ENGG MGNT LectureS DR Manish Vishwakarma

Engineering Management
Lecture By
Prof. Dr. Manish Vishwakarma
Email: manishvishwakarma@manit.ac.in
Department of Mechanical Engineering
MANIT, Bhopal, (M.P)
LECTURE BY DR MANISH VISHWAKARMA
Management is -
 Getting things done through/with the people.
 The process of achieving organizational goals by engaging in the four

major functions of planning & decision-making, organizing & staffing,
directing/leading, and controlling.
 Identifying a “force”/group of people whose job is to direct the effort

and activities of other people towards a common organizational
objective.
 The performance of conceiving and achieving desired results by means

of group effort consisting of utilizing optimum resources, that will
determine the success and failure of an organization.

Management is -
Chinese proverb -
 “If you are planning for one year – plant rice.
 If you are planning for ten years – plant trees.
 But if you are planning for 100 years – plant
people!”

Engineering Management is…
 The process of designing and maintaining an skilled
(Engineering) environment in which, individuals,
working together in groups, efficiently accomplish
organizational goals/objectives.
 Engg. Management applies to the industrial
organizations.(Manufacturing, chemical plant,
contsruction, mining etc)
 Managing the parameters concerned with
productivity, where it implies - effectiveness and
efficiency.

What Is Engineering Management?
EM is the processing of activities efficiently and effectively, by
the usage of optimum resources with the help of MAN &
MACHINES.
 Doing the job/work efficiently means “doing things right” so that
the organization’s resources—its people, money, and equipment—
are used to their maximum.
 Getting things done effectively means “doing the right things,” that
is, tasks that help an organization reach its goals.

The difference between efficient and effectiveness
The difference
between efficient and
effective is that
 efficiency means performing

the task with minimal
effort/cost,
whereas
effectiveness refers to how

useful the task/cost it is.
The difference between efficient and effective
 For example, if a company is not doing

well and they decide to train their
workforce /employees on a new
technology.
 The training goes really well - they train
all their employees in record time and
tests show they have absorbed the
training well.
 But overall productivity doesn't
improve. In this case the company's
strategy was efficient but not effective.
How Effectiveness & Efficiency relate to Productivity?
Productivity is doing the right things

(effectiveness) in the right way
(efficiency).
 Once you ensure employees are being effective
and efficient, you will see a rise in
productivity.
 You should start measuring this productivity
on a daily, weekly and monthly basis by
observing units produced, sales or customer-
satisfaction surveys.

Principles And Functions of
Management

How Managers are different from
Non-managerial Employees?
 Managers
- A manager is someone who coordinates and look after
the work of other people.
- They try to achieve the targeted organizational goals.
- However, managers may have additional assigned duties
other than coordinating the work
 Non-managerial Employees
 People who work directly on a job or task and have no
responsibility for overseeing the work of others.
 Examples: Associates and Team Members, labourers.

What do Managers do?
 Organization
 A planned/deliberate arrangement of people brought together to
accomplish a specific purpose.
 Common Characteristics of Organizations -
 Goals
 People
 Structure

What Titles Do Management Have?
 Top Managers
 Make decisions about the direction of the organization
 Examples: President, Chief Executive Officer, Vice-
President
 Middle Managers
 Manage the activities of other managers
 Examples: District Manager, Division Manager
 First-line Managers
 Direct non-managerial employees
 Examples: Supervisor, Team Leader

LECTURE BY DR MANISH
VISHWAKARMA
What Do Managers Do: Fayol’s Approach
In the functional approach
proposed by the French
industrialist Henri Fayol, all
managers perform four
management activities or
functions.

Four Management Functions
 Planning
 Defining the organizational purpose and ways to achieve
it.
 Organizing
 Arranging and structuring work to accomplish
organizational goals
 Leading
 Directing the work activities of others.
 Controlling
 Monitoring, comparing, and correcting work
performance.

Planning
 It is the basic function of management
which is chalking out a future actions.
 Planning in advance the most

appropriate course of actions for
achievement of goals.
 According to Koontz,
“Planning is deciding in advance - what

to do, when to do & how to do.
 It bridges the gap from where we are &

where we want to be”.BY DR MANISH VISHWAKARMA
LECTURE
Organizing
 It is the combining of physical, financial, human resources and
developing productive relationship to achieve the goals.
 According to Henry Fayol, “To organize a business is to provide it
with everything useful for its functioning i.e. raw material, tools,
capital and personnel’s”.
 To organize a business involves determining, providing human and
non-human resources to the organizational structure.
Organizing as a process involves:
 Identification of activities.
 Classification of grouping of activities.
 Assignment of duties.
 Delegation of authority
 Creation of responsibility.

Organizing

Staffing
 Staffing is the recruiting the

employees by evaluating their skills and
knowledge before offering them specific
job roles accordingly.
 A staffing is based on the measure of

work activities, how many
manpower/labor hours are needed, and
how employee time is spent on the work
allocated.

Staffing

Directing
 Direction is that inert-personnel aspect of management which

deals directly with influencing, guiding, supervising,
motivating sub-ordinate for the achievement of organizational
goals.
Direction has following elements:

 Supervision
 Motivation
 Leadership
 Communication
Directing
 Supervision- implies overseeing the work of
subordinates by their superiors. It is the act of
watching & directing work & workers.
 Motivation- means inspiring, stimulating or
encouraging the sub-ordinates with zeal to work.
Positive, negative, monetary, non-monetary
incentives may be used for this purpose.
 Leadership- may be defined as a process by
which manager guides and influences the work
of subordinates in desired direction.
 Communications- is the process of passing
information, experience, opinion etc from one
person to another. It is a bridge of
understanding.

Benefits of Directing

Controlling
 It is the measurement of accomplishment of goals against the
standards and correction of deviation (if any) to ensure
achievement of organizational goals.
 The purpose of controlling is to ensure that everything occurs in

conformities with the standards.
 An efficient system of control helps to predict deviations before

they actually occur.
 According to Theo Haimann, “Controlling is the process of

checking whether or not proper progress is being made towards
the objectives and goals and acting if necessary, to correct any
deviation”. LECTURE BY DR MANISH VISHWAKARMA
Controlling

Controlling

What Do Managers Do: Mintzberg’s Approach
Mintzberg’s roles give additional insight into managers’ work.
Some of the 10 roles do not fall clearly into one of the 4 functions, since
all managers do some work that is not purely managerial.
A number of varied, un-patterned, and short-duration activities.
As a result, Mintzberg defined manager’s job by categorizing roles that

managers play, organized into the following three general categories:
1. Interpersonal Roles
2. Informational Roles
3. Decisional Roles
Mintzberg’s Managerial Roles
1. Interpersonal Roles involving subordinates and
people outside the organization in the roles of
figurehead, leader, and liaisoning personnel.
2. Informational Roles that involves collecting,

receiving, and disseminating information in the roles of
monitor, disseminator, and spokesperson.
3. Decisional Roles that entails making choices in the

roles of entrepreneur, disturbance handler, resource
allocator, and negotiator.

What Are Management Roles?

What Do Managers Do : Katz’s Approach
 According to Robert Katz -another way of considering what
managers do is to look at the skills or competencies they need to
successfully achieve their goals.
 So as identified by Robert the three essential management skills:

Technical Skills:
The ability to apply specialized knowledge or expertise.
Human Skills:
The ability to work with, understand, and motivate other people,
both individually and in groups.
Conceptual Skills:
The mental ability to analyze and diagnose complex situations.
Is the Manager’s Job Universal?
 Level in the Organization
 Profit vs. Nonprofit

VISHWAKARMA
Importance of Management
 We all benefit from efficiently
and effectively run businesses.
 Well-managed
organizations prosper even
in challenging economic
times.
 After graduation, most

students become managers or
are managed.

What Factors Are Reshaping and Redefining
Management?
Today, Managers everywhere face changing circumstances
such as:
- Changing workplaces (managing workers in both
domestic and foreign workplaces).
- Global economic uncertainties*.
- Changing technologies.
- Ethical and trust issues.
As a result, how they manage is also changing and

affecting the way they plan, organize, lead, and
control.
What Factors Are Reshaping and Redefining
Management?
Two important changes to

note are:
1- The increasing
importance of
customers.
2- Innovation in products
and services.

Why Are Customers Important?
 Without customers, most
organizations would cease
to exist.
 Employee attitudes and
behaviors play a big part in
customer satisfaction.
 Managers must create a
customer-responsive
environment where
employees are friendly,
knowledgeable, and
sensitive to customer needs.
Innovation
 Innovation is the new idea that lead
to the making of any new products,
services or processes.
 Innovation means doing things

differently, exploring new territory,
and areas taking risks.
 Innovation isn’t only important for

high technology companies; it is
essential in all types of
organizations.
VISHWAKARMA
Innovation in Goods
VISHWAKARMA
Innovation in Services
VISHWAKARMA
Innovation in Technology
VISHWAKARMA
Innovation in Processes
VISHWAKARMA
Innovation in Marketing
VISHWAKARMA
PRODUCTIVITY – What does it mean?

UNIT -2
 Operations Management and its scope
 Production Systems
 Facility Location
 Facility Planning
 Plant Layouts.

Introduction
Operations Management

Operations Management
 What is operations?
 The part of a business organization that is responsible
for producing goods or services.
 What is operations management?

 The management of systems or processes that create
goods or provide services.
 Operations management affects:

 Company’s ability to compete for profit making
& quality.

Operations Management Concepts
 Quality: goods and services that are reliable and perform
correctly.
 Quality allows customers to receive the performance that they
expect.
 Efficiency: the amount of input to produce a given
output.
 Less input required lowers cost and waste.
 Responsiveness to customers: actions taken to respond
to customer needs.
 Firm can react quickly and correctly to customer needs as they
arise.

Operations Management…
 Refers to the management of the production
system that transforms inputs into finished goods
and services.
 Production system: the way a firm acquires inputs
then converts and disposes outputs.
 Operations managers: responsible for the
transformation process from inputs to outputs.
 Operations management seeks to increase the
quality, efficiency, and responsiveness of the
firm.
 Seeks to provide a competitive advantage.
Operations Management = OM
 Management of ANY activities/process that create goods and
provide services
 Exemplary Activities: Forecasting, Scheduling, Quality management
 Why to study OM
 At a typical manufacturing company
Profit 5%
OM Cost 21%
Marketing
Cost 26%
Manufacturing
Cost 48%
The Basics Of Operations Management
 Operations Management
 The process of managing the resources that are needed
to produce an organization’s goods and services.
 Operations managers focus on managing the “five Ps” of
the firm’s operations:
 People, plants, parts, processes, planning and control systems.

Operations Management = OM
The management of systems or processes that create goods
and/or provide services
Organization
Finance Operations Marketing
The distinct –active- role of operations:

Inputs become Outputs after some
Transformation
Business Functions are Interconnected
Operations
Finance Marketing

Operations example in Manufacturing:
Food Processing
INPUTS PROCESS OUTPUTS
Raw vegetables Cleaning Clean vegetables
Metal sheets Cutting/Rolling/Weldi Cans

ng
Energy, Vegetables Cutting Cut vegetables
Energy, Water, Cooking Boiled vegetables

Vegetables
Energy, Cans, Boiled Placing, filling Can food
vegetables
Types of Operations
Operation Examples
Goods producing Farming, mining, construction
Storage/transportation Warehousing, trucking, mail, taxis,

buses, hotels, location
Exchange Trade, retailing, wholesaling,
renting, leasing, loans
Entertainment Radio, movies, TV, concerts,
recording
Communication Newspapers, journals, magazines,
radio, TV, telephones, satellite

Why OM?
 Core of all business organizations
 Many areas interrelated with OM activities
 Management of operations are critical to create and
maintain competitive advantages

Introduction - Production Systems
 Production Systems is the

methodology of how to most
efficiently manufacture and produce
goods for sales.
 Production is the creation/assembly of

components/finished products.
 It utilizes a number of methods, including
human, machines, labor, biological and
chemical processes, to turn raw materials into
finished goods by many tools.

Introduction - Production Systems
 Production is similar to manufacturing but broader

in scope.
 It refers to the processes and techniques that are
used to convert raw materials or semi-finished goods
into finished products or services with or without
the use of machinery.

Basic Manufacturing Process
 Engineering Process is the
structured set of actions to achieve a
definite goal or objective.
 Every process is designed to
transform an input (raw materials)
to an output (products and services). Molten metal
 Engineering process aims to save
time and cost by optimizing the
resources and innovations.
 Engineering process is related to all
chemical, physical, mechanical and
manufacturing processes.
Material Casting
Manufacturing Processes
Civil concreting for floor

Hydro electricity
generation process

Ultra Sonography
testing

Manufacturing : Raw Materials
 Raw materials is turned into industrial goods, but it
must first be obtained and then converted to usable
material using the pre-manufacturing processes.
 i.e. melting, sieving, heat treating etc.

Obtaining Raw Materials
 Mining- digging
 iron,steel,aluminium, gold silver & copper
 Drilling- pumping
 Crude oil (petrol, diesel, gases)
 Harvesting- cutting
 Agri products(grains, fruits, fertilizers)

How are they converted?
 Thermal Processing- smelting

steelmaking, metal forming.
 Chemical Processing- polymer

formation, gase,plastic making.
 Mechanical Processing- metal

working, wood lumber making,
crushing rock etc.
Continuous Manufacturing System



Continuous Manufacturing System…….
 Used to produce standardized products with a standard set of
process and operation sequence in anticipation of demand.
Characteristics –
 Machines can be laid down in order of processing sequence.
 Standard methods (SOPs) & machines are used during part
manufacturing.
 Most of the equipments are semi-automatic or automatic in
nature.
 Material handling is also automatic.
 Semi-skilled workers.
 Planning & control of the system is much easier.
 Cost of production per unit is very low.

Continous Production system
Advantages Disadvantages
 Consistent output  Hard to modulate the
 Consistent product quality production rate
 Cost control  High risk of excess
 Automation leaves no inventory
scope of error  Rigid process to change
 Need less human labor or customize process
 Minimizes waste  Single equipment failure
 Reduce material handling can cause major issues
& storage needs

Intermittent Manufacturing System
 This is an effective
alternative to continuous
manufacturing,
for the companies that
are not willing or able to
make as large a capital
investment but are
usually most effective for
low-volume or limited
production runs.


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Engineering Management

 The process of achieving organizational goals by engaging in the four

 Identifying a “force”/group of people whose job is to direct the effort

 The performance of conceiving and achieving desired results by means

LECTURE BY DR MANISH VISHWAKARMA

 “If you are planning for one year – plant rice.

 If you are planning for ten years – plant trees.

 But if you are planning for 100 years – plant

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

 Doing the job/work efficiently means “doing things right” so that

the organization’s resources—its people, money, and equipment—

are used to their maximum.

is, tasks that help an organization reach its goals.

 efficiency means performing

effectiveness refers to how

 For example, if a company is not doing

Productivity is doing the right things

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

In the functional approach

proposed by the French

industrialist Henri Fayol, all

managers perform four

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

 Planning in advance the most

“Planning is deciding in advance - what

 It bridges the gap from where we are &

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

 Staffing is the recruiting the

 A staffing is based on the measure of

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

 Direction is that inert-personnel aspect of management which

Direction has following elements:

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

 The purpose of controlling is to ensure that everything occurs in

 An efficient system of control helps to predict deviations before

 According to Theo Haimann, “Controlling is the process of

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

A number of varied, un-patterned, and short-duration activities.

As a result, Mintzberg defined manager’s job by categorizing roles that

2. Informational Roles that involves collecting,

3. Decisional Roles that entails making choices in the

LECTURE BY DR MANISH VISHWAKARMA

LECTURE BY DR MANISH VISHWAKARMA

 So as identified by Robert the three essential management skills:

LECTURE BY DR MANISH VISHWAKARMA

 After graduation, most

LECTURE BY DR MANISH VISHWAKARMA

As a result, how they manage is also changing and

Two important changes to

LECTURE BY DR MANISH VISHWAKARMA

 Innovation means doing things

 Innovation isn’t only important for