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1/17/2013
1
ENGI 9396: Engineering Management Topics
Lecture 1
Dr. Amy Hsiao
Winter 2013
Introduction
What is Engineering Management?
Importance of Understanding Technology (and Engineers) in Corporate Leaders
History of Management Theory and Practices
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Introduction
Find your match.
Introduce your classmate.
◦ Name
◦ Discipline
◦ Background
Define “Engineering Manager” and write it on the slip of paper.
Engineers
Ingenious
Latin ingenium
Talent, natural capacity, clever invention
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Engineering activities within a division of a large corporation (from Benjamin S. Blanchard, Engineering
Organization and Management, © 1976, Figure 10-3, p. 280. Reprinted by permission of Prentice-Hall, Inc.,
Englewood Cliffs, NJ).
Management
An organizational or administrative process
A science, discipline, or art
The group of people running an organization
An occupational career
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7
The secret of success is for a [person] to be ready for his[her] opportunity when it comes. -Benjamin Disreali, British Novelist and Debater (1804-1881)
Preparation
Opportunity
Sponsor
(Mentor)
Mgmt
Career Path
Cornerstones to Developing Managers
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Technical
Skills
Interpersonal
Skills
Administrative
and
Conceptual
Skills
2nd Level
(Middle
Managers)
1st Level
(Supervisors)
3rd Level
(Senior Managers)
Management Levels & Skills Mix
As organizations evolve to reflect their business environment --
the skills mix is also changing for the organization’s managers
Question: What are “conceptual skills”?
Answer: Ability to discern critical factors and set long-term
objectives; “see the forest in spite of the trees”
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Managerial Roles
Interpersonal ◦ Figurehead ◦ Leader ◦ Liaison – network
Informational ◦ Monitor/collector/gatekeeper ◦ Disseminator ◦ Spokesperson
Decisional ◦ Entrepreneurial ◦ Disturbance handler ◦ Resource allocator ◦ negotiator
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Technical
Management
Other
Not all engineers are interested in becoming managers [Mintzberg, 1990].
“The Manager’s Job: Folklore and Fact”
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Definition (that I like)
“The engineering manager is distinguished from other managers because s/he possesses both an ability to apply engineering principles and a skill in organizing and directing people and projects. S/he is uniquely qualified for two types of jobs: the management of technical functions (such as design or production) in almost any enterprise, or the management of broader functions (such as marketing or top management) in a high-technology enterprise.” --Daniel Babcock, “Is the Engineering Manager Different?” Machine Design, March 9, 1978, pp. 82-85.
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Each Organization Selects Its Engineering
Managers Based on a Complex Set of Factors
Technical
Competence
Business
Competence
Capability
Seniority or
Experience
Relationships
Leadership
Each organization has its own unique
equation … that may change over time
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Staff Engineering
1st Line Management
Middle
Management
Sr. Mgt.
The Engineer to Manager “Pyramid”
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Engineering Management:
An Organizational Development Approach
Team Leader
Project Leader
Project Tracking
Resource
Expenditures
Customer
Orientation
Quality Focus
Consensus
Myers-Briggs Analysis
Supervisors
Situate. Leadership
Demonstrate Core
Values
Managing Diverse
Workforce
Coaching/Counseling
Conflict Management
Change Management
Team Building
Influencing/Negotiati
ng
Human Resources
Mgmt
Branch Head (Middle
Mgr)
Asst. Program Mgr
Managers
Innovative Thinking
Program
Development
Planning & Evaluation
Model/Reinforce Core
Values
Resource Mgmt
Technology
Management
Process Oversight
Management
Mentoring
Presentation/
Marketing Skills
Risk Management
Division Head (Senior
Mgr)
Program Manager
Executives
Strategic Vision
External Awareness
Organizational
Representation &
Liaison
Directorate Head
(Senior Mgr)
Knowledge
and
Skills
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The Importance of Understanding
Technology in Corporate Leaders Really understand the business.
Understand both the technology that is driving the business today and the technology that will change the business in the future.
Treat research and development as an investment to be nurtured, rather than an expense to be minimized.
Spend more time on strategic thinking about the future as they rise higher in the corporation.
Are dedicated to solving a customer’s problem or satisfying a need, which is how [I] would define true marketing as opposed to sales.
Place a premium on innovation.
(Source: George Heilmeier, “Room for Whom at the Top?”: Promoting Technical Literacy in the Executive Suite,” The BENT of Tau Beta Pi, Spring 1994.)
The Importance of Understanding Engineers in Corporate Leaders
To the optimist, the glass is half full. To the pessimist, the glass is half empty. To the engineer, the glass is twice as big as it needs to be.
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The Importance of Understanding Engineers as Corporate Leaders
There was an engineer who had an exceptional gift for fixing all things
mechanical. After serving his company loyally for over 30 years, he happily retired.
Several years later the company contacted him regarding a seemingly impossible
problem they were having with one of their multi-million dollar machines. They
had tried everything and everyone else to get the machine to work but to no
avail.
In desperation, they called on the retired engineer who had solved so many of
their problems in the past. The engineer reluctantly took the challenge. He spent
a day studying the huge machine. Finally, at the end of the day, he marked a small
"x" in chalk on a particular component of the machine and said, "This is where
your problem is." The part was replaced and the machine worked perfectly again.
The company received a bill for $50,000 from the engineer for his service. They
demanded an itemized accounting of his charges.
The engineer responded briefly: One chalk mark $1; Knowing where to put it
$49,999.
It was paid in full and the engineer retired again in peace.
The Importance of Understanding Engineers as Corporate Leaders
Three engineering students were gathered together discussing the possible
designers of the human body. One said, "It was a mechanical engineer. Just
look at all the joints."
Another said, "No, it was an electrical engineer. The nervous system has
many thousands of electrical connections."
The last said, "Actually it was a civil engineer. Who else would run a toxic
waste pipeline through a recreational area?"
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The Importance of Understanding Engineers as Corporate Leaders
An engineer was crossing a road one day when a frog called out to him and
said, "If you kiss me, I'll turn into a beautiful princess." He bent over, picked
up the frog and put it in his pocket. The frog spoke up again and said, "If you
kiss me and turn me back into a beautiful princess, I will stay with you for
one week." The engineer took the frog out of his pocket, smiled at it and
returned it to the pocket.
The frog then cried out, "If you kiss me and turn me back into a princess, I'll
stay with you and do ANYTHING you want." Again the engineer took the
frog out, smiled at it and put it back into his pocket.
Finally, the frog asked, "What is the matter? I've told you I'm a beautiful
princess, that I'll stay with you for a week and do anything you want. Why
won't you kiss me?"
The engineer said, "Look I'm an engineer. I don't have time for a girlfriend,
but a talking frog, now that's cool."
So, what is important about leading a group of engineers?
Open-minded about people’s opinions; not force your own
Communication is key
Understanding the rewards that are valuable
Understanding how to motivate and challenge people
Knowing their competences and skills to gain respect and commitment
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Challenges to Becoming a Successful
Engineering Manager
Technical Competence
Communications
Business Skills
Management Skills
Motivation
Performance Evaluation
People (or Interpersonal) Skills – A Special Challenge
Engineers in Management (1969)
18%
18%
12% 22%
20%
10%
Survey Break-down
No regular supervisory responsibility
indirect or staff supervision
team manager
project manager
department/division/program manager
organizational (top) manager
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Figure 1.3 The engineering management education program (from Daniel L. Babcock, “B.S. and M.S. Program in
Engineering Management,” Engineering Education, November 1973, p.102).
Figure 1.4 Managing engineering and technology.
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Origins
Ancient Civilizations ◦ By 6000 B.C., walled communities with defensive
towers
◦ By 4500 B.C., first canals in eastern Iraq for crop irrigation
◦ “If a builder builds a house for a man and does not make its construction firm, and the house which he has built collapses, and causes the death of the owner of the house, that builder shall be put to death.” Babylon code
◦ By 320 B.C., Alexander the Great used a staff or council
Origins
Pre-Industrial Revolution inventions ◦ Spinning jenny (8 threads instead of one) ◦ Water frame (mills) ◦ Mule (combo of previous two) ◦ Power loom ◦ Chlorine bleach ◦ Steam engine (replaced water in factories in 1875) ◦ Screw-cutting lathe (metal not wood machines) ◦ Interchangeable manufacture (muskets, Eli Whitney)
Social/economic factors ◦ Factories…and training…and development of managers ◦ Engineering education (from apprenticeship to practitioner
to formal university training: RPI, Union, Harvard, Yale, MIT)
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Management Philosophies
Scientific Management
Administrative Management
Behaviour Management
Scientific Management
Winslow Taylor
◦ Piece rate system
◦ Differential piecework
If 3 pieces were deemed standard day’s work and the two rates were 50 and 60 cents per piece, the worker earned $1.50 for 3 pieces a day and $2.40 for four.
◦ Shoveling of sand, limestone, coke, rice coal, iron ore, etc.
Designed shovels for each type of load so that the the shovel-load was achieved (21.5 pounds)
Workers wages increased; management’s costs reduced
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Scientific Management Develop a science for each element of a man’s work, which
replaces the old rule-of-thumb method Scientifically select, then train, teach, and develop the
workmen, whereas in the past he chose his own work and trained himself as best he could.
Heartily cooperate with the men so as to insure all of the work being done in accordance with the principles of the science which has been developed.
There is an almost equal division of the work and the responsibility between the management and the workmen. The management take over all work for which they are better fitted than the workmen (defining how work is to be done), while in the past almost all of the work and the greater part of the responsibility were thrown upon the men.
--Principles of Scientific Management, 1911
Scientific Management
Gantt (1861-1919) ◦ standard day rate regardless of performance
which provided security during training or if materials were delayed
◦ Additional bonus to workers and foremen if specified daily production targets were met
◦ Project management: some function of performance vs. time
Knowledge sharing ◦ Professional societies
◦ publications
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Scientific Management
Planning and training (management)
Vs. Rote Execution (uneducated laborer of the day)
Efficiency vs. Effectiveness
Japanese competition and the idea of Total Quality Management
Administrative Management
Fayol (1841-1925) ◦ Functional groups: technical (operations),
commercial (marketing), financial, security (risk), accounting, and administration.
◦ Administration he divided into: planning/forecasting, organization, command, coordination, and control.
◦ “Young engineers are, for the most part, incapable of turning the technical knowledge received to good account because of their inability to set forth their ideas in clear, well-written reports, so compiled as to permit a clear grasp of the results of their research or the conclusions to which their observations have led them.”
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Administrative Management Max Weber (1864-1920)
◦ “bureaucracy” = rational and efficient large organization
◦ Candidates for offices are selected and appointed based on their technical ability
◦ Members of the organization owe loyalty to the office, not the individual
◦ Hierarchy defined
◦ Strict discipline and conduct demanded of officials; subordinates have a right of appeal
◦ Administrative acts, decisions, and rules must be reduced to writing
◦ The office is the primary occupation of the incumbent who is reimbursed by a fixed salary
◦ Promotion is based on judgment of superiors
◦ The official does not own the organization
Behavioural Management
Hawthorne Studies (1920-1930’s)
◦ Effect of illumination on production
◦ Effect of rest periods on production
◦ Effect of piecework pay
“Hawthorne Effect” is the tendency of persons singled out for special attention to perform as expected
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Abilene Paradox “Four adults are sitting on a porch in 104-degree heat in the small
town of Coleman, TX, some 53 miles from Abilene. They are engaging in as little motion as possible, drinking lemonade, watching the fan spin, and occasionally playing dominoes. The characters are a married couple and the wife’s parents. At some point, the wife’s father suggests they drive to Abilene to eat at a cafeteria there. The son-in-law thinks this is a crazy idea but does not see any need to upset the apple cart, so he goes along with it, as do the two women. They get in their Buick with no AC and drive through a dust storm to Abilene. They eat a mediocre lunch at the cafeteria and return to Coleman exhausted, hot, and generally unhappy about the experience. It is not until they return home that is it revealed that NONE of them really wanted to go to Abilene – they were just going along because they thought the others were eager to go.” --Dr. Jerry Harvey
Escalation of Commitment
None are in agreement but all think there is agreement
Communication
Behaviour Management
MacGregor ◦ Theory X: workers are motivated by Maslow’s
model of need hierarchy; only way to get from passiveness to organizational contribution
◦ Theory Y: management must arrange workplace conditions and operations to influence motivation
Theory Z (Ouchi, 1981) ◦ Senior manager is facilitator ◦ Middle manager is initiator and coordinator ◦ Decision by concensus ◦ Concern for employee
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Maslow’s Model of Need Hierarchy
Theory Z
Employees should be offered lifetime employment
Promotions should be based on length of service, as distinct from evaluation of immediate job performance
Individuals should not be specialized but should be moved throughout the company
Decisions should be made through a collective decision-making process
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Current Topics Innovation Strategic management Knowledge management Empowerment & leadership New product development Intellectual property management Risk management Globalization Change Ethics Entrepreneurship Quality management Something missing? Email me if you’d like to see other
topics covered…
Engineering Managers
Costa Concordia http://www.cbsnews.com/video/watch/?id=50137223n
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Situations for Discussion (Intro)
John Snyder, the EM, presented to the BoD a project based on the results generated by Steve Hill, one of his staff members. The board approved the project and praised John for the excellent work done. At that moment, John failed to mention to the board that the work was actually done by Steve. Afterwards, John felt bad about it and recommended to give Steve a bonus. How would you assess John’s handling of the situation?
Situation for Discussion (Intro)
Tom Taylor, the sales manager, was told by his superior, Carl Bauer, to take an order from a new customer for a batch of products. Both Tom and Carl knew that the products ordered would only partially meet the customer’s requirements. But Carl insisted that the order was too valuable to lose. What should Tom do?
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Situation for Discussion (Intro)
Nancy Bush, the plant manager, needs to decide whether to make or buy a component for the company’s core product. She would like the advice of her production supervisors, since they must implement her decision. However, she fears that the supervisors will be biased towards making the component in house, as they tend to favor retaining more work for their people.. What should Nancy do?