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Decision Making in Engineering Management
John Murdoch, University of YorkAntony Powell, YorkMetrics
24th June 2009
PSM 2010/ July 08 Workshopy p
Performance Information
NeedsEnterpriseProject
Objective Data
Integrated Analysis
Fact-Based Decisions
Management Actions
Measurement Application Decision Environment
• Capable Information Process • Decision “Freedom”p• Viable Measurement Constructs• Both Measurement and Risk Data• Performance Analysis• Decision Alternatives• Unfettered Communication
• Decision - Change Implementation• Performance Tradeoff Decisions• Measureable Performance Feedback• Integrated Context - Portfolio Mgt.• Revised Strategies and Objectives
Source: PSM
Unfettered Communication Revised Strategies and Objectives
Project Decision Makersj
REGULATORS
SUPPLIER MANAGERS
SUPPLIERS
DESIGN PROJECT
ACQUISITION MANAGER
CERTIFICATION AND
COMPLIANCE
SUPPLY CHAIN MANAGEMENT
PROJECT DECISION MAKING
AUTHORITY
ENTERPRISE MANAGERS
MANAGER
FUNDERS CHIEF ENGINEER
CONFIG CONTROL
COMPLIANCE MANAGEMENT
ENGINEERING MANAGER
SYSTEMS ENGINEERSSPECIALTY
ASSURANCE
COMMERCIAL MANAGERSENTERPRISE
MANAGEMENT
0309
SOFTWARE ENGINEERSCOMPONENT
ENGINEERS
SPECIALTY ENGINEERSCUSTOMERS
Source: SSEI
0102
0
END USERSENGINEERING MANAGEMENT
Motivation and Objectivesj
■ Complex defense projects often perform poorly from external perspectivesperspectives
■ Engineering perspective: strive to develop and support products that are fit for purpose and that use resources as efficiently asthat are fit for purpose and that use resources as efficiently as possible
■ Hypothesis: better support and promotion of the engineering yp pp p g gview, integrated through supply chains and through the lifecycle, will produce improved project performance
■ OBJECTIVE: to promote and support engineering, integrated through supply chains & lifecycle; to provide a better balance with other stakeholder interestsinterests
Supply Chain View
TTI
ON
MAN
AG
EM
EN
S M
AN
AG
EME
NT
EN
T ST
ATE:
TR
ANSI
OV
ISIO
N: P
RO
CE
SS
PR
OJE
CT
CU
RR
E
SER
VIC
E PR
O
0127
0509
a
What Hinders Integrated Engineering?g g g
■ Individual Levelo Insufficient knowledge , experience,
understanding
■ Inter-organizational Levelo Commercial interests, competition
understandingo Insufficient timeo Insufficient information – not being able to
detect that a decision, action is needed, not being able to understand the situation
o Low Trusto Risk transfero Contractso Market power
sufficientlyo Insufficient generation of solution optionso Insufficient analysiso Insufficient support/ guidance information
Ri k i
o Political interestso Difficulty in promoting whole-project interestso Technology optimismo Perceived transaction costs in short term
o Risk aversion o Perceived transaction costs in short term
■ Organization Levelo Insufficient authority – pass up the management o y p p g
chain; gap between knowledge and authorityo Risk aversiono Blocks to information flowo Stakeholder issues - different criteria, different goalso Sta e o de ssues d e e t c te a, d e e t goa so Different cultures and ‘tribes’o Bureaucracy
Improving Integrated Engineeringp g g g g
■ Enabling integrated engineering across contractual, specialty boundaries
■ Balancing engineering ‘realities’ with other stakeholder interests■ Enabling trade-offs of end-delivered value to users, g ,
development costs, schedule, risks■ Managing delivery of engineering capabilities to projects;
enactment, coordination and integration of activity on a project, g y p j
■ Managing across boundaries■ Transition management rather than process management■ Transition management rather than process management
Decision Situation
0419
0609
Linking Measurement and Decisionsg
■ Strengthen Engineering Managemento Decision guidance plus information need specifications; link
to measurement processo Model as decision-makingo Model as decision makingo Develop a reference, generic decision processo Decision planning; architecture; programmed, un-
programmed but prepared-for; un-plannedo Specialise to EM decision typeso Dealing with constraintso Dealing with constraintso Detecting problems
EM Process
atio
n N
eeds
ve In
form
atio
n
Info
rm
Effe
ctiv
Anal
ysis
Res
ults
and
Perfo
rman
ce
Mea
sure
s
prov
emen
t Act
ions
0123
0109Im
p
EM Process
vem
ent A
ctio
ns
Mea
sura
ble
Out
com
es
mat
ion
Nee
ds
ive
Info
rmat
ion
Use
r Fee
dbac
k
Impr
ov
M O
Info
rm
Effe
cti U
Ana
lysi
s R
esul
tsan
d P
erfo
rman
ce
Mea
sure
s
rove
men
t Act
ions
0123
0109Im
p
Solution Mapp
3190
609
03
Conclusions: How to Improve Integrated Engineering Management?Integrated Engineering Management?
The workshop will be looking at…
■ Is this the right approach?■ Is this the right approach?■ What’s missing?■ Are we addressing the right problem?■ Other approaches, solutions■ Recommendations ■ Next Steps
