stats - science of conducting studies to collect, organize, summarize, analyze, and draw

conclusions from data.

Usage of stats (to become better consumers or customers)
1 Students, like professional people, must be able to read and understand the various statistical
studies performed in their fields. To have this understanding, they must be knowledgeable about
the vocabulary, symbols, concepts, and statistical procedures used in these studies.
2 Students and professional people may be called on to conduct research in their fields, since
statistical procedures are basic to research. To accomplish this, they must be able to organize,
analyze an summarize data, and possibly make reliable predictions or forecasts for future use.
3 Students and professional people can also use he knowledge gained from studying statistics
to become better consumers and citizens.
 variable - characteristics or attribute that can assume diff. values
 data - values (measurement or observations) that variable can assume
 random variables - values that are determined by chance
 data value/datum - collection of data values forms a data set. Each value in the data set
are called datum
 Descriptive statistics - consists of the collection, organization, summarization, and
presentation of data
 Inferential stats- consists of generalizing from samples to populations, performing
estimations, and hypothesis tests, determining relationships among variables, and
making predictions.
 population - consists of all subjects (human or otherwise) that are being studied.
 sample - a group of subjects selected from a population

VARIABLES AND TYPES OF DATA

 qualitative variables - can be placed into distinct categories, according to some
characteristics or attributes (gender, religious preferences, and geographic locations)
 quantitative variables - numerical and can be ordered or rank (age, heights, weights,
body temp)
TYPES OF QUANTITATIVE VARIABLES
 discrete variables - assume values that can be counted (no of students in a room, no. of
children, no. of calls)
 continuous var. - assume infinite number of values between any two specific values.
They are obtained by measuring.(include fractions and decimals)

Measurement scales - classification how variables are categorized, counted or measured

Four types of measurement scales
 nominal level of measurement - classifies data into mutually exclusive (non-overlapping),
exhausting categories in which no order or ranking can be imposed on the data. (zip
code, gender, eye color, political and religious affiliation, major field, nationality)
  ordinal - classifies data into categories that can be ranked, however precise differences
between the ranks do not exist (grade na ABCDE, judging na first place, rating scale na
poor excellent, ranking of tennis players)
 interval - ranks data and precise differences between units of measure do exist, however
there is no meaningful zero (SAT score, IQ, temperature)
 ratio - possesses all the characteristics of interval measurement, and there exists a
meaningful zero. In addition, true rations exists when the same variable is measured on
two different members of the population (height, weight, time, salary, age)

data collection - data can be collected in a variety of ways. One of the most common methods is
through the use of surveys. Surveys can be done by using a variety of methods. three of the
most common methods are telephone survey, the mailed questionnaire and personal interview.
 a telephone surveys have an advantage over personal interview surveys in that they are
less costly. Also, people may be more candid in their opinions since their is no face to
face contact. A major drawback to the telephone survey is that some people in the
population will not have phones or will not answer when the calls are made.; hence not
all people have a chance of being surveyed. Also, many people now have unlisted
numbers and cell phones, so they cannot be surveyed. Finally, even if the tone of the
voice of the interviewer might influence the response of the person who is being
interviewed.
 Mailed questionnaire surveys can be used to cover a wider geographic area than
telephone surveys or personal interviews since mailed questionnaires surveys are less
expensive to conduct. Also, respondents can remain anonymous if they desire.
Disadvantages of mailed questionnaire survey include a low number of responses and
inappropriate answers to questions. Another drawback is that some people may have
difficulty reading or understanding the questions.
 Personal interview surveys have the advantage of obtaining in depth-responses to
questions from the person being interviewed. One disadvantage is that interviewers
must be trained in asking questions and recording responses, which makes the personal
interview survey more costly than the other two survey methods. Another disadvantage
is that the interviewer may be biased in his or her selection of respondents.
FOUR BASIC METHODS OF SAMPLING
 random sampling - are selected by using chance methods or random numbers One such
method is to number each subject in the population.
 systematic sampling - use by numbering each subject of the population and then
selecting every nth subject
 stratified sampling - it is obtained by dividing the population into groups (called strata)
according to some characteristics that is important to the study, then sampling from each
group. Samples within the strata should be randomly selected.
 cluster sampling - the population is divided into group called clusters by some means
such as geographic area or schools in a large district, etc.

Observational and Experimental Studies

Observational Study - The researchers merely observes what is happening or what was
happened in the past and tries to draw conclusions based on this observations.
Experimental Study - The researchers manipulates one of the variables and tries to determine
how the manipulation influences other variables

Independent Variables
Independent variable in an experimental study is the one that is being manipulated by the
researcher. The independent variable is also called the explanatory variable or the outcome
variable.
Outcome Variable – is the variable that is studied to see if it has changed significantly due to the
manipulation of the independent variable.
Confounding Variable - Is one that influences the dependent or outcome variable but cannot be
separated from the independent variable.
Uses and Misuses of Statistics
Statistical techniques can be used to described data, compare two or more data sets, determine
if a relationship exists between variables, test hypothesis, and make estimates about population
characteristics. However, there is another aspect of statistics, and that is the misuse of
statistical techniques to sell products that don’t work properly, to attempt to prove something
true that is really not true, or to get our attention by using statistics to evoke fear, shock, and
outrage.

There are some ways that statistics can be misrepresented

- Suspect samples
- Ambiguous averages
- Changing the subject
- Detached statistics
- Implied connections
- Misleading graphs
- Faulty survey questions
-
Table has not the same impact as presenting numbers in a well drawn chart or graph
Statistics
 Gather data
 Analyze data
 Draw conclusions
 Summarize

Statistical charts and graphs (most useful method in presenting data)

histograms, frequency polygons, ogives, pie graphs, pareto chart, time series graphs, stem and
leaf plot, scatter plot
 frequency distribution - the most convenient method of organizing data
 raw data - when data are collected in original form.
  classes - each raw data value is placed into a quantitative or qualitative categories
 frequencies - the number of data values contained in a specific class

two types of frequency distribution

1. categorical frequency distribution - it is used for data that can be places in specific
categories, such as nominal or ordinal level data (for example, data such as political
affiliation, religious affiliation, or major filed of study would use categorical frequency
distributions)
2. grouped frequency distribution - when the range of data is large, the data must be
grouped into classes that are more than one unit in width
Rules to follow to construct grouped frequency distribution
1 there should be between 5 and 20 classes
2 it is preferable but not absolutely necessary that the class width be an odd number
3 the classes must be mutually exclusive
4 the classes must be continuous
5 the classes must be exhaustive
6 the classes must be equal in width (54 and above or below 110)

Histograms, Frequency Polygons, and Ogives

Purpose:
To convey the data to the viewers in pictorial form. It is easier for most people to comprehend
the meaning of the data presented graphically than data presented numerically in tables or
frequency distributions.
Use:
Statistical graphs can be used to describe the data set or to analyze it. Graphs are also useful in
getting the audience’s attention in a publication or a speaking presentation. They can
be used to discuss an issue, reinforce a critical point, or summarize a data set. They can also
be used to discover a trend or pattern in a situation over a period of time
The three most commonly used graphs: histogram, cumulative frequency graph, frequency
polygon
 histogram - a graph that displays the data by using contiguous vertical bars (unless the
frequency of a class is 0) of various heights to represent the frequencies of the classes
 frequency polygon - a graph that displays the data by using lines that connect points
plotted for the frequencies at the midpoints of the classes. The frequencies are
represented by the heights of the points
 ogive - the third type of graph that can be used to represent the cumulative frequencies
for the classes in a frequency distribution
  relative frequency - these distribution can be converted to distributions using proportions
instead of raw data as frequencies
 pareto chart - used to represent a frequency distribution for a categorical variable, and
the frequencies are displayed by the heights of vertical bars, which are arranged in order
from highest to lowest.
 pie chart - is a circle that is divided into sections or wedges according to the percentage
of frequencies in each category of the distribution
 stem and leaf plot - it is a data plot that uses part of the data values as the stem and part
of the data value as the leaf to form groups or classes
 scatter plot - a graph of order pairs of data values that is used to determine if a
relationship exists between two variables

Sample Spaces and Probability

Probability Experiment - is a chance process that leads to well defined results called outcomes
Outcome - is the result of a single trial of probability experiment
Tree diagram Is a device consisting of line segments emanating from starting point and also
from the outcome point. It is used to determine all possible outcomes of a probability
experiment.

Event
An event consists of a set of outcomes of a probability experiment

Three Basic Interpretation of Probability

 Classical Probability
 Empirical Probability or Relative Frequency Probability
 Subjective Probability

Classical Probability
Classical probability uses sample spaces to
determine the numerical probability that an
event will happen.
Classical probability is so named because it
was the first type of probability studied
formally by the mathematicians in the 17th
and 18th century.
Classical probability assumes that all
outcomes in the sample space are equally
likely to occur.

Four Basic Probability Rules

Probability Rule 1
The probability of any event E is a number (either a fraction or decimal) between
and including 0 and 1. This is denoted by 0 ≤ P(E) ≤ 1.
Probability Rule 2
If an event E cannot occur (i.e., the event contains no members in the sample
space), its probability is 0.

Complementary Events
The complement of an event E is the set of
outcomes in the sample space that are not
included in the outcomes of event E. The
complement of E is denoted by (read “E
bar”)

Empirical Probability
The difference between classical and
empirical is that classical probability
assumes that certain outcomes are equally
likely (such as the outcomes when a die is
rolled), while empirical probability relies on
actual experience to determine the
likelihood of outcomes.

The addition rule for Probability

Two events are mutually exclusive events if they cannot occur at the same time
Goods and Services - needs of people

Manufactured Goods
1 Consumer goods - purchased directly by the consumer or the general public
2 Producer goods - goods manufactured for other companies to use to manufacture either
producer or consumer goods

Roles of Engineers in Manufacturing

Design Engineers - should know that design is to accomplish, what assumptions can be made
about service environment the product must withstand, and what appearance the final product is
to have.
Manufacturing Engineers - select and coordinate specific processes and equipment to be used,
or supervise, and manage their use. Must have broad knowledge of manufacturing processes
and of material behavior so that desired operations can be done effectively and efficiently
without overloading or damaging machines and without adversely affecting the materials being
processed

Industrial engineers - design or layout factories have the same concerns of the interrelationship
of design, the properties of the materials that the machines are going to process, and the
interaction of the materials and the machines.
Materials Engineers - devote their major efforts to developing new and better materials.
Concerned with how these materials can be processed and with the effects that the processing
will have on the properties of the materials

Changing World Competition

In recent years, major changes in the world of goods manufacturing have taken place. Three of
these are:
1 Worldwide or global competition
2 Advanced technology
3 New manufacturing systems structure, strategies, and management

Manufacturing - the economic term for making goods and services available to satisfy human
wants; implies creating value by applying useful mental or physical labor.

production system
The highest ranking term in hierarchy is production system. Production system includes people,
money, equipment, materials, and supplies, markets, management and manufacturing system

manufacturing system
it is a collection of operations and processes used to obtain a desired products or components.
Manufacturing systems is therefore the design or arrangement of the manufacturing processes.
the entire manufacturing system must be controlled to control material movement, inventory
levels, product quality, output rates, and so on.

Job Shop- Characterized by large varieties of components, general-purpose machines, and a

functional layout
Machines are all collected by functions and the parts are routed around the shop containers to
the various machines
Lot - material in the cart or container
Flow Shops- Characterized by a larger build quantities, special purpose machines, less variety,
and more mechanization
Flow shop layouts are typically either continuous or interrupted
If continuous - they basically run one large-volume complex product in great quantity and
nothing else
If interrupted - the line manufactures large quantities but it is periodically changed over to run a
similar but different component

Linked-Cell
Composed of manufacturing cells connected together (linked) using a unique form of inventory
and information control (Kanban)
Project shop - characterized by the immobility of the item being manufactured; it is necessary
that the workers, machines, and materials comes to the site; the number of end items is not very
large, and therefore the lot sizes of the components going into the end item are not large.

Manufacturing processes converts unfinished materials to finished products often using a

machine tool

Machine tool - is an assembly of related mechanisms on frame or bed that together produce a
desired result.
Note: a machine tool may do a single manufacturing process or multiple processes or it may
manufacture an entire component

Job - is the total of the work or duties a worker performs

Station - is the work area of a production line worker
Note: Numerical control - the NC machine takes the programmed position from a part of a
program tape - any difference between the commanded position and the feedback signal MCU
to run the drive motor in the proper direction to cancel any errors.

Operation is a distinct action performed to produce a desired result or effect. Typical machine
operations are loading and unloading.
Operations recognized as function are:
1 materials handling and transporting: change in position of the product
2 processing: change in volume and quality, including assembly and disassembly; packaging
3 packaging: special processing; maybe temporary or permanent for shipping
4 inspecting and testing: comparison to the standard or check process behavior
5 storing: time lapses without further operations

METALS
Production procedure
Heat treatment for altering properties of materials and application of materials
Structure, properties, and application of ferrous materials like ceramic, polymers (plastics),
composites, plastic, graphite, and diamonds

products used in our day to day lives are made of one or more materials
- variations in the sizes and positions of the atom

Metal classification
- All metals may be classified as ferrous or nonferrous. A ferrous metal has iron as its main
element. A metal is still considered ferrous eve if it contains less than 50 percent iron, as long
as it contains more iron than any other one metal. A metal is nonferrous if it contains less iron
than any other metal.

Ferrous metals include cast iron, steel, and various steel alloys. The only difference between
iron and steel is the carbon content. Cast iron contains more than 2 percent carbon while steel
contains less than 2 percent.

Alloy is a substance composed of two or more elements. Therefore, all steels are an alloy of
carbon and iron, but the term 'alloy steel' normally refers to a steel that also contains one or
more elements.
For example, if the main alloying element is tungsten, the steel is a tungsten steel or tungsten
alloy. If there is no alloying materials, its carbon steel.

Cast iron is the metal that is widely used. Hard brittle metal that has good wear resistance. Cast
iron contains 2 to 4 percent of carbon. White cast iron is very hard and is used mostly where
abrasion and wear resistance is required. White cast iron maybe made into malleable iron by
heating it then cooling it slowly over a long period of time.
-Malleable iron is stronger and tougher than white cast iron, more expensive
-Gray iron is another form of cast iron. It is mostly used for castings because of its ability to flow
easily into complex shapes.

Wrought iron
-has had most of its carbon removed. It is tough; however, it can be bent or twisted very easily.
Wrought iron is used mostly in ornamental ironwork, such as fences and handrails, because it is
welded or painted easily and rusts very slowly.

Steel
-is an alloy of iron and carbon or other alloying elements. When the alloying elements is carbon,
the steel is referred to as carbon steel. Carbon steels are classified by the percentage or carbon
in 'points' or hundredths of 1 percent they contain.

Low Carbon Steel (carbon content up to 0.30 percent or 30 points)

-This steel is soft, ductile and can be rolled, punched, sheared, and worked either hot or cold. It
is easily machined and can be readily welded by all methods. It does not harden to any great
amount, however, it can be easily case- or surface-hardened.
Medium carbon steel (.30to .50 percent or 30 to 50 points)
-This steel may be heat-treated after fabrication. It is used for general machining and forging of
parts that required surface hardness and strength. It is made in bar form in the cold-rolled or the
normalized and annealed condition. During welding, the weld zone will become hardened if
cooled rapidly and must be stress-relieved after welding.
High carbon Steel (.50 to 1.05% or 50 to 105 points)
-This steel is used in the manufacture of dills, taps, dies, springs, and other machine tools and
hand tools that are heat treated after fabrication t develop the hard structure necessary to
withstand high shear stress and wear. It is manufacture in bar, sheet, and wire forms, and in the
annealed or normalized condition in order to suitable for machining before heat treatment. This
steel is difficult to weld because of the hardening effect of heat at the welding joint.

Tool steel (.90 to 1.70 percent or 90 to 170 points)

- This steel is used in the manufacture of chisels, shear blades, cutters, large taps, woodturning
tools, blacksmith's tools, razors, and other similar parts where high hardness is required to
maintain a sharp cutting edge. It is difficult to weld due to the high carbon content.

High speed steel

-It is a self-hardening steel alloy that can withstand high temperatures without becoming soft.
High speed steel is ideal for cutting tools because of its ability to take deeper cuts at higher
speeds than tools made from carbon steel.
Tungsten Carbide
-hardest man made metal. It is almost as hard as a diamond. The metal is molded from
tungsten and carbon powders under heat and pressure. Tools made from this metal can cut
other metals may times faster than high speed steel tools.

Nonferrous Metals
-There are many metals that do not have iron as their base metal. these metals offer specific
properties or combination of properties that make them ideal for tasks where ferrous metals are
not suitable. They are often used with iron base metals in the finished products.

Aluminum
-And its alloys are produced and used in many shapes and forms The common forms are
castings, sheet , plate, bar, rod, channels, and forgings. Aluminum alloys have many desirable
qualities. They are lighter than most other metals and and do not rust or corrode under most
conditions. Aluminum can be cast-forged, machined, and welded easily.
Almost 80% of airplanes is aluminum

magnesium
-Are produced and used in many shapes and forms for example, casting, bards, rods, tubing,
sheets, and plates, and forgings. Their inherent strength, light weight, and shock and vibration
resistance are factors which make use advantageous Magnesium has excellent machining
qualities; however care must be taken when machining because the chips are highly flammable.
Magnesium fires bum so hot that they cannot be extinguished by conventional fire
extinguishers.

Copper
-is a reddish metal, very ductile and malleable, and has high electrical and heat conductivity.
Copper can be forger, cast, and cold worked. It also can be welded, but is machinability is only
fair. The principal use of commercially pure copper is in the electrical industry where it is made
into wire or other such conductors. It is also used in the manufacture of nonferrous alloys such
as brass, bronze, and monel metal.
-Typical copper products are sheet roofing, cartridge cases, bushings, wire, bearings, and
statues.
(ex. coins, utensils, electronic products)

Brass
Brass, an alloy of copper and zinc (60 to 68 percent copper and 32 to 40 percent
zinc), has a low melting point and high heat conductivity. There are several types of brass such
as naval, red, admiralty, yellow, and commercial. All differ in copper and zinc content. All may
be alloyed with other elements such as lead, tin, manganese, or iron, and all have good
machinability and can be welded.

Bronze
Bronze is an alloy of copper and tin and may contain lead, zinc, nickel, manganese, or
phosphorous. It has high strength, is rust or corrosion resistant, has good machinability, and can
be welded.

Lead
-mainly used in the manufacture of electrical equipment such as lead-coated power and
telephone cables and storage batteries. Zinc alloys are used int he manufacture of lead weights,
bearings, gasket, seals, bullets, and shot. Many types of chemical compounds are produced
from lead. Among these are lead carbonate (paint pigment), tetraethyl lead (antiknock gasoline).
Lead is also used for X-ray protection (radiation shields). Lead has more fields of application
than any other metal. It can be cast, cold worked, welded, and machined. Lead has low strength
with heavy weight

Tin
-major used of tin is in coating steel. It is the best container for preserving perishable food. Tin,
in the form of foil, is often used in wrapping food products. A second major use of tin is as an
alloying element. Tin is alloyed with copper to produce bronze, with lead to produce solder, and
with antimony and lead to form babbitt. Tin can be die cast, cold worked, machined, and
soldered; however, it cannot be welded.
Isaac Babbitt - 1839

Nickel
-is used in making alloys of both ferrous and nonferrous metals. Chemical and food processing
equipment, electrical resistance heating elements, ornamental trim, and parts that must
withstand elevated temperatures are all produced from nickel containing metal. Alloyed with
chromium, it is used to make stainless steel. Nickel alloys are readily welded by either gas or
arc methods and can be machined, forged, cast, and easily formed.

HEAT TREATMENT OF METALS

HEATING - Heating is the first step in a heat-treating process. Many alloys change structure
when they are heated to specific temperatures. The structure of an alloy at room temperature
can be either a mechanical mixture, a solid solution, or a combination solid solution and
mechanical mixture.
SOAKING - Once a metal part has been heated to the temperature at which desired changes in
its structure will take place, it must remain at that temperature until the entire part has been
evenly heated throughout. This is known as soaking. The more mass the part has, the longer it
must be soaked.
COOLING - After the part has been properly soaked, the third step is to cool it. Here again, the
structure may change from one chemical composition to another, it may stay the same, or it
may revert to its original form

Heat Treatment for Ferrous Metals

 HARDENING - A ferrous metal is normally hardened by heating the metal to the required
temperature and then cooling it rapidly by plunging the hot metal into a quenching
medium, such as oil, water, or brine. Most steels must be cooled rapidly to harden them.
The hardening process increases the hardness and strength of metal, but also increases
its brittleness.
 TEMPERING - Steel is usually harder than necessary and too brittle for practical use
after being hardened. Severe internal stresses are set up during the rapid cooling of the
metal. Steel is tempered after being hardened to relieve the internal stresses and reduce
its brittleness. Tempering consists of heating the metal to a specified temperature and
then permitting the metal to cool. The rate of cooling usually has no effect on the metal
structure during tempering.
 ANNEALING - Metals are annealed to relieve internal stresses, soften them, make them
more ductile, and refine their grain structures. Metal is annealed by heating it to a
prescribed temperature, holding it at that temperature for the required time, and then
cooling it back to room temperature. The rate at which metal is cooled from the
annealing temperature varies greatly. Steel must be cooled very slowly to produce
maximum softness.
 NORMALIZING - Ferrous metals are normalized to relieve the internal stresses
produced by machining, forging, or welding. Normalized steels are harder and stronger
than annealed steels. Steel is much tougher in the normalized condition than in any
other condition. Parts that will be subjected to impact and parts that require maximum
toughness and resistance to external stresses are usually normalized. Normalizing prior
to hardening is beneficial in obtaining the desired hardness, provided the hardening
operation is performed correctly.
 CASE HARDENING - Case hardening is an ideal heat treatment for parts which require
a wear-resistant surface and a tough core, such as gears, cams, cylinder sleeves, and
so forth. The most common case-hardening processes are carburizing and nitriding.
During the case-hardening process, a low-carbon steel (either straight carbon steel or
low-carbon alloy steel) is heated to a specific temperature in the presence of a material
(solid, liquid, or gas) which decomposes and deposits more carbon into the surface of a
steel. Then, when the part is cooled rapidly, the outer surface or case becomes hard,
leaving the, inside of the piece soft but very tough.

Heat Treatment for NONFerrous Metals

 ANNEALING - Most nonferrous metals can be annealed. The annealing process
consists of heating the metal to a specific temperature, soaking, and cooling to room
temperature. The temperature and method of cooling depend on the type of metal.
 Annealing is often accomplished after various cold working operations because many
nonferrous metals become hard and brittle after cold working. Also, annealing is used to
remove the effects of solution heat treatment so that machining or working qualities can
be improved.
 SOLUTION HEAT TREATMENT - The tensile strength of many nonferrous alloys can be
increased by causing the materials within the alloy to go into a solid solution and then
controlling the rate and extent of return to an altered mechanical mixture.

Functions of Engineering Encompass the ff. Areas:

1 Research - where the engineer is engaged in the process of learning about nature and
codifying this knowledge
2 Design and development -the engineer undertakes the activity of turning a product concept to
a finished physical item
3 Testing - where the engineer works in a unit where new products or parts are tested for
workability
reliability = quality
clean room = bunny suit
4 Manufacturing - where the engineer is directly in charge of production personnel or assumes
responsibility of the product
5 Construction - this is where the construction engineer is either directly in charge of the
construction personnel or may have responsibility for the
6 Sales - where the engineer assists the company's customers to meet their needs, especially
those that require technical expertise
7 Consulting - where the engineer works as consultant of any individual or organization
requiring his services
8 Government - the engineer may find employment in the government performing any of the
various tasks in regulating, monitoring, and controlling the activities of various institutions
9 Teaching - where the engineer gets employment in a school and is assigned as a teacher of
engineering courses. Some of them later became deans, vice presidents, and presidents

The engineer in various types of organization

Level 1 - those with minimal engineering jobs like retailing firms
Level 2 - those with moderate degree of engineering jobs like transportation companies
Level 3 – those with a high degree of engineering jobs like construction firms

Engineering Management - refers to the activity combining 'technical knowledge with the ability
to organize and coordinate worker power, materials, machinery, and money'.
Management may be defined as the 'creative problem-solving process of planning, organizing,
leading, and controlling an organization’s resources to achieve its mission and objectives'.
Kreitner indicates at least three general preconditions for achieving lasting success as a
manager. They are as follows:
1 Ability
2 Motivation to manage
3 Opportunity
John B. Miner developed a psychometric instrument to measure objectively an individual’s
motivation to manage. The test is anchored on:

Planning, according to Nickels and others, refers to the management function that involves
anticipating future trends
Aldag and Stearns, the selection and sequential ordering of tasks required to achieve an
organizational goal
Cole and Hamilton, deciding what will be done, who will do it
Planning at various management levels
 top management level - strategic planning
 middle management level – intermediate planning
 lower management level – operational planning
intermediate planning - process of determining the contributions that submits can make with
allocated resources
operational planning - refers to the process of determining how specific tasks can be best
accomplished on time with available resources

planning process
1 setting organizational, divisional or unit goals
where
 goal - precise statement of results sought
 strategy - a course of action aimed at ensuring that the organization will achieve its
objectives
 tactics - short term action
2 developing strategies or tactics to reach those goals
3 determining resources needed
4 setting standards

types of plans may be classified in functional areas, time horizon, and frequency of use

functional areas plans

1 marketing plan - this is the written document or blueprint for implementing and controlling an
organizations marketing activities related to a particular marketing strategy
2 production plan - this is a written document that states the quantity o9f output a company must
produce in broad terms and by product family
3 financial plan - it is a document that summarizes the current financial situation of the firm,
analyzes financial needs and recommends a direction for financial activities
4 human resource management plan - it is a document that indicates the human resource

plans with time horizons

1 short range plans - less than one year
2 long range plans - more than one year

Plans according to frequency of use: standing plans and sing-use plans

STANDING PLANS - THESE ARE PLANS THAT ARE USED AGAIN. It may be further
classified as follows:
Policies – they are broad guidelines to aid managers at every level in making decisions about
recurring situations or function
Procedure - they are plans that describe the exact series of actions to be taken in a given
situation
Rules – they are statements that either require or forbid a certain action
single use plans - relatively unique and unlikely to be repeated. It may be further classified as
follows:
Budgets – according to Weston and Brigham, is a plan which sets forth the projected
expenditure for a certain activity and explains where the required funds will come from
Programs – designed to coordinate a large set of activities
Projects – usually more limited in scope than a program and Is sometimes prepared to support
a program.

contents of marketing plan - executive summary (which presents an overall view of the
marketing project and its potential), table of contents, situational analysis and target market,
marketing objectives and goals,
contents of the production plan - the amount of capacity the company must have, employees
required, the materials that must be purchased
contents of financial plan - analysis of the firm's current financial condition as indicated by an
analysis of the most recent statements, a sales forecast
human resource plan - personnel requirements of the company, training plan, plans for
recruitment and selection, retirement plan
parts of the strategic plan - company or corporate mission, objectives or goals, strategies
Company or corporate mission refers to the strategic statement that identifies why an
organization exists, its philosophy of management, and its purpose as distinguished from other
similar organizations in terms of products, services, and markets.
. Can the engineer manager avoid making management decision? Why or why not?
No. The engineer manager cannot simply avoid making management decision because
decision-making is one of his core responsibilities. Additionally, the engineer manager's
decision-making skills are also very crucial to his success as a professional, and a major blunder
in decision-making may be sufficient to cause the destruction of any organization.

2. When a problem becomes apparent and the engineer manager chooses to ignore it, is he
making a decision? Explain your answer.
If a problem becomes apparent and the engineer manager chooses to ignore it, he is
already making a decision to ignore the problem.
However, this can be an issue because an engineer manager who cannot perform his
responsibilities properly is dangerous to the organization and should be removed from their
position immediately. As an engineer manager, it is one's responsibility to choose a decision
option as correctly as possible because the outcome would eventually depend on their capability
to weigh out their options.

3. Why is proper diagnosis of the problem important?

If a manager wants to make an intelligent decision, his first move must be to identify the
problem. If the manager fails in this aspect, it is almost impossible to succeed in the subsequent
steps.
Therefore, proper diagnosis is important because as an expert once puts it, "identification
of the problem is tantamount to having the problem half-solved".

4. What are the components of the environment from the point of view of the decision-maker?
What do they consist of?
The environment consists of two major concerns which include an internal and external
environment. The internal environment refers to the organizational activities within a firm that
surrounds decision-making, it has different aspects which include organizational (e.g.
organizational structure, policies, procedures, rules, ability of management, etc.), marketing (e.g.
product strategy, promotion strategy, etc.), personnel (e.g. recruitment practices, incentive
systems, etc.), production (e.g. plant facility layout, inventory control, etc.), and financial aspects
(e.g. liquidity, profitability, etc.).
 On the other hand, external environment refers to variables that are outside the
organization and not typically within the short-run control of top management. This include the
government, engineers, labor unions, clients, suppliers, competitors, banks, and the public.

5. How may one develop viable alternatives in problem solving?

Oftentimes, problems may be solved by any of the solutions offered. The best among the
alternative solutions must be considered by management. This is made possible by using a
procedure with the following steps:
1. Prepare a list of alternative solutions
2. Determine the viability of each solutions.
3. Revise the list by striking out those which are not viable.

6. How may alternative solutions be evaluated?

After determining the viability of the alternatives and a revised list has been made, an
evaluation of the remaining alternatives is necessary. This is important because the next step
involves making a choice. Proper evaluation makes choosing the right solution less difficult.
How the alternatives will be evaluated will depend on the nature of the problem, the
objectives of the firm, and the nature of the alternatives presented. Souder suggests that 'each
alternative must be analyzed and evaluated in terms of its value, cost, and risk characteristics'.

 The value of the alternatives refers to the benefits that can be expected.
 The cost of alternatives refers to out-of-pocket costs, opportunity costs, and
follow-on costs.
 The risk characteristics refer to the likelihood of achieving the goals of the
alternatives.

7. Why is it important for those who will be involved in implementation to understand and
accept the solution to the problem?
Understanding and accepting the solution to the problem by those who are involved in the
implementation of the decision is essential because it is through the implementation that the
decision would be carried out which could either greatly or badly affect the results. Therefore, to
achieve the objectives, the decision must be implemented properly.
Additionally, in implementing the decision, the results expected or may or may not
happen. It is, therefore, important for the manager to use control and feedback mechanisms to
ensure results and to provide information for future decisions.
8. What are the approaches in solving problems?
In decision-making, the engineer manager is faced with problems which may either be
simple or complex. To provide him with some guide, he must be familiar with the approaches
called qualitative evaluation and quantitative evaluation.
Qualitative evaluation refers to the evaluation of alternatives using intuition and
subjective judgement. Stevenson states that managers tend to use the qualitative approach when:
1. The problem is fairly simple.
2. The problem is familiar.
3. The costs involved are not great.
4. Immediate decisions are needed.
On the other hand, quantitative evaluation refers to the evaluation of alternatives using
any technique in a group classifies as rational and analytical.

9. What quantitative techniques are useful in decision-making?

The types of quantitative techniques which may be useful in decision-making are as
follows:

 Inventory models - consists of several types all designed to help the engineer manager
make decisions regarding inventory.
 Queuing theory - describes how to determine the number of service units that will
minimize both customer waiting time and cost of service.
 Network models - these are models where large complex tasks are broker into smaller
segments that can be managed independently.
 Forecasting - may be defined as the "collection of past and current information to make
predictions about the future".
 Regression analysis - is a forecasting method that examines the association between two
or more variables.
 Simulation - a model constructed to represent reality, on which conclusions about real-
life problems can be used.
 Linear programming - used to produce an optimum solution within the bounds imposed
by constraints upon the decision.
 Sampling theory - technique where samples f populations are statistically determined to
be used for a number of processes, such as quality control and marketing research.
  Statistical decision theory - refers to the "rational way to conceptualize, analyze, and
solve problems in situations involving limited, or partial information about the decision
environment".

10. What is the purpose of Bayesian analysis?

The purpose of Bayesian analysis is to revise and update the initial assessments of the
event probabilities generated by the alternative solutions which is achieved by the use of
additional information.