Chapter 24 Risk Management: An Introduction to Financial Engineering
Introduction to Engineering Management
Transcript of Introduction to Engineering Management
ENGINEERING MANAGEMENT
IE 256Eng. Ahmed Bakhsh
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
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??
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?
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 judgment 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.
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Interrelated components which come together for some purposes.
Components
Interrelations
Boundary
Environment
Purposeinputs
Outputs
interface
constraints
What is a system?
.
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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
Engineering and Management
Top-level management(president, executive vice president)
Middle managers(chief engineer, division head etc.)
First-line managers (foreman, supervisor, section chief)
Management Levels
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 controlling 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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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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Lowest Middle Top
Managerial Level
Interpersonal Skills
Conceptual Skills
Technical Skills
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Managerial Roles (What Managers Do)
• Interpersonal roles
• Informational Roles
• Decisional Roles
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• Interpersonal roles
Figurehead role: Outward relationshipLeader role: Downward relationLiaison role: Horizontal relation
Managerial Roles (What Managers Do)
Outward
Horizontal
Downward
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• 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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• 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)
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•Planning: Selecting missions and objectives. Requires decision making.
•Organizing: Establishing the structure for the objective.
•Staffing: Keeping filled the organization structure
•Directing: Influencing people to achieve the objective
•Controlling: Measuring and correcting the activities
Functions of Managers
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.
Engineering Management (Discipline + art) Somewhere between art and science.
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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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Why Engineering Managers?
Competition is global and companies need these peopleto compete successfully
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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
Management & Engineering Career
Engineering Management
Production Plant & industrial engineering
and operations
management
project
Engineering
Marketing Advanced
Accounting design
Finance and research
Economics
Administration
Business Engineering
Engineering and Management