E NGINEERING M ANAGEMENT (3+0) Course Code: HS 303 Syed ShahRukh Haider

Assessment An exam (80%) Sectional (20%)  Mid-Term (15%)  Assignment (5%)

Main Contents Introduction to Engineering Management: 1.Definition of project, 2.Difference between engineering project and business process, 3.Engineering Project Lifecycle, 4.Need of managing engineering projects, 5.Scope Triangle Processes of Engineering Project Management Essential Skills to Manage Engineering Projects: 1.Scope Management, 2.Time, Resource and Cost Management, 3.Quality Management, 4.Risk Management, 5.Integration Management. 6.Engineering Projects Planning Monitoring and Controlling: 1.Work Breakdown Structure, 2.Critical Path Method and PERT Analysis, 3.Engineering Project Constraints, 4.Resource Identification, 5.Allocation and Leveling, 6.Cost Estimates and Budget Constraints, 7.Performance Reporting, 7.Schedule Change Control, 8.Engineering Project Control Decisions.

L ECTURE # 1

Introduction to Engineering Management What is Management? set of activities directed at resources achieving organisational goalsA set of activities (including planning and decision making, organising, leading and control) directed at an organisation’s resources (human, financial, physical and informational) with the aim of achieving organisational goals in an efficient and effective manner. – (Griffin) What is Engineering? knowledge study, experience, and practice judgement utilize materials and forces benefit of mankindThe profession in which a knowledge of the mathematical and natural science gained by study, experience, and practice is applied with judgement to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind (1979, US. Engineering societies).

Engineering Management Engineering Management is concerned with the direct supervision of engineers and the management functions (planning, organising, leading and controlling) in a technological organisation. Prepare engineers to become effective leaders in meeting the challenges in this new millennium

Major Premises Technology and business savvy represents a very powerful combination of great demand in society Market environment is rapidly evolving (changing marketplace complexities, web-based technologies, globalization) Leaders with understanding of technology and management perspectives are needed Engineers with proper management and leadership training have great opportunities to add value

Typical Engineering Activities Design/development of products/processes Project engineering/management Value engineering and analysis Technology development and applied R&D (laboratory, field) Production/manufacturing and construction Customer service

Work of an Engineer As Technical Contributor Understand objectives of tasks specified Develop action plan for implementation Define standards (performance metrics) Select methodology/techniques Implement task with proper efforts Generate results and secure value Report findings (impact, lessons)

Aims Make engineers more effective as technical contributors (understand managerial points of view, effect teams coordination, drive to add value) Ready engineers for managerial positions (managerial functions, success factors, leadership talents, business/management perspectives, expectations, contributions)

Dual Aims Make engineers more effective as technical contributors (understand managerial points of view, effect teams coordination, drive to add value) Ready engineers for managerial positions (success factors, leadership talents, business/management perspectives) Make managers more effective in decisions involving technologies (understand engineering language, limitations and possibilities) Ready managers for contributing effectively in the management of a technology-critical organisation.

Functions of Management There are six primary functions of management: – forecasting – planning – organizing – commanding – coordinating – controlling (feedback->adjustment)

Engineering Management Functions Planning (forecasting, setting objectives, action planning, administering policies, establishing procedure) Organizing (selecting organizational structure, delegating, establishing working relationship) Leading (deciding, communicating, motivating, selecting/developing people) Controlling (setting performance standards, evaluating/documenting/correcting performance)

Skills for Technical Managers Leadership Skills Administrative Skills Technical Skills

Enterprise Objective: Value Addition Engineering-speak: do things right Efficiency - Accomplishing tasks with the least amount of resources (time, money, equipment/facilities, technology - know-how, procedure, process, skills) - do things right do the right things Effectiveness - Accomplishing tasks with efforts commensurate with the value created by these tasks - do the right thingsManagement-speak: Increase Sales Revenue (new and enhanced products/services - faster, better, cheaper - to create greater customer satisfaction) Reduced Cost to Do Business (simplified product design, new technologies, improved productivity, raised efficiency, reduced inventory via supply chains, new production and marketing partnerships and alliances)

Managerial Decision Making What, where, who, how – managers faces numerous and challenging decisions Decision making qualities - knowledge, information, and decision making skills

Beware of Our Weakness: We Are Poor at Learning from the Past How to improve our management “intuition”?  Should fully utilize past information to update both current beliefs and future predictions “We are active learners, but tend to filter information to confirm our opinions.”  Draw unbiased insights about the current state of the world from available data We are frequently poor observational statisticians. [Don’t know Bayes’ rule?]  Conservation bias: reluctant to give up prior beliefs about the world, even in light of new information, revision of beliefs towards right direction is often insufficient, or overly conservative

Learnable Skills Management knowledge and skills (operational, strategic, financial/accounting, interpersonal skills/communications, etc.) Decision making skills/ tools (what-if analysis, risk analysis, problem solving, root cause analysis, decision tree, optimization, etc.)