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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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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?