Concurrent Engineering &

Project Management

MSE 401Group #1 James Hunter Kevin Manocheri Seokki LeeMeshal AlansariKhaled AlturkeyNaif Alolaiwi

Presentation Outline: What is Concurrent Engineering What is Project Management WalMart's Implementation of CE Boeing Conclusion

James Hunter

What is Concurrent Engineering:

Concurrent Engineering (CE) is a systematic approach to integrated product development that emphasizes the response to customer expectations. It embodies team values of co-operation, trust and sharing in such a manner that decision making is by consensus, involving all perspectives in parallel, from the beginning of the product life cycle. (http://en.wikipedia.org/wiki/Concurrent_Engineering)

James Hunter

CE is also known as Simultaneous Engineering or Integrated Product Development

CE is relatively new (Last 25 years) Institute for Defense Analysis (IDA)

Replaces tradition “Waterfall” method CE was designed to for the Product Development Stage

Optimizes engineering design cycles CE is a long term Strategy Any successful organization, now, must implement

Concurrent Engineering. Most apparent in the Aerospace Industry

What is Concurrent Engineering:

James Hunter

Advantages : Integrated Project Management

(IPM) Integrated Project Teams (IPT) Optimizes Engineering Design

Cycles Information Sharing Reduces Costs (Long Term) Maximized Quality (200%-600%) Reduces Development Time

(30%-70%) Reduces Design Rework (65%-

90%)

What is Concurrent Engineering: Advantaged and Disadvantages:

James Hunter

Disadvantages/Challenges Large Upfront Investment Implementation of Early Design

Reviews Dependency on Efficient

Communication Software Compatibility Need for Computer Modeling Organizational and Cultural

Changes (Anchor draggers)

What is Project Management:

Project management is the discipline of planning, organizing, securing, managing, leading, and controlling resources to achieve specific goals.

A project is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value.

Kevin Manocheri

Project Management Overview: In 1950’s Project management initiated on the construction and defense

project when there was more need for it. Henry Gantt and Henri Fayol are known as the fathers of project

management. Gantt for creating scheduling and Fayol for introducing the 5 concepts of managerial functions.

Project management is a technique to control the time, cost, quality and overall scope of the project.

Key metrics of project management are time cost, performance objective. Project management’s most usable tools are Gantt chart, PERT, (program,

evaluation review technique), CPM (critical path method), risk Management, and network Diagram.

Kevin Manocheri

Tools Used for PM and CE: Work Breakdown

Structure (WBS) CPM/PERT

Gantt Chart Organization Assessment IOM Check List

Kevin Manocheri

Advantages : Better efficiency in delivering services Improved and enhanced customer satisfaction Improved growth and development within the team Greater competitive edge Better flexibility Increased risk assessment Provides a plan to follow

Disadvantage: If it’s implemented correctly there is no disadvantage.

What is Project Management: Advantaged & Disadvantages:

Kevin Manocheri

Concurrent Engineering & Project Management Relation.

With out descent project management concurrent engineering would not be applicable.

Project Management is a Derivative of CE. Need PM to implement CE successfully.

Kevin Manocheri

Case Study 1: WalMart

Founded year : 1962 Founder : Sam Walton World`s third largest corporation by Fortune 500 Largest retailer in the world Over 2 million employees Success in most countries Unsuccessful in South Korea

Seokki Lee

Case Study 1: WalMart

Arrival in South Korea : July, 1998

16 stores in South Korea (only 1 in Seoul)

Loss in 2005 : $ 10 million

Sold all 16 stores to largest local re-tailer (Shinsegae)

Withdrawing business : May, 2006

Seokki Lee

Case Study 1: Walmart Major cause of failure Criteria for failure of CE

Uniqueness of Korean consumers Unidentified major mission at the begin-ning, Ineffective communication with cus-tomers

EDLP (Everyday Low Price) strategy Insufficient resources for planning,Unidentified external customers

Indifferent products Not evolving requirements of customers,Work inflexible with customers

Lack of accessibility / Insufficient stores

Unmodified tasks to optimize the project output,Lack of communication channels

E-commerce (Online shopping) Un-established techniques and protocols for customers(Walmart)

(E-mart)Seokki Lee

Boeing Company Case Study

James Hunter

Successful CE Case Study Overview

NPD project was executed using the CE implementations:▪ Boeing’s 777 project

Meshal Alansari

Successful Case Study Overview

Boeing Commercial Aircraft Division - 777 Project: New technologies:

▪ digital avionics▪ advanced lightweight materials▪ dual-engine▪ two pilot design (%25 less cost per seat-

mile)▪ replacement for 747 family

$4-5 billion to launch first member of 777 family

Meshal Alansari

Successful Case Study Overview Teams provide the primary

integration mechanism in CE projects.

Three types of teams appeared in the project:▪ Program management team

▪ Technical team

▪ Numerous design-build team

Meshal Alansari

Communication Among Teams

Communicating methods included: Face to face communication Phone conversation Document Electronic mail

Based on the project focus, a certain way of communication used:

▪ Project focusing on design quality relied on formal personation and periodic review meetings

▪ Project emphasizing development speed required frequent informal communication

Meshal Alansari

Case Study Methodology

The selected firm included in the study: 1. Had substantial experience in NPD2. Were developing relatively complex products3. Used concurrent engineering methods

4. Operated in highly competitive markets5. Collectively represented a diversity of

product and market needs

Meshal Alansari

Case Study Methodology

The study used a questionnaire containing 29 open-ended questions addressed:1. Motivations, risks, and competitive pressures

surrounding the project2. Product complexity and technologies3. Project scheduling and concurrency4. Team personnel, organization, incentives, and

authority;5. Definitions, motivations, and benefits of CE6. Functional interactions and communication

modes;7. Methods and tools used to promote CE8. Barriers and keys to success

Naif Alolaiwi

Challenges in NPD Projects

I. Program Priorities:▪ Design Quality▪ Product Cost▪ Product Introduction speed

II. Project Characteristics:▪ Project Complexity▪ Innovation▪ Technical Risk

Naif Alolaiwi

Program Priorities

Design Quality 777 project:

▪ Has 500 suppliers ▪ Need 3,000,000 parts▪ Has 1700 computer workstation

(220 of them in Japan)▪ New aircraft must prove

reliability with at least 2 years to be FAA approved

Naif Alolaiwi

Program Priorities

Product Cost Boeing faced significant

product cost challenges on the 777 project due to stiff competition from Airbus and the deregulation of the airline industry.

Naif Alolaiwi

Project Characteristics

Project Complexity 777 project:

▪ 7000 people located in countries throughout the world▪ Boeing placed tremendous emphasis on communication to

minimize risks

Khaled Alturkey

Benefits CE Implementation

Some of the companies documented savings in overall product development costs of approximately 20% and reductions in engineering design changes of 4.5%-50%.

Khaled Alturkey

Summary of CE Practices

At least 3 opportunities exist for concurrent processing:▪ Simultaneously developing market concept, product

designs, manufacturing process, product structures▪ Overlapping design disciplines so that system level and

component level designs are produced concurrently▪ Overlapping of separate but related new products

requiring coordination between NPD programs

Khaled Alturkey

Summary of CE Practices

As degrees of overlap among activities become more intense, decisions that are dependent on information from upstream processes become more uncertain (more risk)

Successful CE implementation approaches differ depending on factors such as:▪ Product characteristics ▪ Customer needs ▪ Technology requirements

Khaled Alturkey

Summary of CE Practices

Teams are essential organizational forms for promoting integration

Team arrangements include: program management team, technical team, design-build teams, integration teams, and task forces

The modes, frequency, richness, and formality of communications among project participants varies according to information complexity, design, and timing challenges

Khaled Alturkey

Conclusion:

Project Management is needed to implement Concurrent Engineering correctly.

Need Concurrent Engineering to be competitive today.

Project Management is a part of Concurrent Engineering

Generally benefits are greater than the disadvantages

James Hunter

Questions & Answers