eng mgt lect 01
TRANSCRIPT
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Engineering Management
Dr. ir. Yuki Indrayadi
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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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Engineering Management
Functions
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Engineering Management
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
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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?