GE404 Engineering Management Topic1.A Introduction 7 September 20151

Definition of Engineering management  Engineering Management or Management EngineeringManagement Engineering 7 September  Engineering Management (EM) is a specialized form of management that is required to successfully lead engineering or technical personnel and projects.  Engineering Management is a career that brings together the technological problem-solving savvy of engineering and the organizational, administrative, and planning abilities of management in order to oversee complex enterprises from conception to completion.

Definition of Engineering management  Engineering Management or Management EngineeringManagement Engineering 7 September  Engineering Management programs typically include instruction in accounting, economics, finance, project management, systems engineering, mathematical modeling and optimization, management information systems, quality control & six sigma, operations research, human resources management, ethical and legal perspectives, team relations, safety and health.accountingeconomicsfinanceproject managementsystems engineeringmathematical modelingmanagement information systemsqualitysix sigmaoperations researchhuman resources management safetyhealth  It empowers engineering managers with knowledge, and skills needed to lead technical organizations or processes to success.

Definition of Engineering management  Example areas of engineering are: Product Development, Manufacturing, Construction, Design Engineering, Industrial Engineering, technology, production, or any other field that employs personnel who perform an engineering function.  Engineering managers They manage engineers who are driven by non-commercial thinking, thus require the necessary people skills to coach, guide and motivate technical professionals.  One of most important topic in EM is Project Management 7 September 20154

Definition of Management  Management 7 September  The efficient utilization and direction of resources to achieve objectives.  Coordinated activities to direct and control an organization (ISO 9000/2000).  Management is the process of Planning, Organizing, Directing/Leading, Communicating, Motivating and Controlling the efforts of the organizational members and resources in order to achieve organizational goals.process ISO: International Organization for Standardization

Functions of Management  What the Functions of Management? They include several interrelated functions which are: 1)Planning 2)Organizing 3)Coordinating / Directing 4)Communicating 5)Motivating 6)Controlling 7 September 20156

1)What is planning?  It is the process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.processgoalsstrategies tasksschedulesaccomplish   A process is Sequence of interdependent and linked procedures which, at every stage, consume one or more resources (employee time, energy, machines, money) to convert inputs (data, material, parts, etc.) into outputs. These outputs then serve as inputs for the next stage until a known goal or end result is reached. A process proceduresstageresourcesemployeeenergy machinesmoneyconvertdatamaterialparts outputsgoalendresult Planning can be viewed from following points:  SubjectFinancialTimeQuality Organizational  Subject:- Financial Planning, Time Planning, Quality Planning, Organizational Planning, …….  OrganizationCorporateProject  Organization:- Corporate Planning, Project Planning,…….  TimeLong-RangeShort-RangeWeekly  Time:- Long-Range. Planning, Short-Range Planning, Weekly Planning, …. 7 September Functions of Management

2)What is organizing?  It is The process of determining the responsibilities and scope of authority of each position in the company structure and defining how each company segment interrelates with the others.  It is the arranging several elements into a purposeful sequential or spatial (or both) order or structure.elements sequentialorderstructure  It is the assembling required resources to attain organizational objectives.requiredresources organizationalobjectives 7 September Functions of Management

3)What is coordinating?  The synchronization and integration of activities, responsibilities, and command and control structures to ensure that the resources of an organization are used most efficiently in pursuit of the specified objectives.synchronizationintegrationactivities responsibilitiescontrolstructures ensureresourcesorganizationefficientlyobjectives  Along with organizing, monitoring, and controlling, coordinating is one of the key functions of management.organizingmonitoringcontrollingkeyfunctionsmanagement  September Functions of Management

4)What is communicating?  Engineering Communication: The ability to effectively communicate information about the design and engineering process. To that end, the competition requires teams to submit technical reports, prepare and deliver engineering presentations, and create poster displays.  _FINAL.pdf _FINAL.pdf  Business Communication: communication used to promote a product, service, or organization; relay information within the business; or deal with legal and similar issues. It is also a means of relaying between a supply chain, for example the consumer and manufacturer.  September Functions of Management

5)What is motivating?  Internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role, or subject, and to exert persistent effort in attaining a goalexternalfactorsstimulateenergyjobrolesubjectgoal  Motivation results from the interactions among conscious and unconscious factors such as the (1) intensity of desire or need, (2) incentive or reward value of the goal, and (3) expectations of the individual and of his or her significant others.resultsintensityneed incentiverewardvalueexpectations individualsignificant  September Functions of Management

6)What is controlling?  The basic management function of (1) establishing benchmarks or standards, (2) comparing actual performance against them, and (3) taking corrective action, if requiredmanagementfunctionbenchmarksactualperformanceagainst corrective actionrequired  Control function can be viewed as follow:  Controlling involves making sure that the results achieved are in line with the planned results.  The main feature of control is action to correct performance deviations and to insure that expected results are forthcoming.  Control = Monitor + Compare + Analysis + Action 7 September Functions of Management

Definition of Project management IPMA / ICB )Definition of a project according to IPMA / ICB 2006 project  A project is a time and cost constrained operation to realize a set of defined deliverables up to quality standards and requirements. project  The project should deliver all that is described within its scope. project scope  The project scope defines the boundaries of a project. The scope embraces the totality of all deliverables, which are included in a project.  The goal of a project is to produce the deliverables defined in the business case. IPMA: International Project Management Association ICB: IPMA Competence Baseline  What is a project? 7 September

Definition of Project management  What is a project deliverables? IPMA / ICB 2006 Definition of a deliverables according to IPMA / ICB 2006  The deliverables of a successful project are tangible or intangible assets created by the project for the customer. They are represented by drawings, descriptions, specifications, models, prototypes,..  Deliverables are not only the product sold or service put into use after project closure, but also the operational process, organizational changes and human resource changes needed for a successful organization to operate 7 September

Definition of Project management  What is a project? 2)According to PMI/PMBOK  A project is a temporary and one-time endeavor undertaken to create a unique product or service, which brings about beneficial change or added value. Projects have start and end dates! PMI: Project Management Institute PMBOK: Guide to the Project Management Body of Knowledge PMP: Project Management Professional ISO 9000/2000 3)According to ISO 9000/2000 project  A project is a unique process, consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including the constraints of time, cost and resources.  The outcome of a project may be one or several units of product. A product is the result of a process. A process is a set of interrelated or interacting activities which transforms inputs to outputs. 7 September

Definition of Project management  What is the project characteristics?  Endeavors of any size may be a project o Large and small projects demand different handling  Temporary o Distinguishes projects from operations  Unique o Not the same old thing 7 September

Definition of Project management  Examples of projects 7 September

Definition of Project management  Examples of projects 7 September

Definition of Project management  Examples of projects 7 September

Definition of Project management  Project management 1.It is the discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific project goals and objectives.planningorganizingmanaging resources 2.It is the Coordinated activities to direct and control a project organization to realize a set of defined deliverables up to quality standards and requirements. ICB 2006  Who project manager? According to ICB 2006 He is the professional specialist who plans and controls a project. He is the person who acts in a transparent manner for the sake of the whole project to satisfy the expectations of the customers, the partners delivering goods and services for the project and the other interested parties. 7 September

Definition of Project management The Role of the Project Manager Highly visible Responsible for making sure that:  All necessary activities are finished in order and on time  The project comes in within budget  The project meets quality goals  The people assigned to the project receive motivation, direction, and information Project managers should be:  Good coaches  Good communicators  Able to organize activities from a variety of disciplines 7 September

Definition of Project management Ethical Issues  Bid rigging – revealing confidential information to give some bidders an unfair advantage  “Low balling” contractors – try to “buy” the project by bidding low and hope to renegotiate or cut corners  Bribery – particularly on international projects  Expense account padding  Use of substandard materials  Compromising health and safety standards  Withholding needed information  Failure to admit project failure at close 7 September

GE404 Course Description  Introduction for engineering management.  Planning Engineering projects.  Scheduling using activity-on-node and precedence methods.  Resource leveling and allocation.  Project time-cost trade-off.  Cash flow forecasting.  Updating construction schedules.  Project time and cost control.  Contractual and organizational approaches including definition of organizational responsibilities of project participants. 7 September

GE404 Course Learning Objectives a)Using bar chart technique to formulate a complete plan for an engineering project. b)Apply activity-on-node network, and precedence diagram to schedule the project. c)Level and allocate project resources. d)Shorten project duration. e)Monitor an engineering project for purpose of time and cost control. f)Analyze project cash flow. g)Use computer software for preparing project schedules h)Understand principles of project organization and contractual relationships including definition of professional responsibilities of project participants. Students completing this course successfully will be able to: 7 September

GE404 Course Topics Covered 1)Introduction for engineering management (2 hours). 2)Planning with bar chart (3 hours). 3)Activity-on-node and precedence diagramming (6 hours). And Time-scaled network (3 hours). 4)Resource leveling and allocation (5 hours). 5)Time-cost trade-off (3 hours). 6)Cash flow analysis (3 hours). 7)Time and cost control (4 hours). 8)Contractual and organizational approaches (3 hours). 7 September

GE404 Textbook(s) and/or Other Required Material  Moder, J.; Phillips, C. and Davis, E. (1983). Project Management with CPM, PERT and Precedence Diagramming, 3rd Edition, van Nostrand Reinhold.  Course lectures and solved examples are also found on the following website:  Heizer, jay, and Render, Barry; “Operation Management”; Pearson Education, latest Ed. 7 September

GE404 Grade Distribution Mid-term exam35% Lecture Attendance and Participation 5% Assignments and Quizzes 10% Final Exam50% 7 September