concurrent engineering

2. POINTS TO DISCUSS:
•What is Concurrent Engineering
•Benefits of Concurrent Engineering

3. • Concurrent Engineering, also known as simultaneous engineering, is a method of
designing and developing products, in which the different stages run
simultaneously, rather than consecutively. It decreases product development
time and also the time to market, leading to improved productivity and reduced
costs.
• Concurrent Engineering is a long term business strategy, with long term benefits
to business. Though initial implementation can be challenging, the competitive
advantage means it is beneficial in the long term. It removes the need to have
multiple design reworks, by creating an environment for designing a product right
the first time round.

4. • Adoption of advanced technology: When firms within all industries in a nation adopt advanced technology, they can
enhance their operations, improve efficiency, and reduce costs. This includes implementing automation, utilizing data
analytics, adopting advanced machinery, or leveraging digital platforms.
• Increased efficiency and cost reduction: With advanced technology in place, firms can streamline their processes, reduce
human error, and optimize resource allocation. This leads to increased productivity, improved operational efficiency, and
cost reduction. For example, a logistics company in Kerala implements a sophisticated route optimization system,
reducing fuel consumption and delivery time.
• Economies of scale and profit maximization: By leveraging advanced technology, firms can achieve economies of scale.
This means they can increase their production volume without proportionately increasing costs, leading to lower average
costs per unit. As a result, firms can maximize their profits by selling more goods or services at competitive prices.
• Positive impact on GDP: The collective impact of all firms within the nation adopting advanced technology and achieving
economies of scale contributes positively to the nation's GDP. Increased productivity, cost reduction, and profit
maximization lead to higher levels of output and economic growth. This, in turn, contributes to the overall wealth of the
nation.
• Reinforcing cycle: The positive impact of technology adoption on the nation's GDP creates a reinforcing cycle. As firms
become more profitable and the economy grows, there is an increased incentive for further investment in technology.
This cycle of technology adoption, increased efficiency, and economic growth continues, leading to sustained wealth
creation for the nation.

6. Why do companies adopt concurrent engineering methods?
The notable business benefits of concurrent engineering make it a compelling
strategy to adopt. Introducing concurrent engineering can lead to:
• Competitive Advantage- reduction in time to market means that businesses gain
an edge over their competitors.
• Enhanced Productivity- earlier discoveries of design problems means potential
issues can be corrected soon, rather than at a later stage in the development
process.
• Decrease Design and Development Time- make products which match their
customer’s needs, in less time and at a reduced cost