ENGINEERING MANAGEMENT IN THE AEROSPACE

INDUSTRIES
BRAM DJERMANI BSIE. MBA. CAAS
PROGRAM STRATEGY AND LEADERSHIP DEVELOPMENT
INDONESIA DIRGANTARA TECHNOLOGY NETWORK OF SEATTLE (IDTNS) / INDONESIA AERONAUTICAL ENGINEERING CENTER (IAEC)
BACKGROUND

 Bram Djermani is Project Initiative – Integration leader Industrial Engineering with 22 years experiences from various companies from automotive to aeronautical.

 He joined Boeing Co. as Industrial engineer in 2008 and held various industrial engineering and lean leadership roles supporting production line, increasing the
production efficiency, coaching and mentoring. Before joining Boeing Co. In 2006, he joined a startup company, First Solar and he held various project manager
roles as manufacturing specialist. He leaded the team on a production design process, standardization process, and customer supports. In 1998, Bram joined
IET.INC as Industrial Engineering Consultant and held various industrial engineering roles supporting the production design, creating a standard process, and
production efficiency. He helped and guided companies as consultant to design production system, to improve their throughput, to teach and to coach lean
principle to clients to 100 companies. His leadership made a great impact both production and management.

 He is a graduate of the University of Toledo, earning a Bachelor’s degree in Industrial Engineering with minor on engineering management. He is also a graduate
from City University of Seattle, earning Master of Business Administration (MBA) with specialty on engineering management. He is a graduate from Embry-
Riddle Aeronautical and Aerospace University, earning Certification on Aeronautical and Aerospace Safety (CAAS).

 He was honored with the team nomination for engineering excellent award in 2017and the award for WBJ Deep dive in 2016, The most valuable Team Award in
2003, The Customer Satisfactory Award in 2004 from IET.INC, The Detroit Axle Chrysler Award of the month of April 2004, and the month of November 2004.

 He has certification on the John Maxwell Team as Leadership trainer for leadership development. He certified as leaders / coach for Work Class Manufacturing
production system and continues improvement from IET.INC and Manufacturing Standard Process from Shingijutsu USA (Toyota Production System Philosophy)

 In the work place, he is also President of Boeing Indonesian Association and the VP of education for Twin Aisle Toastmaster International. Outside the work
place, he is an entrepreneur on building a future franchise and he also involves with IDTNS (Indonesian Dirgantara Technology and Network of Seattle) and
IAEC to help Dirgantara in Indonesia


WHAT IS ENGINEERING MANAGEMENT?
 Engineering management is a career that brings together the technological problem-solving ability of
engineering and the organizational, administrative, and planning abilities of management in order to oversee
the operational performance of complex engineering driven enterprises.

DEFINITION ENGINEERING MANAGEMENT

 The definition implies the following.

(i) Management is a process.

(ii) Management applies to every kind of organization, government, profit making, or nonprofit making.
(iii) It applies to managers at all levels in the organization.
(iv) Management is concerned with effectiveness and efficiency. Effectiveness is producing the product or service
the customer wants in business context with the required functional benefits and product attributes at the price he is
willing to pay. Efficiency is minimization of resources to produce the saleable output.
COMPANIES
The following companies are natural choices for engineering management
 Research and Development
 At organizational levels the following are natural choices for Engineering Management
 Engineering companies
 Manufacturing companies
 Power Plants
 Civil Construction Organizations
 Telecommunications services
 Software companies
 Transport companies
FUNCTIONS
The following functions or departments are natural choices for engineering management

▪ Vendor development department

▪ Industrial Engineering department

▪ Information systems departments

▪ Safety Engineering department

▪ Environmental Engineering department

▪ After Sales Service Department in case of manufactured products

▪ Project Construction

▪ Operation of Power Plants

▪ Operation of Telecommunications Facilities

STRATEGIC TECHNOLOGY MANAGEMENT

 The strategic technology management focuses attention on the realities associated with managing technology.

The general management principles and specific business understanding are essential for effective

management. Sets forth the basics of technology management not only for technology practitioners but for all

managers involved with technology-based enterprises.

 To quote Betz: “For good management, the general principles of management must be adapted and

refined to the special conditions of the process being managed.”

 Management of technology continues to be a major competitive issue and it is very few if any organizations

manage their technologies from an integrative and holistic perspective.

STRATEGIC TECHNOLOGY MANAGEMENT

 According to Betz, with the help of illustrative real-life examples, addresses the critical

issues of this inter- and multidisciplinary field relative to:

❑ Technology breakthroughs
❑ Innovation
❑ Technology strategy
❑ Strategy linkages
❑ Technology partnerships
STRATEGIC TECHNOLOGY MANAGEMENT

In the process, the journey of strategic technology management links the economic goals; the core
competencies; managing innovation in product development but within the project management context:
 1. Technology planning

 2. Invention

 3. Implementation of technology in products and services and manufacturing

 4. Organizational structure

 5. Technology Substitution

 6. Forecasting of the rates and directions of technological change and possible discontinuities

 7. Research strategy and planning.

STRATEGIC TECHNOLOGY MANAGEMENT

 Fundamentals of strategic technology management are:

 1. Relating between the technology and the technology strategy means innovation.

 2. The issue of invention as a pioneer to innovation.

 3. The clear distinctions between incremental and radical innovation to associate with technology management
principles.
STRATEGIC TECHNOLOGY MANAGEMENT

 The links between technology and economic are good relationship, such as:

 1. Technology is not a technology issue but a business issue with all of the uncertainties.

 2. The attended risks and benefits-that technology strategy and product development must also include
production strategy.

 3. A strategic attitude governs business performance and the need for managing the system rather than the
pieces.
STRATEGIC TECHNOLOGY MANAGEMENT

 “In exploration, the strategic attitude is more important to success than is the strategic plan. It’s the
attitude that allows exploration and exploitation of unplanned opportunities.”

 The contrasts between strategic planning to strategic attitude are

1. Strategic attitude recognizing science as a strategic source for a strategic technology attitude. Strategic attitude

crosscuts all the management of technology related issues.

2. The strategic attitude provides flexibility for taking advantage of the unplanned.

In contrasts, intuition and analysis suggest that intuition arise from perception and commitment, and it creates a
goal while analysis details the perception of and commitment to reach a strategic goal.
STRATEGIC TECHNOLOGY MANAGEMENT

Four keys on the strategic Technology Management:

 1. Management of technology is built on innovation-innovation not only in science and engineering but innovation in
all disciplines involved in the process and links innovation with product development and project management.

 2. Planning Technology. Betz provides an excellent example of the technology planning process in a ’diversified
firm. He emphasizes the need to integrate technology change with business development. They are different sides of
the same coin.

 3. Emphasis on strategic attitude. In regards to R&D, he develops a logical argument that technology planning in
R&D is not so much the planning of research as the development of a business focused strategic attitude in the
research community.

 4. Technology planning process is to emphasize the economic impact of technical progress. “Invention is the
creative process in which new logical ways are imagined to manipulate nature for human purposes.”
 STRATEGIC TECHNOLOGY MANAGEMENT
 There is a series of linking between the technology to nature and to logic. The role of morphology and function
are included on the issue of implementing technology in products and services and in production. To emphasizes
strategy transfers of new technology to new products and services and subsequently to manufacturing.

 There are several keys that are needed to follows:

1. Products and services are imbedded with new functionality impose additional risk that must be reevaluated.

2. Optimization of product performance must be managed within the technological and economic constraints
of the firm.

3. Spanning the new product technology to a manufacturing continuum requires manufacturing technology
innovation that is incremental and continuous. Those new technologies require early cost benefit analysis in
manufacturing.
STRATEGIC TECHNOLOGY MANAGEMENT - KEY ROLES AND VALUE

 Industrial structure plays a role in management of technology. Strategic Technology Management

focuses attention on the relevant technologies of the firm and their competitive value. The
competitive factors through illustrations are based on many different industries and provides insight and
approaches for both technology and product benchmarking. Some concepts for analyzing economic
value-adding in identifying a firm’s relevant technologies

 Technology Substitution and focuses on technology diffusion as well as substitution. These concepts and
develops the techniques for estimating the rates at which new technologies may penetrate markets by
substituting for products and processes based on older technologies.
STRATEGIC TECHNOLOGY MANAGEMENT - COMPANIES

Strategic Technology Management brings a new view for dealing with or embracing the
concepts related to managing technology to demonstrate principles. Those mini-case
histories come from organizations such as
1. Ford / GM / Toyota / Hyundai/ Tesla

2. IBM (From hardware to Infra structure)

3. Microsoft ( From Software to infra structure)

4. Pratt & Whitney / Roll Royce / GE Engine

5. Google / Yahoo

6. Airlines (Passenger vs Cargo)

7. Space X / Blue Origin vs Government Support Rockets

8. Amazon ( From book seller to the largest online store)

ENGINEERING MANAGEMENT AS STRATEGY PLANNER - AVIATION

 Every company has a different culture and engineering management is not a title within the company. The company
has a several department likes, business operation, commercial program, coordination program, strategy program
and so on, which is engineering management become a part of the process.
 The key when you have an engineering management degree as your part of your education, is seeing the
opportunities on all different aspects.
 The next several pages, how we are trying to understand the risk in aviation industries in the world. All aviation are
thinking a like and they are competing to become number one.
THE CURRENT RISKS IN THE AVIATION INDUSTRY
 According to Ernst & Young, understanding the aviation industry's biggest challenges and issues in 2019,
and in the future, will enable companies to gain a competitive edge in the race for sustainable, profitable
growth.
 There risks are real any thing change, it will be impacting the real ecosystem on the aviation industries. These
risks will affect the very core of aviation companies and present new issues for the players within the aviation
industry.
 Understanding the strategic planning and the financial are the key during the any downturn. Their strategic
initiatives will be tested, their financial position could be threatened, their global operations will be pressured, and
they will need to adapt to new compliance requirements in the different markets in which they operate. The
aviation must be agile enough to survive and to adapt on the new strategy in order to recovery.
 There are ten risks will make the aviation industries tumble and they need to watch out or they will be out of loops.

Source: https://blog.satair.com/ten-risk-in-aviation-industry
10 RISKS WILL MAKE THE AVIATION INDUSTRIES TUMBLE AND THEY
NEED TO WATCH OUT OR THEY WILL BE OUT OF LOOPS.

 Risk 1: Volatility in the geopolitical and economic environment

 Risk 2: Managing the supply chain
 Risk 3: Competition in domestic and international markets
 Risk 4: Managing and retaining talent in the aviation industry
 Risk 5: Ability to perform in key contracts
 Risk 6: Compliance with a wide range of regulations and restrictions
 Risk 7: Incapacity to innovate
 Risk 8: Failure to realize the benefits of M&As and partnerships
 Risk 9: Exposure to cybersecurity events
 Risk 10: Foreign currency and commodity price fluctuations
Source: https://blog.satair.com/ten-risk-in-aviation-industry
 STRATEGIC TECHNOLOGY MANAGEMENT
THE FUTURE OF AVIATION: A DEFINITIVE GUIDE TO THE NEXT 20 YEARS
STRATEGIC TECHNOLOGY MANAGEMENT – KEY SUCCESS /ISSUES

 The keys success on the Strategic Technology Management are based on :

1. Forecasting of Market Conditions,

2. Rates of Technological Change,
3. Directions of Technological Change
4. Technology Discontinuities.

 These four issues draw attention to the sources of knowledge available for predicting future. events, actions,

and results. All four focus on anticipating some future events that relate to

1. Technology
2. Products
3. Process
4. Markets
5. The business system.
STRATEGIC TECHNOLOGY MANAGEMENT - FORECASTING

 In the Strategic Technology of technological, forecasting direction of technology is really

important, there are 6 key elements in change procedures for:
 Anticipating market conditions.
 Reasoning rate of technological change.
 Explaining the factors that can invalidate reasoning.
 Analyzing technology as a system from a logic and morphological perspective.
 Analyzing the technology system from a functional perspective.
 Linking the technology system, the business system, and the application system into a
product system.
 STRATEGIC TECHNOLOGY MANAGEMENT – KEY ELEMENTS

 In Strategic Technology Management has two main keys on the research on

technological development:
 1. Research Strategy
 2. Planning Research.
 Research strategy

 How certain methodologies and tools can be used in research that is directed
toward technological progress. It is really important in the scientific theory for
technological innovation and stresses the point that the scientific method is
based on experiment and theory-both being essential to the process of
technological development. This linkage of theory and experimentation facilitates
technological innovation.
THE FUTURE OF AVIATION: A DEFINITIVE NEED TO THE NEXT 20 YEARS

 The top 20 of all things aviation. International Airport Review‘s guide to the 20 defining factors that will change
airport and aviation over the next two decades does not necessarily look at each aspect in order of importance but
crucially includes those we firmly believe to be the 20 innovations, challenges and general phenomena that hold
a valid claim to their inclusion in our list.

Source: https://www.internationalairportreview.com/article/34859/future-aviation-next-20-years/
THE FUTURE OF AVIATION: A DEFINITIVE NEED IN THE NEXT 20 YEARS

 #1 Drones

 #2 AI & robotics

 #3 Cyber security

 #4 Environmental change

 #5 Big data

 #6 In-flight services

 #7 Real-time updates

 #8 Simplified airspace

 #9 Single token

 #10 Self-service

Source: https://www.internationalairportreview.com/article/34859/future-aviation-next-20-years/
THE FUTURE OF AVIATION: A DEFINITIVE NEED IN THE NEXT 20 YEARS
(LIST #11 -#20)

 #11 Apps & beacons

 #12 Airport cities

 #13 Cargo

 #14 Augmented reality

 #15 More accurate meteorological predictions

 #16 The rise of Chinese airport infrastructure

 #17 The low-cost take over

 #18 Blockchain

 #19 Capacity issues and expansion

 #20 The end of the airport/ airline battle

Source: https://www.internationalairportreview.com/article/34859/future-aviation-next-20-years/
SPACEX – FUTURE BUSINESS MODEL
Space Exploration Technologies Corp., doing business as SpaceX, is a private
American aerospace manufacturer and space transportation services
company headquartered in Hawthorne, California. It was founded in 2002 by
entrepreneur Elon Musk with the goal of reducing space transportation costs
and enabling the colonization of Mars. SpaceX has since developed the
Falcon launch vehicle family and the Dragon spacecraft family, which both
currently deliver payloads into Earth orbit.

In 2001, Elon Musk conceptualized Mars Oasis, a project to land a

miniature experimental greenhouse and grow plants on Mars. "This would
be the furthest that life’s ever traveled"in an attempt to regain public
interest in space exploration and increase the budget of NASA. Musk
realized that he could start a company that could build the affordable
rockets he needed. According to early Tesla and SpaceX investor Steve
Jurvetson, Musk calculated that the raw materials for building a rocket
actually were only three percent of the sales price of a rocket at the time.
By applying vertical integration, producing around 85% of launch hardware
in-house, and the modular approach from software engineering, SpaceX
could cut launch price by a factor of ten and still enjoy a 70% gross
margin.
Source: Wikipedia
FUTURE AEROSPACE - NASA SELECTS THREE IDEAS TO PURSUE THAT COULD
HELP TRANSFORM AVIATION
NASA researchers will investigate three innovative
ideas during the next two years to determine if they
are feasible and could benefit future aircraft
designs to make them burn less fuel, lower
emissions and fly more quietly.

Hybrid-electric and all-electric airplanes under

study by NASA, such as the X-57 Maxwell, could
operate more efficiently if its motors generated
less heat and the overall system was better at
shedding the heat. A possible solution to that goal
will be studied during the next two years as part of
the Convergent Aeronautics Solutions project.

Credits: NASA Langley/Advanced Concepts Lab,

AMA, Inc.

Source: NASA Web

STRATEGIC ENGINEERING MANAGEMENT
CONCLUSION

 Strategic Engineering Management provides fundamental information for the practitioner as well as the academic
researcher.
1. it points direction and provides examples of how organizations have dealt with technology related problems and
opportunities.
2. it provides a clear delineation of the issues involved in the management of technology and its importance to business
performance.
3. it increases the breadth of understanding of the role of technology.
4. it provides an understanding of the underlying issues in managing technology.