Principles of Industrial Engineering

The Engineer Trader on Youtube or Engr. Raniel Taripe, a Professor of Quezon City University

Lecture 5: Engineering Management: What is it?

Engineering Management

 It refers to the activity combining “technical knowledge with the ability to organize
and coordinate worker power, materials, machinery and money.
Why do we need to study ENGINEERING MANAGEMENT?
As an Industrial Engineer, we are into designing products, improving different
systems and into installation of system of MAN, MACHINE and EQUIPMENT, without
the engineering management capability and skills it will be hard for us to do our roles as
the Industrial Engineer.
COMPONENTS OF MANAGEMENT

 PLANNING – setting goals and deciding how best to achieve the specific goal
 ORGANIZING – grouping activities and resources in logical fashion.
 LEADING – involves influencing others to engage in the work behavior
necessary to reach the organizational goals
 STAFFING – determines the human resources need, recruits, select, train, and
develop human resources for a job created by an organization
 CONTROLLING – process of asserting whether organizational objectives have
been achieved.
Lecture 6: Operations Management: What is it?
Operation Management

 It is how to turn the raw material to final product or finish goods or services with
less cost.
 Is the set of activities that creates value in the form of goods or services by
transforming inputs to outputs.
Production – is the creation of good or services.
ORGANIZING TO PRODUCE GOODS AND SERVICES

 To create goods and services, all organizations perform three functions;

1. Marketing – which generates demand or at the least takes the orders for a
product or services.
2. Production or Operations – which creates the product.
3. Finance or Accounting – tracks how well the organization doing.
Why do we need to study the Operation Management?

 Operation Management is one of the major functions of any organization and it is

integrally related to all other business functions.
 We want to know how goods and services are produced.
 To understand what operation managers, do.
 Costly part of an organization.

What OPERATION MANAGERS do?

Basic Management Function

 Planning  Leading
 Organizing  Controlling
 Staffing

10 MAJOR DECISIONS IN OPERATION MANAGEMENT

1. Design of goods and services
2. Managing Quality
3. Process and Capacity Design
4. Location strategy
5. Layout strategy
6. Human Resource and Job Design
7. Supply Chain Management
8. Inventory, material requirements planning and just-in-time
9. Intermediate and short-term scheduling
10. Maintenance