engineering management ie 256 dr.b.g.cetiner [email protected]

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ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner [email protected]

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Page 1: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

ENGINEERING MANAGEMENTIE 256

[email protected]

Page 2: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Course Outline

Understanding Principles of Engineering Management Applications of these Principles in Engineering Organizations

Learning The importance of management to engineers, Various forms and functions of organizations Operation and Quality Management Planning Project Management

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Page 3: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Textbook Managing Engineering and Technology, 3rd Edition Daniel L.Babcock and Lucy C.Morse

Publisher: Prentice Hall 2002 ISBN 0-13-061978-7

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Page 4: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Evaluation 1. Assignments 15% 2. Quizzes 20% 3. Mid Term 25% 4. Final Exam 40%

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Page 5: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Weekly Course Topics

1 Engineering Management Engineering

Management

Engineering Management

Management Philosophies

Scientific Management

Behavioral Management

1,2 1-2

2 Planning and Forecasting Planning and Planning Concepts

Forecasting

3 3-4

3 Decision Making Nature of Decision Making

Tools for Decision Making

4 5-6

Topic Chapter Week

Page 6: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Weekly Course Topics

4 Organizations Nature of Organizing

Organizations Theory

Staffing Issues

Functions of Organizations

Authority, Power, and Delegation

Motivation, and Leadership

5-7 7-8

5 Finance Accounting

Financial Ratios

9-10 9-10

6 Production Planning Facility Layout

Production Methods

Production Planning and Control

11 10-11

Topic Chapter Week

Page 7: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Weekly Course Topics

7 Managing Projects Project Planning and Acquisition

Project Organization and Control

14-15 12-14

Topic Chapter Week

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Page 8: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

What is an Engineer?

Ingenium: Talent, natural capacity, or clever invention.

Early applications of Clever Inventions based on Military

Builders of Ingenious military machines??

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Page 9: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

The first issue (1866) of the EnglishJournal Engineering

The art of directing the great sources of powerin nature, for the use and convenience of man.

Is it an art or profession?

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Page 10: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Modern Definition of Engineering By ABET (Accrediting Board for Engineering and Technology)

The profession in which a knowledge of the mathematical and naturalsciences gained by study, experience, and practice is applied with judgement to develop ways to utilize, economically, the materials and forces of the nature for the benefit of mankind.

Engineer: A person applying his mathematical and science knowledge properly for mankind

It is a discipline not an art. Dr.B.G.Cetiner

Page 11: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

What is a system?

Interrelated components which come together for some purposes.

Components

Interrelations

Boundary

Environment

Purposeinputs

Outputs

interface

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Page 12: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

What is Management?

• Directing the actions of a group to achieve a goal in most efficient manner

• Getting things done through people

• Process of achieving organizational goals by working with and through people and organizational resources

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Page 13: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Top-level management(president, executive vice president)

Middle managers(chief engineer, division head etc.)

First-line managers (foreman, supervisor, section chief)

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Page 14: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and ManagementLevel Type of Job

First-line Managers

Directly supervise non-managers. Carry out the plans and objectives of higher management using

the personnel and other resources assigned to them. Short-range operating plans governing what will be done

tomorrow or next week, assign tasks to their workers, supervisethe work that is done, and evaluate the performance of individualworkers.

Middle Management

Manage through other managers. Make plans of intermediate range to achieve the long-range goals

set by top management, establish departmental policies, andevaluate the performance of subordinate work units and theirmanagers.

Provide and integrating and coordinating function so that theshort-range decisions and activities of first-line supervisorygroups can be orchestrated toward achievement of the long-rangegoals of the enterprise.

Top Management

Responsible for defining the character, mission, and objectives ofthe enterprise.

Establish criteria for and review long-range plans. Evaluate the performance of major departments, and they evaluate

leading management personnel to gauge their readiness forpromotion to key executive positions.

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Page 15: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Managerial Skills:

Managers need three types of skills:

Technical: Specific subject related skills such as engineering, accounting, etc…

Interpersonal: Skills related to dealing with others and leading, motivating, or controlling them

Conceptual: Ability to discern the critical factors that will determine as organization’s success or failure. Ability to see the forest in spite of the trees.

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Page 16: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Lowest Middle Top

Managerial Level

Interpersonal Skills

Conceptual Skills

Technical Skills

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Page 17: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Managerial Roles (What Managers Do)

• Interpersonal roles

• Informational Roles

• Decisional Roles

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Page 18: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

• Interpersonal roles

Figurehead role: Outward relationshipLeader role: Downward relationLiaison role: Horizontal relation

Managerial Roles (What Managers Do)

Outward

Horizontal

DownwardDr.B.G.Cetiner

Page 19: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

• Informational Roles

Monitor Role: Collects information about internal operations and external events.

Disseminator Role: Transforms informationinternally to everybody in organization (like atelephone switchboard)

Spokesman Role: Public relations

Managerial Roles (What Managers Do)

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Page 20: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

• Decisional RolesEntrepreneurial Role: Initiates changes, assumes risks, transforms ideas into useful products.

Disturbance Handler Role: Deals with unforeseen problems and crisis.

Resource Allocator Role: Distributing resources

Negotiator Role: Bargains with suppliers, customers etc. in favor of enterprise

Managerial Roles (What Managers Do)

Dr.B.G.Cetiner

Page 21: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Planning: Selecting missions and objectives. Requires decision making.

Organizing: Establishing the structure for the objective.

Staffing: Keeping filled the organization structure

Leading: Influencing people to achieve the objective

Controlling: Measuring and correcting the activities

Functions of Managers

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Page 22: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Management has a body of specialized knowledge.This knowledge need not to be obtained in formal disciplined programs.

Management: Is it an art or science?

Somewhere between art and science.

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Page 23: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Management has a body of specialized knowledge.

This knowledge need not to be obtained in formal disciplined programs.

Engineering Management (Discipline+art) Somewhere between art and science.

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Page 24: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

What is Engineering Management?

Narrow definition: Directing supervision of engineers or of engineering functions.

Proper Definition of Engineering Manager:

Engineer possessing both abilities to apply engineering principles and skills in organizing and directing people and projects.

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Page 25: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Management

Management can be classified into one of four categories:

An organizational or administrative process

A science, discipline, or art The group of people running an organization

An occupational career

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Page 26: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Why Engineering Managers?

Competition is global and companies need these peopleto compete successfully

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Page 27: ENGINEERING MANAGEMENT IE 256 Dr.B.G.Cetiner cetinerg@itu.edu.tr

Engineering and Management

Advantages of Understanding Technology in Top Management

• Really understanding the business• Understanding technology driving the business today and technology that will change the business in future• Treating Research and Development as investment not an expense to be minimized• Spending more time on strategic thinking• Dedicating a customer’s problem (true marketing via customer relations)• Place a premium on innovation

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