Application of production management principles to engineering processes: An explorative study

The capability to develop high quality products and processes constitutes the competitive advantage of many engineering companies. In production management, numerous tools exist for improving both effectiveness and efficiency. This study explores the applicability of these production management principles to engineering management. An academic focus group and engineering managers in seven German companies were interviewed and the application of several methods was identified. The outcomes confirm that the application of production management principles to engineering processes is related to the degree of novelty that is inherent to engineering projects in companies. Furthermore, the application of production-based methods needs to be embedded in a structured engineering process to be useful in a company. However, most engineering management approaches focus on effectiveness rather than efficiency.