GE404 Engineering Management

5/16/17 Topic1.A Introduction

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Definition of Engineering management
Engineering Management or Management Engineering

Engineering Management (EM) is a specialized form of

management that is required to successfully lead engineering
or technical personnel and projects.

Engineering Management is a career that brings together the

technological problem-solving savvy of engineering and the
organizational, administrative, and planning abilities of
management in order to oversee complex enterprises from
conception to completion.

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Definition of Engineering management
Engineering Management or Management Engineering

Engineering Management programs typically

include instruction in accounting, economics,
finance, project management,
systems engineering, mathematical modeling and
optimization, management information systems,
quality control & six sigma, operations research,
human resources management, ethical and legal
perspectives, team relations, safety and health.

It empowers engineering managers with

knowledge, and skills needed to lead technical
organizations or processes to success.
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Definition of Engineering management

Example areas of engineering are:

Product Development, Manufacturing, Construction, Design Engineering,
Industrial Engineering, technology, production, or any other field that
employs personnel who perform an engineering function.

Engineering managers
They manage engineers who are driven by non-commercial thinking, thus
require the necessary people skills to coach, guide and motivate technical
professionals.

One of most important topic in EM is Project Management

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Definition of Management
Management

The efficient utilization and direction of resources to achieve

objectives.

Coordinated activities to direct and control an organization

(ISO 9000/2000).

Management is the process of Planning, Organizing,

Directing/Leading, Communicating, Motivating and Controlling
the efforts of the organizational members and resources in
order to achieve organizational goals.
ISO: International Organization for Standardization

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Functions of Management

What the Functions of Management?

They include several interrelated functions which are:

1) Planning
2) Organizing
3) Coordinating / Directing
4) Communicating
5) Motivating
6) Controlling

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 Functions of Management
1) What is planning?
)It is the process of setting goals, developing strategies,
and outlining tasks and schedules to accomplish the goals.
http://www.businessdictionary.com/definition/controlling.html

) A process is Sequence of interdependent and linked

procedures which, at every stage, consume one or more
resources (employee time, energy, machines, money) to
convert inputs (data, material, parts, etc.) into outputs.
These outputs then serve as inputs for the next stage until
a known goal or end result is reached.
Planning can be viewed from following points:
Subject:- Financial Planning, Time Planning, Quality Planning,
Organizational Planning, .
Organization:- Corporate Planning, Project Planning,.
Time:- Long-Range. Planning, Short-Range Planning, Weekly Planning, .
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 Functions of Management

2) What is organizing?
) It is The process of determining the responsibilities and
scope of authority of each position in the company
structure and defining how each company segment
interrelates with the others.

)It is the arranging several elements into a purposeful

sequential or spatial (or both) order or structure.

) It is the assembling required resources to attain

organizational objectives.

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 Functions of Management

3) What is coordinating?
)The synchronization and integration of activities,
responsibilities, and command and control structures to
ensure that the resources of an organization are used
most efficiently in pursuit of the specified objectives.
)Along with organizing, monitoring, and controlling,
coordinating is one of the key functions of management.
http://www.businessdictionary.com/definition/coordination.html

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 Functions of Management

4) What is communicating?
)Engineering Communication: The ability to effectively communicate
information about the design and engineering process. To that end, the
competition requires teams to submit technical reports, prepare and deliver
engineering presentations, and create poster displays.
http://www.marinetech.org/rov_competition/2008/2008_ENGINEERING_COMMUNICATION
_FINAL.pdf

)Business Communication: communication used to promote a product,

service, or organization; relay information within the business; or deal with
legal and similar issues. It is also a means of relaying between a supply
chain, for example the consumer and manufacturer.
http://en.wikipedia.org/wiki/Business_communication

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 Functions of Management

5) What is motivating?
) Internal and external factors that stimulate desire and energy in people to
be continually interested in and committed to a job, role, or subject, and
to exert persistent effort in attaining a goal

) Motivation results from the interactions among conscious and

unconscious factors such as the (1) intensity of desire or need, (2)
incentive or reward value of the goal, and (3) expectations of the
individual and of his or her significant others.
http://www.businessdictionary.com/definition/motivation.html

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 Functions of Management

6) What is controlling?
)The basic management function of (1) establishing
benchmarks or standards, (2) comparing actual
performance against them, and (3) taking corrective action
, if required
http://www.businessdictionary.com/definition/controlling.html

Control function can be viewed as follow:

Controlling involves making sure that the results achieved are in line with
the planned results.
The main feature of control is action to correct performance deviations
and to insure that expected results are forthcoming.
Control = Monitor + Compare + Analysis + Action
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Definition of Project management
What is a project?

1) Definition of a project according to IPMA / ICB 2006

) A project is a time and cost constrained operation to realize a set of
defined deliverables up to quality standards and requirements.
) The project should deliver all that is described within its scope.
) The project scope defines the boundaries of a project. The scope
embraces the totality of all deliverables, which are included in a
project.
) The goal of a project is to produce the deliverables defined in the
business case.
) IPMA: International Project Management Association
) ICB: IPMA Competence Baseline

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Definition of Project management

What is a project deliverables?

Definition of a deliverables according to IPMA / ICB 2006

The deliverables of a successful project are tangible or intangible assets
created by the project for the customer. They are represented by drawings,
descriptions, specifications, models, prototypes,..
Deliverables are not only the product sold or service put into use after
project closure, but also the operational process, organizational changes
and human resource changes needed for a successful organization to
operate

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Definition of Project management
What is a project?
2) According to PMI/PMBOK
) A project is a temporary and one-time endeavor undertaken to create a
unique product or service, which brings about beneficial change or
added value. Projects have start and end dates!
) PMI: Project Management Institute
) PMBOK: Guide to the Project Management Body of Knowledge
) PMP: Project Management Professional

3) According to ISO 9000/2000

)A project is a unique process, consisting of a set of coordinated and
controlled activities with start and finish dates, undertaken to achieve
an objective conforming to specific requirements, including the
constraints of time, cost and resources.
)The outcome of a project may be one or several units of product. A
product is the result of a process. A process is a set of interrelated or
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interacting activities which transforms inputs to outputs.
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Definition of Project management

What is the project characteristics?

Endeavors of any size may be a project

o Large and small projects demand different
handling
Temporary
o Distinguishes projects from operations
Unique
o Not the same old thing

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Definition of Project management
Examples of projects

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Definition of Project management
Examples of projects

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Definition of Project management
Examples of projects

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Definition of Project management
Project management
1. It is the discipline of planning, organizing, securing and managing
resources to bring about the successful completion of specific project
goals and objectives.
2. It is the Coordinated activities to direct and control a
project organization to realize a set of defined deliverables
up to quality standards and requirements.

Who project manager? According to ICB 2006

He is the professional specialist who plans and controls a project. He is the
person who acts in a transparent manner for the sake of the whole project to
satisfy the expectations of the customers, the partners delivering goods and
services for the project and the other interested parties.
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Definition of Project management
The Role of the Project Manager
Project managers should be:
Good coaches
Good communicators
Able to organize activities from a variety of disciplines

Highly visible Responsible for making sure that:

All necessary activities are finished in order and on time
The project comes in within budget
The project meets quality goals
The people assigned to the project receive motivation, direction, and
information

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Definition of Project management
Ethical Issues
Bid rigging revealing confidential information to give some
bidders an unfair advantage
Low balling contractors try to buy the project by bidding
low and hope to renegotiate or cut corners
Bribery particularly on international projects
Expense account padding
Use of substandard materials
Compromising health and safety standards
Withholding needed information
Failure to admit project failure at close

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GE404 Course Description
Introduction for engineering management.
Planning Engineering projects.
Scheduling using activity-on-node and precedence methods.
Resource leveling and allocation.
Project time-cost trade-off.
Cash flow forecasting.
Updating construction schedules.
Project time and cost control.
Contractual and organizational approaches including definition
of organizational responsibilities of project participants.

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GE404 Course Learning Objectives
Students completing this course successfully will be able to:
a) Using bar chart technique to formulate a complete plan for an engineering
project.
b) Apply activity-on-node network, and precedence diagram to schedule the
project.
c) Level and allocate project resources.
d) Shorten project duration.
e) Monitor an engineering project for purpose of time and cost control.
f) Analyze project cash flow.
g) Use computer software for preparing project schedules
h) Understand principles of project organization and contractual relationships
including definition of professional responsibilities of project participants.
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GE404 Course Topics Covered

1) Introduction for engineering management (2 hours).

2) Planning with bar chart (3 hours).
3) Activity-on-node and precedence diagramming (6 hours).
And Time-scaled network (3 hours).
4) Resource leveling and allocation (5 hours).
5) Time-cost trade-off (3 hours).
6) Cash flow analysis (3 hours).
7) Time and cost control (4 hours).
8) Contractual and organizational approaches (3 hours).

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GE404 Textbook(s) and/or Other Required Material

Moder, J.; Phillips, C. and Davis, E. (1983). Project

Management with CPM, PERT and Precedence
Diagramming, 3rd Edition, van Nostrand Reinhold.
Course lectures and solved examples are also found on
the following website:
http://faculty.ksu.edu.sa/HAElshakour/default.aspx
http://faculty.ksu.edu.sa
Heizer, jay, and Render, Barry; Operation
Management; Pearson Education, latest Ed.

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GE404 Grade Distribution

Mid-term exam 35%

Lecture Attendance and Participation

5%

Assignments and Quizzes

10%

Final Exam 50%

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