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Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 1
Production Management II- Lecture 10 -
Product Lifecycle Management IIISimultaneous Engineering
Prof. Dr.-Ing. R. Noppen
Supervisor (for this lecture):Dipl.-Ing. Dipl.-Wirt. Ing. A. [email protected] 53b R. 504Tel.: 80-28203
Notes:
L10 Page 1
Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 2
Classification of the Lecture Product Lifecycle Management (PLM) III
PLM I(CAD)
PLM II(EDM/PDM)
PLM III(SE)
PLM I
PLM II PLM III
Legend: CAD Computer Aided DesignEDM/PDM Engineering Data Management/Product Data ManagementSE Simultaneous Engineering
Classification of the Lecture Product Lifecycle Management (PLM) III
The lecture Product Lifecycle Management III deals with the topic of Simultaneous Engineering. Its contents are connected to the previous lectures (PLM I and PLM II) and partly overlapping.
The lecture PLM III covers so-called “management aspects“ of the PLM. Therefore the aspects treated by the lectures PLM I and PLM II are arranged to fit an overall context.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 3
change of structures and values in society
acceleration of technologic progress
change of market structures improvement of communication and transportation technologies
growing demands concerning products and services
time
time
20 +1_
20 +0.01_
The Change of the Economic Conditions
The Change of the Economic Conditions
Compared to former times, the economic conditions have changed fundamentally. About 150 years ago, the economic success of a company was almost entirely determined by the design of its production processes. Today a company faces a multitude of new challenges and its fast reaction to cope with these is essential for success. Essentially, there are five fields to be taken into account.
The change of structures and values in society, also called change of paradigms, manifests itself in the fact that today the mere function of a product is taken for granted. Instead the quality, cost and image of the product are decisive for its success.
The acceleration of the technologic progress causes a shortening of the life-cycle time of a product. Companies have to identify influencing factors and to differentiate between those which are constant and those which are changing rapidly. Cycles must be properly identified and utilized. For example in the automotive industry the product life-cycle time of an engine is three times as long as that of a car body. If both are developed simultaneously, existential trouble can be expected due to the resulting problems.
The change of market structures caused by globalisation becomes apparent in the switch from national to international markets. In consequence to this the choice of an adequate production location becomes a highly complex task. The production in global networks must be supplied by enormous trade and huge exchange of information. Only the continuous improvement of communication- and logistic technologies is covering this requirement.
The demands of products and services are also increasing continuously. In the sixties, the fuel consumption of a low power Volkswagen beetle was about 12l/100km. Today most luxury class cars do not need more fuel.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
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carry out key projects (e.g. lamella roof)
Innovation Strength
analysis:
basic equipment sun roof in country XY
BMW Mercedes
20% 15%
why different?
differences in marketing?
...?
innovation strengthstimulate customer‘s
interest, enthusiasm and desire through innovation
and performance
create discomfort by arguments
Innovation Strength
For today‘s companies it is vital to powerfully design changes and thus to be innovative. Yet there are only few companies which manage to generate actively innovations as there is a lack of innovation strength.
The most common understanding of the term innovation is the replacement of an old technology with a new one. For example products with a high innovation rate are mobile phones or computers. Here, new technologies are introduced to the market every 1-2 years (product innovation).
Another type of innovation deals with the redesign of the production process of an existing product in order to be faster, cheaper and more steady in terms of quality (process innovation). An example is the replacement of drawing boards by CAD systems.
Redesigning and improving the communication with the customer is a third possibility of innovation. Only companies, which are capable to point out there technical potentials, are able to capitalise economic profit on their product innovation. For example, when Mannesmann, a mechanical engineering company, entered the mobile communication market new and no typical marketing instruments had to be developed.
The aim of marketing strategies are stimulating the customers’ desire to buy a product by using innovation, performance and competence. For example Webasto managed to develop a new lamella roof for the Mercedes A-Class which enabled the space-saving installation of sun roofs in this car for the first time. This development made Webasto market and technology leader in the field of lamella roofs.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 5
Acquisition of Feedback from End Customers
questionnairequestionnaire
questionnaire
Sales trainings at big car sellers‘
Survey at motorway service areas
satisfaction with:- parking heater- sun roof-...
Questionnaire to 1000 car owners
comfort demands?
Webasto?
...?
.........
feedback
Public check: display of 10 cars equipped with different folding fabric sun roofs
Acquisition of Feedback from End Customers
Processing the question of how to improve a product is the aim of feedback acquisition. A second aim is to check the accordance with self-perception of products and the customer's perception.
It is reasonable to begin with the design of a questionnaire which is not only product-specific but also deals with the buyers‘ and users‘ habits. The questionnaire should not be distributed via mail but filled out during a direct conversation with the customer (e.g. at motorway service areas). It is helpful to create a comfortable atmosphere by offering beverages etc.. The motto is here: “listening is the best marketing“. A carefully controlled conversation is the best opportunity to get the customers' opinion about products, e.g. sun roofs.
Another way of benchmarking products is the so called "customer check". Passing people are encouraged to test different variants of a specific product, for example lamella roofs, at location. The customers' statements enable the enterprise to draw conclusions on fields of improvement of specific features, e.g. handling the lamella roof.
In general, a good rule for feedback acquisition is „make it simple“. Simple but sophisticated dialogs will best show the needs of the customers.
Finally the results of feedback acquisition must be transformed into measurable profit. This contains for example the consequent training of the salesmen in accordance with the extracted acknowledge. All efforts will be in vain if the elaborated results are not used during the direct contact with the customer.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 6
market shares
Derivation of a Market Strategy
competitive dynamics(basis of competition)
key factors
benchmarking:
relative strengths and weaknesses regarding the key success factors
competitive structure
The range of possible market strategies is a result of the dimensions life-cycle phase and relative market position.
relative market
position
market leader
strong
medium
maintain-able
weak
formation growth maturityde-
generation
offensiv
e
maintain and expand position
concentrate on nich
es
consolidation
withdrawal
range of possible market strategies
Derivation of a Market Strategy
The difficulty in finding the proper market strategy is the correct judgement of relative market position and life cycle phase of corresponding products. Agreeable to the above matrix different market strategies are resulting from this judgement. During the maturity phase of a product a completely different marketing strategy is required than during the formation phase. For example in the automotive industry it is reasonable to promote technologic innovations during the formation phase, but to stress the reliability of a car during the maturity phase.
A concrete example of the false estimation of a product life-cycle was Porsche‘s decision to cancel the production of the 911 at the begin of the 80ies and to replace it with the front engine types 924 and 928. As we all know, the 911 survived them both and today sells better than ever.
From this problem following demand is resulting: A company always has to be sensitive to changes, especially changes of the economic conditions. As four eyes can see more than just two, teamwork makes a lot of sense.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 7
Defining the Position: Own Company vs. Competitors
Legend: : company A: company B
autarkic
prod
uct p
rogr
am
stra
tegi
es
individualniche program "pioneer" com
petitive strategiesactivity strategies
reso
urce
stra
tegi
es
flexible resource supply
MODIFYINGSTRATEGIES
externalsynergy potential
X
XX
X
STABILISINGSTRATEGIES
“standardizedmass program“
“deterministicresource assignment“
“conformist“
“internalsynergy potential“
X
Competitive strategies:
defensive vs. offen-sive competitive behaviour
imitation vs. innovation
Activity strategies:
cost minimization vs.optimization ofcustomer‘s benefit
autarchy vs. cooperation
Resource strategies:
fix vs. flexiblerange of use
specialized vs. univer-sal applications
Product program strategies:
narrow vs. broadservice range
standardized vs.individual services
Defining the Position: Own Company vs. Competitors
Defining the position is a necessary task to every company because of investigating the own development and the relative market position in comparison to the competitors. A company has to know about its own strengths and the competitors' ones. For example, the product price is not the only aspect which determines the market position. In doing so the evaluation must be carried out as objectively as possible (team work). At the same time, it has to be considered that the market position is never fix. If the own strengths are cultivated and the others are kept in view, there is a good chance to maintain or keep the position.
A useful aid is the "strategic profile" (see figure above, also PM I, lecture 11). At first the company evaluates its own market position in the four quadrants in accordance to the criteria which are mentioned in the grey fields. Afterwards the "fit" has to be checked, that means, where are the own positions in comparison to the perfection. Perfection: company's positions are located on the bisecting line in each quadrant and on a cycle around the origin. If the "fit" doesn't match the perfection, the strategic position of the company must be corrected adequately. Finally there will be a check between the evaluated position and the long-ranging planned strategic position of the company. Moreover the positions can be compared with the competitors' ones. (Let's assume a company plans following a modifying strategy, but by using the strategic profile it detects that its current strategy is a stabilising one. As consequence the company has to make changes in different fields.)
To work for the company‘s future does not only mean to react, but to take action.
additional literature: Das Konzept integriertes Management, Kap. 2.5 Stoßkraft durch strategisches Management
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 8
Strategic Company Repositioning
development of newcore tasks
concentration oncore tasks
by outsourcing
new profiles:financingservice
vertically integrated processes:prefabrication rangelogistic services...
integrated auxiliary services:legal affairsPR...
intra-corporate service rangelow high
0
1ef
forts
for c
ore
task
s
tota
l effo
rts
Advantages:know-how focusingprofile improvementcost optimization
Disadvantages:loss of know-howcommunication and coordination effortsirreversible dependence on suppliers
current
trendformer trend
Strategic Company Repositioning
In the past companies often executed strategic repositioning by concentration on the enlargement of the scope of services. In contrast to this, today importance is attached to the core competences and on all capabilities and processes of the company, which are relevant to supporting core competences. By judging processes in accordance to their relevance decisions about enlargement or reducing of the scope of services can be taken. Enlargement to enter new markets and reducing to safe costs.
An example of the strategic repositioning of a company is reducing the manufacturing range. Internal “sensors“ have to report on which tasks are relevant resp. irrelevant. Outsourcing the canteen or the own license department can be a sensible option and save fixed costs, whereas outsourcing the IT is rather controversial.
When repositioning a company it is often reasonable not to think in a product-specific manner. In many cases the customer does not want a specific product but the corresponding benefit. For example a forwarding agent is not interested in a specific truck but in the corresponding transport capacity. Mercedes-Benz recognized this trend and hardly sells trucks; they have concentrated on supplying the effective transport capacity. The elevator manufacturer Kone also usually sells transportation capacity instead of elevators, which contains service and granted function, etc.
By offering auxiliary services connected to the product such as service and financing, new markets can be developed. In Eastern Europe the demand is high but the financial means are low, so a product can only be sold when applying an appropriate financing concept.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 9
Module and System Procurement of the OEMs
80
60
40
20
0
purchase range (%) reasons
reduction of the manufacture range
reduction of the development range
reduction of investments for new production lines
transfer of market risks to suppliers
use of pay scale advantages by suppliers
reduction of internal complexity
reduction of logistic efforts
reduction of development coordination efforts
cutback of supplier redundancies regarding R&D-resources
use of external specialized development capacities
realization of OEM-spanning scale effects
acceleration of development dates
concentration on core competencies
* estimated
sources: Bossard, Mercer (2002)
• How important is the service element to be outsourced for the own company?
• How capable are the suppliers?
Attention:
!
40
1993
65
2002 2015
77*
Module and System Procurement of the OEMs
Topical studies forecast a continuing trend of an increasing proportion of purchased parts and component groups up to estimated 77% in 2015. But today there already exists OEMs whose purchase range is about 80%, e.g. Porsche.
The main reason is the increasing technologic capabilities of the suppliers and the willingness of the OEMs to outsource their technical competences.
Nevertheless the estimation for 2015 as shown above must be handled with care. The OEMs have to ensure to stand independent of the suppliers. The current situation emphasizes the importance of this problem. Because of the increasing purchase range some so-called “mega suppliers” like Bosch or Magna evolved over the years. At the beginning of this development primarily the OEMs pressurized their suppliers (especially with respect to costs and quality). But nowadays the mega suppliers turned the table and due to their dominant market position they are able to pressurize the OEMs.
In consequence the competences of the OEMs are reduced to the range of the "customer relationship management" (see also lecture 2). Although some suppliers almost manufacture the entire product, they just lack the image and the customer base. At the moment, it would hardly be possible to sell a car named “Bosch”.
The danger by technical dependence appeared shortly, when in February 2005 defective diesel fuel injectors by Bosch caused call-backs and production stops by among others Mercedes and BMW.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 10
Risk Classification for New Activities
portfolio to support the risk classification for the development
of new activity areasknown new
know
nne
wtechno-
logymarket/customer
legend:
risk for activity rises
Risk Classification for New Activities
When developing new activity areas, a company has to identify which parts of the existing business can be transformed into innovation, which parts are the “tree” to hold on to.
For example it would be a high risk adventure if the sun roof manufacturer Webasto would be mad enough to take over the coffee roaster Tchibo. It is more common to hold on to at least one area, either the customers or the technology. At present Webasto conquers the bus door market as bus doors are in some respects comparable to sun roofs. In addition Webasto is world market leader in the field of auxiliary heating systems for busses and thus has excellent connections to the bus manufacturers. Therefore the risk is manageable.
It is always important to probe options systematically and then design innovations in a well ordered manner.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 11
60
0design schedulingplanning manufacturing testing
failu
re ra
tio w
ith re
spec
t to
cost
sha
res
[%]
implementation
failure occurrence
trouble shooting actions
source: VDI 2247
The Quality of the Product Development
The Quality of the Product Formation
Examinations regarding the quality in the product development process have shown that most failures (75%) are generated during the early planning phases, but they are often not detected before the production, the quality inspection or in the worst case not before the use of the customer. As costs of failure correction increase exponentially in the time a high quality level during the planning phases is very important to reduces costs.
The correction of failures during later phases is not only much more expensive, but can also damage the image, for example by call-backs. The consumer pays attention to such things!
So action has to be taken in order to recognize and avoid failures already in the early phases (in which product costs and function are influenced).
additional literature: Betriebshütte Kap13.15 Qualitätsmanagement in der Produktion
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 12
Definition:Simultaneous Engineering is the integrated and time-parallel processing of product and process design aiming at:
shortening the “time-to-market” from the product idea to its implementation, reducing the development and production costs andimproving the product quality according to the comprehensive sense of “Total Quality Management“
product planning
production planning
Guidelines:
1
2
utilization of big improvement potentials by coordinated decisions In the early phasesavoidance of modifications causing high costs during later phases
Systematic and Definition of Simultaneous Engineering (S.E.)
Systematic and Definition of Simultaneous Engineering (S.E.)
Due to the division of labour and the complex interconnections of today‘s world, processes and products must be designed at the same time in order to be faster and better than the competitors.
SE deals with the problem of lacking coordination during the early phases of the product development process (see page 11).The basic idea of SE is “parallelization”. It means that even “fuzzy”, i.e. not confirmed information, is exchanged with the aim of enabling all involved experts to check approaches and ideas at an early stage. Product and process design are processed at the same time.
Thus it becomes possible to reach the generally contrary aims of better quality, cheaper costs and shorter (cycle-)times at the same time. Yet SE needs to be well organized, which is not trivial.
additional literature: Simultaneous Engineering, Kap.1 Ziele und Potentiale des SE
Betriebshütte, Kap 7.5 Integrierte Produkt- und Prozessgestaltung
handout of the lecture 4, PM I
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 13
Relationships between Manufacturers and Suppliers in the Automotive Industry
original equipment
manufacturer (OEM)
1st tier
2nd tier
3rd tier
OEM
system integrator,
module supplier
system specialist
parts/component supplier
50 – 500 system
suppliers at 1st level
Industry-wide cooperation because of: …the technological complexity…the economical risk…the need for capacity…the innovation demands
ask too much of a single supplier.
Relationships between Manufacturers and Suppliers in the Automotive Industry
As shown in the chart above there are different levels of suppliers. The OEM primarily keeps in touch with the first level supplier, who then deals with the lower level suppliers.
At the same time industry-wide cooperation is necessary as the technological complexity of the product, the corresponding economical risk, the need for capacity and the innovation demands cannot be performed by a single supplier.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 14
Characteristics of Development Processes
Preliminary developmentStrategic tasks
system analysis
technology monitoring for product andprocess technologies
long-term product planning (5-10 years)
trend analyses (effect analyses,license analyses)
Operative taskstechnology assessment for certainproduct and process technologies
elaboration of design rules for theapplication of technology (“Design forManufacturing”, standardization)
Result:maturity phase ofproduct/process tech-nologies,conceptstudies,functionalprototypes
Task
s
System developmentsystem platform development
and design
customer neutral
fulfilment of demands specific to the automotive industry (designed space, power, reliability, number of units)
adaptation to own existingmanufacturing resources (DFx)
defined interfaces for customer characteristics (e.g. data links)
Dfx: Design For x (assembly, manufacturing, ...)
Result:prototypeswhich areready for productionand non-specific tocustomersor types
Task
s
Development at customer’scustomization of system platforms in order to getcustomer/model specific products
use of system platforms
adaptation to customer/type specific demands (design,quality, connections, integration into vehicle)
Problem solving
Characteristics of Development Processes
When designing development processes the fact has to be taken into account that these processes can be fundamentally different. So different design approaches are required.
During the preliminary development it is the aim to study functional concepts. Details such as squeaking hinges are not important in this phase. An example for a typical question is: Does the engine work at -40°C at all?
Afterwards the functional concepts of the preliminary development are detailed and handled during the system development. For example the details such as the surface finish.
Finally the development at the customer adjusts the solution of the system development to the demands of specific orders (e.g. extra-features).
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 15
Structuring the Extent of Development Phases
development
phase
project frontend
styling modelmile
ston
e pl
an o
fsy
stem
sup
plie
r
service range
objects, services
start request
target catalogue
provide specification sheet
bumper module mounting structure front hood lock radiator module radiator cowling
rough concept rough concept rough concept
concept elaboration concept elaboration concept elaboration check documents concept elaboration
concept elaboration
schedule/costs projection, performance indicators
Structuring the Extent of Development Phases
One method of shortening the development time possible is to divide the whole product into different modules, so that they can be developed simultaneously. The development process should be structured in order to run smoothly. Unnecessary loops should be avoided. The transparency of data is of essential importance.
Milestone plans help to coordinate parallel activities within the development process.
additional literature: Betriebshütte, Kap 6.4.1 Ablauforganisation
Betriebshütte, 7-132, Absatz PNEP
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 16
SE Team
module team
system supplier
module team
OEM
decision makers
OEM
decision makers
team leaderR&Dsales
quality management
purchase
module assembly planning
quality management team leader purchasedevelopmentpreparation of production
additional
module teamsif requiredjour fixe
representative OEM R&Dteam leadermodule team
OEM
team leadermodule team
system suppliers
responsible system supplier
responsiblesystemsupplier
team leadermodule team
systemsuppliers
CPL(if required)representative
componentsupplier
(if required)
compo-nent
A...
compo-nent
B
CPL CPL CPL
coordination if required
project staffofficemethodscoachingIT
Legend:R&DCPLITOEM
Research and DevelopmentComponent Project LeaderInformation TechnologyOriginal Equipment Manufacturer communication
SE Team
When performing SE, complex tasks such as the development of a new car body comprising design and techniques must be processed with regard to the time and with the aim of finally achieving a product. The large number of co-workers involved causes highly complex coordination processes.
This is why today companies provide resources to SE-teams, e.g. they erect own houses used by SE teams, where whole project teams stay in close contact during the course of a project, which affects the communication very positively .
Regarding the complexity there two vital preconditions for SE:
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• Clear decision structures must be created on the basis of responsibility, power and competence. The decision makers should be able as well as allowed to decide!
• Access to the complete range of data must be granted to the whole team. 100% of transparency in terms of data and results must be assured by means of accurate data preparation.
additional literature: Simultaneous Engineering, Kap. 2.4 Organisationsstrukturen
Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 17
Customer-oriented Sales Organization through Key-Account-Management
customer 1
customer 2
customer X
product 1 product 2 product nkey account 1
key account 2
key account n
Tasks of the “key account manger”:
scout for his company
problem solver for the customer
elaboration of solutions in an interdisciplinary team (from product developer to controller)
recognize and disarm weak points in the manufacturer-customer-relationship
determine not only product, but also service quality
Customer-oriented Sales Organization through Key-Account-Management
So-called Key-Account-Managers provide great advantages for the decision management of a company. They project their own technical abilities onto the customer, acting as intermediaries between manufacturer and customer.
Advantage of the customer: He requires only one contact person, who receipts his orders and desires, directed them to the right person within the company and informs the customer about the progresses.
Advantage of the company: Better coordination of communication to the customer and reduction of redundancies.
The bundling of customer-related activities at a Key-Account-Manager is a precondition for clear decision structures. It provides the required flexibility, which means nothing else but well-ordered quickness.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 18
Customer Relation Matrix
Her
r Kra
mer
Her
r Mül
ler
Her
r Sch
mid
tH
err R
einh
artz
Frau
Bec
ker
Frau
Hol
leH
err M
eyer
Her
r Fra
nkH
err K
üppe
rH
err J
anse
nFr
au W
eber
Frau
Mai
sen
Herr AaltoHerr NiehausHerr ClassenHerr DickHerr EbertHerr WalterFrau BlitzFrau DonnerHerr Zorn
Instrument for the evaluation
of staff-level inter-company
relationships
Legend:
never seen
he knows him butnot both-ways
they know each other
they work together
they sometimes havea beer together
development sales dept.
supplier
customer(OEM)
sale
s de
pt.
d
evel
opm
ent
Customer-Relation-Matrix
Cultivation of relationships is another part of a company‘s activities. The analysis of “Who was involved in the awarding of a contract on the customer‘s side?” as well as “Who knows the involved persons how well on the manufacturer‘s side?” is a good opportunity to learn from the loss of a contract. By listing these relationships, you get the Customer-Relation-Matrix.
The relationships to the decision-makers of the customer during all phases of the awarding process can be analysed and identified. If there are none or few, efforts have to be made to install them.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 19
Use of Virtual Engineering in the Automotive Industry
Benefits:reduction of the number of physical prototypes
reduction of developmenttimes and costs
control of changes
Strategy:physical prototypes only on the basis of digital prototypes!
degr
ee o
f fre
edom
for d
evel
opm
ent
time
Vision:The first car is sold!*
conceptdesign
product andprocess
development
tool makingmanufacturing and assembly
Δt
VirtualEngineering
* source: Audi
Notes:
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 20
Recommendations: Human Being
motivation
responsibility
training
guidance
self-inspectionwhite-collar workers also
have to work in the production for 1-2 days per year
flexibleworking hours
financial bonus for successful contributions to the
suggestion box
Recommendations: Human Being
SE does not only involve machines but primarily human beings!
In order to make people work well, it is important to motivate them, to place the responsibility for actions on them, to train them well and to guide them properly. Innovation only evolves if the possibility to innovate, the ability to innovate and the willingness to innovate occur at the same time. It must not be forgotten that consultancy and discussion are important aspects of leadership.
For example, responsibility is placed on the workers by self-inspection. Flexible working hours help the workers to maintain a certain scope for developments in their lives.
It can be a good idea to make white-collar workers work in production in order to facilitate their understanding of external problems and to find completely new solution approaches.
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Lecture 10
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 21
Glossary of the lecture (I/III)
Simultaneous Engineering (SE) (synonymic: Concurrent engineering (CE))
Innovation Technological product and process (TPP) innovations comprise implemented technologically new products and processes and significant technological improvements in products and processes. A TPP innovation has been implemented if it has been introduced on the market (product innovation) or used within a production process (process innovation). TPP innovations involve a series of scientific, technological, organisational, financial and commercial activities. The TPP innovating firm is one that has implemented technologically new or significantly technologically improved products or processes during the period under review.
(source: Oslo Manual, second edition, 1997, www.oecd.org)
Simultaneous Engineering deals with an integrated and time-parallelised execution of the product and process design with a view to:
- shortening the period from the product idea up to the introduction into the market (time-to-market),
- reducing of the development and manufacturing cost and
- an improvement of the product quality.
The optimisation of organisational interfaces is reached by an horizontal and a vertical task integration..
- horizontal: Combination of task along the process chain
- vertical: Completion of planning acknowledge by using operators know-how.
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 22
Glossary of the lecture (II/III)
Product innovation A technologically new product is a product whose technological characteristics or intended uses differ significantly from those of previously produced products. Such innovations can involve radically new technologies, can be based on combining existing technologies in new uses, or can be derived from the use of new knowledge.
A technologically improved product is an existing product whose performance has been significantly enhanced or upgraded. A simple product may be improved (in terms of better performance or lower cost) through use of higher-performance components or materials, or a complex product which consists of a number of integrated technical sub-systems may be improved by partial changes to one of the sub-systems.
(source: Oslo Manual, second edition, 1997, www.oecd.org)
Process innovation Technological process innovation is the adoption of technologically new or significantly improved production methods, including methods of product delivery. These methods may involve changes in equipment, or production organisation, or a combination of these changes, and may be derived from the use of new knowledge. The methods may be intended to produce or deliver technologically new or improved products, which cannot be produced or delivered using conventional production methods, or essentially to increase the production or delivery efficiency of existing products.
(source: Oslo Manual, second edition, 1997, www.oecd.org)
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 23
Glossary of the lecture (III/III)
Key-account-management sub-range of customer marketing handling the care of major customers predominantly. Attributes of this care are a customer related attitude, a sophisticated way of processing, special form of organisation and special work methods/techniques. The primary reason of installation is creating a platform which affords growth in the markets. This contains the long-termed extension of business connections to "familiar customers", the acquisition of prospects and securing of local marketability.
Production Management II (Prof. Schuh)
Product Lifecycle Management III - Simultaneous Engineering
WZL©
Page 24
Additional literature to the lecture
Eversheim, W.; Bochtler, W.; Laufenberg, L.: Simultaneous Engineering. Springer-Verlag,1995.
Simultaneous Engineering
Eversheim, W.: Prozessorientierte Unternehmensorganisation, 2. Auflage. Springer-Verlag, 1996.
Prozessorientierte Unternehmensorganisation
VDI-Richtlinie 2247, Qualitätsmanagement in der Produktentwicklung. VDI Gesellschaft Entwicklung, Konstruktion, Vertrieb, 1994
VDI-Richtlinie 2247
Bleicher, K.: Das Konzept integriertes Management aus St. Galler Management –Konzept, Band 1. Campus-Verlag, 2001
Das Konzept integriertes Management
Eversheim, W.; Schuh, G.: Betriebshütte, Produktion und Management, 7. Auflage. Springer-Verlag, 1996
Betriebshütte, Produktion und Management