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Product development is a strategic business process at the company and CCPM is seen as an important support method for this process. Data collection was planned and carried out in three stages, predominantly qualitative: application of questionnaires, direct observation and document analysis.
Questionnaires were administered through face-to-face interviews with five managers chosen for their degree of understanding of the company's product development processes, its portfolio management and of the CCPM method itself. The managers interviewed were: an engineering planning manager responsible for the planning of engineering activities at the company and for the implementation of CCPM in all engineering areas of the company , an engineering manager responsible for the engineering activities of a manufacturing unit of the company , two program administrators,- being one representative from the commercial aviation segment and another representative from the aviation defense segment - and an engineering project management supervisor.
Such respondents are herein referred to as Interviewees 1, 2, 3, 4 and 5 respectively. The questionnaire was organized in three parts with open and closed questions addressing the themes of PDP, PPM and CCPM, always focusing on their application in the case study company. Due to the different degrees of involvement of each respondent in product development and the company's portfolio management, certain questions were not directed to all respondents, and some were not answered by all.
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Data collected during the interviews was recorded, transcribed and analyzed in the light of the research problem. Essentially, based on the literature, the researchers sought to identify which, and how, the methods related to CCPM were utilized by the company through its product development management.
Along with direct observation, the sources were compared triangulation and the data validated. This section presents the company and analyzes the data collected from the case study, identifying the way in which the company conducts their PDP and PPM activities, to assess if and how CCPM supports these activities. The company analyzed in this study is one of the largest in the world, being considered the most important company of its sector in Brazil and figuring amongst the principal national exporters. Founded in the s and established as a joint stock company - in which the federal government was the majority shareholder - the company was privatized in and is currently the leader in the manufacturing segment of commercial jets up to seats.
All those interviewed affirmed that the company has formal mechanisms for taking decisions aimed at defining which product projects should be developed.
This policy is based on the company's own model that includes development process stages as well as the principal processes applicable to its achievement, organization of the development effort and its main procedures. It was emphasized that PID is responsible for coordinating internal and external resource activities, for the generation of the products approved by the Program. The activities of the PID are distributed in macro processes and phases.
The following phases form part of these processes: manage product development, design products, define product and service, detail products and services, develop production processes, develop suppliers, test and certify the product. There are transition criteria between each phase , which function according to stage-gates logic and are the main elements of this process, being the basis for decision making.
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They make up a list of structured questions with a check-list of requirements and documents that demonstrate their completion. In terms of monitoring, there is a multidisciplinary team responsible for conducting the project, whose mission is to deliberate on identified risks. Thus, at each stage there is a processes review with the objective of ensuring the results match the requirements, identifying potential risks, approving the continuation of the project and, if necessary, setting out the recovery plans.
This process is similar to the product development model given by Rozenfeld et al. Despite the differences in phase designation and in the way activities are grouped, the content is similar. For example, in the company PDP, production preparation is included in the Project Detailed and Certification phase, while in the model given by Rozenfeld et al.
The decision regarding which products to develop takes into account the concept of platform, derivative and radically new products. Interviewee 2, in turn, pointed out that there is requirements management where commonalities between products are considered, mainly because there are airplanes of the same commercial aviation or executive aviation family. In this way, commonalities between aircraft of the same family are assured, facilitating future products development, the manufacture of replacement parts and pilot training. Another example given was of the business division aircraft, developed from commercial airplane platforms.
How is it possible to perform in advance of the competitors? The questionnaire results show that the company seeks to integrate the development of products to other company business, using multidisciplinary teams located in the same environment, which means all project objects are wholly considered, in a simultaneous and apparently efficient way.
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Certainly, an important feature of the product development process is the joint participation of suppliers. In general, these are people responsible for the integration of parts and systems on the aircraft as a whole. Moreover, decisions made during the process appear to always take into consideration questions of cost, quality, delivery time, logistics and environment.
There is a project placement rule that takes into account the importance strategic level and cycle of projects in meeting commitments. At this point, estimates of difficulty and duration based on previous project history are carried out. Thus, it is possible to generate a map of needs from a load and capacity simulator from which hiring, subcontracting or any product development postponing decisions are taken.
External aspects of the organization, such as analysis and the anticipation of customer needs, were also cited. The dominant method in decision making is the scoring model. The use of other methods of PPM were questioned, in addition to those found in the literature and mentioned in section 2. According to the company document entitled 'Modifications Portfolio Management', portfolio management aims to analyze project demands coming from different areas of the company and check how they are adhering to the company's strategic plan, with a view to approving the projects that ensure greater profitability, customer satisfaction and better use of resources.
Considered by the majority of respondents as fundamental for the competitiveness of the organization, new product portfolio management is carried out by the company in a similar way to that found in the portfolio selection framework proposed by Chang et al. The company has clear rules on the management of their portfolios, and their projects are compared and prioritized taking into account their importance in strategic terms and project cycles in terms of fulfilling the company's commitments.
The formalization and standardization of the process of new products portfolio management was also identified. The greatest difficulties raised by the respondents are related to the review of priorities and the need to compress schedules due to market pressures and uncertainties.
The method was initially adopted in the commercial aviation multi-project environment and, afterwards, in the executive aviation product development environment. Since then, CCPM has also been adopted for defense aviation. The next step, according to this respondent, is to analyze whether all the concepts are being fully used, to enable further integration across the PPM process.
The allocation of the resources pool is carried out weekly, according to the development stages of the projects. Bad multitasking is reduced by the greatest focus possible of the people to projects and the separation of project support activities. The fact that there was project stoppage because of changing requirements from customers was cited.
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He also commented that new reliability levels have been achieved, because the planned durations are now more commonly observed. According to this respondent, by offering a visual way to manage time and allow focus where it is really needed, project quality can be managed. The project management supervisor considered the visibility and agility of the integrated planning of resources as successes tangible and intangible. All the respondents considered the actual implementation of CCPM very successful, although its application in the management of the company's entire PDP cannot be considered complete.
The results indicate that the company uses activity duration estimations and buffers effectively, always seeks to eliminate milestones, and to sequence the activities in accordance with the concept of Critical Chain positioning project protection buffers. Such practices are in accordance with those recommended by Goldratt and Naor et al. One aspect to be considered in the analysis is how CCPM implementation focus has been different in the commercial, defense and executive aviation business unit areas.
Interviews have identified different directions given to CCPM. While commercial and defense areas effectively employ CCPM in the management of its multi-project environments and as support for decisions regarding how projects are run, the executive area uses CCPM as a tool for the evaluation of delivery capacity, in that it analyses the workload in comparison to project demand. Thus, in the executive aviation business unit, the increase observed in project delivery and resource pool productivity, reducing the average lead time of projects and the largest number of projects concluded in the period, may be more strongly related to an general increase of team maturity in project management practices.
In turn, in the commercial and defense aviation segments, advances in identified multi-project environment management seem to have a high relationship with the adoption of CCPM. Additionally, the study has identified that project and resource managers have a key role in driving the multi-project management environment through CCPM application. The resource management has the responsibility to appoint professionals suited to each task, while the project management are responsible for establishing the expectations of time, cost and quality of the projects, the necessary communication to the different project stakeholders and the clear benchmarks for staff in performing their duties.
Documents and reports, for the year , present numerical evidence of the results from the application of CCPM in the commercial aviation business unit, as well as some intangible results, confirming why they consider it to be such a successful application:. In addition, the company's satisfaction with the implementation of CCPM is confirmed by its intention to adopt it in other areas and operational units. On the other hand, questioning the methods and CCPM tools used by the company, the data collected indicates that CCPM has not been fully adopted by all business areas of the company, which may mean some potential for additional improvement.
Chart 1 summarizes the perception of respondents 1, 3 and 5 regarding the use of these techniques and tools. Respondents 2 and 4 preferred not to respond to questions regarding techniques used in the company. The scores shown in the Chart conform to the following criteria: 1- Not known, 2- Known, but not applied, 3- Known and partially applied and 4 - Known and fully applied. The Chart shows a higher degree of adoption of CCPM techniques and tools in the perception of respondents 3 and 5, managers working in the commercial aviation segment, as well as a convergence of these perceptions, which confirms the strong presence of CCPM in this area.
Another important point refers to an apparent disagreement with the results provided by respondent 1, perhaps because this person has a more global vision of the company and the assessment is that implementation of CCPM is only partial in some areas. From the Chart, it can be seen that estimated activity durations with elimination of individual securities, sequencing of activities according to critical chain, allocation of buffers to protect projects against uncertainties, buffer management and sequencing of projects are techniques utilized effectively throughout the company.
However, the use of the full-kit concept, and project freezing and thawing are not, or only partially, employed by the company.
According to the nature of the product manufactured and due to the need for better control of deadlines due to possible changes in the product, the use of CCPM is seen in activities related directly to product development, such as definition, detail, testing and product certification. The utilization of CCPM in manufacturing activities or development of suppliers was not identified. As CCPM was not implemented for the management of a product that is being discontinued, its use in the PO phase out process was not identified.
To this effect, the study throws light on PDP and PPM field of knowledge, contributing to the principal methods recommended by the literature. The use of these methods can provide managers involved in PDP with tools for improving the selection of new product designs, as well as prioritizing those that best meet the company's strategy. To improve the performance of PDP and its innovation in companies, the systematization of PPM methods can provide essential information for managers.
The field research produced evidence that the organization studied has achieved positive results in the management of its new products development projects by means of the application of CCPM. In relation to PPM, this study reinforces the view that it is a relevant factor for good company performance.
The use of formal implementation methods may support prioritization decisions, resource allocation and strategic alignment, minimizing the risks of a new product project being unsuccessful.
It can be seen that CCPM techniques such as the elimination of individual securities in the estimates of activity duration, sequencing of activities according to critical chain, allocation and management of buffers, and project sequencing in multi-project environments are used effectively in the scheduling of products development project activities at the company.
This CCPM-based prioritization of projects seems to bring highly positive benefits for company PPM and the result has been used to formalize commitments with customers and suppliers. The case study identified techniques to combat delay problems in projects that share the same resource, such as introducing buffers between the projects and the regulation for the release of new projects, so that the pace of this release is directly proportional to the resource capacity, whether considered critical or strategic.
Similarly, CCPM contributes in another way to portfolio management by limiting the number of active projects, starting from the premise that, if this limit is exceeded, the projects delivery flow decreases due to the effect of bad multitasking. Despite not being the intention of this study to offer new models or expand the PDP, PPM or CCPM theory, this work reveals its relevance by permitting an empirical contribution to the field of knowledge surrounding these issues. This study also shows that the adoption of CCPM produced substantial gains for the studied company, especially for its commercial aviation unit.
Evidence was found that the implementation of CCPM, initially occurring in one area, should be expanded to other sectors and manufacturing units of the organization; concluding that, in the eyes of the company's senior management, CCPM is seen as strategic in the way it supports its PDP and PPM. This study did not show that CCPM enables direct gains to the quality or costs reduction of projects, but the conclusion, by deduction, is that, from the perspective of time management, the product quality benefit from the use of CCPM.
Goldratt comments that pressures for on-time delivery can lead to cuts in the scope and quality losses. Thus, to improve the flow of projects and on-time deliveries, CCPM may indirectly benefit the quality of products. However, as scope cuts are not allowed in aviation, such indirect benefit was less evident in the case study. As suggestions for future studies on the topics herein addressed, multivariate statistical analyzes of the data collected are recommended for response trend validation and variables qualitative correlation so that it can be said that the extrapolation of the data sampled for a given population is valid.
It is also proposed that implementations of CCPM in other market segments be followed up, in the form of case studies or surveys, as well as investigating potential CCPM contributions in other business processes, in addition to product development and portfolio management.
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Furthermore, given the complexity of interfaces between different management areas through CCPM implementation and its relationships with PDP and PPM, research geared to different perceptions by different groups involved in the application of new project management methodologies could give rise to interesting contributions to change management knowledge fields and organizational culture. Agarwal, A.
Managing multiple projects and departmental performance using buffer burn index. Journal of Academy of Business and Economics, 10 5 , Ahmad, S. New product development: impact of project characteristics and development practices on performance. Journal of Product Innovation Management, 30 2 , Akroush, M.
An empirical model of new product development process: phases, antecedentes and consequences. International Journal of Business Innovation and Research, 6 1 , Avineri, E. Transportation Project selection process using fuzzy sets theory. Fuzzy Sets and Systems, 1 , Blichfeldt, B.