Development and validation of a model for successful integration of people, organization and technology in concurrent engineering: A study of 103 electronics manufacturers
The objective of this study is to develop a theoretically based interdisciplinary quantitative predictive model for industrial managers which considers the critical human, organization and technology variables for success in concurrent engineering. For the purpose of validating the proposed model data was collected from 103 electronics manufacturers in the United States. In each company data was collected from the manager of the concurrent engineering effort, team leader and design, manufacturing and marketing team members. Information was collected on a total of 403 items from each company. Of the 403 items 35 comprise the six significant factors which are outlined in the study. The study shows that reward structure and quality of communication are significantly correlated with concurrent engineering performance, while quality of communication is significantly correlated with manager perception of value of communication. The results indicate that organizational and human variables account for 53% of the variance explaining success in concurrent engineering while the technology variables account for only 2%. In using a discriminant analysis based on organizational, human and technology variables the model classified correctly 86 percent of organizations in the top 1/3 and the bottom 1/3 of the companies studied. Companies in the upper 33% profile reduced time to market by 4.8 months (24% more time saved) in comparison to the lower 33% performers. A logistic regression model is presented which provides companies with information on the impact of improving one of the variables in the logistic regression equation and its impact on increasing the probability that the company would be rated in the top 1/3 if they are, for example, ranked in the bottom third with regard to concurrent engineering effectiveness. A checklist for effectiveness of concurrent engineering is developed and a scoring mechanism for electronics manufacturers is included to evaluate organizational wellness for concurrent engineering.
Salvendy, Purdue University.
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