SEEM 3530 Engineering and Technology Management Introduction

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SEEM 3530 Engineering and Technology Management Introduction

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Page 1: SEEM 3530 Engineering and Technology Management Introduction

SEEM 3530 Engineering and Technology Management

Introduction

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What is Engineering?

• The profession in which a knowledgeknowledge of the mathematical and natural science gained by study, study, experience, and practiceexperience, and practice is applied with judgementjudgement to develop ways to utilizeutilize, economically, the materialsmaterials and forcesand forces of nature for the benefit of mankindbenefit of mankind

(1979, US. Engineering societies).

What is Management?

• A set of activitiesset of activities (including planning and decision making, organising, leading and control) directed atdirected at an organisation’s resourceresources s (human, financial, physical and informational) with the aim of achieving achieving organisational goalsorganisational goals in an efficient and effective manner.

(Griffin)

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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

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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

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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

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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)

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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)

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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.

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Henri Fayol (1841-1925)

• Mining Engineer• six primary functions of management:

– forecasting – planning – organizing – commanding – coordinating – controlling (feedback->adjustment)

} leading

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Engineering Management Functions

Engineer Manager

Controlling

Leading

Organizing

Planning

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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)

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Skills for Technical Managers

LeadershipSkills

AdministrativeSkills

Technical Skills

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Enterprise Objective: Value Addition

Engineering-speak:Engineering-speak:• Efficiency - Accomplishing

tasks with the least amount of resources (time, money, equipment/facilities, technology - know-how, procedure, process, skills) - do things rightdo things right

• Effectiveness - Accomplishing tasks with efforts commensurate with the value created by these tasks - do the right thingsdo the right things

Management-speak:Management-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)

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Managerial Decision Making

• What, where, who, how – managers faces numerous and challenging decisions

• Decision making qualities - knowledge, information, and decision making skills

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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 dataWe 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

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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.)

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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.

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SEEM 3530

• Knowledge and skills in decision-making tools

• Appreciation of management issues and complexities in implementing decisions

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• 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

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Project Management BP Oil Spill

Under-fire BP boss Tony Hayward takes time out to enjoy Cowes Week

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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

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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!

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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

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Optimal answers are often obviousDraw on life experience to come up with an answer

Task environments are forgiving of mistakesA wide range of behaviors/solutions are optimal or near-optimal

One can learn by trial and errorReinforcement 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?When Do Heuristics Work Well?When Do Heuristics Work Well?When Do Heuristics Work Well?

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Ambiguity of FeedbackThe trial and error method does not work: the decision is not repeated or feedback is ambiguous

Complexity of DecisionThe problem is not intuitive: beyond our cognitive capabilities

High Penalty for MistakesA small mistake could lead to serious consequences

When Do Heuristics Fail Us?When Do Heuristics Fail Us?

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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

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Leading/MotivationTenth 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.

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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.

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Challenges In the New Millennium

Inside Outside

Local Global

Present Future

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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

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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

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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

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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

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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

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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

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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)