Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
A CASE STUDY OF ACCELERATED PRODUCT DEVELOPMENT
by
CHRISTINA MAHLOMPHO NOKUJABULA NCHAPHA
DISSERTATION
submitted in partial fulfilment of the requirements for the degree
of
MAGISTER IN PHILOSOPHIAE
in
ENGINEERING MANAGEMENT
in the
FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT
at the
UNIVERSITY OF JOHANNESBURG
SUPERVISOR PROFESSOR L. PRETORIUS
Johannesburg July 2005
C. N. Nchapha Page 1 29/07/2005
ACKNOWLEDGEMENTS
I am grateful to the Boeing Company which provided information crucial to finish my research. I am mostly grateful to Isaac Nkama and William. H. A. Knight Jr., of Boeing Africa, who were instrumental in getting this information.
To Professor Leon Pretorius who guided and supervised me throughout this exercise I am most grateful.
To my dear husband - Katleho, who has always been supportive and to my beloved two sons - Hlompho and Lebakae, I am eternally grateful.
Last but not least, to the rest of my family
I thank you all.
C. N. Nchapha Page 2 29/07/2005
DECLARATION
I declare that this research project is my own, unaided work. It is submitted in
partial fulfilment of the requirements of the degree of Master of Philosophy in
Engineering Management, University of Johannesburg. It has not been
submitted before for any degree or examination in any other university.
C. N. Nchapha Page 3 29/07/2005
TABLE OF CONTENTS
ABSTRACT 9
Chapter 1 INTRODUCTION
1.1 Problem Statement 10
1.2 Research Objective 11
1.3 Research Design 12
Chapter 2 NEW PRODUCT DEVELOPMENT
2.1 Introduction 14
2.2 Human-centred Product Development 15
2.3 Product Development Process 16
2.4 Improvement of Product Development Process 21
2.5 Advantages of Early Launch 24
2.6 Disadvantages of Delayed Market Entry 24
2.7 Summary 26
Chapter 3 CONCURRENT ENGINEERING
3.1 Introduction 28
3.2 Cross-Functional Teams 32
3.3 Effective Management 36
3.4 Technology 39
3.5 Summary 40
Chapter 4 RESEARCH METHODOLOGY
4.1 Introduction 42
4.2 Purpose of Evaluation 0 42
4.3 Research Method 43
4.4 Case Study 44
4.5 Questionnaire Development 46
4.6 Summary 48
C. N. Nchipha Page 4 29/07/2005
Chapter . 5 ANALYSIS AND INTERPRETATION OF RESULTS
5.1 Introduction 49
5.2 Results and Feedback from the Questionnaire 50
5.3 Analysis of Results 53
5.4 Summary of Research Findings 58
Chapter 6 CONCLUSION AND RECOMMENDATIONS
6.1 Conclusion
61
6.2 Recommendations
64
BIBLIOGRAPHY
APPENDICES
Appendix Al : Company Assessment Questionnaire
Appendix A2 Answered Company Assessment Questionnaire
Appendix B: The Methods Matrix
Appendix C: The Dimension Map
C. N. Nchapha Page 5 29/07/2005
LIST OF ABBREVIATIONS
APD Accelerated Product Development
CAD Computer Aided Design
CAM Computer Aided Manufacturing
CATIA Computer Aided Three-Dimensional Interactive Applications
CE Concurrent Engineering
CIM Computer Integrated Manufacturing
DBT Design Build Team
DFM Design for Manufacturing
IPT Integrated Product Team
MLT Manufacturing Lead Time
PDP Product Development Process
PDT Product Development Team
QFD Quality Function Deployment
C. N. Nchapha Page 6 29/07/2005
LIST OF FIGURES
Figure 2.1 Product Development Process
Figure 2.2 Rapid Market Development - Sales and Market
Figure 2.3 Rapid Market Development — Return on Investment
Figure 2.4 Rapid Market Development — Multiple Projects
Figure 2.5 Revenue Loss due to Delayed Market Entry
Figure 2.6 Revenue Loss Every Month of Delayed Product
Figure 3.1 Concurrent Engineering Model
Figure 3.2 Sequential Versus Concurrent Product Development
Figure 3.3 Cross-Functional Design Teams
Figure 5.1 Dimension Map
C. N. Nchapha Page 7 29/07/2005
LIST OF TABLES
Table 3.1 Factors Facilitating Concurrent Engineering
Table 3.2 Traits Associated with Effective Leadership
Table 5.1 Results Gathered Using the Company Assessment Questionnaire
Table 5.2 Results Gathered Using the Methods Matrix
C. N. Nchapha Page 8 29/07/2005
ABSTRACT
Product development is very important to the survival of an engineering
organisation. It therefore needs to be carefully managed and completed
within planned time and allocated resources. The main focus in this
dissertation is therefore investigating how time could be reduced in the
product development process.
• Customers are not always patient enough to wait for the "best" products
that are still being developed; they want products immediately and would
therefore choose the "next best" products available. Some customers are
willing to pay high prices to get exactly what they need as soon as
possible.
This study looks at how to accelerate the product development process
without sacrificing quality and product performance. The study also
investigates the case of development of a Boeing 777 commercial aircraft
and contrasts the Boeing product development process against the
product development theory. Boeing 777 is a globally well known
commercial aircraft that was designed in the record time. Investigating the
Boeing 777 product development process will provide good indicators of
approaches that are currently most applicable in the real world.
C. N. Nchapha Page 9 29/07/2005
Chapter 1: Introduction and Research Proposal
1.1. PROBLEM STATEMENT
The user needs are ever-changing at a rapid pace and hence it is imperative
for an engineering company to be able to react rapidly, effectively and
responsively. The challenge of product development is that a long
development time may result in company's losing markets to competitors;
changing technology and most of all customer requirements may change
during the development phase thus forcing a change to products resulting in
cost overruns. Therefore a company must be able to reduce products' time to
market.
South Africa has just joined the global village after years of isolation. This
puts pressure on performance of engineering companies in the country. In the
global world it is even more challenging to develop, produce and put products
on the market rapidly and before the competition. It is the author's assertion
that the best way of judging the most appropriate theories and technologies to
assist in rapid and improvement of product development is to assess the
practices of a leading global companies e.g. Boeing Company.
Time is a resource that cannot be replaced if wasted; once spent it cannot be
recovered. According to George Stalk Jr. of Boston Consulting Group, the .
C. N. Nchapha Page 10 29/07/2005
traditional paradigm for corporate success was to provide the most value for
the lowest cost [3]. The new paradigm is to provide the most value for the
lowest cost in the least amount of time. The business' success will be the
result of understanding customer needs, developing products that meet those
needs and bringing those products to markets as soon as possible at a fair
value. Customer needs, technology, time and the competitive environment
are not constant, they keep changing. This imbalance forces the product
development process to continue changing.
Failure to monitor time in the product development process may lead to
product failure. Organisations and customers want product success, and the
key to success is choosing the best products to develop at the right time. In
this context best products are products that satisfy customer need i.e. easy to
use, safe and reliable, meet produ ict specifications and quality requirements.
1.2. RESEARCH OBJECTIVE
The product development process is full of challenges. For an example, a
slower product development process may lead to lost market and changing
customer needs. On the other hand accelerated product development may
lead to increased risk of mistakes and failure of internal processes coping
with the faster development requirements. It is therefore crucial to balance
time, quality and cost.
C. N. Nchapha Page 11 29/07/2005
The objective of this study is to determine the correct way of balancing the
following three: quality of the product, the right cost and the right time. To
achieve this objective the author examined how the Boeing Company, as an
example of a global company, balanced these three issues when producing
its Boeing 777 commercial aircraft. Boeing 777 is the plane that was
engineered in the shortest time relative to all planes engineered before it, at
the cost way below budget and it is a high quality product [25].
The author also investigates why increasing the speed of the product
development process is important and how it can be achieved without
necessarily sacrificing quality or increasing costs. There are numerous ways
to achieve accelerated product development, but the focus of this dissertation
is on the use of concurrent engineering.
1.3. RESEARCH APPROACH
This research document is divided into six chapters. The first chapter introduces
the research problem and objective of this study. The second chapter reviews the
theory of new product development. It looks at what product development is all
about. This study reviews the traditional product development process and
contrasts it with the customer focused product development process. The third
chapter discusses a detailed literature review on concurrent engineering and its
enabling technology. It addresses at the basic tenets and goals of concurrent
engineering. It reviews how to properly implement concurrent engineering. This
C. N. Nchapha Page 12 29/07/2005
chapter also looks at cross-functional teams and how they benefit the product
development process. The procedures and methods followed to investigate the
problem are dealt with in chapter 4. Chapter 5 examines analyses and interprets
the results collected in the preceding chapter. In addition, the summary of results
is presented. Some concluding remarks are made, applicable recommendations
formulated and recommendations for future research stated in the last chapter.
C. N. Nchapha Page 13 29/07/2005
Chapter 2: New Product Development
2.1. INTRODUCTION
The product development process is a challenging and difficult task, but if
managed well it can accelerate the development of any product. It should be
implemented only when sound decisions and plans have been made. A well-
managed product development process should result in a product that is
developed in the shortest period of time and still have the greatest benefit at
the lowest cost. According to Steven Eppinger and Karl Ulrich, the product
development process is a sequence of steps that transforms a set of inputs
into a set of outputs [6]. It turns an opportunity into a company's profits.
Products are developed to meet customer needs. Products should be
developed when there is:
A market demand;
Special customer request;
Business need;
Technological advance;
Legal requirements.
Before products can be developed, every proposal is analysed in terms of
profits and risks. Product proposals with the greatest return and the lowest
risk are typically selected for development. There will always be an element of
C. N. Nchapha Page 14 29/07/2005
risk in product development, but organisations that are willing to take a
calculated chance stand to be successful.
Successful global companies focus on reducing the development period [15].
To achieve this companies involve the right personnel, as time cannot be
wasted through training of unskilled personnel. They also view and continually
improve their production development process to make sure that there is
control of resources and that the products are of high quality.
2.2. HUMAN-CENTRED PRODUCT DEVELOPMENT
According to Lorsch and Lawrence, engineers are overenthusiastic about the
technical improvements their ideas offer and insufficiently responsive to what
the market wants and is willing to pay for [14]. Technology alone can no
longer drive product development, but with the inputs from customers
organisations can develop high quality products faster, more efficiently and
more effectively than competition. Human-centred product development [11]
is a process of product development that starts with users and their needs
rather than with technology. At its core, human-centred product development
requires developers who understand people and the tasks they wish to
achieve. It starts with a multidisciplinary team that includes representatives
from marketing, technology, and user experience. The goal is to understand
the users' true needs and what they care about. Then the drive is to compile,
refine, and analyze the observations to determine what the product might be,
C. N. Nchapha Page 15 29/07/2005
what role it would play, what actions it should perform.. To understand the
users' true needs one has to go beyond the specifics of the product to
understand how it is to be used in the full context of a complete activity.
2.3. PRODUCT DEVELOPMENT PROCESS: THREE PHASES
Product development is a process that begins with the identification of a need
and ends with a manufactured product that is accepted by the user. Stoll
argues that "the process proceeds from the abstract to the concrete [23]." The
product development process can be divided into three main phases, namely:
Research and Planning Phase;
Design Phase; and
Production and Support Phase
2.3.1. Research and Planning Phase
For the product development to occur, a business must have ideas for
new or improved products. These come from a variety of sources;
research and development, employees, competitors and customers.
Marketing tap this source of ideas by using focus groups, surveys and
analysis of buying patterns. The following steps or activities are typically
executed [15]:
Gathering the customer requirements
Preparing the preliminary product specifications
Assessing the primary alternatives and the feasibility of each
alternative
C. N. Nchapha Page 16 29/07/2005
Product design, development, engineering, manufacturing, sourcing
and distribution strategy.
Developing the resources required and project schedule
Final preparation of product plan.
Figure 2.1 shows the product development process [11]. The research and
planning phase combines the inception or planning and pre-development or
concept development processes. It begins with the corporate strategy and
includes assessment of technology developments and market objectives. The
need of the target market are identified, alternative product concepts are
generated and tested.
C. N. Nchapha Page 17 29/07/2005
Inception
Pre-development
New Product Opportunity
IF Project field
Need Identification
Project specification
Research and Planning Phase Idea Generation
Screened ideas
Feasibility Assessment
Project definition
roject Plannin
Specification & schedule
Creation
Development
1 Design Phase
Concept
Concept definition
Design
Detailed design
Prototype
Testing
Design verification
Development
Design definition
Modelling
Realisation Post-development Product Preparation
Pilot build
Product Introduction
1
Manufacture
Production and Support Phase Distribution
Project launch
Operation
Project feedback
Evaluation
Figure 2.1: The new product development process [11]
C. N. Nchapha Page 18 29/07/2005
2.3.2. Design Phase
A clear mission statement which specifies the target group and business
goal should be in place. Alternative product concepts are generated and
evaluated. Concepts are selected for further modification. The design
process begins once the most appropriate concepts have been selected
and goes on to the building of the prototypes and the mock-ups; through
to testing and revision of prototypes. The design phase follows the
following iterative and overlapping activities:
Concept development and definition;
Design;
Design definition;
Building of physical mock-ups and prototypes;
Testing and design verification.
Figure 2.1 depicts the second phase as the design phase. This phase
involves the creation and development processes. It includes the system-
level design which is the definition of the product architecture and
decomposition of the product into subsystems and components; and the
detailed design which is the complete specification of the geometry,
materials and the tolerances of all unique parts and the identification of all
standard parts. This phase also involves the testing and refinement
process which involves the construction and evaluation of multiple
prototypes.
C. N. Nchapha Page 19 29/07/2005
2.3.3. Production and Support Phase
In this phase the production process is finalised and implemented. The
pilot product is built. The purpose of building a pilot product is to work out
the remaining problems in the production process, and carefully evaluate
them to check for any faults. The steps from building a pilot product to full
production are usually implemented gradually to familiarise the workforce
with production of the new product and to learn about the performance of
that product. Once the pilot production has been completed, marketing
takes control in preparation for the launch of the product and coordinates
promotion before final release.
The final phase is the production and support phase. It includes the
production ramp-up process, which is building of the pilot in order to train
the workforce and to work out any remaining problems in the production
processes. These pilot products could be distributed to preferred
customers for evaluation and identification of remaining flaws. The product
can then be launched and become available for widespread distribution.
Finally as part of a continuous incremental product improvement,
evaluation of the product takes place to check whether the productivity
goals and objectives have been met. Customer feedback is the most
effective way for organisations to understand the market. It can be used to
make rapid modifications in the product offering and to make
C. N. Nchapha Page 20 29/07/2005
improvements in future products. A clear example is the use of customer
feedback gathered from development and use of the B777 aircraft to
develop a new Boeing 7E7.
2.4. IMPROVEMENT OF PRODUCT DEVELOPMENT PROCESS
New product development success can be found in businesses that
continually improve their product development process. The advantages of
improving the product development process (PDP) are as follows: [20]
Faster product development, as opportunities are found to adapt the
development process to the specific needs of a project and to overlap
activities.
Higher-value products, because the link between the customer and the
feature set is shortened and strengthened over time.
Lower-cost products, as manufacturability decisions are made ever earlier
in the product design phase.
More products per rand, because superfluous, non-value-adding activities
are rooted out of the process.
More responsiveness to turbulence in markets, technologies and the
regulatory environment, due to a process that is built to continually adapt
to change.
Having the right product for sale and having a very effective PDP are some
of the greatest strategic advantages a company can have. The following
section discovers how PDP improvement can be done. Product development
C. N. Nchapha Page 21 29/07/2005
process improvement may be summarized in the five basic steps listed
below:
Observe and understand your current process;
Document the current process for future reference;
Critically evaluate the current process and find ways for improving the
process;
Implement the improvement:
There must be a plan of action
People should be assigned responsibilities
Proper follow-up must be made to check that the new process is
used. The improved process must indicate a potential cost savings or
an improved quality that is at least large enough to pay for its cost.
After a certain period, the new process should be evaluated to check
whether it is functioning as intended.
2.5.ADVANTAGES OF EARLY LAUNCH
The product can yield a reasonable profit over its life cycle if it is successful.
Figure 2.2 shows that an early product launch can result in increased market
share and sales [11]. The biggest share of market can go to the business first
introducing new . products.
C. N. Nchapha Page 22 29/07/2005
Sales
Extra period of mature sales
Increased market share
Early launch
Figure 2.2: Rapid Market Development — Sales and Market share [11]
A short manufacturing lead time (MLT) means less manufacturing time and
effort and therefore less cost. The shorter the MLT, the sooner the product
can be sold. A company can have an early repayment of investment as
illustrated by figure 2.3 below.
Time saved by early launch
Eavber repayment of investment
Figure 2.3: Rapid Market Development — Return on Investment [11]
Page 23 29/07/2005 C. N. Nchapha
A product that has a very long development period and low total cost may not
be desirable. On the other hand, accelerated product development may be
costly. It is therefore important to balance costs and time.
By speeding up product development, organizations free their resources for
other projects. Products that are developed and introduced in a timely manner
may result in spare (extra) time which can be used to design, develop and
launch other new products. This increases products on the market, thus
increase the income from the sales as can be inferred from figure 2.4 [11]
r4
Original product Second
product
Figure 2.4: Rapid Market Development - Multiple Projects [11]
2.6. DISADVANTAGES OF DELAYED MARKET ENTRY
Every market has an introduction phase, growth phase, maturity phase and a
decline phase. The aim is to introduce a product as early as possible in the
C. N. Nchapha Page 24 29/07/2005
market growth phase. Figure 2.5 shows the loss a company can suffer by
bringing a product late in the market.
Figure 2.5: Revenue Loss Due to Delayed Market Entry [2]
Companies can use the following formula to calculate the percentage revenue
lost due to market delays [2].
d (3w — d) 2w2
Where d = delay
(2.1)
w = market window (12 months in this example)
Month Late Revenue Lost 1 12% 2 24% 3 34%
4 , 44% 5 54%
Table 2.1: Percentage Revenue Lost [2]
C. N. Nchapha
Page 25
29/07/2005
2 3
Time (Months)
1 5
60%
50% U)
_1
•
40%
g
•
30%
te 20%
10%
0%
I 0 Series1
From table 2.1 it can be seen that 54% of revenue may be lost due to a
delay of 5 months in market entry.
Figure 2.6: Revenue Loss every Month
Figure 2.6 shows revenue loss for every month the product is late. Quality,
cost and lead time are three major determinants of market share and profit.
These three attributes must be balanced. Consequences of late market entry
are big. Every month the company loses the potential profits.
2.7. SUMMARY
Increasing the speed of the product development process can enable the
business to develop many more new products than it did before. According to
Carter and Baker [3], businesses need to be able to respond rapidly, flexibly
and imaginatively as the pace of events are getting faster and faster and
opportunities opening up. Businesses must view product development
processes as their competitive strength and in this view; they can invest in
C. N. Nchapha Page 26 29/07/2005
continually sharpening their process to provide a competitive edge as
technology, customer needs and business needs change.
It should however be noted that if each functional area works separately, that
is in silos, the production development process would be lengthened, thus
losing the competitive edge the organisation may have over the competition.
It is very important for different functional areas to work harmoniously
together. The next chapter focuses on concurrent engineering.
C. N. Nchapha Page 27 29/07/2005
Chapter 3: CONCURRENT ENGINEERING
INTRODUCTION
Concurrent Engineering is a method that can be used to help achieve a rapid
product development process [23]. Susan Carlson and Natasha Ter-
Minassian define concurrent engineering as a design philosophy that seeks to
improve the quality and usability of products, improve customer satisfaction,
reduce costs, and ease the transition of a new product from design to
manufacturing [26]. It brings many relevant skills, working in parallel to
develop a new product. Participants from functions as marketing,
engineering, production, purchasing and quality control work together as a
team. They look for ways to develop a product that serves customers' needs,
is easier or less costly to manufacture and will have desirable quality levels.
Many businesses now recommend concurrent engineering and try to
understand and follow this new approach of doing a number of activities
simultaneously during product development. Figure 3.1 shows concurrent
engineering model that represents collaborative multifunctional team with the
unity of purpose.
C. N. Nchapha Page 28 29/07/2005
Market Analysis
Product Design
Sales & Distribution
Manufacturing
Purchasing
Figure 3.1: The Concurrent Engineering Model [23]
One way of building products better (increasing value), cheaper (reducing
costs) and faster (reducing time) is through concurrent engineering. It is
therefore important for organizations to adopt an appropriate structure and
culture to enable concurrent engineering to take place. The term "Concurrent
Engineering" can have different scope and meaning in different industries.
The author's focus will be on internal and external partners working as a solid
team, from product conception through to completion of the development.
These teams work in parallel instead of in series, thus shortening the Product
Development Process cycle. The main reason for concurrent engineering is
to reduce time to market while improving quality, performance and reducing
life cycle cost.
The traditional sequential approach also known as the "over the wall"
approach has been used for a longer time in the development of products
C. N. Nchapha Page 29 29/07/2005
[22]. This series of steps has been found to cause several faults on the final
products and to greatly increase time needed to successfully produce a new
product. Typically the marketing department identifies the need and throws
the idea for a new or improved product over the wall to the Design-
Engineering department. After the engineering staff has completed their
work, it then passes the design to manufacturing which would try to produce
the product. Only rarely does the product move into production without
design changes; this causes the product to move from design to
manufacturing several times before the final product is manufactured within
established quality levels. This method of designing does not encourage the
interaction between functional departments within the company, instead it
causes the "us versus them" mentality [22].
As a means to overcome these faults and delays, an improved approach
known as concurrent engineering was introduced. This approach focuses
attention on product development and production as the whole rather than the
individual segments. Its emphasis is the on going development process in
parallel with the development of the production processes.
C. N. Nchapha Page 30 29/07/2005
Requirements definition
Product definition •
Concept Embodiment Detail
Production and distribution
Process definition
Errors, changes and corrections
Requirements IP-definition
1
Errors, changes
i and corrections
Product definition
Concept
Embodiment
Detail
.101
Process definition
4
Production and distribution
3.0
)01.4.1(
CE life cycle time Time saved
Figure 3.2 Sequential vs. Concurrent Product Development [21
Figure 3.2 illustrates clearly that the use of concurrent engineering reduces
development period. Development teams are cross-functional teams. There
is a tendency of people forgetting from which function the others come from
and instead rely on each other's individual expertise. A concise summary of
the basics of the concurrent engineering is provided in the following
subsections
3.1.1. Basic Tenets of Concurrent Engineering
Doing things simultaneously
Focusing on the process
C. N. Nchapha Page 31 29/07/2005
Converting hierarchical organisations to teams
3.1.2. Basic Goals of Concurrent Engineering
Dramatic improvements in time to market and costs
Improvements to product quality and performance
Do more with less
3.1.3. Implementing Concurrent Engineering
The following steps may be followed in implementing concurrent
engineering:
Establish unified goals and a clear business mission;
Analyse the market and know the customer
Develop a detailed plan early in the project
Break the project into its natural phases and set milestones
Suppress individualism and foster a team concept
Transfer technology between individuals and departments
Establish and cultivate cross-functional integration and collaboration
Complete tasks in parallel as shown in figure 3.2
3.2. CROSS-FUNCTIONAL TEAMS
Thomas Foster defines concurrent engineering as "the simultaneous
performance of product design and process design. Typically, concurrent
engineering involves the formation of cross-functional teams. This allows
engineers and managers of different disciplines to work together
simultaneously in developing product and process design." [8]
C. N. Nchapha Page 32 29/07/2005
Rapid product development can be achieved if organisations have effective
management and leadership in place, use enabling technologies and having
skilled development teams. Accelerated product development requires the
input of specialists from different functions. An effective team does not
happen automatically, but needs real effort from management. These teams
need to be built up by combining people with complementary talents and to
be maintained by effective leaders and managers.
The organisation must be in a position to provide continuous training at all
levels in order to develop the kind of skills and knowledge needed for future
growth. Training is needed because people who don't know their work won't
know how to speed it up. Training increases an employee's self sufficiency.
As teams work together to push new products through production to market
they are able to produce high creativity that may not exist in a single
individual. A product team is formed by members from different functions.
Successful products depend upon exchange of knowledge between cross-
functional teams. Each function presents its views on the design thus saving
time as the design does not have to go serially from one function to the other.
Successful product development needs the input of specialists throughout
development life cycle. The use of different skills minimises changes, thus
reduces the time and costly corrections and greatly increases the speed at
C. N. Nchapha Page 33 29/07/2005
which products are brought to market. Decisions about product design are
quickly made by consensus of the development team members.
Team selection is critical to the success of any project [16]. Skilled personnel
can be able to deal with complexities of design that change as technology
changes. Beside their skills, these members must show full commitment that
will enable them to successfully finish what has been started. The contribution
of development teams should not be of technical knowledge only, but
interpersonal skills are essential. Each member should be willing to initiate,
seek information, compromise and recognise the contribution of others.
Figure 3.3 shows different team members' contributions at the beginning of
product design phase. All functions are represented and work together from
inception till the end of production. Development teams facilitate non-linear
interactions instead of series of over-the-wall interactions. Through proper
communication channels, teams are able to break these walls within the
organisation [23].
C. N. Nchapha Page 34 29/07/2005
Marketing 1. Marketing gathers customer needs to specify desired product
Industrial Design Product Engineering Manufacturing
2. Industrial design converts need into
product concept 3. Marketing evaluate concept and cha design specs. 5a. Marketing tests prototypes until satisfied
4.Engineering converts specs into prototypes
6. Engineering revises design to satisfy customer and manufacturing needs
5b.M an ufactu ri ng suggests design changes to better match process capability
Functional Boundaries
Figure 3.3 Cross-functional Design Teams [22]
7. Manufacturing creates man ufactu rable version using revised design specs.
Factors Benefit Early customer involvement •
•
•
Capture customer needs Integrate customer needs prior to design Clarify fuzzy end
Use of available design •
•
Use existing components and systems Reduce testing and validation
• Facilitate system integration Design build teams • Facilitate cross functional
coordination • Enhance process ownership • Reduce failure and rework • Initiate advance action to reduce lead
time Digital product definition • Provide a concurrent product
development environment • Minimize engineering changes • Use of intensive simulation tools • Support online working and
reworking
C. N. Nchapha
Page 35
29/07/2005
Balancing risks •
•
Modify new systems to eliminates possible failure Manage risks in critical systems
Service readiness • Train pilots and service engineers ahead of induction
• Create a pool of critical spares Controlling variants • Plan variants well in advance so as to
derive scope economies • Use design commonality
Table 3.1: Factors Facilitating Concurrent Engineering [19]
Table 3.1 summarises the number of approaches that facilitated the
concurrent engineering process as experienced by Boeing in development
of the Boeing 777.
3.3. EFFECTIVE MANAGEMENT AND LEADERSHIP
Effective management and leadership ensure that product development
objectives are met by monitoring and measuring progress, taking corrective
action when necessary. To facilitate accelerated development, managers will
prepare a plan that shows all tasks that need to be done in parallel and
sequential ways. He will also prepare budget and schedule, select
appropriate people to design products, to get to know the customer, to make
sure that the proper manufacturing facilities and suppliers are available when
needed.
"A popular definition of leadership is the ability to transform vision into results
[4]". The main objective for management is to maximise the value of the
organisation. Leaders and managers need to recognise and cope with ever
C. N. Nchapha Page 36 29/07/2005
changing technologies. These changes must be harnessed to produce
improved or new products. Management should be able to select the right
products to be developed and have the right people to design and
manufacture them.
The successful leader encourages working together to reduce product
development time. It is his/her responsibility to keep the product development
process on time, within budget, and up to specifications.
The responsibilities of an effective leader include [16]:
Maintaining direct contact with customers
Leading the team to achieve winning product concept
Having responsibility for specification, product concept, cost, and schedule
Having responsibility for ensuring that the product concept is accurately
translated into technical detail
Having frequent and direct communication with all stakeholders
The Leadership Traits
Personality Motivation Ability • High energy level • Socialised power • Interpersonal skills • Stress tolerance orientation • Cognitive skill • Self-confidence • Strong need for • Technical skill • Emotional maturity achievement • ' Persuasive skill • Integrity • Weak need of
affiliation
Table 3.2: Traits associated with effective leadership [23]
C. N. Nchapha Page 37 29/07/2005
A leader sets a good example by having a positive outlook, enthusiasm,
taking initiative and trusting people. An effective leader should have a strong
personality, which includes emotional maturity and integrity, as can be seen
from table 3.2. He is able to encourage individual thinking which makes
everyone on the team to present their views. He encourages interchange of
ideas; motivates and persuades employees to give full cooperation
irrespective of their personal clashes, and the team to focus on achieving the
common goals. Effective leaders know when to use logic, when to make a
concession and when to extract one. They are skilful in creating clarity out of
confusion, ambiguity and uncertainty. They do not become defensive when
others disagree with them. They learn to get along with many different
characters and try to incorporate mutual respect, openness and trust into their
leadership style.
Accelerated product development may be achieved when engineering
management and leadership is recognised and highly valued in
technologically based engineering companies. "A good engineering manager
is distinguished from other good managers by the fact that he simultaneously
uses an ability to apply engineering principles and a skill in organising and
directing resources, people and projects"[15]. He must be the facilitator and
have a reasonably high level of technical knowledge in order to be able to
deal with product development. In addition, he needs to be sufficiently well
C. N. Nchapha Page 38 29/07/2005
versed in the following topics; management, finance, marketing and
purchasing to be able to make right decisions.
3.4. TECHNOLOGY
New technologies are available and others are being developed, which if
properly applied, could speed up the product development. Managers must
remain alert to technological changes that give an opportunity to improve
products. The use of computers enables the products to be introduced
rapidly. It also enables product developers to reduce flaws on the designs.
Customers and teams are able to view models on computer and to offer
suggestions on changes to be made before further work could be done.
"Successful products must have designs that serve the function and that can
be manufactured satisfactorily and' economically [22]." Planning of design and
manufacturing is done concurrently on computers. It is for this reason, that
computer aided, design (CAD) and computer aided manufacturing (CAM) are
combined to make a totally integrated package. CAD is used to create
drawings and product models that assist in part designs, tool designs and
product specifications. These drawings and models are quickly and
accurately produced and they have higher quality than those traditionally
produced manually. The drawings on the computer can be easily modified to
meet necessary design requirements or changes. Potential problems can be
easily identified as designers can enlarge, reduce or rotate parts of drawings.
C. N. Nchapha Page 39 29/07/2005
Computer aided manufacturing is used to directly control the processing
equipment or materials handling equipment or any processing equipment that
indirectly support manufacturing operations. CAD/CAM integration is
supportive to concurrent engineering programs, and forms an important
component of CIM (computer integrated manufacturing)."CIM is a concept of
linking and coordinating a broad array of activities in a manufacturing
business through an integrated computer system [22]."
CAD/CAM data base stores all information, drawings, bills of materials,
routings and any other necessary data. The information is in principle
accessible to all functions and mixed discipline functions, thereby ensuring
coordinated use of the latest product definition.
3.5. SUMMARY
Concurrent engineering involves early and constant interaction between all
functions. Development activities overlap and are parallel thereby shortening
the development cycle. Concurrent engineering is best implemented by using
a team approach, effective management and leadership. The backbone of
concurrent engineering programs is effective team infrastructure. The
contribution of each member is crucial to success of the project. The team
that works towards a common goal and that functions as a single unit is more
likely to achieve better solutions. This team should be lead by a facilitator who
C. N. Nchapha Page 40 29/07/2005
is able to guide rather than direct. This leader must be able to maintain focus
from beginning of the project until its completion.
Product designers formerly had to build a mock-up to determine the exact
dimensions of a product and to identify any assembly problems that might
occur. Presently, they use computers to design products, thus reducing cost
of mock-ups and shortening development time.
If concurrent engineering is implemented correctly it can provide competitive
advantage, increase performance and quality, reduce development time,
lower production costs and produce products that are of higher utility and
value to the customer.
After understanding what the literature says about product development and
concurrent engineering, in the following chapter, the author discusses the
methodology and the procedure followed in investigating whether Boeing, as
an example of a leading engineering company adheres to the tenets of
concurrent engineering in its product development process.
C. N. Nchapha Page 41 29/07/2005
Chapter 4: RESEARCH METHODOLOGY AND DATA COLLECTION
4.1. INTRODUCTION
The literature review presented in chapters two and three was done to
assess other work done on concurrent engineering and product development.
This assisted the author to identify important issues relating to how some
businesses react to the challenges of new product development in the
increasingly competitive environment. This chapter focuses on the research
methodology and the data collection process for a case study on accelerated
product development and concurrent engineering.
4.2. PURPOSE OF EVALUATION
The study has been conducted because sequential product development is
no longer efficient. The new process, that is, concurrent engineering is
necessary because of product complexity and increase of market demands.
The study investigated concurrent engineering concepts and how they were
applied to shorten the product development process in the case of
development of Boeing 777.
C. N. Nchapha Page 42 29/07/2005
4.3. METHODOLOGY
4.3.1. Use of interviews
The author has decided to use interviews in gathering data as this is a
case study. Only one company, Boeing, is being analysed in order to
understand the company's uniqueness and idiosyncrasy. Boeing is a
typical innovative engineering company that could use the tenets of
concurrent engineering in its product development process. Two members
of the senior management of Boeing in South Africa were interviewed in
order to grasp the company's vision and processes. Isaac Nkama,
Boeing's Director of Economic Affairs - Africa was interviewed to find the
company's vision and the management perspective of the company's
product development process. William H.A. Knight Jr., the company's
Director of Business Management was interviewed to find a clear
understanding of the company's product development process.
4.3.2. Use of Concurrent Engineering Assessment Tool
The author has decided to use the concurrent engineering assessment
tool that combines elements from other assessment tools, including the
Carnegie Mellon University Software Engineering Institute (SEI)
Assessment Questionnaire, the Department of Defence CALS/CE Task
Group For Electronic System Self Assessment, and the Mentor Graphics
Corporation Process Maturity Assessment Questionnaire [3]. This tool was
used because it helps to analyse the current product development
C. N. Nchapha Page 43 29/07/2005
environment; to suggest a vision for the concurrent engineering
environment that assists products to flourish; and what a company needs
to do to bring the concurrent engineering dimensions into balance.
This tool consists of the company assessment questionnaire, the methods
matrix, the dimension map and the priority roadmap. The author has not
used the priority roadmap as the focus of this research is on the current
state of Boeing's product development environment and not the
company's concurrent engineering vision yet to be implemented.
The company assessment questionnaire is used to assess where the
company stands in terms of the four key dimensions (organisation,
communication infrastructure, requirements and product development) in
concurrent engineering. The methods matrix assists in determining
dimension by dimension and approach by approach, the concurrent
engineering methods that Boeing needed to develop Boeing 777
successfully. The dimension map assists to see the variances between
where the company was and where it should have been in each
concurrent engineering dimension.
4.4. CASE STUDY
Boeing was chosen as the case study because it is one of the leading
manufacturing companies in the world. Boeing has been the leading
C. N. Nchapha Page 44 29/07/2005
commercial jetliners manufacturer for more than 40 years. Boeing's
production facility in Everett, Washington, is one of the major producers of
aircraft in the world market. In 1997, it merged with McDonnell Douglas to
form one company. The company has nearly 13000 commercial Jetliners in
service. It provides products and services to customers in 145 countries, and
continues to expand its product line and capabilities to meet emerging
customer needs. [25]
With the advent of globalisation, engineering companies are faced with
increasing challenge to produce high quality products faster and cost
efficiently. A good example would be production of information technology
and communication products like computers, cellular phones, etc. These
products have to meet increasingly complex and demanding needs of the
customers. There are five forces that continuously interact to disturb or
stabilise the environment in which engineering companies are doing
business, namely technology, tools, tasks, talent and time [18]. Boeing
manages these forces on a daily basis and is transforming them into
resources for product development. Its Boeing 777 jetliner meets the highest
standards of quality, was designed and developed in record time and the cost
was below budget.
Boeing was chosen in order to investigate how world class leading
engineering companies battle with the above mentioned challenges. This may
C. N. Nchapha Page 45 29/07/2005
give an understanding of how companies implement the theories of product
development. The emphasis is on concurrent engineering as a tool that would
assist engineers to meet these challenges.
4.5. QUESTIONNAIRE DEVELOPMENT
The questionnaire used here was taken from Donald E. Carter and Barbara
S. Bakers book Concurrent Engineering [3]. It is used to assess where the
company stands in terms of the current state of the company's product
development environment in relation to the four dimensions of concurrent
engineering, namely organisation, communication infrastructure,
requirements and product development.
4.5.1. Organisation
An organisation is made up of management and development teams.
Managers must create development teams and empower these teams
with authority and responsibility to make decisions. Managers also need to
support these teams with training, education and tools that allow the
company to adapt and meet each new challenge. Members of
development teams should be from every appropriate discipline. They
should allow a free exchange of information between traditionally separate
disciplines. They should also relish accepting responsibility and authority.
C. N. Nchapha Page 46 29/07/2005
4.5.2. Communication Infrastructure
Communication infrastructure consists of equipment and software
(system) that facilitates transfer of information throughout the company. It
has to link people, ideas, specifications, processes and feedback.
Relevant information from management, development teams, customers
and product development processes have to be accessible and available
to team members as they need it.
4.5.3. Requirements
Requirements are all product attributes that affect customer satisfaction. A
business has to convert customer needs upfront to the definitions,
specifications and product designs. Customer requirements are used to
measure quality and progress in every activity of product development.
4.5.4. Product Development
The product development dimension includes all processes that link the
activities or designing and building what requirements specify. The
development process must integrate all disciplines: the design process,
the development and use of component libraries, and the continuing
optimisation of the development process. The knowledge gained during
the concurrent product development must be captured to enhance the
process, thus creating the environment of continuous change and
improvement.
C. N. Nchapha Page 47 29/07/2005
4.6. Summary
A case study was done to investigate concurrent engineering concepts
and how they were applied to shorten the product development process
in the case of development of Boeing 777. Interviews were initially used in
gathering data. Two members of the senior management of Boeing in
South Africa were interviewed in order to grasp the company's vision and
processes. The concurrent engineering assessment tool that combines
the company assessment questionnaire, the methods matrix, the
dimension map and the priority roadmap was used to assess where
Boeing stands in terms of organisation, communication infrastructure,
requirements and product development. While the questionnaire was
filled by one manager, a number of employees were consulted and their
responses included in answering the questionnaire.
The reason for the case study was to find out how Boeing deals with the
five forces that continuously interact to disturb or stabilise the
environment in which engineering companies are doing business, namely
technology, tools, tasks, talent and time. The data gathered was analysed
in the following chapter.
C. N. Nchapha Page 48 29/07/2005
Chapter 5: ANALSYS AND INTERPRETATION OF RESULTS
5.1. INTRODUCTION
The results of the questionnaire are represented in a table format which
indicates all affirmative, negative and no answer responses to the
questionnaire. In addition, all yes responses are shown on the dimension map
by black dot. A summary of each category is given. The results of the
methods matrix are also represented in a table format. The respondent had to
read the descriptions across from each key factor and put 'X' against each
description whose methods were necessary for successful development of
Boeing 777.
Only one respondent, the Director of Business Management at Boeing Africa,
filled out the questionnaire. As earlier noted, the author has decided to
undertake a case study of Boeing as an example of a typical engineering
company.
C. N. Nchapha Page 49 29/07/2005
5.2. RESULTS AND FEEDBACK
5.2.1. Results and Feedback from the Questionnaire
The original and completed questionnaires are found in Appendix Al and
A2 respectively. Table 5.1 tabulates responses from the company
assessment questionnaire
Dimension Question Number of
questions
Number of "Yes"
responses
Number of "No"
responses
No Response
Organisation Team Integration
1— 4 4 4 0 0
Empowerment 5 —18 14 10 2 2 Automation Support
19 — 22 4 2 0 2
Communication Infrastructure
Product Management
23 — 30 8 8 0 0
Product Data 31 — 38 8 8 0 0 Feedback 39 — 42 4 4 0 0
Requirements Requirements Definition
43 — 50 8 8 0 0
Planning Methodology
51 — 54 4 4 0 0
Planning Perspective
55 — 58 4 3 0 1
Validation 59 — 62 4 4 0 0 Standards 63 — 66 4 4 0 0
Product Development
Component Engineering
67 — 70 4 4 0 0
Design Process
71 — 78 8 7 0 1
Optimisation 79 — 83 5 4 0 1 Total 83 83 76 2 7
Table 5.1: Results Gathered Using the Company Assessment Questionnaire
5.2.2. Results and Feedback from the Methods Matrix
The original methods matrix is found in Appendix B while responses are
shown here in Table 5.2
C. N. Nchapha Page 50 29/07/2005
The Methods Matrix
Key Factors Task Approach
Project Approach
Program Approach
Enterprise Approach
Organisation Team Integration X Empowerment X Training & Education X Automation Support X
Communication Infrastructure Product Management X X Product Data X X X Feedback X X X
Requirements Requirements Definition X X X Planning methodology X X Planning Perspective X X Validation X Standards X
Product Development Component Engineering X X X Design Process X X X X Optimisation X X X X
Table 5.2: The Results Gathered Using the Methods Matrix
The Dimension Map
The dimension map helps to see the variance between where the
company is and where it should be in each concurrent engineering
dimension [3]. Figure 5.1 is created by compiling the assessment data
from both the questionnaire and the methods matrix.
C. N. Nchapha Page 51 29/07/2005
Figure 5.1: The Dimension Map [3]
The questionnaire has 83 questions. The "yes" answers from the
questionnaire are transferred to the dimension map by blackening the
white dots under the corresponding question. All outermost blackened
dots are then connected. A circle is drawn where there is majority of
blackened dots.
C. N. Nchapha Page 52 29/07/2005
5.3. ANALYSIS OF RESULTS
5.3.1. Organisation Dimension
5.3.1.1. Team Integration (Questionl — 4)
The team integrates members from the range of stakeholders. These
members are from management, suppliers, manufacturing, purchasing,
customers, service and all the abilities. Requirements, specifications,
interdependencies and priorities of the product development are
understood by the enterprise team.
5.3.1.2. Empowerment (Question 5 - 18)
Customers, design teams and suppliers are involved in decisions
about product specifications. Greater authority and responsibility are
given to cross-functional teams. The teams select a leader from
amongst themselves, thus turf and territory are destroyed. Teams are
rewarded for both individual team member and the overall team
performances. This encourages team cohesion without compromising
individual creativity and innovation.
5.3.1.3. Automation Support (Question 19 - 22)
Synergism is encouraged and supported by top management. All
changes, agreements and contributions from affected engineering
disciplines are fully supported and integrated within the whole
enterprise. Documentation is strictly controlled because of government
regulation.
C. N. Nchapha Page 53 29/07/2005
From the dimension map it is clear that the organisation dimension is in
balance at the enterprise approach, as shown by the line joining all the
outermost dots being on the enterprise approach. This can be witnessed
from Table 5.2 which shows 'X's under the enterprise approach. This
means that Boeing organisation of its employees focuses on teams that
understand the product development process. Teams and individuals
were given authority to complete the tasks. Teams and individuals were
also supported with appropriate training and necessary tools to efficiently
complete their tasks. From the filled questionnaire it can be seen that most
questions have been answered positively especially questions dealing
with the enterprise approach.
5.3.2. Communication Infrastructure
5.3.2.1. Product Management (Question 23 — 30)
There is excellent and established use of computers with sophisticated
software to coordinate and facilitate fast and accurate flow of data.
Data is readily accessible and electronic mail is available to each team
member.
Computer networks were used to facilitate coordination among the 238
design teams. All teams were immediately notified when a design
change made by any team would have an impact on their task. As
problems were identified they were resolved before the manufacturing
C. N. Nchapha Page 54 29/07/2005
phase. CAD was used to link Boeing to all its suppliers and to track the
flow of all parts through the product process. They did not need to
concentrate on coordination as it was well done through the computer
information system.
5.3.2.2. Product Data and Feedback (Question 31 — 42)
Computer aided engineering (CAE) helps to link dispersed team
members. It also provides rapid communication that facilitates design
concepts and ideas to be analysed. All details are stored in a decision
database which is used for future reference.
From the dimension map, the filled questionnaire and the methods matrix
it can be seen that Boeing uses sophisticated communication
infrastructure that allows individuals and teams to access information and
manage employees, tasks, and the product development process.
5.3.3. Requirements
5.3.3.1. Requirements Definition (Question 43 — 50)
Customer expectations were determined and converted to established
documented customer requirements. Boeing conducted research
through its tour centre which was visited by approximately 110,000
visitors in one year. These visitors were passengers from all over the
world. These passengers were involved in design of the plane interior.
200 to 300 passengers took up the survey daily. All this information
C. N. Nchapha Page 55 29/07/2005
was statistically analysed and formed the basis of customer
requirements that were used to formulate upfront definitions,
specifications and designs of the product. These requirements were
made accessible to all team members in order to assist them with
planning, evaluation or creation of the product specifications.
5.3.3.2. Planning Methodoloay and Perspective (Question 51 — 58)
Tasks were performed in parallel by as much as 238 teams at one
point in time. Trade-offs were considered that might have changed the
product technology, design architecture, or development-to-
manufacturing process. Costs, functionality and supportability of the
product were regularly measured and checked.
5.3.3.3. Validation and Standards (Question 59 — 66)
Using the designs specifications, the CAD system helps to create a
digitised mock-up of the aircraft to address all customer requirements
and to eliminate the need for paper drawing and a physical model.
Each of the thousands' of components of B777 was first engineered
and tested in virtual space by means of three dimensional CAD
technologies to make sure that everything fits together. If components
did not fit or had to be modified because of changing customer needs,
they were redesigned on the computer. The result is that designing
and building the aircraft take much less time than usual as interlocking
parts can be designed at the same time rather than one at the time.
C. N. Nchapha Page 56 29/07/2005
From the filled questionnaire one can see that all questions were
answered positively, and from the methods matrix it can be evidenced
that the Boeing is adopting an enterprise approach to all key factors of
requirements except for validation which is at program approach.
Boeing accomplished this by having representatives of four B777
customers working side by side with Boeing designers and engineers
to ensure that their needs were incorporated in the design of the new
plane.
5.3.4. Product Development
5.3.4.1. Design Process and Component Engineering (67 — 78)
Emphasis was put on integrated, concurrent design of products and
their related processes. Data libraries, reviews and product
architectures were linked to decision support tool that assisted each
designer in making component selection. Effective and efficient
product development processes were optimised by distributing the
organisation's resources into design and process development. The
goal and objective was to optimise product and process improvement.
The B777 is the first airliner 100% designed using 3D solid modelling
technology. CATIA (computer-aided, three-dimensional interactive
application) is the software that was used. More than 2,200 CATIA
workstations networked to eight mainframe computing clusters
C. N. Nchapha Page 57 29/07/2005
requiring 3 Terabytes (3,000,000,000,000) of data to store the
information were used [24].
5.3.4.2. Optimisation (Question 79 — 83)
Goals for product and process development were set. One of the goals
was to find directly from the gate mechanics the information they need
to service the plane. Customer requirements were evaluated
continuously so that the product development teams produced a basic
product to which features could be added. An example is the B777
interior which offers operators configuration flexibility. A typical B777
configuration_ takes as little as 72hours while such change might take
two to three weeks on other planes.
5.4. SUMMARY OF RESEARCH FINDINGS
The building of a B777 requires above 132,500 engineered unique parts and
over 3million fasteners. Boeing worked with 238 design teams and about 900
suppliers that make and provide parts. The decision to procure parts from
numerous suppliers was made considering that these suppliers are the best
in the world, and doing business with them assisted the company to reduce
time and produce a high-quality airplane. The challenge was to design each
part so that everything fits perfectly together and works when the plane is
assembled. A change in the design of any part would cause a change in
many other related parts. Boeing launched a computer aided design (CAD)
program in 1989 in order to avoid costly redesigns. The company has been at
C. N. Nchapha Page 58 29/07/2005
the forefront of development of CAD. In 1990 B777 was the first airliner to be
designed entirely by computer. CAD has been found to have the following
advantages:
Improvement of the quality of airplane designs
Components that fit together
Cut off expensive mock-ups
Shortening of development
Using the designs' specifications, the CAD system helps to create a digitised
mock-up of the aircraft and eliminates the need for paper drawing and a
physical model. Each of the thousands of components of B777 was first
engineered and tested in virtual space by means of three dimensional CAD
technologies to make sure that everything fits together. If components did not
fit, they were redesigned on the computer until they did. The result is that
designing and building the aircraft take much less time than usual as
interlocking parts can be designed at the same time rather than one at the
time.
A theme that runs throughout the case study is the Boeing 777, the most
innovative and technologically advanced airplane in the world. The B777 is
available in five models: The 777 — 200, a larger 777 — 300, a 777 — 200 ER,
777 — 300 ER (Extend Range), as well as two new longer — range models 777
— 200 LR. The goal for 777 programme was to reduce costs by 25%; defects
by 50%; and order — to delivery time by half, to six months. The B777 team .
C. N. Nchapha Page 59 29/07/2005
achieved the actual reduction of defects by 75 — 80% thus surpassing the
target by a huge margin; and delivery time was achieved in a record time.
Products that fail when they reach the market do so because they are
designed with little or no customer involvement. Boeing 777 program has
been a great success because customers, suppliers and cross-functional
teams within Boeing worked together as one solid team. The use on
concurrent engineering methodology and technology resulted in B777 being
developed in less (record) time, at lowest cost and has met the highest quality
standard.
C. N. Nchapha Page 60 29/07/2005
Chapter 6: CONCLUSION AND RECOMMENDATIONS
6.1. CONCLUSION
An organisation's success is determined by the capacity of its management to
formulate the vision of concurrent engineering and the ability to rally every
staff member around this vision. Management has to also be able to create
the environment that would foster concurrent engineering. This could be done
by creating and empowering product development teams. Members of these
teams have to be from every discipline and stakeholder. These cross-
functional teams should be given the authority to make decisions on product
development and the responsibility for working on it. Management has to
support these teams with training and education, and other resources.
Successful product development companies should possess the
communication infrastructure that would enable sharing of information and
knowledge among the members of the development teams. The
communication infrastructure should be able to track the decision process,
monitor and evaluate the progress and the quality of the decisions, track the
problems associated with product development, and maintain links with
external sources of information. This system should also be able to store
knowledge in the form of reference materials that can be accessed easily.
This knowledge should be updated as the development process unfolds.
C. N. Nchapha Page 61 29/07/2005
In implementing concurrent engineering efforts should be made to satisfy
customers and exceed their expectations. The product teams have to broadly
describe a product by how it will behave in the environment. The product
team should also specify the product design constraints. The next step is to
create a list of detailed requirements against which the product would be
measured and validated. This could be done by thinking of each requirement
in terms of specific product behaviours. The team has to also understand how
the product should respond to and recover from errors. Finally the teams
must continuously think about how the components interact and how they
could be integrated and tested. It is important to note that these processes
should be initiated during the initial definition phase and throughout the entire
development process. Concurrent engineering gives a greater chance of
meeting customer needs by quickly redesigning products as customer
requirements and technology changes.
A best engineering company is the one that gives attention to how a product
is developed in order to have a good design and a timely product. It is
therefore important to note that at the centre of a product development and
the design process is a good design. A good design should reflect the
customer needs in a product. It is based on the company's engineering
requirements such as quality, development in time and cost considerations.
The use of existing databases and component libraries are key to designing
new products as the design process does not have to start from the scratch.
C. N. Nchapha Page 62 29/07/2005
This speeds up the design process while improving reliability as previously
designed and tested products are used. Continuous evaluation of customer
requirements and the use of information that flows through the concurrent
engineering environment can indicate how to improve a product and its
development process.
Concurrent engineering has had a significant impact on the quality and
development cycle of products in large corporations. Scrap was reduced by
58% and rework by 29% at McDonnell Douglas, for example, while Boeing
gained a parts and material lead time reduction of 30% and AT&T
experienced a reduction in product defects of 30% [13].
It is very important for South Africa to learn how international companies
accelerate and succeed with their product development and to adopt these
processes. During the ten years of democracy, South Africa has joined the
international world and competition and opportunities are presenting
themselves to South African companies. Adopting proper use of concurrent
engineering procedure will enhance companies' competitive edge. The four
basic principles of concurrent engineering that flow throughout this research
are;
Do tasks simultaneously
Use tried and tested technology
Use cross functional teams
C. N. Nchapha Page 63 29/07/2005
• Involve the customer as early as possible in the development process
and throughout the development process.
The implementation of these basic principles will minimise multiple design
errors, corrections and changes. Thus, increasing the quality of products, the
speed at which products are brought to the market while reducing the cost of
development of these products.
6.2 RECOMMENDATION
6.2.1 Technology and Reliability
If in future computer models can be built that can totally simulate the real
plane's behaviour will ensure that optimum reliability can be achieved,
engineers will be able to analyse possible engine failures and other
problems that may occur. Solutions would then be sought to prevent the
problem before it can even occur. It is therefore recommended that
business invests in new improved technology that would enhance
reliability testing of new products.
6.2.2 Product Development
Product development is a flexible process. It depends directly on customer
demands and technology. As time changes successful organisations
improve their product development process. They empower their
employees through motivation and training. They also change the way
they have been doing things, and look for new ways of improving their
C. N. Nchapha Page 64 29/07/2005
methods of developing the products. It is then recommended that
business focus continually on ways to improve their product development
processes for enhanced productivity.
6.2.3 Concurrent Engineering Methodoloay
Organisations must take the opportunity to understand all the
components of concurrent engineering and integration tools. They should
be able to identify what is required for effective implementation.
Concurrent engineering is a broad topic with numerous attributes and can
be used effectively to shorten new product development life cycles.
6.2.3 Future Research
Future research could be extended to how principles of concurrent
engineering approach to product development could be adopted and
applied to any business especially small and medium enterprises.
C. N. Nchapha Page 65 29/07/2005
BIBLIOGRAPHY
Armstrong S.C. Engineering and Product Development Management: The
Holistic Approach. Cambridge University Press, 2001.
Browne J. and Mc Mahon C. Principle, Practice and Manufacturing
Management. Addison - Wesley Publishing Company, 1998
Carter E.D. and Baker S.B. Concurrent Engineering: The Product
Development Environment For The 1990's. Addison - Wesley Publishing
Company, 1992.
Clerand D. The Field Guide to Project Management. John Wiley & Sons,
1998.
Coombs C.F. Jr., Ireson G.W. and Moss R.Y. Handbook of Reliability
Engineering and Management. The McGraw - Hill Company, 1996.
Crawford C.M. New Products Management. Irwin McGraw Hill, 1997.
Eppinger S.D. and Ulrich K.T. Product Design and Development. The
McGraw - Hill Companies, inc., 2000.
Foster S. Thomas Managing Quality: An Integrative Approach. Upper Saddle
River, New Jersey: Prentice Hall, 2001.
Fraidoon Mazda, Engineering Management. Addison Wesley Longman Ltd.,
1998.
George Stalk Jr. and Thomas M. Hout, Competing against Time: How Time
Based Competition is Reshaping Global Markets. Free Press, New York,
1990.
C. N. Nchapha Page 66 29/07/2005
Groenewald J.P. Social Research: Design and Analysis. University of
Stellenbosch Publishers, 1989.
Jones Tim. New Product Development: An Introduction to a Multifunctional
Process. Butterworth — Heinemann Ltd, 1997.
Lake J. Implementation of Multi-Disciplinary Teaming. Engineering
Management Journal 4(2): 913, 1992
Lawrence P.R. & Lorsch J.W. Organising for Product Innovation. Harvard
Business Rev., volume 43 January- February, 1965.
Lock Dennis, Handbook of Engineering Management. Butterworth —
Heinemann Ltd, 1993.
Magrab E.B. Integrated Product and Process Design and Development: The
Product Realization Process. CRC Press LLC, 1997.
Norman, Donald A. The Invisible Computer. MIT Press, Cambridge MA,1998
Prasad B. Concurrent Engineering Fundamentals. Vol.1 Page167: Integrated
Product Development. Prentice Hall, 1996.
Sharma K.J. And Bowonder B. The Making of Boeing 777: A Case Study in
Concurrent Engineering. International Journal of Manufacturing Technology
and Management 2004, Vol. 6, Numbers 3 and 4,
Smith Preston G. Your Product Development Process Demands Ongoing
Improvement. Research - Technology Management March — April, 1996.
Smith, Preston G. and Donald R.G, Developing Products in Half the Time.
van Nostrand Reinhold New York, 1995.
C. N. Nchapha Page 67 29/07/2005
Stevenson W. Production Operations Management. Irwin McGraw — Hill,
1999.
Stoll H.W. Product Design Methods and Practices. Marcel Dekker, /nc.1999
Yukl Gary. Leadership in Organisations. Prentice Hall, 1994
"The Boeing 777 Family: The Most Technologically Advanced Airplane in the
World" www.boeing.com/commercia1/777family/flash.html . 14/09/2004
Carlson S. E. and Ter-Minassian N. (1996): "Design: Planning for Concurrent
Engineering" http://www.devicelink.com/mddi/archive/96/05/023.html, 3/01/05.
C. N. Nchapha Page 68 29/07/2005
Appendix At
QUESTIONNAIRE [3]
This part of the company assessment questionnaire explores where your company
presently stands in terms of the key factors that characterise the organisation dimension
in the concurrent engineering.
Team Integration
Were the specifications and priorities for the assigned tasks understood by the
individuals? M
Was the product development process understood by each single-discipline team? M
Were the common vocabulary, priority and purpose established for mixed-discipline
product development team?
Were the requirements, specifications, interdependencies, and priorities of the product
understood by the enterprise team?M
Empowerment .
Were design decisions made by supervisors and managers? M
Were design decisions made by the single-discipline team? M
Were design and trade-off decisions made by mixed-discipline team?N
Do representatives from the enterprise team (which include customers and third party
vendors) responsible for the system design specifications? M
Were individuals responsible for scheduling and then completing their tasks on time
and responsible for the outcome of their tasks? M
Was the single-discipline team responsible for development and engineering
specifications and their correlation to interdependent specifications?N s
Was the mixed-discipline team responsible for program-wide specifications,
scheduling, and correlation to requirements? Y
Was an enterprise team (which include customers and third party vendors)
responsible for the system design specifications? . M
Do you reward individuals for their contributions? M E
C. N. Nchapha Page 69 29/07/2005
Do you reward teams for their contributions? M
Was adequate training provided for each individual on the procedures, tools, and
standards he/she should use? M
Does the single-discipline team have adequate cross discipline awareness regarding
procedures, tools, and standards? M
Was adequate team effectiveness training provided for the Mixed-discipline team
members? M
Was adequate team effectiveness training provided for the enterprise team members
(including the customer and third-party)? M
Automation support
Were the tools for each discipline provided as stand-alone tools? M
Were centralized tools provided for the single-discipline team? M
Were the tools for each individual integrated within the mixed-discipline team? MI
Were the tools for each individual integrated within the enterprise team (including
any vendor-supplied parts or assistance being available on-line)? MI
Please comment:
C. N. Nchapha Page 70 29/07/2005
This part of the questionnaire explores where your company stands in terms of the key
factors that characterise the communication infrastructure dimension in a concurrent
engineering environment.
Product Management
Were electronic mail capabilities available to each individual? M
Were query and online reporting capabilities available to each individual?
Were interactive product data browsers available to each individual? ly Was decision support available to each individual? M g Were technical reviews and inspections conducted at the appropriate milestones? M
Was disciplined and consistent product management used for a project effort? M
Was there a communication path between all aspects of project management and
system requirements? M
Were managers and interdependent project teams automatically and concurrently
informed of problems and their status? iy
Product Data
Was product development data controlled by the individual? M
Do individuals on the single-discipline team have access to all the product
development data related to their discipline? iy Do individuals have electronic access to the product development data related to the
different disciplines involved in product development? Y Do individuals and teams have electronic access to company-wide product
development data that includes data from customers and third-party vendors? M IN1
During the development process, Were the product development specifications and
designs utilized and documented in an established manner? yi Was the product development data stored, controlled, changed, and versioned in a
similar or common computer database? M
C. N. Nchapha Page 71 29/07/2005
Was the data in the product development database interoperable among the various
design automation tools? M
Were evolving product requirements, specifications, and development data under
automatic change and versioning controls? ty
Feedback
Were problems analyzed as to their root cause and then corrected? IM
Were problem reports logged, prioritized, scheduled for correction (or rejected), and
tracked until the problems were corrected? M
Were action items, problems reports, and enhancement requests stored in a decision
database and then used as indicators for customer satisfaction? M
Were the trends of action items, problem reports, enhancement requests, and all other
decisions analyzed to continuously improve the product development process? M
Please comment:
C. N. Nchapha Page 72 29/07/2005
This part explores how your company handles the key factors that characterise the
requirements dimension in a concurrent engineering environment.
Requirements Defmition
Were customer expectations determined and converted to established, documented
customer or marketing requirements? IY
Was the customer or marketing requirements partitioned into established, documented
functional specification? M
Was there traceability from the individual functional specifications back to customer
or marketing requirements? M
Can the enterprise team access the customer or marketing requirements as part of
decision support? M
Were internally imposed expectations determined and converted to established,
documented product life cycle (PLC) specifications? M
Were the internal requirements partitioned into established, documented PLC
specifications? M
Was there traceability from the individual functional specifications back to the PLC
requirements? M
Can the enterprise team access the PLC requirements as part of decision support? M
Planning methodology
Was there a button-up design process in which all individuals contribute to the
planning, evaluation, or creation of the product or functional specifications? M
Was there a top-down design process in which customer, product, or system design
requirements lead to documented specifications for the functional subsystem design?
Was it required that the mixed-discipline team consider tradeoffs that may change the
product technology, design architecture, or development-to-manufacturing process?
RI SI
C. N. Nchapha Page 73 29/07/2005
Do the product requirements and system design requirements lead to interrelated
tasks and process? M
Planning Perspective
Do individuals document short-term planning prior to the start of task? M
Does your company require documented long-term planning product? RI Does your company use multi-phased, multi-year planning methods for each product
family? M
Does your company measure best-value product designs for cost, functionality,
fitness for use, reliability, performance, and supportability? MI
Validation
Were the individual functional subsystem specifications validated according to the
customer requirements? M
Were the discipline-specific requirements validated according to the customer
requirements? MI
Were the mixed-discipline and process requirements validated to the customer
requirements? M
Were interactive methods used to monitor and warn the enterprise team when a
requirement mismatch occurs? M
Standards
Does your company have a mechanism to monitor compliance with applicable design
standards? M
Does your company use design standards to ensure product reliability?
Does your company use design standards to ensure product testability,
• manufacturability, supportability, and usability? M
Does your company regularly review and improve its design standards? M
C. N. Nchapha Page. 74 29/07/2005
Please comment:
This part of the company assessment questionnaire explores how your company handles
the key factors that characterise the product development dimension.
Component Engineering
Were individuals responsible for the development of their own components and
component libraries? M
Were company-wide standards used to represent the component data? M
Was a single library system used to manage the component data of all the different
disciplines involved? M
Was the library system database linked to a decision support tool to assist each
designer in making component or unit selections? M
Design Process
Were design process specifications methodically documented so that function-
specific designs (system, software, hardware, or mechanical) were both repeatable
and consistent? M
C. N. Nchapha Page 75 29/07/2005
Was deterministic analysis used to measure how well the product functions-for
example, logic, simulation, for gauging functionality, fault simulation for determining
the ability to detect failure, analogue simulation for verifying parameters, finite
element analysis for measuring mechanical tolerances? M E
Was there adequate evaluation of the reuse and shared use of product technology and
product design units? M
Were adequate methods used to integrate the product and process? M
Was information extracted from the physical design (back-annotated) to perform
more detailed analyses of the product features and process?
Were analysis methods used to account for downstream process, such as cost,
testability, reliability, manufacturability, and supportability at the conceptual or
detailed design stage? M
Were the computing environment and the product development tools interoperable for
all discipline? M
Were decision support and process management systems in use? M
Optimization
Were the goals for product and process improvements? M
Were major project decisions and the factors leading to the documented, distributed,
and analyzed for guidance on other projects? M
Were process modelling and simulation tools used in planning and improving the
design process? M
Were product designs, development processes, requirements, and tools concurrently
analyzed and continuously improved as part of a company-wide optimization
strategy? M
Was a supplier qualification program used to select third-party vendors for products
or tools?
C. N. Nchapha Page 76 29/07/2005
Appendix A, COMPLETED QUESTIONNAIRE
This part of the company assessment questionnaire explores where your company
presently stands in terms of the key factors that characterise the organisation dimension
in the concurrent engineering.
Team Integration
Were the specifications and priorities for the assigned tasks understood by the
individuals? M
Was the product development process understood by each single-discipline team? RI
Were the common vocabulary, priority and purpose established for mixed-discipline
product development team? IM
Were the requirements, specifications, interdependencies, and priorities of the product
understood by the enterprise team? M
Empowerment
Were design decisions made by supervisors and managers? M
Were design decisions made by the single-discipline team?
Were design and trade-off decisions made by the mixed-discipline team?N
Do representatives from the enterprise team (which include customers and third party
vendors) responsible for the system design specifications? M
Were individuals responsible for scheduling and then completing their tasks on time
and responsible for the outcome of their tasks? M
Was the single-discipline team responsible for development and engineering
specifications and their correlation to interdependent specifications? E
Was the mixed-discipline team responsible for program-wide specifications,
scheduling, and correlation to requirements?N
Was an enterprise team (which include customers and third party vendors)
responsible for the system design specifications? M
Do you reward individuals for their contributions? M
Do you reward teams for their contributions? y
C. N. Nchapha Page 77 29/07/2005
Was adequate training provided for each individual on the procedures, tools, and
standards he/she should use? M
Does the single-discipline team have adequate cross discipline awareness regarding
procedures, tools, and standards? M
Was adequate team effectiveness training provided for the Mixed-discipline team
members? M
Was adequate team effectiveness training provided for the enterprise team members
(including the customer and third-party)? M
Automation support
Were the tools for each discipline provided as stand-alone tools? SI
Were centralized tools provided for the single-discipline team?
Were the tools for each individual integrated within the mixed-discipline team?
Were the tools for each individual integrated within the enterprise team (including
any.vendor-supplied parts or assistance being available on-line)? M
Please comment: The concept and design are preliminary until all the various teams and
the customers provide input. At that time a Preliminary Design Review is conducted. All
changes and agreements are documented and signed off. The next step is a Critical
Design Review. At that time all the design is signed off and changes are
minimal.
C. N. Nchapha Page 78 29/07/2005
This part of the questionnaire explores where your company stands in terms of the key
factors that characterise the communication infrastructure dimension in a concurrent
engineering environment.
Product Management
Were electronic mail capabilities available to each individual? M
Were query and online reporting capabilities available to each individual?
Were interactive product data browsers available to each individual? y Was decision support available to each individual? M
Were technical reviews and inspections conducted at the appropriate milestones? M
Was disciplined and consistent product management used for a project effort? M
Was there a communication path between all aspects of project management and
system requirements? M
Were managers and interdependent project teams automatically and concurrently
informed of problems and their status?
Product Data
Was product development data controlled by the individual? M
Do individuals on the single-discipline team have access to all the product
development data related to their discipline? M
Do individuals have electronic access to the product development data related to the
different disciplines involved in product development? Y
Do individuals and teams have electronic access to company-wide product
development data that includes data from customers and third-party vendors? M
During the development process, Were the product development specifications and
designs utilized and documented in an established manner? M
Was the product development data stored, controlled, changed, and versioned in a
similar or common computer database? M
Was the data in the product development database interoperable among the various
design automation tools? M
C. N. Nchapha Page 79 29/07/2005
Were evolving product requirements, specifications, and development data under
automatic change and versioning controls? M
Feedback
Were problems analyzed as to their root cause and then corrected? IM
Were problem reports logged, prioritized, scheduled for correction (or rejected), and
tracked until the problems were corrected? M
Were action items, problems reports, and enhancement requests stored in a decision
database and then used as indicators for customer satisfaction?
Were the trends of action items, problem reports, enhancement requests, and all other
decisions analyzed to continuously improve the product development process? M
Please comment:
Government regulations require that all documentation is strictly controlled.
This part explores how your company handles the key factors that characterise the
requirements dimension in a concurrent engineering environment.
Requirements Definition
Were customer expectations determined and converted to established, documented
customer or marketing requirements? M
Was the customer or marketing requirements partitioned into established, documented
functional specification?
C. N. Nchapha Page 80 29/07/2005
Was there traceability from the individual functional specifications back to customer
or marketing requirements?
Can the enterprise team access the customer or marketing requirements as part of
decision support? M
Were internally imposed expectations determined and converted to established,
documented product life cycle (PLC) specifications?
Were the internal requirements partitioned into established, documented PLC
specifications? M
Was there traceability from the individual functional specifications back to the PLC
requirements? M
Can the enterprise team access the PLC requirements as part of decision support? MI
Planning methodology
Was there a button-up design process in which all individuals contribute to the
planning, evaluation, or creation of the product or functional specifications? M
Was there a top-down design process in which customer, product, or system design
requirements lead to documented specifications for the functional subsystem design?
Was it required that the mixed-discipline team consider tradeoffs that may change the
product technology, design architecture, or development-to-manufacturing process?
Do the product requirements and system design requirements lead to interrelated
tasks and process?
Planning Perspective
55: Do individuals document short-term planning prior to the start of task? M
Does your company require documented long-term planning product? M
Does your company use multi-phased, multi-year planning methods for each product
family?
C. N. Nchapha Page 81 29/07/2005
Does your company measure best-value product designs for cost, functionality,
fitness for use, reliability, performance, and supportability? M
Validation
Were the individual functional subsystem specifications validated according to the
customer requirements? M
Were the discipline-specific requirements validated according to the customer
requirements?
Were the mixed-discipline and process requirements validated to the customer
requirements?
Were interactive methods used to monitor and warm the enterprise team when a
requirement mismatch occurs? M
Standards
Does your company have a mechanism to monitor compliance with applicable design
standards?
Does your company use design standards to ensure product reliability?
Does your company use design standards to ensure product testability,
manufacturability, supportability, and usability? Mi
Does your company regularly review and improve its design standards? MI
Please comment:
C. N. Nchapha Page 82 29/07/2005
This part of the company assessment questionnaire explores how your company handles
the key factors that characterise the product development dimension.
Component Engineering
Were individuals responsible for the development of their own components and
component libraries? M
Were company-wide standards used to represent the component data? MI
Was a single library system used to manage the component data of all the different
disciplines involved? M
Was the library system database linked to a decision support tool to assist each
designer in making component or unit selections?
Design Process
Were design process specifications methodically documented so that function-
specific designs (system, software, hardware, or mechanical) were both repeatable
and consistent?
Was deterministic analysis used to measure how well the product functions-for
example, logic, simulation, for gauging functionality, fault simulation for determining
the ability to detect failure, analogue simulation for verifying parameters, finite
element analysis for measuring mechanical tolerances? MI
Was there adequate evaluation of the reuse and shared use of product technology and
product design units? M
Were adequate methods used to integrate the product and process? M
Was information extracted from the physical design (back-annotated) to perform
more detailed analyses of the product features and process? MI
Were analysis methods used to account for downstream process, such as cost,
testability, reliability, manufacturability, and supportability at the conceptual or
detailed design stage? MI
Were the computing environment and the product development tools interoperable for
all discipline?
C. N. Nchapha Page 83 29/07/2005
Were decision support and process management systems in use?
Ontimization
Were there goals for product and process improvements? M
Were major project decisions and the factors leading to then documented, distributed,
and analyzed for guidance on other projects?
Were process modelling and simulation tools used in planning and improving the
design process? MI
Were product designs, development processes, requirements, and tools concurrently
analyzed and continuously improved as part of a company-wide optimization
strategy?
Was a supplier qualification program used to select third-party vendors for products
or tools? M
C. N. Nchapha Page 84 29/07/2005
M. P
hil (
Eng
inee
ring
Man
agem
ent)
t E sa. =— 0 4, a. >
s"'
E U 0 C-)
cr.
`4■4 cf1
O
ch
U a) r..) a> v
at° I
0 >,
E g E 6
•
-
O0 0
G. . rn
C.) CA 0 V • -0 tin
,-4, C.) CC
tu En
+.■ ci)
•
COc0) CZ 6) bi) RS -e•-'
C•1■1 ° 4 0
a> O „ U at
c).; ›, 0 E cn
bi) V0 z
a) w) at
E ° -
•
5
2
•
E 0 a)
0 t--: a>
bk 'fl
-0 a> 0 2
gr-1
O
•
0.)
M. P
hil (
Eng
inee
ring
Man
agem
ent)
00 00 a) by cci
gt4
Plea
se g
ive
com
men
ts (
if an
y).
C. N
. Nch
apha