Concurrent Engineering is the most effective way to develop products with challenges for functionality, cost, time-to-market, quality, satisfying customer needs, meeting all growth demands. And designing products for all aspects of manufacturabililty. Concurrent engineering eliminates a lot of that wait time by overlapping and integrating tasks. By one estimate, this approach can reduce the total design effort by as much as 30%. Concurrent engineering also speeds the design process by ensuring change requests are kept to a minimum.

Study notes

• Levels: AS, A Level
• Exam boards: AQA, Edexcel, OCR, IB

Simultaneous engineering is part of the time-based management approach. It is a project management approach that helps firms develop and launch new products more quickly.

All of the areas involved in a project are planned together. Everything is considered simultaneously (together, in parallel) rather than separately (in series).

Product teams are set up to include people in all areas that are relevant to the new product – design, development, production, marketing etc.

Suppliers are involved in the new product development so that potential delays in resourcing of raw materials, components and services can be anticipated and avoided

A teamwork approach is used, with all areas involved in the project working on the project at the same time.

The end result is that:

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• The new product is brought to the market much more quickly
• The firm may be able to charge a premium price that will give a better profit margin and help recoup R&D costs
• There is less likelihood of a need to modify the product later due to unforeseen problems
• A greater sense of involvement across business functions improves staff commitment to the project
• This can therefore be a source of competitive advantage (‘first mover advantage’) for the firm if it can get a reliable new product into the market and build brand loyalty before its competitors

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Economics B (2016 Specification) Examiner - GCE A Level

Pearson, Home based

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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