ENGINEERING MANAGEMENT

CHAPTER 1
INNOVATION is the word that Engineer must have on their mind, especially at some specific concerns our world is facing.

CONCERNS OUR WORLD FACING

1. The production of move food for a fast growing world population.
2. The elimination of air and water pollution.
3. Solid waste disposal and materials recycling.
4. The reduction of noise in various forms.
5. Supplying the increasing demand for energy.
6. Supplying the increasing demand for mobility.
7. Preventing and solving crimes.
8. Meeting the increasing demand for communication facilities

FUNCTIONS OF ENGINEERING
1. RESEARCH- process of learning about nature and codifying this knowledge into usable theories.
2. DESIGN AND DEVELOPMENT- turning a product concept to a finish physical system.
3. TESTING- new products or parts are tested for work ability.
4. MANUFACTURING- directly in charge of production personnel or assumes responsibility for the product.
5. CONSTRUCTION- directly in charge in charge of construction personnel or have responsibility for the quality of
process.
6. SALES- assist company's customer to meet their needs.
7. CONSULTING- works as consultant of any individual or organization requiring his services.
8. GOVERNMENT- engineer may find an employment in the government performing any of the various tasks in
regulating, monitoring, and controlling the activities of various institutions, public or private.
9. TEACHING- the engineer gets employment in a school as a teacher of engineering courses.
10. MANAGEMENT- the engineer is assigned to manage groups of people performing.

THE ENGINEERING IN VARIOUS TYPES OF ORGANIZATION

Organizations may be classified according to the degree of engineering jobs performed
1. LEVEL ONE (MINIMAL ENGINEERING JOBS)
 The backbone of the organization
 Has the ability to work well in a wide range of people
 Spend most of their time in the office firm, responsible for pro planning, creating time lines, organizing
regular meetings, working with contractors and clients and etc.
2. LEVEL TWO (MODERATE ENGINEERING JOBS)
 The engineer may be assigned to head the engineering division.
 Credibility and field expertise is indeed a need here.
 This is the zone of labor intensive with a combination of time management.
3. LEVEL THREE (HIGH ENGINEERING JOBS)
 It’s all about running the show while producing effective results.
 This is the biggest opportunity for an engineer to become the president or general manager.
 Tight spot and different level of difficulty and an as engineer manager you must know how to address this
kind of hardship.

ENGINEERING MANAGEMENT
 Specialized form of management that is required to successfully lead engineering or technical personnel and
projects.
 Term can be used to describe either functional management or project management.
  The activity combining "technical knowledge with the ability to organize and coordinate worker power,
materials, machinery, and money"

MANAGEMENT creative problem solving-process of planning, organizing, leading, controlling of an organization to attain
its goal.

THE PROCESS OF MANAGEMENT

1. Planning
2. Leading
3. Controlling
4. Organizing

REQUIREMENTS FOR THE ENGINEER MANAGER'S JOB

1. A bachelor's degree in engineering from a reputable school; in some case, a master's degree in engineering or
business management is required
2. A few years of experience in pure engineering job
3. Training in supervision
4. Special training in engineering management

HOW ONE MAY BECOME A SUCCESSFUL ENGINEERING MANAGER?

 An engineering manager directs, plans, and coordinates activities, as well as spends time supervising employees in
architectural and engineering companies.
 They are responsible for developing the overall concepts of new products and/or solving problems that may
prevent its completion.
 Engineering managers set schedules, create administrative procedures, and propose budgets for projects and
programs.

THREE MAJOR FACTORS TO BE A SUCCESSFUL ENGINEER MANAGER

1. ABILITY is the quality of being able to perform, first you need to be confident with your ability of leading your
group.
2. MOTIVATION TO MANAGE if you are motivated to manage then everything will fall into its right places and
everything will go as planned. Good engineer manager also has a sense of responsibility that you will influence
other lead your subordinates to be motivated also to do work more effectively. You must also have:
 Favorable attitude towards those in position such as superiors
 Desire friendly completions with peers
 Desire to assert oneself and take charge
 Desire to exercise power and authority towards others
 Learn to behave in a distinctive way when standing out in the crowd
 Learn how to accept responsibilities.
3. OPPORTUNITY if you really want to be a successful engineer manager, you must be competent for every
opportunity that will open. The opportunity for a successful management has two requirements:
a) Obtaining a suitable managerial job
b) Finding a supportive climate once on the job

CHAPTER 2
THE ENGINEERING MANAGER
 Responsible for the effective management of the engineering and maintenance department.
 Presumed to the technicality competent in his/her specialization, one may now proceed to describe more
thoroughly the remaining portion of his/her job, which is management.
  Responsible for hiring staff, supervising employees, setting budgets and goal for project, reading research and
development projects, and checking the accuracy of the work produced under their supervision.
 Responsible for overall management of the implementation by contract for the assigned projects, coordinates
with different functional groups.
 Manage the implementation of project and ensures that the construction schemes, methodologies and strategies
of the project are based on the approved contract and drawings
 They also approve/endorse the contractor's proposal for time extension, suspension, variations, standby claims,
etc. as evaluated by the project-in-charge.

KINDS OF ENGINEERING MANAGER

1. ENGINEERING PROJECT MANAGER- responsible to ensure that they conform to regulatory, statutory, sponsor and
stakeholder requirements.
2. SENIOR LEAD ANALYST - is primarily responsible for the development, presentation and support of agricultural
commodity supply forecasts.
3. CONSTRUCTION MANAGEMENT ENGINEER - involves the application of technical and scientific knowledge to
infrastructure construction projects.
4. INDUSTRIAL MANAGEMENT ENGINEER- related to understanding, development and implementation of systems
involving human being and other resources.
5. DESIGN TEAM LEADER- responsible for generating and 'leading cutting-edge designs from concept to execution.
6. TECHNICAL MANAGER- should be able to perform all necessary tasks related to company systems including
troubleshooting any technical issues.
7. CONSTRUCTION MANAGER- is a professional service that uses specialized, project management techniques to
oversee the planning, design, and construction of a project, from its beginning to its end.
8. PROJECT MANNAGER- have the responsibility of the planning, procurement and execution of a project, in any
undertaking that has a defined scope, defined start and a defined finish; regardless of industry.
9. CITY ENGINEER- They design roads, bridges and other infrastructure projects and ensure they adhere to budgetary
and environmental requirements.
10. DIRECTOR OF PUBLIC WORKS- supervises the activities of various departments within the public works sector.

DECISION-MAKING is the process of identifying and choosing alternative courses of action in a manner appropriate to the
demands of the situation.
DECISIONS are made at various management levels and at various management functions.
DECISION MAKER must be learn the intricacies of decision making. Good decision, will provide the right environment for
continuous growth and success and decision skills will be very crucial to the success.
DECISION-MAKING AS A MANAGEMENT RESPONSIBILITY
 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.

THE DECISION MAKING PROCESS

1. DIAGNOSE PROBLEM- The manager should seek first for the problem for them to make intelligent decisions.
"Identification of the problem is tantamount to having the problem half-solved."
PROBLEM- occurs when there is a difference between the actual situation and a desired situation.
2. ANALYZE ENVIRONMENT- It is one of the most important factors to be considered. It is because environment
influences the success of the organization. The objective of environmental analysis is the identification of
constraints, which may be spelled out as either internal or external limitations.
Examples of Internal Limitations
 Limited funds available for the purchase of equipment.
 Limited training on the part of employees.
 III-designed facilities.
 Examples of external Limitations
 Patents are controlled by other organizations.
 A very limited market for the company's products and services exists.
 Strict enforcement of local zoning regulations.
Components of the Environment
1) Internal Environment - organizational activities within a firm that surrounds decision making.
2) External Environment - variables that are outside the organization and is not within the control of the top
management.
3. ARTICULATE PROBLEM OR OPPORTUNITY- Before a strategy can be explored, a clear articulation of the problem
has to happen.
4. DEVELOP VIABLE ALTERNATIVES- The best among alternative solutions must be considered by management.
Procedures for Alternative Solutions
1) Prepare a list of alternative solutions
2) Determine the viability of each solutions
3) Revise the list by striking out these which are not viable.
5. EVALUATE ALTERNATIVES- Proper evaluation makes choosing the right solution less difficult. How the alternative
will be evaluated will depend on the nature of the problem, the objectives of the firm, and the nature of
alternatives presented.
6. MAKE A CHOICE- This is the point where he must convinced that all the previous steps were correctly undertaken.
7. IMPLEMENT DECISION- Implementation refers to carrying out the decision so that the objectives sought will be
achieved. To make implementation effective, a plan must be delivered
8. EVALUATE AND ADAPT DECISION MAKING RESULTS- It is important for the manager to use control and feedback
mechanism to ensure results and to provide information for future decisions.
FEEDBACK refers to the process which requires checking at each stage of the process
CONTROL refers to actions made to ensure that activities performed match the desired activities

APPROACHES IN PROBLEM SOLVING

QUALITATIVE EVALUATION- refers to evaluation of alternatives using institutions and subjective judgement.
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
4) Immediate decisions are needed
QUANTITATIVE EVALUATION- refers to the evaluation of the alternatives using any technique in a group classified as
rational and analytical.

QUANTITATIVE MODELS FOR DECISION MAKING

1. INVENTORY MODELS- it is designed to help the engineer manager to make decisions regarding inventory.
a) ECONOMIC ORDER QUANTITY MODEL- minimizes the total holding costs and ordering costs.
b) PRODUCTION ORDER QUANTITY MODEL- Answers how much to produce and when to order.
c) BACK ORDER INVENTORY MODEL- this is an order for a good or service that cannot be filled at the current
time due to a lack of available supply.
d) QUANTITY DISCOUNT MODEL- an incentive offered to a buyer that results in a decreased cost per unit
2. QUEUING THEORY- determine the number of service units that will minimize both customer waiting time and cost
of service.
3. NETWORK MODELS - are large complex tasks are broken into smaller segments.
 The Program Evaluation Review Technique (PERT)- designed to analyze and represent the tasks involved in
completing a given project.
 The Critical Path Method (CPM)- it is an algorithm for scheduling a set of project activities.
 4. FORECASTING– is the process for making predictions of the future based on past and present data and most
commonly by analysis of trends.
5. REGRESSION ANALYSIS- a forecasting method that examines the association between two or more variables may
be simple or multiple depending on the number of independent variables present. It is simple regression if one
independent variable is involved if it is two or more it is called multiple regressions.
6. SIMULATION- a model to represent reality, on which conclusions about real-life problems can be used. It can
evaluate alternatives fed into process by decision maker.
7. LINEAR PROGRAMMING- a quantitative technique used to produce an optimum solution within bounds imposed
by constraints upon the decision. It is very useful as a tool because supply and demand limitations at plants,
market etc. are constraints upon the system.
8. SAMPLING THEORY- samples if populations are statistically determined to be used for a number of processes, like
quality control and marketing research.
9. STATISTICAL DECISION THEORY- a rational way to conceptualize, analyze and solve problems in situations involving
limited, or partial information about the decision environment
 Bavesian analysis is to revise and update the initial assessments of the event probabilities generated by the
alternative solutions,
 Baves criterion selects the decision alternative having the maximum expected payoff, or the minimum
expected loss.

CHAPTER 3
PLAN - provides a methodical way of achieving desired results - it is also serves as a useful guide.

WHAT IS PLANNING?
NICKELS AND OTHERS - "the management functions that involves anticipating future trends and determining the best
strategies and tactics to achieve organizational objectives."
ALDAG AND STEARNS- "the selection and sequential ordering of tasks required to achieve organizational goal."
COLE AND HAMILTON- "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.”

THE PLANNING AND THE MANAGEMENT PROCESS

1. SETTING ORGANIZATIONAL, DIVISIONAL, OR UNIT GOALS - the first task of the engineer manager is to provide a
sense of direction. The setting goals provide an answer to the said concern.
2. DEVELOPING STRATEGIES OR TACTICS TO REACH GOALS - the ways to realize the goals are called strategies and this
will be the concern of top management.
STRATEGY - "a course of action aimed at ensuring that the organization will achieve its objectives.
TACTIC - id a short-term action taken by management to adjust to negative internal or external influences.
3. DETERMINING RESOURCES NEEDED- to satisfy strategic requirement, a general statement of needed resources will
suffice.
4. SETTING STANDARDS - standards for measuring performance may be set at the planning stage.
STANDARD- "a quantitative or qualitative measuring device designed to help monitor the performances of
people, capital goods, or processes.

PLANNING AT DIFFERENT MANAGEMENT LEVELS

Planning activities undertaken at various levels are as follows:
1) STRATEGIC PLANNING (TOP MANAGEMENT LEVEL) - 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.
2) INTERMEDIATE PLANNING (MIDDLE MANAGEMENT LEVEL) - refers to the process of determining the contributions
that subunits can make with allocated resources.
 3) OPERATIONAL PLANNING (LOWER MANAGEMENT LEVEL) - refers to the process of determining how specific tasks
can best be accomplished on time with available resources"

TYPES OF PLANS

FUNCTIONAL AREA PLANS:

1. MARKETING PLAN - a written document or blueprint for an organization's marketing activities.
2. PRODUCTION PLAN - quantity of output that a company must produce in vroad terms and by product family.
3. FINANCIAL PLAN - summarizes the current financial situation of the firm, analyzes financial needs, direction for
financial activities.
4. HUMAN RESOURCES MANAGEMENT PLAN - indicates the human resource needs of a company detailed in terms of
quantity and quality.

PLANS WITH THE TIME HORIZON:

1. SHORT-RANGE PLANS - plans intended to cover a period of less than one year.
2. LONG-RANGE PLANS - plans covering a time span of more than one year.
PLANS ACCORDING TO FREQUENCY OF USE
1. STANDING PLANS - used again and again, focus on managerial situations.
a. POLICIES - broad guidelines about recurring situations or function.
b. PROCEDURES - describe to exact series of actions to be taken in a given situation.
c. RULES - statements that either require or forbid a certain action.
SINGLE-USE PLANS are relatively unique and are unlikely to be repeated.
The said plan may be classified as:
1. BUDGETS - according to Weston and Brigham, "a plan that shows the projected expenditure and the required funds
will come from."
2. PROGRAMS - is a single-use plan to coordinate a large set of activities.
3. PROJECTS - is a single-use plan that has more limited in scope and sometimes prepared to support a program.

TOOLS FOR PLANNING

1. AFFINITY DIAGRAM -is a tool that gathers large amounts of language data (ideas, opinions, issues) and organizes
them into groupings based on their natural relationships.
2. TREE DIAGRAM -is a diagram used in strategic decision making, valuation or probability calculations
3. INTERRELATIONSHIP DIAGRAM -is an analysis tool that allows a team to identify the cause-and-effect relationships
among critical issues.
4. MATRIX DIAGRAM (MD) -is a tool that allows a team to identify the presence and strengths of relationships between
two or more lists of items.
5. PRIORITIZATION MATRIX -is a 2×2 matrix designed to help you discern which tasks/projects are “Critical and Urgent,”
so you can focus on what matters most.
6. PROCESS DECISION PROGRAM CHART (PDPC) -is a technique designed to help prepare contingency plans.
7. ACTIVITY NETWORK DIAGRAM -is a quality management tool used to depict the activities of a project that are either
in parallel or in series.

CHAPTER 4

ENGINEER MANAGER- needs to acquire various skills in management, including those for organizing and technical activities
SECOND WORLD WAR- is when the value if a superior organizational set- up has been proven dramatically
ORGANIZING- is undertaken to facilitate the implementation of plans.
 Steps are undertaken to breakdown the total job into more manageable man-sized jobs.
 These will make it possible to assign particular tasks to particular persons
 These will help facilitate the assignment of authority, responsibility, and accountability for certain functions and
tasks.
ORGANIZING- is a management function which refers to the “structuring of resources and activities to accomplish objectives
in an efficient process is the structure.”
STRUCTURE- is the arrangement or relationship of positions within an organization.

PURPOSE OF STRUCTURE
1. It defines the relationships between tasks and authority for individuals and departments.
2. It defines formal reporting relationships, the number of level in 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.

THE FORMAL ORGANIZATION -"the structure that details lines and responsibilities, authority, and position.
a) ORGANIZATION CHART is a diagram of the organization's official position.
b) ORGANIZATION MANUAL is a written descriptions and authority relationships, functions or major organization units
and jobs procedures.
c) POLICY MANUAL describes company policies.

HIERARCHIES IN AN ORGANIZATION
Hierarchy is a way to structure an organization using different levels of authority and a vertical link, or chain of command,
between superior and subordinate levels of the organization.

TYPES OF ORGANIZATIONAL STRUCTURES

Organizations may be classified into three types.
1.) Functional Organization - this is a form of departmentalization in which everyone in a functional activity, such as
engineering or marketing, is grouped into one unit.
2.) Product or Market Organization - refers to the division of the organization in a company that brings together all
those involved with a certain type of product or a customer.
3.) Matrix Organization - an organizational structure in which each employee reports to both functional or division
manager to a project or group manager.
a) Strong
b) Weak
c) Neutral