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Industrial Management (2+0)

5th Semester (MGT-301)

Engr. Muhammad Faisal Mukhtar

MS MECHANICAL ENGG
BSc MECHANICAL ENGINEERING
faisal.mukhtar@wecuw.edu.pk

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 Course Description
➢ Introduction for engineering management.
➢ Planning Engineering projects.
➢ Scheduling using activity-on-node and precedence methods.
➢ Management Planning and Control
➢ Human Resource Management and Personnel Management
➢ Project Management
➢ Maintenance Management System
➢ Financial Management
➢ Material Management
➢ Marketing Management
➢ Total Quality Management (TQM)
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 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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 Course Topics Covered
1) Introduction for engineering management
2) Planning with bar chart
3) Activity-on-node and precedence diagramming
4) Time-scaled network
5) Resource leveling and allocation
6) Time-cost trade-off
7) Cash flow analysis
8) Time and cost control
9) Contractual and organizational approaches

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 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.
➢ Heizer, jay, and Render, Barry; “Operation Management”; Pearson
Education, latest Ed.
➢ Engineering Management by Dr. A. K. Gupta
➢ Engineering Management by Fraidoon Mazda

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Recommended Book

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 Structure and Policy
• Attendance
• Attendance marked as absent after 10 minutes .
• Assignments
• 5-6 Assignments and 4 class quizzes
• 50% off for late home work / Assignments
• 0 marks will be graded for copyrights.
• Examinations
• As per university policy

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 Weightage of Marks
COMPONENT OF EXAM WEIGHTAGE % TOTAL

Assignments #6 = 10%

Quizzes #4= 10%

100
Midterm Exam 25%

Semester Project #1= 10%

Final Exam 45%

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MGT 301 Industrial Management

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.

❖ 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.

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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.

❖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.

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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.

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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

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 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

oLarge and small projects demand different handling
❑Temporary
oDistinguishes projects from operations
❑Unique
oNot the same old thing

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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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