1. Chapter 2 Historical Development of Engineering Management

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

3. 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

4. Origins of Engineering Mgmt – Ancient Civilizations
Mesopotamians
~ B.C.
Used canals for irrigation
Had management system and job descriptions
Hammurabi Law ( B.C.)
Egyptians
4000 – 1600 B.C.
Built pyramids (2.3M stone lbs)
100,000 men x 20~30 years
Used managerial principles
History of Ancient Civilization, part 1 of a series

5. 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

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

7. 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

8. 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

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

10. 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

11. 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

12. Management Philosophies
Scientific Management
Administrative Management
Behavioral Management

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

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

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

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

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

18. 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

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

20. 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

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

22. 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

23. 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

24. 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

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

26. 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

27. 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.

28. 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

29. 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?