9.2 Engineering Management & Ethics

9.2 Engineering Management & Ethics

Engineering Management combines technical expertise with administrative control to organize human resources, capital, equipment, and materials effectively. For the REE Licensure Examination, candidates must understand managerial functions, decision-making models, network project management (CPM/PERT), inventory optimization, and the mandatory Code of Ethics for Electrical Engineers in the Philippines.

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1. Management Functions & Organizational Structures

Management is defined as the process of achieving organizational goals through the efficient deployment of resources.

The Five Core Functions of Management (POLC)

1. Planning: Establishing organizational objectives, strategies, and operational plans. Includes forecasting, goal setting, and budgeting.
2. Organizing: Structuring tasks, assigning authority, and allocating resources. Designing organizational charts and defining lines of responsibility.
3. Staffing: Recruiting, selecting, training, evaluating, and compensating technical personnel and engineering staff.
4. Leading / Directing: Influencing, motivating, communicating with, and guiding team members toward goal accomplishment.
5. Controlling: Measuring actual operational performance against planned standards, identifying variances, and executing corrective actions.

Common Organizational Structures

Decision-Making Under Risk and Uncertainty

When evaluating decisions under probabilistic risk:

• Expected Monetary Value (EMV): $\text{EMV} = \sum_{i=1}^n P(S_i) \cdot V(S_i)$ where $P(S_i)$ is probability of state of nature $i$, and $V(S_i)$ is payout value.

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2. Project Management & Network Scheduling (CPM / PERT)

Complex electrical engineering projects (such as substation construction or power plant overhauls) rely on network analysis techniques.

Critical Path Method (CPM)

CPM assumes deterministic activity durations to calculate project completion time and schedule slack.

• Early Start ($ES$): Earliest time an activity can begin: $ES = \max(\text{EF of immediate predecessors})$.
• Early Finish ($EF$): $EF = ES + \text{Duration}$.
• Late Finish ($LF$): Latest time an activity can finish without delaying project completion: $LF = \min(\text{LS of immediate successors})$.
• Late Start ($LS$): $LS = LF - \text{Duration}$.

Slack / Float Definitions

• Total Float ($TF$): Time an activity can be delayed without delaying project completion date: $TF = LS - ES = LF - EF$
• Free Float ($FF$): Time an activity can be delayed without delaying the early start of any immediate successor: $FF = \min(ES_{\text{successor}}) - EF$
• Critical Path: The sequence of dependent activities with zero total float ($TF = 0$). It dictates the minimum project duration.

Program Evaluation and Review Technique (PERT)

PERT accounts for probabilistic duration uncertainty using three time estimates for each activity:

• $a$ = Optimistic time
• $m$ = Most likely time
• $b$ = Pessimistic time

$\text{Expected Activity Duration } (t_e) = \frac{a + 4m + b}{6}$

$\text{Activity Variance } (\sigma^2) = \left( \frac{b - a}{6} \right)^2$

• Project Completion Probability: The total critical path expected duration $T_E = \sum t_e$ and path variance $\sigma_P^2 = \sum \sigma_{\text{critical}}^2$. Standard normal variable $Z$ for target date $T_D$: $Z = \frac{T_D - T_E}{\sqrt{\sigma_P^2}}$

Project Crashing (Cost-Time Trade-Off)

Accelerating project completion by adding resources to critical path activities:

$\text{Crash Cost Slope} = \frac{\text{Crash Cost} - \text{Normal Cost}}{\text{Normal Time} - \text{Crash Time}}$

• Rule: Crash the critical path activity having the lowest crash cost slope first.

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3. Inventory Control & Operations Management

Economic Order Quantity (EOQ)

EOQ balances annual inventory ordering costs against annual storage/holding costs to find the optimal batch purchase size.

• $D$ = Annual demand (units/year)
• $S$ = Cost per order placed (PHP/order)
• $H$ = Annual holding/carrying cost per unit (PHP/unit/year)
• $C$ = Unit purchase price
• $i$ = Holding cost rate ($H = i \cdot C$)

$\text{EOQ} = \sqrt{\frac{2 D S}{H}} = \sqrt{\frac{2 D S}{i C}}$

$\text{Total Annual Inventory Cost } (TC) = \frac{D}{Q} S + \frac{Q}{2} H + D C$

$\text{Optimal Order Frequency } (N) = \frac{D}{\text{EOQ}}, \quad \text{Reorder Point } (ROP) = d_{\text{daily}} \times \text{Lead Time}$

Total Quality Management (TQM) & ISO Standards

• ISO 9001: Quality management systems standards focusing on customer satisfaction, process approach, continuous improvement, and leadership commitment.
• Occupational Safety and Health Standards (OSHS): Mandated safety guidelines enforced by the Department of Labor and Employment (DOLE) under RA 11058.

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4. Code of Ethics for Electrical Engineers in the Philippines

In the Philippines, professional ethics for electrical practitioners are codified in the Revised Code of Ethics for Licensed Electrical Engineering Practitioners, Annex "A" of PRB of Electrical Engineering Resolution No. 65, series of 2024, which repealed Board Resolution No. 08 (s. 2011). It binds PEEs, REEs and RMEs alike and is organised into Article I (Professional Life), Article II (Relation with Client and Employer), Article III (Relation with Fellow Engineers) and Article IV (Penal Provisions).

Fundamental Principles & Statutory Obligations

1. Obligations to Public Health, Safety & Welfare:

   • Electrical engineers must hold paramount the safety, health, and welfare of the public in the performance of professional duties.
   • If an engineer's professional judgment is overruled under circumstances that endanger safety, life, or property, they must notify their employer, client, and proper administrative authorities immediately.

2. Obligations to Clients and Employers:

   • Perform services only in areas of technical competence.
   • Act as faithful agents or trustees for each employer or client.
   • Maintain absolute confidentiality regarding proprietary business affairs or technical processes of clients or employers.
   • Avoid conflicts of interest; disclose any financial interests, business affiliations, or connections that could influence professional judgment.

3. Obligations to the Profession & Colleagues:

   • Uphold the dignity, honor, and integrity of the electrical engineering profession.
   • Refuse kickbacks, bribes, secret commissions, or soliciting financial inducements.
   • Never attempt to injure maliciously or falsely, directly or indirectly, the professional reputation, prospects, practice, or employment of another engineer.
   • Sign and seal only those electrical plans, documents, and specifications that were prepared directly by the engineer or under their immediate supervision.

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Solved Board Exam Examples

Example 1: PERT Network Analysis & Critical Path

Problem: An electrical substation construction project comprises five sequential activities with duration parameters in days:

Calculate the expected duration $t_e$ for each activity, identify the critical path, and determine total project expected completion time.

Solution:

1. Calculate expected duration $t_e = \frac{a + 4m + b}{6}$:
   • $t_{e,A} = \frac{2 + 4(4) + 6}{6} = \frac{24}{6} = 4\ \text{days}$
   • $t_{e,B} = \frac{3 + 4(6) + 9}{6} = \frac{36}{6} = 6\ \text{days}$
   • $t_{e,C} = \frac{2 + 4(5) + 8}{6} = \frac{30}{6} = 5\ \text{days}$
   • $t_{e,D} = \frac{4 + 4(7) + 10}{6} = \frac{42}{6} = 7\ \text{days}$
   • $t_{e,E} = \frac{1 + 4(2) + 3}{6} = \frac{12}{6} = 2\ \text{days}$
2. Evaluate potential network paths:
   • Path 1 (A-C-E): Duration = $t_{e,A} + t_{e,C} + t_{e,E} = 4 + 5 + 2 = 11\ \text{days}$.
   • Path 2 (A-B-D-E): Duration = $t_{e,A} + t_{e,B} + t_{e,D} + t_{e,E} = 4 + 6 + 7 + 2 = 19\ \text{days}$.
3. Conclusion: The Critical Path is A-B-D-E with a total expected project completion duration of 19 days.

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Example 2: EOQ Calculation for Transformer Oil Spares

Problem: An electric utility consumes $D = 1,200\ \text{drums}$ of insulating transformer oil per year. The procurement cost per order is $S = \text{PHP }1,500$, and the annual carrying/holding cost per drum is $H = \text{PHP }100$. Determine:

1. The Economic Order Quantity (EOQ).
2. The optimal number of orders placed per year.

Solution:

1. Calculate EOQ: $\text{EOQ} = \sqrt{\frac{2 D S}{H}} = \sqrt{\frac{2 \times 1,200 \times 1,500}{100}} = \sqrt{\frac{3,600,000}{100}} = \sqrt{36,000} = 189.736 \approx 190\ \text{drums}$
2. Optimal number of orders per year ($N$): $N = \frac{D}{\text{EOQ}} = \frac{1,200}{189.736} = 6.324 \approx 6.3\ \text{orders/year}$