ENG 401: ENGINEERING

MANAGEMENT
(PART III)

LECTURE PREPARED & DELIVERED BY:

PASCHAL A. UBI R.ENGR(COREN), PhD
[email protected]

May 2023.
 TOPIC DISTRIBUTION
Lecturer Topic
C. O. OMOYI Patterns of leadership. Productivity and motivation. The span of control and the
delegation of authority. Organizational theory and concepts. Industrial safety.
Industrial relations; Resource management; contracts, interest formulae, rate of
return. Methods of economic evaluation. Basic principles of work-study. Principles
of motion economy. Ergonomics in the design of equipment and process.
S. C. NWOZIRI Financial management, accounting methods, financial statements, cost planning
and control, budget and budgetary control. Depreciation accounting and valuation
of assets. Planning decision making; forecasting, scheduling. Production control.
Transport and materials handling. Raw materials and equipment. Facility layout
and location. Gantt chart, CPM and PERT. Optimization.
P. A. UBI Principles of organization; elements of organization; management by objectives.
Personnel management, selection, recruitment and training, job evaluation and
merit rating. Industrial psychology.
Linear programming as an aid to decision-making: Application and model
formulation, Graphical method, Simplex method.
2
Engineering and Management

Who is an Engineer? Who is a Manager?

What is Engineering? What is Management?

The art of directing the great sources of power in nature, for the use and
convenience of man.

Engineers provide a public service not only in the goods and service
they create for the betterment of society, but also by placing the safety of
the public high on their design criteria.

Is it an art or profession?
Engineering and Management

Who is an Engineer? Who is a Manager?

What is Engineering? What is Management?
Engineer: A person who applies his/her mathematical and science
knowledge properly for the benefit of man.

Engineering: The profession in which knowledge of mathematics, the

sciences, etc., gained through study, experience, and practise
is applied with discretion to devise economically viable means
of utilising the materials and forces of nature for the benefit of
mankind.
It is a discipline not an art.
Engineering and Management

Who is an Engineer? Who is a Manager?

What is Engineering? What is Management?
✓ an organizational or administrative process
✓ a science, discipline or art
✓ the group of people running an organization
✓ an occupational career
✓ Directing the actions of a group to achieve a goal in most efficient
manner.
✓ Getting things done through people
✓ Process of achieving organizational goals by working with and through
people and organizational resources
Management Levels

Top-level management
(president, executive vice president)

Middle managers
(chief engineer, division head etc.)

First-line managers
(foreman, supervisor, section chief)
Management Levels
Level Type of Job
· Directly supervise non-managers.
· Carry out the plans and objectives of higher management using
the personnel and other resources assigned to them.
First-line Managers · Short-range operating plans governing what will be done
tomorrow or next week, assign tasks to their workers, supervise
the work that is done, and evaluate the performance of individual
workers.
· Manage through other managers.
· Make plans of intermediate range to achieve the long-range goals
set by top management, establish departmental policies, and
evaluate the performance of subordinate work units and their
Middle Management managers.
· Provide and integrating and coordinating function so that the
short-range decisions and activities of first-line supervisory
groups can be orchestrated toward achievement of the long-range
goals of the enterprise.
· Responsible for defining the character, mission, and objectives of
the enterprise.
· Establish criteria for and review long-range plans.
Top Management
· Evaluate the performance of major departments, and they evaluate
leading management personnel to gauge their readiness for
promotion to key executive positions.
Skills required versus management

Managerial Level
Managers need three types of skills:
Lowest Middle Top
Technical: Specific subject related skills such as
engineering, accounting, etc…

Interpersonal: Skills related to dealing with others and

leading, motivating, or controlling them

Conceptual: Ability to discern the critical factors that

will determine an organization’s success
or failure. Ability to see the forest in
spite of the trees.
Managerial Roles (What Managers Do)
• Interpersonal roles
Outward
• Informational Roles
Figurehead role: Outward relationship
Leader role: Downward relation
• Decisional Roles
Liaison role: Horizontal relation

Downward
Managerial Roles (What Managers Do)
• Interpersonal roles

• Informational Roles Monitor Role: Collects information about

internal operations and external events.

• Decisional Roles Disseminator Role: Transforms information

internally to everybody in organization (like a
telephone switchboard)

Spokesman Role: Public relations

Managerial Roles (What Managers Do)
• Interpersonal roles
Entrepreneurial Role: Initiates changes,
• Informational Roles
assumes risks, transforms ideas into useful
products.
• Decisional Roles
Disturbance Handler Role: Deals with
unforeseen problems and crisis.
Resource Allocator Role: Distributing
resources
Negotiator Role: Bargains with suppliers,
customers etc. in favor of enterprise
Functions of Managers

•Planning: Selecting missions and objectives. Requires decision making.

•Organizing: Establishing the structure for the objective.

•Directing: Keeping filled the organization structure (staffing); Influencing

people to achieve the objective (leading).

•Controlling: Measuring and correcting the activities.

Proper Definition of Engineering Manager:

Engineer possessing both abilities to apply engineering principles and
skills in organizing and directing people and projects.
Management: Is it an art or science?

Management has a body of specialized knowledge. This

knowledge need not to be obtained in formal disciplined
programs.

Somewhere between art and science.

Engineering Management (Discipline + art)

Somewhere between art and science.
 Engineering Management Functions
Organizing
✓ Planning (forecasting, setting objectives,

Planning action planning, administering policies,

establishing procedures)
Directing ✓ Organizing (organizing workplace, selecting

Controlling structure, delegating, establishing working

relationship)

✓ Directing (deciding, communicating, motivating, selecting/developing people)

✓ Controlling (setting performance standards, evaluating/documenting/correcting
performance)
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 Organizing
• Arrange and relate the work, so that it can be done efficiently by
people; specifically:
✓ Ensure that important work is done,
✓ Provide continuity
✓ Form basis for salary administration
✓ Aid delegation
✓ Promote growth and diversification
✓ Encourage teamwork, and
✓ Stimulate creativity
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Organizing (overview of terms)
• Organization Type - Line versus Staff
• Authority - Power to command, act or make decisions (Legal,
position-based)
• Responsibility - Duty to perform work efficiently and in professional
manner
• Accountability - Upwards directed obligation for securing the
desired results
• Span of control - Number of people supervised by a manager (e.g.,
7 to 20)
• Specialization - Increased degree of skills concentration in narrow
technical domains 16
Line Versus Staff
Business/Product
Management
Service

Engineering Production Marketing Distribution Customers

Safety &
R&D Legal Accounting
Environment

Procurement Public Relations Human Resources

Line groups have final decision-making authority regarding technical organizational

purposes. Staff groups are engaged in tasks that provide support for line groups. They consist
17
of advisory (legal), service (human resources), or control (accounting) groups.
The Function of Organizing

Organizing Own Workplace

• Set priority of daily work (attend meetings, make phone calls, write emails, block
out time to do creative work, discourage disruptions, keep conversations short,
maintain “to-do” lists, prioritize tasks, etc.)
• Create a file system for efficient retrieval
• Develop one’s own system for names and contact information 18
The Function of Organizing

Organizing Own Workplace

• Set priority of daily work (attend meetings, make phone calls, write emails, block
out time to do creative work, discourage disruptions, keep conversations short,
maintain “to-do” lists, prioritize tasks, etc.)
• Create a file system for efficient retrieval
• Develop one’s own system for names and contact information 19
The Function of Organizing contd.

Develop Organizational Structures

•Identify and group work so that it can be done efficiently by people
•Choices: (1) functional, (2) discipline, (3) product/regional, (4) matrix, (5) team,
(6) network

Let’s discuss each of this choices in a jiffy. 20

Functional Organization When to Use
• Organizations with high relative
Technical Director stability of work flow and limited
product diversity - certain
manufacturing operations,
process industries
Mechanical Design Electrical Design Quality Control
• Startup companies
• Organizations with narrow product
ranges, simple marketing pattern
System Engineering Production Engineering
and few production sites

Pros and Cons

• Permits hierarchy of skills • Encourages excessive centralization
• Facilitates specialization • Delays decision making
• Simplifies coordination • Compounds communication line loss
• Permits use of current technologies • Restricts development of managerial skills
and equipment • Limits personal growth
Discipline-Based Organization
Engineering Dean

Mechanical Engineering Electrical Engineering Industrial Engineering

Chemical Engineering Civil Engineering

• Favored by universities, governmental laboratories and other R&D

organizations
• Promote innovative pursuits in individual disciplines, allowing
employees to drill down to deeper knowledge levels without requiring
much coordination with others. 22
Product/Regional Organization
Technical Director (Pros and Cons)
• Focuses on end products or
geographical regions
Governmental Products University Products Custom Products • Facilitates coordination
• Encourages management
development
Consumer Products Industrial Products • Provides for decentralization
• Promotes growth

President
• High costs due to layers,
autonomy or duplicated
facilities
• Requires management talents
North America Europe Asia • Technical obsolescence of
specialists
• Changes take time to effect
Latin America Africa 23
Matrix Organization (Pros and Cons)
Functional Control • Project manager focus on schedule and
cost, functional managers on
quality/expertise
• Work load balance
Project A • Excellent for individuals (to achieve
exposure and interactions)
Project-based • Dual reporting
Control Project B
• Severe conflicts among managers
• Delicate balance of power (people versus
Project C money/time)
• Communications problems
(Bases for Conflicts)
Engineering Production Logistics Design • Project Managers: Money under control,
mandate to authorize work with top management support; Rights to buy services elsewhere
• Functional Manager: Manpower, skills knowledge, facilities; Own funds to support people
Team Organization
Functional Control

Team Leader

• Team members “on loan” from functional

Member A organizations to eliminate organizational
conflicts
Member B • Team Leader in full control
• Short term high-priority tasks/projects
Member C • Examples: Product team, special task force
• Purposes: (1) create recommendation, (2)
Member D
make or do things, and (3) run things

Engineering Production Logistics Design

25
Network Organization
• Global business alliances/partnerships to
manufacture, market, deliver and service
products (supply chains)

• Change alliance members from time to time

• Diversified alliance members (e.g., company

allegiance, culture, value system, business
practices, geography, attitude, motivation,
information sharing and collaboration, etc.)
Personnel Management
Personnel management is an administrative function within an
organization that oversees the hiring, organization and support of
employee positions. A branch of human resources, personnel
management focuses on recruiting the right individuals to fit a
position and supporting those already working for the company.

Similarly, The specialty of Industrial Organizational Psychology

addresses issues of recruitment, selection and placement, training
and development, performance measurement, workplace motivation
and reward systems, quality of work life, structure of work and human
factors, organizational development and consumer behaviour.
Linear Programming: An Overview
• Many management decisions involve trying to make the most effective use of an
organization’s resources.
• Resources typically include machinery, labor, money, time, warehouse space, or raw
materials.
• Resources may be used to produce products (such as machinery, furniture, food, or
clothing) or services (such as schedules for shipping and production, advertising
policies, or investment decisions).
• Linear programming (LP) is a widely used mathematical technique designed to help
managers in planning and decision making relative to resource allocation.
• Despite the name, linear programming, and the more general category of techniques
called “mathematical programming”, have very little to do with computer programming.
• In the world of Operations Research, programming refers to modeling and solving a
problem mathematically.
• Computer programming has, however, played an important role in the advancement
and use of LP to solve real-life LP problems.
Linear Programming Model
Most of the deterministic OR models can be formulated as mathematical programs.

"Program," in this context, has to do with a “plan,” not a computer program.

General form of Linear programming model

Maximize / Minimize z = f(x1, x2 ,…, xn)

Subject to gi(x1, x2 , …, xn)

{}


=
bi i =1,…,m

xj ≥ 0, j = 1,…,n
Model Components

• xj are called decision variables. These are things

that you control and you want to determine its

{}
values

• gi(x1, x2 ,…, xn)  bi are called structural
=
(or functional or technological) constraints

• xj ≥ 0 are nonnegativity constraints

• f(x1, x2 ,…, xn) is the objective function

30
◼ Objectives of business decisions frequently involve maximizing
profit or minimizing costs.

◼ Linear programming uses linear algebraic relationships to

represent a firm’s decisions, given a business objective, and
resource constraints.

◼ Steps in application:
1. Identify problem as solvable by linear programming.
2. Formulate a mathematical model of the unstructured problem.
3. Solve the model.
4. Implementation
Linear Programming: Model Formulation & Calculations
◼ Linear programming as an aid to decision-making: Application and
model formulation will be discussed, illustrated and practiced during
our physical class.

◼ The methods that will be explored in solving the LP problems

include:

▪ Graphical and

▪ Simplex

For questions/comments on this lecture reach me via:

[email protected]