ENGINEERING MANAGEMENT

SWISS GERMAN UNIVERSITY 01 / 14

Engineering Management

15-Nov-17 1
 ENGINEERING MANAGEMENT
SWISS GERMAN UNIVERSITY 01 / 14

Course Objectives
Review the engineering
management functions of
planning, organizing,
leading and controlling,
introduce business
fundamentals of cost
accounting, financial
accounting, financial
management and
marketing management,
and prepare engineers to
become effective leaders
in meeting the challenges
in the new millennium
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 ENGINEERING MANAGEMENT
SWISS GERMAN UNIVERSITY 01 / 14

Major Premises
Technology and business savvy represents a
very powerful combination of great demand in
society
Market environment is rapidly evolving
(changing marketplace complexities, web-
based technologies, globalization)
Leaders with understanding of technology and
management perspectives are needed
Engineers with proper management and
leadership training have great opportunities to
add value in the new century
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 ENGINEERING MANAGEMENT
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Focal Points
Make engineers more effective as
technical contributors (understand
managerial points of view, effect teams
coordination, drive to add value)
Ready engineers for managerial positions
(managerial functions, success factors,
leadership talents, business/management
perspectives, expectations, contributions
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 ENGINEERING MANAGEMENT
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Course Book
Author: Roberto G. Medina
Engineering Management

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Grading Policy
20% Presentation
20% Quizzes
30% Midterm & Final Examination
10% Attendance
20% Class Participation
@ least 2 quizzes before mid term, 2
quizzes after mid term

15-Nov-17 Dr. ir. Yuki Indrayadi 6

 ENGINEERING MANAGEMENT
SWISS GERMAN UNIVERSITY 01 / 14

Academic Calendar Bachelors

degree
Semester 1st SY 2017-2018
Course: 18 weeks
Midterm Exam: August 10-12, 2017
Final Exam: October 12-14, 2017

15-Nov-17 Dr. ir. Yuki Indrayadi 7

 ENGINEERING MANAGEMENT
SWISS GERMAN UNIVERSITY 01 / 14

Schedule Summary (1/2)

Chapter 1 Introduction
Chapter 2 Planning
Chapter 3 Organizing
Chapter 4 Leading
Chapter 5 Controlling
Chapter 6 Cost Accounting
Chapter 7 Financial Accounting & Analysis
Chapter 8 Financial Management

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Schedule Summary (2/2)

Chapter 9 Marketing Management
Chapter 10 Engineers as Managers/Leaders
Chapter 11 Ethics
Chapter 12 Web-Based Enablers for Business
and Engineering Management
Chapter 13 Globalization
Chapter 14 Engineering Management in the
New Millennium
Final exam
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 ENGINEERING MANAGEMENT
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Skills for Managers/Leaders

Administrative
Leadership Skills
Skills

Technical Skills

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 ENGINEERING MANAGEMENT
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Value Addition
Increase Sales Revenue (new and enhanced
products/services - faster, better, cheaper - to
create greater customer satisfaction)
Reduced Cost to Do Business (simplified
product design, new technologies, improved
productivity, raised efficiency, reduced inventory
via supply chains, new production and marketing
partnerships and alliances)

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Value Mantra
As a Mantra, engineers and managers
alike must focus on Work Which Adds
Value (large/small, direct/indirect,
short/long-turn, and certain/uncertain)

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Value to Stakeholders
Customers (Product
quality, service)
Shareholders (ROI, EPS)
Suppliers (Market position,
financial stability,
collaboration)
Employees (Workplace,
compensation, stability)
Community (Corporate
citizenship, brand image,
tax contribution)
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Selected Definitions
Efficiency - Accomplishing tasks with the
least amount of resources (time, money,
equipment/facilities, technology - know-
how, procedure, process, skills) - do things
right
Effectiveness - Accomplishing tasks with
efforts commensurate with the value
created by these tasks - do the right things
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 ENGINEERING MANAGEMENT
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Selected Definitions
Strategic Decisions - Setting direction by
specifying what are right things to do, high
level engineering managers participate in
making strategic decisions
Operational (Tactical) Decisions -
Engineers participate in defining how to do
things right (e.g., methods or procedures to
carry out a specific task/project efficiently)
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 ENGINEERING MANAGEMENT
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Four Dimensional Work

Work with boss

Peers, Engineering With self

Staff people Manager (Manage own time)

Work with
subordinates

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Work of an Engineer
As Technical Contributor
Understand objectives of tasks specified
Develop action plan for implementation
Define standards (performance metrics)
Select methodology/techniques
Implement task with proper efforts
Generate results and secure value
Report findings (impact, lessons)
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Tips for Engineers

Demonstrate Technical Competence & Innovative
capabilities
Brush Up Communications skills (ask, listen, write
and talk)
Show unfailing reliability to induce trust and
confidence
Be Proactive in seeking challenging tasks
Exhibit readiness for assuming larger
responsibilities (take courses, practice skills, gain
experience)
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Typical Engineering Activities

Design/development of products/
processes
Project engineering/management
Value engineering and analysis
Technology development and applied R&D
(laboratory, field)
Production/manufacturing and construction
Customer service
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 ENGINEERING MANAGEMENT
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Engineering Management
Functions

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Engineering Management
Functions
Planning (forecasting, setting objectives, action
planning, administering policies, establishing
procedure)
Organizing (selecting organizational structure,
delegating, establishing working relationship)
Leading (deciding, communicating, motivating,
selecting/developing people)
Controlling (setting performance standards,
evaluating/documenting/correcting performance)

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Learnable Skills
Time management and work Habits
Interpersonal skills to get along with people
Team building, communications and
motivation skills
Decision support tools (what-if analysis,
risk analysis, kepner-Tregoe decision tool,
problem solving, root cause analysis,
decision tree, optimization, etc.)
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Talents to Be Nurtured
Over Time
Vision - Strategic thinking capabilities to
set direction or initiate new projects
through technological insight and intuition
(lateral thinking)
Net-Working - Building a wide base of
business/professional connections
Drive to Excel (competitive, proactive,
energetic, persistent)
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Interactions Between Groups

Customers

Marketing Sales/Service Warehouse

Design/Product Manufacturing Procurement

Engineering

Suppliers

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Challenges In the New Millennium

Marketplace changes rapidly (Web-based
technologies, globalization, customer demand,
business networks) affecting how progressive
companies will be organized
Engineering managers to lead by supervising
complex teams, innovating with vision for the
future, designing global products, and organizing
supply chains, apply global resources to derive
economies of scale and scope.

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Challenges In the New Millennium

Inside Outside

Present Future

Local Global

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Challenges
Inside - implement projects/programs;
manage people, technologies, and
resources to add value; develop new
product features to enhance company
competitiveness; define, control and
reduce costs to improve profitability; initiate
technology projects to sustain company
position

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 ENGINEERING MANAGEMENT
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Challenges
Outside - keep abreast of emerging
technologies and apply them to strengthen
companys core competencies; apply web-
based tools to enhance operations and
foster customer relations; identify best
practices to improve engineering
operations and surpass them; create
supply chain networks to derive speed,
quality and cost benefits
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Challenges
Present - Do things right to keep company
operating smoothly; use Balanced
Scorecard to monitor non-financial and
financial performance; control costs and
eliminate wastes to attain profitability in the
short-run

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Challenges
Future - seek e-transformation
opportunities to create company
profitability in the long-run; introduce new
generation products timely; create vision
for the future related to technologies;
Define what should be done for
technology-based success in the future

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 ENGINEERING MANAGEMENT
SWISS GERMAN UNIVERSITY 01 / 14

Challenges
Local - Utilize resources to best achieve
companys objectives; take ethical and
lawful actions while taking into account
local conditions; maintain and nurture local
professional networks; share lessons
gained with people at other company sites

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 ENGINEERING MANAGEMENT
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Challenges
Global - Apply location-based resources to
realize global economies of scale and
scope for achieving cost and technology
advantages; develop global professional
networks; acquire a global mindset;
exercise leadership roles in international
settings

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Assignments
Seek opportunities to practice EM skills
constantly - student organization, other
non-profit groups

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 ENGINEERING MANAGEMENT
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Question #1.1
Tom Taylor, the Sales Manager, was told
by his boss, Carl Bauer, to take an order
from a new customer for a batch of
products. Tom knew that the products
involved would only partially meet the
customers requirements and that Carl
knew that. But, Carl insisted that the order
was too valuable to lose. What should Tom
do?
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 ENGINEERING MANAGEMENT
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Question #1.2
The engineering Manager proposes to install an
automated bar code scanner costing $4,000. He
estimates that he can save about 100 hours of
labor time per month because of its speed. He
further reasons that at the wage rate of $15/hour,
the benefit of using the scanner is $1,500/month
and the scanner can be paid back in 2.67
months.
As the president of the company, do you agree
or disagree with the way he computes the
cost/benefit ratio? Why and why not?
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