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Review Article
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Toward a Theoretical Concept of E-Collaboration through Project Management in SMEs for Reducing Time and Cost in New Product: A Review |
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M. Mohammadjafari,
S.Z.M. Dawal,
S. Ahmed
and
H. Zayandehroodi
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ABSTRACT
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Reducing time and efficient project execution is an objective in many industries and project management is one of the important keys for lead the company to this allegation. The project manager needs some tools for lead the firm to the success. Collaboration is one way to success and collaboration has many types, one kind is electronic collaboration. On the other hand, small and Medium Size Enterprises (SMEs) are a part of manufacturing industries. Combining a literature review with our empirical experience we found that relationship between the project manager and related departments for production is essential for reducing time and cost in new product development. In this study, we describe about some definition of project management, E-collaboration, SMEs and new product and review some articles around this area.
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Received: August 16, 2010;
Accepted: September 30, 2010;
Published: November 10, 2010
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INTRODUCTION
Manufacturing industries play a vital role in many countries. SMEs are a part
of manufacturing industries, but they have some limitation for attending and
also for remaining in the market, especially in the global market (Mohammadjafari
et al., 2010a). SMEs cannot compete with big companies, unless, they
attend to customer needs. Small and medium size enterprises (SMEs) are the driving
engine behind economic growth (Mohammadjafari et al.,
2010b). SMEs play a very important role in national economies, providing
job opportunities, act as supplier of goods and services to large organizations
and any lack of product quality could adversely affect the competitive ability
of the larger organizations (Deros et al., 2006).
In this end, they need to increase new product but almost the time for new product
is more than first estimation. One of the ways for reduces time and cost in
new product is collaborative between different departments of one factory. By
investigation in the prior studies, the author found four departments have a
key role in SMEs, these four departments are; department of design, department
of production, department of planning and department of procurement. Collaborative
has many ways and many tools; one of these tools is E-collaboration. As some
authors illustrated that the use of E-collaboration technologies is essential
for supporting projects (Qureshi et al., 2005).
Electronic collaboration technologies have created an information utility that
is accessible, cost-effective and useful for a broad range of applications (Mohammadjafari
et al., 2010a). E-collaboration can play a vital role in addressing
many problems among the participating companies (Mohammadjafari
et al., 2010d). Electronic collaboration technologies have created
an information utility that is accessible, cost-effective and useful for a broad
range of applications. On the other hand, in many industries, project management
has become a way to better working (Mohammadjafari et
al., 2009). Project management is a methodology for managing a project
(Mohammadjafari et al., 2011b).
Project management is an integral part of human evolution and has been considered
in many sciences (Mohammadjafari et al., 2010c).
Project management can be defined as the process of controlling the achievement
of the project objectives (Mohammadjafari et al., 2011a).
In this study, we review and introduce E-collaboration, project management,
new product and SMEs and describe about some study published about reduce time
and cost.
METHODOLOGY
This review study is based on reliable publications. It covers aspects like
SMEs characteristics, scope of reduce time and cost by E-collaboration through
project management approach. The articles are collected from the famous journals
and books related to the topic published since 1996.
There is a poor track record considering on the reduce time and cost by e-collaboration
through project management with together. Just a few studies have been done
around this subject. In order to prove this allegation, the distribution of
published articles per year extracted from Web of Science database is demonstrated
in Fig. 1 and 2. However, the tendency of
publication has shown that E-collaboration, SMEs, project management and new
product are an interesting topic. In order to prove this assertion, the distribution
of published articles per year extracted from Web of Science database is demonstrated
in Fig. 3-6.
Therefore, in order to find out formations, actives and management involvement in the field, we consider to a broader scale of literature. The used references contain approximately 55 articles out of 200 selected articles, which were taken out from 670 pre-investigated items.
E-COLLABORATION
Concept of E-collaboration: For better understanding, the authors describe
the meaning of E-collaboration. E-collaboration is collaboration among different
individuals to accomplish a joint task using electronic technologies (Cai
and Kock, 2009).
The categories and tools of E-collaboration are different, as below:
Categories of collaborative tools: There are four categories of electronic collaboration.
Computer conferencing: Space for asynchronous and threaded discussions
as well for real-time text talk and real-time discussions is provided and files
and documents are shared. There is a possibility that users see and work on
documents simultaneously, or on each others screen, or on a whiteboard
and mailing capabilities are also provided. Audio and video conferencing are
quite common (Bafoutsou and Mentzas, 2002).
Electronic meeting systems (EMS): Meeting conduction is the basic functionality
of the EMS category. Meetings can either be regular (same time, same place),
synchronous (same time, different place), or asynchronous (different time, different
place). Meeting participants are notified through email and have the possibility
to chat, conduct real-time discussions, use audio and video conferencing facilities,
write or draw in real-time on a blank slide, participate in surveys-anonymously
if preferred-and make group decisions, share documents and files, show and annotate
PowerPoint slides, share live software applications and even work simultaneously
on documents. Apart from the work-centered activities, the team also engages
in team-centered activities, including, greeting and seeking additional participants,
introduction and parting. Finally, meeting-centered activities support the meeting
process, including its set-up, maintenance of the agenda and minutes and distribution
of the minutes after the meeting (Poltrock and Engelbeck,
1999; Bafoutsou and Mentzas, 2002).
Group file and document handling: The core functionalities of this category
involve working with documents and files. In the simplest form, users only have
a shared view of files/documents, while advancing; there is also a possibility
for individual editing, document/file management and storing in a central database,
as well as collective authoring and revision of documents. Synchronous work
on documents can also be a part of a group document-handling tool. In addition,
basic communication capabilities, such as e-mail notifications and e-mail, are
provided (Bafoutsou and Mentzas, 2002).
Electronic workspace: The primary idea is to provide teams with a common
space to coordinate and organize their work. Groups can centrally store documents
and files, work with them, solve problems through discussion, keep to-do lists
and address books with information about group contacts and even track project
milestones and project interactions. There are workspaces for different groups
and users may be members of several workspaces with each workspace corresponding
to each project a user is involved with (Bentley et al.,
1997; Bafoutsou and Mentzas, 2002). Table
1 shows this category.
In this study, the author used electronic workspace for the relationship between four departments and project management.
The value of E-collaboration: Collaborative in different industries
is essential for supporting projects. E-collaboration and collaborative tools
bring geographically dispersed teams together for virtual meetings across great
distances.
These results in tremendous time and cost saving, greatly decreased travel
requirements, faster and better decision-making and improved communications
flow throughout the organization (Bafoutsou and Mentzas,
2002). The field of collaborative computing encompasses the use of computers
to support coordination and cooperation of two or more people who attempt to
perform a task or solve a problem together (Borenstein,
1992).
PROJECT MANAGEMENT
Why does project exist?: For better understanding the concept of project
management first, we express why the project exists. First, a project exists
because there is something important and complex to be solved. Second, a project
organization exists because there is a need for a purposeful organization effort
and a high need of coordination in order to execute a number of tasks/activities
(Soderlund, 2004).
What is project management?: Project management is a methodology for
managing a project (Ramaprasad and Prakash, 2003). Project
management, including the tools, techniques and knowledge-based practices applied
to manage the creation of products and services, is becoming an increasingly
accepted and applied discipline across industry sectors (Jugdev
et al., 2007).
Project management is the manner of implementation, of expertise, paraphernalia,
knowledge and modus operandi to an extensive range of activities for the fulfillment
of prerequisite of the specific project (Qureshi et al.,
2009).
Importance of project management: From many industries, project management
has become a way to better working Like Filippov, S has illustrated project
management has become a distinctive way to manage business activities nowadays
(Filippov and Mooi, 2009). Project management is becoming
a key strategy for managing organizational change in contemporary organizations,
with corporations, government, academia and other organizations recognizing
the value of common project approaches and of educated employees for the execution
of projects (Van Rooij, 2009). Most of all, project
managers are in the front-line when it comes to assuring customer satisfaction
(Kirsila et al., 2007).
Project management area: Projects are typically part of an organization.
The relationship between the project and organization varies and that relationship
affects the scope of project management responsibilities. Although, the nature
of project management responsibility varies by organization and by project within
an organization, project management encompasses many areas. The Project Management
Institute's (PMI) list of project management areas, summarized in Table
2, provides a sense of the breadth of the project management task. The Project
Management Book of Knowledge provides the comprehensive description of activities
associated with each area, the interaction of the areas with the key project
management processes described earlier, available management tools and techniques
for each area and input and outputs of each area (Jacobson
et al., 2006).
DEFINITION OF SMALL AND MEDIUM ENTERPRISES
According to Ale Ebrahim et al. (2009) there
are many accepted definitions of SMEs in addition the classifications vary from
industry to industry and from country to a country, different countries accept
dissimilar criteria such as employment, sales or investment for defining small
and medium enterprises. In the absence of a definitive classification, a consensus
has developed around the European Commission (EC) criteria for SME classification;
this definition adopts a quantitative four approach emphasizing tangible criteria,
employee numbers (Fewer than 250 employees), turnover (<50 million) and balance
sheet statistics (<43 million) (Ale Ebrahim et al.,
2009).
Import of SMEs: Small and Medium Enterprises (SMEs) play an important
role to promote economic development (Ale Ebrahim et
al., 2009). In most countries, small and medium enterprises (SMEs) dominate
the industrial and commercial infrastructure (Deros et
al., 2006).
SMEs play a very important role in national economies, providing job opportunities,
act as supplier of goods and services to large organizations and any lack of
product quality could adversely affect the competitive ability of the larger
organizations (Deros et al., 2006). All firms
are indeed the engines of global economic growth (Acs et
al., 1997). SMEs play an important role in flows of foreign direct investment
(Kuo and Li, 2003). SMEs also serve as the key engine
behind equalizing income disparity among workers (Choi,
2003). Small and medium-sized enterprises are increasingly internationalizing
their business activities (Beck et al., 2005).
Strengths of SMEs: For better understanding of SMEs actions, summary information of the SMEs characteristics is listed in Table 3. NEW PRODUCT
New Product Development (NPD) is a business process for developing new products
for a company, whether it is an upgrade of an existing product or a new concept
(either for the company or for the customer). It includes all activities from
the development of an idea or a concept for a product, to the realization of
the product during the production stage and its introduction into a market place
(Hohenegger et al., 2007).
New product development process: New Product Development (NPD) is a
complex process. Unlike most business processes, each instance differs from
the previous ones, its output is not clearly foreseen defined and many of the
activities to be accomplished is knowledge intensive (Carbonara
and Scozzi, 2006). Among them, idea generation, product design, prototype
and engineering are the most relevant (Carbonara and Schiuma,
2004). NPD performance depends not only on the effectiveness and on efficiency
of activity accomplishment, but also on the degree of integration among them.
The integration requires the adoption of mutual adjustment coordination mechanisms,
lateral communications and repeated problem solving techniques (Carbonara
and Scozzi, 2006). Dougherty (1992) identifies three
dangerous routines: actors habit to work within their role and communicate
with the same persons, the use of predefined definitions of the market/technology
relationship and the use of standards and working methods (such as the payback
period, return of investments, etc.) not coherent with NPD (Dougherty,
1992). The degree of integration among the different NPD activities is also
related to the effectiveness and efficiency of the knowledge transfer processes
activated within NPD (Carbonara and Scozzi, 2006). NPD
can be improved by identifying approaches and tools to support the creation
of shared mental models (Carbonara and Scozzi, 2006).
In the literature, few studies deal with methods and tools to support NPD (Presley
et al., 2000). Quality Function Deployment (QFD) and Design To Manufacturability
Charts have been, for example, proposed to support the design of new products
and, in particular, to take into account the needs of customers (upstream) and
anticipate eventual problems with manufacturing (downstream) (Carbonara
and Scozzi, 2006).
KEY FACTORS FOR REDUCE TIME AND COST
In order to succeed, companies must deliver projects on time and within budget
and meet specifications while managing project risk (Raymond
and Bergeron, 2008).The effective factors for reduce time and cost have
been discussed by many researchers. In order to realize the objectives of the
study, only four factors are used. These factors are design, planning, product,
procurement, as shown in Table 4.
Design factor: Zhou et al. (2008) has
supposed a WWW-based collaborative between designer and engineers in the different
department is effective to reduce the amount of reworks and shorten the product
development cycle. The author has developed a www-based Collaborative Design
and Manufacturing System (WCDMS) for integrated mould product development.
Table 3: |
Strengths characteristics of SMEs |
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Table 4: |
The key factors for reduce time and cost based on literature
review |
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However, in the injection molding enterprises, the product information, tool
information and manufacturing information is the most important information
to hold up the collaborative mould product development. Xie
et al. (2002) has presented a www-based information management system
for rapid and integrated mould product development. The system was built in
two parts, information management system and an integrated platform. The first
part includes distributed relational databases, STEP databases and knowledge
bases, WWW Database Tool (WDT) and user interfaces for the different departments
of the company, to manage the product information. The second part includes
a collaborative communication tool, an information access tool, an Incremental
Process Planning (IPP) user interface and a cost optimization model. This platform
is developed by using current WWW development tools. The application tools are
developed as agents that run in a distributed environment. Roemer
and Ahmadi (2010) presented two advances that harmonize production streams
through the manufacturing system for reducing manufacturing lead times. Selvaraj
et al. (2009) has presented that one of the ways for reducing time
and cost is design for manufacturing, the author sketch outs the DFMA considerations
to sheet metal parts considering things such as homogeny of numerical profiles
and integral part design through parts count reduction. M Roberts has defined
the (SAE) service assembly environment including the design phase of a product
is important for Improving product times and the author use the intelligent
networks area (Roberts, 2006). Lifang
et al. (2009) illustrated that modular component parts for designing
product can develop time of new product ,the author prove this idea with mathematic
model. Tan and Vonderembse (2006) has proved the use
of CAD technology develop product development performance (development time,
product quality and design productivity) and to reduce product costs.
Planning factor: Xia-Bao and Li-Xi (2009) has
illustrated that four steps involved defining a project, identifying a critical
chain, setting buffers and constructing the project plan, is important to set
lead-time. For proving an approach the author uses a simulation experiment.
Hebert and Deckro (2010) has proven by combining software
project for planning like Microsoft project and traditional programming concurrently,
the time and cost of construction projects decrease.
Product factor: Xie et al. (2002) has
designed a Web-based information management system in the production line for
rapid and integrated product development. Roemer and Ahmadi
(2010) presented two advances that harmonize production streams through
the manufacturing system for reducing manufacturing lead times. Griffin
(1997) has proved the cross-functional teams are important for development
cycle time. Bashir (2008) has done a modeling of development
time for hydroelectric generators. The model uses three factors, namely, product
complexity, involvement of partners in the development process and generator
speed. Building of the model is based on the use of past data from earlier finished
projects.
Clift and Vandenbosch (1999) contrast the long and
short cycle projects time, the short cycle complex projects run by leaders and
use external sources of information also they were formal in their approach
in NPD project management. However, in long cycle project leaders hold on to
standardize and use less external sources of information. Finally, it is evidenced
short cycle complex projects require a different type of management process.
Procurement factor: Langerak and Hultink (2008)
has proven five factors is important for acceleration approaches on development
speed, (i.e., supplier involvement, lead user involvement, speeding up activities
and tasks, training and rewarding of employees and simplification of organizational
structure). Petersen et al. (2005) has illustrated
that the supplier integration is important for reduce new product time, increase
cost and also better quality. Hartley et al. (1997)
illustrated managing the buyer-supplier interface is important for on-time performance
in product development.
CONCLUSION
In this study, we represented a number of definitions about theoretical of
E-collaboration, project management, SMEs and new product. Our findings emphasis
that SMEs cannot challenge in the market, unless they do their need customer,
for achieving this subject, they have to reduce time and cost for production.
Collaboration is one of the ways to success production in manufacturing. However,
collaboration has some tools; one of these tools is electronic collaboration.
This study is just a review about the importance of some departments in SMEs
for reducing time and cost, these departments are design, planning, procurement
and production. Future research can improve new product by this information
in the manufacturing companies.
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