Engineering productivity increase with Organization Architectures

Paper #:
  • 2017-01-0248

  • 2017-03-28
Motivation - Ambiguous product targets, access to global markets, innovation pressures, quick product penetration and feedback (less recovery time for corrective measures). Additionally, the major issue with limited resources describe the current situation for engineering management in most R&D organizations. "Do-It-Once and Do-It-Right is the norm in the industry today". Achieving complex global objectives with limited resources comes down to the question of performance. International engineering sites are established globally to push the capacity limits and to increase the productivity by accessing big employment markets of engineering talents - also for lower costs. The combination of complex engineering challenges, globally distributed work packets combined with management directions to optimize resources (availability, cost, performance) - leads to an organizational challenge - global co-engineering. Co-engineering is the extension of simultaneous engineering by the distribution of tasks and responsibilities in a global organization. Different to other global enterprise functions, like sales, the individual engineering staff takes over global responsibilities independent of their own localization. Systems are designed, constructed, implemented or tested in one region for the product release in a different region. Therefor the same level of technology and process knowledge must be established in all regions, or the regional centers have to take over a defined and specialized responsibility. In both cases, engineering organizations need to transfer the technology and process innovation quickly to distributed engineering centers at a much faster pace than yesteryears. This alone requires a strong co-engineering strategy to cope up with. Contribution - This technical report analyzes the current challenges of engineering management in a global co-engineering environment. The relevance and value of a transparent organization overview is described and derived. The Organization Architecture (OA) is explained as tool to achieve the required transparency of globally distributed roles and responsibilities. The relevance of the organization structure is distinguished from the relevance of the process structure in engineering. Where a good process structure is required to achieve product quality (e.g. acc. to Six Sigma) or process maturity (e.g. acc. to SPICE). A method to introduce, maintain and the use of the Organization Architecture is described, including the nomenclature for the necessary organizational elements. The benefits of the OA along those phases are evaluated in an industry use-case. The typical organizational optimizations - identified by the OA - are introduced and explained. The limitations of the OA for optimization of engineering organizations are explained. The possible combination of the OA with other management methods for R&D are discussed. Also, possible extensions to the topics will be elaborated for further research. Relevant for sessions: AE101, IDM110, IDM400
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