management for engineers(class notes)

8/8/2019 Management for Engineers(Class Notes)

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[2] [Management for Engineers] [DEM 312] [ Ali Abdul Hameed ] [ KI 070149 ]

CONTENTS

TOPIC PAGE

Management [ 03 ]

Training [ 07 ]

Management responsibilities [ 09 ]

Organisation [ 12 ]

Team [ 16 ]

Projects [ 17 ]

Production management [ 25 ]

Production Quality [ 27 ]

Maintenance management [ 30 ]

Marketing [ 32 ]




MANAGEMENT

Science to engineering

Creativity

Knowledge

Mathematics

Natural sciences

Engineering Applied / utilised / Developed Benefit of Mankind

Study

Experience

Practice

What is management?

Management can be defined as the process of administering and coordinating work activities and

resources effectively and efficiently to achieve the goals of the organization.

Effectiveness

Pursuing the appropriate goals – doing the right things.

Efficiency

Using the fewest inputs to generate a given output – doing things right.

Science Engineering




Resouce /work

Coordinate

Management

Effectively / Efficiently

Administer

New engineer

Manager

Manual Activities

Management




Factors an engineering manager will face

Management

Technical and engineering knowledge

Finance

Equipment / machinery

Environmental

Time factor

People factor

Management functions

Plan

Organise

Staff

Motivate

Communicate

Decision making

Implement change

Planning

Anticipating future events. Making preparation. Long and short range foal setting

Organising

Establishing authority, responsibility patterns. Assigning roles, facilities and equipment

Staffing

Deciding staff needs. Finding, hiring and training people. Meeting employment regulations.




Motivating / leading

Allowing and encouraging professional development

Communicating

Convey goals, purposes, information, instructions

Monitoring / control

Monitoring and evaluating individual and group performance. Comparing actual performance with

goals and plans

Decision making:

Giving instruction and making decisions.

Implementing change

Correcting aspects of the organisations operations




Management hierarchy

In general the management hierarchy of an organisation can be grouped into three levels.

Top management ( president / ceo /coo )

Middle management ( general manager / finance officer / regional manager / head of departement)

Lower management (section head, line management, supervisors, team headers)

Degree of importance

Top management – conceptual skill – visualise, think, set vision, mission, goals

Middle management – human skill – manage, work with people, get best out of people

Lower management – technical skill- posseses technical knowledge in specialised fields

Human resources

Planning and recruitement

Anticipate needs, trainees, apprentices, trained and experienced staff, part timers, contract staff

top

management

middle management

lower management




TRAINING AND DEVELOPEMENT

Types and training and job to prepare existing and new staff to fulfill their roles satisfactory

- In service or in-company or what place training

- External courses- Retraining

- Encouraging multi skill

Planning Anticipate needs

Experiment staff

Recruitement Trainees

Apprentices

Training Contract etc.

Developement

Training

- provide opportunities for employees to develop job-specific skills

- continuous development

- maintain competence

- change job behaviour




Forms and training for engineering professionals

1) in house training programs – especially useful as they deal directly with the specific

environment and conditions that exist in the job

2) selected off premises courses – they must be carefully and used where special expertise is

not available within the organisation

3) continuing education programs – an excellent way to advance the knowledge of the

employee

4) On the job training – generally conceded to be the most effective method. This is true only

when time is taken to plan the program adequately

5) rotational training – this is especially important in smaller offices where generalist are

necessary to cover varying workload situations adequately

6) technical society participation on and professional registration

Promotion

Redeployment

Succession plan for key personal

Productivity

Performance appraisal - written feed back

-by HOD

-interview

Retirements and redundancy and layoff

- Any plan for those reaching retirement age

- Any option for them for retires early or stays on

- Re-employment for skilled and critical staff




Management

MANAGEMENT RESPONSIBILITIES AND CONSTRAINTS

share holders

community

suppliers

customers

employees

Governments

Natural Environment

Labour market

Competitors

Creditors

Pressure groups




Motivation

Motivation → drive/ desire → (to) achieve / accomplish → a goal / an objective

Forces of motivation

Initiation

Direction (target)

Persistence

Factors

Motivators / Satisfiers Dissatisfies

Recognition Company policyAchievement (sense of achievement) Pay / salary / promotion

Interest Interpersonal relationship

Responsibility Working conditions

Advance / Career development

Motivation Theories

Theory X and Theory Y - Douglas McGregor

Theory of “hierarchy of human needs” – Abraham Maslow

Theory X

- the average human being inherit dislike of work

- avoid responsibility

- need to be directed

- little ambition

Theory Y

-

like work / responsibility- exercise self direction

- seek responsibility

- ambitious




Maslow’s hierarchy of needs

ORGANISATION

An organisation is a group or arrangement of people or team created to accomplish some specific

goals.

Characteristics of an organisation

1) each organisation has a particular goal or purpose

2) an organisation is composed of people

3) an organisation has a structure or arrangement where the people work

Group / Team → Organisation → achieve specific goal

5 • SELF FULFILLMENT NEEDS

• ( power ,wealth , influence )

4 • SELF ESTEEM NEEDS

• ( Recognition , Respect )

3 • SOCIAL / BELONGING NEEDS

• ( friendship / acceptance )

2 • SAFETY NEEDS

• ( job secuirity )

1 • BASIC COMFORT NEEDS

• ( food, clothing, shelter )




Engineering organisation

Organisational forms

Basic organisation forms are:-

- functional

- product

- matrix

- geographic

Function (most common / reduce duplication/ slow) → by discipline / by function

Product → separate units according to product

Project → projects

Matrix → project + functional

Geographic → location

Functional organisation

In a functional type organisation, the major division of the structure is by function or discipline

President

Director of engineering

CivilEngineering

MechanicalEngineering

Electricalengineering

Director of Administration

Humanresources

Finance

BusinessDevelopment

Director of Research

Materials

Softwareresearch

MedicalResearch




Product organisation

A product organisation organises work and works into separate units responsible for producing

particular products or services

Advantages and Disadvantages of product organisation

Advantages:

- allows specialisation in one area of expertise

- managers and workers develop a broader set of experience

- clear line of responsibility and authority

- easier for managers to assess work performance

Disadvantages:

- Duplication of functions

- Difficult to achieve coordination across different departments

- Focus on product diminishes overall organisational goals

- “ empire building”

Project organisation

The structure is organised with projects as the major submission

Company XYZ

Automobiles

Design

Manufacturing

Market

Finance

Human resources

Appliances

Design

Manufacturing

Market

Finance

Human resources




Matrix organisation

A matrix organisation combines features of the functional organisation and the project organisation

with emphasis on functional and technical speciality as well as employs on achieving project goals

A Geographic hierarchy

ManagingDirector

Director Europe

ManufacturingManager

EngineeringManager

MarketingManager

Director Far East

ManufacturingManager

EngineeringManager

MarketingManager

VP engineering

Chief Mechanical

Designer

Mechanical Designer

Project A

Mechanical Designer

Project B

Electrical Designer

Project B

Electrical Designer

Project A

Chief Electrical

Designer

Project Manager

Project B

Project Manager

Project A




TEAM, CONFLICT

Team

A team is a group of people who have different talents but work together toward a common goal.

Development effective teams

Basic elements

- Working on common tasks together ( mission, strategy , plan, budget, staffing)

- Having discipline, effective working meetings at frequent intervals to discuss and tasks done

- Team spirit

High performance teams

- Sense of belonging

- Having high productivity

- Support by team members

- Cover one another’s work during absence

- Have respect and regard for one another

- Clear direct communication

- Many conflicts, but resolved quickly

- Differences are highly valued

Team conflict

Most teams have conflicts and disagreements

Cognitive type confliction

- Focuses on problem related differences of opinion

- Team members disagree because of their different skills and expertise

- Normally associated with improvement in team performance

Affective type confliction

- Refers to emotional and personal disagreement rather than expertise

Conflicts may also occur for teams whose members may be answerable to different management

groups.

Example: members in a project team may be answerable to project manager and to the general

manager




PROJECTS

A project is a unique task under taken to be completed within a finite time to provide a specific

product or service

Project:

- Unique in nature, all projects are different

- It is a temporary undertaking

- Have definite time span, definite start and stopping points

- Specific goals that is to provide unique product or service

Phases of project Initiate → Plan → execute → control → closeout

Initiation stage

- Identify and set the goals- Establish how goals/ objectives will be achieved

- Estimate/ determine the cost and the time span

- Identify / establish the type of project organisation

Planning stage

- Establish and acquire man power for the project organisation

- Identify and establish specific procedures and process to achieve objectives and goals

- Review estimates for the time and budget / cost

Execution stage

- Actual execution or performance of the plan and activities

- Develop/ construct the project/ facility

- Evaluate performance

- Team development

- Solicitations, obtaining quotations, offers

Control

-

Controlling changes to the project scope- Controlling change to the project schedule

- Monitoring

- Collecting information, status, reports

- Identifying and tracking risks

Closeout

- Complete/ make project / product and handover to the customer

- Contract closeout

- Establish/ conduct training

- Establish project review and analyse feedback for future projects




Project management

Project management is the planning, organising, directing and controlling of company resources for

a specific period to achieve specific goals

E.g.:- Management of construction of a new highway, management of a building of a new factory.

Project team

- Project teams are created to complete specific one time projects or tasks within a limited

time

- Project teams are normally lead by a project manager

- Project teams are unique and often staffed by employees from different function

departments

- Team members from different functional areas can reduce communication barriers

- Encourages cooperation among different departments

- Speed up processes

Interaction with people

PROJECTMANAGER

• project teams

• differentskills,disciplines,

staff

Resources PROJECTMANAGEMENT

• plan

• organise

• direct

• control

Specific timeperiod

SPECIFIC GOAL

PROJECTMANAGER

SENIORMANAGEMENT

CLIENTS

OUTSIDERES,

SUPLIERS,

PUBLIC,

MEDIA

PROJECTTEAM




Time management

In a project time management is important

- Time schedule

-

A project must be completed on time- A large amount of time is spent communicating and interacting with people

- Must be spent in effective and productive manner

- A daily log of activities should be compiled such as telephone, meetings, visitors – to

determine time spent and to improve time management

- Project manager should set priorities for tasks

- Time is money

People

- Engineering management involves many aspects of people

- Human resource management

- Manpower planning

- Helps to identify current and future needs

- The succession plan

- Staff development plan

- Recruitment plan

- Redundancy plan

Consultants

- The specialist from the outside who provides support, services and advices to the project

Partners

- The organisations joining together to carry out project or services

Public organisations/ individuals

- These include the regulatory bodies, professional societies. The individual refers to the

ordinary people (e.g.:- road users )

Media

The manager may be requested to answer the press, TV or radio and to give explanations and

interviews




Project life cycle

The life cycle of a project indicates the completion of the project with respect to time (schedule) or

resources (budget). The programs of most projects can be represented by two different charts

similar to the S-shaped and J-shaped paths.

S-shaped path slow → Fast → Slow

J-shaped path slow →Fast → Fast

0

10

20

30

40

5060

70

80

90

100

0 2 4 6 8 10 12 14

% complete

Time

S-Shaped Path

Slow finish

Fast momentum

Slow start

0

10

20

30

40

50

6070

80

90

100

0 2 4 6 8 10 12 14

% complete

Time

J-Shaped Path

Fast finish

Gaining momentum

Slow start




Success of a project

Generally a project is said to be successful if the target or goal is achieved with the specified cost

(budget), time (schedule) and performance (specification).

The three goals of a project

Cost (Budget)

Time (schedule)

Performance (specification)

Responsibility

- People ( Giving tasks relevant to qualification)

- Information

- Project

o Keep schedule

o Within budget

o Specification

o Meet demands of your client

- Project team

o Clear instruction

o Define role and responsibility

o Personal development

o Settle problems and disagreement

- Facilities

- Time schedule

o Set priorities

Performance

PROJECT




Strength

Example: - financially strong, strong workforce, experience

Weakness

Example:-not financially strong, lack of experience, far from location

Opportunity

Example:-new market, no competition

Threats

Example:-strong rival company, change of environment

Project planning, scheduling and control

Management tools:-

Examples:-

1) Bar charting methods

2) Work breakdown structure (WBS)

3) Critical Path Method (CPM)

4) Project evaluation and review technique (PERT)

5) Gantt chart6) Project management software

Work breakdown structure

Houseconstruction

Concrete

foundation

wall

etc....

Electrical

wiring

lights

etc....

Plumbing

piping

sink

etc....

Woodwork

doors

windows

etc....




CPM (critical path method)

CPM or the critical path method is a management tool that helps the manager to identify the conflict

tasks that have to be monitored closely

The critical path of a project is the path from start to end that have the longest duration

Critical Path = A→D→C→F→G (11 Days)

Gantt chart

Time

Activity 1 2 3 4 5 6 7 8 9 10

Activity 1

Activity 2

Activity 3

Activity 4

WEEKS

AF

CB

ED

G

2

4

1

3

1

3

2




Production management

What is production management?

The set of activities that creates goods or services by transforming inputs into outputs is considered

as production management (or operators management)

PRODUCTION:

The creation of goods / products / services

Tangible and Intangible production

What is production?

Productivity

The production of goods and services involves the transformation of resources into goods and

services

Definition:

Productivity = Output / Input

Measure of output (goods, services) per unit of Input (labour, capital)

Example: Units / Man-hour , Units / Ringgit

How to calculate productivity

Question 1 – A company produces 160 boxes using 2 people working 8 hours per day. What is the

productivity of this company?

Answer-

Productivity = Output / Input

= 160 boxes / 2 * 8 (16 man-hour)

= 10 boxes / man-hour

RESOURCES

•Manpower

•Machine

•Material

•Money

PRODUCTION PRODUCT/SERVICE




Question 2 – A company reschedules the workflow. This produces 240 boxes per day. What is the

percentage increase in productivity?

Answer-

Increase in productivity = ((240-160)*100) / 160 = 50 %

Manufacturing process

Manufacturing operations can be categorised into 4 general processes

1- Job-Shop production

2- Batch production

3- Continuous production

4- Assembly line production

Job-shop production

- Highly specialised

- Low volume

- Equipment flexible

Batch production

- Production in batches

- Different specifications

- Equipment can be adjustable

Continuous production

- Large volume

- Standardised production

- Equipment seldom modified (example: steel production)

Assembly line (Mass) production

- Large scale production

- Specialised equipment

- Difficult to change (example: car assembly plant)

Variances

Products or services exhibit variations

Inherent Variation: Variation or chance / random

Assignable or Special Variation: If detected can be eliminated (example: tool wear, equipment

adjustment, defective material, carelessness, distraction, incorrect procedure)




PRODUCTION QUALITY AND RELIABILITY

Quality

American society of quality

“The totality of features and characteristics of product or service that bears on its ability to satisfy

stated or implied needs”

The ability of a product or service to meet customer needs

The aim of quality control is to assure that an output is produced at the specified quality level

Managing Quality

DEFINE: what to control (example: hardness, thickness)

MEASURE: for counted or measured variables

COMPARE WITH STANDARD: quality being sought

EVALUATE: is it out of control

TAKE CORRECTIVE ACTION: uncover cause and correct it

EVALUATE CORRECTIVE ACTION: ensure corrective action is effective, monitor output for a period

of time

A simple quality control process

INPUT

CONTROL / MONOTORING

OUTPUTPROCESS

Resources

Feedback




International quality standards

ISO 9000

A set of quality standards developed by the international standard organisation (ISO)

E.g.: ISO 9000:2000, ISO 9001:2000, ISO 9004:2000

The focuses of the standard is to establish quality management procedures, through detailed

documentation, work, instructions and record keeping.

** ISO 9000 does not mention about the quality of the product

TQM (Total Quality Management)

- Excel in all aspects of products / services

- Continuous improvement

- Bench marking (e.g.: ISO standards)

- JIT – just in time

Reliability

Reliability is the measure of ability of a product to perform its intended function under prescribed

conditions

Failure is described as a situation which a product does not perform as intended

Reliability is specified with respect to normal operating conditions

Normal operating conditions

- Loud

- Temperature

- Humidity

- Operating cost

- Maintenance schedule

Ways to test

- Accelerated testing

- Simulation

Statistical tools for quality control

- Check sheets

- Flow charts

- Scatter diagram

- Cause and effect diagram (Ishikawa diagram or fish bone chart )

- Pareto chart

- Histogram- Statistical chart




Scatter chart

Ishikawa Diagram

Pareto Chart

Histogram

0 1 2 3 4 5

Material

Design

Employees

Machinery

Contribution to problem

0

1

2

3

4

5

48 49 50 51

F r e q u e n c y

Dimension




Cost of quality

Cost of quality can be categorised as: -

Prevention costs

Costs associated with reducing the potential for defective components or services (e.g.:- training,

quality improvement programs, lectures etc.)

Appraisal costs: costs related to evaluation of products, processes, parts, services

(e.g.:- testing, labs, inspectors etc.)

Internal failures

Costs related from production of defective parts or services before delivery to customers

(e.g.:- rework, scrap, downtime)

External costs

Costs that occur after delivery of defective products or services

(e.g.:- returned goods, loss of goodwill, and loss of customers)

MAINTENANCE MANAGEMENT

Maintenance management is the organisational control in administration of activities to retain /

restore the operating / productive means of functions of services/ products.

The services / products include equipment, machinery, facilities, utilities, buildings, ground and

plants.

Maintenance function

To keep the equipment, machinery, facilities, utilities, buildings, ground or plants operating or

functioning at the required level and at the most economical cost

Types of maintenance

- Preventive maintenance

- Corrective maintenance

- Improvement maintenance




Preventive maintenance

Preventive maintenance refers to all programmed maintenance activities carried out at pre

determined intervals to prevent breakdown / failure. The maintenance to be done is decided in

advance. Preventive maintenance is planned maintenance.

- Routine preventive maintenance

- Predictive maintenance

Corrective maintenance

Corrective maintenance refers to al maintenance which is carried out in order to correct / repair a

breakdown / failure of equipment. The Corrective maintenance activity is difficult to forecast.

- Unplanned corrective maintenance

o Maintenance which cannot be planned

o Insufficient time to plan for request

o Associated with high cost

o Contributing to indirect operational cost

- Planned corrective maintenance

o Knowing what should be done when breakdown

(e.g.:- spares, personnel, documentation)

o Reduce direct and indirect operational cost

Improvement maintenance

Improvement maintenance refers to the improvement in modification to the equipment so as toimprove its condition in performance.

Maintenance and cost

All physical facilities are susceptible to failure through breakdown, deterioration in performance due

to age, use and obsolescence. These failures affect the production cost of the product

1- Break down failure

- Results in unplanned losses on the output of product / services

2- Deterioration in performance

- Causing increases in frequency of failures- Results in unacceptable levels of quality

- Incurring cost to fix the problem

3- Obsolescence

- Old and obsolete resulting in higher cot to maintain

Running maintenance

Shutdown maintenance

Overhaul maintenance




Training for maintenance

1- Technical knowledge / equipment functionality

- Practical / theoretical

- Avoid indispensible employee

2- General training / improvement

- Technical report writing

- Community skill

- Soft skill

Effective maintenance

- Fulfilling the basic function of maintenance

o Sustaining the functionality of asset

o Maximize equipment availability

- Increase productivity and quality- Enhance organisations image

- Lower cost of production

- Motivated work force

- Social responsibility ( ensuring good environment)

- Safe and conducive environment

Effective and good maintenance culture

- Technical know-how / functionality

- General training / improvement

- Company initiated training

o Team building

o QCC , TQM (Quantum Continuum Club, Total Quality Management )

o Motivation

- Special training




MARKETING

The process of planning and executing the creation, pricing, promotion and distribution of ideas,

goods and services to create exchanges that satisfy individual or organisational objectives.

Marketing functions

- Buying

- Selling

- Transportation

- Communication

- Storage

- Inventory

- Finance

- Market information

- Logistics- Risk

- Target market

Types

Consumer market

- Ordinary consumer

Industrial market

- Production

- Retailer

- Government

- Institutional

Markets: Groups of people or organisation or both that has needs for the product. They have the

ability and authority to buy the products

Industrial Markets

Producer markets: Individuals, business organisations who buy the products

Retailer markets: The middle people or intermediaries

(e.g.:- the wholesalers or retailers who buy the products to resell their profits)

Governmental markets: Purchases made by the government

Institutional market: Hospitals, schools and non-profit organisations




Logistics

Logistics refer to the overall movement of goods from supplier, through the manufacturing plant and

reaching the customer

1) Procurement purchasing

2) Receiving of goods / materials

3) Production

4) Stock control

5) Storing

6) Distribution to customers

Suppliers

- Management must select suppliers properly

- Have backup supplier

- Price – comparing to get best prices

- Quality – find the best material at best prices

- Reliability – check reliability of potential suppliers

- Credit terms – supplier demands credit terms or immediate payment)

- Transportation or supplying cost

Inventory management

- Raw material inventory

- WIP ( work in progress)

- Operating inventory

- Provident inventory

Holding costs

The costs or storing products until they are purchased or shipped or sent to the customers

Stock out costs

Cost of sales lost when products are not in the inventory

Order processing

This consist of receiving and processing customers purchase orders, includes billing and granting

credit

Ware housing

This refers to the activities involved in receiving, storing and preparing products or goods for

reshipment

Goods / Materials Manufacturing plant Customers



Materials handling

This refers to the actual handling in goods in ware housing and during transportation

- Proper handling increases the capacity of ware house

- Reduce breakage and damage

Material flow cycle

Cycle time

95% 5%

→→Input →→ move wait setup runtime →→ output→→

** About 95 % of work in process is unproductive time

management for engineers(class notes)

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