THE COST ENGINEERS - ACostE 2011/CostEngrR… · · 2018-01-17The Association of Cost Engineers...
Transcript of THE COST ENGINEERS - ACostE 2011/CostEngrR… · · 2018-01-17The Association of Cost Engineers...
The Association of Cost Engineers
ACOSTE CONFERENCE 2011
50th Anniversary
www.acoste.org
The Role of the Cost Engineer during
the Early Stages of Design within the
Aerospace Industry: An Organisational
Behaviour Perspective
Lucy Bolton
Socio-Technical Centre (STC)
Leeds University Business School
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Introduction Case Study Organisation
• Multi-national engineering organisation
• Aerospace industry • Long term collaborative relationship with Socio-Technical Centre (STC) over 10 years. • Only group of social scientists in the world working as part of their academic network.
Case Study Project • Runs until Spring 2012
• Part of a wider change initiative which aims to redesign the New Product Introduction process:
‘Pre-work, not Re-work’
• Focus on the cost bidding process during the early stages of design
• Working closely with Cost Engineers involved within the process
Socio-Technical Centre
• Leeds University Business School
• Multi-disciplinary research centre
• Experts in Socio-Technical Systems Theory
(STST)
• Bringing together engineering components and
components of human behaviour within systems
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“We aim to make Leeds leader in the field of socio-technical systems design, to create processes and environments that are a
result of marrying an understanding of human behaviour with technical expertise” (Prof Chris Clegg – Director)
The STC Approach • Systems function at their best when social and technical aspects are
jointly optimised.
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Technology
Systems &
Procedures
Goals &
Metrics
Work &
Structures People
Culture
STST → Organisational Change
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• Though sometimes framed differently, socio-technical principles are shared by organisational change theorists
Clegg’s Socio-Technical Principles
1. Design should reflect the needs of the business, its users & their managers 2. Design involves multidisciplinary
education 3. Design is an extended social process 4. Design is Systemic: All aspects of a
system are interconnected; thus none should take precedence over another in system design.
5. Systems & their design should be owned by their managers & users
Guidelines for Successful Organisational Change
1. Diagnosis of an organisation’s problem is
key for any change programme 2. A multi-disciplinary project team should
be involved throughout the change management process
3. Change should be managed as a continuous process
4. A systems approach to change, encompassing all major business, human, organisational & technical issues
5. End-user involvement with users owning, leading and managing change initiatives
See Clegg (2000); Clegg & Walsh (2004); Antoni (2004); Meyer & Stensaker (2006); Axtell, Pepper, Clegg, Wall & Gardner (2001).
The Application of STST
• Although there is support for STST, the uptake and application of these
principles and practices has been poor.
• Organisations often find it difficult to develop
an integrated approach to change.
• The STST approach maintains that the systems
and their design should be owned by their
managers and users.
• Another key feature of socio-technical design involves multi-disciplinary
education, bringing together people from different roles and disciplinary
backgrounds that have different skills, experience and expertise to offer the
design process.
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Create a “pull not push” with a change initiative (Clegg & Walsh, 2004)
Push
Change
Initiative End-Users
Pull
Change
Initiative End-Users
End-User Ownership
• Change is pushed upon end-users
and handed over only during
implementation
• Resistance to change
• Ineffective at meeting goals
• Change initiative is pulled through
and owned by the people who will
manage and use new ways of
working
• Requires proactive environment
Clegg, C., & Walsh, S. (2004). Change management: Time for a change! European Journal of Work and Organizational Psychology,
13 (2), pp. 217-239.
Multi-disciplinary Approach
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Knowledge
Management
Practitioners
Modellers
Cost
Engineers
Computer
Scientists
Organisational
Psychologists
Technical
Engineers
Socio-Technical Systems
Technology
Systems &
Procedures
Goals/ Metrics
Work &
Structures People
Culture
• When designing an engine an organisation may be very good at looking at
the different systems and considering how they will impact on each other if
changes are made.
• However, a company may not do the same when implementing changes
within the organisation e.g., roles, culture, attitudes, behaviours, working
practices etc.
Objectives 1. Analyse current “As-Is” cost bidding process
with a focus on the ‘social’ aspects e.g., roles,
responsibilities, goals, organisational design,
engagement and information flow.
2. Capture requirements for a new, improved process.
3. Provide a description and associated
process map of the “To-Be” cost
bidding process.
4. Develop a change programme plan to
manage the transition to new ways
of working.
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Methods
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• Participants are at all times end users and their managers
Traditional
Methodologies
• Literature reviews • Questionnaires • Interviews • Focus groups • Observation • Diary methods
Non-Traditional
Methodologies
• Process mapping: Plexus Planning
Process Modelling Tool
• Lessons Learnt
Process Modelling Tools
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Technique/Tool Summary of Feasibility
Plexus Planning Modelling Tool Process models can deal with large networks of dependency; Multi-dimensional
views; Easy to use & understand
P3 Signposting (or CAM) Can create large, complex models; Very academic & training required
ARIS Useful for bringing whole systems together; Complex programme to learn & use
MEGA Strong in design & simulation; Complicated toolset requiring training
Role Activity Diagrams (RAD) Focus on responsibility of roles and interactions; Easy to use & intuitive to read &
understand
Social Network Analysis (SNA) Maps relationships & flows between people; Easy to view and understand; Limited in
representing process
Scenario Planning Strategic planning tool to consider future scenarios; Enables participants to consider
role designs and responsibilities; Encourages participation/engagement; Easy to use
Soft Systems Methodology (SSM) Supports and structures thinking about, and interventions in, complex organisational
problems; Not a very structured approach
Organisational Modelling Tools Effective at visualising organisational systems and increasing their transparency;
Very subjective and can be open to biases.
Process Modelling Tools
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Technique/Tool Summary of Feasibility
Plexus Planning Modelling Tool Process models can deal with large networks of dependency; Multi-dimensional
views; Easy to use & understand
P3 Signposting (or CAM) Can create large, complex models; Very academic & training required
ARIS Useful for bringing whole systems together; Complex programme to learn & use
MEGA Strong in design & simulation; Complicated toolset requiring training
Role Activity Diagrams (RAD) Focus on responsibility of roles and interactions; Easy to use & intuitive to read &
understand
Social Network Analysis (SNA) Maps relationships & flows between people; Easy to view and understand; Limited in
representing process
Scenario Planning Strategic planning tool to consider future scenarios; Enables participants to consider
role designs and responsibilities; Encourages participation/engagement; Easy to use
Soft Systems Methodology (SSM) Supports and structures thinking about, and interventions in, complex organisational
problems; Not a very structured approach
Organisational Modelling Tools Effective at visualising organisational systems and increasing their transparency;
Very subjective and can be open to biases.
“As-Is” System Overview
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Technology •Cost Modelling
•Tools
•Innovation
•New Technologies
Systems & Procedures •The Bidding Process
•Pre-work
•Cost Information
•Cost Optimisation
•Data Reuse
•Iteration
•Systems Thinking
•Long-term Strategy
•Process Management
•Risk Management
•Lessons Learnt
Goals & Metrics •Cost Targets
•Changing Requirements
•Timescales
•Deadlines
•Reviews
•Tracking Cost
Work & Structures •Organisational Structure
•Engagement between teams
•Project Priorities
•Nature of cost
•Global Location
People •Roles & Responsibilities
•Communication
•Cost Ownership
•Commitment/Buy-off
•Team-working
•Resource
•Skills
•Meeting Effectiveness
Culture •Cost Culture
•Openness
•Customer Pressures
•Risk Averse Culture
•Improvement Efforts
Key Findings
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Pre-work
• Too much “invention on the hoof” • Vicious cycle
• Need for off-the-shelf solutions for Engineers to work with
• Pre-work/earlier engagement would also make timescales
more manageable
Risk Averse Culture
•New Technologies can make it difficult for Cost Engineers
to tie down cost
•Commitment issues
Cost Culture
• Cost tends to “come out at the end”
“...It is very dynamic...it
can be hard to try &
keep up...”
“Sometimes you have
to take a leap of faith,
and there is that lack of
faith...a lack of belief”
Key Findings (2)
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Lack of Early Engagement
• Pre-warning for those putting together the cost for a bid
•Difficult to allocate resources
• Better communication of changing requirements
• More engagement and sharing of information
„Over the Wall‟ Communication
• ‘Waterfall method’
• Various disciplines work on
their areas of design before
throwing it ‘over the wall’ to
another function.
• Little integration between
Engineers and the phases in a
process.
• Benefit in recognising systems
as social systems as well as
technical entities.
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Clegg, C.W., Waterson, P.E., & Axtell, C.M. (1997). Software development: some critical views. Behaviour and Information Technology, 16(6): 359-362.
Issues Facing the Cost Engineer • Cost priority compared to other attributes
e.g., weight, reliability
• Cost ownership
• Complex nature of cost
• Recognition
• Established career path
• Systems thinking i.e., the ‘bigger picture’
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“It could be the best process
in the world...but it’s not
going to deliver anything
without the cultural &
behavioural changes as
well...”
Cost Behaviours =
function of (Capability x Motivation x Opportunity x Support)
The four elements of cost behaviours:
• Capability (i.e., involving training, skills, competencies)
• Motivation (i.e., reward, recognition, pay, career development)
• Opportunity (i.e., empowerment, autonomy, role)
• Support (i.e., cost culture, role models, group norms, leadership)
Strengths of the Process
• Awareness of engagement issues
• Co-location
• Team-working ability
• Roles and responsibilities lie in the right place
• Adequate skills
• Improvement efforts evident within the organisation
• Everyone has a desire to get it right
• Cost is slowly becoming more a priority
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Process Mapping
• Issues around the
engagement points
• Need clearer launch
and sign-off points for
cost
• The need for more
consistency and stability
throughout process
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Workshops
• A number of workshops held
following “As-Is” Analysis
– Interactive
– End-users present i.e., cost community
– Bring together key stakeholders
– Validate findings & highlight key issues
• Process mapping:
– Add in activities/actions using post-its
– Iterate
• Requirements capture: – Summarise the key requirements for an improved
cost bidding process
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“To-Be” Requirements • Requirements reported include:
o Earlier engagement -> reduce silo behaviours
o Improve the ‘pass’ between groups
o Improved communication within organisation & with customers
o Pre-warning/improved visibility
o Long-term balance for off-the-shelf solutions
o Further co-location
o Establish the role of the Cost Engineer
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Practical Implications This work will help to: • Ensure that changes are based on genuine business needs • Create practical rather than faddish solutions • Sustain new ways of working through involvement of end-users
• Produce a more efficient cost engineering system • Familiarise the organization with the socio-technical approach so they may
apply this in future change projects
• Create a learning organization that can be more globally competitive
• Put socio-technical design principles on the map in commercial organization change projects
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Job
Crafting
Communication
Effectiveness
Social/Organisational
Networking
Sub-cultures
Organisational
Change
Socio-Technical
Systems Theory
Process
Modelling
Theoretical Implications
• Possible areas of investigation:
Summary • Clear problems with integration, standardisation and
communication due to the existence of several sub-cultures.
• Indicative of systemic problems.
• However, starting to think in a systemic way.
• Reactions very positive as people begin to see potential of the socio-technical approach.
– Showcasing the value of a socio-technical agenda to commercial organisations.
– Cementing socio-technical theory’s place on the academic map.
– Promoting the application of organisational psychology in non-traditional areas of application and amongst other disciplines such as Engineering.
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