Engineering Management 2

MME40001

Swinburne University
Welcome….

Amir Abdekhodaee
ATC823
level 8, mail box 1
9214 5263
aabdekhodaee@swin.edu.au
Joseph Kikonyogo (Law imperative)
Emma Rae (Accounting and Finance)
Kourosh Dini, Benjamin Mooney, Bahador
Bahadori, Farnaz Modarresi, Arezoo
Ektesabi
Why Engineering
Management?

Why Engineering
Management 2?
 Engineering Management 1 gives an
overview of management functions, its history,
organisational structure and development, project
management

 Engineering Management 2 gives an

overview of how to select, design and produce products
and how to make profit
Vision for future

It is clearly recognized that many engineers progress into

managerial and top executive positions in industry and
government. For such individuals the foundation should
be laid in college for an understanding of human
relationships, the principles of economics and
government, and other fields upon which the
engineering manager can build’’
 Grinter, L. E. ~1955!. ‘‘Report on evaluation of engineering education.’’
American Society for Engineering Education, Washington, D.C.
Engineers vs managers

 Engineers assume variables can be described and

measured objectively
 Engineering is based on the application of physics,
chemistry, biology, mathematics, management more
involved with psychology, sociology, economics, finance
 Engineering’s objective is to create a product,
management’s aim is to create a team, organisation
Engineers could be good
managers
 They ask why and they look for logic
 They have a system approach, they look for system
boundary, system components, input, output, process
 They are practical and pragmatic
 They have inspiration to change
Why we need management
skills
 Development of a product requires various skills so we
need to work in teams
 We need to know to work with and through
organisation, we need to lead
 Environment is changing and evolving, we need to be
time sensitive
 We need to be cost sensitive
 We need to be customer sensitive
 We need to be environment sensitive I –sustainability,
global warming, contamination,…. – who is responsible
for it?
 We need to be environment sensitive II – political
environment, economical environment, technological
environment
Possible future managerial
positions for engineers:
 Project managers
 Operations managers
 Manufacturing and production managers
 IP developers
 Entrepreneurs
 Quality managers
 Risk managers
 Safety managers
Institution of Engineers Australia
1991 suggest:
Communication for engineers,
 Economics,
 Accounting for engineers,
Law for engineers,
The engineer and society,
Organizational behavior,
Engineering economics
Managing people,
Marketing for engineers,
Engineering finance,
Management science,
Human resource
management,
Operations and quality
management,
Business strategies for
engineers,
Engineering and project
management, and
Engineering innovation.
Characteristics of real world problems:
(Jonassen, Strobel, Lee 2006)

 Work place problems are Ill-structured

problems
 Ill-structured include aggregates of well
structured problems
 Ill-structured problems have multiple,
often conflicting goals
 Ill-structured problems are solved in
many ways
Characteristics of real world problems:
(Jonassen, Strobel, Lee 2006)

 Success is rarely measured by engineering standards

 Most constrained are non-engineering
 Problem solving knowledge is distributed among team
members
 Most problems requires extensive collaboration
 Engineers primarily rely on experiential knowledge
 Engineering problems often encounter unanticipated
problems
Characteristics of real world problems:
(Jonassen, Strobel, Lee 2006)

 Engineers use multiple forms of problem representation

 Engineers recommend more communication skills in engineering curricula
 What are the basic functions of a business?
 Attract/accept customer orders
 Create/ produce value/product
 Deliver product
 Generate profit
Essential functions:

 Marketing Management
 Operations/Project Management
 Financial Management
 Legal Management
Marketing

 Product
 Fit the consumers need……
 Place
 Could reach the customer…….
 Pricing
 Representing good value……..
 Promotion
 Advertising……..
Operations management

 schedule jobs and operations – production

management
 product and process design
 how to resource activities
 quality management
 inventory management
Economics

 Microeconomics – Supply and Demand

 Macroeconomics – understanding major factors of an
economy
Financial management

 Accounting
 Balance sheet
 Profit/loss statement
 Cashflow

 Project selection
 Interest rate and its impact
Legal issues

 Contract

 Tenders

 Intellectual Property
 Industrial Relations
Organisational Charts
Commercial Bank

Operations Finance Marketing

Teller Investments Loans
Scheduling Security Commercial
Check Clearing Real estate Industrial
Collection Financial
Transaction Accounting Personal
processing
Facilities Mortgage
design/layout
Auditing
Vault operations
Trust Department
Maintenance
Security
Figure 1.1(A)
 Organisational Charts
Airline

Operations Finance/ Marketing

Ground support accounting Traffic
equipment Accounting administration
Maintenance Payables Reservations
Ground Operations Receivables Schedules
General Ledger Tariffs (pricing)
Facility
maintenance Finance Sales
Catering Cash control Advertising
Flight Operations International
exchange
Crew scheduling
Flying
Communications
Dispatching
Management science Figure 1.1(B)
 Organizational Charts
Manufacturing

Operations Finance/ Marketing

Facilities accounting Sales
Construction; maintenance Disbursements/ promotion
Production and inventory control credits Advertising
Scheduling; materials control Receivables Sales
Quality assurance and control Payables
General ledger Market
Supply-chain management research
Funds Management
Manufacturing
Tooling; fabrication; assembly Money market
International
Design exchange
Product development and design
Detailed product specifications Capital requirements
Industrial engineering Stock issue
Efficient use of machines, space, Bond issue
and personnel and recall
Process analysis
Development and installation of
production tools and equipment Figure 1.1(C)
Assessments

1. Final examination 30% - Individual

undertaking
2. Feedback Tests:
 Accounting 10%
 Legal case assessment 10%
3. Business plan project 40% - Group
undertaking (Final presentation will be
marked individually)
4. Minor Activities 10% - Individual undertaking
Where to find important
information?
 Canvas
 Unit guide
 Textbooks

Heizer, J. and B. Render, Operations Management. 8 ed. 2006,

2008, 2012: Pearson-Prentice Hall.

Atrill, P., E. Mclaney, D,. Harvey, and M. Jenner, Accounting An

Introduction, 3e, 2006. Pearson.
General criteria for
assessment
 Level of understanding
 Well structured and well integrated
 Well supported
 Using diagrams/table to make it more understandable
 Well formatted and adequately referenced
 Submit on time, don’t be late !!
 Use your university account for your emails, system
automatically categorise some emails as spam, mention
your subject code
 Assignments requires your continuous attention
 Treat your assignment as simple and then improve on it
for higher marks.
 Consider the class as a team, help each other and help
me
Thank you