Research II Revised
Content
California $tate {lniyersity
Narthridge
Group Research Assignment
II (Revised)
Overview of Engineering Management
MSE40i
I
*l$l !
.\2".-t
+,
^
$ri*
Hassan Alanazi Unmesh Sirvastava
d4
--)-'-
Ibrahim Albawardi
Patrick Yomba
November 18,2009
Index
Defining Engineering Objectives of
Management.......
..................
4
EM...... Manage the Workforce.... Strategic Planning. Forecasting Organizing. Comparison.............
6 6 7
8
8
EM & MBA courses
9
Engineering Management Career
Salary.
Tasks
l0
10
11
Business Activities of Engineering Management..... Finance and A ccounting
L2
t2
13
Marketing
Managerial Science
14 16
Manufacturing systems and production
Conclusion References
17
18
Introduction Over the years, people have interests and concerns regarding the
aspects affecting their lives. Characteristics, such as financial, social, and
educational standards, have either positively or negatively affected them
as
individuals or groups. For instance, education tends to have an effect on the
individuals by increasing their knowledge and expertise. One of the best
procedures to acquire an educational advantage is to gain an academic degree.
An academic degree is defined as a status levels awarded by an institution of
higher education, such as universities, as the result of successfully completing
a program
of study (1). In other words, the academic degree serves as a proof,
given by an academic institute, of the educational experience a student gained
within his or her academic years.
Academic degrees have a wide variety of majors, such as medicine,
management, and engineering. Also, multiple levels, such as bachelor, master,
and doctorate, rank academic degrees. For management degree, students
majoring in management learn the successful skills and techniques to achieve
the organization's aim and goals in the business field. Such techniques include planning, organizing, leading and controlling (2).
Also, management, as a major, has the flexibility to be merged to other
majors based on the industry demand. The successful application of
management
on other majors has
generated new managerial academic
programs. Moreover, the demand from the job market for new graduate with
a
management perspective has increased the application within other different
majors. Examples of successful majors after the application are hospitality management, information systems management, project management, and
engineering management.
1
{
f,,,
, \
Engineering management has showed great success
in the
business
field by applying the managerial techniques to an engineering perspective that generate more efficient results and findings. This report engineering management as
will
define
and
a
major, shows its main differences
programs,
similarities
with other academic
f
the careers available for
engineering management graduates, and its applications within the business
environment,
r' l)
./
f:
- l .t
Defining Engineering Nlanagement:
As mentioned earlier, engineering management graduates have a high
demand
in the business. Before discussing engineering management as a
major, a clear and precise definition of the major is required. Engineering
management
is
defined as: the blend
of the management skills and
engineering experience that guides specialists in highly technical tasks (3).
The American Society for Engineering Management (ASEM)
defines
engineering management as "the art and science of planning, organizing, allocating resources, and directing and controlling activities which have
technological component" (4).
a
The main subjects an engineering management student or manager
focuses on are material management, product design, quality management, engineering economy, innovation management, and operation management.
Also, strong communication skills is required from an engineer manager to
present the findings clearly and
in a professional manner. The
degree is
provided in both on-campus and online with multiple academic levels, such
as bachelor, master, and certificate programs. Due to its attractiveness as a
major, engineering management have multiple concentrations for students to
choose from. Examples
of the concentrations atei
engineering and
technology management, operation research and management science, and
knowledge management (3).
Similar to the other engineering degrees, engineering management graduates have established organizations
management professionals. ASEM
to support
engineering
supports
is the main organization that
engineering management professionals with new solutions, technologies,
and systems studied and successfully applied within the business. ASEM is
famous for their journal, which is an excellent source for effective case
studies and projects from around the US and world businesses (4).
As we learned from Dr. Mark lectures, engineering management goal
is to prepare
managels and engineers
to be ready to manage engineers,
strategic plan, forecast, organize and control. Most of engineering managers manage engineers as we can imply from its comprehensive definition. They lead a technology or engineeling organization to help reach its goals and reach its bottom line which is profit (5).
Manage the Workforce:
Management
in general involves interacting with people and getting
them to achieve the organization goals and objectives. This is more difficult
when we talk about managing engineers and high professionals. These
difficulties range from decision making and taking consideration managing
conflicts between each other. Engineering managels tend to make tough
decisions and these decisions are sometimes critical personal life. Also, performance evaluation is one
to some engineer's
of the critical parts of
managing engineers. There ale so many different trends on evaluating an engineer's performance and mistakes may arise when evaluating candidates.
Some
of these critical factors are personal conflicts, miscommunications
on
peer evaluation, one to one evaluation and negative approach. This could be
noticed when you are a coworker or a subordinate and you have to evaluate the candidates you manage or work with. You could experience diversity of
personalities and the best way
is sharing
experiences
to learn from each
individual when there is a lack of knowledge. (5)
Strategic Planning:
Strategic planning
is a vital part of the engineering
management
discipline which involves mission, vision, values and (Strengths Weaknesses Opportunities Threats) SWOT analysis within an organization. Most of the
500 fortune companies have a successful mission and vision statements where
they declare their objectives and goals for the next five to ten years. For
example, chevron set their goals to satisfy a safety and quality of products in
Saudi Arabia that meet the people's values and expectations (5) (6).
SWOT analyses identify the internal and external factors that
favorable and unfavorable
are
to achieving organizations' objectives. SWOT
analysis helps an organization with a good forecasting and planning to reduce
risk to the company and identify weaknesses that are critical to the company's
outcome. Strengths and Opportunities are helpful to achieving the objectives
where on the other hand Weaknesses and threats are risky
to
achieving
organizational objectives. Likewise, strengths and weaknesses are internal attributes
of the organization where opportunities and threats are external
attributes of the environment. An organization could look at their strengths
and ask themselves what are the strengths of our company. This could open up
an opportunity for development such as investing on internet or online
marketing and product development (6).
Forecasting:
Forecasting is defined as
"a
statement about the future value
of
a
variable of interests such as demand". The purpose of forecasting is to make effective decision. Forecasting could be a used in a long-term or short-term, It
has a valuable impact on decisions in variety of functions of accounting,
marketing, production, design and finance. Forecasting is important because
it
plays an effective role in planning for a long range and short range of time.
There are many methods in forecasting. One of the methods is Delphi method,
it
involves opinions and feedbacks. Also, there are some types of forecasts
such as judgmental, time series and associate models (5).
Organizing:
Organizing
is
one
of the engineering management
functions. It
alranges and relates jobs tasks relative to work to be performed by people.
-
Financial Planning & Budget Analysis Time Management
Organizing workplace
Developing structure
Establishing Relationships and Delegating work (5).
BM & MBA Courses Comparison
.1\.
ia
u
i
"-Here
is a comparison of some of the major courses in Engineering of Business Administration within California
Management and Management
State University Northridge in the school of Business and Engineering. Most
of the Management of Business Administration and engineering management
courses are slightly similar
in the degree
courses plan.
In MBA, courses are
more
more general where in engineering management courses are
concentrated on engineering and management only (7)
(8).
\
,l,i
* i: .
-
.MEM
Engineering Financial & Cost Analysis Economic Analysis of Engineering Systems Operational Research Engineering Statistics Management of Engineering Professionals Advanced Engineering Management
MBA
Financial Theory & Policy
Strategic Economics Operational Management
Business Statistics
Human Resources Management Management of Innovation
MEM Comprehensive Studies
MBA Consulting Graduate Project
Table 1. Engineering management and MBA comparison (7) (8)
Engineering Management career
Salary:
The typical salary for an engineering manager in the United States
range from $99,000 to $128,000 with an average of $113,000.This salary
could change due the experience, company size and location (11).
Planning which is the most primary function and take the most time
requires the selections of goals and the tools to achieve that goal. To be able to
plan engineering manager have to forecast where forecast is the most
important and usually don't need money. Decision making is the step where Engineering manager have to take action and deal with the uncertainty. By
Organizing Engineering manager tend
to actualize the plan by
using the
money allocating time schedule the operation. Organizing required a lot of
money. By leading they supervise and manage the activity or performance of
the technical personnel. Controlling allows Engineering Manager to have the confirmation that they progressing in accord with the plans and objectives. By
controlling they keep things in check and balance (12). Engineering Manager
has the primary goal
of for implementing the technical and scientific
goals
define by management goal (14). Personally
I believe Engineering managers
are very different from other managers by the fact that they have both
management and engineering background. That allows them understand technical task as well as manage them.
to
easily
lead
To be able to
Engineering Manager need a lot of personality they should have good writing
and communication skill.
10
Tasks:
Engineering Management student could explore a wide range of career
opportunity such
as Project
manager, consultant,
plan
supervisor,
manufacturing engineer, financial analyst, Chief Executive Officer and more. From the university of Wisconsin-Madison official webpage we could notice
have the approximate information regarding the career
manager.
of engineering
Corporate
"25 Va of engineering graduates will become Top
Management, Chief Operating Officer, Managing Director, Vice President of
Operations, Director
of
Engineering, Business Planning Manager, and
Manufacturing Management
".
30Vo
of engineering manager students will
Chain
follow the career path of Plant Manager, Supervisor of Supply
Integration, Manufacturing Systems Engineering Manager, and Project Manager. 12 Vo of the students will choose to become, Quality Assurance
Engineer, Technical Contributor/Practitioner, Assembly and Test Engineer, Automation Engineer, Applications Engineer, Materials Engineer
727o
of the student will also become, Training Executive/Management,
Head of Supply Chain Management, Senior Management Consultant, and
Quality Engineer. I3Va of the student will take Other Executive/Management,
Group Manager, Mechanical Engineering Supervisor, Senior Manager
Information Systems, and Research/Development Project Manager. And finally
87a
of the student will choose Academic Professionals career. (13)
11
Business Activities of Ensineering Management
Finance and Accounting:
The Engineering Management progams all over the world have great
importance of Engineering Finance and cost analysis. The course work mainly
consists of the following Syllabus:
Balance Sheet, Income Statement, The Cash Flow
Refinements
Statement,
of
Accounting Transactions, Closing transactions, Ratio
Analysis, Cooking the Books, Financing a Business, Introduction to Cost Accounting, Apply Overhead
,
Managerial Accounting (CPV Curve and
Contribution Margin), Budgeting and Variance Analysis, The Budget and
Controlling Expenses. ( 15)
By the above course work the Engineering Managers are totally
equipped to handle real
life indusffy concepts such as future markets, pricing
of
forwards and futures, interest exchange rates, option markets, option
markets and option strategies. (16)
Engineering managers should have sound knowledge of finance from
account receivables
to
account payables and double book entries, the
engineering managers need to know the sales and levenues and how each of
these financial tools helps in each sphere of business activities.
t2
The modern day Engineering Managers should know how to:
a.
Accounting fundamentals such as debits, double-entry bookkeeping
and credits.
b.
Analyze basic financial documents such as balance sheets and income
statements.
c. d. e. f. g.
h.
Use financial tools to manage performance of the business.
Determine how assets and liabilities affect area of operation.
Apply financial ratios and risks in decision making.
Justify requests for new capital investments.
Improve budgeting and finances.
Relate their department finance to bigger processes.
Marketing:
Very often in engineering companies, the role of marketing is assumed to
be too naffow a perspective.
A
more comprehensive view
of marketing
identifies three distinct roles of marketing:
a.
b.
Business philosophy use in Marketing.
Strategic Marketing.
c.
Marketing at functional level.
Thus, marketing especially in engineering industry is a combination of
particular skills and practices which are combined together to come up with particular solutions to diverse set of problems, There was a survey done taking
t3
different manufacturing companies and came up with a finding which was
based on the following.
The Miles and Snow strategy
in
which the analyzers,
prospectors,
defenders and reactors are considered as the optimum strategy which is mostly
used in the engineering industry to come up with optimum business plans. In
the engineering both prospectors and analyzers follow the latest trend in
Technology. Marketing in engineering is now done by different media such
as
internet, print media and news media, with internet being the most famous
means
of
media
of
marketing. Engineering companies are now slowly
developing their marketing departments to get the marketing part of product intact which was earlier being handled by various marketing and advertising
companies (18)
Managerial Science:
Managerial Science,
is a branch of applied mathematics which is
combined with economics, business, engineering, and is utilized other sciences
which helps Engineering Managers make optimized decisions. Engineering
Managers apply methods which have come up with research and development
on various fields to come up to a solution which is optimized and gives the
best possible solution for the problem being considered.
It utilizes Program
Evaluation and Review Technology (PERT), Critical Path Method (CPM),
I4
Linear programming and various other mathematical models to come up to an optimal solution. This field is called Operations research
Some of the roles of engineering managers relating to Managerial Science are:
.
Improve the operational systems, processes and their streamlining
going hand in hand with the company policies being intact.
.
Manage and making the systems such as HR and technical support
more effective by coming up with process improvements and also
improving the methods of working of the manpower.
.
Foresee and implement long term planning and striving hard towards operational excellence.
.
Look the financial aspect of the project inclosing finances and cost
factor.
.
Management
management.
of
agency budget coordinating
with the upper
. . . . . .
Developing individual and team budgets.
Calculating and invoicing completed units of service. Managing the payroll.
Developing and organizing the fiscal documents. Regular meetings with upper level management for operations and
development Project management (19).
15
Manr"rtacturing systerns and production:
Manufacturing Process Management (MPM)
is a
collection of
how
technologies and methods used by Engineering Managers
products are to be manufactured.
to define
It is utilized in streamlining the process of manufacturing
after each
cycle and also it is moreover important for proper management of the whole
manufacturing process.
MPM includes:
1.
"Production process planning".
Planning the process of manufacturing Planning of workflow and plant design
2. 3. 4. 5.
Workloads on multiple stations by fragmenting the workload.
Process Tools for simulation like manufacturing lines.
6.
7. 8. 9.
Simulation and production ergonomically
Activity Based Costing
Cost and time estimates of the process.
FMEA (20).
r6
Conclusion
,1
--,_
In conchi'Sion,
engineering management
is the art and science of
planning, organizing,locating resources, directing, and controlling activities.
It plays
a large
role in strategic planning, managing the workforce, forecasting,
and organizing. This also could involve SWOT analysis
for a good short or
long term organizational plan. There are many similarities and differences
between
MBA and MEM degree goals where EM is more concentrated
and
focused on engineering professionals and activities. Also, the tasks of EM
vary from supply chain management, project management, and consulting.
Moreover, communication takes most of the managers' time, which can be used
for analyzing the goals and how to achieve them. As for
business
activities,
EM is involved in the following; accounting and finance,
managerial science, marketing, and manufacturing systems and production.
17
Reference:
"Academic degree." Wikipedia, the free encyclopedia. Web. <http ://en.wikipedia.org/wikTAcademic_degree>.
1.
2. 3.
"Department of Management - The Major." California State Univ ersity, Northridge. Web. <http://www.csun.edu/mgVthemajor.html>.
Engineering Management Major lWhat Can You Do With a College Degree in Engineering Management?" Online Degree Programs from Online Colleges & Llniversities I WorldWicleLearn.corz. Web. <http ://www.worldwideleam.com/on I ine -educati onguide/engineering/engineering-management-maj or.htm>.
4. 5. 6.
"American Society for Engineering Management." Web.
<http ://www. asem. org/home.html>.
CSUN WebCT Home Page. Web. <http://webct.csun.edu>.
"Strategic Planning (in nonprofit or for-profit organizations)." Free Management Library (SM). Web.
<http://rn anageinenthelp.org/pl an_dec/stlplar/str*plan.hhn>.
"ManufacturingSysternsEngineeringandManagernent." CaliJbrnia tate Univ ersity, Northridge. W eb. <ltttp://www.csun.edu/catalog/manufacturingsystemsengineeringanclmanageni ent.html>.
S
7.
"Graduate Programs -." California State University, Northridge.Web. <http :i/www.csun.edu/m ba/Currentmba.html>.
8.
"Saudi Arabian Chevron." Scu,tdi Arabian Chevron: Horne page.Web. <http ://www. sachevron.com/vision. aspx>.
9.
10, tt.
Szasz-Gabor, Aron. "Forecasting methods applied to engineering." University Politehnica of Bucharesr (2006). Print.
Salary"corn Job Salaries & Compensatiott Survey Sqftware.Web.
sl
<https ://secure. sal ary.com/mysalary/l ayoutscripts/m
l_l o gin. asp>.
18
Morse, Lucy C., and Daniel L. Babcock. Managing Ertgineering and Technology. 4th ed. Print.
12.
13,
"Careers in Manufacturing and Erigineering Management." UW'-
Madison I Manufac:turing Sy,stems Engineering I Horne.Web. <http ://rnsep.en$. wisc.edu/index.php/students/j obplacement/65 jclbplacemen>.
"Engineering Management Careers - Engineering Degrees, Salary Info." CooI Summer Jobs, Seasonal Jobs, and Interesting Careers in the U.S. and Abroad - JobMonkey. Web. <http ://www j obmonkey.com/highpayingj obsiengineering-managers.html >.
14.
"Professor Scott Wainess - MSE 608C - Ircture Notes." Califunia State Univ ersity, N ortltridge. W eb. <http ://www.cstin.edu/-swaines s/608LN.htm l >.
15.
Engineering Management Courses. Engineering Management Course.s. Engineering Management Courses. Web. <http ://emse.rnst.edddocuments/EM_Course_Descriptions. pdf>.
1,6.
"Finance & Accounting for Nonfinancial Managers, Second Edition Self-Sttrdy Courses." AMA Self-Stutly Courses - Self-paced leaming fcsr afast puced vtorlcl.Web. <http://www.amaselfstudy.org/course.cfm?isbn=91 801 6 1 21 45 40>.
t7.
18, "The role of marketing and innovation management in the Finnish electrical and electronics industry ." Inde rs c i.enc e P ublishers. Web. <http://www.inderscience.com/search/index.php?action=record&rec_id=301 &prevQuery=&ps= I Q&m=or>. 19. 20.
"Management science -." Wikipedia, the free encyclopedla. Web.
a.
8
<http ://en.wikipedi
orlwi
ki/Managem ent_science>.
"Manufacturing process management -." Wikipedicr, the free encyc:lopeclla. Web. <http ://en.wikipedia. org/wiki/Manufac turing_process_management>.
l9
Narthridge
Group Research Assignment
II (Revised)
Overview of Engineering Management
MSE40i
I
*l$l !
.\2".-t
+,
^
$ri*
Hassan Alanazi Unmesh Sirvastava
d4
--)-'-
Ibrahim Albawardi
Patrick Yomba
November 18,2009
Index
Defining Engineering Objectives of
Management.......
..................
4
EM...... Manage the Workforce.... Strategic Planning. Forecasting Organizing. Comparison.............
6 6 7
8
8
EM & MBA courses
9
Engineering Management Career
Salary.
Tasks
l0
10
11
Business Activities of Engineering Management..... Finance and A ccounting
L2
t2
13
Marketing
Managerial Science
14 16
Manufacturing systems and production
Conclusion References
17
18
Introduction Over the years, people have interests and concerns regarding the
aspects affecting their lives. Characteristics, such as financial, social, and
educational standards, have either positively or negatively affected them
as
individuals or groups. For instance, education tends to have an effect on the
individuals by increasing their knowledge and expertise. One of the best
procedures to acquire an educational advantage is to gain an academic degree.
An academic degree is defined as a status levels awarded by an institution of
higher education, such as universities, as the result of successfully completing
a program
of study (1). In other words, the academic degree serves as a proof,
given by an academic institute, of the educational experience a student gained
within his or her academic years.
Academic degrees have a wide variety of majors, such as medicine,
management, and engineering. Also, multiple levels, such as bachelor, master,
and doctorate, rank academic degrees. For management degree, students
majoring in management learn the successful skills and techniques to achieve
the organization's aim and goals in the business field. Such techniques include planning, organizing, leading and controlling (2).
Also, management, as a major, has the flexibility to be merged to other
majors based on the industry demand. The successful application of
management
on other majors has
generated new managerial academic
programs. Moreover, the demand from the job market for new graduate with
a
management perspective has increased the application within other different
majors. Examples of successful majors after the application are hospitality management, information systems management, project management, and
engineering management.
1
{
f,,,
, \
Engineering management has showed great success
in the
business
field by applying the managerial techniques to an engineering perspective that generate more efficient results and findings. This report engineering management as
will
define
and
a
major, shows its main differences
programs,
similarities
with other academic
f
the careers available for
engineering management graduates, and its applications within the business
environment,
r' l)
./
f:
- l .t
Defining Engineering Nlanagement:
As mentioned earlier, engineering management graduates have a high
demand
in the business. Before discussing engineering management as a
major, a clear and precise definition of the major is required. Engineering
management
is
defined as: the blend
of the management skills and
engineering experience that guides specialists in highly technical tasks (3).
The American Society for Engineering Management (ASEM)
defines
engineering management as "the art and science of planning, organizing, allocating resources, and directing and controlling activities which have
technological component" (4).
a
The main subjects an engineering management student or manager
focuses on are material management, product design, quality management, engineering economy, innovation management, and operation management.
Also, strong communication skills is required from an engineer manager to
present the findings clearly and
in a professional manner. The
degree is
provided in both on-campus and online with multiple academic levels, such
as bachelor, master, and certificate programs. Due to its attractiveness as a
major, engineering management have multiple concentrations for students to
choose from. Examples
of the concentrations atei
engineering and
technology management, operation research and management science, and
knowledge management (3).
Similar to the other engineering degrees, engineering management graduates have established organizations
management professionals. ASEM
to support
engineering
supports
is the main organization that
engineering management professionals with new solutions, technologies,
and systems studied and successfully applied within the business. ASEM is
famous for their journal, which is an excellent source for effective case
studies and projects from around the US and world businesses (4).
As we learned from Dr. Mark lectures, engineering management goal
is to prepare
managels and engineers
to be ready to manage engineers,
strategic plan, forecast, organize and control. Most of engineering managers manage engineers as we can imply from its comprehensive definition. They lead a technology or engineeling organization to help reach its goals and reach its bottom line which is profit (5).
Manage the Workforce:
Management
in general involves interacting with people and getting
them to achieve the organization goals and objectives. This is more difficult
when we talk about managing engineers and high professionals. These
difficulties range from decision making and taking consideration managing
conflicts between each other. Engineering managels tend to make tough
decisions and these decisions are sometimes critical personal life. Also, performance evaluation is one
to some engineer's
of the critical parts of
managing engineers. There ale so many different trends on evaluating an engineer's performance and mistakes may arise when evaluating candidates.
Some
of these critical factors are personal conflicts, miscommunications
on
peer evaluation, one to one evaluation and negative approach. This could be
noticed when you are a coworker or a subordinate and you have to evaluate the candidates you manage or work with. You could experience diversity of
personalities and the best way
is sharing
experiences
to learn from each
individual when there is a lack of knowledge. (5)
Strategic Planning:
Strategic planning
is a vital part of the engineering
management
discipline which involves mission, vision, values and (Strengths Weaknesses Opportunities Threats) SWOT analysis within an organization. Most of the
500 fortune companies have a successful mission and vision statements where
they declare their objectives and goals for the next five to ten years. For
example, chevron set their goals to satisfy a safety and quality of products in
Saudi Arabia that meet the people's values and expectations (5) (6).
SWOT analyses identify the internal and external factors that
favorable and unfavorable
are
to achieving organizations' objectives. SWOT
analysis helps an organization with a good forecasting and planning to reduce
risk to the company and identify weaknesses that are critical to the company's
outcome. Strengths and Opportunities are helpful to achieving the objectives
where on the other hand Weaknesses and threats are risky
to
achieving
organizational objectives. Likewise, strengths and weaknesses are internal attributes
of the organization where opportunities and threats are external
attributes of the environment. An organization could look at their strengths
and ask themselves what are the strengths of our company. This could open up
an opportunity for development such as investing on internet or online
marketing and product development (6).
Forecasting:
Forecasting is defined as
"a
statement about the future value
of
a
variable of interests such as demand". The purpose of forecasting is to make effective decision. Forecasting could be a used in a long-term or short-term, It
has a valuable impact on decisions in variety of functions of accounting,
marketing, production, design and finance. Forecasting is important because
it
plays an effective role in planning for a long range and short range of time.
There are many methods in forecasting. One of the methods is Delphi method,
it
involves opinions and feedbacks. Also, there are some types of forecasts
such as judgmental, time series and associate models (5).
Organizing:
Organizing
is
one
of the engineering management
functions. It
alranges and relates jobs tasks relative to work to be performed by people.
-
Financial Planning & Budget Analysis Time Management
Organizing workplace
Developing structure
Establishing Relationships and Delegating work (5).
BM & MBA Courses Comparison
.1\.
ia
u
i
"-Here
is a comparison of some of the major courses in Engineering of Business Administration within California
Management and Management
State University Northridge in the school of Business and Engineering. Most
of the Management of Business Administration and engineering management
courses are slightly similar
in the degree
courses plan.
In MBA, courses are
more
more general where in engineering management courses are
concentrated on engineering and management only (7)
(8).
\
,l,i
* i: .
-
.MEM
Engineering Financial & Cost Analysis Economic Analysis of Engineering Systems Operational Research Engineering Statistics Management of Engineering Professionals Advanced Engineering Management
MBA
Financial Theory & Policy
Strategic Economics Operational Management
Business Statistics
Human Resources Management Management of Innovation
MEM Comprehensive Studies
MBA Consulting Graduate Project
Table 1. Engineering management and MBA comparison (7) (8)
Engineering Management career
Salary:
The typical salary for an engineering manager in the United States
range from $99,000 to $128,000 with an average of $113,000.This salary
could change due the experience, company size and location (11).
Planning which is the most primary function and take the most time
requires the selections of goals and the tools to achieve that goal. To be able to
plan engineering manager have to forecast where forecast is the most
important and usually don't need money. Decision making is the step where Engineering manager have to take action and deal with the uncertainty. By
Organizing Engineering manager tend
to actualize the plan by
using the
money allocating time schedule the operation. Organizing required a lot of
money. By leading they supervise and manage the activity or performance of
the technical personnel. Controlling allows Engineering Manager to have the confirmation that they progressing in accord with the plans and objectives. By
controlling they keep things in check and balance (12). Engineering Manager
has the primary goal
of for implementing the technical and scientific
goals
define by management goal (14). Personally
I believe Engineering managers
are very different from other managers by the fact that they have both
management and engineering background. That allows them understand technical task as well as manage them.
to
easily
lead
To be able to
Engineering Manager need a lot of personality they should have good writing
and communication skill.
10
Tasks:
Engineering Management student could explore a wide range of career
opportunity such
as Project
manager, consultant,
plan
supervisor,
manufacturing engineer, financial analyst, Chief Executive Officer and more. From the university of Wisconsin-Madison official webpage we could notice
have the approximate information regarding the career
manager.
of engineering
Corporate
"25 Va of engineering graduates will become Top
Management, Chief Operating Officer, Managing Director, Vice President of
Operations, Director
of
Engineering, Business Planning Manager, and
Manufacturing Management
".
30Vo
of engineering manager students will
Chain
follow the career path of Plant Manager, Supervisor of Supply
Integration, Manufacturing Systems Engineering Manager, and Project Manager. 12 Vo of the students will choose to become, Quality Assurance
Engineer, Technical Contributor/Practitioner, Assembly and Test Engineer, Automation Engineer, Applications Engineer, Materials Engineer
727o
of the student will also become, Training Executive/Management,
Head of Supply Chain Management, Senior Management Consultant, and
Quality Engineer. I3Va of the student will take Other Executive/Management,
Group Manager, Mechanical Engineering Supervisor, Senior Manager
Information Systems, and Research/Development Project Manager. And finally
87a
of the student will choose Academic Professionals career. (13)
11
Business Activities of Ensineering Management
Finance and Accounting:
The Engineering Management progams all over the world have great
importance of Engineering Finance and cost analysis. The course work mainly
consists of the following Syllabus:
Balance Sheet, Income Statement, The Cash Flow
Refinements
Statement,
of
Accounting Transactions, Closing transactions, Ratio
Analysis, Cooking the Books, Financing a Business, Introduction to Cost Accounting, Apply Overhead
,
Managerial Accounting (CPV Curve and
Contribution Margin), Budgeting and Variance Analysis, The Budget and
Controlling Expenses. ( 15)
By the above course work the Engineering Managers are totally
equipped to handle real
life indusffy concepts such as future markets, pricing
of
forwards and futures, interest exchange rates, option markets, option
markets and option strategies. (16)
Engineering managers should have sound knowledge of finance from
account receivables
to
account payables and double book entries, the
engineering managers need to know the sales and levenues and how each of
these financial tools helps in each sphere of business activities.
t2
The modern day Engineering Managers should know how to:
a.
Accounting fundamentals such as debits, double-entry bookkeeping
and credits.
b.
Analyze basic financial documents such as balance sheets and income
statements.
c. d. e. f. g.
h.
Use financial tools to manage performance of the business.
Determine how assets and liabilities affect area of operation.
Apply financial ratios and risks in decision making.
Justify requests for new capital investments.
Improve budgeting and finances.
Relate their department finance to bigger processes.
Marketing:
Very often in engineering companies, the role of marketing is assumed to
be too naffow a perspective.
A
more comprehensive view
of marketing
identifies three distinct roles of marketing:
a.
b.
Business philosophy use in Marketing.
Strategic Marketing.
c.
Marketing at functional level.
Thus, marketing especially in engineering industry is a combination of
particular skills and practices which are combined together to come up with particular solutions to diverse set of problems, There was a survey done taking
t3
different manufacturing companies and came up with a finding which was
based on the following.
The Miles and Snow strategy
in
which the analyzers,
prospectors,
defenders and reactors are considered as the optimum strategy which is mostly
used in the engineering industry to come up with optimum business plans. In
the engineering both prospectors and analyzers follow the latest trend in
Technology. Marketing in engineering is now done by different media such
as
internet, print media and news media, with internet being the most famous
means
of
media
of
marketing. Engineering companies are now slowly
developing their marketing departments to get the marketing part of product intact which was earlier being handled by various marketing and advertising
companies (18)
Managerial Science:
Managerial Science,
is a branch of applied mathematics which is
combined with economics, business, engineering, and is utilized other sciences
which helps Engineering Managers make optimized decisions. Engineering
Managers apply methods which have come up with research and development
on various fields to come up to a solution which is optimized and gives the
best possible solution for the problem being considered.
It utilizes Program
Evaluation and Review Technology (PERT), Critical Path Method (CPM),
I4
Linear programming and various other mathematical models to come up to an optimal solution. This field is called Operations research
Some of the roles of engineering managers relating to Managerial Science are:
.
Improve the operational systems, processes and their streamlining
going hand in hand with the company policies being intact.
.
Manage and making the systems such as HR and technical support
more effective by coming up with process improvements and also
improving the methods of working of the manpower.
.
Foresee and implement long term planning and striving hard towards operational excellence.
.
Look the financial aspect of the project inclosing finances and cost
factor.
.
Management
management.
of
agency budget coordinating
with the upper
. . . . . .
Developing individual and team budgets.
Calculating and invoicing completed units of service. Managing the payroll.
Developing and organizing the fiscal documents. Regular meetings with upper level management for operations and
development Project management (19).
15
Manr"rtacturing systerns and production:
Manufacturing Process Management (MPM)
is a
collection of
how
technologies and methods used by Engineering Managers
products are to be manufactured.
to define
It is utilized in streamlining the process of manufacturing
after each
cycle and also it is moreover important for proper management of the whole
manufacturing process.
MPM includes:
1.
"Production process planning".
Planning the process of manufacturing Planning of workflow and plant design
2. 3. 4. 5.
Workloads on multiple stations by fragmenting the workload.
Process Tools for simulation like manufacturing lines.
6.
7. 8. 9.
Simulation and production ergonomically
Activity Based Costing
Cost and time estimates of the process.
FMEA (20).
r6
Conclusion
,1
--,_
In conchi'Sion,
engineering management
is the art and science of
planning, organizing,locating resources, directing, and controlling activities.
It plays
a large
role in strategic planning, managing the workforce, forecasting,
and organizing. This also could involve SWOT analysis
for a good short or
long term organizational plan. There are many similarities and differences
between
MBA and MEM degree goals where EM is more concentrated
and
focused on engineering professionals and activities. Also, the tasks of EM
vary from supply chain management, project management, and consulting.
Moreover, communication takes most of the managers' time, which can be used
for analyzing the goals and how to achieve them. As for
business
activities,
EM is involved in the following; accounting and finance,
managerial science, marketing, and manufacturing systems and production.
17
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