Eng Mgt Lect 01

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ENGINEERING MANAGEMENT01 / 14SWISS GERMAN UNIVERSITY

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Engineering Management

Dr. ir. Yuki Indrayadi

[email protected]


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Course Objectives

Review the engineeringmanagement functions ofplanning, organizing,leading and controlling,introduce businessfundamentals of costaccounting, financialaccounting, financialmanagement and

marketing management,and prepare engineers tobecome effective leadersin meeting the challengesin the new millennium


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Major Premises

Technology and business savvy represents avery powerful combination of great demand insociety

Market environment is rapidly evolving(changing marketplace complexities, web-based technologies, globalization)

Leaders with understanding of technology andmanagement perspectives are needed

Engineers with proper management andleadership training have great opportunities toadd value in the new century


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Focal Points

Make engineers more effective astechnical contributors (understand

managerial points of view, effect teamscoordination, drive to add value)

Ready engineers for managerial positions

(managerial functions, success factors,leadership talents, business/managementperspectives, expectations, contributions


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Course Book

Author: Carl Chang

Engineering Management: Challenges

in the New Millennium

Publisher: Pearson Prentice-Hall, 2005

ISBN: 0-13-144678-9

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Grading Policy

40% Quizzes

60% Final Examination

Grade: 90 100 : A, 75 89 : B, 60 74 :

C, 50 59 : D, < 50 : F

2 quizzes before mid term, 2 quizzes

after mid term

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SGUs Academic Calendar

Bachelors degree Semester 2,4,8 (sm6 Internship)

Course: 14 weeks

Remedial week: 1 week

Silent week: 1 week

Final Exam: 2 week

Repetition Final Exam: 1 week

Total : 19 weeks Effective course period : Tue, 10 March Fri,

12 June 2009

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Lecture Plan


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Schedule Summary (1/2)

Chapter 1 Introduction (2 lessons)

Chapter 2 Planning

Chapter 3 Organizing Chapter 4 Leading

Chapter 5 Controlling

Chapter 6 Cost Accounting Chapter 7 Financial Accounting & Analysis

Chapter 8 Financial Management


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Schedule Summary (2/2)

Chapter 9 Marketing Management

Chapter 10 Engineers as Managers/Leaders

Chapter 11 Ethics Chapter 12 Web-Based Enablers for Business

and Engineering Management

Chapter 13 Globalization

Chapter 14 Engineering Management in theNew Millennium

Final exam


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Skills for Managers/Leaders

Leadership

Skills

AdministrativeSkills

Technical Skills


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Value Addition

Increase Sales Revenue (new and enhancedproducts/services - faster, better, cheaper - to

create greater customer satisfaction) Reduced Cost to Do Business (simplified

product design, new technologies, improvedproductivity, raised efficiency, reduced inventory

via supply chains, new production and marketingpartnerships and alliances)

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Value Mantra

As a Mantra, engineers and managersalike must focus on Work Which Adds

Value (large/small, direct/indirect,short/long-turn, and certain/uncertain)


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Value to Stakeholders

Customers (Productquality, service)

Shareholders (ROI, EPS)

Suppliers (Market position,financial stability,collaboration)

Employees (Workplace,compensation, stability)

Community (Corporatecitizenship, brand image,tax contribution)


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Selected Definitions

Efficiency - Accomplishing tasks with theleast amount of resources (time, money,

equipment/facilities, technology - know-how, procedure, process, skills) - do thingsright

Effectiveness - Accomplishing tasks withefforts commensurate with the valuecreated by these tasks - do the right things


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Selected Definitions

Strategic Decisions - Setting direction byspecifying what are right things to do, high

level engineering managers participate inmaking strategic decisions

Operational (Tactical) Decisions -

Engineers participate in defining how to dothings right (e.g., methods or procedures tocarry out a specific task/project efficiently)


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Four Dimensional Work

Work with boss

Engineering

Manager

Work withsubordinates

With self

(Manage own time)

Peers,

Staff people


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Work of an Engineer

As Technical Contributor Understandobjectives of tasks specified Developaction plan for implementation

Definestandards (performance metrics)

Selectmethodology/techniques

Implementtask with proper efforts

Generateresults and secure value

Reportfindings (impact, lessons)


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Tips for Engineers

DemonstrateTechnical Competence & Innovativecapabilities

Brush UpCommunications skills (ask, listen, write

and talk) Showunfailing reliability to induce trust and

confidence

BeProactive in seeking challenging tasks

Exhibi treadiness for assuming largerresponsibilities (take courses, practice skills, gainexperience)


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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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Functions


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Functions Planning(forecasting, setting objectives, action

planning, administering policies, establishing

procedure) Organiz ing(selecting organizational structure,

delegating, establishing working relationship)

Leading(deciding, communicating, motivating,

selecting/developing people) Contro l l ing(setting performance standards,

evaluating/documenting/correcting performance)


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Changing Work Content

First Line Supervisor Mid Manager Executive

Technical 70% 30% 5%

Managerial 25% 40% 25%

Visionary 5% 30% 70%


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Learnable Skills

Time management and work Habits

Interpersonal skills to get along with people

Team building, communications andmotivation skills

Decision support tools (what-if analysis,

risk analysis, kepner-Tregoe decision tool,problem solving, root cause analysis,decision tree, optimization, etc.)


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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)


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Interactions Between Groups

ProcurementDesign/Product

Engineering

Manufacturing

Marketing Sales/Service

Customers

Warehouse

Suppliers


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Challenges In the New Millennium

Marketplace changes rapidly (Web-basedtechnologies, globalization, customer demand,

business networks) affecting how progressivecompanies will be organized

Engineering managers to lead by supervisingcomplex teams, innovating with vision for the

future, designing global products, and organizingsupply chains, apply global resources to deriveeconomies 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 newproduct features to enhance companycompetitiveness; define, control and

reduce costs to improve profitability; initiatetechnology projects to sustain companyposition


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Challenges

Outside - keep abreast of emergingtechnologies and apply them to strengthen

companys core competencies; apply web-based tools to enhance operations andfoster customer relations; identify best

practices to improve engineeringoperations and surpass them; createsupply chain networks to derive speed,quality and cost benefits


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Challenges

Present - Do things right to keep companyoperating smoothly; use Balanced

Scorecard to monitor non-financial andfinancial performance; control costs andeliminate wastes to attain profitability in the

short-run

ENGINEERING MANAGEMENT


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Challenges

Future - seek e-transformationopportunities to create company

profitability in the long-run; introduce newgeneration products timely; create visionfor the future related to technologies;

Define what should be done fortechnology-based success in the future



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Challenges

Local - Utilize resources to best achievecompanys objectives; take ethical and

lawful actions while taking into accountlocal conditions; maintain and nurture localprofessional networks; share lessons

gained with people at other company sites



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Challenges

Global - Apply location-based resources torealize global economies of scale and

scope for achieving cost and technologyadvantages; develop global professionalnetworks; acquire a global mindset;

exercise leadership roles in internationalsettings



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Assignments

Seek opportunities to practice EM skillsconstantly - student organization, other

non-profit groups



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Question #1.1

Tom Taylor, the Sales Manager, was toldby his boss, Carl Bauer, to take an order

from a new customer for a batch ofproducts. Tom knew that the productsinvolved would only partially meet the

customers requirements and that Carlknew that. But, Carl insisted that the orderwas too valuable to lose. What should Tomdo?



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Question #1.2

The engineering Manager proposes to install anautomated bar code scanner costing $4,000. Heestimates that he can save about 100 hours of

labor time per month because of its speed. Hefurther reasons that at the wage rate of $15/hour,the benefit of using the scanner is $1,500/monthand 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 thecost/benefit ratio? Why and why not?

Documents

Eng Mgt Lect 01