ENGINEERING MANAGEMENT

 Engineering Management is a specialized form of management that is concerned with

the application of engineering principles to business practice.
 Engineering management is a career that brings together the technological problem-
solving of engineering and the organizational, administrative, and planning abilities of
management in order to oversee complex enterprises from conception to completion.
 Engineering management is considered to be a sub-discipline of industrial
engineering/systems engineering. Successful engineering managers typically require
training and experience in business and engineering.

HISTORY OF ENGINEERING MANAGEMENT

 1908 - Steves Institute of Technology is believed to have the oldest Engineering

management department, established as the School of Business Engineering. This was
later called the Bachelor of Engineering in Engineering Management (BEEM) program and
moved into the School of Systems and Enterprises.
 1959 - Drexel University established the first graduate engineering management degree in
the U.S., which was first offered
 1967 - The first university department titled "Engineering Management" was founded at
the Missouri University of Science and Technology (Missouri S&T, formerly the University
of Missouri-Rolla, formerly Missouri School of Mines).
 1927 - In Germany the first department concentrating on Engineering Management was
established in Berlin
 1982 - In Turkey the Istanbul Technical University has a Management Engineering
Department offering a number of graduate and undergraduate programs in
Management Engineering.
 1980 - In UK the University of Warwick has a specialized department WMG (previously
known as Warwick Manufacturing Group) which offers a graduate programme in MSc
Engineering Business Management
 More recently in the United Kingdom, Teesside University's School of Science and
Engineering introduced an MSc Engineering Management alongside its engineering-
focused MSc Project Management.
 2012 - More recently in the United Kingdom, Teesside University's School of Science and
Engineering introduced an MSc Engineering Management alongside its engineering-
focused MSc Project Management.
 In Canada, Memorial University of Newfoundland has started a complete master's degree
Program in Engineering Management Master of Engineering Management.
 MANAGEMENT STRUCTURES

1. Hierarchical Structures
- Employees are grouped with every employee having one clear supervisor. The grouping
is done based on a few factors, hence many models derived from this.
 Function – employees are grouped according to the function they provide.
 Geography – employees are grouped based on their region. For example in USA
employees might be grouped according to the state. If it’s a global company the
grouping could be done according to countries.
 Product – If a company is producing multiple products or offering different services it can
be grouped according to the product or service.
2. Matrix Structures
- The reporting relationships are set up as a grid, or matrix, rather than in the
traditional hierarchy.
- A type of organizational management in which people with similar skills are pooled for
work assignments, resulting in more than one manager to report to.
3. Horizontal/Flat Structures
- It is mostly adopted by small companies and start-ups in their early stage. It’s almost
impossible to use this model for larger companies with many projects and employees.
4. Line Organizational Structures
- It is one of the simplest types of organizational structures. Its authority flows from top to
bottom. Unlike other structures, specialized and supportive services do not take place in these
organizations.
5. Divisional Structures
- Each organizational function has its own division which corresponds to either products
or geographies. Each division contains the necessary resources and functions needed to support
the product line and geography.
6. Team-based Organizational
- This structure is made of teams working towards a common goal while working on their
individual tasks. They are less hierarchical and they have flexible structures that reinforce
problem-solving, decision-making and teamwork.
7. Network Structures
- The idea behind the network structure is based on social networks. Its structure relies on
open communication and reliable partners; both internal and external. The network structure is
viewed as agiler than other structures because it has few tires, more control and bottom flow of
decision making.

OPERATIONS ANALYSIS
-is the study of an operation or group of related operations for the purpose of analyzing
their efficiency and effectiveness so that improvements can be developed relative to specified
objectives.
 -The OBJECTIVE of this process should principally be to reassess existing processes and
determine how objectives might be better met, how costs could be saved and even, on occasion,
if a particular function is worth being performed.
- OBJECTIVES:
 Increase productivity
 Reduce time and cost
 Improve safety and quality

9 APPROACHES OF OPERATION ANALYSIS

1. OPERATION PURPOSES
- To minimize:
 Defects
 Overproduction
 Waiting
 Non-standard/overproduction
 Transportation
 Motion
 Excess inventory

2. PART DESIGN
 Review design for possible improvement
 Simplify design to decrease number of part
 Decrease number of operations and length of travel

3. TOLERANCES AND SPECIFICATIONS

 Tolerance optimization during design has a positive impact on the yields coming
out of manufacturing, and better yields directly affect product cost and quality.
Analyzing tolerances and variations before trying to produce a product also helps
engineers avoid time-consuming iterations late in the design cycle.

4. MATERIALS
 Less expensive
 Easy to process
 Use economically

5. MANUFACTURING OR SERVICE PROCESS

 Manufacturing engineering or manufacturing process are the steps through which
raw materials are transformed into a final product. The manufacturing process
begins with the product design, and materials specification from which the
product is made.

6. SET-UP AND TOOLS

 Reduce set-up time versus production time
 Utilize full capacity
 7. MATERIAL HANDLING
 Reduce time picking up materials
 Use mechanical equipment

8. FACILITY/PLANT LAYOUT
 Facility layout is an arrangement of different aspects of manufacturing in an
appropriate manner as to achieve desired production results. Facility layout
considers available space, final product, safety of users and facility and
convenience of operations.

9. WORK DESIGN
 Work design is used by organizations to boost productivity by offering employees
non- monetary rewards such as satisfaction from a greater sense of personal
achievement. Also called job design.

PROBLEM SOLVING TOOLS

 EXPLORATORY TOOLS
1. Pareto Analysis
- The Pareto analysis is also known as the 80/20 rule because it is based on the idea
that 80 percent of a project's benefit can come from doing 20 percent of the work.
Conversely, 80 percent of a situation's problems can be traced to 20 percent of the
causes.
2. Fishbone Diagram
- A fishbone diagram, also called a cause and effect diagram or Ishikawa diagram, is a
visualization tool for categorizing the potential causes of a problem in order to
identify its root causes.
3. Gantt Chart
- A Gantt chart is a horizontal bar chart developed as a production control tool in 1917
by Henry L. Gantt, an American engineer and social scientist. Frequently used in
project management, a Gantt chart provides a graphical illustration of a schedule that
helps to plan, coordinate, and track specific tasks in a project.

4. PERT Chart
- A PERT chart is a project management tool used to schedule, organize, and
coordinate tasks within a project. PERT stands for Program Evaluation Review
Technique, a methodology developed by the U.S. Navy in the 1950s to manage the
Polaris submarine missile program.
5. Job Analysis
- Job Analysis is a process to identify and determine in detail the particular job duties
and requirements and the relative importance of these duties for a given job. Job
Analysis is a process where judgements are made about data collected on a job.