What is Engineering Management? And why engineering companies need to manage it.
- Yde Andringa
- Jan 27
- 8 min read
What is Engineering Management?
Engineering Management (EM) as a formal academic qualification emerged in the mid-1940’s, but courses in the business and management aspects of engineering had been taught since the early 1900’s (Kotnour & Farr, 2005). For instance, the Stevens Institute of Technology established a Department of Business Engineering in 1902 with the goal of training students to become effective managers (Kotnour & Farr, 2005). Similarly, the Massachusetts Institute of Technology offered a degree in industrial management around 1913 (Kotnour & Farr, 2005). Following the industrial expansion after World War II, several EM programs, like those at the University of Washington (founded in 1947) and Michigan Technological University (founded in 1949), were established (Kotnour & Farr, 2005). The field experienced significant growth in the 1960’s and 1970’s, whereafter the first department officially named "Engineering Management" was founded at the University of Missouri-Rolla (UMR) in 1967, which also granted the inaugural PhD in EM in 1984 (Kotnour & Farr, 2005).
EM focuses on the specific challenges and opportunities associated with the engineering profession and job-to-be-done (JTBD), which achieves the optimal integration of engineering and management knowledge (Badawy, 1998; Elia et al., 2021). EM ensures that managers are equipped to deal with technological developments, as well as to effectively manage the design, development, and implementation of engineering projects (Badawy, 1998; Elia et al., 2021).
EM serves as a crucial link between the traditional disciplines of engineering and management (Kotnour & Farr, 2005). This is evident in how EM has evolved from both engineering and management disciplines. Engineering Management can be seen as a bridge that connects these two realms (Kotnour & Farr, 2005). The below figure illustrates how EM bridges the gap between engineering and business management (MBA), and EM discipline groups:
The below five discipline groups and their contributions describe various perspectives within the EM field:
(1) Traditional Engineering Discipline: This group focuses on the core engineering disciplines, which are centred on the engineering and design processes, specific to particular domains (e.g., civil, traditional industrial, mechanical, electrical) (Kotnour & Farr, 2005).
(2) Management Within an Engineering Discipline: This pertains to the EM discipline that concentrates on the management process within a specific engineering discipline (e.g., managing the civil engineering process, managing the industrial engineering process, etc.) (Kotnour & Farr, 2005). It focuses on the unique challenges and considerations associated with that discipline.
(3) Management Across Engineering Disciplines (EM): This facet of EM centres on the fundamental EM processes that apply across a wide range of engineering disciplines (Kotnour & Farr, 2005). It provides a more generalised framework for managing engineering projects.
(4) Management of Technology: This is a business or management discipline that focuses on overseeing the creation, development, and utilisation of technology (Kotnour & Farr, 2005). This perspective is concerned with the business and management aspects of handling technology, encompassing its creation, development, and application.
(5) General Management (MBA): This discipline is concerned with the management of organisations as a whole (Kotnour & Farr, 2005).
The above descriptions highlight the diversity of disciplines that contribute to defining the EM field.
Additionally, the overlap between engineering and EM, exemplified by industrial engineering, further demonstrates how these disciplines intersect and complement each other (Kotnour & Farr, 2005).
EM practices involve managing career development, coordinating and working with other people, engineering and project processes and operations management, financial processes, procurement, human resource development, business development, technical processes such as creating new concepts, problem solving, technical tests, inspections, measurements, reviews, and hands-on work technical work (Trevelyan, 2008). Engineering is a complex social and technical system, often only partly understood by its own participants (Trevelyan, 2008).
According to Omurtag (2015), EM is a specialised field of study that focuses on the application of engineering principles and practices to the management of complex engineering projects, processes, and organisations (Omurtag, 2015).
EM involves the integration of technical and business management skills to effectively manage resources, budgets, schedules, and risks associated with engineering projects (Omurtag, 2015). It also involves the coordination of multidisciplinary teams, communication with stakeholders, and the development of strategies to meet project objectives and organisational goals (Omurtag, 2015).
Omurtag (2015) argues that EM is important because it plays a critical role in the success of engineering projects and organisations (Omurtag, 2015). Without effective EM, engineering projects can face delays, cost overruns, and technical difficulties that can impact the organization’s overall success.
EM helps bridge the gap between the technical and business aspects of engineering. By combining technical expertise with business acumen, EM can ensure that engineering projects are not only technically feasible but also financially viable and sustainable in the long term.
In addition, EM can help organisations to innovate and remain competitive in the rapidly changing engineering industry. By providing a strategic perspective on engineering projects and processes, EM can identify opportunities for innovation and guide organisations towards new areas of growth and development.
EM differs from general business (administration) management in several ways. For example, EM focuses more on the technical aspects of engineering projects, such as design, production, and maintenance (Badawy, 1998). It also focuses on the development of new technologies and the management of resources and personnel associated with engineering projects (Badawy, 1998). Additionally, EM requires a much more specialised knowledge of engineering principles and processes (Badawy, 1998). EM also requires an understanding of the technical and managerial aspects of engineering, as well as the ability to effectively manage the complex relationships between engineering, technology, and business (Elia et al., 2021).
Different concurrent and interdisciplinary engineering approaches allow organisations to become the first to achieve a specific outcome, and to be the most successful and valuable in the market (Lannes, 2001). In turn, the above makes engineering a team effort. Thus, Lannes (2001) reasons that in order to be successful in a team setting, it is necessary to possess strong EM skills in addition to technical knowledge (Lannes, 2001). Another important aspect of EM is its focus on continuous improvement. EM professionals are trained to use data and analysis to identify areas of improvement and implement changes to optimise performance. This can result in cost savings, improved quality, and increased productivity for companies (Lannes, 2001). Badawy (1998) states: “The idea that a good manager can manage anything regardless of its technological base is simplistic, misleading, and must be abandoned” (Badawy, 1998, p. 96).
In summary, EM is essential for engineering organisations in order to ensure that projects are managed effectively and efficiently, to create a higher level of customer satisfaction and in turn create an organisation that is successful (Elia et al., 2021).
Implementation of EM Practices
Cunningham and Kwakkel (2011) examined how organisations employed EM practices. Their study explored the impact of innovation management on the efficiency, effectiveness and success of the organisation (Cunningham & Kwakkel, 2011). They found that an organisation was able to reduce costs, improve the accuracy of their innovation forecasting and increase the speed of its product development (Cunningham & Kwakkel, 2011). Furthermore, the organisation was able to better anticipate customer needs and accelerated their response to changes in the market (Cunningham & Kwakkel, 2011). The authors highlight the importance of incorporating innovation management into the EM practices of similar organisations (Cunningham & Kwakkel, 2011).
In addition to this study, there have been reports on the implementation of EM practices in organisations. These reports highlight the importance of taking a proactive approach, to EM, and incorporating EM practices like innovation management into the organisation's decision-making process (Cunningham & Kwakkel, 2011).
From the existing literature on this topic, there exists evidence that employing key EM practices into an organisation can lead to improved efficiency, effectiveness and success (Cunningham & Kwakkel, 2011).
Research by Trevelyan (2008) demonstrates that EM practice is composed of two intertwined components. The first is mainly intellectual: recognising social demands, then conceptualising solutions and estimating how effective they will be (Trevelyan, 2008). The second component is practical: providing solutions that are consistent with the expected cost, timeline, safety, and environmental effects (Trevelyan, 2008). Consequently, a vital element in understanding EM practice is perceiving human behaviour concerning technical matters (Trevelyan, 2008).
Challenges in EM Practices
The implementation of EM practices in organisations presents a range of challenges. Nittala and Jesiek (2018) state that organizations’ management must have the ability to integrate technical knowledge with an understanding of the business, in order to be successful in the organisation. This requires a significant amount of knowledge and understanding of the industry, as well as the ability to manage and lead employees in a way that is beneficial to the specific organisation (Nittala & Jesiek, 2018). Additionally, it is essential that engineering managers have the necessary skills to manage risk, identify potential areas of improvement and develop strategies to ensure the organisation is competitive in the marketplace (Nittala & Jesiek, 2018).
The implementation of EM practices in large organisations, however, can also introduce negative outcomes. Nittala and Jesiek (2018) note that engineering managers in large organisations often have to deal with a variety of stakeholders and decision-makers, which can lead to delays in decision-making and implementation of new initiatives. Additionally, due to the complexity of large organisations, it can be difficult for engineering managers to effectively manage and coordinate projects, leading to inefficiencies and potential delays (Nittala & Jesiek, 2018).
Trevelyan's (2008) study with engineers has demonstrated that mistakes and failures in technical design or in calculations foreseeing performance are present but are rare. Nonetheless, mistakes in practicing EM are sadly quite common (Trevelyan, 2008).
It is evident that managing risk and uncertainty is a major issue in EM practice. Although unpredictable natural elements still account for a significant portion of engineering risks, an equal number of risks are related to predictable traits of human behaviour (Trevelyan, 2008). Thus, while the development of soft skills such as communication has been seen as a supplement to technical studies, Trevelyan's research demonstrates that technical and social issues are inseparably interrelated in practice (Trevelyan, 2008).
In summary, the introduction of EM practices presents a range of challenges. Organizations’ management must have the necessary skills and knowledge to successfully lead and manage in the organisation, while taking into consideration the potential disadvantages associated with large and complex organisations (Nittala & Jesiek, 2018).
The Foundryze EM Framework
EM is a multidisciplinary field that combines engineering, technology, and management principles to effectively manage engineering projects, processes, and organisations (Badawy, 1998; Elia et al., 2021; Kotnour & Farr, 2005). It involves applying engineering principles and techniques to solve business problems, manage resources, and ensure the successful completion of projects (Badawy, 1998; Elia et al., 2021; Kotnour & Farr, 2005). The Foundryze EM framework focuses on the integration of technical knowledge and business acumen - to drive innovation, scalability and improve organisational performance.
Our comprehensive framework identifies all the strengths and weaknesses in engineering companies’ EM practices, through bottom-up cohort assessments. Our framework includes the following 10 EM elements:
References:
Badawy, M. K., (1998). “Technology Management Education: Alternative Models”, California Management Review, 40(4), pp. 94–116. doi:10.2307/41165966.
Cunningham, S. W. & Kwakkel, J., (2011). “Innovation forecasting: A case study of the management of engineering and technology literature”, Technological Forecasting and Social Change, 78(2), pp. 346–357. doi:10.1016/j.techfore.2010.11.001.
Elia, G., Margherita, A. & Passiante, G., (2021). “Management Engineering: A New Perspective on the Integration of Engineering and Management Knowledge”, IEEE Transactions On Engineering Management, 68(3), pp. 881-893.
Kotnour, T. & Farr, J. V., (2005). “Engineering Management: Past, Present, and Future”, Engineering Management Journal, 17(1), pp. 15–26. doi:10.1080/10429247.2005.11415273.
Lannes, W.J., (2001). “What is Engineering Management?”, IEEE Transactions On Engineering Management, 48(1), pp. 107-115.
Nittala, S. & Jesiek, B. K., (2018). “Work Experiences of Engineering Managers: Challenges, Strategies, Competencies”, 2018 IEEE Frontiers in Education Conference (FIE), doi:10.1109/fie.2018.8658499.
Omurtag, Y. B., (2015). “What is Engineering Management? A New Look at an Old Question”, Engineering Management Journal, 21(4), pp. 3–6. doi:10.1080/10429247.2009.11431839.
Trevelyan, J., (2008). “A Framework for Understanding Engineering Practice”, American Society for Engineering Education, pp. 1-14.