Engineering Management Semester 1 2009/2010 Tutorial Lecture 1 : Introduction to Engineering Management 09/09/09 1. Explain how’s Bloom’s Taxonomy can be used justify the perception that engineers are paid more than technicians. 2. What manager types and roles are best suited to middle managers? 3. Explain how engineers can be effective in the general management of a technically oriented organization. 4. What is the importance of forecasting in supply chain design, planning and operation? Lecture 2: Developing a Business Model 16/09/09 1.
What information is required in the building of an effective business model? 2. What is the relevance of identifying where on the Supply Chain the new venture lies? 3. What is the purpose of the Business Model, and why do business models typically fail? Lecture 3 : The Business Plan 23/09/09 1. Explain why it is essential for every entrepreneur to develop a business plan, as well as the benefit of developing a plan. Lecture 4 : Strategic Management and Strategic Competitiveness 30/09/09 1. Describe the industrial organization (I/O) model of above-average returns.
What are its main assumptions? What is the key to success according to the I/O model? 2. Describe an organization’s various stakeholders and their different interests. Under what condition can the firm most easily satisfy all stakeholders? If the firm cannot satisfy all stakeholders, which ones must it satisfy in order to survive? 3. Who are the firm’s strategic leaders? How do strategic leaders predict the profit outcomes of 4. different strategic decisions? 4. Several companies use their brand as a competitive advantage.
Ask the class, given their knowledge about the global economy, which brands they believe have the strongest likelihood of remaining a source of advantage in the 21st century? Why? What effects do they believe the Internet’s capabilities will have on this brand, and what should the owner of the brand do in light of them? 5. Lecture 5 : Presentation of Business Concepts and Models 07/10/09 Lecture 6 : Planning and Decision Making 14/10/09 1. Develop your own model of the steps in the planning process. 2. How is planning changing in today’s organizations?
Do you think planning becomes more important or less important in a world where everything is changing fast and crises have become a regular part of organizational life ? Why? Lecture 7 : Activity Based Costing 21/10/09 Jackson Enterprises manufactures two products—A basic gizmo and an advanced model gizmo. The company is using an activity-based costing system. They have identified three activities for allocation of indirect costs. ActivityCost DriverCost-Allocation Rate Materials receiving Number of parts $2. 00 per part Production setupNumber of setups$500. 00 per setup
Quality inspectionInspection time$90 per hour A production run for the basic model is 250 units, for the advanced model, 100 units. Each unit of product consumes the following activities: Number of PartsNumber of SetupsInspection Time Basic Gizmo1050 10 minutes Advanced Gizmo1525 20 minutes Direct costs for the two products are as follows: Direct MaterialsDirect Labor Basic Gizmo$50. 00$ 75. 00 Advanced Gizmo$95. 00$125. 00 1. The amount of overhead allocated to one unit of the basic model would be a. $592. b. $37. c. $162. d. $65. 2. The total cost of an advanced model would be . $162. b. $65. c. $200. d. $265. Lecture 8 : Financial Planning 28/10/09 1. Tanner Co. management desires cost information regarding their Rawhide brand. The Rawhide brand is a(n) a. cost object. b. cost driver. c. cost assignment. d. actual cost.
2. The cost of replacement light bulbs on campus would be a direct cost to a college but would need to be allocated as an indirect cost to a. departments. b. buildings. c. schools. d. individual student instruction. 3. What is the total fixed cost of the shipping department of EZ-Mail Clothing Co. f it has the following information for 2002? Salaries$800,000 75% of employees on guaranteed contracts Packaging$400,000 depending on size of item(s) shipped Postage$500,000 depending on weight of item(s) shipped Rent of warehouse space$250,000 annual lease a. $850,000 b. $900,000 c. $1,050,000 d. $1,950,000 4. Morton Graphics successfully bid on a job printing standard notebook covers during the year using last year’s price of $0. 27 per cover. This amount was calculated from prior year costs, noting that no changes in any costs had occurred from the past year to the current year.
At the end of the year, the company manager was shocked to discover that the company had suffered a loss. “How could this be? ” she exclaimed. “We had no increases in cost and our price was the same as last year. Last year we had a healthy income. ” What could explain the company’s loss in income this current year? a. Their costs were all variable costs and the amount produced and sold increased. b. Their costs were mostly fixed costs and the amount produced this year was less than last year. c. They used a different cost object this year than the previous year. d.
Their costs last year were actual costs but they used budgeted costs to make their bids. 5. Which type of company converts materials into finished products? a. Not-for-profit b. Service c. Merchandising d. Manufacturing 6. The three categories of inventories commonly found in many manufacturing companies are: a. Direct materials, direct labor, and indirect manufacturing costs. b. Purchased goods, period costs, and cost of goods sold. c. Direct materials, work in process, and finished goods. d. LIFO, FIFO, and weighted average. 7. Inventoriable costs are a. nly purchased goods for resale. b. a category of costs used only for manufacturing companies. c. recorded as expenses when incurred and later reclassified as assets. d. recorded as assets when incurred.
8. Period costs are a. all costs in the income statement other than cost of goods sold. b. defined as manufacturing costs incurred this period on the schedule of cost of goods manufactured. c. always recorded as assets when first incurred. d. those costs that benefit future periods. 9. The cost of a product can be measured as any of the following except as cost a. athered from all areas of the value chain. b. identified as period cost. c. designated as manufacturing cost only. d. explicitly defined by contract. 10. The primary focus of cost management is to a. help managers make different decisions. b. calculate product costs. c. aid managers in budgeting. d. distinguish between relevant and irrelevant information. Lecture 9 : Financial Planning 04/11/09 At the beginning of 2005, Mary Abrahams purchased a small business, the Turpen Company, whose income statement and balance sheets are shown below. [pic]
The firm has been profitable, but Abrahams has been disappointed by the lack of cash flows. She had hoped to have about $10,000 a year available for personal living expenses. However, there never seems to be much cash available for purposes other than business needs. Abrahams has asked you to examine the financial statements and explain why, although they show profits, she does not have any discretionary cash for personal needs. She observed, “I thought that I could take the profits and add depreciation to find out how much cash I was generating. However, that doesn’t seem to be the case.
What’s happening? ” 1. Given the information provided by the financial statements, what would you tell Abrahams? (As part of your answer, calculate the firm’s cash flows. ) 2. How would you describe the cash flow pattern for the Turpen Company? Lecture 10 : Lean Manufacturing 11/11/09 Refer to questions at the end of Handout Lecture 11: GUESS LECTURE Lecture 12: Human Resource Management : Leading Technical People 1. Discussion Question 7. 1 in Handout 2. Discussion Question 7. 3 in Handout 3. Discussion Question 7. 6 in Handout 4. Discussion Question 7. 8 in Handout