Tuesday 14 April 2015

Summary of Engineering Management and Law



Engineering can be defined as the application of mathematical and physical sciences in the solution of problems associated with materials and forces of nature for the benefit of mankind.

A professional engineer is a person who by reason of his specialized knowledge of the mathematical and physical sciences and the principles and methods of engineering analysis and design acquired by professional education and practical experience is qualified to practice engineering.
 

Practice of engineering means any professional service or creative work requiring engineering education.
Qualities of an Engineer include:
1.   Courage
2.   Integrity
3.   A strong purpose and determination
4.   A thirst for knowledge
5.   Imagination
6.   Capacity for hardwork etc

The two primary requisites for the successful career of a professional engineer are: ABILITY and INCLINATION.
The code of ethics for engineer covers four basic relationships which are:
1.   The engineer to the public
2.   The engineer to his/her employer and his/her client
3.   The engineer to fellow professionals
4.   The engineer to his profession

The acceptability ranking of a project solution are based on wide ranges of consideration which are the following:

1.   Technical Feasibility
2.   Economic and Financial Feasibility
3.   Socio - Economic Acceptability
4.   Effects of Acceleration of Environmental and Ecological Degradation
5.   Institutional Practicability and Organizational Strength and Weakness

There are two kinds of projects that presents themselves for analysis which are:

1.   Social Project
2.   Commercial Project

Techniques for carrying out feasibility studies are:


1.   Pay back method: This is the traditional technique of adding up forecast net cash inflow year by year until the magnitude of the original capital investment is reached. Therefore, this is the number of years to pay back. Its demerit is that it ignores the time value of money.
2.   Return on Capital or Average Rate of Return: This is a method where by an average profit is calculated for a number of years of proposed life. This is expressed as percentage of the capital employed. The capital employed is usually expressed as the initial investment and the summation of the capital over the years. Its demerit is that it also ignores the time value of money.
3.   Net Present Value: This is the net present value of the incremental cash flow discounted at the rate of return of the project. When the project repays the capital invested plus the minimum accepted return of the capital invested throughout the project life, then the Net Present Value equals to zero. The minimum acceptable return is equal to the opportunity cost of the capital including a return required for the risk taken by investing the project for that period.
4.   Benefit Cost Ratio: This is also known as profitability index. It is the measure of the present value return per naira invested.
B/C ratio = Present Value of Cash Inflow / Initial Investment (if B/C ratio > 1 accept the project else reject the project).
5.   Internal Rate of Return: This is also known as discounted cash flow yield. It is the break even financing rate for the project. It is also the discount rate which

when used to discount the net incremental cash flow gives a zero net present value for the project. If IRR > Cost of Capital accept the project else reject the project.

The various steps recommended in a full feasibilty study are as follows:

1.   Collection of data and previous studies from other bodies and setting up the machinery for the generation of complimentary data if necessary.
2.   Environmental analysis with references to related activities which are already existing.
3.   The listing of alternative project solutions and checking against already set up conditions.
4.   Analysis of various solutions in order to arrive at the best acceptable option for which detail works are to be done.

Feasibility studies should have the following:
1.   Execution of projects
2.   Expected time for the execution of project design
3.   Evaluation of available resources

It is worthy to note that the cost benefit analysis of the pilot project should be given in qualitative and quantitative terms.

A good report should be in the following format:
1.   Execution Summary
2.   Background Information
3.   Terms of Reference
4.   Main Body of Report

A key element in the success of a project is project definition. Project definition contains the objectives of the project as well as the physical characteristics and features of the projects. The project manager must measure performance, control change, minimize extra costs and control and coordinate suppliers and contractors.

A young engineer responsible for part of a project that attends a board or project meeting would be expected to:

1.   Have up to date information on progress and costs
2.   Be able to explain why there had been any departure from the plant.
3.   Be able to predict performance during the coming month(s).
4.   Be able to make recommendations for remedial measures if necessary.

Note that performance needs to be measured in terms of COST and TIME
It is worthy to note the following parameters and equations:

ACWP = Actual Cost of the Work Performed
BCWP = Budgeted Cost of the Work Performed
BCWS = Budgeted Cost of the Work Scheduled
ECW = Estimated Cost to Completion for Each Work Package
Estimated Cost at Completion (EAC) = ACWP + ECW
Cost Variance = 100(ACWP - BCWP) / BCWP
Cost Performance Index = 100(ACWP) / BCWP
Scheduled Variance = 100(BCWP - BCWS) / BCWS
Scheduled Performance Index = 100(BCWP) / BCWS
Cash Flow Variance = 100(ACWP - BCWS) / BCWS

The cost performance index tells the project manager by how much projects costs are above or below the budget.
Cost Variance provides useful information to the estimators such as if its 2% then the operation is good but if 5% - 10% its not good.
The scheduled performance index tells the project manager by how much the project is behind or ahead of schedule.
The scheduled variance provides useful information to the estimators such as rate of progress allowing them to confirm or modify.
The cash flow variance tells the project manager by how far each have strayed from course.
Work package managers should be required at each date of measurement to give two additional pieces of information for that package such as:
1.   Estimated Cost of Completion
2.   Estimated Time of Completion
The project manager can provide a further measure of progress toward completion of the project from the equation = 100(ACWP) / EAC

Leadership
This is defined as an art of managers working with and through people to achieve their goals.
Leadership is both a narrower and broader concept than management. Narrower in the sense that it is a part of management. Broader in the sense that for individuals who

are not managers also exercise leadership. Leadership has to do with human responsibilities while management has to do with human, technical and administrative

responsibilities. Leadership is a primary management activity.

Personal Characteristics of an Effective Leader are:
1.   Aggressiveness
2.   Self Confidence
3.   Ego Strength
4.   Strong Desire to Achieve
5.   Intelligence
6.   Public Speaking Effectiveness

Two broad types of leadership behaviours are:
1.   Initiating Structure
2.   Consideration

Initiating structure refers to the leader's behaviour in structuring the job of the follower and establishing well defined patterns of organization and communication.
Consideration is the showing of mutual trust, respect and friendship.

Four Styles of Leadership
1.   High Consideration and High Initiating Structure
2.   High Consideration and Low Initiating Structure
3.   Low Consideration and High Initiating Structure
4.   Low Consideration and Low Initiating Structure

According to the managerial grid there are 5 styles identified which are:

1.   1.1  =  Minimum Concern for both Product and People
2.   1.9  =  Minimum Concern for Product and Maximum Concern for People
3.   9.1  =  Maximum Concern for Product and Minimum Concern for People
4.   5.5  =  Moderate Concern for both Product and People
5.   9.9  =  Maximum Concern for both Product and People

Task Behaviours are actions taken by the leader to organize and define the jobs and activities of subordinates.
Relationship Behaviours are actions taken by the leader to recognize people for their good work, open up channels of communication, provide emotional support and involve subordinate in job decision.

Depending on the level of task and relationship behaviour a leader uses 4 separate styles such as:
1.   High Task and High Relationship
2.   High Task and Low Relationship
3.   Low Task and High Relationship
4.   Low Task and Low Relationship

Factors in the Leader's Situation
1.   If the followers are of low maturity, the leader uses high task and low relationship
2.   If the followers are of average maturity, the leader uses high task and high relationship or low task and high relationship
3.   If the followers are above average maturity, the leader uses low task and low relationship

Contract

A contract is a legally enforceable agreement whereby each party undertake to discharge certain legal obligations in return for an acquisition of certain benefit(s).
For a contract to be legally binding on the parties concerned, the law of contract requires that certain conditions must be met.
There must be agreement between the parties regarding the purpose of the contract,rights and obligations which the contract will create. An agreement is reached when

an offer made by a party is unconditionally accepted by the other party. The contribution of something to the bargain to demonstrate good faith of each part is known as CONSIDERATION. Finally there must be intentions by parties to be legally bound by the terms of agreement.

Reasons Why A Contract Can Be Avoided are:
1.   Mistake which can be fundamental or non fundamental
2.   Misrepresentation: A representation is a statement of existence or past fact made before or at the time a contract is made which relates to but is not a term of the contract. If the statement is untrue for whatever reason it constitutes a misrepresentation.
3.   Illegality
4.   Duress and Undue Influence
5.   Legal Incapacity
6.   Privities of Contract

A contract can be discharged through some act of the parties by:

1.   Fulfillment of all their obligations in the contract.
2.   Circumstances rendering the contract impossible to perform either at the onset or after the performance has commenced.
3.   Breach of contract by one party

Breach of the terms of a contract is when one party fails either wholly or in part to discharge an obligation imposed upon him or her by the terms of the contract.

The terms of the contract can be of two categories which are:

1.   Condition: This is a term considered to go into the root of the contract in that a failure by one party to discharge such would effectively force the other party into accepting something radically different from that which he or she contracted for. This is fundamental to the contract.
2.   Warranty: This is a term that is not considered fundamental to the essence of the contract in that it is subsidiary to the main purpose for which the parties entered into the contract. A breach of warranty does not give the injured party the right to terminate the contract. It merely gives him or her the right to claim damages by way of recompense for any disadvantage imposed on him by the breach.

Contract repudition is a situation whereby a party does not want to abide by the contract anymore or puts himself or herself in a position where he or she cannot perform the obligations as stipulated by the contract. The penalty for this is expulsion from the contract.

Remedies for Contract Breach are:
1.   Claim of Damages
2.   Specific Performance
3.   Injunction
4.   Rescission
5.   Rectification

There are two types of construction contracts which are:
1.   Fixed Price Construction contract
2.   Cost Reimbursement Construction Contract

Contract documents are those written documents together with the plans and specifications that constitute the implementation of contracts between owners and contractors for construction work and requires certain legal formalities be observed and executed by both parties.

The contract document consist of the following
1.   Form Tender
2.   Contract Drawings
3.   Specifications
4.   Conditions of Contract
5.   Bill of Quantities
6.   Form of Agreement
7.   Form of Bond

Specification for works of civil engineering construction consists of three sections which are:

1.   General Section
2.   Material Section
3.   Workmanship Section

There are two types of specifications which are:
1.   Recipe Specification
2.   End Result Specification

The various types of engineering activities covering all fields of the profession include:
1.   Research and Development
2.   Construction and Installation
3.   Teaching and Writing
4.   Production and Operation
5.   Planning and Design
6.   Consulting and Sales
7.   Administration and Management

Types of Work are:
1.   Civil Service
2.   Industries
3.   Public Utilities
4.   Sales
5.   Consulting Practices
6.   Contracting

Planning is the process of developing and formulating a course of action for the realization of set goals.
Classification of Plans are:
1.   Short Range Plan
2.   Long Range Plan
3.   Rolling Plan

Elements of planning are decision making and forecasting
Techniques of Forecasting are:
1.   Qualitative Forecasting
2.   Time Series Technique
3.   Computational (Simple Moving Average) Technique

Personnel Management
There are two types of organization which are:
1.   Private Organization
2.   Public Organization
Personnel management is the process of obtaining and maintaining a satisfactory and satisfied workforce.
Functions of a Personnel Manager are:
1.   Planning
2.   Organizing
3.   Directing/Leading
4.   Controlling

Management Information System refers to a computer based system that provides managers with the tools for organizing, evaluating and efficiently running their organization or departments. The goal of MIS is to help in decision making process.

Classification of MIS based on the level of support the information system provides in the person of decision making

1.   Databank MIS
2.   Predictive MIS
3.   Decision Taking MIS
4.   Decision Making MIS

The three levels of management are:
1.   Top Management
2.   Middle Management
3.   Operational Management

Engineers Vs Managers

1.   Engineers have enough information to predict their outcome while managers do not have enough information.
2.   Engineers function with variables that are stable while managers function with variables that are not stable.
3.   For an engineer, the next step to take is unambiguous while for a manager the next step to take is ambiguous.
4.   An engineer always search for the correct answer while a manager searches for an effective answer.

Managers Vs Leaders

1.   Managers are more concerned with tasks and administrative matters while a leader looks at things that haven't been done or seek to change the team or organization's direction to make it more effective.

Functions of a Manager
1.   Planning
2.   Organization
3.   Coordinating
4.   Leading/Commanding
5.   Controlling

A patent is a legal document that describes and establishes claim to an invention and serves as a contract between the inventor and the government. A patent lasts for 20 years.
There are three types of patent which are:
1.   Utility Patent
2.   Design Patent
3.   Plant Patent

Trademark
is a word, name, picture or symbol that distinguishes the product of the company from another.
Copyright protects the works of author, artists, composers and other creative people against copying public display or performance. It generally extends to original work of literary dramatic, musical, artistic or intellectual expression.

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