Industrial Organization and Management Chapter I.ppt

iNDUSTRIAL Organization and Management

1. INDUSTRIAL ORGANIZATION AND
MANAGEMENT
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2. Learning Objectives
After studying this chapter, the students should be
able to do the following:
• Describe the origins of engineering practice.
• Identify the functions of management.
• Explain what engineering management is.
• Explain the need for engineers in
management.

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3. Engineering
•Today’s technological society is constantly changing, and with
the change comes a need for engineers to be able to address
society’s technological challenges as well as the opportunities for
the future.
•Engineers play a key role that in maintaining technological
leadership and a sound economy as the world becomes flatter in
today’s global economy.
•The engineer needs to remain alert to changing products,
processes, technologies, and opportunities, and be prepared for a
creative and productive life and position of leadership.
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4. Engineering and Management
What is an Engineer?
Ingenium: Talent, natural capacity, or clever
invention.
Early applications of Clever Inventions
based on Military
Builders of Ingenious military machines??
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5. Engineering and Management
The first issue (1866) of the English
Journal Engineering
The art of directing the great sources of power
in nature, for the use and convenience of man.
Is it an art or profession?
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6. Engineering and Management
Modern Definition of Engineering
By ABET (Accrediting Board for
Engineering and Technology)
The profession in which a knowledge of the mathematical and natural
sciences gained by study, experience, and practice is applied with
judgement to develop ways to utilize, economically, the materials and
forces of the nature for the benefit of mankind.
Engineer: A person applying his mathematical and science
knowledge properly for mankind
It is a discipline not an art.Engr.N.L. Montalbo

7. Engineering and Management
What is a system?
Interrelated components which come together for some purposes.
Components
Interrelations
Boundary
Environment
Purposeinputs
Outputs
interface
constraints
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8. Engineering and Management
What is Management?
• Directing the actions of a group to achieve a goal in
most efficient manner
• Getting things done through people
• Process of achieving organizational goals by working
with and through people and organizational resources
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9. Engineering and Management
Top-level management
(president, executive vice president)
Middle managers
(chief engineer, division head etc.)
First-line managers
(foreman, supervisor, section chief)
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10. Engineering and Management
Level Type of Job
First-line Managers
 Directly supervise non-managers.
 Carry out the plans and objectives of higher management using
the personnel and other resources assigned to them.
 Short-range operating plans governing what will be done
tomorrow or next week, assign tasks to their workers, supervise
the work that is done, and evaluate the performance of individual
workers.
Middle Management
 Manage through other managers.
 Make plans of intermediate range to achieve the long-range goals
set by top management, establish departmental policies, and
evaluate the performance of subordinate work units and their
managers.
 Provide and integrating and coordinating function so that the
short-range decisions and activities of first-line supervisory
groups can be orchestrated toward achievement of the long-range
goals of the enterprise.
Top Management
 Responsible for defining the character, mission, and objectives of
the enterprise.
 Establish criteria for and review long-range plans.
 Evaluate the performance of major departments, and they evaluate
leading management personnel to gauge their readiness for
promotion to key executive positions.
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11. Engineering and Management
Managerial Skills:
Managers need three types of skills:
Technical: Specific subject related skills such as engineering,
accounting, etc…
Interpersonal: Skills related to dealing with others and leading,
motivating, or controlling them
Conceptual: Ability to discern the critical factors that will determine
as organization’s success or failure.
Ability to see the forest in spite of the trees.
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12. Engineering and Management
Lowest Middle Top
Managerial Level
Interpersonal Skills
Conceptual Skills
Technical Skills
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13. Engineering and Management
Managerial Roles (What Managers Do)
• Interpersonal roles
• Informational Roles
• Decisional Roles
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14. Engineering and Management
• Interpersonal roles
Figurehead role: Outward relationship
Leader role: Downward relation
Liaison role: Horizontal relation
Managerial Roles (What Managers Do)
Outward
Horizontal
Downward
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15. Engineering and Management
• Informational Roles
Monitor Role: Collects information about internal
operations and external events.
Disseminator Role: Transforms information
internally to everybody in organization (like a
telephone switchboard)
Spokesman Role: Public relations
Managerial Roles (What Managers Do)
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16. Engineering and Management
• Decisional Roles
Entrepreneurial Role: Initiates changes, assumes
risks, transforms ideas into useful products.
Disturbance Handler Role: Deals with unforeseen
problems and crisis.
Resource Allocator Role: Distributing resources
Negotiator Role: Bargains with suppliers, customers
etc. in favor of enterprise
Managerial Roles (What Managers Do)
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17. Engineering and Management
Planning: Selecting missions and objectives.
Requires decision making.
Organizing: Establishing the structure for the
objective.
Staffing: Keeping filled the organization structure
Leading: Influencing people to achieve the objective
Controlling: Measuring and correcting the activities
Functions of Managers
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18. Engineering and Management
Management has a body of specialized knowledge.
This knowledge need not to be obtained in formal
disciplined programs.
Management: Is it an art or science?
Somewhere between art and science.
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19. Engineering and Management
Management has a body of specialized knowledge.
This knowledge need not to be obtained in formal
disciplined programs.
Engineering Management (Discipline+art)
Somewhere between art and science.
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20. Engineering and Management
What is Engineering Management?
Narrow definition: Directing supervision of
engineers or of engineering functions.

Proper Definition of Engineering Manager:
Engineer possessing both abilities to apply
engineering principles and skills in organizing and
directing people and projects.

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21. Engineering and Management
Management
Management can be classified into one of four categories:

An organizational or administrative process
A science, discipline, or art

The group of people running an organization
An occupational career
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22. Engineering and Management
Why Engineering Managers?
Competition is global and companies need these people
to compete successfully
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23. Engineering and Management
Advantages of Understanding Technology in Top
Management
• Really understanding the business
• Understanding technology driving the business
today and technology that will change the business
in future
• Treating Research and Development as investment
not an expense to be minimized
• Spending more time on strategic thinking
• Dedicating a customer’s problem (true marketing
via customer relations)
• Place a premium on innovation
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24. Engineering and Management
Some Successful Filipino Engineers/Managers
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•CEO of Top Frontier Investment
Holdings, president and CEO of
San Miguel Corporation
•BS Mechanical Engineering
•Far Eastern University
RAMON ANG

25. Engineering and Management
Some Successful Filipino Engineers/Managers
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•CEO of Philippine Airlines and
Chairman of LT Group
•BS Chemical Engineering
•Far Eastern University
LUCIO TAN

26. Engineering and Management
Some Successful Filipino Engineers/Managers
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•Founder of DMCI Holdings
•BS Civil Engineering
•University of the Philippines
DAVID CONSUJI

27. Engineering and Management
Some Successful Filipino Engineers/Managers
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•Founder of DMCI Holdings
•BS Civil Engineering
•University of the Philippines
TONY TAN CAKTIONG

28. Engineering and Management
Some Successful Filipino Engineers/Managers
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•Chairman of Bedfordbury
Development
•BS Industrial Engineering
•University of the Philippines
ERIC RECTO

29. Engineering and Management
Some Successful Filipino Engineers/Managers
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•Chairman of Security Bank
•BS Industrial Engineering
•Cornell University
FREDERICK DY

30. Engineering and Management
Some Successful Engineers/Managers FROM
Around the World
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•CEO of Apple
•BS Industrial Engineering
•Auburn University
TIM COOK