Decision Making in Engineering Management

John Murdoch, University of York Antony Powell, YorkMetrics

24th June 2009 PSM 2010/ Julyyp 08 Workshop

Performance Information Enterprise Project Needs

Objective Integrated Fact-Based Management Data Analysis Decisions Actions

Measurement Application Decision Environment

• Capable Information Process • Decision “Freedom” • Viable Measurement Constructs • Decision - Change Implementation • Both Measurement and Risk Data • Performance Tradeoff Decisions • Performance Analysis • Measureable Performance Feedback • Decision Alternatives • Integrated Context - Portfolio Mgt. • Unfettered Communication • Revised Strategies and Objectives

Source: PSM Project Decision Makers

SUPPLIERS SUPPLIER MANAGERS REGULATORS SUPPLY CHAIN MANAGEMENT ACQUISITION CERTIFICATION MANAGER AND COMPLIANCE

PROJECT DESIGN MANAGER AUTHORITY COMPLIANCE MANAGEMENT CHIEF ENGINEER FUNDERS ENTERPRISE PROJECT MANAGERS DECISION CONFIG MAKING CONTROL COMMERCIAL ENTERPRISE MANAGERS ASSURANCE MANAGEMENT ENGINEERING MANAGER SYSTEMS ENGINEERS SPECIALTY CUSTOMERS ENGINEERS SOFTWARE COMPONENT ENGINEERS ENGINEERS 309 00 ENGINEERING END USERS 0102 MANAGEMENT Source: SSEI Motivation and Objectives

■ Complex defense projects often perform poorly from external perspectives

■ Engineering perspective: strive to develop and support products that are fit for purpose and that use resources as efficiently as possible

■ Hypothesis: better su pport and promotion of the en gineerin g view, integrated through supply chains and through the lifecycle, will produce improved project performance

■ OBJECTIVE: to promote and support engineering, integrated through supply chains & lifecycle; to provide a better balance with other stakeholder interests Supply Chain View T MANAGEMENT TION MANAGEMEN SS VISION: PROCES NT STATE: TRANSI OO EE SERVICE PR PROJECT CURR 01270509a What Hinders Integgggrated Engineering?

■ Individual Level ■ Inter-organizational Level o Insufficient knowledge , experience, o Commercial interests, competition understanding o Low Trust o Insufficient time o Risk transfer o Insufficient information – not being able to detect that a decision, action is needed, o Contracts not being able to understand the situation o Market power sufficiently o Political interests Insufficient generation of solution options o o Difficulty in promoting whole-project interests o Insufficient analysis o Technology optimism o Insufficient support/ guidance information o Perceived transaction costs in short term o Ris k avers ion

■ Organization Level o Insufficient authority – pppass up the mana gement chain; gap between knowledge and authority o Risk aversion o Blocks to information flow o Stake ho lde r issues - diff er en t cri teri a, diff er en t goal s o Different cultures and ‘tribes’ o Bureaucracy Imppggroving Integrated Eng ineering

■ Enabling integrated engineering across contractual, specialty boundaries ■ Balancing engineering ‘realities’ with other stakeholder interests ■ Enabling trade-offs of end-delivered value to users, development costs, schedule, risks ■ Managing delivery of engineering capabilities to projects; enactment,,gypj coordination and integration of activity on a project

■ Managing across boundaries ■ Transition management rather than process management Decision Situation 04190609 Linking Measurement and Decisions

■ Strengthen Engineering Management o Decision guidance plus information need specifications; link to measurement process o Model as decision -making o Develop a reference, generic decision process o Decision planning; architecture; programmed, un- programmed but prepared-for; un-planned o Specialise to EM decision types o Dealing with constraints o Detecting problems EM Process e Information ation Needs vv Inform Effecti Analysis Results and Performance Measures rovement Actions rovement pp Im 01230109 EM Process easurable easurable utcomes ser Feedback ation Needs ve Information ement Actions ii MM OO UU mm vv Infor Effect Impro Analysis Results and Performance Measures rovement Actions rovement Imp 01230109 Solution Map 190609 33 0 Conclusions: How to Improve Integrated Engineering Management?

The workshop will be looking at…

■ Is this the right approach? ■ What’s missing? ■ Are we addressing the right problem? ■ Other approaches, solutions ■ Recommendations ■ Next Steps john.murdoch@ssei . org. uk [email protected]

24th June 2009