Value Creation through Engineering Excellence (eBook)

Yufeng Zhang is a Senior Lecturer in Operations Management at the Business School of the University of Birmingham, UK. He had an earlier industrial career with responsibilities for project management and new business development, and continues to work very closely with industry. He has researched and published in the areas of engineering management, network operations, international manufacturing, technology management and innovation. Mike Gregory is Emeritus Professor of Manufacturing at the University of Cambridge Engineering Department., UK. He chairs the UK Manufacturing Professors Forum, co-chairs the Manufacturing Advisory Group of the UK Government's Department of Business Innovation and Skills (BIS), and is a member of the supervisory board of the High Value Manufacturing Catapult. Mike is a Fellow of Churchill College Cambridge and of the Royal Academy of Engineering, UK, where he is a trustee.

Preface 5
Acknowledgements 7
Contents 8
Editors and Contributors 11
List of Figures 14
List of Tables 18
The Engineering Value Chain and the main Capability Areas 20
1 Introduction 21
1 High Value Engineering (HVE), the Engineering Value Chain (EVC), and Global Engineering Networks (GEN) 21
2 An Overview of the Book 23
References 26
2 Engineering and Technology Management 28
1 Getting Value from Engineering and Technology 28
1.1 How Do We Exploit Our Technology Assets? 30
1.2 How Do We Identify Technology Which Will Have a Future Impact on Our Business? 31
1.3 How Do We Select Technology for Business Benefit? 32
1.4 How Should We Acquire New Technologies? 32
1.5 How Can We Protect Our Technology Assets? 33
1.6 Engineering and Technology Management—An Integrated Process View 34
2 Case Study 35
2.1 Identification 35
2.1.1 Coordinate 37
2.1.2 Search 37
2.1.3 Filter 38
2.1.4 Analysis 39
2.1.5 Document 39
2.1.6 Disseminate 40
2.2 Selection 41
2.2.1 Case Study: Relative Prioritisation of R& D Projects at BAe
2.2.2 Case Study: Roadmapping an Emerging Energy Technology—Dimethyl Ether in China 42
2.2.3 DME versus Diesel in Two Scenarios 44
2.2.4 Scenario I: DME vs. diesel in 2020 44
2.2.5 Scenario II: DME vs. diesel in 2030 45
2.3 Acquisition 46
2.3.1 Case Study: Acquiring a Differentiating Technology for a New Range of Products at Domino 46
2.3.2 Case Study: Firm-Level Technology Transfer and Technology Cooperation for Wind Energy Between Europe and China 48
2.3.3 Technology Cooperation in Europe and China: Vensys–Goldwind Vensys 49
2.4 Exploitation 53
2.4.1 Case Study: Exploitation of Cross-Business Technology Synergies at GEC-Marconi 53
2.4.2 Case Study: Charting Exploitation Strategies for Emerging Technology 54
2.5 The Case of the Digital Camera 55
2.6 Protection 57
2.6.1 Case Study: BG plc 58
2.6.2 Case Study: Knowledge Sharing in Open-Source Software Projects 59
References 62
3 International Manufacturing and Engineering 66
1 Introduction 66
2 Manufacturing and Its Systems 69
3 Manufacturing Internationalisation Towards Geographically Dispersed Networks 71
4 Manufacturing Externalisation Towards Inter-Firm Collaborated Supply Chains 75
5 Manufacturing Internationalisation: Forming a New Decision Space 77
6 Emergences of International Engineering (Towards GEN) 79
7 Conclusion: Continuous Adaptations of Industrial Systems 85
References 87
4 Engineering Services: Unpacking Value Exchange 92
1 Value Exchange Among Engineering Services 92
2 The Manufacturer’s View: Unpacking Value Through Services 95
2.1 The Importance of Spare Parts 96
2.2 Maintaining the Customer’s Assets 97
2.3 Offering Solutions as a Manufacturer 98
2.4 Process Outsourcing to Create and Capture Value 100
3 The Customer’s View: Unpacking Value for the Company 101
3.1 The Value of Buying Parts to the Machine Customer 103
3.2 Gaining Value from Maintenance 104
3.3 Creating Value from Solutions as a Machine Owner 109
3.4 Thinking About Outsourcing a Process 110
4 Summary 111
References 112
Engineering Network Innovation and Optimisation 114
5 Engineering Design and Innovation in a Global Context 115
1 Introduction 115
2 Open Innovation 116
2.1 Introduction to Open Innovation 116
2.2 How Open Innovation Approaches Can Support Value Creation and Capture for High Value Engineering 117
2.3 Challenges that Need to be Overcome When Using Open Approaches 118
2.4 Summary of Processes/Tools That Can be Used to Support Open Innovation with Different Partners Relevant to Value Creation and Capture in a HVE Context 120
3 Global Product Development 122
3.1 The Impacts on the Product Development Process 122
3.2 The Role of Information in Strategic Decision-Making 124
3.3 Decision-Making in Global Product Development 125
3.4 Recommendations for the Development of a Decision-Making Process in Global Product Development 126
4 Performance Measurement 127
4.1 Performance Measurement System Design 128
4.2 Key Performance Indicators: Leading and Lagging 129
4.3 The Development of Key Performance Indicators for Global Product Development 130
4.4 Application of the KPI Development Toolkit 133
5 Conclusions 136
References 137
6 Engineering in International Business Networks: The Motivations and Practices of Chinese MNCs 144
1 Introduction 144
2 Literature Review 146
2.1 Motivations and Location Choice 147
2.2 Organisational Structures of Internationalised R& D
2.3 Practical Issues Related to Overseas R& D Management
3 Methodology 152
4 Cross-Case Analysis 154
5 Discussion and Conclusion 158
References 159
7 Engineering Value Chain Simulation and Innovation 163
1 Introduction 163
2 The Engineering Value Chain (EVC) 165
3 Agent-Based Simulation 168
4 Modelling Innovation Diffusion: A Case of Effectiveness-Oriented EVC Network Configuration 169
4.1 Background of the Case 170
4.2 Modelling Rationale 172
4.3 Model Design 172
4.3.1 Behaviour of Residential Energy Consumer Agents 174
4.3.2 Model Implementation 177
4.4 Experimentation 178
4.5 Advantages of the Case Study 184
4.6 Energy Policy/Intervention Implications 185
4.7 Limitations of the Case Study 185
5 Discussion 186
6 Conclusion 188
References 188
8 ICT for High Value Engineering Networks 193
1 Technology-Driven Industrial Evolution 194
1.1 The History of Industrial Evolution 194
1.2 ICT-Driven Industrial Evolution 196
2 ICT-Enabled Advanced Manufacturing Technologies and Models 198
2.1 ICT-Enabled Advanced Manufacturing Technologies 198
2.2 ICT-Based Advanced Manufacturing Models 201
3 Trends of the HVE in Major Economies of the World 207
3.1 Germany 208
3.2 The USA 210
3.3 China 212
3.4 Eu 213
3.5 UK 214
3.6 Japan 215
4 Summary 216
9 Engineering Value Chain Modelling and Optimization 219
1 Background 219
2 Engineering Value Chain Decision-Making Problems and Methods 220
3 Decision-Making Based on Optimization Model and Algorithms 223
4 Engineering Value Chain Configuration Model 225
5 Engineering Value Chain Configuration Optimization Algorithm 231
5.1 Problem Representation and Initialization 232
5.2 Crossover and Mutation 237
5.3 Repair Mechanism 238
6 Numerical Example and Discussion 239
7 Summary 240
References 241
10 Engineering Value Chain Coordination and Optimization 245
1 Introduction 245
2 Trust-Embedded Coordination in Information Sharing 250
2.1 Introduction 250
2.2 Modeling Trust 252
2.3 Profit Functions 255
2.4 Experimental Study 262
3 ATP-Based Flexible Order Allocation Optimization in ATO Engineering Chain 263
3.1 Introduction 263
3.2 ATP Pre-allocation Model 265
3.3 Experimental Study 271
4 Conclusions 271
References 273
Future Trends and Implications 276
11 Engineering for Sustainable Value 277
1 Introduction 277
2 Literature Background 279
2.1 Sustainable Manufacturing 279
2.2 Business Model Innovation for Sustainability 281
2.2.1 Product–Service Systems: A Pioneer of Sustainable Business Models 282
2.2.2 Cases of Sustainable Business Models 283
2.3 Sustainable Value 285
3 Conceptual Model of Engineering for Sustainable Value 287
3.1 Factor 1: Life Cycle Value Creation 287
3.2 Factor 2: Sustainable Value Analysis 288
3.3 Factor 3: Comprehensive Forms of Value Analysis 289
4 Sustainable Value Analysis Tool: A Tool for Engineering for Sustainable Value 291
4.1 Development of Sustainable Value Analysis Tool 292
4.2 Use of Sustainable Value Analysis Tool 295
5 Case Studies 297
5.1 Business Model of This Company 298
5.2 Using SVAT to Identify Value Opportunities in the Company 299
6 Conclusion 302
References 303
12 Product Life Cycle Design for Sustainable Value Creation 308
1 Introduction 308
2 Product Life Cycle Design for Sustainable Value Creation 310
2.1 Framework for Sustainable Value-Driven Product Life Cycle Design 312
2.2 Generation of Sustainable Life Cycle Design Solutions by a Modified QFD Approach 318
2.3 Life Cycle Simulation for Sustainable Value-Driven Product Life Cycle Design Evaluation 319
3 CAX–LCA Integration to Support Sustainable Value-Oriented Engineering 323
3.1 Brief Introduction of LCA 325
3.2 Feature-Based Multi-View Life Cycle Modelling 326
3.3 Feature-Based LCA–CAX System Integration to Support Sustainable Value-Oriented Engineering 330
4 Conclusion 332
References 333
13 Engineering and the Skills Crisis in the UK and USA: A Comparative Analysis of Employer-Engaged Education 338
1 Introduction 338
2 Skills Gaps, Capabilities, and High Value Engineering 341
3 Employer-Engaged Education in England and Chicago 346
3.1 University Technical Colleges, England 347
3.2 Austin Polytechnic Academy, Chicago, USA 350
4 Scaling Skills? University Technical Colleges Versus Austin Polytechnic Academy 351
5 Conclusions 354
14 An Industrial Policy Framework for High Value Engineering 361
1 The Context 361
2 The Logic of Economic Policy 362
3 The Statics of Industrial Policy 363
3.1 Basic Approaches to Economic Policy 363
3.2 The Range of Policy Instruments 365
3.3 Social Framework 367
3.4 Physical Infrastructure 367
3.5 Factors of Production 368
3.6 Factors of Consumption 369
3.7 Social Capital 369
3.8 The Targeting of Policies 370
4 The Dynamics of Industrial Policy 370
4.1 Unstable and Uneven Development 371
4.2 Centralisation, Fragmentation, and Decentralisation 372
4.3 European Integration and Globalisation 373
4.4 Growth Management and Growth Promotion 374
5 Conclusions 376
Index 379