Business Policy

1
Business Policy Strategy Chapter Ten

• Murdick, Moor, Babson Tomlinson, Sixth Edition,
  2000

2
What are Research and Development?

• Fundamental or basic research the search for
  new knowledge regardless of possible
  applications.
• Applied Research the search for new knowledge
  needed to solve a current practical problem.
• Development - the application of new knowledge.
  End result is a set of performance specifications.

3
What is Engineering?

• Design Engineering Starts with performance
  specifications and ends with design
  specifications, which describe the product in
  detail so that it may be manufactured.
• Manufacturing Engineering provides the
  specification of equipment and processes to be
  used in production.

4
More Definitions

• Industrial Engineering a broad term for the
  technical and economic problem solving required
  for manufacturing.
• Production Equipment Engineering design of
  unique or specialized equipment used to produce a
  particular part.

5
Role of Engineering and Research

• To contribute to the profitability of the
  business.
• To supply technical advice.
• To design products that can be produced
  economically to meet market needs.
• Technological forecasting

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Role ofEngineering and Research
7
Unified Sense of Direction

• Engineering and Research must work within the
  organizationnot as a shop where technical people
  carry out projects of their own.
• It must work with marketing to make new products
  fulfill needs.
• It must work with manufacturing to achieve the
  optimum quality/cost mix.

8
Putting the Design Process in Action

1. A customer tells the firm about a general need, a
   particular problem, or a particular requirement.
2. The marketing or the R D department identifies
   a problem that calls for the design of a new or
   improved product.
3. R D makes a technical advance that has a
   practical application. Market research and
   economic analysis indicate that a new product
   using the technical advance has a good commercial
   possibility.

9
The Design Process

• An idea for a product is developed by setting the
  characteristics the product should possess.
• These characteristics are called performance
  specifications.

10
Performance Specifications

• Performance of basic and subsidiary functions
• Accuracy of performance
• Speed of performance
• Reliability
• Ease of operation

• Cost
• Producibility
• Maintainability
• Replaceability by successive models
• Optimum materials and process for size of
  manufacturing run

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More Specifications

• Environmental adaptability
• Safety and fail-safe features
• Social aspects (pollution, radiation, sound
  blasts, etc.)
• Legality

• Weight
• Size and shape
• Styling and packaging
• Compatibility with other systems or auxiliary
  equipment
• Ease of transporting and installing

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Figure 10.1 (p.192)

• Specifications
• Development of alternative designs
• Experimenting
• Prototype
• Testing
• Final Production Design
• Production

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E R Problems

• Failure to set objectives
• Attempt to develop products not appropriate
• E R inefficient (budget based)
• Not our fault (Firestone passing blame to
  consumers/Ford)
• Cannot be produced
• Feasibility/market research separate from
  Engineering (research done before start building)

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Major Systems for Analysis

• 1. Commitment of the company to creativity and
  innovation
• (Design of control, assignment of clerical and
  non-technical tasks and the facilities and test
  equipment available)

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Major Systems for Analysis

• Four Basic Organizational Structures
• Functional
• Systems Components
• Line Project
• Matrix or Staff Project

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Planning and Control System

• Time, cost, and performance are basic features
  that must be synchronized and controlled.
• Special progress charts are developed to monitor
  cumulative and monthly performance and costs for
  each task and the project as a whole.

17
The Design Process

• Engineering adds value by adding creative thought
  and analysis to produce a new form of ideas or
  new uses for existing products
• Concurrent Engineering reduces the cycle time
  (the amount of time from the idea stage to
  rolling off the production line). Involving
  multiple departments simultaneously on the front
  end of design can reduce time 40 or more

18
Relationships of E R and Other Components

• Relationship between E R and marketing is
  determined by the technical content of the
  product
• Close informal working relationships do much to
  reduce design costs and expedite manufacture of
  prototypes and production units.

19
Checklist For Analysis

• Demand
• Plant Layout
• Equipment
• Procurement
• Human Resource Management
• ER Planning Scheduling
• Assigning Dispatching Work

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Plant and Layout

• What type of offices are provided for engineers
  and scientists?
• What is the environment of the offices like?
• Is there a laboratory?
• Is there a good technical library?
• Is the location convenient?
• Are there lecture and conferences rooms?

21
Equipment

• Is the equipment, i.e. computers, adequate?
• Are individual desks equipped appropriately?
• Is the test equipment modern?
• Are there good reproduction facilities available?

22
Procurement

• Are engineering budgets reasonable?
• What kind of control do engineers have over
  approval and control of purchases?
• Are policies of procurement clear?
• Are these policies easy to implement?

23
Human Resource Management

• Are the compensation packages sufficient?
• Is the turnover rate reasonable?
• Is there a management development system in
  place?
• Are management styles adequate?

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Engineering and Research

• Are projects and assignments clearly defined?
• Are there evaluation plans in place?
• Do assignments reflect managements objectives?
• What is the reporting structure?

25
Project Management

• Is there a breakdown structure for each project?
• Are jobs clearly identified?
• Is the order system adequate?
• Are there enough expense accounts?
• Is quality defined and measured?
• Is there a cost reporting system?