Engineering Management 1
1. Student A, in order to graduate on February 4, works hard to finish her master of engineering report by the due date of January 8. She is planning to return to her home country immediately thereafter and get married. If she graduates on June 10, the next available graduation date, she will have to pay a tuition fee to keep her student status active for one more semester. That would be a substantial financial burden for her.
Her advisor, Professor B, is hesitant to accept the report as presented. The report includes a major marketing activity designed by Student A to promote the new service package of a local company. Because of logistics, this major market- ing activity is scheduled to take place on January 20. No customer feedback data, which are required to demonstrate the value brought about by the report, are available before January 8. Professor B cannot bend the rules to pass the report without these data.
Put your innovation hat on and recommend a way to resolve this conflict.
2. The engineering manager of Company A proposes to install an automated bar- code scanner costing $4000. He estimates that he can save about 100 hours of labor time per month, as products can now be scanned much faster. He reasons that at the wage rate of $15 per hour, the benefit for using the automated bar-code scanner is $1500 per month, and the scanner can be paid back in 2.67 months.
As the president of Company A, do you agree or disagree with the way he com- putes the cost–benefit ratio? Why or why not?
3. In the literature, it is generally said that innovations in the service sectors are lagging behind those in the manufacturing sectors. Explain why this might indeed be so.