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PRODUCTION/OPERATIONS MANAGEMENT

KEONG LEONG, Feature Editor, Fisher College of Business,
The Ohio State University



Business and Engineering Collaboration: Strategic Partners or Strangers Passing in the Night?

by Vicki Smith-Daniels, Department of Management, Arizona State University


The accelerating evolution of the information age, expanding global markets, and the proliferation of technology have increased the importance of product variety, speed, and flexibility in building and sustaining competitive advantage. This competitive challenge requires manufacturing organizations to confront the need for a fundamental change in the way products and services are designed, produced, and delivered to the customer. Time-based competition, rapid product development, agile manufacturing, and knowledge-based operations are all strategic initiatives to facilitate broad-based manufacturing reform. These strategic initiatives shift the focus of competition from the factory and back room operations to a broader view of operations that encompasses the entire product realization cycle, including product conceptualization, product design, production, distribution, customer service, and product disposal. Competitive manufacturing in this new environment requires a holistic understanding of the entire manufacturing enterprise, especially knowledge of the interdependencies between engineering domains and management disciplines.

In recognition of a trend toward increased collaboration between industry and university business and engineering programs, the Orlando DSI meeting included a number of well-attended sessions on emerging business/engineering integration. Presenters and session participants spoke of the positive support their programs are receiving from industry and students, and the challenges and barriers of implementing multidisciplinary programs at their universities. While these programs differ in scope and content, most of them share a common vision of integrating the technical fundamentals of engineering and a solid grounding of management principles in their curriculum and research programs. In this article, I provide a profile of these emerging programs and encourage POM scholars to take a leadership role in advancing the development of innovative research and educational programs involving joint business and engineering partnerships with industry. I conclude with some discussion of the challenges and barriers most universities have encountered as they move toward greater integration of the two diverse cultures of business and engineering.

Challenge for POM

For the field of POM, this new manufacturing paradigm offers abundant opportunities for multidisciplinary research and education programs with industry. POM has a well-established history of working in common areas with industrial engineering, particularly in the areas of scheduling, inventory, capacity, production planning, queuing, and materials management. To leverage future opportunities, POM faculty must accept a broader-based definition of our discipline that includes not only a spectrum of qualitative and quantitative research methods, but incorporates engineering dimensions of the product realization cycle into our research and teaching programs. There is some evidence we have already moved in this direction. Most recently, Skinner [2] called for the reshaping of manufacturing strategy research in terms of the whole range of policy decisions involved in product realization from engineering design through customer service. Voss and Weich [3] perform field research on how companies are integrating the functions of engineering and production in their operations strategy.

Collaborative Educational Programs

As this new picture of manufacturing emerges, graduates of engineering and business programs will be called on to be not only specialists capable in their area of expertise, but also to be both an operations integrator, and above all, a manufacturing strategist. This is a significant change from the past. Traditionally, business and engineering programs have educated students for organizations that are characterized by functional specialization, economies of scale, and mass production systems. A number of new manufacturing master's programs are emerging that address the need for "next generation" manufacturing capabilities and include a strong foundation in operations management. While individual programs differ in the mix of business and engineering courses, pedagogical approaches, and the nature of industry involvement, graduates of these programs share a deep commitment to manufacturing excellence and an ability to synthesize business and engineering perspectives. A sample list of new master's manufacturing programs include:

  • Arizona State University's Technology MBA and JACMET Program Cal Poly University, SLO's Engineering Management Dual Degree (MBA/MSE)
  • Carnegie-Mellon University's Master of Manufacturing
  • Clarkson University's Master of Engineering and Manufacturing Management
  • MIT University's Leaders for Manufacturing Dual Degree (MBA/MS)
  • University of Michigan's Tauber Manufacturing Institute Programs
  • Northwestern University's Master of Management in Manufacturing
  • Penn State University's Master of Manufacturing Management
  • Texas A&M University's Master of Science in Life Cycle Engineering and Operations Management
  • University of Wisconsin-Madison's Master of Manufacturing and Technology Management
  • Industrially-Sponsored Student Project Teams

Industry continues to stress the importance of graduates with an appreciation for and an understanding of multidisciplinary team decision-making approaches. Many graduate and undergraduate programs have responded to this challenge by offering applied project courses involving business and engineering students. These projects deepen their understanding of integrated manufacturing problems by analyzing an industrial problem and recommending a solution that can be implemented by the sponsoring organization.

There are a number of pedagogical approaches for delivering business/engineering student project experiences. One approach, Cornell's Semester in Manufacturing, was recently profiled in the POM feature column of Decision Line [1]. Other pedagogical approaches for delivering business and engineering student project experiences are being offered by universities such as Arizona State, Auburn, Michigan, MIT, New Hampshire, Stanford, and Tuskegee. While these programs vary in scope and duration, they have all enjoyed strong enrollments and industrial support and feedback have been very positive.

Multidisciplinary Manufacturing Research Programs

The majority of past manufacturing research takes a disciplinary perspective on activities associated with the production function. While many of these studies are yielding positive advances in both academia and industry, our industrial partners often tell us that our research efforts to date have not resulted in significant improvements in the performance of their organizations. Perhaps our lack of success in providing useful knowledge for industry can be attributed to our focus on discipline-based research programs. To realize collaborative research efforts between business and engineering faculty at Arizona State University, we have developed a research agenda for manufacturing. This research agenda was developed from several sources that included faculty focus groups, analysis of research agendas at nationally recognized manufacturing programs, industry discussion, and an examination of federally-funded research programs. This agenda includes six major research groups including:

  • Cultural and Organizational Change
  • Strategic Management of Projects
  • Global Production and Supply Networks
  • Enterprise Information and Communication Technologies
  • Product Modeling and Simulation
  • Rapid Process Realization
  • Implementation Challenges

Almost any new multidisciplinary effort encounters institutional barriers. Many participants of the business/engineering tracks at the Orlando DSI meeting faculty spoke of the common barriers they have faced in implementing joint business and engineering programs at their respective institutions. I have the following story to illustrate the challenges of bringing together faculty from the two diverse cultures of business and engineering. It is titled "The Parable of the Dirt Pile."

"The Parable of the Dirt Pile"

NCE upon a time, there was a Grand Wizard who visited a world-renowned university and discovered a massive dirt pile on its grounds located directly between the Colleges of Business and Engineering. The Grand Wizard immediately went to see the deans of Business and Engineering and explained to them that beneath the dirt pile they could find a pot of gold, the gift of wisdom and knowledge, and a magic carpet to visit far away places. The Grand Wizard told the deans that if business and engineering faculty worked together to remove the dirt pile within the next six months, these treasures would be theirs. Otherwise, the pot of gold, the gift of wisdom and knowledge, and the magic carpet would be moved by the Grand Wizard to another university.

Naturally, the deans expressed strong reservations to the wizard's challenge because they knew faculty had been adding mounds of dirt to this pile for the past 20 years. Given the treasures, however, the deans decided to proceed forward and encourage their faculties to work together to move the dirt pile. Over the first three months of the "dirt removal" initiative, little dirt was moved. Instead there was intense debate between the faculty in business and engineering on how to devise a multidisciplinary strategy for moving this pile of dirt. Not surprisingly, much of this discussion had a strong discipliary flavor and proceeded as follows:

Engineering: "We should not work on moving the dirt pile unless the National Science Foundation announces a prestigious "university dirt removal" program and we are awarded a grant for equipment, graduate students, faculty stipends and overhead."

Business: "Before proceeding on this initiative, we need to address whether moving the dirt pile is in our college's mission and strategic plan."

Engineering: "Moving dirt is not an intellectually challenging problem to work on!"

Business: "Rather than design a technology for moving the dirt, let's study why faculty add dirt to the pile?"

Engineering: "It is not in our performance evaluation to move dirt. The dean's office must change the rules if they want for us to collaborate with business faculty. Besides, a joint business and engineering publication on dirt removal is not likely to be published in the best engineering journals."

Business: "Just tell the wizard we can't move the dirt pile because engineers are difficult people to work with."

Engineering: "If we develop the best technology for dirt removal, then we can move that dirt, receive the pot of gold, the gift of wisdom and knowledge and the magic carpetþand leave those business faculty out of it."

Business: "Why move the dirt ourselves? Those engineers can invent something and move it themselves. We should spend our time romancing the wizard, in hopes of locating other treasures."

Engineering: "Even if we develop the best technology for dirt removal, how are we going to stop faculty from throwing dirt on the pile? Can we theoretically remove dirt fast enough to reach the treasures?"

As this dialogue continued, time was passing by very quickly. After hearing of the lack of progress, the Grand Wizard decided to meet with business and engineering faculty to use her magical powers to convince them that the dirt pile must be moved. Does the Grand Wizard succeed? The final chapter has yet to be written.

Conclusion

Achieving long-term, sustainable integration between business and engineering colleges will require relentless support from all stakeholdersþfaculty, students, industry, professional associations, university administration, and government. Many faculty are skeptical of multidisciplinary integration -- either because they believe multidisciplinary should be an initiative that is undertaken by industry, or they feel that these new programs are short-lived and in the end, joint business/engineering programs can be nothing more than "strangers passing in the night." Successful business and engineering collaboration must be sustained by formal organizational policies that provide appropriate rewards and recognition for faculty who accept the risks and rewards that accompany multidisciplinary collaboration in the traditional disciplined-based university structure. This will be no simple task. But the potential benefits of business and engineering collaboration may be worth the investmentþpots of gold, gifts of wisdom and knowledge and magic carpets. Can we ask for more?

References

[1] Matthews, Ronald, "Cornell's Semester in Manufacturing: An Innovative Graduate-Level Teaching Approach," Decision Line, 27(5), 1996, 7-9.

[2] Skinner, Wickham, "Manufacturing Strategy on the "S Curve," Production and Operations Management, 5(1), 1996, 3-14.

[3] Voss, C. A. and Winch, G. M, "Including Engineering in Operations Strategy," Production and Operations Management, 5(1), 1996, 78-90.



from Decision Line, March 1997, 28(2)