EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED

QUALITY MANAGEMENT SYSTEM

City of Dasmariñas,Cavite

ENGINEERING
MANAGEMENT

- Engr. Kim Harold O. Dillena, RCE, S02

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
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Engineers are often faced with responsibilities requiring outputs that will depend on the
individual accomplishments of subordinates. Managing people, is one area where the
engineer is expected to be prepared.

To be sure that engineers are well-equipped in the performance of their management

tasks, educational institutions require them to finish a three-unit course in Engineering
Management before they are allowed to graduate.

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THE FIELD OF ENGINEERING

MANAGEMENT

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THE FUNCTIONS OF THE ENGINEER

since prehistoric times, mankind has benefited from the various tools,
equipment, and projects developed by engineers. Among these are the
following:
• The stone bladed axe and irrigation system – 6000 to 3000 B.C
• The pyramids of Egypt – 3000 to 600 B.C
• Roadbuilding by the romans 600 B.C to 400 A.D
• Production of paper and gunpowder – 100 to 1600 A.D
• The production of steam engine – 1601 to 1799 A.D
• The manufacture of cars and appliances – modern times

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
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Functions of engineering
• Research
• Design and development
• Testing
• Manufacturing
• Construction
• Sales
• Consulting
• Government
• Teaching
• Management

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WHAT IS ENGINEERING MANAGEMENT

Engineering Management refers to the application of the technical knowledge

with the ability to organize and coordinate an organizations resources to
achieve its objectives

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HOW ONE MAY BECOME A SUCCESSFUL ENGINEER MANAGER

Successful engineer managers do not happen as matter of chance, although
luck is a contributory factor. It is very important for the engineer manager to
know the various factors leading to successful management.
There are four general preconditions for achieving lasting success as a
manager. They are as follows :
• Ability
• Communication
• Responsibility
• Decision making

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QUALITY MANAGEMENT SYSTEM
City of Dasmariñas,Cavite

DECISION-MAKING

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EMILIO AGUINALDO COLLEGE ISO 9001: 2015 CERTIFIED
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DECISION-MAKING
Managers of all kinds and types, including the engineer manager, are
primarily tasked to provide leadership in the quest for the attainment of the
organization’s objectives. If he/she is to become effective, he/she must learn
the intricacies of decision making. Many times, he/she will be confronted by
situations where he will have to choose from among various options. Whatever
his/her choice, it will have effects in the operation of this organization.

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THE DECISION MAKING PROCESS

Decision-making, according to David H. Holt, is a process involving the
following steps:
• Diagnose problem
• Analyze environment
• Articulate problem or opportunity
• Develop viable alternatives
• Make a choice
• Implement decision
• Evaluate and adapt decision results

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Diagnose
problem

Analyze
environment

Articulate
problem Determine steps
where error was
made
Develop viable
alternatives

Results not
Evaluate achieved
alternatives

Implement Evaluate Results Adapt decision

Make a choice
decision results achieved results

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APPROACHES IN SOLVING PROBLEMS

in decision-making, the engineer manager is faced with problems which
may either be simple or complex. To provide engineers with some guide, they
must be familiar with the following approaches:
1. Qualitative Evaluation
2. Quantitative Evaluation

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Qualitative Evaluation, this term refers to evaluation of alternatives using

intuition and subjective judgement. Managers tend to use the qualitative
approach when:
1. The problem is fairly simple
2. The problem is familiar
3. The costs involved are not great
4. Immediate decisions are needed

Quantitative Evaluation, this term refers to the evaluation of alternatives using

any technique in a group classified as rational and analytical.

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The types of quantitative techniques which may be useful in decision-making are as

follows:
• Inventory models
• Queuing theory
• Network models
• Forecasting
• Regression analysis
• Simulation
• Linear programming
• Sampling theory
• Statistical decision theory

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INVENTORY MODELS
Inventory models consist of several types all designed to help the engineer
manager make decisions regarding inventory. They are as follows:
1. Economic order quantity model – used to calculate the number of items that
should be ordered at one time to minimize the total yearly cost of placing
orders.
2. Production over quantity model – this is an economic order quantity
technique applied to production orders
3. Back-order quantity model – this is an inventory model used for planned
shortages
4. Quantity discount model – an inventory model used to minimize the total cost
when quantity discounts are offered by suppliers

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QUEUING THEORY
The queuing theory is one that describes how to determine the number of
service unit that will minimize both customer waiting time and cost of service.

This is applicable to companies where waiting lines are a common situation.

Examples are cars waiting for service at a car service center, ships and barges
waiting at the harbor for loading and unloading by dock-workers, programs to
be run in a computer system that processes jobs, etc.

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NETWORK MODELS
These are models where large complex tasks are broken into smaller segments
that can be managed independently.
The two most prominent network models are:
1. The Program Evaluation Review Technique (PERT) – a technique which
enables engineer managers to schedule, monitor, and control large and
complex projects by employing three-time estimates for each activity.
2. The Critical Path Method (CPM) – this is a network technique using only one
time factor per activity that enables engineer managers to schedule, monitor,
and control large and complex projects.

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FORECASTING
There are instances when engineer managers make a decisions that will
have implications in the future. A manufacturing firm, for example, must put up
a capacity which is sufficient to produce the demand requirements of
customers within the next 12 months. To make decisions on capacity more
effective, the engineer manager must be provided with data on demand
requirements for the next 12 months. This type of information may be derived
through forecasting.
Forecasting may be defined as “the collection of past and current
information to make predictions about the future”.

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REGRESSION ANALYSIS
The regression model is a forecasting method that examines the association
between two or more variables. It uses data from previous periods to predict
future events.
Regression analysis may be simple or multiple depending on the number of
independent variables present. When one independent variable is involved, it is
called simple regression; when two or more independent variables are
involved, it is called multiple regression.

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SIMULATION
Simulation is a model constructed to represent reality on which conclusions
about real-life problems can be used. It is a highly sophisticated tool by means
of which the decision maker develops a mathematical model of the system
under consideration.
Simulation does not guarantee an optimum solution, but it can evaluate the
alternatives fed into the process by the decision-maker.

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LINEAR PROGRAMMING
Linear programming is a quantitative technique that is used to produce an
optimum solution within the bounds imposed by constraints upon the decision.
Linear programming is very useful as a decision-making tool when supply and
demand limitations at plants, warehouse, or market areas are constraint upon
the system.

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SAMPLING THEORY
Sampling theory is a quantitative technique where samples of populations
are statistically determined to be used for a number of processes, such as
quality control and marketing research.
When data gathering is expensive, sampling provides an alternative.
Sampling, in effect, saves times and money.

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STATISTICAL DECISION THEORY

Decision theory refers to the “rational way to conceptualize, analyze, and
solve problems in situation involving limited, or partial information about the
decision environment.

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