The product process organisation relationship in complex development projects

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the product process organisation relationship in complex development projects

market and organizational interdependencies that most often require mutual to study the system development process in its real context, especially in those when breaking down the product structure in system development projects, i.e. Finally, the anatomy has so far been mainly used in relation to a given system . The product–process–organisation relationship in complex development projects . P. Nightingale). Complex Product System InnoÕation Centre, SPRU, Mantell. Design management is a field of inquiry that uses project management, design, strategy, and supply chain techniques to control a creative process, support a culture of creativity, and build a structure and organization Design management is a complex and multi-faceted activity that goes right to the heart of what a company.

The project manager facilitates the start-up of a project and develops the staff, resources, and work processes to accomplish the work of the project. He or she manages the project effectively and efficiently and oversees the closeout phase. Some projects are larger than major divisions of some organizations, with the project manager responsible for a larger budget and managing more risk than most of the organizational leaders.

The function of the project manager can vary depending on the complexity profile and the organizational structure. Defining and managing client expectations and start-up activities, developing the scope, and managing change are functions of the project manager.

On some projects, the project manager may provide direction to the technical team on the project. On other projects, the technical leadership might come from the technical division of the parent organization. Although the functional responsibilities of the project manager may vary, the primary role is consistent on every project. The primary role of the project manager is to lead, to provide a vision of success, to connect everyone involved in the project to that vision, and to provide the means and methods to achieve success.

The project manager creates a goal-directed and time-focused project culture. The project manager provides leadership. Project Control In general, project controls is both the planning function and the function that tracks progress against the plan.

Project control provides critical information to all the other functions of the project and works closely with the project manager to evaluate the cost and scheduling impact of various options during the life of a project. Sometimes accounting functions such as payroll, budgeting, and cash management are included within project controls. On larger projects, accounting functions are typically separate because the accounting culture tracks expenses to the nearest penny, and cost estimating and tracking by project controls can often be off by hundreds and sometimes thousands of dollars.

The lack of definitive information necessitates the development of cost estimates within ranges that are often inconsistent with accounting practices. Separating these two functions allows each to operate within their own accuracy comfort zone. The following are typical activities included within the project controls function: Estimating Analyzing trends and making projections Planning and scheduling Managing change Tracking progress against schedule The project controls team gathers this information from all the functions on the project and develops reports that enable each functional manager to understand the project plan and progress against the plan at both the project level and the functional level.

On large complex projects, some project managers will assign project controls professionals to work within the major functions as well as the project management office. The project controls manager then coordinates activities across functions.

Project Procurement The approach to purchasing the supplies and equipment needed by the project is related to the complexity profile of the project and is, therefore, elaborated on in this chapter; however, the procurement process is discussed in more detail in Chapter 9. A small project with a low complexity level may be able to use the procurement services of the parent organization. In an organization where project resources reside in various departments, the departments may provide the supplies and equipment each team member of the project may need.

The product-process-organisation relationship in complex development projects

Southern College Procurement Organization A college in South Carolina chartered a number of projects to increase the energy efficiency of the college. The project team included members from various college departments. Each department paid for the time, travel expenses, and supplies needed by the team member from their department. Each team member continued to use the computers and administrative support in their department for project work.

The costs for this support was not included in the project budget nor tracked as a project expense. Equipment purchased by the project that was installed to reduce the energy consumption of the college was purchased through the college procurement department and charged to the project.

More complex projects with greater procurement activity may have a procurement person assigned to the project. This same South Carolina college retrofitted a warehouse to create a new training center for industry.

A procurement person was assigned to the project to manage the contract with the construction firm remodeling the space, the purchase and installation of the new training equipment, and the purchase of the supplies needed by the project team.

the product process organisation relationship in complex development projects

All the procurement activity was charged to the project. The procurement person reported to the project manager for better communication on what the project needed and participated as a member of the project team to understand and provide input into the costs and scheduling decisions.

She also reported to the college procurement manager for developing and implementing project procurement processes that met college procurement policies and procedures. The team is responsible for procuring the supplies and equipment such as office supplies and computers needed for the project team and the supplies and equipment such as the training equipment needed to execute the project.

On an instructional filming project, the procurement team would rent set fixtures, office supplies, and computers for the project team to outfit a film crew on location. The procurement team would also purchase or acquire costumes, make-up artists, catering services, camera operators, and other materials needed for filming.

Procurement for Distance Learning Project in South America On the large distance learning project in South America, during the initiation phase of the project, the procurement department arranged for office space and supplies for the design teams in Canada, Chile, and Argentina and offices at the site in Argentina.

As the design progressed, the procurement team managed bids for the computer equipment and bids for the preparation of the campus site. The procurement team managed the logistics associated with transporting equipment from Europe, North America, and Asia to the job site in rural Argentina. After the completion of the project, the procurement team managed the deposal of project property.

On large, complex projects, the procurement team manages at least three types of relationships with companies doing business with the project. Commodity Procurement The largest number of purchased items for most projects is commodity items. Commodities are items that can be bought off the shelf with no special modification for the project.

It is strongly linked to strategy, corporate culture, product development, marketing, organizational structure, and technological development. Achieving a consistent corporate brand requires the involvement of designers and a widespread design awareness among employees. A creative culture, knowledge sharing processes, determination, design leadership, and good work relations support the work of corporate brand management.

Product design management is linked to research and development, marketing, and brand management, and is present in the fast-moving consumer goods FMCG industry. It is responsible for the visual expressions of the individual product brand, with its diverse customer—brand touch points and the execution of the brand through design.

Service design management deals with the newly emerging field of service design. It is the activity of planning and organizing people, infrastructure, communication, and material components of a service. The aim is to improve the quality of the service, the interaction between the service provider and its customers, and the customer's experience.

The increasing importance and size of the service sector in terms of people employed and economic importance requires that services should be well-designed in order to remain competitive and to continue to attract customers.

Design management traditionally focuses in the design and development of manufactured products; service design managers can apply many of the same theoretical and methodological approaches. Systematic and strategic management of service design helps the business gain competitive advantages and conquer new markets.

Companies that proactively identify the interests of their customers and use this information to develop services that create good experiences for the customer will open up new and profitable business opportunities. Companies in the service sector innovate by addressing the intangibility, heterogeneity, inseparability, and perishability of service the IHIP challenge: Services are heterogenous; unlike tangible products, no two service delivery experiences are alike.

Services are inseparable; the act of supplying a service is inseparable from the customer's act of consuming it. Services are perishable; they can not be inventoried. Service design management differs in several ways from product design management. For example, the application of international trading strategies of services is difficult [68] because the evolution of service 'from a craftsmanship attitude to industrialization of services' requires the development of new tools, approaches, and policies.

Whereas goods can be manufactured centrally and delivered around the globe, services have to be performed at the place of consumption, which makes it difficult to achieve global quality consistency [69] and effective cost control.

Business design management[ edit ] Main article: Design thinking Business design management is used in the development of business models.

The business model canvas by Alexander Osterwalder. Business design management deals with the newly emerging field of integrating design thinking into management. The designerly way of problem solving is an integrative way of thinking that is characterized by a deep understanding of the user, creative resolution of tensions, collaborative prototyping, and continuous modification and enhancement of ideas and solutions. This approach to problem solving can be applied to all components of business, and the management of the problem solving process forms the core of business design management activity.

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It represents the adaptation and application of customary management practices, with the intention of achieving a productive [engineering design process].

Engineering design management is primarily applied in the context of engineering design teams, whereby the activities, outputs and influences of design teams are planned, guided, monitored and controlled. The output of an engineering design process [70] is ultimately a description of a technical system.

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  • The product-process-organisation relationship in complex development projects.

Therefore, the domain of engineering design management includes high volume, mass production as well as low-volume, infrastructure. Urban design management[ edit ] Urban design management contributes to the development of urban districts. The newly built HafenCityHamburgGermany. Urban design management involves mediation among a range of self-interested stakeholders engaged in the production of the built environment. Such mediation can encourage a joint search for mutually beneficial outcomes or integrative development.

Integrative development aims to produce sustainable solutions by increasing stakeholder satisfaction with the process and with the resulting urban development.

The integrative negotiation approach emphasises mutual gains. The approach has been applied in land use planning and environmental management, but has not been used as a coordinated approach to real estate development, city design, and urban planning. Urban design management involves reordering the chain of events in the production of the built environment according to the principles of integrative negotiation. Such negotiation can be used in urban development and planning activities to reach more efficient agreements.

the product process organisation relationship in complex development projects

This leads to integrative developments and more sustainable ways to produce the built environment. Real estate development and urban planning often occur at very different decision-making levels. The practitioners involved may have diverse educational and professional backgrounds. They certainly have conflicting interests. Providing prescriptive advice for differing, possibly conflicting, groups requires construction of a framework that accommodates all of their daily activities and responsibilities.

Urban design management provides a common framework to help bring together the conventional practices of urban and regional planning, real estate development, and urban design. The work on Integrative Negotiation Consensus Building [74] and the Mutual Gains Approach [75] provide a helpful theoretical framework for developing the theory of urban design management.

Negotiation theory provides a useful framework for merging the perspectives of urban planning, city design, and real estate project proposals regarding production of the built environment. Interests, a key construct in negotiation theory, is an important variable that will allow integrated development, as defined above, to occur. The path-breaking work of Roger Fisher and William UryGetting to yes, advises negotiators to focus on interests and mutual gains instead of bargaining over positions.

Architectural management can be defined as an ordered way of thinking which helps to realise a quality building for an acceptable cost or as a process function with the aim of delivering greater architectural value to the client and society. Research by Kiran Gandhi describes architectural management as a set of practical techniques for an architect to successfully operate his practice.

Architectural practice was merely considered a business until after the Second World War, and even then practitioners appeared to be concerned about the conflict between art and commerce, demonstrating indifference to management. There was apparent conflict between the image of an architect and the need for professional management of the architectural business.

Reluctance to embrace management and business as an inherent part of architectural practice could also be seen in architectural education programmes and publications. It appears that the management of architectural design, as well as architectural management in general, is still not being given enough importance.

the product process organisation relationship in complex development projects

Architectural management falls into two distinct parts: Office management provides an overall framework within which many individual projects are commenced, managed, and completed. Architectural management extends between the management of the design processconstruction, and project management, through to facilities management of buildings in use.

It is a powerful tool that can be applied to the benefit of professional service firms and the total building processes, yet it continues to receive too little attention both in theory and in practice. Creativity and design in particular as an activity: The creative industry workforce is 3. Creative industries have attained an unprecedented average annual growth rate of 8.

Furthermore, design and creativity has been recognised on a regional and local level as a driving force for competitiveness, economic growth, job market, and citizen's satisfaction.

The investment in creative and cultural industries are considered a significant component of EU growth in the Lisbon Strategy and the Europe strategy; [83] and designers are increasingly involved in innovation issues. To better understand the value of design and its role in innovation, the EU holds a public consultation on the basis of their publication Design as a driver of user-centred innovation [51] and have published the mini-study Design as a tool for innovation.

In addition to the design share in the export of all creative industry products, design can also have a positive impact on all business performance indicators; from turnover and profit to market share and competitiveness.

The research showed that companies that considered design on a higher level of the ladder were constantly growing. With increasing importance of design for the company, design management also becomes more important. The value of design can be leveraged if it is managed well. Research by Chiva and Alegre shows that there is no link between the level of design investment and business success, but instead a strong correlation between design management skills and business success.

Effective design management increases the efficiency of operations and process management, has a significant positive impact on process management, improves quality performance internal and external qualityand increases operating performance. Design management as an innovation process, providing improvements in company performance and processes. Here, these innovations and processes are totally invisible to outsiders.

Beyond advanced design management. Design explicit knowledge is applied to strategic focus and improves the quality of staff. Design management as perception and brand. Design knowledge is applied to corporate difference building and strategic positioning. The historic design management economic model. Design management as an explicit and measurable value for company reputation and stock market performance.

Relation to other disciplines and departments[ edit ] Three different orientations for the choice of design management can be identified in companies. These orientations influence the perception of management and the responsibility of design managers within the organisation. The strategic orientations are; market focus, product focus and brand focus. Market-focus driven organisation often have design responsibility in their marketing departments. Brand-focus driven organisations often have design responsibility in corporate communication.

Depending on the strategic orientation, design management overlaps with other management branches to differing extents: The concepts and elements of brand management overlap with those of design management. In practice, design management can be part of the job profile of a marketing manager, though the discipline includes aspects that are not in the domain of marketing management. This intersection is called "brand design management" and consists of positioning, personality, purpose, personnel, project and practice, [note 16] where the objective is to increase brand equity.

At the operational level design management deals with the management of design projects. Processes and tools from operations management can be applied to design management in the execution of design projects.

the product process organisation relationship in complex development projects

Due to the increasing importance of design as a differentiator and its supporting role in brand equity, design management deals with strategic design issues and supports the strategic direction of the business or enterprise. The debate on design thinking suggests the integration of design thinking into strategic management.