1. SEEM 3530 Engineering and Technology Management Introduction

2. IntroductionSEEM 35302 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). 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)

3. IntroductionSEEM 35303 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

4. IntroductionSEEM 35304 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

5. IntroductionSEEM 35305 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

6. IntroductionSEEM 35306 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)

7. IntroductionSEEM 35307 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)

8. IntroductionSEEM 35308 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.

9. IntroductionSEEM 35309 Henri Fayol (1841-1925) Mining Engineer six primary functions of management: –forecasting –planning –organizing –commanding –coordinating –controlling (feedback->adjustment) } leading

10. IntroductionSEEM 353010 Engineering Management Functions

11. IntroductionSEEM 353011 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)

12. IntroductionSEEM 353012 Skills for Technical Managers Leadership Skills Administrative Skills Technical Skills

13. IntroductionSEEM 353013 Enterprise Objective: Value Addition Engineering-speak: do things rightEfficiency - Accomplishing tasks with the least amount of resources (time, money, equipment/facilities, technology - know-how, procedure, process, skills) - do things right do the right thingsEffectiveness - 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)

14. IntroductionSEEM 353014 Managerial Decision Making What, where, who, how – managers faces numerous and challenging decisions Decision making qualities - knowledge, information, and decision making skills

15. IntroductionSEEM 353015 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 Beware of Our Weakness: We Are Poor at Learning from the Past

16. IntroductionSEEM 353016 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.)

17. IntroductionSEEM 353017 Frederick Winslow Taylor (1856-1915) Principles of Scientific Management (1911) –Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. –Scientifically select, train, and develop each worker rather than passively leaving them to train themselves. –Cooperate with the workers to ensure that the scientifically developed methods are being followed. –Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.

18. IntroductionSEEM 353018 SEEM 3530 Knowledge and skills in decision-making tools Appreciation of management issues and complexities in implementing decisions

19. IntroductionSEEM 353019 Planning –Project Scheduling –Project Budgeting and Selection Organising –Strategic decision-making –Game theory Leading –Incentives and Productivity (Principal-agent theory) Controlling –Project Management –Performance evaluation

20. IntroductionSEEM 353020 Project Management BP Oil Spill Under-fire BP boss Tony Hayward takes time out to enjoy Cowes Week

21. IntroductionSEEM 353021 Gilbert and Mosteller’s Marriage Problem: Suppose you decide to marry, and to select your life partner you will interview at most 100 candidate spouses. The interviews are arranged in random order, and you have no information about candidates you haven’t yet spoken to. After each interview you must either marry that person or forever lose the chance to do so. If you have not married after interviewing candidate 99, you must marry candidate 100 !! Your objective, of course, is to marry the absolute best candidate of the lot. But how? A Decision Making Example

22. IntroductionSEEM 353022 Beware of Our Weakness: We Are Myopic “If we isolate a single critical fault in human abilities to act as efficient decision makers, it is that we do not think ahead.” We are often unable to look ahead more than one period or step!

23. IntroductionSEEM 353023 Heuristic  A technique to solve a problem with a “good” but not necessarily “optimal” solution  Based on experiences, hunches/instincts, and judgment Analytical  Formulate the decision model for the problem  Use of computer and other tools to conduct an extensive and thorough analysis to produce an “optimal” solution Heuristic vs. Analysis

24. IntroductionSEEM 353024  Optimal answers are often obvious Draw on life experience to come up with an answer  Task environments are forgiving of mistakes A wide range of behaviors/solutions are optimal or near- optimal  One can learn by trial and error Reinforcement learning: be more likely to repeat actions that generate good results and less likely to repeat acts that produce bad ones When Do Heuristics Work Well?

25. IntroductionSEEM 353025  Ambiguity of Feedback The trial and error method does not work: the decision is not repeated or feedback is ambiguous  Complexity of Decision The problem is not intuitive: beyond our cognitive capabilities  High Penalty for Mistakes A small mistake could lead to serious consequences When Do Heuristics Fail Us?

26. IntroductionSEEM 353026 Strategic Decision Making Marriage problem: Interview the first 37 (100/e) candidates, Then continue interviewing and marry the first candidate that is better than the initial 37. This maximises the chance of marrying the absolute best candidate. In this course, we will investigate models and frameworks for strategic decision making under uncertainty and risk

27. IntroductionSEEM 353027 Leading/Motivation Tenth Worker Commits Suicide At Foxconn Plant in Shenzhen 25 May, 2010 Long hours, Low pay, high pressure Chinese media reported that the families of those who died had received compensation of up to 100,000 yuan (14,500 US), equivalent to about 10 years' wages.

28. IntroductionSEEM 353028 Challenges In the New Millennium Marketplace changes rapidly (Web-based technologies, globalization, customer demand, business networks) affecting how progressive companies will be organized Engineering managers to lead by supervising complex teams, innovating with vision for the future, designing global products, and organizing supply chains, apply global resources to derive economies of scale and scope.

29. IntroductionSEEM 353029 Challenges In the New Millennium

30. IntroductionSEEM 353030 Challenges - Inside Implement projects/programs; manage people, technologies, and resources to add value; develop new product features to enhance company competitiveness; define, control and reduce costs to improve profitability; initiate technology projects to sustain company position

31. IntroductionSEEM 353031 Challenges - Outside Keep abreast of emerging technologies and apply them to strengthen company’s core competencies; apply web-based tools to enhance operations and foster customer relations; identify best practices to improve engineering operations and surpass them; create supply chain networks to derive speed, quality and cost benefits

32. IntroductionSEEM 353032 Challenges - Present Do things right to keep company operating smoothly; use Balanced Scorecard to monitor non-financial and financial performance; control costs and eliminate wastes to attain profitability in the short-run

33. IntroductionSEEM 353033 Challenges - Future Seek e-transformation opportunities to create company profitability in the long-run; introduce new generation products timely; create vision for the future related to technologies; Define what should be done for technology-based success in the future

34. IntroductionSEEM 353034 Challenges - Local Utilize resources to best achieve company’s objectives; take ethical and lawful actions while taking into account local conditions; maintain and nurture local professional networks; share lessons gained with people at other company sites

35. IntroductionSEEM 353035 Challenges - Global Apply location-based resources to realize global economies of scale and scope for achieving cost and technology advantages; develop global professional networks; acquire a global mindset; exercise leadership roles in international settings

36. IntroductionSEEM 353036 Tips for Engineering Managers Demonstrate Technical Competence & Innovative capabilities Brush Up Communications skills (ask, listen, write and talk) Show unfailing reliability to induce trust and confidence Be Proactive in seeking challenging tasks Exhibit readiness for assuming larger responsibilities (take courses, practice skills, gain experience)