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