Industry R&D Project Management
Dr. Bao Lian, P.Eng.
Research and Technology Advisor
SR&ED Program, CRA
Overview of R&D in Canada
• Nortel, Bell Canada, ATI, IBM, Ericsson, Alcatel,
Cognos, Telus, RIM
• Apotex, Pfizer, GlaxoSmithKline, Merck Frosst
Canada, Biovail
• Pratt & Whitney, Bombardier, CAE, Honeywell,
MDA
• AECL, Suncor, Ballard Power Systems
• Magna International
Government Objective
• Rank among the top five countries
worldwide
• Federal Spending
• Provincial funding for innovation.
• Canada offers the most generous tax
treatment for R&D operations among G-7
countries
Information and Communication
Technologies
• $100B industry, with highest R&D intensity
• Invested more in R&D than any other
industry, focus in areas such as wireless
communication, e-commerce,
nanotechnology, photonics, special effects
and animation, software development
Aerospace
• 2005 Revenues: $21.7 billion (1.85% of
GDP)
• 400 firms, 75,000 people (12,000 scientists
and engineers, 20,000 technicians and
technologists)
• Annual R&D investment: $1.1 billion
Aerospace
• Regional passenger jets, turboprops,
business jets, helicopters, jet engines,
avionics, advanced composites, services
such as flight training, maintenance, repair
and overhaul.
• Top four countries: United States, the
United Kingdom, France, Canada
Aerospace in Canada
• All three tiers: Tier 1 (large manufacturers such as
Bombardier), Tier 2 (builders such as PWC that
supply major subsystems (engines), to the large
manufacturers) and Tier 3 companies (firms that
provide smaller subsystems and engineered
components to the other tiers)
• Mostly civil aviation, with a small military
aviation subsector
• Mostly exporting
Aerospace-Advantages
• Complete expertise
• Sophisticated infrastructure: Big players are
the world leaders in Bombardier, Bell
Helicopter, Pratt & Whitney and CAE, fully
supported by a chain of second-tier and
third-tier manufacturers, as well as a
tremendous MRO facilities
Aerospace-Growth Opportunities
• Major growth in Asia
• U.S. and European markets: Airbus and Boeing
new and replacement design for Canadian
participation
• Military and Canadian Forces retooling
• Longer operational time, increasing services for
maintenance, repair and overhaul
• Aircraft design and fabrication using composite
materials
Aerospace-Opportunity
• Airbus A-350, Boeing 787 and 747-8.
• Replacements for Airbus 320 and Boeing
737 families
Aerospace-Opportunity
The re-equipping of the Canadian Forces:
• To get on board and to stay for life
• Example: the Hercules military aircraft
were designed in 50’s
Aerospace-Opportunity
• Special purpose helicopter platforms for
Bell Helicopter, and potentially for Tier 2
and Tier 3 companies.
• Example: Oil industry, public safety and
disaster relief
Aerospace-Opportunity
• New material in composite based on
ceramics, carbon, polymers and other
substances will bring about fundamental
changes in aircraft design and construction
• Example: the new Boeing 787 airliner,
about half the airframe is made of
composites instead of metal
Aerospace-Opportunity
• Maintenance, repair and overhaul (MRO):
from local into global markets
Aerospace-Challenges
• Brazil, France, the U.S., Germany, the U.K.
• More R&D funding/subsidy by European governments
• Defence R&D contract benefits the U.S. aerospace
industry: cost covered, IP later used in commercial
project (Boeing, Lockheed Martin)
• Still competitive? More high-level design and
manufacturing seen in lower cost countries
Aerospace Companies
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Field Aviation
Bell Helicopter Textron Canada
Bombardier Aerospace
Pratt & Whitney
CAE
Standard Aero
Rolls-Royce Canada
L3 Communications
CMC Electronics
GE
EMS
Honeywell aerospace
Messier-Dowty
Mecachrome
Air Canada Technical Services
Aerospace Companies
• Air Canada (Technical Services) - The Technical
Maintenance Centre operates an aircraft overhaul
base in Montréal that provides maintenance
services for C and D type cells, components,
engines and auxiliary power units (APU). It also
offers specialized services covering training,
technical file management, technical publications,
engineering, flight data analysis, supply chain, etc.
Aerospace Companies
• Bell Helicopter designs and assembles ten models
of light, intermediate and long-haul civilian
helicopters. It is the only fully integrated maker of
helicopters in Canada. Since 1986, the company
has delivered more than 3 000 aircraft in 120
countries, representing more than 50% of global
production of commercial turbine helicopters. By
2007, the Mirabel plant will develop four new
helicopter models (Bell-429) of the MAPL series
(Modular Affordable Product Line), an investment
of C$700 million.
Aerospace Companies
• Bombardier Aerospace is the world's thirdlargest maker of civilian aircraft, after Boeing and
Airbus. It designs and builds business aircraft,
regional aircraft and amphibious aircraft. The
company has produced 16 new aircraft models
over the last 16 years (Challenger 604, the
Bombardier CRJ200 and the Global Express). The
company selected Mirabel as the site for
development of the future CSeries, an expected
investment of C$2.6 billion.
Aerospace Companies
• CAE is a pioneer and world leader in
simulation and modelling technologies. It
develops and makes complete flight
simulators reproducing all major models of
civilian aircraft and many military models.
It also offers integrated aeronautics training
services for civil aviation and defence
forces.
Aerospace Companies
• CMC Electronics designs and makes electronic
products for aviation and global positioning
systems (GPS). Its products and services include
aeronautic communications systems, enhanced
vision systems, flight deck systems integration
services and various specialized electronic
products. The company also offers electronic
equipment calibration, maintenance and repair
services.
Aerospace Companies
• EMS Technologies specializes in advanced
satellite communications equipment such as
for commercial space sector, in particular
antenna subsystems and products, hyperfrequency subsystems and components,
power supply products and digital command
and control products.
Aerospace Companies
• General Electric plant in Bromont,
Québec, is part of the GE Aircraft Engine
(GEAE) division, a global builder of jet
engines for civilian and military aircraft.
The Bromont plant makes fan blades and
compressors for many GE engines and for
the CFM56 engine.
Aerospace Companies
• Héroux-Devtek Inc. specializes in the design,
development, manufacture and complete maintenance and
repair service for aerospace and industrial products. These
products include landing gear, turbine components for
aircraft engines and electricity production systems,
structural components for the aeronautics and space
sectors. The company also has a logistics and defence
division with plants located in Ontario. Héroux-Devtek
made its mark in particular by making the landing gear of
the Apollo lunar excursion module (LEM).
Aerospace Companies
• Honeywell Aerospace is a major supplier of integrated
electronic systems and maintenance solutions for aircraft
builders, air carriers, and the general and business aviation
sector.
Main products: fuel control systems for turbine engines.
Services include repair and overhaul, as well as complete
after-sale service and support for (more than 160 original
products (DEM) throughout the world). Its products also
have applications in the military, space and airport
operations fields.
Aerospace Companies
• L3 Communications is one of the largest
Canadian suppliers of services to support
and extend the life of aeronautic products
and aircraft maintenance services. It serves
government ministries and organizations as
well as commercial customers and its
services affect both military and
commercial aviation.
Aerospace Companies
• Mecachrome specializes in manufacturing
metallic parts for aeronautics, the
automobile industry, auto racing and
industrial equipment. Its products are used
in aircraft and helicopters made by Boeing,
Lockheed, Sikorsky, Bombardier, Airbus,
Embraer, Israel Aircraft Industries, Parker
Aerospace, SAAB and many others.
Aerospace Companies
• Messier-Dowty is a company that designs,
develops, manufactures and supports
landing systems
Aerospace Companies
• Pratt & Whitney Canada (P&WC) designs and produces engines for
helicopters as well as business and regional aircraft. The company also
makes high-technology engines for industrial applications. It has 14
regional service centres in Canada, the United States, Brazil, South
Africa and Australia, as well as 6 overhaul facilities (Canada, U.S.,
England, Germany and Singapore). P&WC is the largest R&D investor
in the aerospace industry in Canada and the second-largest in the
private sector.
P&WC's 900 engineers have designed 44 different engines over the
last ten years. In 2006, the company announced it would invest
CDN$1.5 billion in R&D over the next five years to develop new
engines.
Aerospace Companies
• Rolls-Royce is active in the civilian and
military aeronautics, marine and energy
fields. The Montréal facility is focused on
the repair and overhaul of civilian and
military aircraft engines. In addition, it
carries out R&D for the energy industry,
assembly and testing of RB211 turbines and
Trent engines, as well as component repair
services.
Space Sector
• Robotics and Control, Remote sensing,
Earth observation and surveillance, as well
as satellite-based wireless and broadband
communications.
Space Sector-Company
• A.U.G. Signals Ltd.: establish in 1986, signal image and
data processing algorithms for defence applications, focus
on mult-sensor singal image and data fusion methods for
detection, classification and recognition applications, data
mining techniques, multframe image blur estimation,
restoration and tracking, internet, web-based distributed
computing and communication employing e-commerce.
Space Sector-Company
• MDA: Advanced robotics and control systems for
space shuttle and international space station
(system for on-orbit servicing and planetary
missions to explore the Moon and Mars)
• Satellite solutions: turn-key systems for earth
observation, surveillance of space, information
delivery and space science.
• Antennas, digital, microwave and power
equipment for communication and remote sensing
Space Sector-Company
• COM DEV International: the largest
Canadian-based designer and manufactures
of space hardware subsystems, mainly sold t
major satellite prime contractors for use in
communication, space science, remote
sensing and military satellite.
Industry Spending
Example: Automotive
• Annual capital investment in the Canadian
automotive manufacturing sector was $2.8
billion in 2003
• The average annual growth rate is 4 per cent
since 1993.
Partnership
• Auto 21: funding supports top researchers
across the country
• ARDC(DaimlerChrysler Canada and the
University of Windsor): A $500-million
R&D program:alternative fuel, mechanical,
engine/transmission, advanced materials,
emissions, bio-mechanics and vehicle safety
among others.
Partnership
• PACE(Partnership for the Advancement of
Collaborative Engineering Education): A
$240-million program. PACE links GM,
EDS, Sun Microsystems and the University
of British Columbia to focus on R&D in
computer-aided design, manufacturing,
engineering software, hardware and
training.
R&D Institutes working with
Canadian automakers
• Canadian Lightweight Materials Research
Initiative
• Centre for Automotive Materials and
Manufacturing
• Transportation Development centre
• Many others
National Research Council´s
auto-related programs
• CANMET laboratories
• Industrial Manufacturing Technology
Institute
• Industrial Materials Institute
• Natural Sciences and Engineering Research
Council (NSERC)
• Communications Research Canada
What Motivates R&D
To lead, to survive or to die
• Corporate Goal: Strategic and Long Term
• Market driven with a predictable profit
• Upgrading/improving existing product with
technology that became available just now
or soon to be available
• Developing own proprietary technology
What Motivates R&D
• Become a real expert in something: better
than anybody else in every aspect or in one
particular way
• Offer service/product with the best value:
feature, cost, reliability and service
• Become knowledge based, technology
driven in the long run
R&D Objective
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Basic Research
Applied Research
Process Development
New Product development
others
R&D Structure
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Expertise/function based
Project based
The Role of a Program/Project Manager
The Role of a Department Manager
The Role of a Chief, a team leader, an “R&D”
Engineer
• Industry Standard/Regulations and Design Process
• Overall coordination between internal departments
including marketing and sales and clients, deal
with change of specs and schedule
What To Know To Start: The Scope
• What to achieve (specs, report, prototype, product, IP, etc.)
• When to deliver (scheduling: milestones, critical reviews,
demo, certifications )
• Resource available and to be acquired: what is involved,
uncertainty, current technology base, new hiring, or
contracting, lab services, supplier, etc.
• Who does what and for how long: system breakdown, top
down, bottom up; Anybody does feasibility study
anymore? Need an architect and system guy
• Estimate (budget, timeline and risk, are we getting too
technical at this moment?)
Good or Bad
• Within budget and timeline, and allow future
expandability (be careful)
• Well documented and traceable
• Specs/Goal not well defined
• Do not see the real issues: lack of knowledge,
underestimate the challenge
• Change of plan/market/competition
• Supplier/contracting services not cooperating
• Many other aspects!
To Deal With Uncertainties
• Initial estimate: find the right people for the
proposal (constraints, options, trade-offs, task
defined) this is the key
• Watch your resources and secure everything:
ability to foresee things, to adjust and to
coordinate
• Make sure the management is with you
• Stay or change course: Know the subject and the
people, judgment must be made
What To Expect As A New Grad
• Know what is expected of you
• Know how to use your eyes, your ears, and know
when it is time to do your homework
• Don’t be afraid of making mistakes, and go always
one step further, always see options and ask why,
show your diligence, show your willingness, and
show you are trustworthy
• Any need to impress?