Engineering Management - short answer questions from AMIE exams (Winter 2018)

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Administration vs. Management
  • Management is a systematic way of managing people and things within the organization. The administration is defined as an act of administering the whole organization by a group of people.
  • Management is an activity of business and functional level, whereas Administration is a high-level activity.
  • While management focuses on policy implementation, policy formulation is performed by the administration.
  • Administration takes all the important decisions of the organization while management makes decisions under the boundaries set by the administration.
Policies vs. Procedures
  • Policies set some parameters for decision-making but leave room for flexibility. They show the “why” behind an action.
  • Procedures, on the other hand, explain the “how.” They provide step-by-step instructions for specific routine tasks. They may even include a checklist or process steps to follow.
Effectiveness vs. Efficiency
  • Efficiency is defined as the ability to accomplish something with the least amount of wasted time, money, and effort or competency in performance. 
  • Effectiveness is defined as the degree to which something is successful in producing the desired result.
  • PERT is a visual project management technique where we plan, schedule, organize, coordinate and control uncertain activities. Whereas CPM is a statistical technique where we plan, schedule, organize, coordinate and control well-defined activities.  
  • CPM is a method used to control cost and time. Unlike PERT, which is a technique used for planning and controlling time. 
  • PERT can be said as a development and research project tool, while CPM is a construction project tool. 
  • PERT is aligned towards events while CPM is set according to activities.  
  • PERT uses three-point estimations such as optimistic, most likely, and pessimistic.  Whereas on the other side, there exists only one estimate in CPM.  
  • PERT is used where time is highly valued than cost whereas, for reasonable time estimate projects, the CPM method is used.
  • PERT is used in case of unpredictable activities. On the other hand, CPM is used in the case of predictable activities.  
  • PERT is used for jobs that are non-repetitive in nature. In distinction, CPM is used for jobs that are repetitive in nature. 
Product Layout vs. Process Layout
  • Product Layout refers to arranging machines in the sequence of production while Process Layout refers to setting up of different processes in isolation of each other.
  • Product Layout is suitable in case of large scale production of similar goods while Process Layout is suitable in case of small scale production of a variety of goods.
  • Costs of Material Handling and Maintaining Inventory are higher in Process Layout as compared to Product Layout because of discontinuity of production under Process Layout.
  • Product Layout ensures efficient utilization of even a very small space while Process Layout requires large space or many different places.
  • Product layout is more rigid and expansion isn’t possible while the process layout is very flexible, it can skip or expand processes and can also survive a breakdown of machinery.
Pay-back-period vs. Return-on-Investment
The payback period is the period of time over which the return is received. The return on investment is the amount of money received from your investment. In other words, if you received ₹ 100 over a period of one year, on a ₹ 1,000 investment, the payback period is one year and the rate of return is 10%.

There are four basic layout types: process, product, hybrid, and fixed position.
  • Process layouts.  Layouts that group resources based on similar processes or functions. Process layouts arrange items by type as seen in this grocery store.
  • Product layouts are found in flow shops (repetitive assembly and processes or continuous flow industries). Flow shops produce high-volume, highly standardized products that require highly standardized, repetitive processes.
  • A fixed-position layout is appropriate for a product that is too large or too heavy to move. For example, battleships are not produced on an assembly line.
  • Many situations call for a mixture of the three main layout types. These mixtures are commonly called a combination or hybrid layouts. For example, one firm may utilize a process layout for the majority of its process along with an assembly in one area.
A set-up where individuals from diverse backgrounds, different educational qualifications and varied interests come together to work towards a common goal is called an organization.
  • Line or Scalar Organisation: This type of organisation is also known as a departmental or military type of organisation. In this type of organisation business activities are divided into three groups, namely fi­nance and accounts, production and sales. Each of this department is sub-divided into certain self-contained departments, i.e., sections.
  • Functional Organisation: The difficulties in finding all round qualified man to be foreman in the line organisation are overcome with this type of organisation. He is replaced by various functionalised people. This system is advantageous because each supervisor is specialised in a particular field and he attends to one factor in all the departments.
  • Line and Staff Organisation: In a firm of large size operating on a big scale, managers cannot give careful attention to every part of management. Hence ‘Some Staff is deputed to do other works like investiga­tion, research, recording, planning and advising to managers.
  • Line, Staff and Functional Organisation: In this system, as regards the discipline and output are concerned, the workers are kept under the direct control of the foreman. As regards quality, the inspector will have the proper authority to control the quality and he can directly order the workman as in the functional organisation. In the staff relationship, there may be a research department for the analysis of raw materi­als, semi-finished and finished products to withstand market competition.
Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management and compliance, and supply chain operations. A complete ERP suite also includes enterprise performance management, software that helps plan, budget, predict, and report on an organization’s financial results.

Learning Curve
A learning curve is a correlation between a learner's performance on a task and the number of attempts or time required to complete the task; this can be represented as a direct proportion on a graph.

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