Optimizing the closures development process using the design structure matrix

Abstract

Product development processes are inherently complex sets of activities that involve a vast number of connections between participants. Engineers, designers, marketers, financial analysts, and manufacturers all have to receive information, process it, and distribute their decisions back into the system. These paths create information loops that are hidden from the participants on a long time scale and generate non-linear feedback. An analysis of the closures product and process development tasks at a major US automaker prompted the creation of new tools to optimize the ordering, identification of coupled blocks, prioritization of interactions, allocation of resources, and modeling of multiple projects. Ultimately, the analysis predicted a reduction in the average completion time of [approx.] 80%, a reduction in standard deviation of [approx.] 95%, and potential savings of -[approx.] $5B. Unfortunately, many of the suggestions from the analysis run headlong into the organization's structural, political, and cultural environment. Structurally, the automaker is a matrix organization split along functions and program lines, constantly attempting to balance between being a strong component designer and a quality assembler. However, the functional divisions create trouble in viewing and communicating across the entire system, whether that system is the vehicle to be designed or the organization itself. Politically, the atmosphere is dominated by a strong functional orientation, authoritative traditions, and a rigid hierarchy. Culturally, the people seem to be jaded and somewhat fatalistic about the company's future.

(cont.) Managing change in this environment requires effort from the top and bottom of the organization, and must draw on those people inside the organization that can provide an outsider's perspective when addressing both the macro and micro challenges that will appear. Success will require using the organization against itself in order to create the initial changes that will ultimately bring about a long-term turnaround.