© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/1 The Management of Specifications in Engineer- to-Order Capital Goods Companies Chris Hicks & Paul Braiden, Mechanical, Materials & Manufacturing Engineering Tom McGovern, School of Management.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/2 Background Majority of research in supply chain management in automotive and electronics industries. Investigated supply chain management in ETO capital goods companies. Configuration of ETO companies along continuum from vertically integrated to design and contract. General work on the varying configurations of processes in ETO companies. Used SSADM functional modelling methodology to model internal processes and interactions with customers and suppliers.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/3 Typology of ETO Companies (International Journal of Logistics: Research and Applications 4(1), April 2001)

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/4 Insert FourTypes.doc

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/5 IEEE Tranasactions on Engineering Management 47(4), November 2000, pp1-11.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/6 (International Journal of Logistics: Research and Applications, 2(2), April 1999 pp )

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/7 (International Journal of Logistics: Research and Applications, 2(2), April 1999 pp )

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/8 (International Journal of Logistics: Research and Applications, 2(2), April 1999 pp )

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/9 (International Journal of Logistics: Research and Applications, 2(2), April 1999 pp )

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/10 Outcomes Difficult to forecast demand Tendering success rate low. Many companies had ad-hoc procedures for selecting which invitations to tender should be responded to. Relationship marketing becoming increasingly important. Common requirement to release value from supply chains.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/11 Observations Majority of cost and planning commitments occur during the tendering process. Variety of relationships: adversarial, partnerships, strategic alliances, joint ventures etc. Functional versus technical specifications an important issue.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/12

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/13 Research Agenda Specification, Risk and Value Streams Human Resource Management in ETO companies. Knowledge Management Project planning and optimisation

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/14 Specifications “A written description of a product to guide the development process” (Smith and Reinertsen 1992). Limited research on specifications Nellore investigated “black box” specifications in the automotive industry. CRINE initiative in offshore industry

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/15 Aims Aim is to understand the wider process, significance and dimensions of specifications. Effective supply chain management requires the matching of specifications with suppliers’ capabilities and capacities. To develop a model that is applicable throughout ETO supply chains.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/16 Objectives To understand and model the specification process and its impact on: –Costs –value streams –lead-times –Flexibility –Risk –Innovation –product development. To identify current alternative and best practices in ETO supply chains. To facilitate learning within and across sectors.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/17 Method Analyse various ETO specifications in terms of document content. Analyse the specification process involved in creating, interpreting and decomposing specifications. Develop models of the above.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/18 Analysis of Specification Documents Analyse the language and content of specifications. Purpose of content: –Performance, technical, functional, commercial and through-life requirements –Risk minimisation –Compliance with legal, regulatory and customer requirements. –Project management, quality assurance and financial control. –Legal liability, arbitration arrangements etc.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/19 Analysis of Specification Process Analyse the process of producing specifications for different types of supplier and systems. Analyse the process of interpreting customer specifications –Functional models –Tacit / Explicit knowledge of requirements –Identifying and mitigating risk –Decomposition into internally and externally sourced subsystems Investigate the transmission of specification information within the internal and external supply chains.

© Chris Hicks, Tom McGovern and Paul Braiden, 29/3/2001 SPECS/20 Models Produce: –Functional models –Decision models –Mismatch models –Value stream models Match specification processes to different types of ETO supply chains / companies.