BES 03A – Engineering

Management

This is a property of
PRESIDENT RAMON MAGSAYSAY STATE UNIVERSITY
NOT FOR SALE
BES 03A – Engineering Management
First Edition, 2022

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Learning Module Development Team

Assigned
Title Author
Chapter
Chapter 1: The Field of Engineering Management
Chapter 2: Decision Making
Dionisio M. Martin Jr.
Chapter 3: Planning Technical Activities
Chapter 4: Organizing Technical Activities
Chapter 5: Staffing the Engineering Organization
Chapter 6: Communicating

Evaluators:

(First Name, Middle Initial, Last Name), Position

(First Name, Middle Initial, Last Name), Position
(First Name, Middle Initial, Last Name), Position
Course Overview
Introduction

Engineering Management is a three-unit basic engineering science course, which discusses the
principles of management in the field of engineering on how to prepare students to become
successful engineer manager through decision-making, planning, organizing, staffing,
communicating, leading, and controlling an organization as well as in managing production
and service operations, marketing and finance functions.

This course of study is also intended to discuss the different cases covering the different
engineering principles and functions. The engineering students would learn the process in
dealing some problems in relation to the chosen field.

Course General Objectives

At the end of the semester, 85% of the students have attained 90% level of understanding for
being aware in the computer engineering, locally and globally.

1. Understand the basic concepts of engineering management.

2. Apply the principles of engineering management to analyze case studies.
3. Understand the different management strategies/techniques and model and the issues
involving in management.

Course Details:

 Course Code: BES 03A

 Course Title: Engineering Management
 No. of Units: 3-unit lecture
 Classification: Lecture-based
 Pre-requisite / Co-Requisite: None
 Semester and Academic Year: 2nd Semester, AY 2024-2025
 Schedule: BSCpE 2A – 3:30 PM – 5:00 PM, TTh
BSCpE 2B – 9:00 AM – 10:00 AM, MWF
 Name of Faculty: Dionisio M. Martin Jr.
 Contact Details
Email: dmmartinjr@yahoo.com
Mobile Number: 0939-906-0585
FB Account: Dionisio Martin Jr.
 Consultation
Day: MWF
Time: 1:00PM-2:00PM

Learning Management System

The University LMS will be used for asynchronous learning and assessment. The link and class
code for LMS will be provided at the start of class through the class’ official Facebook Group.

 Edmodo
 Google Classroom
 University LMS

Assessment with Rubrics

Students will be assessed in a regular basis thru quizzes, assignments, individual/group outputs
using synchronous and/or asynchronous modalities or submission of SLM exercises. Rubrics
are also provided for evaluation of individual/group outputs.

Major examinations will be given as scheduled. The scope and coverage of the examination
will be based on the lessons/topics as plotted in the course syllabus.
 0323

Module Overview
Introduction

discusses the principles of management in the field of engineering on how to prepare students
to become successful engineer manager through decision-making, planning, organizing,
staffing, communicating, leading, and controlling an organization as well as in managing in
different engineering functions.

Case studies are also included in every chapter to understand more the lesson have been learned
through analyzing and application in different dilemma experienced in engineering
management.

Topics also included the management function in production and service operations, marketing
and finance functions are also given emphasis in this module.

Table of Contents

Chapter 1: The Field of Engineering Management

Chapter 2: Decision Making
Chapter 3: Planning Technical Activities
Chapter 4: Organizing Technical Activities
Chapter 5: Staffing the Engineering Organization
Chapter 6: Communicating
Engineering Management

Chapter 2

Decision Making
Chapter 2

Decision Making
Introduction

Decision-making is one of the most fundamental yet complex psychological processes

performed regularly by human beings because individuals perform a variety of tasks and
executes several different decisions every day.

According to Jonassen (2012), a decision represents an ill-structured problem where one has
to evaluate multiple options and commit to one of them. There are two different ways to
understand how decisions are made. From a rational perspective, decisions are made to
maximize utility. From a naturalistic perspective, decisions are made with less practicality but
more influence from personal beliefs and prior experiences.

Decision-making is commonly thought of as the cognitive process one undergoes before

choosing a particular course of action. Engineers are trained to approach problems from a
relatively more pragmatic and logical perspective. Engineers value efficiency, utility, and
minimizing cost over aesthetics and flair. Understanding how the engineering mind internalizes
information and reacts accordingly can provide insight on how the human mind makes
decisions and how one can make better decisions.

Specific Objectives

At the end of the lesson, the students should be able to:

- define the purpose of the decision making in engineering management

- enumerate the values and ethics possesses by the managers in making decision
- describe the decision making process in the riskiest decision
- explain the importance of actively involvement in this process of decision making to
become an effective decision maker

Duration

Chapter 2: Decision Making = 6 hours

(5-hours discussion;
1-hour assessment)

_____________________________________________

WHAT IS THE DECISION MAKING?

The Values and Ethics of Managers in Making Decision

1. The foremost goal of managers is to make their organizations effective.
 2. Profit maximization and stockholder’s interest were not the central goals of the
managers studied.
3. Attending to customers was seen as important.
4. Integrity was the characteristics most highly rated by managers at all levels.
5. Pressure to conform to organizational standards was seen as high.
6. Spouses are important in helping their mates grapple with ethical dilemmas.
7. Most managers seek the advice of others in handling ethical dilemmas.

Factors in Making Ethical Decisions

1. The law
2. Government regulations
3. Industry and company ethical codes
4. Social pressure
5. Tension between personal standards and the needs of the organization.

Barriers to Exposing Unethical Behavior

1. Chain of command
2. Group membership
3. Ambiguous priorities

Decision-Making – the process of identifying and choosing alternative courses of action in a

manner appropriate to the demands of the situation.
̶ describes the process by which a course of action is selected as the way to deal
with a specific problem.
̶ according to Nickels “it is the heart of all the management functions.”
Decision Making

Activities Activities
Activities
dealing with Activities dealing with Activities
dealing with
determining dealing with evaluating dealing with
identifying,
the existence generating and choosing implementing
defining, and
and alternative among the chosen
diagnosing
importance of solutions alternative solution
problems
problems solutions

Problem Choice
Finding Making

Problem Solving

Certainty – we know what will happen in the future

Risk – we know what the probability of each possible outcome

Uncertainty – we do not know the probabilities – and maybe not even the possible outcomes
Decision-Making Process
According to David H. Holt, rational decision-making involves the following steps:
1. Diagnose problem.
2. Analyze environment.
3. Articulate problem or opportunity.
4. Develop viable alternatives.
5. Evaluate alternatives.
6. Make a choice.
7. Implement decision.
8. Evaluate and adapt decision results.

Components of the Environment

1. Internal environment – refers to organizational activities within a firm that surrounds
decision-making.
– everything within the organization, including its workers, managers,
working conditions, and culture.

THE ENGINEERING FIRM

INTERNAL ENVIRONMENT
Organizational Aspects EXTERNAL
Like organizational structure, policies, ENVIRONMENT
procedures, rules, ability of
management, etc.
Marketing Aspects
Like product strategy, promotion
strategy, etc.
Personnel Aspects DECISION
Like recruitment practices, incentive
systems, etc.
Production Aspects
Like plant facility layout, inventory
control, equipment and machines, etc. EXTERNAL
Financial Aspects ENVIRONME
Like liquidity, profitability, etc. NT

2. External environment – refers to variables that are outside the organization and not
typically within the short-run control of top management.

The Engineering Firm and Its External Environment

Government
Engineers Labor Unions

ENGINEERING
Clients FIRM Suppliers

Competitors Banks
Public
Approaches in Solving Problems
1. Qualitative evaluation – refers to evaluation of alternatives using intuition and
subjective judgment. And is used when:
- The problem is fairly simple
- The problem is familiar
- The costs involved are not great (low cost)
- Immediate decisions are needed
2. Quantitative evaluation – refers to the evaluation of alternatives using any technique
in a group classified as rational and analytical.

Quantitative Models for Decision Making

1. Inventory models – makes decisions regarding inventory. Types are as follows:
a.) 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 and carrying the items in inventory.
b.) Production order quantity model – a technique applied to production order.
c.) Back order inventory model – used for planned shortages.
d.) Quantity discount model – used to minimize the total cost when quantity
discounts are offered by suppliers.
2. Queuing theory – describes how to determine the number of service units that will
minimize both customers waiting time and cost of service. And is applicable to
companies where waiting lines are a common situation.
3. Network models – are models where large complex tasks are broken into smaller
segments that can be managed independently. The most prominent are:
a.) Program Evaluation Review Technique (PERT) – a technique which enables
engineer managers to schedule, monitor, and control large and complex
projects by employing three times estimates for each activity.
b.) Critical Path Method (CPM) – a technique using only one-time factor per
activity that enables engineer managers to schedule, monitor, and control large
and complex projects.
4. Forecasting – the collection of past and current information to make predictions
about the future.
5. Regression analysis – is a forecasting method that examines the association between
two or more variables. And it may be simple or multiple depending on the number of
independent variables present.
6. Simulation – a model constructed to represent reality, on which conclusions about
real-life problems can be used.
7. Linear programming – used to produce an optimum solution within the bounds
imposed by constraints upon the decision. And is useful when supply and demand
limitations at plants, warehouse, or market areas are constraints upon the system.
8. Sampling theory – samples of populations are statistically determined to be used for a
number of processes, such as quality control and marketing research.
9. Statistical decision theory – rational way to conceptualize, analyze, and solve
problems in situations involving limited or partial information about the decision
 environment. The Bayesian analysis is used to revise and update the initial
assessments of event probabilities generated by the alternative solutions.

_____________________________________________

References/Additional Resources/Readings

Medina, Roberto G. (2016). Engineering Management. Rex Book Store, Inc., Manila,
Philippines.

Stoner, J.A. et.al. (1987). Management, 3rd Edition. Prentice-Hall, Inc.

Wheeler, Thomas F (1990). Computer and Engineering Management, McGraw-Hill.

Activity Sheet
ACTIVITY 2

Name: ______________________Course/Year/Section: ___________ Score: _________

Multiple Choice. Answer the following statement by choosing the correct answer:

1. The first aspects in rational problem solving process.

a. diagnosis b. problem identification
c. problem definition d. none of these

2. This is the important aspect of planning.

a. implementation b. decision making
c. strategic plan d. operational plan

3. Everything within the organization, including its workers, managers, working conditions,
and culture.
a. internal environment b. external environment
c. stakeholder d. none of these

4. The process of negotiating and administering agreements between labor and

management.
a. labor union b. collective bargaining
c. negotiation d. differential rate system

5. Refers to evaluation of alternatives using intuition and subjective judgment.

a. economic evaluation b. qualitative evaluation
c. quantitative evaluation d. decision making theory

6. Serves the same services or products delivered by the organization.

a. supplier b. customer c. labor supply d. competitor

7. Helps the financial stability and needs of an organization.

a. financial institutions b. banks
c. microfinance d. cooperative

8. The collection of past and current information to make predictions about the future.
a. forecasting model b. simulation model
c. economic order model d. none of these

9. Help managers to decide how long a waiting line would be most preferable.
a. normative model b. game theory
c. queuing model d. linear programming

10. Samples of populations are statistically determined to be used for a number of processes,
such as quality control and marketing research.
a. regression analysis b. statistical decision theory
c. quantitative analysis d. sample theory
Case Study. Read the situation carefully to fully understand it. Think through each question
to feel comfortable answering to present a brief argument in response to a question:

CASE STUDY 2: Grandview Morning Press

The Grandview Morning Press is published seven days a week in the city of Grandview, an
area that undergoes a huge increase in population every summer due to its scenery and
excellent climate. Normally the paper consists of a single section with occasional advertising
supplements. However, in the summer, a second, “Summer Living,” section is added, and the
number and frequency of advertising inserts increases drastically in an effort to profit as
much as possible from the summer trade.

The insertion of the advertising supplements and the collating of the two sections is done by
hand. The publishers of the Morning Press feel it would be too costly to purchase the
necessary machinery when most of the time it would be used only during the summer
months. Besides, they feel that hiring a number of vacationing students is a step toward better
community relations. Each summer they hire approximately a dozen college students to work
in the printing press building each night, usually for between 7 and 14 hours. Because some
editions have more advertising “stuffers” than others, the students do not know until they
report for work whether that evening’s work will be long or short. All time over 8 hours is
considered overtime and is paid at time and a half.

The summer workers have a code among themselves that no matter what the work load, they
will decide exactly how long to work each night. For example, if there seems to be an 8-hour
load, the stuffing crews will purposely slowdown in order to take 9 hours and thereby get
paid overtime. On those occasions when the crew wants to finish early and get to the local
disco before the 4 a.m. closing time, an estimated 7- or 8-hour job will be completed in about
6 hours. Newcomers to the crew are made to conform to the group’s production norms
through verbal abuse for noncompliance.

A member of the stuffing crew for the past two summers, Barbara Warren has supported this
code. This summer, however, Warren was asked by the pressroom chief to supervise the
work of the stuffing crew. She welcomed the extra pay an hour she would be making and
viewed with pride the thought of being able to apply her business school theories to her new
“management-level” position.

After the first few nights, she noticed the code was working as it had for untold summers
past. But this year she viewed its effects from the “other side.” She realized that the
slowdown lowered the profits of the paper by raising the labor costs. The drivers were
delayed in making their deliveries. On occasion even the janitors had to sit about idle, waiting
for the stuffing crew to finish their work.

Warren is puzzled as to what her proper course of action should be. Should she lower the
boom and stop the wasteful practice, or should she let it continue? Neither alternative would
be satisfactory top everyone concerned.

Source: This case was written by Peter L. Pfister under the direction of James A. F. Stoner.

Questions:
1. Does Warren have more than the two choices she is considering? If so, what choices?
2. What will be the consequences of her actions, both for herself and for the paper?
3. How would the situation differ if these were full-time employees on a regular job?
4. Why does the Morning Press management permit the code to operate?
5. How would you handle the code?
Assignment
ASSIGNMENT 1

Name: ______________________Course/Year/Section: ___________ Score: _________

Direction: Write your answer clear and concise.

1. Can the engineer manager avoid making management decision? Why or why not?

2. When a problem becomes apparent and the engineer manager chooses to ignore it, is
he making a decision? Explain your answer.

3. Why proper diagnosis of the problem is important?

4. How may alternative solutions can be evaluated?

5. Why is it important for those who will be involved in implementation to understand

and accept the solution to the problem?
Assessment (Rubrics)
Each question will be graded based on these five (5) points rubrics.

LEVEL DESCRIPTION

Well written and very organized.

Excellent grammar mechanics.
5 - Outstanding Clear and concise statements.
Excellent effort and presentation with detail.
Demonstrates a thorough understanding of the topic.

Writes fairly clear.

Good grammar mechanics.
4 - Good
Good presentation and organization.
Sufficient effort and detail.

Minimal effort.
Minimal grammar mechanics.
3 - Fair
Fair presentation.
Few supporting details

Somewhat unclear.
Shows little effort.
2 - Poor Poor grammar mechanics.
Confusing and choppy, incomplete sentences.
No organization of thoughts.

Very poor grammar mechanics.

Very unclear.
1 - Very Poor
Does not address topic.
Limited attempt.
Learner’s Feedback Form

Name of Student: ___________________________________________________

Program : ___________________________________________________
Year Level : ___________ Section: ____________
Faculty : ___________________________________________________
Schedule : ___________________________________________________

Learning Module : Number: _________ Title : ______________________

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□ I completely get it. □ I’m struggling.
□ I’ve almost got it. □ I’m lost.

In what particular portion of this learning packet, you feel that you are struggling or lost?
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If Yes, what did he/she do to help you?

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NOTE: This is an essential part of course module. This must be submitted to the subject
teacher (within the 1st week of the class).