The development of a product does not focus solely on the product design: the development of the manufacturing system must also be integrated into the PD process. There are two ways of managing the PD process: through either Sequential/Serial or Concurrent/Simultaneous Engineering approaches.
3.5.1 Sequential/Serial Engineering approach
The traditional or conventional way of managing a PD process is the serial or sequential approach. This approach is also called the ‘over the wall approach’ and is presented in Figure 3.5.
53 Figure 3. 5: Sequential approach
Source: Researcher´s own construction based on Schroeder (2000:42)
This approach is based on a series of functions, each culminating in a single solution or point. The departments involved in PD each design a best single solution separately and start to work after the previous department has finished. The product design is passed from one department to the next and design and technology are transferred in stages (Schroeder 2000:42).
However Hartley (1992:54) highlights many shortcomings of this sequential approach. As the design is performed in different specialized departments in a sequence, the work is compartmentalized into relatively independent sequential steps. Such compartmentalization causes rivalries between those involved and limits communication. Furthermore, the sequential approach does not enable full participation of all design-related participants in the process, as product specialists reside in various departments in the company and do not work in an integrated manner. This can lead to communication problems, delayed feedback, and many conflicts, which often result in a high number of design changes and product modifications in the later stages of PD.
Takeuchi and Nonaka (1986:137) describe the sequential approach as a ‘relay race’ and contrast it to the concurrent ‘rugby’ approach. In the relay race a highly specialized group of functional specialists passes the baton on to the next group when its work is finished. The functional groups are segmented and in most cases isolated. The project follows highly structured phases and a step-by-step process, moving from one phase to the next after all requirements of the earlier phase are satisfied.
54 While the sequential approach cannot ensure the speed and flexibility required in the highly competitive environment of the new PD, the ‘rugby approach’ on the other hand emphasizes multidisciplinary teams and puts a lot of emphasis on speed and flexibility. This modern approach for managing new PD is holistic and it can act as a change agent, thereby introducing creative ideas.
Takeuchi and Nonaka (1986:145) recommend the more modern approach: companies need to adopt a management style promoting process, learning by doing and effective knowledge sharing in order to achieve speed and flexibility in the development of new products. The implementation of this new approach, so-called ‘Concurrent Engineering’ (CE), will be discussed in the next section.
3.5.2 Concurrent/Simultaneous Engineering approach
Concurrent Engineering is a novel concept originally developed by the Department of Defence and was used for the definition of weapons development, according to Dimancescu and Dwenger (1996:44). This concept embraced all development activities from the initial planning stage until the disposal of weapons systems.
Since the late 1970s companies worldwide have been adopting the CE approach. The first companies were Japanese automakers, Honda, Mazda and Nissan, as reported in Hartley (1992:36-56). The Japanese success, specifically with regard to the shorter lead times, made the U.S. automobile industry aware of a need to make major changes. In response to it the American ‘Big 3’ automotive companies - Chrysler, Ford, and General Motors, started using CE in the mid-1980s.
In recent decades a number of commentators have written about CE and the following sources were reviewed: Takeuchi and Nonaka (1986); Hartley (1992); Hicks (1994:53); Dimancescu and Dwenger (1996); Schroeder (2000:49); Armstrong (2001); Ainscough et al. (2003); Annacchino (2003:333); Kennedy (2003:247); Russell and Taylor III (2003:86); Dym and Little (2004) and Loch and Kavadias (2008).
The literature reveals that the concept has continuously evolved and has been applied in other industries, such as electronics, aerospace and the military sector. The U.S. Air Force uses different terminology and refers to ‘Integrated Product Development. Nonetheless, the concept is the same as in CE, as confirmed by Hartley (1992:56) and Armstrong (2001). While the concepts of Integrated Product Development and
55 Concurrent Engineering are complex and powerful, they are not the chief focus of this thesis. Nevertheless CE will be briefly introduced in the following section.
According to Hartley (1992) CE is ‘a way of life’, as it creates an environment in a company, where people are responsible for ensuring quality for the customer. CE relies on a multidisciplinary team approach and the adoption of certain specific techniques, such as Quality Function Deployment (QFD), Design for Manufacturability (DFMA), Failure Mode and Effect Analysis (FMEA), Taguchi methods, Statistical Process Control (SPC) and many other techniques. CE is a useful concept for companies with performance problems. Greasley (2006:150) points out that CE can reduce time, which is usually wasted while waiting for completion of design work at each stage. In the same context Schroeder (2000:42-49) suggests that problems in a traditional sequential development process can be overcome with application of a simultaneous development process, as presented in Figure 3.6.
Figure 3. 6: Concurrent Engineering approach
Source: Researcher´s own construction based on Schroeder (2000:42)
Figure 3.6 and the theory outlined show that CE strongly emphasizes teamwork as it uses overlapping phases for PD. Various functions, such as Engineering, Purchasing or Marketing, work simultaneously on the product design and development. The integration of multiple functions in cross-functional teams (CFT) plays a crucial role in enabling concurrency. By adopting a CE approach, the product design process will incorporate design of the production process. Moreover, manufacturing experts will
56 become active members of cross-functional teams from the beginning of the project and will ensure that the product will be designed for manufacturability.
The full implementation of the CE approach requires a fundamental cultural change in employees´ attitudes, behaviour and thinking, according to Hartley (1992:246) and Armstrong (2001:229). Furthermore Ainscough et al. (2003:430) argue that the change towards CE will encourage the culture of process improvement and organizational learning. An important aspect is that the change should come from the top - from the senior managers - as their commitment will positively influence the success of CE.
3.6 CATEGORIZATION OF PRODUCTS, PROJECTS AND PRODUCT