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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 KoreaSeokki 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 retailer (Shinsegae)
Withdrawing business : May, 2006
Seokki Lee
Case Study 1: Walmart
Major cause of failure Criteria for failure of CEUniqueness 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 communicationMeshal Alansari
Case Study Methodology
The selected firm
included in the study: 1. Had substantial experience in NPD
2. Were developing relatively complex
products
3. Used concurrent engineering methods
4. Operated in highly competitive markets
5. 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 project
2. Product complexity and technologies
3. Project scheduling and concurrency
4. Team personnel, organization, incentives, and
authority;
5. Definitions, motivations, and benefits of CE
6. Functional interactions and communication
modes;
7. Methods and tools used to promote CE
8. 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 programsKhaled
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 challengesKhaled
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