Advanced Organizer

M a n a g in g E n g in e e r in g a n d T e c h n o lo g y
M a n a g e m e n t F u n c t io n s
P la n n in g
D e c is io n M a k in g
O r g a n iz in g
L e a d in g
C o n t r o llin g

M a n a g in g T e c h n o lo g y

P e r s o n a l T e c h n o lo g y

R e s e a rc h

T im e M a n a g e m e n t

D e s ig n

E t h ic s

P r o d u c t io n

C a re e r

Q u a lit y
M a r k e t in g
P ro je c t M a n a g e m e n t

Planning/
Decision-Making Process
1. Recognize Problem / Opportunity
2. Define Goals/Objectives

Overall Mission
/ Objectives

3. Assemble Relevant Data

5. Select the Criterion

4. Identify Feasible Alts

6. Construct a Model

7. Predict Alts Outcomes

9. Audit the Results

8. Choose the Best Alt.

Planning Tools &Techniques

Techniques for Assessing the environment
Environmental Scanning
Forecasting BenchmarkingTechniques for allocating Resources
Budgeting
Scheduling- Gantt charts, PERT Network analysis,
CPM
Breakeven Analysis
Linear programming

Mathematical Model
A model is usually refers to a
representation of an actual object to
reduced scale such as a wooden model of
a building. These models are used to study
the behavior of the actual object. For
example a scale model of an aero plane
can be used in a wind tunnel to simulate
the behavior of the actual aero plane in
flight. Mathematical model perform the
similar function. This mathematical
modeling is the aid to decision making

Tools for Decision Making under

Certainty
Linear programming
Graphical solution
Simplex method
Computer software

Non-linear programming
Engineering Economic Analysis

Linear Programming
Linear programming is the simplest
and most widely used technique for
solving decision making problems.
The aim of this method is to
determine how to meet the desired
goals while taking constraints into
account.
The term linear implies
proportionately

Linear Programming

Decision Variables
Objective Function (Maximizing or Minimizing)
Example:
A factory produces two products, product X
and product Y. If we can realize $10 profit per
unit of product X and $14 per unit of Y, what
should be the production level for product X
and product Y?
Maximize P = 10x + 14y

Linear Programming
Constrains
Example:

3 machinists
2 assemblers
Each works 40 hours/week
Product X requires 3 hours of machining and
1 hour of assembly per unit
Product Y requires 2 hours of machining and
2 hours of assembly per unit

For machining time: 3x + 2y 3(40)

For assembly time: 1x + 2y 2(40)

Linear programming
Graphical solution (Constraints)
Y
60

(0,60)

50

(0,40)

3x+2y120

40

Corner Solutions

30

x+2y80

20

Feasible
Region

10
0

10

20 30

(40,0)
40

50

(80,0)
60 70

80

90

Linear programming
Graphical solution (Objective Function)
Y
60

P=10x+14y

50

P=1050

40
30

P=700

20

P=350

10
0

10

20 30

40

50

60 70

80

90

Linear programming
Graphical solution (Objective Function)
Y
60

P=10x+14y

50

P=1050

40
30

P=700

20

P=350

10
0

10

20 30

40

50

60 70

80

90

Linear programming
Graphical solution
Y
60
50

Optimal Solution
(20, 30)

40
30
20
10
0

10

20 30

40

50

60 70

80

90

Engineering Economic Analysis

Time Value of Money
Minimum Acceptable Rate of Return
Decision Criteria
Net Present Worth
Equivalent Annual Worth
Internal Rate of Return
Benefit / Cost Ratio