Engineering Management Lec 4-5
types of quantitative techniques
1. Inventory models 2. Queuing Theory 3. Network Models 4. Forecasting 5. Regression Analysis 6. Simulation 7. Linear Programming 8. Sampling Theory
² Paper and gunpowder
100-1600AD
² Spinning and weaving machinery
1601-1799AD
² Steam engine
1601-1799AD
² Pyramid of Egypt
3000-600BC
² Stone bladed axe
6000-3000BC
² Roadbuilding by Romans
600BC-400AD
Strategies
A course of action aimed at ensuring that the organization will achieve its objective.
Queuing Theory
A model is constructed so that queue lengths and waiting times can be predicted.
Standards
A quantitative or qualitative measuring device designed to help monitor the performances of people, processes or capital goods
Mission statement
A statement of the firm's overall purpose.
EVALUATE ALTERNATIVES
After determining the viability of the alternatives and a revised list has been made. This is important because the next step involves making a choice.
Identifying Alternatives
All of these courses should be identified
Rational decision-making step 2
Analyze environment
Rational decision-making step 3
Articulate problem or opportunity
REQUIREMENTS FOR THE ENGINEER MANAGER'S JOB
Bachelor's degree in Engineering from a reputable school few years of experience in a pure engineering job master's degree in engineering or business management Training in supervision Special training in engineering management
Tactics
Concern of middle and lower management Is a short - term action taken by management
STRATEGIC PLAN
Corporate scope and mission statement
Strategies
DONE BY Senior Management, Community leaders
HUMAN RESOURCES PLAN
Determine recruiting strategy.
FINANCIAL PLAN
Determine the amount of capital that will be needed to support the plan
procedure in developing alternatives 2
Determine the viability of each solutions
Rational decision-making step 4
Develop viable alternatives
Rational decision-making step 1
Diagnose problem
² Management
Engineers are assigned to manage people in performing specific tasks.
² Teaching
Engineers are employed in schools to teach engineering.
² Research
Engineers are engaged in process of learning about nature and codifying this knowledge in usable theories
² Sales
Engineers assists company's customers to meet their needs
² Design and Development
Engineers turn concept into physical item
Rational decision-making step 5
Evaluate alternatives
Rational decision-making step 8
Evaluate and adapt decision results
Use of aids to planning
Gather as much information as possible
Determining sources needed
If strategies or tactics have been devised, the engineer manager will determine the human and nonhuman resource requirements.
DIAGNOSE PROBLEM
If the manager fails in this aspect, it is almost impossible to succeed in the subsequent steps.
Rational decision-making step 7
Implement decision
SWOT Analysis
It is a brief list of the critical success factors in the market, and rates strengths and weaknesses against the competition.
REVIEW YOUR VISION, MISSION, AND OBJECTIVES
It is helpful to review your mission, vision, and objectives to ensure that your strategies are all aligned with the goals expressed in your previous work.
EVALUATE AND ADAPT DECISION RESULTS
It is, therefore, important for the manager to use control and feedback mechanisms to ensure results and to provide information for future decisions.
Establish Dependencies
Listing the immediate predecessors of each activity will help you identify the correct order.
How One May Become a Successful Engineer Manager
MANAGERIAL ABILITY, MOTIVATION TO MANAGE, OPPORTUNITY
Rational decision-making step 6
Make a choice
Recognize the planning barriers
Manager's inability to plan Improper planning process Lack of commitment to the planning process Improper information Focusing on the present at the expense of the future Too much reliance on the planning department Concentrating only on the controllable variables
MOTIVATION TO MANAGE
Many people have the desire to work and finish specific tasks assigned by the superiors, but not many are motivated to manage other people so that they may contribute to the realization of the organization's objectives.
Selecting the Alternative
Now the best and most feasible plan will be chosen to be implemented
OPPORTUNITY
Obtaining a suitable managerial job Finding a supportive climate once on the job
Corporate Strategies
Once a firm has defined its purpose, scope, and objectives, it must develop a strategy for achieving its goals.
Draw the Network Diagram
Once you have identified the activities and their dependencies, you can draw the critical path analysis chart (CPA)
Cole and Hamilton
Planning is deciding what will be done, who will do it, where, when and how it will be done, and the standards to which it will be done
Aldag and Stearns
Planning is the selection and sequential ordering of tasks required to achieve an organizational goal.
Nickels
Planning refers to the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives
Examining Alternate Course of Action
Plans are evaluated in the light of the organizational objectives.
procedure in developing alternatives 1
Prepare a list of alternative solutions.
² Testing
Products are tested for workability
Setting organizational, divisional, or unit goals
Provide a sense of direction to his firm, to his division, or to his unit
David H. Holt
Rational decision-making is a process involving steps
MAKING PLANNING EFFECTIVE
Recognize the planning barriers Use of aids to planning
² Government
Regulating, Monitoring and Controlling of various institutions
² Manufacturing
Responsible for mass production
² Construction
Responsible for quality construction process
procedure in developing alternatives 3
Revise the list by striking out those which are not viable
Characteristics of Goals
SPECIFIC MEASURABLE AGREED REALISTIC TIME-BASED
THE PLANNING PROCESS by Medina
Setting organizational, divisional, or unit goals Developing strategies or tactics to reach those goals Determining sources needed Setting standards
MARKETING PLAN
Situational Analysis and Target Market
Budget Schedule
The budget is the basis for materials buying, production scheduling, personnel planning and marketing operations.
Marketing Tactics
The manager should also outline specific strategies for such marketing mix elements in each target market: new products, field sales, advertising, sales promotion, prices and distribution.
Objectives and Strategy
The objectives are goals that the company would like to attain during the plan's term.
PRODUCTION PLAN
The plan explains who is responsible for each particular function, when specific tasks are to be accomplished, targets for sales and profits, and the like.
operational planning
The process of determining how specific tasks can best be accomplished on time with available resources.
intermediate planning
The process of determining the contributions that subunits can make with allocated resources.
Strategic Planning
The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals. The whole company is considered, specifically its objectives and current resources.
Forecasting
There are instances when engineer managers make decisions that will have implications in the future
Network Models
These are models where large complex tasks are broken into smaller segments that can be managed independently
DEVELOP VIABLE ALTERNATIVES
This is made possible by using a procedure
IMPLEMENT DECISION
This is necessary, or decisionmaking will be an exercise in futility.
MAKE A CHOICE
This is the point where he must be convinced that all the previous steps were correctly undertaken.
Statement of Corporate Objectives
This statement sets forth specific goals or targets to help operating managers focus on the firm's primary objectives. Most organizations have both quantitative and qualitative objectives.
Aldag and Stearns
Those who will be involved in implementation must understand and accept the solution.
ORGANIZE A BRAINSTORMING MEETING
To help meet these goals, you might post some "ground rules"
NATURE OF PLANNING
To minimize mistakes in decision-making, planning is undertaken
David Consunji
UP civil engineering graduate fifth richest billionaire in the Philippines construction with DMCI
Estimate Activity Completion Time
Using past experience or the knowledge of an experienced team member
Specify Each Activity
Using the work breakdown structure, you need to identify each activity (or task) involved in the project
simple regression
When one independent variable is involved
² Consulting
Works as consultant of any organization that needs his services
Identify the critical path
You can eyeball your network diagram and simply identify the longest path throughout the network
REVIEW (IDENTIFY) THE TARGETS
Your targets of change include all of the people who experience (or are at risk for) this issue or problem addressed by your initiative.
Regression Analysis
a forecasting method that examines the associations between two or more variables
The Program Evaluation Review Technique (PERT)
a technique which enables engineer manager to schedule, monitor, and control large and complex projects by employing three time estimates for each activity
Control
actions made to ensure that activities performed match the desired activities or goals that have been set
Simulation
allows you to evaluate, compare and optimize alternative designs, plans and policies
QUALITATIVE EVALUATION
based primarily on the managers' judgment and experience; it includes managers' conceptual and interpersonal ability to understand that behavioral techniques help to solve problems
work breakdown structure
breaks down projects into manageable sections. You can choose how to display your work breakdown structure
MANAGERIAL ABILITY
capacity of an engineer manager to achieve organizational objectives effectively and efficiently
Implementation
carrying out the decision so that the objectives sought will be achieved
Geronimo Z. Velasco
chairman of Republic Glass Holdings Corp energy minister from 1978 to 1986, implementing President Marcos's then strategic goal of reducing Philippine dependence on imported oil
Inventory models
consists of several types all designed to help the engineer manager make decisions regarding inventory
Planning
defined as selecting the best course of action so that the desired result may be achieved. The desired result takes first priority and the course of action chosen is the means to realize the goal.
Burns & Groove
defined quantitative research as "a formal, objective, systematic process in which numerical data are used to obtain information about the world
Corporate scope
defines its line or lines of business and its geographic area of operations.
Economic Production order Quantity model
determines the quantity a company or retailer should order to minimize the total inventory costs by balancing the inventory holding cost and average fixed ordering cost
Economic order quantity model
determining the optimal order size that minimizes the sum of carrying costs and ordering costs
John B. Miner
developed a psychometric test for measuring what he calls motivation to manage
Linear programming
developed as a mathematical pattern during World War II
Souder
each alternative must be analyzed and evaluated in terms of its value, cost, and risk characteristics
Developing strategies or tactics to reach those goals
goals, strategies and tactics
EXECUTIVE SUMMARY
helps top management to find the plan's central points quickly and presents an overall view of the marketing project and potential
objective of environmental analysis
identification of constraints; either internal or external limitations
Middle management level
intermediate planning
Components of the Environment
internal and external
QUANTITATIVE EVALUATION
justified by the mass character of analyzed occurrences, the need for repetitiveness of scientific experiments or extracting an appropriately numerous research sample in order to assure representativeness
Stevenson
managers tend to use the qualitative approach value when the problem is fairly simple; the problem is familiar; the cost involved is not great; immediate decisions are needed.
Marketing strategy
marketing logic by which the business unit hopes to achieve its marketing objectives
Geronimo Z. Velasco
mechanical engineer 1977 Management Man of the Year Award first president of Philippine National Oil Company (PNOC)
Ramon S. Ang
mechanical engineering graduate of Far Eastern University the dynamic boss who is transforming San Miguel Corporation
Henry Lim Bon Liong
mechanical engineering graduate of UP leader in Philippine paper products with Sterling Paper Group
² Car and household appliance
modern era
Management
must strive to choose a decision option as correctly as possible
Lower management level
operational planning
internal
organizational activities within a firm that surrounds decision-making
Webber
particular effort should be made to identify all significant consequences of each choice
Choice-making
process of selecting among alternatives representing potential solutions to a problem
Feedback
process which requires checking at each stage of the process to assure that the alternatives generated, the criteria used in evaluation, and the solution selected for implementation are in keeping with the goals and objectives originally specified
APPROACHES IN SOLVING PROBLEMS
qualitative evaluation and quantitative eveluation
Linear Programming
quantitative technique that is used to produce an optimum solution within the bounds imposed by constraints upon the decision
Sampling Theory
quantitative technique where samples of populations are statistically determined to be used for number of processes, such as quality control and, marketing research
Barkin
stated that "the term qualitative evokes a narrative or analytical richness, a method that brings out more detail and distinction from a case than can be found by reducing it to quantitative measures"
Top Management level
strategic planning
Lucio C. Tan
studied chemical engineering at Far Eastern University as a working student Lucio Tan's LT Group has interests in tobacco, spirits, banking and property development
Ferrell and Hirt
suggested that further analysis is necessary if it was not achieved
The Critical Path Method (CPM)
this is a network technique using only one time factor per activity that enables engineer managers to schedule, monitor, and control large and complex projects
Stevenson
types of quantitative techniques
Back order inventory model
used for planned shortages
Quantity discount model
used to minimize the total cost when quantity discounts are offered by suppliers
external
variables that are outside the organization and not typically within the short-run control of top management'
Problem
when there is a difference between an actual situation and a desired situations for instance
multiple regressions
when two or more independent variables are involved
ANALYZE THE ENVIRONMENT
where the organization is situated plays a very significant role in the success or failure of such an organization
Delaney
"should be removed from their position as soon as possible."'
Forecasting
"the collection of past and current information to make predictions about the future."
Decision-making
"the process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation."