GE404 Engineering Management

Topic1.A IntroductionApril 19, 2023 1

Definition of Engineering management

Engineering Management or Management Engineering

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Engineering Management (EM) is a specialized form of management that is required to successfully lead engineering or technical personnel and projects.

Engineering Management is a career that brings together the technological problem-solving savvy of engineering and the organizational, administrative, and planning abilities of management in order to oversee complex enterprises from conception to completion.

Definition of Engineering management

Engineering Management or Management Engineering

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Engineering Management programs typically include instruction in accounting, economics, finance, project management, systems engineering, mathematical modeling and optimization, management information systems, quality control & six sigma, operations research, human resources management, ethical and legal perspectives, team relations, safety and health.

It empowers engineering managers with knowledge, and skills needed to lead technical organizations or processes to success.

Definition of Engineering management

Example areas of engineering are: Product Development, Manufacturing, Construction, Design Engineering,

Industrial Engineering, technology, production, or any other field that employs personnel who perform an engineering function.

Engineering managers They manage engineers who are driven by non-commercial thinking, thus

require the necessary people skills to coach, guide and motivate technical professionals.

One of most important topic in EM is Project Management

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Definition of Management

Management

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The efficient utilization and direction of resources to achieve objectives.

Coordinated activities to direct and control an organization (ISO 9000/2000).

Management is the process of Planning, Organizing, Directing/Leading, Communicating, Motivating and Controlling the efforts of the organizational members and resources in order to achieve organizational goals.

• ISO: International Organization for Standardization

Functions of Management

What the Functions of Management?

They include several interrelated functions which are:

1)Planning

2)Organizing

3)Coordinating / Directing

4)Communicating

5)Motivating

6)Controlling

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1) What is planning? It is the process of setting goals, developing strategies, and outlining

tasks and schedules to accomplish the goals. http://www.businessdictionary.com/definition/controlling.html

A process is Sequence of interdependent and linked procedures which, at every stage, consume one or more resources (employee time, energy, machines, money) to convert inputs (data, material, parts, etc.) into outputs. These outputs then serve as inputs for the next stage until a known goal or end result is reached.

Planning can be viewed from following points: SubjectSubject:- FinancialFinancial Planning, TimeTime Planning, QualityQuality Planning,

OrganizationalOrganizational Planning, …….

OrganizationOrganization:- CorporateCorporate Planning, ProjectProject Planning,…….

TimeTime:- Long-RangeLong-Range. Planning, Short-RangeShort-Range Planning, WeeklyWeekly Planning, …. April 19, 2023 7

Functions of Management

2) What is organizing?

It is The process of determining the responsibilities and scope of authority of each position in the company structure and defining how each company segment interrelates with the others.

It is the arranging several elements into a purposeful sequential or spatial (or both) order or structure.

It is the assembling required resources to attain organizational objectives.

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Functions of Management

3) What is coordinating?

The synchronization and integration of activities, responsibilities, and command and control structures to ensure that the resources of an organization are used most efficiently in pursuit of the specified objectives.

Along with organizing, monitoring, and controlling, coordinating is one of the key functions of management.

http://www.businessdictionary.com/definition/coordination.html

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Functions of Management

4) What is communicating? Engineering Communication: The ability to effectively communicate

information about the design and engineering process. To that end, the competition requires teams to submit technical reports, prepare and deliver engineering presentations, and create poster displays.

http://www.marinetech.org/rov_competition/2008/2008_ENGINEERING_COMMUNICATION_FINAL.pdf

Business Communication: communication used to promote a product, service, or organization; relay information within the business; or deal with legal and similar issues. It is also a means of relaying between a supply chain, for example the consumer and manufacturer.

http://en.wikipedia.org/wiki/Business_communication

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Functions of Management

5) What is motivating? Internal and external factors that stimulate desire and energy in people to

be continually interested in and committed to a job, role, or subject, and to exert persistent effort in attaining a goal

Motivation results from the interactions among conscious and unconscious factors such as the (1) intensity of desire or need, (2) incentive or reward value of the goal, and (3) expectations of the individual and of his or her significant others.

http://www.businessdictionary.com/definition/motivation.html

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Functions of Management

6) What is controlling? The basic management function of (1) establishing benchmarks or

standards, (2) comparing actual performance against them, and (3) taking corrective action, if required

http://www.businessdictionary.com/definition/controlling.html

Control function can be viewed as follow:Controlling involves making sure that the results achieved are in line with the planned results.

The main feature of control is action to correct performance deviations and to insure that expected results are forthcoming.

Control = Monitor + Compare + Analysis + Action

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Functions of Management

Definition of Project management

1) Definition of a project according to IPMA / ICB 2006IPMA / ICB 2006

A projectproject is a time and cost constrained operation to realize a set of defined deliverables up to quality standards and requirements.

The projectproject should deliver all that is described within its scope.

The project scopeproject scope defines the boundaries of a project. The scope embraces the totality of all deliverables, which are included in a project.

The goal of a project is to produce the deliverables defined in the business case.

• IPMA: International Project Management Association

• ICB: IPMA Competence Baseline

What is a project?

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Definition of Project management

What is a project deliverables?

Definition of a deliverables according to IPMA / ICB 2006IPMA / ICB 2006

The deliverables of a successful project are tangible or intangible assets created by the project for the customer. They are represented by drawings, descriptions, specifications, models, prototypes,..

Deliverables are not only the product sold or service put into use after project closure, but also the operational process, organizational changes and human resource changes needed for a successful organization to operate

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Definition of Project managementWhat is a project?

2) According to PMI/PMBOK A project is a temporary and one-time endeavor undertaken to create a unique

product or service, which brings about beneficial change or added value. Projects have start and end dates!

• PMI: Project Management Institute

• PMBOK: Guide to the Project Management Body of Knowledge

• PMP: Project Management Professional

3) According to ISO 9000/2000ISO 9000/2000 A projectproject is a unique process, consisting of a set of coordinated and

controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including the constraints of time, cost and resources.

The outcome of a project may be one or several units of product. A product is the result of a process. A process is a set of interrelated or interacting activities which transforms inputs to outputs.

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Definition of Project management

What is the project characteristics?

Endeavors of any size may be a projectoLarge and small projects demand different handling

TemporaryoDistinguishes projects from operations

UniqueoNot the same old thing

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Definition of Project management

Examples of projects

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Definition of Project management

Examples of projects

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Definition of Project management

Examples of projects

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Definition of Project management

Project management1. It is the discipline of planning, organizing, securing and managing resources

to bring about the successful completion of specific project goals and objectives.

2. It is the Coordinated activities to direct and control a project organization to realize a set of defined deliverables up to quality standards and requirements.

Who project manager? According to ICB 2006ICB 2006

He is the professional specialist who plans and controls a project. He is the person who acts in a transparent manner for the sake of the whole project to satisfy the expectations of the customers, the partners delivering goods and services for the project and the other interested parties.

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Definition of Project management

The Role of the Project Manager

Highly visible Responsible for making sure that:Highly visible Responsible for making sure that: All necessary activities are finished in order and on timeAll necessary activities are finished in order and on time

The project comes in within budgetThe project comes in within budget

The project meets quality goalsThe project meets quality goals

The people assigned to the project receive motivation, direction, and The people assigned to the project receive motivation, direction, and informationinformation

Project managers should be:

Good coaches

Good communicators

Able to organize activities from a variety of disciplines

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Definition of Project management

Ethical Issues

Bid rigging – revealing confidential information to give some Bid rigging – revealing confidential information to give some bidders an unfair advantagebidders an unfair advantage

““Low balling” contractors – try to “buy” the project by bidding Low balling” contractors – try to “buy” the project by bidding low and hope to renegotiate or cut cornerslow and hope to renegotiate or cut corners

Bribery – particularly on international projectsBribery – particularly on international projects

Expense account paddingExpense account padding

Use of substandard materialsUse of substandard materials

Compromising health and safety standardsCompromising health and safety standards

Withholding needed informationWithholding needed information

Failure to admit project failure at closeFailure to admit project failure at close

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GE404 Course Description

Introduction for engineering management.

Planning Engineering projects.

Scheduling using activity-on-node and precedence methods.

Resource leveling and allocation.

Project time-cost trade-off.

Cash flow forecasting.

Updating construction schedules.

Project time and cost control.

Contractual and organizational approaches including definition

of organizational responsibilities of project participants.

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GE404 Course Learning Objectives

a) Using bar chart technique to formulate a complete plan for an engineering project.

b) Apply activity-on-node network, and precedence diagram to schedule the project.

c) Level and allocate project resources.

d) Shorten project duration.

e) Monitor an engineering project for purpose of time and cost control.

f) Analyze project cash flow.

g) Use computer software for preparing project schedules

h) Understand principles of project organization and contractual relationships including definition of professional responsibilities of project participants.

Students completing this course successfully will be able to:

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GE404 Course Topics Covered

1) Introduction for engineering management (2 hours).

2) Planning with bar chart (3 hours).

3) Activity-on-node and precedence diagramming (6 hours). And Time-scaled network (3 hours).

4) Resource leveling and allocation (5 hours).

5) Time-cost trade-off (3 hours).

6) Cash flow analysis (3 hours).

7) Time and cost control (4 hours).

8) Contractual and organizational approaches (3 hours).

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GE404 Textbook(s) and/or Other Required Material

Moder, J.; Phillips, C. and Davis, E. (1983). Project Management with CPM, PERT and Precedence Diagramming, 3rd Edition, van Nostrand Reinhold.

Course lectures and solved examples are also found on the following website: http://faculty.ksu.edu.sa/HAElshakour/default.aspx

http://faculty.ksu.edu.sa

Heizer, jay, and Render, Barry; “Operation Management”; Pearson Education, latest Ed.

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GE404 Grade Distribution

Mid-term exam 35%

Lecture Attendance and Participation 5%

Assignments and Quizzes 10%

Final Exam 50%

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