Janez Kušar

Giving an offer to a consumer and knowing the average cost of the product (ACP) for the product along the entire production process, depending on the size of the order, can be a very important indicator which also has an impact on the lean production process. This paper presents a mathematical model to analyze the impact of customer changes (changes in the product type, quantity and/or quality) on the lean production process, and thus on the average production price (ACP). Any change in the process could mean a deviation from the lean process, which means an increase of the ACP for the company, which is the main goal of Industry 4.0. The measurements can be performed on all of the operations of the production process in a company, or only the most critical operations in terms of waste can be selected. The model was tested on an example of a product from a Slovenian company. The average cost of the product in the selected work operation turned out to be 71% higher than the optimal case due to an excessive stock of semi-finished products. Excessive stock can lead to a situation in which the product’s own price even exceeds the selling price of the product, which of course leads to the loss of the company.

In order to survive in today’s highly competitive global market, small and medium-sized enterprises (SMEs) have had to transition from sequential to concurrent product development, which significantly shortens development cycles, reduces costs, and ensures high product quality. Despite its many benefits, concurrent product development is still based on detailed upfront planning and cannot address the challenges related to today’s ever-growing uncertainty, constantly changing environment, and unstable requirements. A potential solution to this problem could be in more flexible and value-driven agile project management (APM) approaches, typical of software development. In this paper, we propose a new product development model specifically appropriate for SMEs that combines concurrent product development principles with APM elements. It is designed as a loop of five repetitive steps (macroplan, microplan, iteration activities, review, and retrospective) that are being executed within individual concurrent development loops. The application of the model is presented on a real case example of process development and small batch manufacture of a complex wiring harness. The study reveals many benefits of the proposed model, such as improved communication, faster detection of discrepancies, more effective problem solving, and greater flexibility. A positive impact on project success is also observed.

In this paper, we present the impact of concurrent engineering strategies, methods, and tools on product sustainability. Concurrent engineering can be used to achieve the primary goals of a product realization project: lower costs, shorter times, high quality, and increasing value. Currently, it is important that new products also meet product sustainability goals, such as economic, environmental, and social goals. The sustainability of a product can be influenced the most in the early stages of product development, so in this paper, we present a customized quality function deployment (QFD) method called the house of sustainability, which translates sustainability requirements into technical solutions for a product. A seven-step process for implementing a sustainable product realization project is also proposed, in which the house of sustainability is one of the most important tools. The proposed process is illustrated with an example of a concurrent product realization project in engineering to order production.

In today’s highly dynamic and unpredictable project environment, companies need to be able to manage changes quickly and effectively, otherwise, the final product will not be current and will only go to waste. Traditional project management approaches that focus on planning are no longer efficient and companies are forced to adopt new ways of working. As a result, more flexible agile project management (APM) approaches have emerged over the last decades. Originally developed for the software industry, APM is now increasingly recognized and adopted also by other industry sectors. However, due to some discipline-specific differences, the adoption of APM by non-software companies is challenging and requires many adjustments and high financial input. While the larger organizations have sufficient resources to make such a transition, small and medium-sized enterprises (SMEs) generally cannot afford to do so, and therefore need alternative strategies to increase their agility and stay competitive on the global market. In this paper, we present a case study of a Slovenian medium-sized manufacturing company that implemented only certain APM practices separately and not as part of a structured APM methodology, and still managed to achieve significant benefits: improved communication, faster detection of discrepancies, more effective problem-solving and greater flexibility. The results also suggest that APM practices, even when implemented separately, positively impact project success in terms of both efficiency and stakeholder satisfaction, and can thus help in establishing an economically, socially, and environmentally more sustainable workplace.

Background: To stay competitive in a highly unpredictable market of today, companies must be able to manage project risks effectively. The basis for an effective risk management is a thorough risk analysis. Despite the availability of many different risk analysis approaches, companies can be reluctant to use them, since the models are usually complex and very time consuming. Objectives: The main objective is to present a simple, yet effective risk analysis approach that can also serve as a useful basis for resolving project risks. Methods/Approach: The proposed standard risk analysis approach is based on a standard risk model that deals with risk events and impacts separately and therefore allows for a separate planning of preventive and corrective measures. To classify risks and to represent them graphically, a risk map is used. Results: The use of the proposed approach is illustrated on a die-cast tool development project. The approach proved to be very simple to use and it served as a useful basis for resolving the identified risks. Conclusions: The main advantage of the proposed approach is its simplicity and clarity. It can also be used as a quick decision-making tool in a subsequent risk resolving process.

This paper outlines a risk management method that is based on the use of a standard risk management model and is adapted to the specific nature of infrastructure projects. The standard model can be used to identify and quantify unexpected events in planning and executing a project. The use of a risk map will also be illustrated. A risk map can serve to classify the identified and quantified risk events, depending on the expected loss, to critical risks that call for a more in-depth treatment, and non-critical risks that are normally not monitored, while no measures are foreseen in advance. A risk map is used to determine what the anticipated effects of the measures to mitigate the critical risks will be, and how the anticipated measures enable the transition from a critical risk to a non-critical risk. In this article, the suggested risk management is illustrated using the example of the erection of a reservoir for a hydroelectric power plant. The use of the proposed tools for the identification, assessment, prioritisation, and management of risks proved highly successful. With the use of the proposed risk model, the critical risk events were lowered under the acceptable level of the expected losses.

Companies have to assure their share on the global market, meet customer demands and produce customer-tailored products. With time and production line updates, the layout becomes non-optimal and product diversity only increases this problem. To stay competitive, they need to increase their productivity and eliminate waste. Due to a variety of products consisting of similar components and variants thereof, a huge number of various elements are encountered in a production process, the material flow of which is hardly manageable. Although the elements differ from each other, their representative elements can be defined. This paper will illustrate a methodology for searching representative elements (MIRE), which is a combination of the known Pareto’s analysis (also known as ABC analysis or 20/80 rule) and a calculation of a loading function, that can be based on any element feature. Results of using the MIRE methodology in a case from an industrial environment have shown that the analysis can be carried out within a very short time and this provides for permanent analysis, optimisation and, consequently, permanent improvement in the material flow through a production process. The methodology is most suitable for smaller companies as it enables rapid analysis, especially in cases when there is no pre-recorded material flow.

Cognitive Factors and Risk Management of Concurrent Product Realisation | InTechOpen, Published on: 2017-06-21. Authors: Lidija Rihar, Tomaž Berlec and Janez Kušar