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Managing Complex Technical Projects with Design Structure Matrices

Managing Complex Technical Projects with Design Structure Matrices. Univ.-Prof. Dr.-Ing. Dipl.-Wirt.-Ing. Christopher M. Schlick Chair and Institute of Industrial Engineering and Ergonomics RWTH Aachen University Bergdriesch 27 52062 Aachen phone: 0241 80 99 440

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Managing Complex Technical Projects with Design Structure Matrices

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  1. Managing Complex Technical Projects with Design Structure Matrices Univ.-Prof. Dr.-Ing. Dipl.-Wirt.-Ing. Christopher M. Schlick Chair and Institute of Industrial Engineering and Ergonomics RWTH Aachen University Bergdriesch 27 52062 Aachen phone: 0241 80 99 440 email: c.schlick@iaw.rwth-aachen.de

  2. Index Challenges of managing technical projects in the automotive industry Complexity management: foundations of Design Structure Matrices (DSM) Simulation-based project and change management with DeSiM Application and verification of DeSiM in the automotive industry Change Management: Impacts of product changes on project schedule 1 2 3 4 5

  3. Characteristics of technical projects in the automotive industry • Multiple criteria optimization: shorten time to market, lower costs and improve quality • High degree of product complexity plus continuous improvement and innovation • Simultaneous and coupled workstreams due to Concurrent Engineering • Planned and unplanned iterations • Unpredictable product changes • High risk of time and cost overrun Innovative „Diesotto“ Engine Therefore an integrated project and change management is promising! Example project plan

  4. Challenges of project and change management • Classical planning methods have significant shortcomings: • No consideration of complex information dependencies between activities and product functions or components • Uncertainty of process organization (iteration loops, rework) are not taken into account • Weak support for change management. • An integrated project and change management should cover: • Estimation of project lead time and costs under uncertainty • Analysis of the project course of action and allocation of resources • Analysis of time and cost effects due to product changes • Bottleneck analysis: dynamically evolving critical path • Risk management. A Konstruktion Vorfertigung Eigenteile B 0 120 120 120 112 232 0 0 120 148 28 260 A novel methodological foundation is needed – DSM !

  5. Types of Design Structure Matrices (DSM) Design Structure Matrices (DSM) Static Dynamic Type Products Processes Parameters Organization Application • Static • Interconnections between elements are constant over time • System optimization by clustering cells of the matrix. • Dynamic • Time is order parameter for interconnections between elements • System optimization by sequencing cells of the matrix +dynamic simulation Source: according to Browning 2001

  6. Product DSM: Interconnections between engine parts (example: Arvin Meritor) Baseline DSM Configuation Electrical & Control Engine Upper End Engine Upper End Induction Fueling Exhaust Source: De Weck 2007

  7. Process DSM:Encoding of information relations ... depends on ... Informational dependencies between activities of workstreams can be shown in dynamic DSM. Advantages: • Depiction of complex and highly coupled processes is possible • Iterations can be shown • Compact presentation form • Degree of dependence can be shown Disadvantages: • Notation requires explanation • No information for branches regarding whether conditional connection exists. Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Activity 1 Activity 2 feedback ... influences ... Activity 3 Activity 4 feed forward Activity 5 Activity 6 Source: according to Browning 2001

  8. Process DSM:Derivation of workflows Activity 1 Activity 2 Activity 3 Activity 2 Activity 4 Activity 5 Activity 6 Activity 3 Activity 5 Activity 4 Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Sequential activities(with or without overlapping) Aktivität 1 Sequence of activities Activity 2 Concurrent/simultaneous activities (fork) Activity 3 Activity 4 Simultaneous activities Activity 5 Coupled activities Activity 6 Coupled activities Concurrent/simultaneous activities (join) Source: according to Browning 2001

  9. Different work policies in the DSM A B A B A B A B A A A A B B B B parallel overlapped coupled sequential Activity A Activity A Activity A Activity A Activity B Activity B Activity B Activity B Start of B after 40% processing of A

  10. Interactions between product and process systems: Domain Mapping Matrix (DMM) Part A Part B … Part m • The architecture of product and process systems can be depicted in distinct DSM. • The mapping between them can be done with a Domain Mapping Matrix (DMM). m x m Product DSM Part A Part B … Part m … Activity n Activity 1 Activity 2 Activity 3 n x n Process DSM n x m Process Product DMM Activity 1 Activity 2 Activity 3 … Activity n Source: according to Danilovic & Browning 2007

  11. Project and change management with the simulation model and tool DeSiM DeSiM allows a systematic prediction of project lead time and costs including the analysis of effects due to changes on product functions or components Simulation with product change Visualization 7 11 2 1 8 9 Product change? 3 4 y 10 5 n 6 Simulation without product change Input for DeSiM: Collection of activities Duration and Costs Begin of processing Iteration probability Generated rework Reduction of iteration probability Time point of product change Change vector Product matrix Process product DMM Visualization Gärtner et al. 2009

  12. Industrial application of DeSiM in the automotive industry Development of software for a control unit in power-train: Project consists of 26 activities with the phases conception, development, component test, system test and application Project is on the critical path Project is subject to spiral development Many unplanned iterations Subject to frequent product changes Only few people have complete overview

  13. The Graphical User Interface of DeSiM - Data Input

  14. Reduction of the project lead time by overlapping activities Probability density functions for project lead time Dependency between duration and costs 12000 with overlapping with overlapping without overlapping 10000 8000 Counts 6000 Costs Counts 4000 without overlapping 2000 0 Duration [TU] Duration [TU]

  15. The Graphical User Interface of DeSiM - Product change Vector with all product changes Change vector Product matrix Rework vector Process product DMM Simulation

  16. Consideration of product changes Example: Change of product requirement „CAN bus load“ Probability density functions for project lead time Dependency between duration and costs 1200 without overlapping with overlapping and product change without product change 1000 with overlapping 800 Costs Counts 600 Counts 400 with product change 200 0 Duration [TU] Duration [TU]

  17. Impact of a product change on the project plan Iterations Time point of product change Activities duration [TU] The impact of a product change depends on time point and its significance

  18. Impact of the time point of change on the project lead time 95% confidence interval Duration [TU] Early product change Late product change time point of change after activity • Delay in communication of product change leads to an increased project lead time. • Product change increases prob. of additional iterations and risk of a deadline overrun.

  19. Impact of the product change on the project lead time Product change past activity 20 Duration [TU] Product change past activity 7 complete redesign small product change significance of product change • Even small product changes lead to a significant amount of rework • A late complete redesign can nearly double the project lead time • A significant product change should be considered in the project as early as possible to keep the risk of deadline overrun small

  20. Conclusion The management of development projects is very challenging due to high product and process complexity, many involved stakeholders, planned and unplanned iterations and unforeseen product changes. Design Structure Matrices can be used to analyze and model highly complex dependencies in products and processes. Modeling and simulation of development projects with the innovative project and change management tool DeSiM allows to predict project lead time and costs systematically. Furthermore, the effects of changes on product functions and components and the process architecture can be analyzed.

  21. Thank you for your attention For further contact, please refer to: Univ.-Prof. Dr.-Ing. Dipl.-Wirt.-Ing. Christopher M. Schlick Chair and Institute of Industrial Engineering and Ergonomics RWTH Aachen University Bergdriesch 27 52062 Aachen phone: 0241 80 99 440 email: c.schlick@iaw.rwth-aachen.de

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