INTRODUCTION TO ENGINEERING MANAGEMENT Lecturer : Yılmaz Bayar References : 1) Managing Engineering and Technology, Daniel L. Babcock and Lucy C. Morse, Prentice Hall, 2002. 2) Lecture notes of Prof. B. Gültekin Çetiner, Department of Industrial Engineering, Istanbul Tecnical University, 2011.

Plan of the Presentation - Definition of Engineer - Definition of Management Managerial Skills Managerial Roles Functions of Managers Definition of Engineering Management 2 2

What is an Engineer? - Ingenium (Latin), - Skillful, talent, natural capacity or clever invention, - Early applications of clever inventions based on military, - Builders of talent military machines.

What is an Engineer? The first issue (1866) of the English Journal Engineering; The art of directing the great sources of power in nature, for the use and convenience of man. Is it an art or profession?

What is an Engineer? Modern Definition of Engineering By ABET (Accrediting Board for Engineering and Technology); The profession in which a knowledge of the technical, mathematical and natural sciences gained by study, experience and practice is applied with judgement to develop ways economically in order to utilize the materials and forces of the nature for the benefit of mankind.

What is an Engineer? Engineer : A person applying his mathematical and science knowledge properly for mankind. It is a discipline not an art.

What is Management? Directing the actions of a group to achieve a goal in most efficient manner Getting things done through other people Process of achieving organizational goals by working with and through people and organizational resources

What is Management? Top-level management (president, executive vice president) - Middle-level management (chief engineer, division head etc.) First-line management (foreman, supervisor, section chief) 8 8

What is Management? First-line management: - Directly supervise non-managers. Carry out the plans and objectives of higher management using the personnel & other resources assigned to them. 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 workers. 9 9

What is Management? Middle-level management: - Manage through other managers, Make plans of intermediate range to achieve the long-range goals set by top management, Establish departmental policies, evaluate the performance of subordi- nate work units & their managers, Provide; Integrating and coordinating function, Orchestrate the decisions & activities of first-line management. 10 10

What is Management? Top-level management: - Represent the the whole enterprise, - Responsible for defining the character, mission and objectives of the enterprise Establish & review criterias for long-range plans. Evaluate the performance of major departments. 11 11

Managers need three (3) types of skills: Managerial Skills Managers need three (3) types of skills: 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 realize the critical factors that will determine as organization’s success or failure. Ability to see the forest in spite of the trees. 12 12

Managerial Skills Managerial Level: First-line Middle Top % 15 % 40 Technical Skills % 45 Interpersonal Skills % 45 Conceptual Skills % 40 % 15

Managerial Roles (What Managers Do) Interpersonal roles Informational Roles Decisional Roles

Managerial Roles Interpersonal roles: Outward Figurehead role: Outward relationship Leader role: Downward relation Liaison role: Horizontal relation Horizontal Downward

Managerial Roles Informational Roles: Monitor Role: Collects information about internal operations and external events. Disseminator Role: Transforms information internally to everybody in organization (like a telephone switchboard) Spokesman Role: Public relations

Managerial Roles Decisional Roles: Entrepreneurial Role: Initiates changes, assumes risks, transforms ideas into useful products. 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. Staffing: Keeping filled the organization structure Leading: Influencing people to achieve the objective Controlling: Measuring and correcting the activities

Functions of Managers Management can be classified into one of four categories: An organizational or administrative process, 2) A science, discipline or art, 3) The group of people running an organization, 4) An occupational career.

Management: Is it an art or science? Functions of Managers 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) Again somewhere between art and science.

What is Engineering Management? Directing supervision of engineers and/or engineering functions. Definition of Engineering Manager: An engineer possessing both abilities to apply engineering principles and skills in organizing and directing people and projects.

What is Engineering Management? Why Engineering Managers? Competition is global and companies need these people to compete successfully. The advantages of having an engineer as a manager; Has the ability of thinking sistematically, Has technical, mathematical & natural sciences talents, Seizes the research & development as an oppurtinity, not a cost.

What is Engineering Management? Advantages of Understanding Technology in Top Management Understanding the business thoroughly, Understanding technology driving the business today and technology that will change the business in future, Treating Research and Development as an investment not an expense to be minimized,

What is Engineering Management? Advantages of Understanding Technology in Top Management Spending more time on strategic thinking, Dedicating a customer’s problem (true marketing via customer relations), Place a premium on innovation.