1. Engineering Management Chapter 1 – Introduction: Management Challenges to Engineers Assoc Prof. Ir. Ts. Mat Kamil Awang En. Jaafar Adnan

2. 2 Course Objectives Review the engineering management functions of planning, organizing, leading and controlling. Introduce business fundamentals of cost accounting, financial accounting, financial management and marketing management, and prepare engineers to become effective leaders in meeting the challenges in the new millennium

3. 3 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 in the new century

4. 4 Focal Points 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

5. 5 Main Course Materials Required Texts: –“Fundamentals of Management”, Pearson (2019) –“Engineering Management: Meeting The Global Challenges,” Prentice Hall (2016) Harvard Business School Case Materials Slides are based on Textbook Engineering Management: Meeting the Global Challenges”

6. 6 Grading Policy Quizzes – 10 % Assignment & Case Study - 20 % Business Proposal - 20 % Final Exam - 50 %

7. 7 Schedule – EEE3623 Sem. 2 2023/2024 Introduction Planning Organizing Leading Controlling Creativity and Innovation Innovation Management Situational leadership & Conflict Resolution Risk Management Cost Accounting Financial Accounting and Analysis Engineering Economics Final Exam

8. 8 Class Policy Attend all classes Read the chapters beforehand, as the instructor will call upon students to discuss specific topics from time to time. Participate in class discussions (weekly lectures and case studies); Ask questions (in class or by emails); Arrange face-to-face meetings Complete all assignments (term papers and exams) independently Complete Business Proposal as group work

9. 9 Case Studies Read case materials and follow guidelines (to be specified for each case) Prepare responses considering all management issues relevant to the case - as an external management consultant Actively participate in class discussion Summarize lessons learned and submit short write- up when due

10. 10 Individual Term Papers Each student writes his/her own paper separately Pick a topic agreeable to instructor Conduct search (Internet, library) to define “Best Practices,” list relevant practitioners in industry, and discuss resulting impact/benefits Review results and define improvements potentially possible due to technology change and business process innovation Summarize findings, submit report by due date.

11. 11 Group Business Proposal Students to work in a group of 3-4 students Pick a business area agreeable to instructor Come up with a small scale business proposal that your team aspire to set-up once you have graduated. You need to utilize and exploit materials that are covered during classes in order to come up with a feasible business proposal

12. Engineering as a Profession Accrediting Board for Engineering and Technology (ABET) defined engineering as The profession in which a knowledge of the mathematical and natural sciences gained by study, experience, and practice is applied with judgement to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind

13. Engineering Management The engineering manager is distinguished from other management because he [or she] possesses both an ability to apply engineering principles and a skill in organizing and directing people and projects. He is uniquely qualified for two type of jobs: the management of technical functions in almost any enterprise, or management of boarder functions in a high-technology enterprise.

14. 14 Skills for Managers/Leaders Leadership Skills Administrative Skills Technical Skills

15. 15 Value Addition 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)

16. 16 Value Mantra As a Mantra, engineers and managers alike must focus on Work Which Adds Value (large/small, direct/indirect, short/long-turn, and certain/uncertain)

17. 17 Value to Stakeholders Customers (Product quality, service) Shareholders (ROI, EPS) Suppliers (Market position, financial stability, collaboration) Employees (Workplace, compensation, stability) Community (Corporate citizenship, brand image, tax contribution)

18. 18 Selected Definitions Efficiency - Accomplishing tasks with the least amount of resources (time, money, equipment/facilities, technology - know-how, procedure, process, skills) - do things right Effectiveness - Accomplishing tasks with efforts commensurate with the value created by these tasks - do the right things

19. 19 Selected Definitions Strategic Decisions - Setting direction by specifying what are right things to do, high level engineering managers participate in making strategic decisions Operational (Tactical) Decisions - Engineers participate in defining how to do things right (e.g., methods or procedures to carry out a specific task/project efficiently)

20. 20 Four Dimensional Work

21. 21 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)

22. 22 Tips for Engineers 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)

23. 23 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

24. 24 Engineering Management Functions

25. 25 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)

26. 26 Changing Work Content

27. 27 Learnable Skills Time management and work Habits Interpersonal skills to get along with people Team building, communications and motivation skills Decision support tools (what-if analysis, risk analysis, Kepner-Tregoe decision tool, problem solving, root cause analysis, decision tree, optimization, etc.)

28. 28 Talents to Be Nurtured Over Time Vision - Strategic thinking capabilities to set direction or initiate new projects through technological insight and intuition (lateral thinking) Net-Working - Building a wide base of business/professional connections Drive to Excel (competitive, proactive, energetic, persistent)

29. 29 Interactions Between Groups

30. 30 Challenges In the IR4.0 and Next 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.

31. 31 Challenges In the IR4.0 and Next Millennium

32. 32 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

33. 33 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

34. 34 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

35. 35 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

36. 36 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

37. 37 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

38. 38 Read text - Chapter 2 - Planning

39. 39 Question #1.1 Tom Taylor, the Sales Manager, was told by his boss, Carl Bauer, to take an order from a new customer for a batch of products. Tom knew that the products involved would only partially meet the customer’s requirements and that Carl knew that. But, Carl insisted that the order was too valuable to lose. What should Tom do?

40. 40 Question #1.2 Nancy Bush, the plant manager, needs to decide whether to make or buy a component for the company’s core product. She would like the advice of her production supervisors, since they must implement his eventual decisions. However, she fears that the supervisors will be biased towards making the component in house, as they tend to favor retaining more work for their people. What should Nancy Bush do?

41. 41 Question #1.3 Student A works hard to finish her Masters degree by the due date of January 8, in order to graduate on February 4. She plans to fly back to her own country immediately thereafter. If she graduates on June 10, the next available graduation date, she will need to pay tuition for one more semester. Her advisor Professor B cannot accept the work as presented, because the results of a major marketing activity designed by Students A will become available only after January 20, not before January 8. How can this problem be solved?

42. 42 Question #1.4 The engineering Manager proposes to install an automated bar code scanner costing $4,000. He estimates that he can save about 100 hours of labor time per month because of its speed. He further reasons that at the wage rate of $15/hour, the benefit of using the scanner is $1,500/month and the scanner can be paid back in 2.67 months. As the president of the company, do you agree or disagree with the way he computes the cost/benefit ratio? Why and why not?