DEFINING THE TWO IMPLEMENTATION METHODOLOGIES

Improving product development performance is becoming an ever-increasing concern of senior management in the manufacturing sector today and is dependent on how well organisations enhance the integration, collaboration, and cooperation between the different processes and disciplines involved (Lettice, 1995; Pawar, 1994). A scarcity of research exists however in the field of product development improvement, specifically to a level that could be deemed useful to potential implementors. To satisfy this current demand, two methodologies have been rigorously developed

and tested that aim to secure reductions in product development lead time and cost whilst increasing the quality and sales potential of the end-product. These methodologies are outlined in the following section with differences in the intentions and circumstances surrounding each application also discussed.

The Fast CE project

The Fast CE research project commenced in August 1993 with the objective of generating an implementation methodology which guides organisations through their product development transformation towards the adoption of CE practises.

This has been achieved through exploration into ‘best practice’ CE and the identification of low-risk, low-cost strategies that aid its rapid introduction.

What is concurrent engineering?

CE has become a widely recognised means for achieving improved product development performance by challenging the logic and practice of the traditionally sequential product development processes (Clausing, 1994). The aim is to avoid the unnatural separation of work into upstream and downstream activities through increased integration, most successfully achieved through multifunctional teamworking. CE can be defined as: “..the delivery of better, cheaper, faster products to market, by a lean way of working, using multidisciplined teams, right first time methods and parallel processing activities to consider continuously all constraints”. (Evans et al., 1997).

This requires radically changing the way products have been traditionally developed within western manufacturing organisations and impacts all aspects of the business.

Outline of Fast CE methodology

The Fast CE methodology (presented in Figure 1) is divided into three stages, each representing a major progression in the product development improvement process. Each stage is activated through an interactive two-day workshop which stimulates discussion, accelerates understanding, and directs concentration towards necessary action.

Stage one is the preparation stage and aims to reinforce the need to change throughout an organisations’ senior management team with the intention of generating their awareness and support to the transformation process. If at the end of this phase, total commitment is not achieved, then transformation attempts should be abandoned as real business benefits are unlikely to emanate.

In the second stage, attention is drawn to the launch of the CE project team, with team members working together to understand how to create multifunctional teamworking so that effective product development can flourish. This stage is only finished when the team have completed the first pilot project and have gained experience of operating within a CE environment for every element of the development process.

Finally, the third stage of the Fast CE methodology (known as the expansion phase) captures the knowledge gained from the initial implementation and identifies how the CE principles can be carried forward into subsequent projects.

The last two stages of the methodology can be repeatedly adopted to launch and review subsequent product development projects. In this way, CE is progressively introduced into the organisation, and gradually becomes the new way of working.

The COGENT project

The COGENT research project commenced in October 1995 and focused on product development improvement across organisational boundaries. COGENT is derived from Latin, meaning ‘to drive forward together’ and aims to rapidly improve and sustain the collaborative product development capability between an (OEM) and its first tier suppliers.

What is co-development?

Industrialists and academics alike have identified the escalating trend towards increased involvement of suppliers in the product development process (Littler and Leverick, 1993). Particularly in the automotive industry, survival and prosperity of the vehicle assemblers will depend upon whether component suppliers will take on a larger role in the extended enterprise through accepting greater responsibility for innovation and getting more deeply involved in the product development process (Leisk and Wormald, 1993). This new way of working has been termed co-development, and can be defined as: “the ability of OEMs to develop competitive products in partnership with their first-tier suppliers” (Wyatt et al., 1997).

Figure 1 Fast CE implementation methodology

Co-development builds on the principles of CE, implying that the product development team not only involves the integration of the traditional organisational functions, but also spans across company boundaries. Through building closer customer—supplier relationships, the joint development processes can be optimised and waste eliminated, typically resulting in significant reductions to overall development time and cost. The approach assumes that co-development improvement is most suited to those organisations currently possessing capable, in-house product development practices, typically operating within a CE environment.

Outline of COGENT methodology

Similar to Fast CE, the COGENT implementation methodology incorporates the three predominant phases of the product development improvement cycle and involves the delivery of multiple, interactive workshops. The activity is lead by the sponsoring OEM who selects appropriate suppliers to participate in the improvement programme, and requests the attendance of the managing director at the first event; once an affirmative decision has been reached, COGENT inspires both parties to jointly communicate and interact at all levels within the organisation (see Figure 2).

The initial stage of the implementation methodology aims to generate a high level of commitment towards the improvement activity within the senior management teams of the collaborating companies. Three workshops are implemented within this stage which progressively increase understanding of the future competitive environment throughout the various management tiers. At the end of this stage, joint targets and objectives for the improvement activity will have been agreed and an aligned schedule for the proposed improvement activity will have been produced including clearly defined roles and responsibilities.

Secondly, the focus of the methodology is shifted towards creating solid foundations for the future co-development relationship through the alignment of the product development processes and project management systems. Subsequently, each stage within the product development cycle is considered, with the

Figure 2 The COGENT implementation methodology

implementation methodology providing the tools and skills required to successfully develop products collaboratively. Refinements to the improvements plan are made throughout the second stage and execution of the transformation efforts initiated.

The third phase is an iterative process which should be reused periodically based on the nature of the co-development relationship and the requirements of the organisations involved. The objective at this stage is to support the joint improvement activity through communicating successes and failures, and sustaining the transformation attempts. The emphasis shifts towards the joint measurement, monitoring and review of the original targets and milestones set in stage one with amendments to the improvements plan being aptly introduced. The co-developing partners reacquaint themselves with the concept of ‘best practice’ to which they are both aspiring and are encouraged to reflect on their existing strategy.

IDENTIFYING AND REALISING THE FACTORS THAT AFFECT THE