Engineering Management EMGMT

EMGMT - Module 3 UC CEA

Managing Engineering Technology

Managing Engineering
and Technology

Planning Organizing Leading Controlling

Decision
Making
Managing
Engineering
Technology
Planning

This gives purpose and

direction to what he must
write. It involves thinking
ahead of what one has to
do. When to do it, how to
do it and who is to do it.
Engineers and Managers
need write down their
plans clearly and
communicate them clearly.
 Planning – a process

Planning is a deliberate mental process. It always presumes a change

or expectation of change. Change is introduced by the organization
and affects the activities within it.

Evolutionary – a slow process allowed by the

organization
Changes may be classified as: Deliberate – a well thought out decision
requiring specific courses of action
 Change in Management Structure
Change in (mergers/downsizing)

Changes that
Change in Customer Requirements –
require Change in changes in company’s products and services

Planning
Change in Internal Corporate Activity –
Change in changes from external activity.
 Mission and Vision

Stages of Strategic Planning

Planning Strategy Formulation

SWOT Analysis, PEST Analysis and Porter’s

Five Forces Model

Leadership Models
 Vision Statement – describes in graphic terms where you want to be
positioned in the future

E.g. Eastman Chemical Company

Vision
“To Be The Worlds Preferred Chemical Company “

Source: http://www.eastman.com 9/07/05

 Mission Statement – sets forth what the company is attempting to do and is
usually what the public sees. It is more of immediate business focus with a
time horizon

E.g. – Microsoft

Mission
“At Microsoft , we work to help people and the business throughout the
world realize their full potential. This is our mission. Everything we do
reflects the mission and values that make it possible.”

Source: http://www.microsoft.com 9/07/05

Stages of Strategic Planning

Strategy Formulation
SWOT Analysis, PEST Analysis and
Porter’s Five Forces Model
Leadership Models
 Art of War –
• The Art of War, an influential document written by the
ancient Chinese military strategist Sunzi (also known as
Sun-Tzu), is one of the first known treatise
on warfare strategy in history. This guide features
information about various battle maneuvers and tactics,
as well as strategic advice on collecting information
about the enemy’s location and battlefield terrain
before attacking.
• It is hard to know exactly when The Art of War was
written, but most scholars think it was written between
475 and 221 B.C.E., during the Warring States period.
The Art of War has many specific battle strategies and
advisements. It stresses preparation for battle above
all, including planning around climate and battle terrain,
studying the enemy’s movements and weaknesses, and
proper training of soldiers. At the same time, it also
recommends being flexible, because the battlefield is so
unpredictable. It discourages generals from engaging
in siege warfare, because it extends the conflict and
wastes resources. And generals should treat captured
troops and defeated soldiers respectfully.
• The Art of War has remained relevant over the years
because it is about strategy and tactics rather than
specific warfare technology. It has influenced leaders all
over the world, not only in warfare but in many areas of
life, including business.
Art of War - importance
of planning

1. Never Lead by Force

2. Know the Competition

3. Doing Nothing Is Better Than

Acting Out Of Fear
4. Always Plan Ahead

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Art of War - importance of planning

Refrain Refrain from Decision-Making When Angry

Study Study the Competition

Use Use Your Team Wisely

Act Act Like A Leader

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Art of War - importance of planning

Trust Trust Yourself

Think Think Strategically

Know Know Yourself

Think Think Diplomatically

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Art of War - importance of planning

Never Lose Never Lose Sight of The Goal

Have Have A Plan

Know Know When to Quit

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Strategic Planning
Vision/Mission Aligned toward meeting Customer
expectations within framework of organization’s
philosophy

SWOT Analysis Gap

Forecasting
Analysis

On- going strategic Goals

Objectives/Strategies Managing
Engineering
Technology
Planning Level

• Top Management – strategic Planning

• Middle Management – intermediate Planning

• Lower Management – operational Planning

Planning Level CEO
Planning Horizon
President
Top Management Vice Presidents
General Manager Strategic Planning 1-10 years
Directors
Division Heads

Middle Functional Managers

Management Product line Managers Intermediate Planning 6 Months
Department Heads to 2 years

Operational Planning
Line Managers 1 week to 1 year
Lower
Management First Line Supervisors
Organizational Level Example of a Goal

To attain a return of investment

COMPANY of 30%
Cordillera
Construction
Corporation
To Increase the number of
DIVISION construction projects undertaken
by the company
Project Management
Division

UNIT To Increase the number of

project engineers
Personnel Services Division
 Functional Area Plan

Types of Plans
Plans with Horizon

Plans according to frequency of use

 • Functional Area Plan
1. Marketing Plan

Types of Plans 2. Production Plan

– by Area
3. Financial Plan

4. Human Resource Management Plan

Types of Plans -
horizons
Plans with Horizon
1. Short Term - Less than 1
year plans – First Line
supervisors

2. Long Range Plans – more

than 1 year plans – done by
middle and top managers
 Plans according to frequency of use

Policies

Types of Plans 1. Standing Plans Procedures

Rules

Budget
2. Single use Plans Projects
Programs
 Types of
Plans

Plans with time Plans with varied

Functional Area Plan
horizon frequency of use

Marketing Plan Short Range Plan

Standing Plan Single use Plan

Production Plan Long Range Plan

Budget
Financial Plan
Program
Human Resource Plan Policies Procedures Rules

Project
1. Strategy – course of action aimed at ensuring Strategy
that the organization will meet its objectives.
Examples - Diversification of businesses and Formulation –
re-focusing on core products only
Planning
• 2. Tactic – is a short term action to adjust to
negative internal or external influences
• Hiring of contractual workers to augment Strategy
current workers.
• Alternative venue in case of bad weather
Formulation –
Planning
 SWOT
• SWOT Analysis Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
SWOT Analysis

Weaknesses Opportunities

Strengths Threats

organization
 PEST Analysis

• PEST Analysis (Impact)

• Political
• Environmental
• Social
• Technological
PEST Analysis

Environmental Social

Political Technological

organization
• Porter’s Five Forces Model- Analyzing a
company’s competitive environment models
• Rivalry among new entrants
• Rivalry among existing competition
• Bargaining Power of suppliers
• Bargaining Power of buyers
• Threats of substitutes
Porter’s Five Forces Model
Bargaining
Power of
Rivalry suppliers
among new Bargaining
entrants Power of
suppliers

Rivalry
among organization Threats of
existing substitutes
competition
Strategy Formulation – Planning – Individual
Activity
1. Decision to be implemented
2. Output Description
3. Other Objectives
4. Strategies and tactics
 Types of
Plans

Plans with time Plans with varied

Functional Area Plan
horizon frequency of use

Marketing Plan Short Range Plan

Standing Plan Single use Plan

Production Plan Long Range Plan

Budget
Financial Plan

Program
Human Resource Plan Policies Procedures Rules

Project
 Functional Area Plan
1. Marketing Plan

Types of Plans 2. Production Plan

– by Area
3. Financial Plan

4. Human Resource Management Plan

 1. Executive Summary
2. Table of Contents
3. Situational Analysis and market Value
Marketing
Plan 4. Marketing objectives and Goals
Components 5. Marketing Strategies
6. Marketing Tactics
7. Schedule and Budgets
8. Financial Data and control
 1. The amount of capacity the
company must have

Production
2. How Many employees are
Plan
required

3. How much material must be

purchased
Financial Plan
1. Analysis of the firm’s current financial
condition as indicated by an analysis of
the most recent documents.
2. A sales forecast
3. The Capital Budget
4. The Cash budget
5. A set of pro forma (or projected)
financial statements
6. The external financing plan
Human Resources Plan

1. Personnel requirements of the

company
2. Plans for recruitment and
selection
3. Training Plan
4. Retirement Plan
Effective Planning

A. Recognize the barriers to planning (7)

B. Useful Aids to Planning (3)

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 Effective Planning

A. Recognize Barriers to Planning

1. Manager’s inability to plan
2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of the
future
6. Too much reliance on the planning department
7. Concentrating only on the controllable variables
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Effective Planning

B. Useful Aids to Planning

1. Gather as much information as possible
2. Develop multiple sources of information
3. Involve others in the planning process

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Problem Solving Tools for Managers – involving
others

• Problem Identification
• Brainstorming
• Investigation
• Statistical Data Analysis
• Fishbone Diagram (Ishikawa Diagram)
• Plan – Do – Check – Act Cycle
Leadership Models – Products of Education
• “What is the ideal product? The ideal product is the
student, the university graduate, who is strong, robust,
rugged, with tremendous qualities of stamina, endurance
and at the same time, with great intellectual discipline
and, most important of all, humility and love for his
community; a readiness to serve whether God or king or
country or, if you like, just his community.”

• New Bearings in Our Education System — , by Mr Lee

Kuan Yew, on August 29, 1966.
References/videos
Leaders –
https://www.youtube.com/watch?v=_KrKdj50mPk
https://www.youtube.com/watch?v=sqiQSw4VLIk
https://www.youtube.com/watch?v=HSbf14vR3TA
https://www.youtube.com/watch?v=_vN1-iBQquM
https://www.youtube.com/watch?v=Wj7Q4_Oabuc
https://www.youtube.com/watch?v=fvTSkS6AhCk
https://www.youtube.com/watch?v=ihiE4oGyYlQ

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References/videos
Art of War
• https://www.youtube.com/watch?v=lQe-bL0S2_k
• https://www.youtube.com/watch?v=Hz4FNBj1APA
• https://www.youtube.com/watch?v=GuX8DjyjvZg

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