MSE 401
Group #1
James Hunter
Kevin Manocheri
Seokki Lee
Meshal Alansari
Khaled Alturkey
Naif Alolaiwi

What is Concurrent Engineering

What is Project Management

WalMart's Implementation of CE

Boeing

Conclusion
James Hunter

Concurrent Engineering (CE) is a systematic approach to
integrated product development that emphasizes the
response to customer expectations. It embodies team
values of co-operation, trust and sharing in such a manner
that decision making is by consensus, involving all
perspectives in parallel, from the beginning of the product
life cycle.
(http://en.wikipedia.org/wiki/Concurrent_Engineering)
James Hunter

CE is also known as Simultaneous Engineering or Integrated
Product Development

CE is relatively new (Last 25 years)
 Institute for Defense Analysis (IDA)

Replaces tradition “Waterfall” method

CE was designed to for the Product Development Stage
 Optimizes engineering design cycles

CE is a long term Strategy

Any successful organization, now, must implement Concurrent
Engineering.

Most apparent in the Aerospace Industry
James Hunter

Advantages :

Integrated Project Management
(IPM)

Integrated Project Teams (IPT)

Optimizes Engineering Design
Cycles

Information Sharing

Reduces Costs (Long Term)

Maximized Quality (200%-600%)

Reduces Development Time (30%-

Disadvantages/Challenges

Large Upfront Investment

Implementation of Early Design
Reviews

Dependency on Efficient
Communication

Software Compatibility

Need for Computer Modeling

Organizational and Cultural Changes
(Anchor draggers)
70%)

Reduces Design Rework (65%-90%)
James Hunter

Project management is the discipline of planning, organizing,
securing, managing, leading, and controlling resources to achieve
specific goals.

A project is a temporary endeavor with a defined beginning and
end (usually time-constrained, and often constrained by funding
or deliverables), undertaken to meet unique goals and objectives,
typically to bring about beneficial change or added value.
Kevin Manocheri

In 1950’s Project management initiated on the construction and defense project
when there was more need for it.

Henry Gantt and Henri Fayol are known as the fathers of project management.
Gantt for creating scheduling and Fayol for introducing the 5 concepts of
managerial functions.

Project management is a technique to control the time, cost, quality and overall
scope of the project.

Key metrics of project management are time cost, performance objective.

Project management’s most usable tools are Gantt chart, PERT, (program,
evaluation review technique), CPM (critical path method), risk Management, and
network Diagram.
Kevin Manocheri

Work Breakdown
Structure (WBS)

Organization Assessment
IOM Check List


CPM/PERT
Gantt Chart
Kevin Manocheri

Advantages :
 Better efficiency in delivering services
 Improved and enhanced customer satisfaction
 Improved growth and development within the team
 Greater competitive edge
 Better flexibility
 Increased risk assessment
 Provides a plan to follow

Disadvantage:

If it’s implemented correctly there is no disadvantage.
Kevin Manocheri

With out descent project management
concurrent engineering would not be
applicable.

Project Management is a Derivative of CE.

Need PM to implement CE successfully.
Kevin Manocheri

Founded year : 1962

Founder : Sam Walton

World`s third largest corporation by Fortune 500

Largest retailer in the world

Over 2 million employees

Success in most countries

Unsuccessful in South Korea
Seokki Lee
Arrival in South Korea : July, 1998
16 stores in South Korea (only 1 in Seoul)
Loss in 2005 : $ 10 million
Sold all 16 stores to largest local retailer
(Shinsegae)
Withdrawing business : May, 2006
Seokki Lee
Major cause of failure
Criteria for failure of CE
Uniqueness of Korean consumers
Unidentified major mission at the beginning,
Ineffective communication with customers
EDLP (Everyday Low Price) strategy
Insufficient resources for planning,
Unidentified external customers
Indifferent products
Not evolving requirements of customers,
Work inflexible with customers
Lack of accessibility / Insufficient stores
Unmodified tasks to optimize the project output,
Lack of communication channels
E-commerce (Online shopping)
Un-established techniques and protocols for
customers
(Walmart)
(E-mart)
Seokki Lee
James Hunter

NPD project was
executed using the CE
implementations:
▪ Boeing’s 777 project
Meshal Alansari
Boeing Commercial Aircraft Division 777 Project:

New technologies:
▪ digital avionics
▪ advanced lightweight materials
▪ dual-engine
▪ two pilot design (%25 less cost per seat-mile)
▪ replacement for 747 family

$4-5 billion to launch first member
of 777 family
Meshal Alansari

Teams provide the primary
integration mechanism in CE
projects.

Three types of teams appeared
in the project:
▪ Program management team
▪ Technical team
▪ Numerous design-build team
Meshal Alansari

Communicating methods included:
 Face to face communication
 Phone conversation
 Document
 Electronic mail

Based on the project focus, a certain
way of communication used:
▪ Project focusing on design quality relied on
formal personation and periodic review
meetings
▪
Project emphasizing development speed
required frequent informal communication
Meshal Alansari
The selected firm included in
the study:
1.
Had substantial experience in NPD
2.
Were developing relatively complex products
3.
Used concurrent engineering methods
4.
Operated in highly competitive markets
5.
Collectively represented a diversity of product
and market needs
Meshal Alansari
The study used a questionnaire containing 29
open-ended questions addressed:
1.
Motivations, risks, and competitive pressures
surrounding the project
2.
Product complexity and technologies
3.
Project scheduling and concurrency
4.
Team personnel, organization, incentives, and authority;
5.
Definitions, motivations, and benefits of CE
6.
Functional interactions and communication modes;
7.
Methods and tools used to promote CE
8.
Barriers and keys to success
Naif Alolaiwi
I.
Program Priorities:
▪ Design Quality
▪ Product Cost
▪ Product Introduction speed
II.
Project Characteristics:
▪ Project Complexity
▪ Innovation
▪ Technical Risk
Naif Alolaiwi
Design Quality

777 project:
▪ Has 500 suppliers
▪ Need 3,000,000 parts
▪ Has 1700 computer workstation
(220 of them in Japan)
▪ New aircraft must prove reliability
with at least 2 years to be FAA
approved
Naif Alolaiwi
Product Cost

Boeing faced significant
product cost challenges
on the 777 project due to
stiff competition from
Airbus and the
deregulation of the
airline industry.
Naif Alolaiwi
Project Complexity

777 project:
▪
7000 people located in countries throughout the world
▪
Boeing placed tremendous emphasis on communication to minimize
risks
Khaled Alturkey

Some of the companies
documented savings in
overall product
development costs of
approximately 20% and
reductions in engineering
design changes of 4.5%50%.
Khaled Alturkey

At least 3 opportunities exist for concurrent
processing:
▪ Simultaneously developing market concept, product designs,
manufacturing process, product structures
▪ Overlapping design disciplines so that system level and
component level designs are produced concurrently
▪ Overlapping of separate but related new products requiring
coordination between NPD programs
Khaled Alturkey

As degrees of overlap among activities become more
intense, decisions that are dependent on information from
upstream processes become more uncertain (more risk)

Successful CE implementation approaches differ
depending on factors such as:
▪ Product characteristics
▪ Customer needs
▪ Technology requirements
Khaled Alturkey

Teams are essential organizational forms for promoting
integration

Team arrangements include: program management team,
technical team, design-build teams, integration teams,
and task forces

The modes, frequency, richness, and formality of
communications among project participants varies
according to information complexity, design, and timing
challenges
Khaled Alturkey

Project Management is needed to implement
Concurrent Engineering correctly.

Need Concurrent Engineering to be competitive
today.

Project Management is a part of Concurrent
Engineering

Generally benefits are greater than the disadvantages
James Hunter