The presentaion aims to cover management aspects from engineering students perspective.It covers basics of management, functions of management, project management, project evaluation, decision making process and value engineering

1. Management Aspects
Functions of Management, Project Management, Value
Engineering, Project Evaluation, Decision Making.
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2. Management
F.W Taylor defined management with emphasis on engineering
aspects “Management is art of knowing what you want to do and
seeing that they do it in best and cheapest manner”
George R Terry defined management with emphasis on decision
making aspects “Management is a distinct process consisting of
planning, organizing, actuating and controlling; utilizing in both
science and arts, and followed in order to accomplish pre determined
objectives ”
Management can be summarized as a process of planning;
organizing, directing, and controlling of an entity to achieve
organizational goals.
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3. Functions of Management
Most widely accepted are functions of management given by
KOONTZ and O’DONNE
• Planning
• Organizing
• Staffing
• Directing or leading
• Controlling
to achieve organizational goals
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4. Functions of Management
Planning : deals with chalking out future course of action for
achievement of pre-determined objectives. According to KOONTZ,
“Planning is deciding in advance - what to do, when to do & how to
do. It bridges the gap from where we are & where we want to be”.
Thus, planning is a systematic process of thinking ways & means for
accomplishment of pre-determined goals.
Planning is necessary to ensure proper utilization of human &
material resources. it is an intellectual activity and it also helps in
avoiding confusion, uncertainties, risks, wastages etc.
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5. Functions of Management
Organizing is the process of bringing together necessary resources;
physical, financial and human, and developing productive
relationship amongst them for achievement of organizational goals.
According to Henry Fayol, “To organize a business is to provide it
with everything useful or its functioning i.e. raw material, tools,
capital and personnel’s”.
Organizing involves:
Identification of activities.
Classification & grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.
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6. Functions of Management
Staffing: is manning the organization structure and keeping it
manned. The purpose of staffing is to put right man on right job
According to Kootz & O’Donell, “Managerial function of staffing
involves manning the organization structure through proper and
effective selection, appraisal & development of personnel to fill the
roles designed un the structure”.
Staffing involves:
Manpower Planning
Recruitment, Selection & Placement.
Training & Development.
Remuneration.
Performance Appraisal.
Promotions & Transfer.
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7. Functions of Management
Directing : Direction is that inert-personnel aspect of management
which deals directly with influencing, guiding, supervising, motivating
sub-ordinate for the achievement of organizational goals
Direction has following elements:
Supervision : is the act of watching & directing work & workers
Motivation : inspiring, stimulating or encouraging the sub-ordinates with
zeal to work. Monetary, Non-monetary incentives is used
Leadership : a process by which manager guides and influences the work
of subordinates in desired direction
Communication : is the process of passing information, experience,
opinion etc from one person to another.
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8. Functions of Management
Controlling : implies measurement of activities progress against the
standards and correction of variation if any to ensure achievement of
organizational objectives
According to Theo Haimann, “Controlling is the process of checking
whether or not proper progress is being made towards the objectives
and goals and acting if necessary, to correct any deviation”.
Controlling has following steps:
–Establishment of standard performance.
–Measurement of actual performance.
–finding deviation if any
–Corrective action.
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9. Project Management
Project can be defined as “A unique set of interrelated activities
developed to achieve well defined objective, constrained with
resource, time and cost.”
Ex. Launch of new product, Organizing an event, A building project,
Making a tunnel
Project is a temporary endeavour to achieve a particular aim
Project is a temporary endeavour ; it has a definite start and end
Fundamental purpose of any project is either to earn money or
save money
A project is unique a one time undertaking: it will never be done
again in same way, by same set of people, in same environment
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10. Project Management
project management can be defined as “ a set of skills, planning,
organizing and managing a project to its successful completion”
Project management is both an art and a science. The art lies in
interpersonal aspects i.e leading people to achieve project
objectives. The science includes understanding of processes, tools
and techniques
project management is complex and broad as it requires a large
variety of different skills.
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11. Project Management
Steps in project management:
• Identifying the frame of problem or opportunity
• Identify and define the suitable solution
• Identify tasks and resource requirement
• Prepare the control and resource allocation
• Cost estimation and budgeting
• Risk analysis and stakeholder relationship
• Execution, monitoring and control
• Orderly closeout
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12. Project Management
Project lifecycle:
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Initiation Planning Execution Close out
Initiation
•Need
•Deliverables
•Feasibility &
Justification
•Workgroups
Planning
•Formulating strategy
•Interim deliverables
•Defining tasks
•Sequencing of tasks
•Estimation
Execution
•Tasks execution
•Monitoring
•Corrective actions
Closeout
•Verification of project
deliverables
•Deliverables utilization
•Resource
Redeployment

13. Project Evaluation
“Evaluation refers to systematically collection, analysis and reporting
information that can be used for learning, and to improve the
operation of a project/ future decision making.
Project evaluation involves systematic collection of information about
activities, characteristics and outcomes of tasks or action to determine
its worth or merit
Monitoring is about finding the gaps between performance and
expectations while evaluation is about explaining why the gaps exist.
Monitoring is descriptive rather than interpretive while evaluation is
aimed to learning. However, evaluation is almost impossible if there is
no monitoring system in place
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14. Project Evaluation
Evaluation characteristics and benefits
Evaluation is purposeful, it is a means to an end not an end in itself.
Evaluation of activities, helps in future decisions.
Evaluation is based on asking questions and finding answers.
It is an investigative process.
Evaluation is systematic and scientific; It involves collecting
information's, making comparisons, and measuring against criteria.
Evaluation implies outputs must be interpretive and not descriptive
Evaluation brings accountability
Evaluation leads to improvement.
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15. Project Evaluation
Steps of evaluation
Identifying purpose of the evaluation: scope & method
Defining outcome parameters of evaluation
Evaluation approach
Dimensions of evaluation : outcome or implementation evaluation
Role and authority of evaluator
Identifying source and method of collection of data
Identifying tool of analysis and presentation
Performing evaluation and reporting
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16. Value Engineering
According to Larry Miles “Value is the minimum price one must pay
to a reliable product or service”
Value = Worth/ Cost = Utility or Functionality/ Cost
A product or service have good value if the product has appropriate
performance and cost.
•Value increase if cost decreases while maintaining performance
•Value decrease if cost increases while maintaining performance
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17. Value Engineering
Value engineering is the process that seeks best balance between
functionality, reliability, performance and cost of product/ service/
process/ activity.
Function : The basic purpose of every expenditure whether it is
hardware, group of people or process is to perform certain function
Basic function of a product are
 Use function
 Aesthetic function
 Basic function
 Secondary function
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18. Value Engineering
Value engineering is a function oriented systemic approach used to
analysis of product and to improve value. By increasing value
characteristics, value engineering increases customer satisfaction
and is therefore a long term business strategy
Value Engineering Approaches
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Cost
reduction
approach
---------
Function
increase
approach
---------
Compound
approach
---------
Expand
growth
approach
---------Value
Function
Cost
= ----------------

19. Benefits of Value Engineering
Expanding new market by increasing functionality
Volume increase due to increased satisfaction
Reduce costs
Reduce Operation & Maintenance cost
Improve resource efficiency
Improve workforce efficiency
Build teamwork
Simplifies procedures
On-time delivery
High quality
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20. Decision Making
Making effective decisions, recognising decisions gone bad, and
taking decisions on corrective actions is a key to organizational
effectiveness.
Decision making can be defined as “choosing a course of action
among alternatives”
Steps of decision making
Recognizing the need & nature of decision making situation
Identify the alternatives
Choose the alternative most suitable to achieve goals
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21. Decision making process
Decisions are made to
 Maximize ex. sales, valuation,
 Minimize ex. cost, inventory
 Optimize ex. profitability,
Decisions are made to
 Solve Problems (undesirable) ex. closing a loss making unit
 Avail Opportunities (desirable) ex. enter in new market,
Decisions may be
 programmed (frequent in nature and structured) ex. Purchase new supplies
 Non programmed (rare situations and less structured) ex. Mergers, takeovers
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22. Decision making process
Decisions making conditions
Decision making under certainty (outcome of alternatives are fairly certain)
Decision making under risk (all alternatives not known or outcome risky)
Decision making under uncertainty (all alternatives not known or outcome not
clear)
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Uncertainty Certainty
High Moderate low
Certainty of outcome
Degree of Risk in
decision making
Decision Making Conditions

23. Rational Decision making
Steps of rational decision making process
Recognizing and understanding decision making situations
Identifying alternatives & constraints
Evaluating alternatives; feasibility, suitability and affordability
Choosing an alternative
Implementing the decision
Follow-up and evaluation
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