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 2ND EDITION
American Society of Engineering Management

Editors: John V. Farr, S. Jimmy Gandhi, and Donald N. Merino

Engineering Management Handbook, 2nd Edition

ISBN: 978-0-9975195-0-1

Published by:
The American Society of Engineering Management
P.O. Box 820
614 Pine Street, Ste. 206B
Rolla, MO 65401

©2016 ASEM. All rights reserved.

Printed in the United States of America. No part of this work may be reproduced or transmitted in any form or by any
means, electronic, manual, photocopying, recording, or by any information storage and retrieval system, without prior
written permission of the publisher.
ACKNOWLEDGMENTS

The American Society of Engineering Management (ASEM) and the authors and editors of this handbook
would specifically like to thank Dr. Donald N. Merino, Alexander Crombie Humphreys Chaired Professor of
Economics of Engineering Emeritus at Stevens Institute of Technology for his financial contribution that made
the writing of the 2nd edition of the Engineering Management Handbook possible. We would also like to thank
the editors Dr. John V. Farr and Dr. S. Jimmy Gandhi for their time dedicated to the handbook.
The following organization through their generosity supported the final editing and publishing:

CIMCIL Moore Stephens

Management Training & Consultancy, Belgium

Dr. He Jishan
Honorary Member of ASEM, Member of the Chinese Academy of
Engineering, Honorary President for Life of Junefield College of CSU

Old Dominion University

Dept. of ​Engineering Management & Systems Engineering
Norfolk,Virginia

TchI Innovation
Change & Innovation in Technical Environments
Training & Consultancy, Tremelo, Belgium

RS Project Management Consultancy & Training Services

Management Training & Consultancy
Philippines & UAE

URS l CH2M Oak Ridge LLC (UCOR)

Nuclear Services & Engineering​
Oak​ ​Ri​​dge, Tennessee

University of Arkansas
Department of Industrial Engineering
Fayetteville, Arkansas

University of Central Florida

Engineering Leadership & Innovation Institute (eli2)

Washington State University

Engineering and Technology Management
Voiland College of Engineering and Architecture
Online master’s and certificate program - etm.wsu.edu

We would like to also acknowledge Mr. Nakul Sharma, Graduate Student at California State University,
Northridge for helping organize and supporting the updating of the handbook. He did an outstanding job of
managing the development of this handbook. Ms. Lisa Fisher and Kristine Gallo served as the editor and lay-
out, and designed the covers, respectively. Most importantly the editors would like to thank every author who
gave of their time to support ASEM through this handbook.
Lastly, we would like to thank ASEM leadership for continuing to recognize the value of this handbook.

iii
PREFACE
Welcome to the 2nd edition of the Engineering Management Handbook. The first edition was published in
2010. Six years later we have updated much of the original material and added seven new chapters. We hope
to continue to update this handbook with plans to produce case studies as supplemental materials, include new
material, update and expand the existing material, etc.
Engineering managers have traditional been educated to work in the manufacturing sectors but now
must succeed in a world where services based industries account for most economic activity. In today’s global
business environment, engineer managers must use a wide variety of traditional engineering and leadership
skills from the fields of operations research, statistics, management, systems engineering, business, traditional
engineering, etc. There is value to having one source that can summarize many of the methods, processes, and
tools (MPTs) for mainly the practicing engineering manager.
Given this backdrop, we chose to organize this handbook into six sections:
• Historical, Professional, and Academic Perspective,
• Governance and Management of Engineering Core Competencies,
• Quantitative Methods and Modeling,
• Accounting, Financial and Economic Basis,
• Project Management and Systems Engineering, and
• Business Acumen.

There are 23 chapters that have been divided into these areas. Most of the 16 chapters in the first edition
were updated and in some cases totally rewritten. Seven new chapters were added to this edition to include
material addressing patents, intellectual property, multi-generational workers, informatics, quality, innovation,
entrepreneurship, and supply chain. The MPTs presented must be viewed as enablers of solutions and not
just a collection of traditional academic stovepipes. Like this handbook, engineering management (EM) must
evolve to remain relevant in our globally society.
This handbook is intended to serve engineering managers and a wide range of professionals in related disci-
plines to include systems engineers, software engineers, technology management, traditional engineers, etc. In
particular, this handbook should serve engineers at all levels in industry, government, and academia involved in
the management of professionals and technology. Our goals in writing in this handbook include:
• Defining the different MPTs needed by the 21st century engineering manager in support of lifelong
learning,
• Handbook for academics,
• General reference into what is EM,
• Reference for the practicing engineering manager, and
• Advance the understanding of the complexity of method, processes, and tools needed by all engineers and
technologists for our technology centric society.

Hopefully, this 2nd edition will continue to serve as a catalyst for follow-on editions. No one source can
in depth capture all of the MPTs to be a successful engineering manager. However, our goal was simply to
provide one reference that can introduce the readers to certain MPTs. Lifelong learning is the key remaining
relevant into today’s technology driven workforce.

v
 Unfortunately, like many books we had to “freeze” this edition to produce a product with many topics
still not addressed. As we were developing the handbook we realized that there are still many MPT gaps in the
handbook. For example, chapters on the following topics would greatly improve the handbook:
• Performance Appraisals and Metrics,
• Mentoring and Coaching,
• Statistical Quality Control,
• Business Operations of Technical Organization,
• Team Dynamics and Management, and
• Multinational and Multicultural Issues.

John V. Farr S. Jimmy Gandhi Donald N. Merino

California State University,
United States Military Academy Stevens Institute of Technology
Northridge

vi
TABLE OF CONTENTS

ACKNOWLEDGMENTS................................................................................................................................................................ iii

PREFACE...................................................................................................................................................................................... v

Chapter 1: Engineering Management—Past, Present, and Future...................................................................................................... 1

1.1 Introduction..................................................................................................................................................................... 2
1.1.1 Overview of Engineering Management....................................................................................................................... 2
1.1.2 The History of the Engineering Management Discipline............................................................................................. 2
1.1.3 Definition of Engineering Management...................................................................................................................... 4
1.2 Present State of the Engineering and Technology Management................................................................................... 5
1.2.1 The Connection of the Engineering Management Discipline to Other Disciplines...................................................... 5
1.2.2 Engineering Management Related Professional Societies............................................................................................ 6
1.2.3 Engineering Management Related Journals................................................................................................................ 6
1.2.4 Engineering Management Related Conferences......................................................................................................... 9
1.2.5 The Future of the Engineering Management Discipline.............................................................................................. 9
1.3 Emerging Engineering Management Related Trends, Drivers, and Challenges............................................................... 9
1.4 Engineering Management Discipline’s Knowledge Roles............................................................................................. 11
1.5 Engineering Management Discipline Stakeholder Needs............................................................................................. 12
1.6 Conclusions and Summary........................................................................................................................................... 13
1.7 References.................................................................................................................................................................... 14

Chapter 2: Professional Responsibility, Ethics, and Legal Issues........................................................................................................ 17

2.1 Introduction.................................................................................................................................................................. 18
2.1.1 Relevance and Importance........................................................................................................................................ 18
2.1.2 What are Ethics?....................................................................................................................................................... 18
2.1.3 What Constitutes Intellectual Property?.................................................................................................................. 18
2.2 Engineering Code of Conduct...................................................................................................................................... 18
2.2.1 Introduction to the NSPE Ethical Canons................................................................................................................... 18
2.2.2 Safety, Health, and Welfare of the Public.................................................................................................................. 18
2.2.3 Professional Service Only in Qualified Areas............................................................................................................. 19
2.2.4 Objective and Truthful Public Statements................................................................................................................. 19
2.2.5 Faithful Agents for Employers or Clients................................................................................................................... 19
2.2.6 Avoidance of Deceptive Acts..................................................................................................................................... 19
2.2.7 Enhancing the Profession Through Ethical Behavior................................................................................................. 19
2.3 Ethical Decision-Making............................................................................................................................................... 20
2.3.1 Introduction............................................................................................................................................................... 20
2.3.2 Utilitarian Rule........................................................................................................................................................... 20
2.3.3 Moral Rights Rule...................................................................................................................................................... 20
2.3.4 Justice Rule................................................................................................................................................................ 21
2.3.5 Practical Rule............................................................................................................................................................. 21
2.3.6 Implementing the Ethical Principles.......................................................................................................................... 21
2.4 Global Considerations in Ethical Conduct .................................................................................................................... 21
vii
 2.4.1 The Global Environment............................................................................................................................................ 21
2.4.2 Laws and Codes for International Business............................................................................................................... 22
2.4.3 Ethical Decision Making in the Global Environment.................................................................................................. 22
2.5 Protecting Employees Who Raise Ethical Issues........................................................................................................... 22
2.5.1 Introduction............................................................................................................................................................... 22
2.5.2 Creating the Right Culture......................................................................................................................................... 22
2.5.3 Sarbanes-Oxley Act.................................................................................................................................................... 23
2.6 Responsibilities for Intellectual Property...................................................................................................................... 23
2.6.1 Why Protect Intellectual Property?........................................................................................................................... 23
2.6.2 Invention Disclosure Processes.................................................................................................................................. 23
2.6.3 Patents....................................................................................................................................................................... 23
2.6.4 Copyrights.................................................................................................................................................................. 24
2.7 References.................................................................................................................................................................... 24
2.8 Other Sources of Information....................................................................................................................................... 24

Chapter 3: Management Theory and Concepts ................................................................................................................................. 25

3.1 Introduction.................................................................................................................................................................. 26
3.2 Historical Perspective................................................................................................................................................... 26
3.3 Scientific Management................................................................................................................................................. 27
3.4 The Bureaucracy.......................................................................................................................................................... 27
3.4.1 A Critique.................................................................................................................................................................. 28
3.5 Behavioral Approaches................................................................................................................................................. 29
3.6 Quantitative Methods ................................................................................................................................................. 29
3.7 Summary...................................................................................................................................................................... 29
3.8 Attempts at Integration................................................................................................................................................ 30
3.9 What Is Working?........................................................................................................................................................ 30
3.10 Conclusion ................................................................................................................................................................. 31
3.11 References ................................................................................................................................................................. 31

Chapter 4: Managing Knowledge Workers......................................................................................................................................... 33

4.1 Introduction.................................................................................................................................................................. 34
4.1.1 Attempts at Integration............................................................................................................................................. 34
4.1.2 Summary................................................................................................................................................................... 35
4.2 How It All Works Together............................................................................................................................................ 35
4.2.1 The “Integrated” Part................................................................................................................................................ 35
4.2.2 The External Environment ........................................................................................................................................ 36
4.2.3 The Internal Environment ......................................................................................................................................... 37
4.2.4 Management Systems............................................................................................................................................... 37
4.2.5 Organizational Structure............................................................................................................................................ 37
4.2.6 People (Orientation).................................................................................................................................................. 37
4.2.7 The Model................................................................................................................................................................. 38
4.3 The “People” Orientation............................................................................................................................................. 38
4.3.1 Background on Behavioral Approaches..................................................................................................................... 38
4.3.2 McGregor’s Theory X and Theory Y........................................................................................................................... 39
4.3.3 Maslow’s Hierarchy of Human Needs ....................................................................................................................... 39
4.3.4 Herzberg’s Motivators and Hygienes......................................................................................................................... 40
4.3.5 McClelland’s Need to Achieve................................................................................................................................... 41
4.3.6 Pink’s Motivational Concepts.................................................................................................................................... 42
4.3.7 B. F. Skinner’s Operant Conditioning Theory.............................................................................................................. 42
4.3.8 Multiple Generations in the Workplace.................................................................................................................... 43
4.3.9 Summary.................................................................................................................................................................... 44
4.4 People Orientation—Team Management ..................................................................................................................... 44
viii
4.4.1 Likert—An Integrating Principle.................................................................................................................................. 45
4.4.2 Characteristics of High Producing Organizations........................................................................................................45
4.4.3 Characteristics of Low Producing Organizations ........................................................................................................45
4.4.4 Team Management..................................................................................................................................................... 46
4.4.5 Likert’s System IV........................................................................................................................................................ 48
4.4.6 Blake and Mouton’s Managerial Grid......................................................................................................................... 49
4.4.7 The Managerial Grid .................................................................................................................................................. 50
4.5 Summary....................................................................................................................................................................... 51
4.6 References .................................................................................................................................................................... 51

Chapter 5: Types of Intellectual Property .......................................................................................................................................... 53

5.1 Introduction.................................................................................................................................................................. 54
5.2 Copyrights..................................................................................................................................................................... 54
5.3 Trademarks.................................................................................................................................................................... 55
5.4 Trade Secrets................................................................................................................................................................ 56
5.5 Patents.......................................................................................................................................................................... 57
5.6 Obtaining a Patent........................................................................................................................................................ 60
5.7 Design Patents.............................................................................................................................................................. 61
5.8 Plant Patents................................................................................................................................................................. 61
5.9 Utility Patents............................................................................................................................................................... 61
5.10 Major Elements of Patent Application........................................................................................................................ 62

Chapter 6: What is a Patent?.............................................................................................................................................................. 65

6.1 Where Patents are Held................................................................................................................................................ 66
6.2 What are the Laws and Rules in the U.S.?.................................................................................................................... 67
6.3 The Courts.................................................................................................................................................................... 69
6.4 Reading a Patent........................................................................................................................................................... 71
6.4.1 Sample Drawing......................................................................................................................................................... 74
6.4.2 Typical First Two Pages of the Specification.............................................................................................................. 75
6.4.3 Claims Section........................................................................................................................................................... 79
6.5 What Can You Do with a Patent?.................................................................................................................................. 80

Chapter 7: Leading Individuals and Engineering Project Teams ........................................................................................................ 83

7.1 Introduction ................................................................................................................................................................. 84
7.2 The Leader.................................................................................................................................................................... 84
7.3 Leading Individuals....................................................................................................................................................... 85
7.4 Leading Teams.............................................................................................................................................................. 87
7.4.1 Forming..................................................................................................................................................................... 87
7.4.2 Storming.................................................................................................................................................................... 87
7.4.3 Norming..................................................................................................................................................................... 88
7.4.4 Performing................................................................................................................................................................. 88
7.4.5 Adjourning................................................................................................................................................................. 88
7.5 Leading......................................................................................................................................................................... 88
7.6 A Leadership Development Model ............................................................................................................................. 89
7.6.1 Assessment................................................................................................................................................................ 89
7.6.2 Challenge .................................................................................................................................................................. 90
7.6.3 Support...................................................................................................................................................................... 90
7.7 Closing Thoughts.......................................................................................................................................................... 91
7.8 References.................................................................................................................................................................... 91

ix
 Chapter 8: Managing the Multi-Generational Knowledge Based Workforce..................................................................................... 93
8.1 Introduction ................................................................................................................................................................. 94
8.1.1 Overview................................................................................................................................................................... 94
8.2 Generations.................................................................................................................................................................. 94
8.2.1 Baby Boomers............................................................................................................................................................ 95
8.2.2 Generation X (Gen X’ers)........................................................................................................................................... 95
8.2.3 Generation Y (Gen Y)................................................................................................................................................. 96
8.3 Management Impacts................................................................................................................................................... 96
8.3.1 Baby Boomers............................................................................................................................................................ 96
8.3.2 Generation X.............................................................................................................................................................. 96
8.3.3 Generation Y.............................................................................................................................................................. 97
8.4 Management Strategies for Leaders and Followers..................................................................................................... 97
8.5 Optional Content Commitment ................................................................................................................................... 97
8.5.1 Commitment and the Generations............................................................................................................................ 98
8.6 Recommendations for the Management Discipline..................................................................................................... 99
8.6.1 Understanding........................................................................................................................................................... 99
8.6.2 Bias............................................................................................................................................................................ 99
8.7 References.................................................................................................................................................................. 100

Chapter 9: Operations Research....................................................................................................................................................... 105

9.1 Introduction to Operations Research Modeling......................................................................................................... 106
9.1.1 Importance of Operations Research for Engineering Managers.............................................................................. 106
9.1.2 History of Operations Research............................................................................................................................... 106
9.1.3 Operations Research Methodology......................................................................................................................... 106
9.2 Deterministic Models ................................................................................................................................................ 108
9.2.1 Linear Programming................................................................................................................................................ 108
9.2.2 Basic Problem Formulation...................................................................................................................................... 108
9.2.3 Sensitivity Analysis.................................................................................................................................................. 110
9.2.4 Duality Theory......................................................................................................................................................... 111
9.2.5 Applications............................................................................................................................................................. 112
9.2.6 Integer Programming............................................................................................................................................... 112
9.2.7 Solution Techniques................................................................................................................................................. 113
9.2.8 Binary and Auxiliary Binary Variable........................................................................................................................ 113
9.2.9 Applications............................................................................................................................................................. 113
9.3 Non-Linear Programming........................................................................................................................................... 113
9.3.1 Solution Techniques................................................................................................................................................. 113
9.3.2 Separable Programming.......................................................................................................................................... 113
9.3.3 Applications ............................................................................................................................................................ 114
9.4 Dynamic Programming............................................................................................................................................... 114
9.4.1 Solution Techniques................................................................................................................................................. 114
9.4.2 Applications............................................................................................................................................................. 114
9.5 Stochastic Models ...................................................................................................................................................... 115
9.5.1 Markov Chains......................................................................................................................................................... 115
9.5.2 Discrete-time Markov Chains.................................................................................................................................. 115
9.5.3 Semi-Markov Processes........................................................................................................................................... 117
9.5.4 Queuing Theory....................................................................................................................................................... 118
9.5.5 Stability of Queues................................................................................................................................................119
9.5.6 Little’s Rule............................................................................................................................................................119
9.5.7 Single-Server Single-Channel Queues....................................................................................................................119
9.5.8 Multiple-Server Queues........................................................................................................................................121
9.6 Advanced and Other Topics......................................................................................................................................121
9.6.1 Meta-heuristics......................................................................................................................................................121
x
9.6.2 Advanced Stochastic Models................................................................................................................................122
9.6.3 Brownian Motion...................................................................................................................................................124
9.6.4 Discrete-Event Simulation.....................................................................................................................................125
9.7 Big Data and Operations Research...........................................................................................................................126
9.7.1 An Introduction to Big Data and the Internet of Things........................................................................................126
9.7.2 Big Data Value Chain..............................................................................................................................................127
9.7.3 Big Data Case Studies............................................................................................................................................128
9.8 References ............................................................................................................................................................... 128

Chapter 10: Simulation............................................................................................................................................................131

10.1 Introduction ............................................................................................................................................................. 132
10.1.1 Importance of Simulation..................................................................................................................................... 132
10.1.2 Key Terms of Simulation ...................................................................................................................................... 133
10.1.3 Simulation Theory for Engineers.......................................................................................................................... 134
10.1.4 Simulation Applications for Engineers.................................................................................................................. 134
10.1.5 Simulation Engineering......................................................................................................................................... 135
10.1.6 Modeling and Simulation as a Discipline............................................................................................................... 135
10.2 Simulation Theory.................................................................................................................................................... 136
10.2.1 Mathematical Foundations................................................................................................................................... 136
10.2.2 Computer Science Foundations............................................................................................................................ 138
10.2.3 Discrete Event Simulation..................................................................................................................................... 139
10.2.4 Data Analysis........................................................................................................................................................ 141
10.2.5 Monte-Carlo Simulation and Continuous Simulation........................................................................................... 141
10.3 Simulation Applications .......................................................................................................................................... 143
10.3.1 Simulation as an Engineering Method.................................................................................................................. 143
10.3.2 Simulation with ARENA........................................................................................................................................ 145
10.3.3 Agent-based Modeling......................................................................................................................................... 146
10.3.4 Simulation and Systems Engineering Models........................................................................................................ 148
10.4 References................................................................................................................................................................ 149

Chapter 11: Decision Analysis.................................................................................................................................................151

11.1 Introduction ............................................................................................................................................................. 152
11.1.1 What is Decision Analysis?................................................................................................................................... 152
11.1.2 Why Use Decision Analysis?................................................................................................................................. 152
11.1.3 When Do You Use Decision Analysis?................................................................................................................... 152
11.1.4 Who Uses Decision Analysis? .............................................................................................................................. 152
11.2 Decision Processes................................................................................................................................................... 153
11.2.1 Challenges ............................................................................................................................................................ 153
11.2.2 Analytical Process.................................................................................................................................................. 153
11.2.3 Decision Conference Process................................................................................................................................. 153
11.2.4 Dialog Decision Process......................................................................................................................................... 154
11.2.5 Advantages and Disadvantages of Decision Processes.......................................................................................... 155
11.3 Decision Elements.................................................................................................................................................... 155
11.3.1 Values and Outcomes ........................................................................................................................................... 155
11.3.2 Uncertainty ........................................................................................................................................................... 155
11.3.3 Decisions ............................................................................................................................................................... 156
11.4 Decision Modeling—Illustrative Product Development Example............................................................................. 156
11.4.1 Basic Influence Diagram ....................................................................................................................................... 156
11.4.2 Basic Decision Tree ............................................................................................................................................... 156
11.4.3 Basic Risk Profile.................................................................................................................................................... 157
11.4.4 Value of a Test ....................................................................................................................................................... 158
11.4.5 Value of Imperfect Information about Market Success ....................................................................................... 159
xi
 11.4.6 Value of Perfect Information About Market Success ............................................................................................ 160
11.4.7 Value of Control..................................................................................................................................................... 161
11.4.8 Sensitivity Analysis................................................................................................................................................ 161
11.4.9 Comparison of Influence Diagrams and Decision Trees ........................................................................................ 161
11.5 Single Attribute Utility.............................................................................................................................................. 161
11.5.1 Utility .................................................................................................................................................................... 161
11.5.2 Risk Preference ..................................................................................................................................................... 162
11.5.3 Utility with Decision Trees .................................................................................................................................... 162
11.6 Multiple Objective Decision Analysis (MODA).......................................................................................................... 162
11.6.1 Additive Value Model............................................................................................................................................ 162
11.6.2 Value Functions .................................................................................................................................................... 163
11.6.3 Swing Weights ...................................................................................................................................................... 163
11.6.4 Swing Weight Matrix ............................................................................................................................................. 164
11.6.5 Multiple Objective Decision Analysis with Decision Trees .................................................................................... 165
11.7 Role of Engineering Manager................................................................................................................................... 165
11.8 Advanced and Other Topics...................................................................................................................................... 166
11.9 References................................................................................................................................................................ 166

Chapter 12: Multi-Criteria Analysis.........................................................................................................................................169

12.1 Introduction to Multi-Criteria Analysis .................................................................................................................... 170
12.1.1 Background............................................................................................................................................................ 170
12.1.2 Overview of Multi-Criteria Analysis....................................................................................................................... 170
12.1.3 Relevance of MCA to Engineering Management................................................................................................... 170
12.2 Analytic Hierarchy Process....................................................................................................................................... 171
12.2.1 Overview of Analytic Hierarchy Process................................................................................................................ 171
12.2.2 The AHP Process................................................................................................................................................... 171
12.2.3 Advantages and Limitations of AHP as a Multi-Criteria Tool................................................................................. 174
12.2.4 Conclusion............................................................................................................................................................. 175
12.3 Analytic Network Process......................................................................................................................................... 175
12.3.1 Overview of Analytic Network Process.................................................................................................................. 175
12.3.1.1 ANP Structure..................................................................................................................................................... 175
12.3.2 The ANP Process.................................................................................................................................................... 175
12.3.4 Benefits and Limitations of ANP as a Multi-Criteria Tool ...................................................................................... 178
12.3.3 Conclusion ............................................................................................................................................................ 178
12.4 Multi-Attribute Analysis (MAA)................................................................................................................................ 179
12.4.1 Overview............................................................................................................................................................... 179
12.4.2 The Multi-Attribute Analysis (MAA) Process......................................................................................................... 179
12.4.3 Utility Theory (Utility Analysis).............................................................................................................................. 180
12.4.4 Conclusion............................................................................................................................................................. 181
12.5 References................................................................................................................................................................ 182

Chapter 13: Engineering Informatics – State of the Art and Future Trends............................................................................183
13.1 Introduction ............................................................................................................................................................. 184
13.2 Overview of Engineering Information Integration.................................................................................................... 187
13.2.1 IIIE-A New Discipline of Industrial Information Integration.................................................................................... 187
13.2.2 Engineering Integration......................................................................................................................................... 188
13.3 Enabling Technologies.............................................................................................................................................. 191
13.3.1 Business Process Management............................................................................................................................. 191
13.3.2 Information Integration and Interoperability........................................................................................................ 194
13.3.3 Enterprise Architecture and Enterprise Application Integration........................................................................... 195
13.3.4 Service-oriented Architecture (SOA)..................................................................................................................... 196
13.4 Summary and Challenges......................................................................................................................................... 196
xii 13.5 References................................................................................................................................................................ 197
Chapter 14: Basic Accounting and Finance.............................................................................................................................199
14.1 Introduction ............................................................................................................................................................. 200
14.1.1 Importance of Accounting to Engineers................................................................................................................ 200
14.1.2 Accounting and Engineering Economics................................................................................................................ 200
14.1.3 What is Accounting? ............................................................................................................................................. 200
14.1.4 Users of Accounting Information .......................................................................................................................... 200
14.2 Basic Accounting....................................................................................................................................................... 200
14.2.1 Introduction........................................................................................................................................................... 200
14.2.2 Financial Accounting.............................................................................................................................................. 201
14.2.3 Transactions........................................................................................................................................................... 202
14.2.4 Financial Condition................................................................................................................................................ 202
14.2.5 Financial Statement Terminology.......................................................................................................................... 202
14.2.6 Financial Performance........................................................................................................................................... 204
14.2.7 Accounting Equation.............................................................................................................................................. 204
14.3 Income Statement.................................................................................................................................................... 204
14.3.1 Introduction........................................................................................................................................................... 204
14.3.2 The Income Statement......................................................................................................................................... 205
14.4 Balance Sheet........................................................................................................................................................... 206
14.4.1 Introduction............................................................................................................................................................ 206
14.4.2 The Balance Sheet................................................................................................................................................. 206
14.5 Stockholder’s (Owner’s) Equity................................................................................................................................ 209
14.5.1 Introduction........................................................................................................................................................... 209
14.5.2 Stockholder’s Equity.............................................................................................................................................. 210
14.5.3 Paid-In Capital ....................................................................................................................................................... 210
14.5.4 Retained Earnings.................................................................................................................................................. 211
14.5.5 Example of Retained Earnings .............................................................................................................................. 211
14.6 Cash Flow Statement................................................................................................................................................ 211
14.6.1 Introduction........................................................................................................................................................... 211
14.6.2 The Cash Flow Statement...................................................................................................................................... 212
14.6.3 Example of Cash Flow Statement.......................................................................................................................... 213
14.7 Depreciation............................................................................................................................................................. 214
14.7.1 Introduction........................................................................................................................................................... 214
14.7.2 Depreciation Terminology..................................................................................................................................... 214
14.7.3 Depreciation Methods........................................................................................................................................... 215
14.7.4 Gains and Losses from the Disposal of Assets....................................................................................................... 217
14.8 After Tax Analysis...................................................................................................................................................... 217
14.8.1 Introduction .......................................................................................................................................................... 217
14.8.2 After Tax Analysis and Cash Flow.......................................................................................................................... 218
14.8.3 After Tax Cash Flow from Depreciation Charges.................................................................................................... 218
14.8.4 After Tax Cash Flow from Investment Tax Credit .................................................................................................. 218
14.8.5 After Tax Cash Flows from Loans........................................................................................................................... 219
14.9 Accounting Process................................................................................................................................................... 219
14.9.1 Introduction........................................................................................................................................................... 219
14.9.2 The Accounting Process......................................................................................................................................... 219
14.9.3 Double Entry Accounting....................................................................................................................................... 219
14.10 Financial and Managerial Accounting..................................................................................................................... 220
14.10.1 Introduction......................................................................................................................................................... 220
14.10.2 Breakeven Analysis.............................................................................................................................................. 220
14.10.3 Contribution Margin............................................................................................................................................ 221
14.10.4 Contribution Margin Ratio................................................................................................................................... 221
14.10.5 Breakeven Sales in Dollars................................................................................................................................... 221
14.10.6 Target Net Profit.................................................................................................................................................. 222
xiii
 14.10.7 Sales to Achieve Target Return on Sales.............................................................................................................. 222
14.10.8 Degree of Operating Leverage............................................................................................................................. 222
14.11 Advanced and Other Topics.................................................................................................................................... 222
14.12 Summary................................................................................................................................................................ 223
14.13 References.............................................................................................................................................................. 223

Chapter 15: Engineering Economics........................................................................................................................................225

15.1 Capital Expenditures................................................................................................................................................. 226
15.1.1 Importance of Capital............................................................................................................................................ 226
15.1.2 Capital Selection Process....................................................................................................................................... 226
15.1.3 Minimum Attractive Rate of Return ...................................................................................................................... 226
15.2 Mathematics of Finance........................................................................................................................................... 226
15.2.1 Rates of Return....................................................................................................................................................... 226
15.2.2 Simple and Compound Interest ............................................................................................................................ 226
15.2.3 Effective Interest Rates.......................................................................................................................................... 229
15.2.4 Compounding and Discounting............................................................................................................................. 230
15.2.5 Cash Flow Patterns................................................................................................................................................ 230
15.2.6 Loan Programs and Personal Finance..................................................................................................................... 232
15.3 Figures of Merit (FoM).............................................................................................................................................. 232
15.3.1 Present Worth ....................................................................................................................................................... 232
15.3.2 Annual Worth........................................................................................................................................................ 233
15.3.3 Future Worth......................................................................................................................................................... 233
15.3.4 Capital Recovery.................................................................................................................................................... 234
15.3.5 Capitalized Cost..................................................................................................................................................... 234
15.3.6 Internal Rate of Return (IRR) ................................................................................................................................ 235
15.3.7 Benefit Cost Analysis (BCA)................................................................................................................................... 235
15.4 Retirements and Replacements................................................................................................................................ 237
15.4.1 Types of Retirement and Replacement Problems................................................................................................. 237
15.4.2 Total Costs and Economic Life................................................................................................................................ 237
15.4.3 Capitalized Costs.................................................................................................................................................... 238
15.4.4 Operating and Maintenance Costs........................................................................................................................ 239
15.5 Inflation.................................................................................................................................................................... 240
15.5.1 Causes of Inflation.................................................................................................................................................. 240
15.5.2 Types of Inflation................................................................................................................................................... 240
15.5.3 Using Price Indices................................................................................................................................................. 241
15.5.4 Inflation and MARR............................................................................................................................................... 241
15.5.5 Cash Flows and Inflation........................................................................................................................................ 241
15.5.6 Common Problems Relating to Inflation................................................................................................................ 242
15.6 After Tax Analysis...................................................................................................................................................... 242
15.6.1 Net Cash Flow from Operating Activities .............................................................................................................. 243
15.6.2 Net Cash Flow from Capital Related Line............................................................................................................... 243
15.6.3 After Tax Cash Flow from Depreciation Charges.................................................................................................... 244
15.6.4 After Tax Cash Flow from Investment Tax Credit .................................................................................................. 244
15.6.5 After Tax Cash Flows from Loans........................................................................................................................... 244
15.6.6 After Tax Cash Flow for Salvage/Disposal of Assets .............................................................................................. 245
15.6.7 Total Cash Flow Discounted................................................................................................................................... 245
15.6.8 ATA Example.......................................................................................................................................................... 245
15.7 Decision Analysis..................................................................................................................................................... 248
15.7.1 Types of Problems................................................................................................................................................. 248
15.7.2 Choosing Among Alternatives Using ATA............................................................................................................... 248
15.7.3 Decision Model...................................................................................................................................................... 249
15.8 References................................................................................................................................................................ 250
xiv
Chapter 16: Project Management’s Role in Engineering Management..................................................................................251
16.1 Introduction.............................................................................................................................................................. 252
16.2 Project Management................................................................................................................................................ 252
16.2.1 Initiating Processes................................................................................................................................................ 254
16.2.2 Planning Processes................................................................................................................................................ 255
16.2.3 Executing Processes............................................................................................................................................... 259
16.2.4 Monitoring and Controlling Processes.................................................................................................................. 259
16.2.5 Closing Processes................................................................................................................................................... 263
16.3 Summary.................................................................................................................................................................. 263
16.4 References................................................................................................................................................................ 264

Chapter 17: Systems Engineering............................................................................................................................................265

17.1 Introduction.............................................................................................................................................................. 266
17.1.1 What is Systems Engineering?............................................................................................................................... 266
17.1.2 Why Did Systems Engineering Originate?............................................................................................................. 267
17.1.3 The Systems Engineering Lifecycle....................................................................................................................... 268
17.1.4 The Role of Systems Modeling and Systems Simulation........................................................................................ 270
17.2 Stakeholder Requirements Definition...................................................................................................................... 270
17.2.1 Use Cases and Scenarios....................................................................................................................................... 271
17.2.2 Performance Criteria............................................................................................................................................. 271
17.2.3 Inputs and Outputs................................................................................................................................................ 271
17.2.4 Conclusions............................................................................................................................................................ 272
17.3 Requirements Analysis............................................................................................................................................. 273
17.4 Architectural Design................................................................................................................................................. 274
17.5 Implementation........................................................................................................................................................ 274
17.5.1 Intermediate Specifications................................................................................................................................... 275
17.5.2 Peer Reviews......................................................................................................................................................... 275
17.5.3 Quality Inspections................................................................................................................................................ 276
17.6 Integration................................................................................................................................................................ 276
17.6.1 Big Bang Approach................................................................................................................................................ 276
17.6.2 Bottom-Up Approach............................................................................................................................................ 277
17.7 Verification............................................................................................................................................................... 277
17.7.1 Inspection.............................................................................................................................................................. 277
17.7.2 Demonstration....................................................................................................................................................... 278
17.7.3 Analysis.................................................................................................................................................................. 278
17.7.4 Test........................................................................................................................................................................ 278
17.8 Transition.................................................................................................................................................................. 278
17.9 Validation.................................................................................................................................................................. 278
17.10 Operation and Maintenance.................................................................................................................................. 278
17.11 Disposal.................................................................................................................................................................. 279
17.12 Conclusions............................................................................................................................................................. 279
17.13 References.............................................................................................................................................................. 280

Chapter 18: Systems Thinking.................................................................................................................................................281

18.1 Introduction ............................................................................................................................................................. 282
18.1.1 Changing Domain for Engineering Managers........................................................................................................ 283
18.1.2 Systems Thinking Challenges for Engineering Managers....................................................................................... 285
18.1.3 Implications of Systems Thinking (ST) for Engineering Management (EM)........................................................... 286
18.2 Overview of Systems Thinking ................................................................................................................................. 287
18.2.1 Nature of Systems Thinking................................................................................................................................... 287
18.2.2 Hard and Soft Systems Thinking............................................................................................................................ 288
18.2.3 Roles for Systems Thinking in Engineering Management....................................................................................... 290
xv
 18.3 Philosophy and Central Concepts for Systems Thinking .......................................................................................... 291
18.3.1 Philosophical Basis for Systems Thinking............................................................................................................... 291
18.3.2 Foundation Principles for Systems Thinking.......................................................................................................... 292
18.4.3 Using the Foundations for Systems Thinking......................................................................................................... 299
18.4 Systems Thinking: Dealing with Complexity ............................................................................................................ 300
18.4.1 Nature and Challenge of Complexity for Engineering Managers........................................................................... 300
18.5 Systems Thinking Capacity for Engineering Managers............................................................................................. 301
18.6 Systems Thinking as a Responsive Strategy for Dealing with Complexity................................................................. 303
18.7 Methods and Tools for Systems Thinking ................................................................................................................ 304
18.7.1 Role of Tools for Systems Thinking........................................................................................................................ 305
18.7.2 Taxonomy of Tools for Systems Thinking............................................................................................................... 308
18.7.3 Selected Tools for Systems Thinking...................................................................................................................... 309
18.8 Systems Thinking Implications for Engineering Management ................................................................................ 309
18.8.1 Using Systems Thinking in Engineering Management........................................................................................... 309
18.8.2 Limitations for Systems Thinking........................................................................................................................... 310
18.9 Conclusion ............................................................................................................................................................... 311
18.10 References ............................................................................................................................................................. 313

Chapter 19: Risk Management................................................................................................................................................317

19.1 Introduction ............................................................................................................................................................. 318
19.1.1 What are Risks, Hazards and Accidents?............................................................................................................... 318
19.1.2 Why is Managing Risk Important for Engineering Managers?............................................................................... 319
19.1.3 What is Risk Management?................................................................................................................................... 319
19.1.4 What Are the Basic Activities in Risk Management?............................................................................................. 320
19.2 Scenario Identification ............................................................................................................................................. 321
19.2.1 Identify Desired Scenarios..................................................................................................................................... 322
19.2.2 Identify Risk Scenarios........................................................................................................................................... 322
19.2.3 Characterize Risk Scenarios Via Causalities and Correlation................................................................................. 322
19.3 Consequence and Likelihood Estimation.................................................................................................................. 326
19.3.1 Consequence Estimation....................................................................................................................................... 326
19.3.2 Likelihood Estimation............................................................................................................................................ 326
19.4 Risk Ranking.............................................................................................................................................................. 328
19.4.1 Risk Ranking Using Consequence and Likelihood.................................................................................................. 328
19.4.2 Risk Ranking Using Other Properties..................................................................................................................... 328
19.5 Generation and Tradeoff of Mitigation Alternatives................................................................................................. 329
19.5.1 Mitigation Strategies............................................................................................................................................. 329
19.5.2 As Low As Reasonably Practicable......................................................................................................................... 330
19.5.3 Comparative Analysis for Tradeoffs....................................................................................................................... 331
19.5.3 Analytic Hierarchy Process (AHP).......................................................................................................................... 332
19.6 Potential Problem Analysis....................................................................................................................................... 333
19.6.1 Stone-in-the-Pond Analogy................................................................................................................................... 333
19.7 Implementation, Documentation and Monitoring................................................................................................... 333
19.7.1 The Need for Documentation and Monitoring...................................................................................................... 333
19.7.2 Lessons Learned for the Engineering Managers.................................................................................................... 333
19.8 Advanced and Other Topics..................................................................................................................................... 334
19.9 References................................................................................................................................................................ 335

Chapter 20: What is Quality Management?............................................................................................................................337

20.1 A Definition of Quality Management........................................................................................................................ 338
20.2 A Brief History of Quality Management................................................................................................................... 338
20.3 Quality Planning....................................................................................................................................................... 345
20.4 Quality Assurance..................................................................................................................................................... 348
xvi
20.5 Quality Control......................................................................................................................................................... 349
20.6 Quality Improvement............................................................................................................................................... 349
20.7 The Seven Quality Tools............................................................................................................................................ 352
20.7.1 Process Maps......................................................................................................................................................... 352
20.7.2 Checklists............................................................................................................................................................... 353
20.7.3 Histograms............................................................................................................................................................. 353
20.7.4 Pareto Charts......................................................................................................................................................... 353
20.7.5 Ishikawa Diagrams................................................................................................................................................. 355
20.7.6 Control Charts........................................................................................................................................................ 356
20.7.7 Scatter Charts........................................................................................................................................................ 357
20.8 Quality Leadership and Teams.................................................................................................................................. 358
20.9 References................................................................................................................................................................ 359

Chapter 21: Strategic Management........................................................................................................................................361

21.1 Introduction ............................................................................................................................................................. 362
21.1.1 Importance of Strategic Management to Engineering Managers......................................................................... 362
21.1.2 What is Strategic Management? .......................................................................................................................... 362
21.2 Strategic Management Process................................................................................................................................ 363
21.2.1 Introduction............................................................................................................................................................ 363
21.2.2 Core of the Strategic Management Process.......................................................................................................... 363
21.2.3 Strategic Management Process Functions............................................................................................................. 365
21.2.4 Setting Strategic Intent Through Strategic Planning.............................................................................................. 366
21.2.5 Deploying the Strategic Intent............................................................................................................................... 368
21.2.6 Setting Strategy Through Implementation Planning.............................................................................................. 369
21.2.7 Deploying Resources............................................................................................................................................. 371
21.2.8 Executing the Strategy........................................................................................................................................... 372
21.2.9 Deploying Results.................................................................................................................................................. 374
21.2.10 Reviewing Performance Through Performance Evaluation................................................................................. 376
21.2.11 Deploying Learnings............................................................................................................................................ 376
21.3 Bibliography and References.................................................................................................................................... 377

Chapter 22: Innovation and Entrepreneurship .......................................................................................................................379

22.1 Introduction.............................................................................................................................................................. 380
22.2 Entrepreneurial Mindset and Qualities of an Entrepreneur..................................................................................... 380
22.2.1 So What Exactly is Entrepreneurial Mindset?........................................................................................................ 380
22.3 Functions of an Entrepreneur................................................................................................................................... 381
22.4 Intrapreneur............................................................................................................................................................. 382
22.4.1 Differences between Entrepreneur and Intrapreneur........................................................................................... 382
22.5 Innovation and Its Importance in Entrepreneurship................................................................................................ 383
22.6 Innovation: The Likely Cause of Successful Sustainable Businesses........................................................................ 385
22.6.1 Types of Innovation............................................................................................................................................... 385
22.6.2 Factors Affecting Innovation.................................................................................................................................. 386
22.7 Metrics to Measure Innovation................................................................................................................................ 386
22.8 The Design Thinking Process.................................................................................................................................... 387
22.9 The Entrepreneurial Process.................................................................................................................................... 388
22.10 How Can Small/Medium Enterprises (SMEs) Incorporate Innovation.................................................................... 389
22.11 Continuous Improvement....................................................................................................................................... 390
22.12 Competitive Advantages for the U.S....................................................................................................................... 391
22.13 References ............................................................................................................................................................. 391

Chapter 23: Supply Chain Management for Engineering Managers ......................................................................................393

23.1 Introduction.............................................................................................................................................................. 394
xvii
 23.1.1 Definition of a Supply Chain.................................................................................................................................. 394
23.2 Supply Chain Management...................................................................................................................................... 395
23.3 Lean Supply Chain.................................................................................................................................................... 396
23.4 Importance of Supply Chain Management for Industries........................................................................................ 397
23.5 Supply Chain Management Risks.............................................................................................................................. 398
23.5.1 Definition............................................................................................................................................................... 398
23.5.2 Risks....................................................................................................................................................................... 398
23.6 Role of Engineers in the Supply Chain...................................................................................................................... 401
23.7 Application of Supply Chain in Industries................................................................................................................. 401
23.7.1 Examples................................................................................................................................................................ 401
23.7.2 Best Practices in Supply Chain Management......................................................................................................... 402
23.8 Innovation in Supply Chain Management................................................................................................................ 403
23.9 Conclusion................................................................................................................................................................ 403
23.10 References.............................................................................................................................................................. 404

Author Biographies .................................................................................................................................................................407

xviii
LIST OF FIGURES

Chapter 1
Figure 1.1. Management and Educational Trends That Have Affected the EM Field..........................................................4
Figure 1.2. Engineering Management as the Bridge Between Engineering and Management..........................................6
Figure 1.3. Challenges for the Technical Organization and Engineering Manager............................................................11
Figure 1.4. Five Knowledge Roles of the EM Discipline....................................................................................................12

Chapter 2
Figure 2.1. Organizational Stakeholders...........................................................................................................................20

Chapter 4
Figure 4.1. The Five Elements of the Integrated Management Model.............................................................................36
Figure 4.2. Maslow’s Hierarchy of Human Needs............................................................................................................39
Figure 4.3. Traditional Organization Structure.................................................................................................................47
Figure 4.4. Team-Based Organization..............................................................................................................................48
Figure 4.5. Likert’s Basic Model.......................................................................................................................................49
Figure 4.6. The Managerial Grid......................................................................................................................................50

Chapter 6
Figure 6.1. Page of U.S. Patent.........................................................................................................................................71
Figure 6.2. Sample Drawing for a U.S. Patent...................................................................................................................74
Figure 6.3. Typical Pages of the Specifications.................................................................................................................76
Figure 6.4. Claims Section of a Patent..............................................................................................................................79

Chapter 9
Figure 9.1. Operations Research Methodology..............................................................................................................107
Figure 9.2. Basic Linear Programming Formulations......................................................................................................108
Figure 9.3. Feasible Region and Iso-Objective Lines.......................................................................................................109
Figure 9.4. Corner Point Optimal Solution......................................................................................................................110
Figure 9.5. Dual Linear Programs for Basic Linear Programs..........................................................................................112
Figure 9.6. Piecewise Approximation to a Non-linear Function.....................................................................................114
Figure 9.7. Big Data Value Chain.....................................................................................................................................127

Chapter 10
Figure 10.1. Modeling and Simulation as a Discipline....................................................................................................135
Figure 10.2. Visualization of the Principle of the Inverse Transform Method/Algorithm...............................................138
Figure 10.3. Time Advance in Discrete Event Simulation...............................................................................................140
Figure 10.4. Phases for Conducting a Study as Recommended in the NATO COBP........................................................144
Figure 10.5. Executing an ARENA Model.........................................................................................................................145
Figure 10.6. Architectural Frame Addressing Main Agent Characteristics......................................................................147
Figure 10.7. Agents, Environment, and Societies...........................................................................................................148

xix
 Chapter 11
Figure 11.1. Decision Conference...................................................................................................................................154
Figure 11.2. Dialog Decision Process..............................................................................................................................154
Figure 11.3. Basic Influence Diagram.............................................................................................................................156
Figure 11.4. Basic Decision Tree.....................................................................................................................................157
Figure 11.5. Basic Cumulative Risk Profile......................................................................................................................157
Figure 11.6. Influence Diagram with Test.......................................................................................................................158
Figure 11.7. Decision Tree with Test...............................................................................................................................158
Figure 11.8. Influence Diagram with Test and Market Survey........................................................................................159
Figure 11.9. Probability Calculations..............................................................................................................................159
Figure 11.10. Decision Tree with Test and Market Survey..............................................................................................160
Figure 11.11. Three Utility Functions.............................................................................................................................162
Figure 11.12. Four Types of Value Functions..................................................................................................................163

Chapter 12
Figure 12.1. A Simple Three-Level AHP Model...............................................................................................................172
Figure 12.2. Simple ANP Network for a Decision-Making Process.................................................................................176
Figure 12.3. The Shape of a Hypothetical Utility Function.............................................................................................181

Chapter 13
Figure 13.1. The Scope of Engineering Informatics Proposed........................................................................................186
Figure 13.2. IIIE Discipline History..................................................................................................................................187
Figure 13.3. Discipline Structure of IIIE..........................................................................................................................188
Figure 13.4. The Relationship Between Engineering Integration, Manufacturing Integration, Customer Integration, and
Enterprise Integration....................................................................................................................................................189

Chapter 14
Figure 14.1. Concept of Breakeven Analysis..................................................................................................................221

Chapter 15
Figure 15.1. Shorthand Notation Used for Engineering Economics...............................................................................230
Figure 15.2. Cash Flow Notation ...................................................................................................................................231
Figure 15.3. Constant Payments - Interest and Principle Combined (amortization).......................................................232
Figure 15.4. Cash Flow Diagram for Purchasing an Automatic Welder .........................................................................233
Figure 15.5. Capitalized Cost.........................................................................................................................................234
Figure 15.6. Generalization of an R&R Problem.............................................................................................................238
Figure 10.6. General Decision Model to Determine Economic Feasibility......................................................................249

Chapter 16
Figure 16.1 Project Management Related to Engineering Management.......................................................................252
Figure 16.2. Project Management Process Groups........................................................................................................253
Figure 16.3. Work Breakdown Structure........................................................................................................................257
Figure 16.4. Linear Responsibility Chart.........................................................................................................................258
Figure 16.5. Project Performance Target - Scope, Time, and Cost..................................................................................260
Figure 16.6. Earned Value Graph....................................................................................................................................261

Chapter 17
Figure 17.1. Mind Map of SE Key Concepts....................................................................................................................266
Figure 17.2. U.S. Army Corporal Sounding Rocket..........................................................................................................267
Figure 17.3. Hall’s Book on Systems Engineering............................................................................................................268
Figure 17.4. Common Systems Engineering Lifecycles in Use Today..............................................................................268
Figure 17.5. ISO/IEC 15288 Systems Engineering Processes..........................................................................................269

xx
Figure 17.6. Sample Hybrid SUV Operational Use Case..................................................................................................271
Figure 17.7. Input/Output Matrix...................................................................................................................................272
Figure 17.8. DoDAF Architecting Guidance....................................................................................................................275
Figure 17.9. Big Bang Approach to Integration...............................................................................................................276
Figure 17.10. Bottom-Up Approach to Integration.........................................................................................................277

Chapter 18
Figure 18.1. Using the Foundations of Systems..............................................................................................................290
Figure 18.2. Philosophic Level Spectrum........................................................................................................................292
Figure 18.3. Observation Through Intervention Activities Loop.....................................................................................305
Figure 18.4. Making Sense of “Methodologies,” “Methods” and “Tools”......................................................................306
Figure 18.5. Levels of Integrated Systems Thinking Application.....................................................................................312

Chapter 19
Figure 19.1. Schematic of the Activities in the Risk Management Framework..............................................................321
Figure 19.2. Simplified FTA Showing How Causalities of Risk Scenarios Can Be Represented by
Events and Gate Symbols.............................................................................................................................................326
Figure 19.3. Estimating Probabilities of Damages..........................................................................................................327
Figure 19.4. Example of Risk Matrix to Rank Risk Scenarios Based on Consequence and Likelihood ...........................331

Chapter 20
Figure 20.1. Process Map Example.................................................................................................................................352
Figure 20.2. Histogram Examples...................................................................................................................................353
Figure 20.3. Pareto Chart................................................................................................................................................354
Figure 20.4. Ishikawa Diagram........................................................................................................................................355
Figure 20.5. Control Chart 1............................................................................................................................................356
Figure 20.6. Control Chart 2...........................................................................................................................................357
Figure 20.7. Scatter Chart Reflecting Positive Correlations.............................................................................................357
Figure 20.8. Scatter Chart Reflecting Negative Correlations...........................................................................................358

Chapter 21
Figure 21.1. Strategic Management Process..................................................................................................................363
Figure 21.2. Goals, Objectives, Strategies......................................................................................................................365

Chapter 22
Figure 22.1. Functions of an Entrepreneur.......................................................................................................................................381
Figure 22.2. Innovation Process - Six Stages....................................................................................................................................384
Figure 22.3. Design Thinking Process.................................................................................................................................................387
Figure 22.4. Stages of Entrepreneurial Process...............................................................................................................................389
Figure. 22.5. Continuous Improvement Process.............................................................................................................................390

Chapter 23
Figure 23.1. Supply Chain Organizational Pyramid.........................................................................................................................394
Figure 23.2. SIPOC Diagram................................................................................................................................................................396
Figure 23.3. Attributes of Lean Supply Chain...................................................................................................................................397
Figure 23.4. Definitions of Supply Chain Agility by Executives ...................................................................................................400
Figure 23.5. Agile Supply Chain...........................................................................................................................................................401

xxi
xxii
LIST OF TABLES
Chapter 1
Table 1.1. ABET accredited and ASEE EM Related Programs..............................................................................................3
Table 1.2. Common Characteristics of EM Definitions........................................................................................................5
Table 1.3. Professional Societies Associated with the EM Discipline..................................................................................7
Table 1.4. Journals Associated with the Engineering Management Discipline...................................................................8
Table 1.5. Professional Conferences Associated with the EM Discipline............................................................................9
Table 1.6. EM Discipline’s Stakeholder Needs..................................................................................................................13

Chapter 4
Table 4.1. Overlapping Concepts......................................................................................................................................44
Table 4.2. Theory of Motivating Knowledge Workers.......................................................................................................51

Chapter 8
Table 8.1. Influence of Commitment on Workplace Impact.............................................................................................98

Chapter 11
Table 11.1. Advantages and Disadvantages of Decision Processes................................................................................155
Table 11.2. Elements of the Swing Weight Matrix..........................................................................................................164
Table 11.3. Topics Referenced to Standard Texts in the Field........................................................................................167

Chapter 12
Table 12.1. Scale for Pair-wise Comparison Using AHP1.................................................................................................172
Table 12.2. Pair-Wise Comparison Between Attributes..................................................................................................172
Table 12.3. Pair-Wise Comparison Between Attributes with Totals................................................................................173
Table 12.4. Normalized Values of Pair-Wise Comparison Between Attributes...............................................................173
Table 12.5. Pair-Wise Comparison Between Brands with respect to Maintenance Cost................................................176
Table 12.6. ANP Supermatrix—Un-weighted.................................................................................................................177
Table 12.7. ANP Supermatrix—Weighted.......................................................................................................................177
Table 12.8. ANP Limit Supermatrix.................................................................................................................................177
Table 12.9. Final Alternative Values based on ANP........................................................................................................178

Chapter 14
Table 14.1. Comparison of Types of Business Entities....................................................................................................201
Table 14.2. A Typical Income Statement.........................................................................................................................206
Table 14.3. Assets, Liabilities and Equity for ASEM LLC..................................................................................................208
Table 14.4. Balance Sheet for ASEM LLC.........................................................................................................................209
Table 14.5. Two Sources of Equity Capital for Shareholders Equity...............................................................................210
Table 14.6. Stockholder’s Equity Based Upon Two Sources of Equity Capital................................................................210
Table 14.7. ASEM Corporation Stockholder’s Equity Statement on December 31, 200X..............................................211
Table 14.8. Stockholder’s Equity Statement for ASEM Corp as of December 31...........................................................211
Table 14.9. Cash Flow Statement....................................................................................................................................212
Table 14.10. Revenue and Expenses for Merino Realty.................................................................................................213
Table 14.11. Cash Flow from Merino Reality Income Statement...................................................................................214
xxiii
 Table 14.12. SL Depreciation Example...........................................................................................................................216
Table 14.13. MACRS Depreciation Example...................................................................................................................217
Table 14.14. Loan Balance / Amortization Table.............................................................................................................219
Table 14.15. T-account Method of Recording Debits and Credits..................................................................................220
Table 14.16. Location of Typical Items That are Posted..................................................................................................220

Chapter 15
Table 15.1. Demonstration of Simple vs. Compound Interest.......................................................................................228
Table 15.2. Effects of Compounding Period...................................................................................................................230
Table 15.3. Salvage Value and O&M Costs by Year.........................................................................................................238
Table 15.4. Capitalized Costs by Year..............................................................................................................................239
Table 15.5. EVAC Calculation for O&M Costs..................................................................................................................239
Table 15.6. Total EVAC for an O&M Example..................................................................................................................239
Table 15.7. Net Cash Flow from Operating Activities.....................................................................................................243
Table 15.8. Net Cash Flows from Capital Related Activities............................................................................................243
Table 15.9. Loan Balance / Amortization Table...............................................................................................................245
Table 15.10. Total Cash Flow (Operating and Capital) Discounted.................................................................................245
Table 15.11. Economic Data for the ATA Problem..........................................................................................................246
Table 15.12. ATA Loan Amortization Table......................................................................................................................246
Table 15.13. Depreciation Expenses for the ATA Problem..............................................................................................247
Table 15.14. Net Cash Flows from Operating Income....................................................................................................247

Chapter 16
Table 16.1. Project Management Tools and Techniques.................................................................................................257

Chapter 17
Table 17.1. Input/Output Matrix....................................................................................................................................272
Table 17.2. Requirements Traceability Matrix................................................................................................................273

Chapter 18
Table 18.1. Multiple Perspectives of Systems Thinking..................................................................................................288
Table 18.2. Distinctions between Hard and Soft Systems Thinking................................................................................289
Table 18.3. Guiding Systems Principles for Systems Thinking.........................................................................................293
Table 18.4. Systems Thinking Characteristics.................................................................................................................302
Table 18.5. System-based Methodologies.....................................................................................................................307
Table 18.6. Jackson’s “Creative Holism” Taxonomy........................................................................................................307

Chapter 19
Table 19.1. PHA Worksheet............................................................................................................................................323
Table 19.2. JSA Worksheet..............................................................................................................................................324
Table 19.3. FEMA Worksheet..........................................................................................................................................325
Table 19.4. Basic FTA Symbols........................................................................................................................................325
Table 19.5. Example of Risk Matrix to Rank Risk Scenarios Based on Consequence and Likelihood .............................328
Table 19.6. Exploratory Questions That Can Be Used to Describe Risk Scenarios..........................................................329
Table 19.7. Risk Analysis Tools .......................................................................................................................................332
Table 19.8. References for Advanced Risk Analysis .......................................................................................................335

Chapter 20
Table 20.1. Pareto Results Example ...............................................................................................................................355

Chapter 23
Table 23.1. Varying Definitions of Supply Chain as Provided by Different Authors........................................................394
Table 23.2. Outsourcing Risks.........................................................................................................................................399

xxiv
 Engineering Management: Past, Present, and Future

1
Engineering Management—Past, Present,
and Future

Timothy G. Kotnour
University of Central Florida

John V. Farr
United States Military Academy

1
Engineering Management Handbook

1.1 Introduction
1.1.1 Overview of Engineering Management
With the globalization of the manufacturing base, outsourcing of many technical services, the efficien-
cies derived from advances in information technology (and the subsequent decrease in mid-management
positions), and the shifting of our economy to be service-based, the roles of the technical organization
and the engineering manager have dramatically changed. The 21st century technical organization must be
concerned with:
1. Maintaining an agile, high quality, and profitable business base of products or services in a fluctuating
economy,
2. Hiring, managing, and retaining a highly qualified and trained staff of engineers, scientists, and tech-
nicians in a rapidly changing technological environment, and
3. Demonstrating a high level of capability maturity.

Engineers often enter the job market not as traditional engineers but as project managers, technical sales,
and lead systems engineers (especially within the defense and information management arenas) involved
with conceiving, defining, architecting, designing, integrating, marketing, and testing complex and
multi-functional information technology centric systems (Abel, 2005). Within five years, for most engi-
neers this has become their primary job function. Combined with the fact that the modern engineering
enterprise is now characterized by geographically dispersed and multi-cultural organizations, engineering
management (EM) is more relevant than ever. Because of the blurring of boundaries between technical
and management roles, engineers must continue to redefine their roles to remain relevant in the modern
economy. Like all technical professions, EM has evolved dramatically because of the information age and
the interdisciplinary nature and complexity of modern systems.

1.1.2 The History of the Engineering Management Discipline

According to Kocaoglu (1984), EM as a formal degree has existed since the mid 1940s. However, we
know that courses in business and management aspects of engineering have been taught since the 1900s.
For example, Stevens Institute of Technology founded a Department of Business Engineering in 1902
with the aim to teach students “to become efficient managers” (Clark, 2000). The Massachusetts Institute
of Technology offered a degree in industrial management around 1913 (Kocaoglu, 1989). Several EM or
EM-type programs grew out of the post World War II industrial expansion to include the University of
Washington (1947) and Michigan Technological University (1949). The major growth occurred in the
1960s and 1970s. The first EM department was founded at the University of Missouri – Rolla (UMR
now known as Missouri University of Science and Technology) in 1967. UMR also awarded the first
PhD in EM in 1984 (Murray and Raper, 1997). The UMR contribution is further discussed by Bab-
cock (2000). Today, there are probably in excess of 85 universities offering undergraduate and graduate
degrees in programs named EM in the United Sates. Most EM programs can be categorized as being
embedded within an industrial engineering department/program or combined with systems engineering
departments/programs. Few undergraduate education EM programs exist because industrial engineering
departments have been reluctant to embrace the profession at the undergraduate level. If you include the
international programs, those embedded as concentrations within industrial engineering degrees, con-
centrations within MBAs, and hybrid programs such as engineering administration, systems EM, there
are probably hundreds of universities that offer an EM-type degree. Given the recent downturn in MBAs
degrees awarded in many programs (Triad Business Journal, 2004), EM degrees/programs/department
should continue to grow.
At the undergraduate level, there has also been growth in terms of related classes, minors, and certif-
icates that are embedded within traditional degrees. However, the number of undergraduate EM pro-
grams has seen little growth. As shown in Table 1.1, the ABET website lists 11 accredited undergraduate
programs in the US and five internationally with the word “management” in the program name and only

2
 Engineering Management: Past, Present, and Future

one has been accredited in the US for the first time in the last five years. Only five use the term “engi-
neering management” exclusively for the program name. A recent American Society for Engineering
Education (ASEE) publication on domestic engineering programs lists 23 EM undergraduate programs,
which also are summarized in Table 1.1.

Table 1.1. ABET accredited and ASEE EM Related Programs (from Kaufman et al., 2015)

ABET Accredited EM Programs* ASEE Listed EM Undergrad Programs

Domestic University of Arizona
University of Arizona** (2003) Arizona State University
Clarkson University*** (2009) California State, Long Beach
University of Connecticut (1978) California State, Northridge
Missouri University of Science and Technology ** University of California – Santa Cruz
(1979) Christian Brothers University
North Dakota State University (1971) The College of New Jersey
Oklahoma State University (1936) Colorado School of Mines
University of the Pacific**(2003) Gonzaga University
Rensselaer Polytechnic Institute (1978) Illinois Institute of Technology
South Dakota School of Mines and Technology Mercer University
(1991) Miami University
Stevens Institute of Technology** (1990) Missouri University of Science and Tech.
United States Military Academy** (1985) University of North Carolina - Charlotte
University of the Pacific
International NYU Polytechnic School of Engineering
Arab Academy for Science and Technology and University of Portland
Maritime Transport (2009) Southern Methodist University
Istanbul Technical University (2009) St. Mary’s University
Kuwait University (2006) Stevens Institute of Technology
Universidad Autonoma de San Luis Potosi (2012) University of Tennessee - Chattanooga
University of Sharjah (2010) United States Military Academy
University of Vermont

* Programs with “Management” in the name, ** “Engineering Management” programs, *** “Engineering and Management”
programs. The number in parenthesis under ABET accredited programs is the year that the program was first accredited.

The EM profession mirrors both trends in business and education. Early business engineering focused
on the civil and mechanical engineering disciplines. As shown in Figure 1.1, with the work Taylor (1911)
contributed to the early focus on manufacturing that dominated the discipline through the 1990s. Rapid
advances in information technology in the 1980s and organizational changes in all engineering practices
led to decline in the specialist engineer and a rise in the generalist engineer. To reflect the shift from man-
ufacturing to turn-key systems integrators in a global economic environment many EM programs are now
aligned with systems engineering programs (Farr and Buede, 2003).

3
Engineering Management Handbook

Figure 1.1. Management and Educational Trends That Have Affected the EM Field

(Shewart, 1924)
Quality Control,
Department of

(Taylor, 1911)
Stevens Int of

(Jacko, 2005)
(Clark, 2000)

Management
Engineering,

Tech (1902)

Principles of
Engineering

Statistical
Industrial

Scientific
Business

(1909)
1900-1925

(ORMS, 2005)
Operations
Research
(1937)
1925-1950

Thinking Emery
and (Trist,
Systems

1960)

1950-1975
Six Sigma (1986)

ISO 9000 (1991)

(Motorola, 2005)
(Deming, 1982)

Champy, 1993)
Reengineering
(Hammer and
Schon, 1978)
Organization,

Management
Total Quality
(Argyris and

(ISO, 2005)
Learning

Process

1975-2000

1.1.3 Definition of Engineering Management

In the literature you find few definitions of EM. Table 1.2 summarizes some the key characteristics com-
mon to all definitions of EM. We like the definition presented by Omurtag (1988) or Farr (2008).
The EM field has its roots in the traditional engineering and management disciplines (Waters, 1994).
This evolution has helped define the field. In the next section, we discuss the “knowledge” basis for the
disciplines.

4
 Engineering Management: Past, Present, and Future

Table 1.2. Common Characteristics of EM Definitions

Definition Reference
Engineering management is designing, operating, and continuously improving Omurtag (1988)
purposeful systems of people, machines, money, time, information, and energy
by integrating engineering and management knowledge, techniques, and skills to
achieve desired goals in technological enterprise through concern for the envi-
ronment, quality, and ethics.
The engineering manager is distinguished from other managers because he or Babcock and Morse
she posses both the ability to apply engineering principles and a skill in organizing (2002)
and directing people and projects. He or she 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 market-
ing or top management) in a high technology enterprise.
Engineering management is the discipline addressed to making and implementing IEEE (1990) and
decisions for strategic and operational leadership in current and emerging tech- Kocaoglu (1991)
nologies and their impacts on interrelated systems.
Engineering management is the art and science of planning, organizing, allocating American Society
resources, and directing and controlling activities which have a technological for Engineering
component. Management
In today’s global business environment, engineer managers integrate hardware, Farr (2011)
software, people, processes and interfaces to produce economically viable and
innovative products and services while ensuring that all pieces of the enterprise
are working together.

1.2 Present State of the Engineering and Technology Management Field

The present state of the EM field is described by understanding four elements: (a) the contributing
disciplines, (b) professional societies, (c) relevant journals, and (d) professional conferences. Through the
analysis of the present state conclusions for the future direction are offered: (1) the integration of the three
core contributing disciplines of EM needs to continue and (2) the integration of the diverse set of profes-
sional societies, journals, and conferences that needs to take place.

1.2.1 The Connection of the Engineering Management Discipline to Other

Disciplines
To understand the EM discipline we need to understand how the discipline relates to other disciplines.
In reviewing the history of EM, we assert that EM has evolved from the engineering and management
disciplines. EM is the bridge between the engineering and management disciplines. Consistent with the
definitions provided in the previous section, we view engineering manager as the “bridge” (Hicks, Ute-
ly, and Westbrook, 1999) between the traditional disciplines of science/engineering and management
(see Figure 1.2).

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Engineering Management Handbook

Figure 1.2. Engineering Management as the Bridge Between Engineering and Management

Engineering Engineering MBA

Management

Traditional Management Management Management of General

Engineering Within an Across Technology Management
Discipline Engineering Engineering
Discipline Disciplines

In reviewing the journals, professional societies, and conferences, five disciplines contribute to defin-
ing three different perspectives on the EM field. The five discipline groups are as follows:
1. Engineering disciplines. The core engineering disciplines in which the discipline focuses on the engi-
neering and design process unique to a domain (e.g., civil, traditional industrial, mechanical, electrical).
2. Discipline specific engineering management. The EM discipline that focuses on the management
process for a specific engineering discipline (e.g., management of the civil engineering process, man-
agement of the industrial engineering process).
3. Generalist engineering management. The EM discipline that focuses on the fundamental EM pro-
cess across many engineering disciplines.
4. Management of technology. The business or management discipline that focuses on managing the
creation, development, and use of technology (Badaway, 1998).
5. General management. The management discipline that focuses on the management of any organization.

Given these descriptions, three perspectives to EM are: (1) discipline specific EM, (2) generalist EM,
and (3) management of technology. Industrial engineering could be considered to be part of the overlap
between engineering and EM in Figure 1.2. As will become evident in the rest of this section, the EM
field continues to support this view. The EM discipline emerges from five unique sets of journals, profes-
sional societies, and conferences to provide three unique perspectives to the field.

1.2.2 Engineering Management Related Professional Societies

Consistent with the three perspectives of the EM field we categorize the different professional societies re-
lated to EM. As has been completed before (Sarchet and Baker, 1995), Table 1.3 summarizes the different
professional societies. In addition to the three perspectives to EM we have added three other categories
for completeness: (1) disciplines associated with processes and tools used by the engineering manager,
(2) general management, and (3) engineering education. Engineering disciplines and societies associated
with the Accreditation Board for Engineering and Technology (ABET) were used as the source for the
engineering programs. All of the engineering discipline professional societies are not included, just the
societies with an associated EM group or division. We share these professional societies to help the reader
understand the different avenues for actively participating and contributing to the profession. The EM
discipline is supported with six groups of professional journals.

1.2.3 Engineering Management Related Journals

Consistent with the three perspectives of the EM field, we review and categorize the different journals re-
lated to EM. Table 1.4 summarizes the journals related to EM. For completeness, in addition to the three
perspectives to EM we have added three other categories: (1) disciplines associated with processes and
tools used by the engineering manager, (2) general management and (3) engineering education. We share
these related journals to help the reader understand where to go to for knowledge and to contribute to the
knowledge of the profession. This list is not meant to be an exhaustive list. The EM discipline emerges
from six unique sets of journals.
6
 Engineering Management: Past, Present, and Future

Table 1.3. Professional Societies Associated with the EM Discipline

Group Professional Societies

Engineering • American Society of Civil Engineers (ASCE) (www.asce.org)

Management within an • IEEE Engineering Management Society (IEEE EMS) (www.ieee.org/ems)
Engineering Discipline • Institute of Industrial Engineers (IIE) (www.iienet.org)
• Institute of Industrial Engineers (IIE)- Society for Engineering & Management
Systems (SEMS) (www.iienet.org)
• Society of Petroleum Engineers (SPE) (www.spe.org)
• Society of Manufacturing Engineers (SME) (www.sme.org)
• American Society for Mechanical Engineering (ASME) (asme.org)

Disciplines Associated • Association for the Advancement of Cost Engineering (AACE) (aacei.org)
with Processes and • International Council of Systems Engineering (INCOSE) (www.incose.org)
Tools Used by the • Project Management Institute (PMI) (www.pmi.org)
Engineering Manager

Engineering • American Society for Engineering Management (ASEM) (www.asem.org)

Management Across • Canadian Society for Engineering Management (CSEM)
Disciplines (www.csem-scgi.ca/index.html)

Management of • International Association for Management of Technology (IAMOT)

Technology (www.iamot.org)
• Product Development Management Association (PDMA) (www.pdma.org)

General Management • Academy of Management (AM) (www.aomonline.org)

• Institute for Operations Research and the Management Sciences (INFORMS)
(www.informs.org)

Engineering Education • American Society of Engineering Education (ASEE) (www.asee.org)

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Engineering Management Handbook

Table 1.4. Journals Associated with the Engineering Management Discipline

Group Journals

Engineering Management within • Journal of Management in Engineering

an Engineering Discipline • Leadership and Management in Engineering
• The Journal of Construction Engineering and Management

Disciplines Associated with • Cost Engineering

Processes and Tools Used by • International Journal of Project Management
the Engineering Manager • Journal of Systems Engineering
• Project Management Journal
• The Engineering Economist

Engineering Management • IEEE Transactions on Engineering Management

Across Disciplines • Engineering Management Review
• Engineering Management Journal (ASEM)
• The Engineering Management Journal (IEE IN UK)

Management of Technology • International Journal of Technology Management

• Journal of Engineering & Technology Management
• Journal of High Technology Management
• Journal of Product Innovation Management
• Technological Forecasting and Social Change
• Technovation
• R&D Management
• Research Policy
• Research Technology Management
• Technological Analysis and Strategic Management

General Management • Academy of Management Review

• Academy of Management Journal
• Administrative Science Quarterly
• California Management Review
• Decision Analysis
• Harvard Business Review
• Information Technology & People
• Interfaces
• International Journal of Operations & Production Management
• International Journal of Quality & Reliability Management
• International Journal of Service Industry Management
• Management Decision
• Management Review
• Management Science
• Manufacturing & Service Operations Management
• National Productivity Review
• Organization Science
• Sloan Management Review

Engineering Education • Journal of Engineering Education

• IEEE Transactions on Engineering Education

8
 Engineering Management: Past, Present, and Future

1.2.4 Engineering Management Related Conferences

Consistent with the three perspectives of the EM field we reviewed and categorized the different professional
conferences related to EM. Table 1.5 summarizes these conferences. We would like to share these related
conferences to help the reader understand where to go to for knowledge and to contribute to the knowledge
of the profession. This list of conference is not meant to be exhaustive, rather a starting place. The EM disci-
pline emerges from six unique sets of conferences.

Table 1.5. Professional Conferences Associated with the EM Discipline

Group Conferences

Engineering Management within • American Society of Civil Engineers (ASCE) (www.asce.org)

an Engineering • Institute of Industrial Engineers (IIE) (www.iienet.org)
Discipline

Disciplines Associated with • International Council of Systems Engineering (INCOSE) (www.incose.org)

Processes and Tools Used by the • Project Management Institute (PMI) (www.pmi.org)
Engineering Manager

Engineering Management • American Society for Engineering Management (ASEM) (www.asem.org)

Across Disciplines • IEEE Engineering Management Society (IEEE EMS) (www.ieee.org/ems)
• PICMET (www.picmet.org)

Management of Technology • International Association for Management of Technology (IAMOT)

(www.iamot.org)
• PICMET (www.picmet.org)
• Product Development Management Association (PDMA) (www.pdma.org)

General Management • Academy of Management (AM) (www.aomonline.org)

• Institute for Operations Research and the Management Sciences
(INFORMS) (www.informs.org)

Engineering Education • American Society of Engineering Education (ASEE) (www.asee.org)

• Masters of Engineering Management Programs Consortium
(http://www.mempc.org)
• Accreditation Board of Engineering and Technology
(http://www.abet.org)

1.2.5 The Future of the Engineering Management Discipline

The intent of this section is to develop a framework to continue the conversation about the future of EM.
The intent is not to define the agenda, but rather provide the structure from which further conversations
can be developed. In reviewing the past and present of EM and the emerging issues facing the world,
the discipline of EM offers a unique ability to make lasting contributions (Sarchet and Baker, 1989). To
define strategic issues we first understand three items: (1) a description of trends and challenges facing the
EM organization, (2) a model of the EM discipline from a perspective of knowledge roles, and (3) a de-
scription of global outcomes for the stakeholders of the EM discipline. By taking these three perspectives
we can better understand and define the emerging issues facing the discipline.

1.3 Emerging Engineering Management Related Trends, Drivers, and

Challenges
Barkema, Baum, and Mannix (2002) defined a set of trends defining management challenges. These chal-
lenges included: greater diversity; greater synchronization requirements; greater time pacing requirements;
9
Engineering Management Handbook

faster decision-making, learning, and innovation; faster newness and obsolescence of knowledge; more
frequent environmental discontinuities; faster industry life-cycles; greater risk of competency traps; and
faster newness and obsolescence of organizations. The challenges are being driven by the increased global-
ization of the knowledge economy and the increasing complexity of the systems. Technology managers are
facing challenges managing in this domain. Engineering managers face challenges that include: (1) strate-
gic planning for technology products, (2) new product project selection, (3) organizational learning about
technology, and (4) technology core competencies (Scott, 1998). During the 2003 annual conference of
the American Society for Engineering Management (ASEM), a session was held with both practicing and
academic EM participants on defining the challenges associated with EM. During this session the partic-
ipants identified challenges in three groups: (1) business environment trends and challenges, (2) organi-
zational trends and challenges, and (3) engineering management/manager trends and challenges (Utley,
Farrington, and Kotnour, 2003). The business environment trends and challenges included:
• Globalization,
• Short-term profit focused,
• Increased regulatory/environmental stewardship/ethical focus, and
• Changing demographics of the workforce.

These trends create further trends and challenges for the technical organization:
• Forging partnerships,
• Operating networks of relationships,
• Implementing a process-based organization,
• Continuously managing change, and
• Gaining/maintain employee loyalty and commitment.

The engineering manager then faces of the challenges of operating in this environment. Specific chal-
lenges include:
• Managing and leading teams,
• Understanding and managing uncertainty,
• Managing and leading the workforce,
• Changing culture,
• Using tools and metrics to manage, and
• Developing the needed management and leadership skills and behaviors.

Figure 1.3 summarizes these challenges. These trends and challenges offer the strategic context for the
EM discipline. For example, the discipline needs to become more global and integrative across disciplines.
The EM discipline must define a body of knowledge that provides the knowledge needed by the engineer-
ing manager to be successful in the challenging environment.

10
 Engineering Management: Past, Present, and Future

Figure 1.3. Challenges for the Technical Organization and Engineering Manager

We Defined EM Challenges
Business Environment Trends & Challenges
• Globalization
• Short-term profit focused
• Regulatory, environmental and ethical
• Demographics (age of the workforce, diversity, attitudes of the
workforce)

Organizational Trends & Challenges

• Forging partnerships (with competitors)
• Operating network relationships
• Implementing a process-based organization
• Continuously managing change
• Gaining and maintaining employee loyalty and commitment

Engineering Management/Manager Trends & Challenges

• Managing and leading teams
• Understanding and managing uncertainty
• Managing and leading the workforce
• Changing culture
• Using tools and metrics to manage
• Developing management and leadership skills and behaviors

1.4 Engineering Management Discipline’s Knowledge Roles

The EM discipline plays five knowledge roles (Boyer, 1990; Kotnour, 2001). The roles are based on the
knowledge management function (i.e., generate, assimilate, or communicate) and application of the
knowledge (i.e., generalist/across many organizations or organization specific). As can be seen in Figure
1.4, each of these roles supports the other roles. The challenge for the EM discipline is in integrating these
five roles. The five roles are:
1. Research: The process of generating generalized knowledge. This knowledge can be applied to many
different domains and does not necessarily solve an organization’s unique problem. This knowledge
serves as the content and basis for the other roles.
2. Education: The process of teaching students knowledge that can be applied to many different do-
mains or applications. The education roles pulls content from the other roles.
3. Training: The process of transferring knowledge to a unique domain, application, or organization. In
training, the discipline’s knowledge is used to provide specific application insights.
4. Technical assistance: The process of working with an organization to solve a specific performance
challenge. This technical assistance support creates knowledge unique to an organization. This unique
knowledge can be used to generalize from for research or used as case studies in training or education
classes.
5. Service: The set of activities to provide support to the university, profession, and society. The service
role also provides an overarching or governance function for the discipline. The service or professional
society role helps to assimilate the knowledge through conferences and journals.

These five knowledge roles are needed to provide positive outcomes for the EM discipline’s stakehold-
ers. The strategic issue facing the EM discipline is on how to integrate these five roles across the global and
diverse set of contributing disciplines, professional societies, journals, and conference of EM. The intent
of the rest of this chapter is to define specific challenges facing the EM discipline.

11
Engineering Management Handbook

Figure 1.4. Five Knowledge Roles of the EM Discipline

Technical
Generate Research
Assistance
Knowledge Function

Assimilate Service

Communicate Training Education

Organization Generalized
Unique
Application Level

1.5 Engineering Management Discipline Stakeholder Needs

To raise a set of questions to help determine the agenda for the future of the EM discipline, we must first
understand the discipline’s stakeholders and needs. The stakeholders are the set of individuals or groups
who impact and are impacted by the profession. Table 1.6 summarizes the needs of the EM disciplines
stakeholders. These outcomes can provide the overarching guidance or goals for the discipline.

12
 Engineering Management: Past, Present, and Future

Table 1.6. EM Discipline’s Stakeholder Needs

Stakeholder Desired Outcome Engineering Management

Discipline’s Contribution in Helping
the Stakeholder Achieve their
Desired Outcome

Society • Strong, stable society • Provide graduates who are functional and
• Useful products and services make a difference

High-tech organizations • Success in growing their • Provide educated graduates

business • Provide real-time knowledge to improve
organizational performance

Profession • Enhanced professionalism and • Provide service to the professional

profession societies and active students/graduates

Practicing engineering • Success in the workplace • Provide real-time knowledge to improve

manager and individual, team, and organizational
engineering team performance

Professional engineer • Maintain professional • Provide real-time knowledge to improve

certification individual performance
• Offer opportunities to complete
professional registration requirements

University community • Enhance the reputation of the • Provide an outlet (i.e., conferences
university and scholarly journals) for faculty to
professionally grow and gain recognition
for academic programs

Student • Productive, working member • Provide educational and work experiences

of society to enable them to be a life-long learner
• Provide a connection to employers and
graduate schools

Faculty • Enhanced reputation and • Provide the infrastructure and outlets for
freedom to intellectually conducting teaching, research, and service
explore

Accreditation • Meet the desired outcomes • Define the bodies of knowledge and
institutions of the accreditation process characteristics of the EM discipline
• Systematically implement the accreditation
process

1.6 Conclusions and Summary

The intent of this chapter was to review the history and current state of the EM discipline as a foundation
to help define the future of the discipline. We have presented a review of the history of the profession
and also presented several definitions. To further describe the current state of the profession we have
summarized relevant professional organizations, publications, and technical societies. However, the main
contribution of this chapter is to present emerging trends, knowledge roles, and stakeholder needs for the
profession along with strategic issues that will affect the future of EM and engineering education.
We offer four conclusions from this work. First, the EM profession is at a critical juncture in its matu-
ration. Unlike many traditional engineering professions, EM has been agile and responsive to changes in
13
Engineering Management Handbook

the global economic community. This can mainly be attributed to our main role as continuing education
for engineers and scientists. In practice, we have had to be on the leading edge of managerial trends to
produce competitive products and services. In order to remain relevant, we have had to adapt our skill
sets. However, the role of EM is changing from both an educational and practical perspective. Most EM
programs are run very similar to MBA programs with adjunct faculty. EM education is becoming more
accepted within most universities. Unfortunately, few universities have standalone EM programs at the
undergraduate and graduate levels staffed with mainly full-time faculty. The number of undergraduate
programs has experienced steady growth. From a practicing EM perspective, the challenges in many ways
are more daunting. Rapid changes in business practices require a continual self-evaluation and retraining
to remain relevant.
Second, the EM profession needs to build an integrated approach of teaching, research, technical
assistance, training, and service. From this integration, the discipline will continue to grow and make
significant contributions. Third, to draw this synergy, the EM profession must also recognize the comple-
mentary perspectives that different contributing fields can bring. These complementary perspectives will
help develop and transfer the knowledge needed to address the challenges of the technical environment
and technical organization. Fourth, the EM professional societies offer a key mechanism to foster collab-
oration across disciplines. The leadership for the profession needs to come from active participation from
the discipline itself and the leadership of the professional societies.

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ment Journal, vol. 1, no. 1, March 1989, pp. 4-7.
Sarchet, Bernie, and Baker, Merl, “Defining the Boundaries of Engineering Management,” Engineering
Management Journal, vol. 7, no. 2, March 1995, pp. 7-10.
Scott, G. M., “The new age of new product development: Are we there yet?” R & D Management, vol.
28, no. 4, 1998.
Shewhart, Walter A., Bell Laboratory Memorandum, Issued May 16, 1924, http://www.itl.nist.gov/
div898/handbook/pmc/section1/pmc11.htm, accessed January 24, 2005.
Taylor, Frederick Winslow, The Principles of Scientific Management, 1911.
Triad Business Journal, http://triad.bizjournals.com/triad/stories/2004/03/29/focus2.html?t=printable,
accessed March 1, 2005.
Utley, D., Farrington, P., and Kotnour, T. G., “Understanding the Challenges of the Engineering Man-
ager,” working paper, Author, University of Alabama Hunstsville, 2003.
Waters, Bob, “Engineering Management Tradition and Education: Past, Present, and Future,” Engineering
Management Journal, vol. 6, no. 3, Sept. 1994, pp. 5-8.

15
16
 Professional Responsibility, Ethics, and Legal Issues

2
Professional Responsibility, Ethics,
and Legal Issues

William J. Daughton
Missouri University of Science and Technology

17
Engineering Management Handbook

2.1 Introduction
2.1.1 Relevance and Importance
As a profession, engineering must adhere to the highest standards of integrity and honesty. Engineering
has a direct impact on society in terms of safety and quality of life so engineers must be vigilant in adher-
ing to the highest principals of ethical conduct in conducting their professional work.
Engineering is often directly involved with the creation of technology-based work product that has
significant value to the employer or client. The value of this work product must be protected leading to
patents and copyrights. Engineering managers must be aware of their responsibilities in this domain to
ensure the proper protection of company work product assets.

2.1.2 What are Ethics?

Ethics is concerned with the kind of values and morals an individual or a society finds desirable or appro-
priate (Northouse, 2016). Northouse also points out that ethical theory guides individuals or organiza-
tions in decision-making about what is right or wrong in given situations. It should be noted that ethics
and legal requirements are different. Often, the real ethical dilemmas are choices among alternative that
are all within the law but have different impacts on constituents.

2.1.3 What Constitutes Intellectual Property?

For the engineering manager, intellectual property (IP) can be divided into two parts: industrial assets that
are the result of invention or design and the creative work of individual authors. Both have the potential
to need protection and the source of the protection in each case is different.

2.2 Engineering Code of Conduct

2.2.1 Introduction to the NSPE Ethical Canons
The National Society of Professional Engineers (NSPE) list fundamental canons that form the basis for
ethical conduct (NSPE, 2009):
Engineers in the fulfillment of their professional duties shall:
1. Hold paramount the safety, health, and welfare of the public.
2. Perform services only in areas of their competence.
3. Issue public statements only in an objective or truthful manner.
4. Act for each employer or client as a faithful agent or trustee.
5. Avoid deceptive acts.
6. Conduct themselves honorably, responsibly, ethically, and lawfully so as to enhance the honor, reputa-
tion, and usefulness of the profession.

2.2.2 Safety, Health, and Welfare of the Public

From a practical standpoint this canon requires engineering managers to be focused on ensuring that the
work of their engineers is in compliance with all requirements set forth by their employer or client and
with all established standards for workmanship and safety. If a violation report is received of either of
these requirements, an engineering manager has an obligation to obtain all facts pertinent to the situation,
and if the facts support the violation, report it to higher-level management of the employer or to the cli-
ent. It is critical that the information be fact-based and not based on rumor or speculation. The credibility
of the reporting engineers and the engineering manager is at stake in making such reports.
Any information related to such disclosures cannot be revealed without the approval of the employer
or client except as required by law or these canons. In holding the health, safety, and welfare of the public
as paramount, this canon also requires that engineering managers report the unlawful practice of engi-
neering by any person or company and to cooperate with proper authorities investigating such unlawful
practice.

18
 Professional Responsibility, Ethics, and Legal Issues

2.2.3 Professional Service Only in Qualified Areas

Engineering managers must ensure that the engineers assigned to a specific job or projects indeed have
appropriate credentials to qualify them to do the work. There may be a hierarchy of engineering expe-
rience and qualifications in a group of engineers assigned to a job or project, and this allows for at least
one senior engineer with review and validation authority to oversee the technical work of less experienced
or apprentice engineers. Ultimately, the work must be approved by qualified engineering and technical
management individuals.

2.2.4 Objective and Truthful Public Statements

As indicated in section 2.2, fact-based reporting of information is essential for the credibility of the
engineers, engineering managers, and their employers. Objective and relevant facts must be included in
technical reports and presentations, and the engineering manager must ensure that such facts are not
selectively removed.
Established and recognized technical professionals are often asked to provide public comment and
opinion on technical matters. There are two critical factors to be considered if this situation arises:
1. Such comments and opinions are based on knowledge of the facts and competence in the subject matter.
2. If such comments or opinions are inspired or paid for by interested parties, that should be disclosed
prior to any public statements.

2.2.5 Faithful Agents for Employers or Clients

This canon relates directly to conflict of interest. A situation that is perceived to create a conflict should be
fully disclosed to the employer or client. Such conflicts include:
1. Compensation by more than one party for services on the same project.
2. Financial or other considerations of more than trivial value from outside parties in connection with
work being performed. Any consideration from an outside party that can influence the judgment,
decisions, or work on an engineering manager represents a potential conflict.
3. Acceptance of a contract from a governmental body (local, state, or federal) on which a principal or
officer of the organization serves as a member.
4. Participating in a decision as a member of a governmental body that involves the individual’s employ-
er. The right course of action here is for individuals in this situation to disclose the conflict and recuse
themselves until the matter is resolved.

2.2.6 Avoidance of Deceptive Acts

Although this may seem obvious, there are several specific ethical and potentially legal situations worth
mentioning.
The first situation deals with misrepresenting or exaggerating individual or group capabilities or
knowledge for the purpose of winning a contract or procuring professional work. Engineering managers
must be particularly careful to ensure capabilities or knowledge are not misrepresented or even miscon-
strued by potential clients. Engineering managers would often be the name-of-record in validating work
completed. There could be serious legal liabilities as well as ethical issues.
The second situation involves behind-the-scenes offerings of payments or other considerations to a
public authority to influence decisions favorably on the awarding of contracts or work. The bidding pro-
cess for public work must be able to withstand public scrutiny.

2.2.7 Enhancing the Profession Through Ethical Behavior

This may seem like a catch-all statement but it really points to the fact that each engineer and engineering
manager is part of larger whole and any unethical or illegal activities of any sort by a single individual
tarnishes the reputation and credibility of everyone in the profession. Seeing individuals involved in un-
ethical or illegal behavior encourages slippery-slope thinking; e.g., “because others have done it, why not
me?”. To protect the reputation of the profession, serious attention must be paid to ethics and legality.
19
Engineering Management Handbook

2.3 Ethical Decision-Making

2.3.1 Introduction
There are four principles for making ethical decisions that engineering managers can use to analyze the
impact of their decisions on the key stakeholders on an organization. As the label implies, stakeholders
have a stake in the success of the organization, and all decisions that are made by the organization have
potential consequences on one or more of the stakeholder groups. As a result, it is imperative to consider
the impact of such decisions from an ethical standpoint.
Traditionally, the organizational stakeholders are shown in Figure 2.1.

Figure 2.1. Organizational Stakeholders

Suppliers Customers

Employees Organization Communities

Stockholders

For simplicity, Employees include everyone, managers as well. Some sources separate employees and
managers due to their different roles (Jones and George, 2006), but purposes of this treatment they are
combined. Here, the term Communities refers to the local communities in which the organization has a
presence as well as the broader content of national or international communities.
The four ethical principles that can be applied to analyze the impact of managerial decisions on the
above group of stakeholders are (Jones and George, 2006):
1. Utilitarian Rule
2. Moral Rights Rule
3. Justice Rule
4. Practical Rule

These rules are in practice useful guidelines to guide decision-making by balancing the self-interest of
the organization with those of the stakeholders.

2.3.2 Utilitarian Rule

This rule is based on the concept that an ethical decision is one that produces the greatest good for
the greatest number of stakeholders. So in applying this rule, engineering managers should consider
how various alternatives would benefit or harm the stakeholder group. The principle is to choose an
alternative that provides the most benefit or least harm for all stakeholders in equal measure. The
practical problem with this rule is that such decisions may result in no one being satisfied with
the outcome.

2.3.3 Moral Rights Rule

Under this rule, an ethical decision is one that protects the inalienable rights of the people affected by the
decision. Issues of health and safety relative to Employees and Communities would be paramount here.
20
Another random document with
no related content on Scribd:
 “We’ll take this one,” and there were four thousand credits in the
box.
Throw one take one, and there were eight thousand.
The eight became sixteen; then thirty-two; and the dealer lost his
urbanity completely. He looked just plain ugly.
“Maybe that’s enough for now,” Joan suggested. “After all, we
don’t want to take all the man’s money.”
“Tightwad’s trick, huh? Quit while yer ahead?” the dealer
sneered. “Why’n’cha let ’er ride just once more?”
“If you insist, we will,” Cloud said, “but I’m warning you it’ll cost
you thirty two more M’s.”
“That’s what you think, Buster—I think different. Call your play!”
“We’ll take it!” Cloud snapped. “But listen, you clever-fingered jerk
—I know just as well as you do that the top card is the king of clubs,
and the one below it is the trey of diamonds. So, if you want to stay
healthy, move slowly and be damned sure to lift just one card, not
two, and take it off the top and not the bottom!”
Glaring in baffled fury, the dealer turned up the king of clubs and
paid his loss.
At the next table the results were pretty much the same, and at
the third. At the fourth table, however, instead of pyramiding, they
played only single M-bills. They lost—won—lost—lost—won—lost—
won—lost. In twenty plays they were only two thousand credits
ahead.
“I think I’ve got it, Joan,” Cloud said then. “Coming up—eight, six,
jack, five, deuce?”
“Uh-uh. I don’t think so. Eight, six, jack, three, one, I think. The
trey of spades and the ace of hearts. A two-and-one shift with each
full cycle.”
“Um . . . m. Could be . . . but do you think the guy’s that smart?”
“I’m pretty sure of it, Storm. He’s the best dealer they have. He’s
been dealing a long time. He knows cards.”
“Well, if you’re done passing out compliments, how about calling
a play?” the dealer suggested.
“QX. We’ll take the eight for one M . . . and it is the eight, you
notice . . . let it ride . . . throw the six—without looking, of course . . .
we’ll take the jack for two M’s. . . .”
 The host, accompanied by no less a personage than the
manager himself, had come up. They stood quietly and listened as
Cloud took three bills out of the box, leaving one, and went on:
“The next card is either a five or a trey. That M there is to find out
which it is.”
“Are you sure of that?” the manager asked.
“Not absolutely, of course,” Cloud admitted. “There’s one chance
in approximately fourteen million that both my partner and I are
wrong.”
“Very good odds. But since you lose in either case, why bet?”
“Because if it’s a trey, she solved your system first. If it’s a five, I
beat her to it.”
“I see, but that isn’t necessary.” The manager took the remaining
cards out of the rack, and, holding them carefully and firmly, wrapped
the M-note tightly around them. Then, picking up the two small
stacks of played cards, he handed the whole collection to Cloud, at
the same time signalling the dealer to go ahead with his game. “We’ll
be smothered in a crowd very shortly, and I would like very much to
play with you myself. Will you, sir and madame, be gracious enough
to continue play in private?”
“Gladly, sir,” Joan assented, at Cloud’s questioning glance. “If it
would not put you out too much.”
“I am delighted,” and, beckoning to a hovering waiter, he went on:
“We will have refreshments, of course. In uniform, you might possibly
prefer soft drinks? We have some very good Tellurian ginger ale.”
“That’d be fine,” Cloud said, even while he was thinking at the
Lensman in contact with his mind: “Safe enough, don’t you think? He
couldn’t be thinking of any rough stuff yet.”
“Perfectly safe,” Nordquist agreed. “He’s just curious. Besides,
he’s in no shape to handle even the Vortex Blaster alone, to say
nothing of the task force he knows would be here two hours after
anything happened to either of you.”
The four strolled in friendly fashion to the suggested private
room. As soon as they were settled:
“You said the top card would be either a five or a trey,” the
manager said. “Shall we look?”
 It was the trey of spades. “Congratulations, Joanie, a mighty
swell job. You really clobbered me on that one.” He shook her hand
vigorously, then handed the bill to the manager. “Here’s your M-note,
sir.”
“I couldn’t think of it, sir. No tipping, you know. . . .”
“I know. Not a tip, but your winnings. I called the play, remember.
Hence, I insist.”
“Very well, if you insist. But don’t you want to look at the next
one?”
“No. It’s the ace of hearts—can’t be anything else.”
“To satisfy my own curiosity, then.” The manager flipped the top
card delicately. It was the ace of hearts. “No compulsion, of course,
but would you mind telling me how you can possibly do what you
have just done?”
“I’ll be glad to,” and this was the simple truth. Cloud had to
explain, before the zwilniks began to suspect that they were being
taken by an organized force of Lensmen and snoopers. “We aren’t
even semi-habitual gamblers. The lieutenant-commander is Doctor
Joan Janowick, the Patrol’s ace designer of big, high-speed
electronic computers, and I am Neal Cloud, a mathematical analyst.”
“You are ‘Storm’ Cloud, the Vortex Blaster,” the manager
corrected him. “A super-computer yourself. I begin to see, I think . . .
but go ahead, please.”
“You undoubtedly know that random numbers, which underlie all
games of chance, must be just that—purely random, with nothing
whatever of system or of orderliness in their distribution. Also that a
stacked deck, by definition, is most decidedly not random. We were
kicking that idea around, one day, and decided to study stacked
decks, to see how systematic such distributions actually were. Well
—here’s the new part—we learned that any dealer who stacks a
deck of cards does so in some definite pattern; and that pattern,
whether conscious or unconscious, is always characteristic of that
one individual. The more skilled the dealer, the more complex,
precise, complete, and definite the pattern. Any pattern, however
complex, can be solved; and, once solved, the cards might just as
well be lying face up and all in sight.
 “On the other hand, while it is virtually impossible for any dealer
to shuffle a deck into a really random condition, it can approach
randomness so nearly that the patterns are short and hence very
difficult to solve. Also, there are no likenesses or similarities to help.
Worst of all, there is the house leverage—the sevens of hearts,
diamonds, and clubs, you know—of approximately five point seven
seven percent. So it is mathematically certain that she and I would
lose, not win, against any dealer who was not stacking his decks.”
“I . . . am . . . surprised. I’m amazed,” the manager said. He was,
too; and so was the host. “Heretofore it has always been the guest
who loses by manipulation, not the house.” It is noteworthy that
neither the manager nor host had at any time denied, even by
implication, that their games of “chance” were loaded. “Thanks,
immensely, for telling me. . . . By the way, you haven’t done this very
often before have you?” the manager smiled ruefully.
“No.” Cloud smiled back. “This is the first time. Why?”
“I thought I would have heard of it if you had. This of course
changes my mind about wanting to deal to you myself. In fact, I’ll go
farther—any dealer you play with here will be doing his level best to
give you a completely random distribution.”
“Fair enough. But we proved our point, which was what we were
primarily interested in, anyway. What’ll we do with the rest of the day,
Joan—go back to the ship?”
“Uh-uh. This is the most comfortable place I’ve found since we
left Tellus, and if I don’t see the ship again for a week it’ll be at least
a week too soon. Why don’t you send a boy out with enough money
to get us a chess kit? We can engage this room for the rest of the
day and work on our game.”
“No need for that—we have all such things here,” the host said
quickly. “I’ll send for them at once.”
“No no—no money, please,” the manager said. “I am still in your
debt, and as long as you will stay you are my guests. . . .” he
paused, then went on in a strangely altered tone: “But chess . . . and
Janowick . . . Joan Janowick, not at all a common name . . . surely
not Past Grand Master Janowick? She—retired—would be a much
older woman.”
 “The same—I retired for lack of time, but I still play as much as I
can. I’m flattered that you have heard of me.” Joan smiled as though
she were making a new and charming acquaintance. “And you? I’m
sorry we didn’t introduce ourselves earlier.”
“Permit me to introduce Host Althagar, assistant manager. I am
called Thlasoval.”
“Oh, I know of you, Master Thlasoval. I followed your game with
Rengodon of Centralia. Your knight-and-bishop end game was a
really beautiful thing.”
“Thank you. I am really flattered that you have heard of me. But
Commander Cloud. . . ?”
“No, you haven’t heard of him. Perhaps you never will, but
believe me, if he had time for tournament play he’d be high on the
Grand Masters list. So far on this cruise he’s won one game, I’ve
won one, and we’re on the eighty fourth move of the third.”
The paraphernalia arrived and the Tellurians set the game up
rapidly and unerringly, each knowing exactly where each piece and
pawn belonged.
“You have each lost two pawns, one knight, and one bishop—in
eighty three moves?” Thlasoval marveled.
“Right,” Cloud said. “We’re playing for blood. Across this board
friendship ceases; and, when dealing with such a pure unadulterated
tiger as she is, so does chivalry.”
“If I’m a tiger, I’d hate to say what he is.” Joan glanced up with a
grin. “Just study the board, Master Thlasoval, and see for yourself
who is doing what to whom. I’m just barely holding him: he’s had me
on the defensive for the last forty moves. Attacking him is just like
trying to beat in the side of a battleship with your bare fist. Do you
see his strategy? Perhaps not, on such short notice.”
Joan was very willing to talk chess at length, because the fact
that Fairchild’s Chickladorian manager was a chess Master was an
essential part of the Patrol’s plan.
“No . . . I can’t say that I do.”
“You notice he’s concentrating everything he can bring to bear on
my left flank. Fifteen moves from now he’d’ve been focused on my
King’s Knight’s Third. Three moves after that he was going to
exchange his knight for my queen and then mate in four. But, finding
out what he was up to, I’ve just derailed his train of operations and
he has to revise his whole campaign.”
“No wonder I didn’t see . . . I’m simply not in your class. But
would you mind if I stay and look on?”
“We’ll be glad to have you, but it won’t be fast. We’re playing
strict tournament rules and taking the full four minutes for each
move.”
“That’s quite all right. I really enjoy watching Grand Masters at
work.”
Master though he was, Thlasoval had no idea at all of what a
terrific game he watched. For Joan Janowick and Neal Cloud were
not playing it; they merely moved the pieces. The game had been
played long since. Based upon the greatest games of the greatest
masters of old, it had been worked out, move by move, by chess
masters working with high-speed computers.
Thus, while Joan and Storm were really concentrating, it was not
upon chess.
 Chapter 14

▂▂▂▂▂▂VESTA THE GAMBLER

JOAN WAS HANDLING the card games, Cloud the wheels. The
suggestion that it would be smart to run honest games had been
implanted in the zwilniks’ minds, not because of the cards, but
because of the wheels; for a loaded, braked, and magnetized wheel
is a very tough device to beat.
Joan, then, would read a deck of cards, and a Lensman or a
Rigellian would watch her do it. Then the observing telepath would,
all imperceptibly, insert hunches into the mind of a player. And what
gambler has ever questioned his hunches, especially when they pay
off time after time after time? Thus more and more players began to
win with greater or lesser regularity and the gambling fever—the
most contagious and infectious disorder known to man—spread
throughout the vast room like a conflagration in a box-factory.
And Storm Cloud was handling the wheels.
“Place your bets, ladies and gentlemen, before the ball enters
Zone Green,” the croupiers intoned. “The screens go up, no bets can
be placed while the ball is in the Green.”
If the wheels had not been rigged, Cloud could have computed
with ease the exact number upon which each ball would come to
rest. In such case the Patrol forces would not, of course, have given
Vesta the Vegian complete or accurate information. With her
temperament and her bank-roll, she would have put the place out of
business in an hour; and such a single-handed killing was not at all
what the Patrol desired.
But the wheels, of course, were rigged. Cloud was being
informed, however, of every pertinent fact. He knew the exact point
at which the ball crossed the green borderline. He knew its exact
velocity. He knew precisely the strengths of the magnetic fields and
the permeabilities, reluctances, and so on, of all the materials
involved. He knew just about how much braking force could be
applied without tipping off the players and transforming them
instantly into a blood-thirsty mob. And finally, he was backed by
Lensmen who could at need interfere with the physical processes of
the croupiers without any knowledge on the part of the victims.
Hence Cloud did well enough—and when a house is paying
thirty-five to one on odds that have been cut down to eight or ten to
one, it is very, very bad for the house.
Vesta started playing conservatively enough. She went from
wheel to wheel, tail high in air and purring happily to herself, slapping
down ten-credit notes until she won.
“This is the wheel I like!” she exclaimed, and went to twenties.
Still unperturbed, still gay, she watched nine of them move away
under the croupier’s rake. Then she won again.
Then fifties. Then hundreds. She wasn’t gay now, nor purring.
She wasn’t exactly tense, yet, but she was warming up. As the tenth
C-note disappeared, a Chickladorian beside her said:
“Why don’t you play the colors, miss? Or combinations? You
don’t lose so much that way.”
“No, and you don’t win so much, either. When I’m gambling I
gamble, brother . . . and wait just a minute . . .” the croupier paid her
three M’s and an L. . . . “See what I mean?”
The crowd was going not-so-slowly mad. Assistant Manager
Althagar did what he could. He ordered all rigging and gimmicks off,
and the house still lost. On again, off again; and losses still
skyrocketed. Then, hurrying over to the door of a private room, he
knocked lightly, opened the door, and beckoned to Thlasoval.
“All hell’s out for noon!” he whispered intensely as the manager
reached the doorway. “The crowd’s winning like crazy—everybody’s
winning! D’you s’pose it’s them damn Patrolmen there crossing us
up—and how in hell could it be?”
“Have you tried cutting out the gimmicks?”
“Yes. No difference.”
“It can’t be them, then. It couldn’t be anyway, for two reasons.
The kind of brains it takes to work that kind of problems in your head
can’t happen once in a hundred million times, and you say
everybody’s doing it. They can’t be, dammit! Two, they’re Grand
Masters playing chess. You play chess yourself.”
“You know I do. I’m not a Master, but I’m pretty good.”
“Good enough to tell by looking at ’em that they don’t give a
damn about what’s going on out there. Come on in.”
“We’ll disturb ’em and they’ll be sore as hell.”
“You couldn’t disturb these two, short of yelling in their ear or
joggling the board.” The two walked toward the table. “See what I
mean?”
The two players, forearms on table, were sitting rigidly still,
staring as though entranced at the board, neither moving so much as
an eye. As the two Chickladorians watched, Cloud’s left forearm,
pivoting on the elbow, swung out and he moved his knight.
“Oh, no . . . no!” Shocked out of silence, Thlasoval muttered the
words under his breath. “Your queen, man—your queen!”
But this opportunity, so evident to the observer, did not seem at
all attractive to the woman, who sat motionless for minute after
minute.
“But come on, boss, and look this mess over,” the assistant
urged. “You’re on plus time now.”
“I suppose so.” They turned away from the enigma. “But why
didn’t she take his queen? I couldn’t see a thing to keep her from
doing it. I would have.”
“So would I. However, almost all the pieces on that board are
vulnerable, some way or other. Probably whichever one starts the
shin-kicking will come out at the little end of the horn.”
“Could be, but it won’t be kicking shins. It’ll be slaughter—and
how I’d like to be there when the slaughter starts! And I still don’t see
why she didn’t grab that queen. . . .”
“Well, you can ask her, maybe, when they leave. But right now
you’d better forget chess and take a good, long gander at what that
Vegian hell-cat is doing. She’s wilder than a Radelgian cateagle and
hotter than a DeLameter. She’s gone just completely nuts.”
Tense, strained, taut as a violin-string in every visible muscle,
Vesta stood at a wheel; gripping the ledge of the table so fiercely that
enamel was flaking off the metal and plastic under her stiff, sharp
nails. Jaws hard set and eyes almost invisible slits, she growled
deep in her throat at every bet she put down. And those bets were all
alike—ten thousand credits each—and she was still playing the
numbers straight. They watched her lose eighty thousand credits;
then watched her collect three hundred and fifty thousand.
Thlasoval made the rounds, then; did everything he could to
impede the outward flow of cash, finding that there wasn’t much of
anything he could do. He beckoned his assistant.
“This is bad, Althagar, believe me,” he said. “And I simply can’t
figure any part of it . . . unless. . . .” His voice died away.
“You said it. I can’t, either. Unless it’s them two chess-players in
there, and I’ll buy it that it ain’t, I haven’t even got a guess . . . unless
there could be some Lensmen mixed up in it somewhere. They could
do just about anything.”
“Lensmen? Rocket-juice! There aren’t any—we spy-ray
everybody that comes in.”
“Outside, maybe, peeking in. Or some other snoopers, maybe,
somewhere?”
“I can’t see it. We’ve had Lensmen in here dozens of times, for
one reason or another, business and social both, and they’ve always
shot straight pool. Besides, all they’re getting is money, and what in
all eleven hells of Telemanchia would the Patrol want of our money?
If they wanted us for anything they’d come and get us, but they
wouldn’t give a cockeyed tinker’s damn for our money. They’ve
already got all the money there is!”
“That’s so, too. Money . . . hm, money in gobs and slathers. . . .
Oh, you think . . . the Mob? D’ya s’pose it’s got so big for its britches
it thinks it can take us on?”
“I wouldn’t think they could be that silly. It’s a lot more reasonable,
though, than that the Patrol would be horsing around this way.”
“But how? Great Kalastho, how?”
“How do I know? Snoopers, as you said—or perceivers, or any
other ringers they could ring in on us.”
“Nuts!” the assistant retorted. “Just who do you figure as ringers?
The Vegian isn’t a snooper, she’s just a gambling fool. No
Chickladorian was ever a snooper, or a perceiver either, and these
people are just about all regular customers. And everybody’s
winning. So just where does that put you?”
 “Up the creek—I know. But dammit, there’s got to be snoopery or
some other funny stuff somewhere in this!”
“Uh-uh. Did you ever hear of a perceiver who could read a deck
or spot a gimmick from half a block away?”
“No, but that doesn’t mean there aren’t any. But what stops me is
what can we do about it? If the Mob is forted up in that hotel across
the street or somewhere beside or behind us . . . there isn’t a damn
thing we can do. They’d have more gunnies than we could send in,
even if we knew exactly where they were, and we can’t send a
young army barging around without anything but a flimsy suspicion
to go on—the lawmen would throw us in the clink in nothing flat. . . .
Besides, this Mob idea isn’t exactly solid, either. How’d they get their
cut from all these people? Especially the Vegian?”
“The Vegian, probably not; the rest, probably so. They could have
passed the word around that this is the big day. Anybody’d split fifty-
fifty on a cold sure thing.”
“Uh-uh. I won’t buy that, either. I’d’ve known about it—somebody
would have leaked. No matter how you figure it, it doesn’t add up.”
“Well, then?”
“Only one thing we can do. Close down. While you’re doing that
I’ll go shoot in a Class A Double Prime Urgent to top brass.”
Hence Vesta’s croupier soon announced to his clientele that all
betting was off, at least until the following day. All guests would
please leave the building as soon as possible.
For a couple of minutes Vesta simply could not take in the import
of the announcement. She was stunned. Then:
“Whee . . . yow . . . ow . . . erow!” she yowled, at the top of her
not inconsiderable voice. “I’ve won . . . I’ve won . . . I’VE WON!” She
quieted down a little, still shell-shocked, then looked around and ran
toward the nearest familiar face, which was that of the assistant
manager. “Oh, senor Althagar, do you actually want me to quit while
I’m ahead? Why, I never heard of such a thing—it certainly never
happened to me before! And I’m going to stop gambling entirely—I’ll
never get such a thrill as this again if I live a million years!”
“You’re so right, Miss Vesta—you never will.” Althagar smiled—as
though he had just eaten three lemons without sugar, to be sure, but
it was still a smile. “It’s not that we want you to quit, but simply that
we can’t pay any more losses. Right now I am most powerfully
psychic, so take my advice, my dear, and stop.”
“I’m going to—honestly, I am.” Vesta straightened out the thick
sheaf of bills she held in her right hand, noticing that they were all
ten-thousands. She dug around in her bulging pouch; had to dig half-
way to the bottom before she could find anything smaller. With a
startled gasp she crammed the handful of bills in on top of the others
and managed, just barely, to close and lock the pouch. “Oh, I’ve got
to fly—I must find my boss and tell him all about this!”
“Would you like an armed escort to your hotel?”
“That won’t be necessary, thanks. I’m going to take a copter
direct to the ship.”
And she did.
It was not until the crowd was almost all gone that either
Thlasoval or Althagar even thought of the two chess-players. Then
one signalled the other and they went together to the private room,
into it, and up to the chess-table. To the casual eye, neither player
had moved. The board, too, showed comparatively little change; at
least, the carnage anticipated by Thlasoval had not materialized.
Althagar coughed discreetly; then again, a little louder. “Sir and
madam, please. . . .” he began.
“I told you they’d be dead to the world,” Thlasoval said; and,
bending over, lifted one side of the board. Oh, very gently, and not
nearly enough to dislodge any one of the pieces, but the tiny action
produced disproportionately large results. Both players started as
though a bomb had exploded beside them, and Joan uttered a half-
stifled scream. With visible efforts, they brought themselves down
from the heights to the there and the then. Cloud stretched
prodigiously; and Joan, emulating him, had to bring one hand down
to cover a jaw-cracking yawn.
“Excuse me, Grand Master Janowick and Commander Cloud, but
the Club is being closed for repairs and we must ask you to leave the
building.”
“Closed?” Joan parroted, stupidly, and:
“For repairs?” Cloud added, with equal brilliance.
“Closed. For repairs.” Thlasoval repeated, firmly. Then, seeing
that his guests were coming back to life quite nicely, he offered Joan
his arm and started for the door.
“Oh, yes, Grand Master Janowick,” he said en route. “May I ask
why you refused the Commander’s queen?”
“He would have gained such an advantage in position as to mate
in twelve moves.”
“I see . . . thanks.” He didn’t, at all, but he had to say something.
“I wonder . . . would it be possible for me to find out how this game
comes out?”
“Why, I suppose so.” Joan thought for a moment. “Certainly. If
you’ll give me your card I’ll send you a tape of it after we finish.”[3]

The two Patrolmen boarded a copter. Joan looked subdued,

almost forlorn. Cloud took her hand and squeezed it gently.
“Don’t take it so hard, Joan,” he thought. He found it remarkably
easy to send to her now; in fact, telepathy was easier and simpler
and more natural than talking. “We had it to do.”
“I suppose so; but it was a dirty, slimy, stinking, filthy trick, Storm.
I’m ashamed . . . I feel soiled.”
“I know how you feel. I’m not so happy about the thing, either. But
when you think of thionite, and what that stuff means. . . ?”
“That’s true, of course . . . and they stole the money in the first
place. . . . Not that two wrongs, or even three or four, make a right
. . . but it does help.”
She cheered up a little, but she was not yet her usual self when
they boarded the Vortex Blaster II.
Vesta met them just inside the lock. “Oh, chief, I won—I won!”
she shrieked, tail waving frantically in air. “Where’d you go after the
club closed? I looked all over for you—do you know how much I
won, Captain Nealcloud?”
“Haven’t any idea. How much?”
“One million seven hundred sixty two thousand eight hundred
and ten credits! Yow-wow-yow!”
“Whew!” Cloud whistled in amazement. “And you’re figuring on
giving it all back to ’em tomorrow?”
“I . . . I haven’t quite decided.” Vesta sobered instantly. “What do
you think, chief?”
 “Not being a gambler, I don’t have hunches very often, but I’ve
got one now. In fact, I know one thing for certain damn sure. There
isn’t one chance in seven thousand million of anything like this ever
happening to you again. You’ll lose your shirt—that is, if you had a
shirt to lose,” he added hastily.
“You know, I think you’re right? I thought so myself, and you’re
the second smart man to tell me the same thing.”
“Who was the first one?”
“That man at the club, Althagar, his name was. So, with three
hunches on the same play, I’d be a fool not to play it that way.
Besides, I’ll never get another wallop like that . . . my uncle’s been
wanting me to be linguist in his bank, and with a million and three-
quarters of my own I could buy half his bank and be a linguist and a
cashier both. Then I couldn’t ever gamble again.”
“Huh? Why not?”
“Because Vegians, especially young Vegians, like me, haven’t got
any sense when it comes to gambling,” Vesta explained, gravely.
“They can’t tell the difference between their own money and the
bank’s. So everybody who amounts to anything in a bank makes a
no-gambling declaration and if one ever slips the insurance company
boots him out on his ear and he takes a blaster and burns his head
off. . . .”
Cloud flashed a thought at Joan. “Is this another of your strictly
Vegian customs?”
“Not mine; I never heard of it before,” she flashed back. “Very
much in character, though, and it explains why Vegian bankers are
regarded as being very much the upper crust.”
“. . . so I am going to buy half of that bank. Thanks, chief, for
helping me make up my mind. Good night, you two lovely people; I’m
going to bed. I’m just about bushed.” Vesta, tail high and with a
completely new dignity in her bearing, strode away.
“Me, too, Storm; on both counts,” Joan thought at Cloud. “You
ought to hit the hammock, too, instead of working half the night yet.”
“Maybe so, but I want to know how things came out, and besides
they may want some quick figuring done. Good night, little chum.”
His parting thought, while commonplace enough in phraseology, was
in fact sheer caress; and Joan’s mind, warmly intimate, accepted it
as such and returned it in kind.
Cloud left the ship and rode a scooter across the field to a very
ordinary-looking freighter. In that vessel’s control room, however,
there were three Lensmen and five Rigellians, all clustered around a
tank-chart of a considerable fraction of the First Galaxy.
“Hi, Cloud!” Nordquist greeted him with a Lensed thought and
introduced him to the others. “All our thanks for a really beautiful job
of work. We’ll thank Miss Janowick tomorrow, when she’ll have a
better perspective. Want to look?”
“I certainly do. Thanks.” Cloud joined the group at the chart and
Nordquist poured knowledge into his mind.
Thlasoval, the boss of Chickladoria, had been under full mental
surveillance every minute of every day. The scheme had worked
perfectly. As the club closed, Thlasoval had sent the expected
message; not by ordinary communications channels, of course, but
via long-distance beamer. It was beamed three ways; to Tominga,
Vegia, and Palmer III. That proved that Fairchild wasn’t on
Chickladoria; if he had been, Thlasoval would have used a
broadcaster, not a beamer.
Shows had been staged simultaneously on all four of Fairchild’s
planets, and only on Vegia had the planetary manager’s message
been broadcast. Fairchild was on Vegia, and he wouldn’t leave it: a
screen had been thrown around the planet that a microbe couldn’t
squirm through and it wouldn’t be relaxed until Fairchild was caught.
“Simultaneous shows?” Cloud interrupted the flow of information.
“On four planets? He won’t connect the Vortex Blaster with it, at all,
then.”
“We think he will,” the Lensman thought, narrowing down. “We’re
dealing with a very shrewd operator. We hope he does, anyway,
because a snooper put on you or any one of your key people would
be manna from heaven for us.”
“But how could he suspect us?” Cloud demanded. “We couldn’t
have been on four planets at once.”
“You will have been on three of them, though; and I can tell you
now that routing was not exactly coincidence.”
“Oh . . . and I wasn’t informed?”
 “No. Top Brass didn’t want to disturb you too much, especially
since we hoped to catch him before things got this far along. But
you’re in it now, clear to the neck. You and your people will be under
surveillance every second, from here on in, and you’ll be covered as
no chief of state was ever covered in all history.”

[3] A few months later, Joan did send him the full
game, which white of course won. Thlasoval studied
it in secret for over five years; and then, deciding
correctly that he never would be able to understand
its terrifically complex strategy, he destroyed the
tape. It is perhaps superfluous to all that this game
was never published. E.E.S.
 Chapter 15

▂▂▂▂▂▂JOAN AND HER BRAINS

THE TRIP FROM Chickladoria to Vegia, while fairly long, was
uneventful.
Joan spent her working hours, of course, at her regular job of
rebuilding the giant computer. Cloud spent his at the galactic chart or
in the control room staring into a tank; classifying, analyzing, building
up and knocking down hypotheses and theories, wringing every
possible drop of knowledge from all the data he could collect.
In their “spare” time, of which each had quite a great deal, they
worked together at their telepathy; to such good purpose that, when
so working, verbal communication between them became rarer and
rarer. And, alone or in a crowd, within sight of each other or not, in
any place or at any time, asleep or awake, each had only to think at
the other and they were instantly in full mental rapport.
And oftener and oftener there came those instantaneously-
fleeting touches of something infinitely more than mere telepathy;
that fusion of minds which was so ultimately intimate that neither of
the two could have said whether he longed for or dreaded its full
coming the more. In fact, for several days before reaching Vegia,
each knew that they could bring about that full fusion any time they
chose to do so; but both shied away from its consummation, each as
violently as the other.
Thus the trip did not seem nearly as long as it actually was.
The first order of business on Vegia, of course, was the
extinguishment of its five loose atomic vortices—for which reason
this was to be pretty much a planetary holiday, although that is of
little concern here.
As the Vortex Blaster II began settling into position, the two
scientists took their places. Cloud was apparently his usual self-
controlled self, but Joan was white and strained—almost shaking. He
sent her a steadying thought, but her block was up, solid.
 “Don’t take it so hard, Joanie,” he said, soberly. “Margie’ll take
’em, I hope—but even if she doesn’t, there’s a dozen things not tried
yet.”
“That’s just the trouble—there aren’t! We put just about
everything we had into Lulu; Margie is only a few milliseconds better.
Perhaps there are a dozen things not tried yet, but I haven’t the
faintest, foggiest smidgeon of an idea of what any of them could be.
Margie is the last word, Storm—the best analogue computer it is
possible to build with today’s knowledge.”
“And I haven’t been a lick of help. I wish I could be, Joan.”
“I don’t see how you can be. . . . Oh, excuse me, Storm, I didn’t
mean that half the way it sounds. Do you want to check the circuitry?
I’ll send for the prints.”
“No, I couldn’t even carry your water-bottle on that part of the job.
I’ve got just a sort of a dim, half-baked idea that there’s a possibility
that maybe I haven’t been giving you and your brains a square deal.
By studying the graphs of the next three or four tests maybe I can
find out whether. . . .”
“Lieutenant-Commander Janowick, we are in position,” a crisp
voice came from the speaker. “You may take over when ready,
madam.”
“Thank you, sir.” Joan flipped a switch and Margie took control of
the ship and its armament—subject only to Cloud’s overriding right to
fire at will.
“Just a minute, Storm,” Joan said then. “Unfinished business.
Whether what?”
“Whether there’s anything I can do—or fail to do—that might
help; but I’ve got to have a lot more data.”
Cloud turned to his chart, Joan to hers; and nothing happened
until Cloud blew out the vortex himself.
The same lack of something happened in the case of the next
vortex, and also the next. Then, as the instruments began working in
earnest on the fourth, Cloud reviewed in his mind the figures of the
three previous trials. On the first vortex, a big toughie, Margie had
been two hundred fifty milliseconds short. On the second, a fairly
small one, she had come up to seventy-five. On Number Three,
middle-sized, the lag had been one twenty-five. That made sense.
Lag was proportional to activity and it was just too bad for Margie.
And just too damn bad for Joanie—the poor kid was just about to
blow her stack. . . .
But wait a minute! What’s this? This number four’s a little bit of a
new one, about as small as they ever come. Margie ought to be
taking it, if she’s ever going to take anything . . . but she isn’t! She’s
running damn near three hundred mils behind! Why? Oh—
amplitudes—frequencies extreme instability. . . . Lag isn’t
proportional only to activity, then, but jointly to activity and to
instability.
That gives us a chance—but what in all nine of Palain’s purple
hells is that machine doing with that data?
He started to climb out of his bucket seat to go around to talk to
Joan right then, but changed his mind at his first move. Even if
Margie could handle this little one it wouldn’t be a real test, and it’d
be a crying shame to give Joan a success here and then kick her in
the teeth with a flat failure next time. No, the next one, the only one
left and Vegia’s worst, would be the one. If Margie could handle that,
she could snuff anything the galaxy had to offer.
Hence Cloud extinguished this one, too, himself. The Vortex
Blaster II darted to its last Vegian objective and lined itself up for
business. Joan put Margie to work as usual; but Storm, for the first
time, did not take his own place. Instead, he came around and stood
behind Joan’s chair.
“How’re we doing, little chum?” he asked.
“Rotten!” Joan’s block was still up; her voice was choked with
tears. “She’s come so close half a dozen times today—why—why
can’t I get that last fraction of a second?”
“Maybe you can.” As though it were the most natural thing in the
world—which in fact it was—Cloud put his left arm around her
shoulders and exerted a gentle pressure. “Bars down, chum—we
can think a lot clearer than we can talk.”
“That’s better,” as her guard went down. “Your differential ’scope
looks like it’s set at about one centimeter to the second. Can you
give it enough vertical gain to make it about five?”
“Yes. Ten if you like, but the trace would keep jumping the screen
on the down-swings.”
 “I wouldn’t care about that—closest approach is all I want. Give it
full gain.”
“QX, but why?” Joan demanded, as she made the requested
adjustment. “Did you find out something I can’t dig deep enough in
your mind to pry loose?”
“Don’t know yet whether I did or not—I can tell you in a couple of
minutes,” and Cloud concentrated his full attention upon the chart
and its adjacent oscilloscope screen.
One pen of the chart was drawing a thin, wildly-wavering red line.
A few seconds behind it a second pen was tracing the red line in
black; tracing it so exactly that not the tiniest touch of red was to be
seen anywhere along the black. And on the screen of the differential
oscilloscope the fine green saw-tooth wave-form of the electronic
trace, which gave continuously the instantaneous value of the brain’s
shortage in time, flickered insanely and apparently reasonlessly up
and down; occasionally falling clear off the bottom of the screen. If
that needle-pointed trace should touch the zero line, however briefly,
Margie the Brain would act; but it was not coming within one full
centimeter of touching.
“The feeling that these failures have been partly, or even mostly,
my fault is growing on me,” Cloud thought, tightening his arm a little:
and Joan, if anything, yielded to the pressure instead of fighting
away from it. “Maybe I haven’t been waiting long enough to give your
brains the leeway they need. To check: I’ve been assuming all along
that they work in pretty much the same way I do; that they handle all
the data, out to the limit of validity of the equations, but aren’t fast
enough to work out a three-point-six-second prediction.
“But if I’m reading those curves right Margie simply isn’t working
that way. She doesn’t seem to be extrapolating anything more than
three and a half seconds ahead—’way short of the reliability limit—
and sometimes a lot less than that. She isn’t accepting data far
enough ahead. She acts as though she can gulp down just so much
information without choking on it—so much and no more.”
“Exactly. An over-simplification, of course, since it isn’t the kind of
choking that giving her a bigger throat would cure, but very well put.”
Joan’s right hand crept across her body, rested on Cloud’s wrist, and
helped his squeeze, while her face turned more directly toward the