Engineering Planning Roles

Engineering Management
Chapter 2 Planning Lecture 1, 2 &3

Spring 2015
Go Green! Please think before
printing these lecture slides.
Text Book
Title: Engineering Management in the New Millennium

Author: Dr. C. M. Chang
Edition: 2005
Publisher: Pearson Prentice Hall
Khawar Ayub FAST NU Lahore Campus
26-Feb-15
Chapter 2
Planning
2.1 INTRODUCTION
Planning, a major function of engineering management, is the work done

by an engineering manager to predetermine a course of action. Planning
defines who will do what, how, where, when, and with which resources.
The purpose of planning is to enhance the effectiveness and efficiency of the
company by providing focus and direction (Coke 2002; Hamel and
Prahalad 1994). Planning is made necessary by rapid changes in
technology (such as Web-based tools, enterprise resource-planning
software, broadband communications options, and mobile access),
environment (customers, global resources, competition, and market7.
place), and organization (such as mergers, acquisitions, supply-chain
networks, alliances, and outsourcing). In this chapter, we will discuss the
differences between strategic and operational planning, the planning roles
of engineering managers, and the four specific planning activities every
engineering manager needs to master.
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2.1 INTRODUCTION
Planning is the work done to
predetermine a course of action, in
order to provide focus and direction
for enhancing the efficiency and
effectiveness of the company
Planning
Planning is made necessary by rapid change of
(a) Technology ( web-based tools, broadband communications

options, mobile access),
(b) Environment (globalization, competition, marketplace),
and
(c) Organization (mergers & acquisitions, networks, outsourcing

and alliances)
Planning defines who, how, where, when and using which
resources to do the what work
Planning
Strategic Planning
Define future activities which are worth doing
by the unit/company to assure that the
company applies its resources (skilled
manpower, time, money, physical resources equipment, facilities, business relationships)
effectively to achieve its short-term and longterm goals
Strategic Planning Questions

What are the companys vision, mission and value system?
What specific goals (profitability, market share, sales,

technology leadership position, global penetration) to
accomplish by when, with what investment and which
technology?
Which new/improved product streams to offer by when
(considering product life cycle)?
Strategic Planning Questions - Product Life Cycle
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Strategic Planning Questions - Mission and Vision

Mission
Vision - Company Aspiration
Why do we exist?
Market capital
Whom are we serving?
Business standing
What do we do to serve
them?
Ranking in industrial sector

Market Share
Others.
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Strategic Planning Questions - Sample Corporate Values

Innovation
Trust and openness
Honesty
Quality of work Life
Quality
Empowerment
Social
responsibility
Initiative
Continuous
improvement
Stability
Collaboration
Diversity and equal

opportunity
Respects for others
Open
communications
Accountability
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Strategic Planning Questions (contd)
What core technologies (design, production, distribution, service)

to maintain, develop, acquire and/or apply?
Which business networks/partnerships to create (suppliers, comarketing, production, logistics, service)?
With which performance metrics to monitor corporate progress?
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Strategic Planning - Tools for Strategic Planning

Market research
SWOT analysis
Sensitivity
analysis (whatif, scenarios,
Monte Carlo)
External
benchmarking
Technology
forecasting
Product life
cycle analysis
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Strategic Planning - Major difficulties
1. Prediction of the future. Certain future events are more predictable than
others; for example, seasonal variations of weather and election-year cycles.
Other predictions, such as the forecast of discontinuities-technological
innovations, price increases, changes of governmental regulations affecting
marketplace competition, etc.-are virtually impossible to predict accurately.
2. Applicable experience and insight. Strategies cannot be detached from the
subject involved. Planners must have in-depth knowledge and relevant
hands-on experience of the subject at hand in order to set forth useful
strategies.
3. Random process of strategy making. The strategy-making process cannot
be formalized, as it is not a deductive, but a synthesis (creation) process.
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Strategic Planning - Major difficulties
Strategic plans often fail due to one or more of the following seven reasons:
1. Not thinking strategically; for example, by limiting the strategy only to

short-term needs and processes of the company
2. Failure to identify critical success factors for the company
3. Not having both an internal and external focus
4. Lack of long-term commitment from company management
5. Reluctance of senior management to accept responsibility for tough
decisions
6. Not leaving enough flexibility in the plans, causing difficulties in adjusting
to the changing environment
7. Failure to properly communicate the plan and thus not securing support
and management buy-in
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2.5 PLANNING ROLES OF ENGINEERING MANAGERS
Engineering managers at low levels will predominantly devise operational plans to

achieve the short-term goals of the unit or department. As the engineering
managers move up the corporate ladder, they are expected to participate
increasingly in strategic planning, with emphasis placed on technology, product,
and production planning. They may find it useful to follow the planning guidelines
listed next in order to add value to the company.
2.5.1 Assist Their Own Superiors in Planning It is important that engineering
managers spend time and effort to actively assist their direct superiors in planning.
These tasks may include: (a) analyzing hard data (industry, competition, and
marketing), (b) offering alternative interpretations to data available, (c) raising
insightful questions to challenge conventional assumptions, and (d) communicating
the resulting outputs of planning-programs, schedules, and budgets-to help
effectuate buy-in from others.
2.5.2 Ask for Support from Subordinates In order to optimally benefit from the
knowledge, expertise, and insights of staff, engineering managers are encouraged to
engage their staff and other employees in the planning activities.
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2.5.3 Develop Active Plans It is quite self-evident that engineering managers

need to perform a number of planning tasks:
A. TIme management. All managers need to plan and prioritize their
personal daily tasks (such as problem solving, staff meetings, task
specification, progress monitoring, performance evaluation), according to the
value each task may add, so that high-value tasks are completed before
others. This is to maximize the value added by the daily activities (Lane and
Wayser 2000). Also to be included in the daily to-do list are tasks such as
networking, continuing education, and scanning emerging technologies, that
are deemed important for advancing one's own career.
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B. Projects and programs. Engineering managers need to plan projects and

programs assigned to them by upper management. In planning for projects
and programs, engineering managers need to fully understand the
applicable project objectives, the relevant performance metrics used to
measure success, and the significance of the outcome of such projects and
programs to the company. They should carefully select staff members with
the relevant skills, expertise and personality to participate in the project
and seek their inputs regarding tasks, resource requirements, preferred
methodologies, and task duration. They should then integrate all inputs to
draft a project plan and distribute the plan among all participants to
iteratively finalize the relevant details. These details include budgets,
deliverables, and dates of completion. Managers must also secure
authorization from upper management before initiating work related to the
projects and programs.
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C. Corporate know-how. The preservation of corporate know-how is of

critical importance to the company for maintaining and enhancing its
competitiveness in the marketplace. Corporate know-how comes in many
types and forms. Certain documentable knowledge, such as patents,
published memoranda, operational manuals, and trouble-shooting guides, is
easy to retain. Others, such as insights related to procedures or perfected
ways of designing specific products and services of the company, may
require extra efforts to preserve. Managers should plan to systematically
capture, preserve, and widely disseminate such know-how in order to
maximize its use within the company. Certain other cognitive knowledge is
typically retained mentally by the experts. Managers need to find effective
ways to induce such experts to externalize these skills and insights for use by
others in the company.
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C. Corporate know-how (Continued). Problem-solving expertise is

yet another type of corporate know-how worth preserving.
Typically, engineering managers are busy resolving conflicts that
may arise from disagreements in task priorities, personality
conflicts, customer complaints, interpretation of data, and other
conflicts Managers need to solve these problems promptly. They
should be mentally prepared to jump from one task to another
to handle such time-sensitive issues. What should be planned
under these circumstances is the preservation of the learning
experience garnered from each incident so that the company will
become more efficient in solving similar problems in the future.
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D. Proactive tasks. Engineering managers should plan to devote their efforts

to proactively pursue certain other tasks. These tasks include
Utilizing new technologies to simplify and enhance the products and
services of the company
Looking for business partners to form supply chains offering new or

enhanced services to customers (for example, self-service, an informationon-demand system, and a Web-based inquiry center)
Initiating new programs to promote healthy consumer relationships
Developing new products with upgraded attributes (for example, product

customization to serve customers better, cheaper, and faster)
Reengineering and simplifying specific operational processes to increase
efficiency
Outsourcing specific tasks to augment cost effectiveness
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Operational Planning
Define tasks/events to be
accomplished with the
least amount of resources
within the shortest time,
to assure that the
company applies its
resources efficiently to
achieve its short-term
and long-term goals
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Operational Planning Questions
What is the most efficient way of accomplishing a project/task

with known objectives (doing things right) ?
How to link up with three best suppliers in the marketplace for
parts needed?
What are the operational guidelines for performing specific
work?
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Operational Planning - Tools
Project management including action planning

Design, test and analysis procedures
Operational guidelines
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Operational Planning - Sample Performance Metrics
Customer-Related (product defect count, satisfaction score,

product life cycle cost)
Process-Related (time to market, unit product cost, # new
products per year)
Financial (gross margin, profitability, ROE)
Employee-Related (turnover ratio)

Competition-Related (market share, cost of innovation, growth
rate)
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Example #2.1
Example #2.1. Quality may be defined differently by different

people in a company. Explain why that is usually the case. Which
quality definition is the correct one for the company to adopt?
Example #2.1. Different people in a company may have different

interests and perspectives in defining quality. Examples are shown
here:
A. Production-quality is reject rate and deviation from
specifications (view of a production engineer).
B. Value based-quality is defined in terms of price and costs (view
of a marketing person).
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Example #2.1
C. User based-Quality is the degree to which a product satisfies

the customer's needs. Customers do not appreciate less or more
quality than they need (view of a customer).
D. Product based-Quality is related to the number of attributes

offered by a product (view of a product designer).
For the company to succeed in the marketplace, quality is in the
eyes of the beholder. The user-based definition is preferred.
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We shall InshaAllah continue

Chapter 2 Planning Lecture 2
2.6.5 Technology Forecasting

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Activities Related to Planning
Forecasting
To estimate and predict future conditions and events

(e.g., technology, products, marketplace - customers,
competition and economy, global supply chains,
manpower, capital and facilities)
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Purposes of Forecasting
Set bounds for possibilities to help focus on specifics

Form basis for setting objectives
Promote inter-group coordination
Provide basis for resources allocation (manpower,
budget, facilities and business relations - alliances, joint
ventures)
Induce innovation through forecasted needs
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Steps to Forecast
Identify critical success factors for achieving company

goals
Determine forecasting horizon (short, intermediate and
long terms)
Select forecasting techniques (e.g., trend analysis,
statistics, intuition, judgment)
Predict future states and their probability of occurrence
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General Comments on Forecasting
Major economic events tend to change gradually over time

Future events tend to result from current and past occurrence,
in the absence of disruptive changes (e.g., wars, natural
disaster, technology break through)
Important sources of market information: Customers, sales,
production, service people
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Criteria for Future-Oriented Ideas
Consistency with companys objectives

Technical feasibility to implement
Financial viability
Marketplace compatibility
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Technology Forecast
Impact of new technology on business performance is difficult to

forecast
Engineering managers are in the best position to do forecasting
Teams of people with divergent experience, exposure and broad

perspectives may have a better chance to accurately forecast the
future technology impact
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Examples of Challenging Questions
Will the next waves of new products be the smart appliances?

What will be the impact, if many products are made smart, as
the processors are getting more powerful and intelligent devices
getting smaller and more mobile (e.g., RFID)
What might be the impact of nano-technology?
How about the info-imaging technologies?
Any value of the molecular computing companies like Hewlett
Packard and IBM are working on?
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Examples of Challenging Questions (contd)
How to gauge the impact of pervasive computing on the

consumer markets, as IBM is developing rings, earrings,
bracelets, eyeglasses and other miniature devices to provide
access to Internet?
How quickly will PCs lose market values, once alternative devices
are becoming available to access internet and home appliance,
purchase goods/ services, and activate entertainment programs
remotely?
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Technology Forecasting - Some Guidelines for Engineers

Read broadly and think deeply
Remain curious about new technological inventions and

innovative applications
Ask critical questions and exchange ideas with
networked professionals
Focus on potential applications of new technologies

which could add value to future customers
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Action Planning
Benefits: (1) Focus on critical
areas in need of
management attention, (2)
Select specific results to be
accomplished,
(3) Set
metrics to facilitate
measurement and control,
(4) Clarify accountability
and permit delegation,
(5) Encourage teamwork,
(6) Ensure the continuation
of overall performance
evaluation
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Action Planning
Planning Process
(1) Analyze Critical needs,
(2) Set Objectives (what results to
be accomplished),
(3) Define metrics to measure
performance,
(4) Specify actions steps (sequence
and priority of tasks to perform),
(5) Determine dates of task
initiation and completion,
(6) Develop a budget (resources to
allocate)
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(A) Analyze Critical Needs
Needs are to be defined with respect to position charter,

duties, management expectations, and company goals:
(1) development needs,
(2) maintenance needs,
(3) deficiency needs, and
(4) strategic needs
Short-term and long-term needs
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(B) Set Objectives
Objectives are set to satisfy the critical needs: Write results

statement (e.g., what desirable future state to be in and by
when)
Objectives need to be specific and measurable, in order to be

useful
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(C) Define Metrics
Metrics are what takes to measure the attainment of the

objectives (be reasonable and pertinent) - Write standards
statement
Metrics need to be quantitative (using numbers, percentages,

cost figures, resources parameters) - external and internal
Metrics need to be defined with doers participation and consent
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(D) Specify Action Steps
List major action steps, identify work contents, define sequential

relationship between steps, determine resources requirements for
each, specify expected results, and assign people to each action
step (getting doers to agree)
Evaluate risk for completing the steps planned, define
contingencies to manage risks
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(E) Determine Schedule
Determine dates of initiation and completion of each

task
Allow scheduling flexibility (slag) to account for
contingency, emergency and other difficult-to-predict
deviations from plan
Focus on management of critical path tasks to avoid any

overall delays
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(F) Develop Budget
Determine the basic resources units (man-hours, man-weeks) to

accomplish each steps
Define other resources (computation, travel expenses, materials,
experiments, equipment usage, pilot tests, contract services,
support staff, management review, etc.)
Revise action steps, if projected cost exceeds value expected
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Remarks on Action Planning

Involve doers in action planning
Apply computer-based tools (e.g., Microsoft Project, Timeline) to

generate PERT or GANTT charts
Include risks and contingency steps

Iterate planning process until all parties (top management,
doers, team leader, service providers, etc.) involved are satisfied
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Question # 2.1
Question # 2.1 On the eve of leaving his alma mater, Joe Engineer
remembers the encouraging words of the commencement speaker,
Graduation is the happy beginning of an exciting life ahead. He is of course
excited about his new Master of Engineering degree, which he received with
honor. But he is also a bit confused about what to do now to make his new
life exciting and happy. Apparently, what he needs is a road map into the
future. How can you help him?
Answer # 2.1
This is where planning makes its immense contributions.
(1) Conceive a list of mutually exclusive and collectively exhaustive
objectives, which on attainment will lead Joe Engineer to an exciting and
happy life.
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Question # 2.1
Examples:
(a) Money/wealth,
(b) Respect and recognition by peers,
(c) Professional/technical achievements,
(d) Social support,

(e) Health
(2) Define tasks to be completed in the next 5 years aiming at accomplishing parts of
these objectives.
(a) Learn to save and invest (set up an internet trade account and use automatic deposit
to start save money and practice prudent investment.,
(b) Look for a job in a prestigious firm, where learned skills can be best utilized for both
the company and self. Demonstrate own technical excellence and establish oneself as a
capable, reliable and fast-learning worker
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Question # 2.1
(c) Apply self to learn, produce, innovate and excel.
(d) Get a mate who has earning power and start family. Stay in contact with college
friends and develop new ones constantly
(e) Exercise and eat healthy foods.
(3) Define tasks to be completed in the next 5 to 10 years aiming at accomplishing parts
of these objectives.
(a) Continue to save and invest. Maximize savings in 401(k) and IRA accounts. Set up
savings accounts for kids college education, and invest more in stocks. Try options
trading.
(b) Practice Engineering Management principles and get promoted into mid management
positions of a large company. Become active in professional societies. Seek opportunities
to publish technical papers and/or develop patents. Write a long term career plan so
that the needed preparations are timely initiated.
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Question # 2.1
(c) Practice leadership skills to excel at work. Get development training to acquire
new skills, Seek opportunities to broaden own experience base. Ask for a transfer
to another department, if to do so will broaden own exposure to other important
managerial functions.
(d) Continue to network with old friends and make new friends, both
professionally and socially.
(e) Exercise regularly and eat healthy foods.
(f) Spend quality time with family and manage relationships.
(4) Define tasks to be completed in the next 10 to 15 years aiming at

accomplishing parts of these objectives
(a) Manage own savings and investment programs actively.
(b) Seek promotion to Director's level. Continue to broaden own experience base
to ready oneself for bigger and better jobs, either inside or outside the company.
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Question # 2.1
(c) Present papers at professional conferences, get more patents, and

become active in societies and industrial committees. Achieve recognition by
peers in industry .
(d) Continue manage the network of friends and acquaintances. Develop
an active network of business contacts and relations.
(e) Continue exercise and eat healthy foods.
(f) Manage family relationships.
(5) Define tasks to be completed in the next 15 to 20 years aiming at

accomplishing parts of these objectives.
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Example # 2.3
Example # 2.2 Joe Engineer took a course while going to graduate school at SUNY-
Buffalo. There, he learned the importance of planning. He knows that luck plays a big
role in ones life. But he is convinced that a proper planning will help him to have an
orderly progression in his career. He thinks that it would be cool to become an CEO at
the age of 60 and retiring at 65 with a net worth of $10 MM. He wants some
guidance on career planning. How can you help him?
Answer # 2.2 1.SET OBJECTIVES AND SPECIFY SU-GOALS
Before starting the planning process, we need to qualify the stated career objective a
bit: Becoming an CEO of a publicly held multinational company at age of 60. Let us
make one more assumption here, namely that in order for Joe Engineer to be
entrusted with a certain management position in a publicly held major company, it is
generally required that he has successfully demonstrated certain sets of
business/management capabilities beforehand. Obviously, this assumption may not be
valid for privately held small and medium size companies.
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Example # 2.3
To achieve the big objective, Joe Engineer needs to specify a few sub-goals
leading to it. The milestones listed below are typical:
A. Corporate President at 55
B. Division President at 50
C. Vice President at 45
D. Director at 40
E. Manager at 35
F. Supervisor at 30
G. Group Leader at 25
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Example # 2.3
The CEO of a major company must be familiar with many functional areas, such as (1)
Strategic management, (2) Business management, (3) Operational management, (4)
Project/program management, (5) Engineering management, (6)
Production/manufacturing, (7) Marketing management, (8) Financial control, and (9)
Globalization. The future CEO must be able to demonstrate sufficiency in various skills,
such as
(a) Public speaking and writing
(b) Business analysis and planning
(c) Public relations

(d) Problem solving and conflict resolution
(e) Interpersonal skills
(f) Negotiations
(g) Business Relations development
(h) Others.
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Example # 2.3
2. DEVELOP ACTION PLANS. A plan such as the one shown below should be considered by
Joe Engineer.
A. Preparation (by 1/02)
Collect pertinent career development references and gain perspectives.
Talk with experienced engineers to obtain insights related to costs and benefits of the
targeted objectives. Power, prestige, money versus travel, 50 to 60 hour week, job
pressure, office politics, balance between work and home, and related factors.
Understand own career objectives and the requirements to succeed. What are the
"success factors" involved?
Understand own strengths and weaknesses.
Understand own personality and value systems.
Take pertinent tests, if any.

Understand own requirements for happiness.
Confirm desirable objectives.
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Example # 2.3
B. Group Leader
Get a M.E. degree to demonstrate technical competence (by a date, say 1/02)
Exposed to engineering management concepts and practice (e.g. take EAS 521 and
522)
Practice good interpersonal skills.
Practice engineering management principles by doing volunteer work.
Do networking inside and outside the company (join technical societies, attend technical
conferences, write technical papers, etc.).
Know some professional people well.
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Example # 2.3
C. Supervisor
Seek training on supervision.

Practice teamwork with dedication.
Take advanced technical courses, if needed, to help establish self as a technical leader.
Broaden self into marketing, production, and sales through business interactions
and/or sales
Function as a gatekeeper for technology.
Demonstrate innovation.
Continue networking and become known to many others inside and outside the
company.
Attain recognizable technical achievements.
Demonstrated management potential.
Become known as a good problem solver.
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Example # 2.3
D. Manager
Shown sophistication in strategic planning operation, and all other

engineering management skills
Global and domestic marketing.
Achieved organization-wide recognition.

Demonstrated capability in interaction with sales, production, service
and customers.
Formed networks with important people a various levels
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Example # 2.3
E. Director
Be widely known in own industry.

Active in industrial trade/technical groups.
Demonstrated leadership in strategic planning affecting company.
Recognized for operation efficiency.
Made major contributions to direct company's businesses
Get Harvard Executive Training.

Mastered the technology-marketing interface.
Capable of representing company to the press.
Have real friends in high places.

F. Vice President
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Issuing Policies
Policies are directives,
promulgated to address repetitive
questions and issues of general
concern
Examples: Hiring/firing guidelines,

EEO, performance appraisal, drug
policy, savings program, medical
insurance, retirement benefits,
educational refunds, travel
expenses and trip report, technical
publications, plant safety, progress
reports, staff meeting, etc.
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Purposes of Policies
Save management time and efforts, as they address the

common and repetitive questions of interest to a large number
of employees (policy manuals, web posting)
Capture the distilled experience and past learning of the

company
Facilitate delegation (administered by the secretaries, or human
resources group)
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Characteristics of Policies
Apply uniformly to all employees

Being relatively permanent, when in force
Foster corporate objectives (assure equal treatment of all,
encourage skills building via education and seminar attendance,
reducing conflicts due to interpretation difference, encourage
teamwork, free managers to focus on important work, etc.)
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Establishing Procedures
Procedures are standardized
(tried-and-true) method of
performing work
Examples: Product design, project
management, equipment
operation, facility maintenance,
installation, procurement, ISO
9002 certification,
manufacturing, waste disposal,
customer service, customer order
processing, and others
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Importance of Procedures
Preserve the best way to perform repetitive work (efficiency-focused)
Provide the basis for method improvements

Insure standardized action (quality control, resource conserving, work
reproducibility)
Simplify training
Save corporate memory (know-how, knowledge, heuristics, proven
practices)
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Developing Procedures
(1) Concentrate on critical
needs
(2) Chart the work
(3) Review work

(4) Propose procedure
(5) Improve procedures

(6) Formulate/ communicate
procedures
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Developing Procedures
(1) Concentrate on critical repetitive work of time-consuming

and high demand nature
(2) Chart the work (inputs, workflow, outputs, skills, resources)
(3) Study work characteristics (Why is it necessary? What results

to get? When is best time, where is best place, and who is best
person to develop it?)
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Developing Procedures (contd)
(4) Propose procedures (keeping to a minimum to avoid being

restrictive, and enable its consistent administration)
(5) Define regular improvements to procedures
(6) Formulate procedures and communicate widely to assure

understanding and acceptance by all involved
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Ingredients of Good Planning
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Key Ingredients
(1) Assumptions - Get information, forecast future states, and

study/select alternatives, check validity frequently
(2) People - Consider involving doers and introduce changes
gradually to avoid resistance.
(3) Benefit versus Cost - Efforts to implement plan must be
commensurate with value expected of the plan (effectiveness
doctrine)
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Key Ingredients (contd)
(4) Small but Sure Steps - Design a series of small steps to

reach the expected results, allow timely control and mid-course
corrections
(5) Change in Future - Anticipate changes in future conditions

and include contingency steps with fallback strategies
(6) Commitment - Secure commitment of sufficient resources to
achieve plan objectives
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Question # 2.5
Question # 2.5 There are always risks associated with the experimentation of a new
manufacturing process or with the entry into a new global market, the risks of failure. How
should one decide to proceed or not to proceed with a risky venture? What is the proper
level of risks to take?
Answer # 2.5 All new ventures have inherent risks. In deciding to take or not to take the
risks of going forward with the venture, several questions need to be answered first:
1. What is the maximum pay-out (e.g., value) of the venture, should it luckily turn out to be
successful?
2. Why is the venture deemed to be risky? How likely are all risk factors expected to play
out in reality? What contingency steps are available to minimize the impact of these risky
factors? Answers to these questions will lead to an assessment of the probability of success
for the venture.
3. What is the adverse impact on company, should the venture fail (e.g., time delay,
reputation, company bankruptcy, loss of market share, etc.)?
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Question # 2.5
A typical set of guidelines on avoiding taking unwarranted risks may include the following:
(a) The cost of going forward with the venture must be much smaller than the expected
value of the risky venture (the probability of success multiplied with the maximum payout of venture)
(b) The adverse impact on company must be smaller than the maximum pay-out of the
venture.
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Question # 2.6
Question # 2.6
The Marketing Director needs to submit a strategic plan for entering a new market. He knows he
needs long periods of uninterrupted time. He considers two options: (1) Staying at home to develop
the plan, (2) Delegating some parts of the plan to subordinates. What are the factors the Director
needs to consider when he picks the best way to create this plan?
Answer # 2.6
1. Collect critical market information (market research, competitive information, customer feedback,
technology development, business alliance, forecasting), needing staff support
2. Analyze available data (checking data accuracy, interpretation, what-if analysis, financial
projections, risk analysis, search on external databases, SWOT (strengths, weaknesses, opportunities
and threats) analysis, etc.), needing staff support
3. Apply judgment to data and formulate strategies, to be done by the Director himself.
4. Get staff feedback, in order to benefit from different viewpoints, needing staff participation.
5. Create the plan (graphics, project plan preparation proof reading, printing, binding), needing staff
support.
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Question # 2.2
Question # 2.2 The company has always been focused on the high-quality high-price end of the
market. Now, market intelligence indicates that some competitors are planning to enter the
low-price low-quality end of the market. What should the company do?
Answer # 2.2
Obviously, the company must find ways to protect its current market share in the high-price
high-quality niche. Without protection, this niche could become slowly eroded by the
anticipated introduction of a new low-price low quality product by the competition. Time is
of essence. The company must act quickly. Thus, the strategic plan to protect company's
position should include:
1. Explore the option of importing a low-price and low-quality product to the market and
make inquiry to understand cost, performance, delivery and logistics.
2. Follow the competition closely to understand the features of their new products and
evaluate the market reaction to them.
3. If the market shows signs to accept the competition's new products, then the company
should introduce the imported products to compete directly at a discounted price. The
purpose is to reach and understand customers in this new low-price low-quality niche so that
they may be served better in the future.
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Question # 2.2
One obvious alternative is for the company to drive out the competition using the imports,
based on a "second brand" strategy.
4. If company registers a decline in sales realized in the high-price and high-quality
market niche, then the company should develop a new medium-price and mediumquality products aiming at recovering some of its lost customers.
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Question # 2.3
Question # 2.3 Mission and value statements are indicative of the directions to which a company is
headed. What are typically included in the statements of Mission and Value of some well-known
companies in the U.S.? Please advise.
Answer # 2.3
1. INTEL CORPORATOIN
Our mission - Do a great job for our customers, employees and stockholders by being the preeminent
building block supplier to the computing industry.
Discipline - The complexity of our work and our tough business environment demand a high degree
of discipline and cooperation. We strive to
Properly plan, fund and staff projects.
Pay attention to detail.
Clearly communicate intentions and expectations.
Make and meet commitments.
Conduct business with uncompromising integrity and professionalism.
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Question # 2.3
Quality - Our business requires continuous improvement of our performance to our Mission and
Values
Set challenging and competitive goals.
Do the right things right.
Continuously learn, develop, and improve.
Take pride in our work

Result Orientation - We are results oriented. We strive to:
Set challenging goals.
Execute flawlessly.
Focus on outputs.
Assume responsibility.
Confront and solve problems.
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Question # 2.3
Customer Orientation - Partnerships with our customers and suppliers are essential to our mutual
success. We strive to:
Listen to our customers.
Communicate mutual intentions and expectations.
Deliver innovative and competitive products/services.
Make it easy to work with us.

Serve our customers through partnerships with our suppliers.
Risk Taking - to maintain an innovative environment, we strive to:
Embrace change.
Challenge the status quo.
Listen to all ideas and viewpoints.
Encourage and reward informed risk taking.

Learn from our successes and mistakes.
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Question # 2.3
Great Pace to Work - A productive and challenging work environment is the key to our success.
We strive to:
Respect and trust each other.
Be open and direct.
Work as a team.
Recognize and reward accomplishments.

Be an asset to our community.
Have fun.
2. SATURN CORPORATION
The Mission of Saturn
To market vehicles developed and manufactured in the United States that are world leaders in
quality, cost, and customer satisfaction through the integration of people, technology, and business
systems.
To transfer knowledge, technology and experience throughout General Motors.
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Question # 2.3
The Philosophy of Saturn
We the Saturn Team, in concert with the UAW and General Motors, believe that meeting the needs of
Saturn customers, members, suppliers, dealers, and neighbors is fundamental to fulfilling our mission.
To meet our customers' needs, our products and services must be world leaders in value and
satisfaction.
To meet our members' needs, we will create a sense of belonging in an environment of mutual
trust, respect and dignity. We believe that all people want to be involved in decisions that affect
them. We will develop the tools, training, and education that each member needs. Creative,
motivational, responsible team members who understand that change is critical to successes are
Saturn's most important asset.
To meet our suppliers' and dealers' needs, we will create real partnerships with these organizations.
We will strive for openness, fairness, trust, and respect with them, and we will work with them to
help them feel ownership of Saturn's mission and philosophy.
To meet our community neighbors' needs, we will be a good citizen and protect the environment,
and we will seek to cooperate with government at all levels.
By continuously operating according to this philosophy, we will fulfill our mission.
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Question # 2.3
The Core Value of Saturn
As a final complement of Saturn's mission and philosophy statements, the

founding team enunciated five core values: commitment to customer
enthusiasm, commitment to excel, teamwork, trust and respect for the
individual, and continuous improvement.
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Question # 2.4
Question # 2.4 What are included in the operational guidelines some industrial companies have
developed? Please advise.
Answer # 2.4 A typical set of operational guidelines may emphasize the following:
Employees are the most important asset to our organization (respect and listen to them)
Quality of our product/service must never be compromised (total quality concept, as measured by
customers)
The system must continuously improve all aspects of its operation (seeking a stream of
incremental improvement, while not neglecting innovation for major step-change in performance)
Each action that is taken should add value to the final product or service (eliminating wasteful
and unnecessary steps)
Timely response of the system to changing external conditions is paramount to success (time to
market is a key competitive factor in today's marketplace)
Integrity in all actions by all employees is paramount (all shareholders must have confidence in the
enterprise)
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Summary
Planning is an important engineering management function, involving (1)

forecasting, (2) action planning (3) issuing policies and (4) establishing
procedures
Forecasting and strategic planning are difficult, with performance being
unpredictable
Others planning activities are administrative/ operational in nature and
should appear relatively easy to everyone
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Assignment # 2 (Due next Thursday 5 Mar)

Question # 2.1 to 2.5 First study the proposed answer to Question # 2.1 to 2.5 given in the lecture
slides to learn how to answer Engineering Management questions. Now write answers to Question #
2.1 to 2.8 yourself and submit as an assignment.
2.7 In planning for a project, the Critical Path Method (CPM) is a tool used widely in industry.
Elucidate the basic concepts and techniques involved, illustrate by using an example, and review its
advantages and disadvantages.
2.8 XYZ Company has been a one-product company focused on developing and marketing a of
innovative ERP software specialized for law firms and operated in computers running on a proprietary
operating system software developed by the company. Customers purchase both the hardware and
software as a bundled package from XYZ company. The company also provides around-the-clock
services to ensure that the combined hardware and software system performs reliably, as lawyers are
known to be typically disinterested in trouble-shooting computer systems. This product-bundling
strategy works out well for the company, and the sales revenue of XYZ increases dramatically during
its first three years in business. (Continued on next slide)
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Assignment # 2 (Due next Thursday 5 Mar)

However, market intelligence shows that new ERP software products are now being introduced by
competitors. These new ERP software products are quite capable of performing all of the data
processing functions typically required by law firms. Furthermore, these new ERP software products
can run on any computers using their existing operating systems, thus eliminating the need for
customers to purchase dedicated computers. The president of XYZ Company recognizes the potential
threat imposed by these new ERP software products. He wants to know the best counterstrategy he
should plan and implement. Design and explain this counterstrategy.
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We shall InshaAllah continue

Chapter 3 Organizing

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Engineering Planning Roles

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Engineering Management

Chapter 2 Planning Lecture 1, 2 &3

Title: Engineering Management in the New Millennium

Khawar Ayub FAST NU Lahore Campus

Planning, a major function of engineering management, is the work done

Khawar Ayub FAST NU Lahore Campus

(a) Technology ( web-based tools, broadband communications

(c) Organization (mergers & acquisitions, networks, outsourcing

Strategic Planning Questions

What specific goals (profitability, market share, sales,

Strategic Planning Questions - Product Life Cycle

Khawar Ayub FAST NU Lahore Campus

Strategic Planning Questions - Mission and Vision

Vision - Company Aspiration

Whom are we serving?

Ranking in industrial sector

Khawar Ayub FAST NU Lahore Campus

Strategic Planning Questions - Sample Corporate Values

Trust and openness

Quality of work Life

Diversity and equal

Khawar Ayub FAST NU Lahore Campus

Strategic Planning Questions (contd)

What core technologies (design, production, distribution, service)

Khawar Ayub FAST NU Lahore Campus

Strategic Planning - Tools for Strategic Planning

Khawar Ayub FAST NU Lahore Campus

Strategic Planning - Major difficulties

Khawar Ayub FAST NU Lahore Campus

Strategic Planning - Major difficulties

1. Not thinking strategically; for example, by limiting the strategy only to

Khawar Ayub FAST NU Lahore Campus

2.5 PLANNING ROLES OF ENGINEERING MANAGERS

Engineering managers at low levels will predominantly devise operational plans to

Khawar Ayub FAST NU Lahore Campus

2.5 PLANNING ROLES OF ENGINEERING MANAGERS

2.5.3 Develop Active Plans It is quite self-evident that engineering managers

Khawar Ayub FAST NU Lahore Campus

2.5 PLANNING ROLES OF ENGINEERING MANAGERS

B. Projects and programs. Engineering managers need to plan projects and

Khawar Ayub FAST NU Lahore Campus

2.5 PLANNING ROLES OF ENGINEERING MANAGERS

C. Corporate know-how. The preservation of corporate know-how is of

Khawar Ayub FAST NU Lahore Campus

2.5 PLANNING ROLES OF ENGINEERING MANAGERS

C. Corporate know-how (Continued). Problem-solving expertise is

Khawar Ayub FAST NU Lahore Campus

2.5 PLANNING ROLES OF ENGINEERING MANAGERS

D. Proactive tasks. Engineering managers should plan to devote their efforts

Looking for business partners to form supply chains offering new or

Developing new products with upgraded attributes (for example, product

Khawar Ayub FAST NU Lahore Campus

Khawar Ayub FAST NU Lahore Campus

Operational Planning Questions

What is the most efficient way of accomplishing a project/task

Khawar Ayub FAST NU Lahore Campus

Operational Planning - Tools

Project management including action planning

Khawar Ayub FAST NU Lahore Campus

Operational Planning - Sample Performance Metrics

Customer-Related (product defect count, satisfaction score,

Employee-Related (turnover ratio)