Engineering Management Module 1

Money

Manpower

Materials

Machine

Methods

5 M's of Management

Engineering

application of knowledge gained from research, experience, and practice of mathematical and natural science

Management

set of activities focused at the resources of an organization in order to effectively achieve organizational objectives

Engineering Management

tip: uses the word specialized

specialized form of management required to successfully lead engineering personnel and projects

Engineering Management

the activity combining “technical knowledge with the ability to organize and coordinate worker power, materials, machinery, and money

Managers

those in positions of authority who make decisions

Managers

someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources

Organization

a group of two or more individuals that exists and works to achieve widely held goals

efficient

using resources wisely and without unnecessary waste

effective

doing the right thing successfully

Objective

setting the goals for the achievement of which management tasks are driven

Effective Management

only possible by setting goals that are aligned with the common objectives of the organization

money

- financial resources of an organization

- most critical and all-purpose resource of every organization

manpower

- human resources of an organization

- all personnel employed in an organization

materials

resources used by individuals to fulfill the organization's goals

machines

resources that help facilities to perform all activities towards the achievement of the objectives

methods

tip: tip: normal (learn the difference with method)

normal and prescribed ways of doing things

people

the managers and manpower

Objective

Financial, Human and Material Resources of Management

People

basic elements of management

Frederick Taylor

father of modern management

Frederick Taylor

he sought to reduce the time a worker spent on each task

Frederick Taylor

was the first to suggest that the primary functions of managers should be planning and training

1909

the year when The Principles of Scientific Management was issued

The Principles of Scientific Management

book where Taylor proposed that if workers were optimized and simplified, productivity would increase

Frank and Lillian Gilbreth

came up with the idea of filming workers to analyze their motions

1. Scientifically study each part of a task and develop the best method for performing it

2. Carefully select workers and train them to perform each task

3. Cooperate fully with workers

4. Managers analyze and plan work; workers actually perform the tasks

4 Principles of Scientific Management

Max Weber

he was convinced that organizations based on rational authority were most competent

Bureaucracy

a type of rational organization where authority was given to the most competent people

authority

the power to hold people accountable for their actions

1. Authority is the power to hold people accountable for their actions.

2. Positions in the firm should be held based on performance, not social contacts.

3. Position duties are clearly identified so that people know what is expected of them.

4. Lines of authority should be clearly identified such that workers know who reports to who.

5. Rules, standard operating procedures (SOPs), and norms guide the firm's operations.

5 Principle of Bureaucracy

Henri Fayol

- desired that managers be accountable for more than just increasing production

- thought that successful companies were bound to be happy and empowered workers, and thus effective management

General and Industrial Management

book published by Henri Fayol in 1916

Henri Fayol

he believed that successful businesses included satisfied and motivated employees, as well as effective management

1916

year when Fayol published his book

Foresight

Organization

Command

Coordinate

Control

5 Duties of Management

Planning

Organizing

Leading

Controlling

4 Functions of Management

foresight

create a plan of action for future

organization

provides the resources to implement the plan

command

select and lead the best workers

coordinate

make sure the diverse efforts fit together

control

verify whether things are going according to plan and make corrections where needed

Division of Work

specialization helps the individual to build up expertise

Authority

power to issue orders

Discipline

promotes consistent rules and regulations aimed at achieving good discipline and compliance among employees

Unity in Command

employees are only expected to be accountable to one immediate supervisor or superior

Unity in Direction

there should be only one plan, one objective, and one head for each of the plans

Subordination of Individual Interest to General Interest

management must see that the goals of the firms are always paramount

Renumeration

both workers and management should have a fair wage and justifiable

Centralization

decision-making should be centralized

Scalar Chain

a hierarchy is necessary for unity of direction

Order

- material order and social order

- rule of giving every material its right position in the organization

Equity

treating employees fairly

Stability of Tenure

employees work better if job security and career progress are assured to them

Initiative

help employees feel more engaged with an organization and improve their workplace satisfaction

Espirit de Corps

management must foster the morale of its employees

Espirit de Corps

French phrase which means enthusiasm and devotion among a group of people

Division of Work

Authority and Responsibility

Discipline

Unity of Command

Unity of Direction

Subordination of Individual Interest

Remuneration

The Degree of Centralization

Scalar Chain

Order

Equity

Stability of Tenure of Personnel

Initiative

Espirit de Corps

DEAD TRIES SUSO U

14 Principles of Management

Henry Gantt

made the Gantt Chart and the Task and Bonus System

Gantt Chart

Task and Bonus System

two key contributions to Classical Management Theory by Henry Gantt

Gantt Chart

system that offers a visual representation of what happens during a project

project breaks down into tasks

when each task will begin and end

how long

who's assigned

how tasks relate

when important meetings, approvals, or deadlines need to happen

how work is progressing

full project schedule

Gantt Chart benefits

Mary Parker Follett

- mother of modern management

- believed that management was the art of getting things done through people

- offered valuable insight on the importance of "powering with" rather than "powering over"

Direct Contact

Early Stages

Reciprocal Relationship

Continuous Process

Follett's Principles of Coordination

Direct Contact

helps organization avoid conflict and misunderstandings

Early Stages

no employee should feel less important than the next; each has a significant role that compliments the roles of others

Reciprocal Relationships

no one person should be trying less or more than the other

Continuous Process

coordination must be maintained

Integration

Power With

Group Power

Follett's Theory of Management

Integration

workers of all levels should integrate to reach organization's goals

Power With

workers should practice co-active power rather than delegating power to certain individuals

Group Power

should be valued over personal power

Project

tip: project is a process

- temporary process that has clearly defined start and end time developed to accomplish a well-defined objective

- group of interrelated activities, constrained by time, cost and scope

Temporary

Unique

Project Characteristics

Temporary

means it has definite start and finish

Unique

project/service is different in some distinguishing way

Project Management

tip: it is an organization

- unique process consisting a set of coordinated and controlled activities with start and finish dates

- temporary organization that is needed to produce a unique and predefined outcome or result at a pre-specified time

A temporary organization

Coordinated and controlled activities

A time and cost constrained operation

Application of knowledge, skills, tools, and techniques

Project Management Characteristics

Initiation

stage where a project is approved and financed as an idea

Planning

development of detailed plans required to managae the implementation of the project

Implementation

tip: necessary actions

taking all necessary actions to ensure the activities in the project plan are completed

Monitoring

measuring the progress of a project against its objectives

Handle projects effectively

Define the project and agree with the customer

Plan and assess resource needs for the project

Estimate project cost and make proposals

Plan and schedule activities in a project

Allocate the right resource at the right time

Assess risk and failure points and make back up plans

Lead a project team effectively and communicate well

Importance of Project Management (mahahaba)

Adapt

learns and adapts the the method, and approaches and determines what works best for the project

Objectives not properly defined

Insufficient planning and coordination

Poor estimation of duration and cost

Incomplete, unrealistic, and outdated plans

Lack of communication

Inadequate definition and acceptance of roles

Poor commitment to the project

Weak control processes

Lack of risk analysis

Lack of good quality controls

Project Challenges (mahahaba)

Closing

when the project has achieved the planned objectives and all deliverables have been completed

Internal Environment

External Environment

two strong factors projects are influenced by

Internal Environmental

conditions that the organization has established for the project work

External Environment

conditions that the project has little or no influence to change

policies and procedures

compensations

benefits

standards

access and use of technology

norms

values

politics

general organization culture

examples of Internal Environment (Module 1)

donor and government requirements

international or local regulations

local infrastructure

limited availability of skills

competitive labor market

examples of External Environment (Module 1)

Process

People

Tool

Project Ecosystem (3)

Process

tip: learn the difference with method

determine how the work needs to be accomplished

Tool

techniques and devices selected by the organization

People

skills and capabilities of the people in charge of managing the project

Initiation

Planning

Implementation

Monitoring

Adapt

Closing

Project Management Cycle

Scope

Schedule

Budget

Quality

Project Constraints (4)

Scope

boundaries of the project

Schedule

time to complete the project

Budget

tip: funding (learn the difference with money)

funding available to cover all expenses

Quality

delivering the project outcomes according to the expectations of the stakeholders