Management For Engineers (Class Notes)

CONTENTS
TOPIC PAGE
Management [ 03 ]
Training [ 07 ]
Management responsibilities [ 09 ]
Organisation [ 12 ]
Team [ 16 ]
Projects [ 17 ]
Production management [ 25 ]
Production Quality [ 27 ]
Maintenance management [ 30 ]
Marketing [ 32 ]
[2] [Management for Engineers] [DEM 312] [ Ali Abdul Hameed ] [ KI 070149 ]
MANAGEMENT
Science to engineering
Science Engineering
Creativity
Knowledge
Mathematics
Natural sciences
Engineering Applied / utilised / Developed Benefit of Mankind
Study
Experience
Practice
What is management?
Management can be defined as the process of administering and coordinating work activities and
resources effectively and efficiently to achieve the goals of the organization.
Effectiveness
Pursuing the appropriate goals – doing the right things.
Efficiency
Using the fewest inputs to generate a given output – doing things right.
Resouce /
work
Administer Coordinate
Management
Effectively / Efficiently
Management
Manager
New engineer
Manual Activities
Factors an engineering manager will face
Management
Technical and engineering knowledge
Finance
Equipment / machinery
Environmental
Time factor
People factor
Management functions
Plan
Organise
Staff
Motivate
Communicate
Decision making
Implement change
Planning
Anticipating future events. Making preparation. Long and short range foal setting
Organising
Establishing authority, responsibility patterns. Assigning roles, facilities and equipment
Staffing
Deciding staff needs. Finding, hiring and training people. Meeting employment regulations.
Motivating / leading
Allowing and encouraging professional development
Communicating
Convey goals, purposes, information, instructions
Monitoring / control
Monitoring and evaluating individual and group performance. Comparing actual performance with
goals and plans
Decision making:
Giving instruction and making decisions.
Implementing change
Correcting aspects of the organisations operations
Management hierarchy
In general the management hierarchy of an organisation can be grouped into three levels.
top
management
middle management
lower management
Top management ( president / ceo /coo )
Middle management ( general manager / finance officer / regional manager / head of departement)
Lower management (section head, line management, supervisors, team headers)
Degree of importance
Top management – conceptual skill – visualise, think, set vision, mission, goals
Middle management – human skill – manage, work with people, get best out of people
Lower management – technical skill- posseses technical knowledge in specialised fields
Human resources
Planning and recruitement
Anticipate needs, trainees, apprentices, trained and experienced staff, part timers, contract staff
TRAINING AND DEVELOPEMENT
Types and training and job to prepare existing and new staff to fulfill their roles satisfactory
- In service or in-company or what place training

- External courses
- Retraining
- Encouraging multi skill
Planning Anticipate needs
Experiment staff
Recruitement Trainees
Apprentices
Training Contract etc.
Developement
Training
- provide opportunities for employees to develop job-specific skills

- continuous development
- maintain competence
- change job behaviour
Forms and training for engineering professionals
1) in house training programs – especially useful as they deal directly with the specific
environment and conditions that exist in the job
2) selected off premises courses – they must be carefully and used where special expertise is
not available within the organisation
3) continuing education programs – an excellent way to advance the knowledge of the
employee
4) On the job training – generally conceded to be the most effective method. This is true only
when time is taken to plan the program adequately
5) rotational training – this is especially important in smaller offices where generalist are
necessary to cover varying workload situations adequately
6) technical society participation on and professional registration
Promotion
Redeployment
Succession plan for key personal
Productivity
Performance appraisal - written feed back
-by HOD
-interview
Retirements and redundancy and layoff
- Any plan for those reaching retirement age
- Any option for them for retires early or stays on
- Re-employment for skilled and critical staff
MANAGEMENT RESPONSIBILITIES AND CONSTRAINTS
Management Governments
Competitors
employees share holders
customers community
Creditors Natural Environment
suppliers
Labour market
Pressure groups
Motivation
Motivation → drive/ desire → (to) achieve / accomplish → a goal / an objective
Forces of motivation
Initiation
Direction (target)
Persistence
Factors
Motivators / Satisfiers Dissatisfies

Recognition Company policy
Achievement (sense of achievement) Pay / salary / promotion
Interest Interpersonal relationship
Responsibility Working conditions
Advance / Career development
Motivation Theories
Theory X and Theory Y - Douglas McGregor
Theory of “hierarchy of human needs” – Abraham Maslow
Theory X
- the average human being inherit dislike of work

- avoid responsibility
- need to be directed
- little ambition
Theory Y
- like work / responsibility

- exercise self direction
- seek responsibility
- ambitious
Maslow’s hierarchy of needs
• SELF FULFILLMENT NEEDS

• ( power ,wealth , influence )
5
• SELF ESTEEM NEEDS

• ( Recognition , Respect )
4
• SOCIAL / BELONGING NEEDS

• ( friendship / acceptance )
3
• SAFETY NEEDS
• ( job secuirity )
2
• BASIC COMFORT NEEDS

• ( food, clothing, shelter )
1
ORGANISATION
An organisation is a group or arrangement of people or team created to accomplish some specific

goals.
Characteristics of an organisation
1) each organisation has a particular goal or purpose

2) an organisation is composed of people
3) an organisation has a structure or arrangement where the people work
Group / Team → Organisation → achieve specific goal
Engineering organisation
Organisational forms
Basic organisation forms are:-
- functional
- product
- matrix
- geographic
Function (most common / reduce duplication/ slow) → by discipline / by function
Product → separate units according to product
Project → projects
Matrix → project + functional
Geographic → location
Functional organisation
In a functional type organisation, the major division of the structure is by function or discipline
President
Director of engineering Director of Administration Director of Research
Civil Human
Materials
Engineering resources
Mechanical Software
Finance
Engineering research
Electrical Business Medical

engineering Development Research
Product organisation
A product organisation organises work and works into separate units responsible for producing
particular products or services
Company XYZ
Automobiles Appliances
Design Design
Manufacturing Manufacturing
Market Market
Finance Finance
Human resources Human resources
Advantages and Disadvantages of product organisation
Advantages:
- allows specialisation in one area of expertise

- managers and workers develop a broader set of experience
- clear line of responsibility and authority
- easier for managers to assess work performance
Disadvantages:
- Duplication of functions
- Difficult to achieve coordination across different departments
- Focus on product diminishes overall organisational goals
- “ empire building”
Project organisation
The structure is organised with projects as the major submission
Matrix organisation
A matrix organisation combines features of the functional organisation and the project organisation
with emphasis on functional and technical speciality as well as employs on achieving project goals
VP engineering
Chief Mechanical Chief Electrical

Designer Designer
Project Manager Mechanical Designer Electrical Designer
Project A Project A Project A
Project Manager Mechanical Designer Electrical Designer
Project B Project B Project B
A Geographic hierarchy
Managing
Director
Director Europe Director Far East
Manufacturing Manufacturing
Manager Manager
Engineering Engineering
Manager Manager
Marketing Marketing
Manager Manager
TEAM, CONFLICT
Team
A team is a group of people who have different talents but work together toward a common goal.
Development effective teams
Basic elements
- Working on common tasks together ( mission, strategy , plan, budget, staffing)

- Having discipline, effective working meetings at frequent intervals to discuss and tasks done
- Team spirit
High performance teams
- Sense of belonging
- Having high productivity
- Support by team members
- Cover one another’s work during absence
- Have respect and regard for one another
- Clear direct communication
- Many conflicts, but resolved quickly
- Differences are highly valued
Team conflict
Most teams have conflicts and disagreements
Cognitive type confliction
- Focuses on problem related differences of opinion

- Team members disagree because of their different skills and expertise
- Normally associated with improvement in team performance
Affective type confliction
- Refers to emotional and personal disagreement rather than expertise
Conflicts may also occur for teams whose members may be answerable to different management
groups.
Example: members in a project team may be answerable to project manager and to the general
manager
PROJECTS
A project is a unique task under taken to be completed within a finite time to provide a specific
product or service
Project:
- Unique in nature, all projects are different

- It is a temporary undertaking
- Have definite time span, definite start and stopping points
- Specific goals that is to provide unique product or service
Phases of project Initiate → Plan → execute → control → closeout
Initiation stage
- Identify and set the goals

- Establish how goals/ objectives will be achieved
- Estimate/ determine the cost and the time span
- Identify / establish the type of project organisation
Planning stage
- Establish and acquire man power for the project organisation

- Identify and establish specific procedures and process to achieve objectives and goals
- Review estimates for the time and budget / cost
Execution stage
- Actual execution or performance of the plan and activities

- Develop/ construct the project/ facility
- Evaluate performance
- Team development
- Solicitations, obtaining quotations, offers
Control
- Controlling changes to the project scope

- Controlling change to the project schedule
- Monitoring
- Collecting information, status, reports
- Identifying and tracking risks
Closeout
- Complete/ make project / product and handover to the customer

- Contract closeout
- Establish/ conduct training
- Establish project review and analyse feedback for future projects
Project management
Project management is the planning, organising, directing and controlling of company resources for
a specific period to achieve specific goals
E.g.:- Management of construction of a new highway, management of a building of a new factory.
PROJECT Resources PROJECT Specific time SPECIFIC GOAL

period
MANAGER MANAGEMENT
• project teams • plan

• different • organise
skills, • direct
disciplines, • control
staff
Project team
- Project teams are created to complete specific one time projects or tasks within a limited
time
- Project teams are normally lead by a project manager
- Project teams are unique and often staffed by employees from different function
departments
- Team members from different functional areas can reduce communication barriers
- Encourages cooperation among different departments
- Speed up processes
Interaction with people
SENIOR
MANAGEMENT
PROJECT PROJECT CLIENTS

TEAM MANAGER
OUTSIDERES,
SUPLIERS,
PUBLIC,
MEDIA
Time management
In a project time management is important
- Time schedule
- A project must be completed on time
- A large amount of time is spent communicating and interacting with people
- Must be spent in effective and productive manner
- A daily log of activities should be compiled such as telephone, meetings, visitors – to
determine time spent and to improve time management
- Project manager should set priorities for tasks
- Time is money
People
- Engineering management involves many aspects of people

- Human resource management
- Manpower planning
- Helps to identify current and future needs
- The succession plan
- Staff development plan
- Recruitment plan
- Redundancy plan
Consultants
- The specialist from the outside who provides support, services and advices to the project
Partners
- The organisations joining together to carry out project or services
Public organisations/ individuals
- These include the regulatory bodies, professional societies. The individual refers to the
ordinary people (e.g.:- road users )
Media
The manager may be requested to answer the press, TV or radio and to give explanations and
interviews
Project life cycle
The life cycle of a project indicates the completion of the project with respect to time (schedule) or
resources (budget). The programs of most projects can be represented by two different charts
similar to the S-shaped and J-shaped paths.
S-shaped path slow → Fast → Slow
S-Shaped Path
100
90
Slow finish
80
70
60
% complete 50
Fast momentum
40
30
20
10 Slow start
0
0 2 4 6 8 10 12 14
Time
J-shaped path slow →Fast → Fast
J-Shaped Path
100
90 Fast finish
80
70
60
% complete 50
Gaining momentum
40
30
20
10 Slow start
0
0 2 4 6 8 10 12 14
Time
Success of a project
Generally a project is said to be successful if the target or goal is achieved with the specified cost
(budget), time (schedule) and performance (specification).
The three goals of a project
Cost (Budget)
Time (schedule)
Performance (specification)
PROJECT
Performance
Responsibility
- People ( Giving tasks relevant to qualification)

- Information
- Project
o Keep schedule
o Within budget
o Specification
o Meet demands of your client
- Project team
o Clear instruction
o Define role and responsibility
o Personal development
o Settle problems and disagreement
- Facilities
- Time schedule
o Set priorities
Strategic management
Involves a strategic formulation process
- Vision
- Strategic action plan
- Review current situation
- Assessment of the future
Strategic formulation cycle
Vision
SWOT
SWOT Assessment Strategic Alternative
and changes action plan
plans
Review
current
situation
Mission, objective, environment
Strategic action plan
- SWOT analysis
- Planning other alternatives
S Strength
W Weakness
O Opportunities
T Threats
Strength
Example: - financially strong, strong workforce, experience
Weakness
Example:-not financially strong, lack of experience, far from location
Opportunity
Example:-new market, no competition
Threats
Example:-strong rival company, change of environment
Project planning, scheduling and control
Management tools:-
Examples:-
1) Bar charting methods

2) Work breakdown structure (WBS)
3) Critical Path Method (CPM)
4) Project evaluation and review technique (PERT)
5) Gantt chart
6) Project management software
Work breakdown structure
House
construction
Concrete Electrical Plumbing Woodwork
foundation wiring piping doors
wall lights sink windows
etc.... etc.... etc.... etc....
CPM (critical path method)
CPM or the critical path method is a management tool that helps the manager to identify the conflict
tasks that have to be monitored closely
The critical path of a project is the path from start to end that have the longest duration
4
2 B C
1
A 2
F G
3 D E 3
Critical Path = A→D→C→F→G (11 Days)
Gantt chart
Time WEEKS
Activity 1 2 3 4 5 6 7 8 9 10
Activity 1
Activity 2
Activity 3
Activity 4
Production management
What is production management?
The set of activities that creates goods or services by transforming inputs into outputs is considered
as production management (or operators management)
PRODUCTION:
The creation of goods / products / services
Tangible and Intangible production
What is production?
RESOURCES
•Manpower
•Machine PRODUCTION PRODUCT/SERVICE
•Material
•Money
Productivity
The production of goods and services involves the transformation of resources into goods and
services
Definition:
Productivity = Output / Input
Measure of output (goods, services) per unit of Input (labour, capital)
Example: Units / Man-hour , Units / Ringgit
How to calculate productivity
Question 1 – A company produces 160 boxes using 2 people working 8 hours per day. What is the
productivity of this company?
Answer-
Productivity = Output / Input
= 160 boxes / 2 * 8 (16 man-hour)
= 10 boxes / man-hour
Question 2 – A company reschedules the workflow. This produces 240 boxes per day. What is the
percentage increase in productivity?
Answer-
Increase in productivity = ((240-160)*100) / 160 = 50 %
Manufacturing process
Manufacturing operations can be categorised into 4 general processes
1- Job-Shop production
2- Batch production
3- Continuous production
4- Assembly line production
Job-shop production
- Highly specialised
- Low volume
- Equipment flexible
Batch production
- Production in batches
- Different specifications
- Equipment can be adjustable
Continuous production
- Large volume
- Standardised production
- Equipment seldom modified (example: steel production)
Assembly line (Mass) production
- Large scale production

- Specialised equipment
- Difficult to change (example: car assembly plant)
Variances
Products or services exhibit variations
Inherent Variation: Variation or chance / random
Assignable or Special Variation: If detected can be eliminated (example: tool wear, equipment
adjustment, defective material, carelessness, distraction, incorrect procedure)
PRODUCTION QUALITY AND RELIABILITY
Quality
American society of quality
“The totality of features and characteristics of product or service that bears on its ability to satisfy
stated or implied needs”
The ability of a product or service to meet customer needs
The aim of quality control is to assure that an output is produced at the specified quality level
Managing Quality
DEFINE: what to control (example: hardness, thickness)
MEASURE: for counted or measured variables
COMPARE WITH STANDARD: quality being sought
EVALUATE: is it out of control
TAKE CORRECTIVE ACTION: uncover cause and correct it
EVALUATE CORRECTIVE ACTION: ensure corrective action is effective, monitor output for a period
of time
A simple quality control process
INPUT PROCESS OUTPUT
Resources
Feedback
CONTROL / MONOTORING
International quality standards
ISO 9000
A set of quality standards developed by the international standard organisation (ISO)
E.g.: ISO 9000:2000, ISO 9001:2000, ISO 9004:2000
The focuses of the standard is to establish quality management procedures, through detailed
documentation, work, instructions and record keeping.
** ISO 9000 does not mention about the quality of the product
TQM (Total Quality Management)
- Excel in all aspects of products / services

- Continuous improvement
- Bench marking (e.g.: ISO standards)
- JIT – just in time
Reliability
Reliability is the measure of ability of a product to perform its intended function under prescribed
conditions
Failure is described as a situation which a product does not perform as intended
Reliability is specified with respect to normal operating conditions
Normal operating conditions
- Loud
- Temperature
- Humidity
- Operating cost
- Maintenance schedule
Ways to test
- Accelerated testing
- Simulation
Statistical tools for quality control
- Check sheets
- Flow charts
- Scatter diagram
- Cause and effect diagram (Ishikawa diagram or fish bone chart )
- Pareto chart
- Histogram
- Statistical chart
Scatter chart
Ishikawa Diagram
Pareto Chart
Machinery
Employees
Design
Material
0 1 2 3 4 5
Contribution to problem
Histogram
5
4
Frequency
3
2
1
0
48 49 50 51
Dimension
Cost of quality
Cost of quality can be categorised as: -
Prevention costs
Costs associated with reducing the potential for defective components or services (e.g.:- training,
quality improvement programs, lectures etc.)
Appraisal costs: costs related to evaluation of products, processes, parts, services
(e.g.:- testing, labs, inspectors etc.)
Internal failures
Costs related from production of defective parts or services before delivery to customers
(e.g.:- rework, scrap, downtime)
External costs
Costs that occur after delivery of defective products or services
(e.g.:- returned goods, loss of goodwill, and loss of customers)
MAINTENANCE MANAGEMENT
Maintenance management is the organisational control in administration of activities to retain /

restore the operating / productive means of functions of services/ products.
The services / products include equipment, machinery, facilities, utilities, buildings, ground and
plants.
Maintenance function
To keep the equipment, machinery, facilities, utilities, buildings, ground or plants operating or
functioning at the required level and at the most economical cost
Types of maintenance
- Preventive maintenance
- Corrective maintenance
- Improvement maintenance
Preventive maintenance
Preventive maintenance refers to all programmed maintenance activities carried out at pre
determined intervals to prevent breakdown / failure. The maintenance to be done is decided in
advance. Preventive maintenance is planned maintenance.
- Routine preventive maintenance

- Predictive maintenance
Corrective maintenance
Corrective maintenance refers to al maintenance which is carried out in order to correct / repair a
breakdown / failure of equipment. The Corrective maintenance activity is difficult to forecast.
- Unplanned corrective maintenance

o Maintenance which cannot be planned
o Insufficient time to plan for request
o Associated with high cost
o Contributing to indirect operational cost
- Planned corrective maintenance
o Knowing what should be done when breakdown
(e.g.:- spares, personnel, documentation)
o Reduce direct and indirect operational cost
Improvement maintenance
Improvement maintenance refers to the improvement in modification to the equipment so as to

improve its condition in performance.
Maintenance and cost
All physical facilities are susceptible to failure through breakdown, deterioration in performance due
to age, use and obsolescence. These failures affect the production cost of the product
1- Break down failure

- Results in unplanned losses on the output of product / services
2- Deterioration in performance
- Causing increases in frequency of failures
- Results in unacceptable levels of quality
- Incurring cost to fix the problem
3- Obsolescence
- Old and obsolete resulting in higher cot to maintain
Running maintenance
Shutdown maintenance
Overhaul maintenance
Training for maintenance
1- Technical knowledge / equipment functionality

- Practical / theoretical
- Avoid indispensible employee
2- General training / improvement
- Technical report writing
- Community skill
- Soft skill
Effective maintenance
- Fulfilling the basic function of maintenance

o Sustaining the functionality of asset
o Maximize equipment availability
- Increase productivity and quality
- Enhance organisations image
- Lower cost of production
- Motivated work force
- Social responsibility ( ensuring good environment)
- Safe and conducive environment
Effective and good maintenance culture
- Technical know-how / functionality

- General training / improvement
- Company initiated training
o Team building
o QCC , TQM (Quantum Continuum Club, Total Quality Management )
o Motivation
- Special training
MARKETING
The process of planning and executing the creation, pricing, promotion and distribution of ideas,
goods and services to create exchanges that satisfy individual or organisational objectives.
Marketing functions
- Buying
- Selling
- Transportation
- Communication
- Storage
- Inventory
- Finance
- Market information
- Logistics
- Risk
- Target market
Types
Consumer market
- Ordinary consumer
Industrial market
- Production
- Retailer
- Government
- Institutional
Markets: Groups of people or organisation or both that has needs for the product. They have the
ability and authority to buy the products
Industrial Markets
Producer markets: Individuals, business organisations who buy the products
Retailer markets: The middle people or intermediaries
(e.g.:- the wholesalers or retailers who buy the products to resell their profits)
Governmental markets: Purchases made by the government
Institutional market: Hospitals, schools and non-profit organisations
Logistics
Logistics refer to the overall movement of goods from supplier, through the manufacturing plant and
reaching the customer
Goods / Materials Manufacturing plant Customers
1) Procurement purchasing
2) Receiving of goods / materials
3) Production
4) Stock control
5) Storing
6) Distribution to customers
Suppliers
- Management must select suppliers properly

- Have backup supplier
- Price – comparing to get best prices
- Quality – find the best material at best prices
- Reliability – check reliability of potential suppliers
- Credit terms – supplier demands credit terms or immediate payment)
- Transportation or supplying cost
Inventory management
- Raw material inventory

- WIP ( work in progress)
- Operating inventory
- Provident inventory
Holding costs
The costs or storing products until they are purchased or shipped or sent to the customers
Stock out costs
Cost of sales lost when products are not in the inventory
Order processing
This consist of receiving and processing customers purchase orders, includes billing and granting
credit
Ware housing
This refers to the activities involved in receiving, storing and preparing products or goods for
reshipment
Materials handling
This refers to the actual handling in goods in ware housing and during transportation
- Proper handling increases the capacity of ware house

- Reduce breakage and damage
Material flow cycle
Cycle time
95% 5%
→→Input →→ move wait setup runtime →→ output→→
** About 95 % of work in process is unproductive time

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CONTENTS

Engineering Applied / utilised / Developed Benefit of Mankind

Pursuing the appropriate goals – doing the right things.

Technical and engineering knowledge

Establishing authority, responsibility patterns. Assigning roles, facilities and equipment

Allowing and encouraging professional development

Convey goals, purposes, information, instructions

Giving instruction and making decisions.

Correcting aspects of the organisations operations

Top management ( president / ceo /coo )

Lower management (section head, line management, supervisors, team headers)

Lower management – technical skill- posseses technical knowledge in specialised fields

Planning and recruitement

- In service or in-company or what place training

Planning Anticipate needs

Training Contract etc.

- provide opportunities for employees to develop job-specific skills

Succession plan for key personal

Performance appraisal - written feed back

Retirements and redundancy and layoff

- Any plan for those reaching retirement age

- Any option for them for retires early or stays on

- Re-employment for skilled and critical staff

employees share holders

Motivation → drive/ desire → (to) achieve / accomplish → a goal / an objective

Motivators / Satisfiers Dissatisfies

Theory X and Theory Y - Douglas McGregor

Theory of “hierarchy of human needs” – Abraham Maslow

- the average human being inherit dislike of work

- like work / responsibility

• SELF FULFILLMENT NEEDS

• SELF ESTEEM NEEDS

• SOCIAL / BELONGING NEEDS

• BASIC COMFORT NEEDS

An organisation is a group or arrangement of people or team created to accomplish some specific

1) each organisation has a particular goal or purpose

Group / Team → Organisation → achieve specific goal

Basic organisation forms are:-

Function (most common / reduce duplication/ slow) → by discipline / by function

Product → separate units according to product

Matrix → project + functional

Director of engineering Director of Administration Director of Research

Electrical Business Medical

Human resources Human resources

Advantages and Disadvantages of product organisation

- allows specialisation in one area of expertise

The structure is organised with projects as the major submission

Chief Mechanical Chief Electrical

Project Manager Mechanical Designer Electrical Designer

Project A Project A Project A

Project Manager Mechanical Designer Electrical Designer

Project B Project B Project B

Director Europe Director Far East

Development effective teams

- Working on common tasks together ( mission, strategy , plan, budget, staffing)

High performance teams

Most teams have conflicts and disagreements

Cognitive type confliction

- Focuses on problem related differences of opinion

Affective type confliction

- Refers to emotional and personal disagreement rather than expertise

- Unique in nature, all projects are different