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MSE 401 Group #1 James Hunter Kevin Manocheri Seokki Lee Meshal Alansari Khaled Alturkey Naif Alolaiwi. Concurrent Engineering & Project Management . Presentation Outline: . What is Concurrent Engineering What is Project Management WalMart's Implementation of CE
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MSE 401 Group #1 James Hunter Kevin Manocheri Seokki Lee MeshalAlansari Khaled Alturkey Naif Alolaiwi Concurrent Engineering &Project Management
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
What is Concurrent Engineering: • 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 James Hunter
What is Concurrent Engineering: Advantaged and Disadvantages: • 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%) • 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) James Hunter
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: • CPM/PERT • Work Breakdown Structure (WBS) • Organization Assessment IOM Check List • Gantt Chart Kevin Manocheri
What is Project Management: Advantaged & Disadvantages: • 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. 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 SeokkiLee
Case Study 1: WalMart SeokkiLee
Case Study 1: Walmart (Walmart) (E-mart) SeokkiLee
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: • Had substantial experience in NPD • Were developing relatively complex products • Used concurrent engineering methods • Operated in highly competitive markets • 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: • Motivations, risks, and competitive pressures surrounding the project • Product complexity and technologies • Project scheduling and concurrency • Team personnel, organization, incentives, and authority; • Definitions, motivations, and benefits of CE • Functional interactions and communication modes; • Methods and tools used to promote CE • Barriers and keys to success Naif Alolaiwi
Challenges in NPD Projects • Program Priorities: • Design Quality • Product Cost • Product Introduction speed • 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