Download - Concurrent Engineering & Project Management
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