of relevant information, the manager has to determine available alternative courses of action that could be used to solve the problem at hand. Only realistic alternatives should be considered. It is equally important to take into account time and cost constraints and psychological barriers that will restrict that 7
number of alternatives. If necessary, group participation techniques may be used while developing alternative solutions as depending on one solution is undesirable. Step 5: Evaluation of alternatives: Use your judgment principles and decision-making criteria to evaluate each alternative. In this step, experience and effectiveness of the judgment principles come into play. You need to compare each alternative for their positives and negatives. STEP 6: Select the best alternative: After preparing alternative solutions, the next step in the decision-making process is to select an alternative that seems to be most rational for solving the problem. The alternative thus selected must be communicated to those who are likely to be affected by it. Acceptance of the decision by group members is always desirable and useful for its effective implementation. STEP 7: Execute the decision: After the selection of the best decision, the next step is to convert the selected decision into an effective action. Without such action, the decision will remain merely a declaration of good intentions. Here, the manager has to convert 'his decision into 'their decision' through his leadership. For this, the subordinates should be taken in confidence and they should be convinced about the correctness of the decision. Thereafter, the manager has to take follow- up steps for the execution of decision taken. STEP 8: Ensuring Feedback: Feedback is the last step in the decision-making process. Here, the manager has to make built-in arrangements to ensure feedback for continuously testing actual developments against the expectations. It is like checking the effectiveness of follow-up measures. Feedback is possible in the form of organized information, reports and personal observations. Feedback is necessary to decide whether the decision already taken should be continued or be modified in the light of changed conditions.
APPROACHES IN SOLVING PROBLEMS I. Qualitative Evaluation This term refers to evaluation of alternatives using intuition and subjective judgment. Stevenson states that managers tend to use qualitative approach when: 1. The problem is fairly simple. 2. The problem is familiar. 3. The costs involved are not great. 8
4. Immediate decisions are needed. Example: A factory operates on three shifts with the following schedule: First Shift: 6:00 A.M to 2:00 P.M. Second Shift: 2:00 P.M to 10:00 P.M Third Shift: 10:00 P.M to 6:00 P.M Each shift consists of 200 workers manning 200 machines. On September 16, 1996, the operations went smoothly until the factory manager, an industrial engineer, was notified at 1:00 P.M that five of the workers assigned to the second shift could not report to work because of injuries sustained in a traffic accident while they were on their way to the factory. Because of time constraints, the manager made an instant decision on who among the first shift workers would work overtime to man the five machines.
II. Quantitative Evaluation This term refers to the evaluation of alternatives using any technique in a group classified as rational and analytical. Quantitative Models for Decision Making A. Inventory Models 1. Economic Order Quantity Model This one is used to calculate the number of items that should be ordered at one time to minimize the total yearly cost of placing orders and carrying the items in inventory. 2. Production Order Quantity Model This is an economic order quantity technique applied to production orders. 3. Back Order Inventory Model This is an inventory model used for planned shortages. 4. Quantity Discount Model This is an inventory model to minimize the total cost when quantity discounts are offered by suppliers. B. Queuing Theory 9
The queuing theory is one that describes how to determine the number of service units that will minimize both customers waiting time and cost of service. The queuing theory is applicable to companies where waiting lines are a common situation. Examples are cars waiting for service at a car service center, ships and barges waiting at the harbor for loading and unloading by dock workers, programs to be run in a computer system that processes jobs, etc. C. Network Models These are models where large complex tasks are broken into smaller segments that can be managed independently. The two most prominent network models are: 1. Program Evaluation Review Technique (PERT) This is a technique which enables engineer managers to schedule, monitor, and control large and complex projects by employing three time estimates for each activi 2. Critical Path Method (CPM) 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. D. Forecasting Forecasting may be defined as the collection of past and current information to make predictions about the future. E. Regression Analysis The regression model is a forecasting method that examines the association between two or more variables. It uses data from previous periods to predict future events. Regression analysis may be simple or multiple depending on the number of independent variables present. When one independent variable is involved, it is called simple regression; when two or more independent variables are involved, it is called multiple regressions. F. Simulation Simulation is a model constructed to represent reality, on which conclusions about real- life problems can be used. It is a highly sophisticated tool by means of which the decision maker develops a mathematical model of the system under consideration. Simulation does not guarantee an optimum solution, but it can evaluate the alternatives fed into the process by the decision maker. G. Linear Programming 10
Linear programming is a quantitative technique that is used to produce an optimum solution within the bounds imposed by constraints upon the decision. Linear programming is very useful as a decision-making tool when supply and demand limitations at plants, warehouse or market areas are constraints upon the system. H. Sampling Theory Sampling theory is a 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, in effect, saves time and money. I. Statistical Decision-Theory Decision theory refers to the rational way to conceptualize, analyze and solve problems in situations involving limited or partial information about the decision environment.
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The Nature of Planning There are many instances when managers are overwhelmed by various activities which at times becloud his judgment. This must be expected since anybody who is confronted by several situations happening simultaneously will lose sight of the more important concerns. To minimize mistakes in decision-making, planning is undertaken. A plan, which is the output of planning, provides a methodical way of achieving desired results. In the implementation of activities, the plan serves as a useful guide. Without the plan, some minor tasks may be afforded major attention which may, later on, hinder the accomplishment of objectives.
PLANNING DEFINED Planning, according to Nickels and others, refers to the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives. This definition is useful because it relates the future to what could be decided now. Aldag and Stearns, on the other hand, define planning as the selection and sequential ordering of tasks required to achieve an organizational goal. This definition centers on the activity required to accomplish the goals. The definition of Cole and Hamilton provides a better guide on how to effectively perform this vital activity. Planning, according to them is 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.
PLANNING AT VARIOUS MANAGEMENT LEVELS Planning activities undertaken at various levels are as follows: 1.) Top management level strategic planning 2.) Middle management level intermediate planning 3.) Lower management level operational planning
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Strategic Planning The term strategic planning refers to the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. The top management of any firm is involved in this type of planning. Intermediate Planning Intermediate planning refers to the process of determining the contributions that subunits can make with allocated resources. Operational Planning The term operational planning refers to the process of determining how specific tasks can best be accomplished on time with available resources. This type of planning is a responsibility of lower management. It must be performed in support of the strategic and intermediate plan.
Chief Executive Officer, President, Vice Presidents, General Manager, Division Heads Functional Managers, Product Line Managers, Department Heads Unit Managers, First Line Supervisors MANAGEMENT LEVEL PLANNING HORIZON Top Management Lower Management Middle Management Intermediate Planning (6 months 2 years) Strategic Planning (1-10 years)
Operational Planning (1 week 1 year) 13
THE PLANNING PROCESS Generally, planning involves the following: 1.) Setting organizational, divisional or unit goals 2.) Developing strategies or tactics to reach those goals 3.) Determining resources needed and 4.) Setting standards
Setting Organizational, Divisional or Unit Goals The first task of the engineer manager is to provide a sense of direction to his firm (if he is the CEO), to his division (if heads a division), or to his unit (if he is a supervisor). The setting of goals provides an answer to the said concern. If everybody on the firm (or division or unit, as the case may be) is aware of the goals, there is a big chance that everybody will contribute his share in the realization of such goals. Goals may be defined as the precise statement of results sought, quantified in time and magnitude, where possible. Developing Strategies or Tactics to Reach Goals After determining the goals, the next task is to devise some means to realize them. The ways to realize the goals are called strategies and these will be the concern of top management. The middle and lower management will adapt their own tactics to implement their plans. A strategy may be defined as a course of action aimed at ensuring that the organization will achieve its objectives. On the other hand, a tactic is a short-term action taken by management to adjust to negative internal or external influences. They are formulated and implemented in support of the firms strategies. Determining Sources Needed When particular sets of strategies or tactics have been devised, the engineer manager will, then, determine the human and nonhuman resources required by such strategies or tactics. Even if the resource requirements are currently available, they must be specifies. The quality and quantity of resources needed must be correctly determined. Too much resource in terms of either quality or quantity will be wasteful. Too little resources will mean loss of opportunities for maximizing income. Setting Standards 14
The standards for measuring performance may be set at the planning stage. When actual performance does not match with the planned performance, corrections may be made or reinforcements given. A standard may be defined as a quantitative or qualitative measuring device designed to help monitor the performance of people, capital goods, or processes. TYPES OF PLANS Plans are of different types. They may be classified in terms of functional areas, time horizon and frequency of use. Functional Area Plans Plans may be prepared according to the needs of the different functional areas. Among the types of functional area plans are the following: 1.) Marketing Plan This is the written document or blueprint for implementing and controlling an organizations marketing activities related to a particular marketing strategy.
2.) Production Plan This is the written document that states the quantity of output a company must produce in broad terms and by product family.
3.) Financial Plan It is a document that summarizes the current financial situation of the firm, analyzes financial needs and recommends a direction for financial activities.
4.) Human Resource Management Plan It is a document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the companys strategic plan.
Plans with Time Horizon Plans with time horizon consist of the following: 1.) Short-range Plans These are plans intended to cover a period of less than one year. First-line supervisors are mostly concerned with these plans.
2.) Long-range Plans These are plans covering a time span of more than one year. Middle and top management mostly undertake these.
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Plans According to Frequency of Use 1.) Standing Plans These are plans that are used again and again, and they focus on managerial situations that recur repeatedly. They may be further classified as follows:
a. Policies they are broad guidelines to aid managers at every level in making decisions about recurring situations or functions. b. Procedures they are plans that describe the exact series of actions to be taken in a given situation. c. Rules they are statements that either require or forbid a certain action.
2.) Single-Use Plans These are plans specifically developed to implement courses of action that are relatively unique and are unlikely to be repeated. They may be further classified as follows: a. Budget a plan that sets forth the projected expenditure for a certain activity and explains where the required funds will come from. b. Program a single-use plan designed to coordinate a large set of activities. c. Project usually more limited in scope than a program and is sometimes prepared to support a program.
MAKING PLANNING EFFECTIVE Planning may be made successful if the following are observed: 1.) Recognize the planning barriers Managers inability to plan Improper planning process Lack of commitment to the planning process Improper information Focusing on the present at the expense of the future Too much reliance on the planning department Concentrating on only the controllable variables
2.) Use of aids to planning Gather as much information as possible Develop multiple sources of information Involve others in the planning process
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The manager needs to acquire various skills in management, including those for organizing technical activities. In this highly competitive environment, the unskilled manager will not be able to bring his unit, or his company, as the case may be, to success. The value of a superior organizational set-up has been proven dramatically during the Second World War when a smaller American Naval force confronted the formidable Japanese navy at Midway. Military historians indicated that the Americans emerged victorious because of the superior organizational skills of their leaders. Even today, skills in organizing contribute largely to the accomplishment of the objectives of many organizations, whether they are private businesses, however, cannot hope to make huge profit unless they are properly organized to implement their plans. REASONS FOR ORGANIZING Organizing is undertaken to facilitate the implementation of plans. In effective organizing, steps are undertaken to breakdown the total job into more manageable man-size jobs. Doing these will make it possible to assign the particular persons. In turn, these will help facilitate the assignment of authority, responsibility, and accountability for certain functions and tasks. ORGANIZING DEFINED Organizing is important function which refers to the "structuring of resources and activities to accomplish objectives in an efficient and effective manner." The arrangement or relationship of position within an organization is called the structure. The result of the organizing process is the structure. THE PURPOSE OF THE STRUCTURE 1. It defines the relationships between tasks and authority for individuals and departments. 2. It defines formal reporting relationships, the number of levels in the hierarchy of the organization, and the span of control. 3. It defines the groupings of individuals into departments and departments into organization. 4. It defines the system to effect coordination of effort in both vertical (authority) and horizontal (tasks) directions.
When structuring an organization, the manager must be concerned with the following: 17
1. Division of labor - determining the scope of work and how it is combined in a job. 2. Delegation of authority - the process of assigning various degrees of decision-making authority to subordinates. 3. Departmentation - the grouping of related jobs, activities or processes into major organizational subunits. 4. Span of control - the number of people who reported directly to a given manager. 5. Coordination - the linking of activities in the organization that serves to achieve a common goal or objective. THE FORMAL ORGANIZATION After a plan is adapted, management will proceed to form an organization to carry out activities indicated in the plan. The formal organization is the structure that details lines of responsibilities, authority, and position. What is depicted in the organization chart is the formal organization. It is the planned structure and it represents the deliberate attempt to establish patterned relationships among the components that will meet the objectives effectively. The formal structure is described by management through: 1. Organizational chart 2. Organizational manual and 3. Policy manuals.
The organizational chart is a diagram of the organizations official positions and formal lines of authority. The organizational manual provides written descriptions of authority relationships, details the functions of major organizational units, and describes job procedures. The policy manual describes personal activities and company policies. INFORMAL GROUPS Formal organizations require the formation of formal groups which will be assigned to perform specific tasks aimed at achieving organizational objectives. The formal group is a part of the organization structure. There are instances when members of an organization spontaneously form a group with friendship as a principal reason for belonging. This group is called an informal group. It is not part of a formal organization and it does not have a formal performance purpose. Informal groups are oftentimes very useful; in the accomplishment of major tasks, especially if these tasks conform to the expectations of the members of the informal group. 18
The informal organization, useful as it is, is vulnerable to expediency, manipulation, and opportunism, according to Valentine. It low visibility, Valentine added, makes it difficult for management to detect these perversions and considerable harm can be done to the company. The manager is, therefore warned that he must be on the lookout for the possible difficulties that the informal groups may do the organization. It will be to his best interest if he could make the informal groups work for the organization. TYPES OF ORGANIZATION STRUCTURES Before the commencement of activities, the decision-makers in an organization will have to decide on what structure to adapt. Depending on the size and type of operations, a certain structural types may best fit the requirements. Organizations may be classified into three types. They are the following: 1. Functional Organization this is a form of departmentalization in which everyone engaged in one functional activity, such as engineering or marketing, is a grouped into one unit. 2. Product or Market Organization this refers to the organization of a company by division that brings together all those involved with a certain type of product or customer. 3. Matrix Organization an organizational structure in which each employee reports both a function or division manager and to a project or group manager.
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