The role of the network lead company in integrating new product development processes across strategic partners

In today's network world, advancement in new product development (NPD) is being driven by different types of networks, joint ventures, alliances, outsourcing and mergers. These business trends have resulted in complex organisations and development projects that cross location, company, country and cultural boundaries. The key success is no longer integrating the company's units and activities, but integrating the NPD process across a network of strategic partners. Managing the integration of an NPD process in this increased organisational complexity requires a sophisticated organisation design to facilitate and support the coordination of activities and the flow of information across the network. The research investigates the impact of organisational design of the network lead company (the main company in the network) on the NPD project's integration process elements with external partners and the subsequent effects on performance. The "integration process elements" in this research are: "communication and coordination." I focus on the R&D organisation in the network lead company. Within the R&D organisation, I adopt the project level of analysis and answer the main research question: How can the network lead company design its R&D organisation to support the NPD project's communication and coordination activities with the project strategic partners and improve project performance? The research centres on the integration with strategic partners in whom the network lead company has equity investments (minority holdings). Using data collected from three in-depth case studies of high-tech NPD projects conducted by three network lead companies from different industries, I attempt to extend and merge the knowledge of NPD management and the organisation theory by proposing a contingency model and developing a condition of fit between contextual conditions that characterise the high-tech NPD project and the organisation design of the network lead company. The model suggests that the efficient performance of the development project (shortest, cheapest, and highest quality possible) is contingent on how well the actual intensity levels of communication and coordination fits the required intensity levels. The research also indicates that the required intensity of communication and coordination between the network lead company and the project strategic partners in uncertain and complex project is dominated by the development cycle time (DCT) of the project. Conversely, the actual intensity of communication and coordination between the NPD project team of the network lead company and its project strategic partners is enabled by differentiated combination of R&D organisational attributes: centralisation, formalisation, number of hierarchical levels, team empowerment, and power of the leadership.

Optimalisation des formes d'organisation dans l'industrie de la construction

Philippe Pot

A piece of work carried out by the construction industry, whether a building or a civil engineering project, is not a mass-produced item. It is always a unique piece of work, by dint of its response to the specific needs of the owner and its potential users, its integration or otherwise into a built environment, and its construction on ground whose geo-technical properties are always specific. This unique piece of work, carried out outside on a site subject to numerous hazards, must nevertheless meet the programme's fixed objectives first time round. Unfortunately, unlike most industrial products, it is usually, even nowadays, the outcome of a fragmented approach: designers and builders of the shell of the building and those engaged in the finishings are in fact involved in a segmented and sequential process, without any real interaction between the various disciplines, to the detriment of overall quality and the cost of the end-product. The author of this thesis has had the opportunity, in his professional career in the management of major construction companies, of testing most organisational forms in the sector. He has observed that, depending on the model chosen, they exercise a more or less beneficial effect on quality, costs and time-frames for completing the works, as well as on the capacity for innovation of the participants themselves. The first objective of the thesis was to analyse the strengths and weaknesses of the most common organisational models in the construction industry and to identify factors in the success of the construction process. The second objective was to suggest an original organisational model which would make optimum use of these factors, taking into account modern organisational theory and project management. The first section of the thesis is an historical study of organisational forms of construction from antiquity to the modern times, and examines in particular the relationships between those actively and directly involved (owner, designers and builders) and their relationships in turn with those involved indirectly (users, public administration, finance providers, environmental and heritage protection organisations, laws and standards, etc.). This historical perspective makes a useful contribution because, although much has been written on architecture and architects, especially the most famous among them, and sometimes on engineers, work looking systematically at the organisational forms used in the construction industry over the centuries is rare. This study demonstrates that the fragmented organisation of construction characteristic of the 20th century is merely an accident in the long history of construction; the twenty-five preceding centuries almost always favoured close collaboration between designers and builders and the wonderful works they left behind demonstrate the wisdom of this approach. Study of the history also provides us with a list of the main success factors and the demands to which the successful organisation of construction must respond. The second part endeavours to verify the relevance of the needs drawn, in the light of modern organisational theory, from project management and creativity, and to complete the list. It goes on to analyse on that basis the strengths and weaknesses of the organisational models most commonly used in the modern construction industry and demonstrates that organisation as a design and build, is in the best position at this stage in the research to meet the needs of owners. The third section verifies, through case studies of five pieces of work recently completed or under construction, whether this organisational model effectively satisfies the expectations of those involved in the construction project, simultaneously examining potential improvements. To that end, a series of interviews was conducted in each case study, with a view to eliciting the views of representative participants: owner, operator, user, project manager, architect, engineer and sub-contracting trades. The process was completed with an analysis of the attitude of some public sector owners to the design and build organisational model. Finally, the lessons drawn from these case studies were used to complete the list of success factors already identified. A final section sets out an original organisational model named Integrated Construction Management (ICM), which recommends an inter-disciplinary approach to construction and responds to the success factors identified in the first three sections. It involves a new division of the production process, which provides the owner with a broader and more cost-effective range of innovative architectural and construction options. It also delivers a series of practical recommendations to assist in the application of the proposed model. In conclusion, Integrated Construction Management places the owner at the centre of a transparent and progressive production process, simultaneously removing the majority of the risks involved in construction. Through its inter-disciplinary approach, it offers innovative solutions together with improvements to the overall quality of the piece of work itself on favourable economic terms. Finally, it enables the owner to take informed decisions and to use his or her financial resources as and when the feasibility of the project is confirmed. It is hoped that, as a result, these advantages will be demonstrated through pilot projects carried out using the ICM model, which will without doubt make possible further improvements in performance.

EPFL2005

Expect the Unexpected

Georgeta Geambasu

This study originates from the recognition that project management research is replete with normative theories on what need projects to be successful. However, it has performed worse with respect to assisting the understanding of how and why similar projects do not have similar performances during their life-cycles. It claims that the poor performance of major infrastructure projects, acknowledged by cost overruns and scheduling delays, is due to their lack of resilience when confronted with critical events that are inherent in their life-cycle. Therefore, it addresses the overarching question: How do projects cope with the critical events that occur at some point in their life-cycle? And why and how are some troubled projects able to maintain positive adjustments (cope successfully) while others cannot? By addressing these questions, the first goal of this study is to reveal the "resilience enablers". These are factors and conditions enabling the successful coping process (maintaining performance after the critical event) in projects confronted with unexpected events. The second goal is to translate the new knowledge of "resilience enablers" into recommendations for practitioners to enable them to actually make use of the insight into a troubled project's behavior. To study these questions, a qualitative research design was developed. It is articulated on the exploratory case study of one of the most important infrastructure project of this century. The result consists of two sets of findings, both relate to the critical events' managements and the factors and conditions that enabled the project's resilience. This thesis contributes to project management research with a middle range theory. The project performance can be seen and explained from a new and original perspective of project resilience. It also contributes to the project's management practice with recommendations aiming to help project actors to 1) identify and assess the resilience of their project organization, along with the identification and management of the risks. And to 2) maintain project system performance after the critical event through continuous adoption of risk-focused, and protection-focused strategies, which imply uncostly measures that enable project resilience.

EPFL2011

Industrial challenges in managing product development knowledge

Myrna Fatima Flores Pineda

To systematically create and share product development knowledge creates challenges for engineering companies. This paper presents an extensive study regarding the process of identifying such challenges in managing product development knowledge from the perspective of designers and engineers. This research is part of the LeanPPD, a project funded by the EU-PF7 (www.leanppd.eu), to address the need of European manufacturing companies for a new model, which extends beyond lean manufacturing and incorporates lean thinking into the product design and development process. A rigorous research methodology has been employed, which included the use of questionnaires and focused interviews with key informants from industry, involving forty-two product development engineers from nine different companies. The most significant concerns raised during the study concerned knowledge life cycle activities, product development environment and management. Thirty-eight challenges were identified, classified and discussed in order to provide the knowledge management community with practical evidence, and also to inform future research directions in managing product development knowledge. (C) 2014 Elsevier B.V. All rights reserved.