Chapter 2 Historical Development of Engineering Management

Chapter Outline Origins of Engineering Management Impact of Industrial Revolution Development of Scientific Management Development of Administrative Management Development of Behavioral Management Current Contributions

Learning Objectives Describe the origins of engineering management Identify the different basic management philosophies Discuss the future issues that will affect the continued development of engineering management

Origins of Engineering Mgmt – Ancient Civilizations Mesopotamians ~4500 - 2000 B.C. Used canals for irrigation Had management system and job descriptions Hammurabi Law (2023-2081 B.C.) Egyptians 4000 – 1600 B.C. Built pyramids (2.3M stone blocks, @5000 lbs) 100,000 men x 20~30 years Used managerial principles History of Ancient Civilization, part 1 of a series http://www.youtube.com/watch?v=vLlcixnkqo4

Origins of Engineering Mgmt – Ancient Civilizations Chinese Principles of organizing, planning, directing, controlling (~1100 B.C.) Built Great Wall: ~4000 miles (~500 B.C.) Romans 284 B.C. Estate and farm management Emphasis on personnel selection and placement Known for building roads, bridges, and water management

Origins of Engineering Mgmt – Ancient Military Cyrus the Great (Persia) 576-530 B.C. Use of staff Recognized use of order and division of work Alexander the Great (Greek) 336-323 B.C. Distinction between line and staff Used discipline and delegation

Origins of Engineering Mgmt – Ancient Mass Production Arsenal of Venice (Early 1400s) Manufacturing Numbering of inventory parts Personnel policies Standardization of parts Assembly line Accounting in two journals and one ledger, with annual auditing

Industrial Revolution 1750-1800: Important Inventions Spinning Jenny, James Hargreaves, 1764 Water Frame, Richard Arkwright, 1771 Spinning Mule, Samuel Crompton, 1779 Power Loom, Edmund Cartwright, 1785 Chlorine Bleach, Claude Louis Berthollet, 1785 Steam Engine, James Watt, 1769 Screw-cutting Lathe, Henry Maudslay, 1797 Interchangeable Manufacture, Eli Whitney, 1798

Industrial Revolution: Problems of the Factory System Recruiting/Training Workers Explosive Growth in Mill Towns Supervisors, No Background Upper Management, Sons or Relatives

Industrial Revolution: Industrial Development in America Fist advanced textile mill was built in 1790, 269 mills in 1810 Canals (1790~1830): William Weston Railroad (1830~1850): John Stevens Telegraph line (1844~1860): Samuel Morse Steel making (1870~1900): Andrew Carnegie

Industrial Revolution: Development of Eng. Education Apprenticeship, 18th century First Eng. School: 1747 in France  Ecole des Ponts at Chaussees (School of Bridges and Roads) US Military Academy at West Point, 1802 Civil Eng. Program at West Point, 1817 First Eng. School: Norwich (Connecticut) Univ. (1819) Rensselear Polytechnic Institute (1823), Union College (1845), Harvard, Yale, Michigan (1847) Morrill Land Grant Act, 1862

Management Philosophies Scientific Management Administrative Management Behavioral Management

Scientific Management Charles Babbage (1792-1871) Invented 1st mechanical calculator “difference engine” Method of observing manufactures (1832) Henry Towne and ASME: Management Div. (1886) Frederic W. Taylor: (1856-1915) Time and Motion Studies Believed in selecting, training, teaching, and developing workers

Scientific Management Frank B. Gilbreth: (1868-1924) Best way of laying bricks Devised a system for classifying hand motions into 17 basic divisions Therbligs Lillian Moller Gilbreth: (1878-1972) Psychology of Management (Human Factors) First Lady of Management

Scientific Management Replaced old rule of thumb Believed in selecting, training, teach and developing workers Time Study Standards planning

Criticism of Scientific Management Productivity, not quality Separating Planning and execution

Administrative Management Henri Fayol (1841-1925): Developed 14 “general principles of administration” Divided management activities into five divisions (Planning, Organizing, Command, Coordination, Control) Max Weber (1864-1920): Division of labor Hierarchy of authority Employment based on expertise Decisions & rules in writing Separation of management & ownership

Behavioral Management Hawthorne Studies Original intent was find the level of illumination that made the work of female coil winders, relay assemblers, and small parts inspectors more efficient. Conclusion - persons singled out for special attention perform as expected Abilene Paradox Failing to manage agreement effectively

Behavioral Management Maslow: Hierarchical theory of human needs Biological / Physiological Needs Security / Safety Needs Social Needs Ego Needs Self-actualization Fulfillment

Contemporary Management: Issues and Challenges Quality Management Meeting customers’ requirements Commitment by senior management and all employees Continuous improvement Planning quality into products and processes Teams Employee involvement and empowerment Recognition Benchmarking Certification (ISO) Six sigma

Contemporary Management: Issues and Challenges Customer Focus CASA/SME CIM Wheel

Contemporary Management: Issues and Challenges Information Technology Computers and Microprocessors Internet Engineering Functions: Design, Manufacturing Business Practice: Supply Chain, e-Business Project Management Complex systems Dynamic Globalization

Contemporary Management: Successful Executives Chester Barnard (telecommunications executive) Functions of the Executive Alfred P. Sloan (GM) Annual styling changes Pricing structure Walt Disney (Walt Disney) Treating customers as “guests” Thomas Watson Jr. (IBM) Service Customer satisfaction

Contemporary Management: Successful Executives Admiral Zumwalt (Navy) “People will respond well to being treated as grownups” Bill Hewlett & Dave Packard (HP) Management by walking around Sam Walton (Walmart) Driving costs out of the merchandising system Bill Gates (Microsoft) Range of products Jack Welch (GE) innovative management strategies and leadership style

Contemporary Management: Famous Authors Peter Senge The Learning Organization Systems thinking Personal mastery Mental models Building shared vision Team learning

Contemporary Management: Famous Authors Steven Covey The Seven Habits of Highly Effective People Habit 1: Be Proactive: Principles of Personal Vision Habit 2: Begin with the End in Mind: Principles of Personal Leadership Habit 3: Put First Things First: Principles of Personal Management Habit 4: Think Win/Win: Principles of Interpersonal Leadership Habit 5: Seek First to Understand, Then to be Understood: Principles of Empathetic Communication Habit 6: Synergize: Principles of Creative Communication Habit 7: Sharpen the Saw: Principles of Balanced Self-Renewal

Contemporary Management: Famous Authors Tom Peters In Search of Excellence: Lessons from America's Best Run Companies 1) A bias for action, 2) Staying close to the customer, 3) Autonomy and entrepreneurship, 4) Productivity through people, 5) Hands-on, value driven, 6) Stick to the knitting, 7) Simple form, lean staff, and 8) Simultaneous loose-tight properties.

Contemporary Management: Famous Authors Michael Hammer Re-engineering the corporation Scott Adams Dilbert comic strip Michael Porter Strategic Management and Strategy Theory Peter Drucker Management By Objectives Thomas Friedman The World Is Flat: A Brief History of the Twenty-First Century

Discussion Questions Compare the impacts of Industrial Revolution with the “Information Revolution”. Could you identify some other issues and challenges faced in today’s engineering management fields? Could you identify some other famous authors who are influencing management practices of today?