PEM

Integrated Product Development: The Basics

Posted on 07.27.17

Both New Product Development Professionals (NPDP) and Professional Engineering Managers (PEM) are tasked with transforming ideas into commercial realities. In many instances, hope is the main tool deployed to make the transition – we hope to make the technology work and we hope to hit the delivery date. We hope that customer will buy lots and lots of the product and we hope to reap huge profits as a reward.

I am personally a big believer in hoping for the best but as we’ve been taught, we should also add preparation to out toolkit. A positive attitude goes a long way but should be accompanied by a systematic approach to convert those great ideas into marketable products and services. One approach that NPDPs and PEMs can use to transform creative ideas into tangible goods is Integrated Product Development (IPD).

History of IPD

IPD is a waterfall process based on cross-functional, multi-disciplinary approach to product development. In fact, “integrated” means just that – an integrated team and an integrated life cycle perspective of the development program.

For reference, IPD has its roots in software development from the last century. In the 1970s, waterfall processes were commonly used to create code that powered PCs and other computers. A waterfall process is so named because work flows from one level to the next, just as a stream cascades over rocks and ledges to reach its destination.

A typical waterfall process includes the following steps:

Requirements development;
Design specifications based on requirements;
Implementing or writing and structuring of the actual code;
Verification that the product (software code) meets customer expectations; and
Maintenance to identify bug fixes and improvements.

Concurrent Engineering

Another key concept in IPD comes from the principle of concurrent engineering. In unenlightened times, R&D folks would develop a new technology and then hand-off that technology to an engineering team. The engineering team would study the technology and scale it up to production levels. Then, the engineering team would hand-off the full-scale engineering design to a construction team to build the factory. Upon completion of the factory, operations would begin start-up of the plant to eventually manufacture the product.

Not surprisingly, hand-offs between the teams were incomplete and both data and knowledge were lost in the transitions. Sometimes the transitions were so poor that the next internal customer had to rework the technology and design completely. Naturally, all of these hand-offs and rework cycles created delays and added cost to the final product.

The concept of concurrent engineering grew in the aerospace industry in the 1990s in order to improve quality and time-to-market. Concurrent engineering describes a systematic approach to new product development (NPD) in which multi-disciplinary teams work together, from start to finish, on the product. There are no hand-offs between functional departments because the work is integrated. Manufacturing and support organizations participate in product conceptualization and design specification. Furthermore, the entire product life cycle is examined during development as a part of concurrent engineering (design, manufacturability, reliability, and disposal).

Example IPD System

An example of an IPD system is Intel’s Product Development Framework which is applied across the corporation (“Making the Product Development Framework” by CR Galluzo and Deanna Bolton, 2011). Here the IPD system involves four steps, each of which include appropriate milestones and approvals.

Exploration
Planning
Development
Production

Another example of an IPD system, familiar to PEMs, is systems engineering which involves multi-disciplinary teams determining customer requirements upfront and following a structured development process.

The Basics of IPD

Integrated Product Development (IPD) is contrasted with serial development processes in which project hand-offs occur during the project life cycle. IPD is a water process in that specific stages of work must be completed before the next stage of work is initiated. While serial development can be successful for lengthy and complex projects, integrated teams and concurrent engineering aid in developing products with shorter life cycles and lower cost of investment.

To learn more about IPD, please join us for an NPDP workshop where we discuss several alternative processes for developing new products including serial and integrated teams, waterfall and Agile approaches. Contact me at [email protected] or 281-280-8717 to enroll in a free NPDP overview course or any of our newly scheduled PMP, Scrum, or NPDP workshops in Houston as well as our online PDH courses. At Simple-PDH.com where we want to help you gain and maintain your professional certifications. You can study, learn, and earn – it’s simple!

Study. Learn. Earn. Simple.

A division of Global NP Solutions, LLC

Product Pricing Strategies

Posted on 06.29.17

So you’ve got a great new idea for a product and you’ve secured financing to manufacture it. You have identified a target market and created advertising to build awareness. Your potential customers are anxious to buy the new product because it solves a long-standing problem for them.

Everything is great and even though the product development effort hasn’t been perfectly smooth, it has gone well. But now you’re facing a very tough decision. What is the price of the new product? In fact, how do you even decide how to set the price?

New Product Development Professionals (NPDP) and Certified Professional Engineering Managers (CPEM) are both faced with pricing decisions of existing and new products. The price of a product may shift during its life cycle based on competitive positions and maturity of the product. In all cases, a company normally targets a price high enough to make a profit and to recover any investment in design, development, manufacturing, and marketing. A common pricing strategy is based on two elements: the price itself and perceived product quality.

Premium Pricing

Premium pricing can be achieved when the product has a high price commiserate with a high quality good or service. Most companies strive for premium pricing because it typically yields the highest, long-term profits. The product is perceived to be a luxury item and consumers willingly pay more for the product because of its uniqueness. Premium pricing validates a competitive advantage.

An example of a premium product is a Porsche. The car brand is unique and perceived to be a luxury item. A Porsche will cost more than a Lexus but it is expected to perform better (and faster!). In addition, the brand itself conveys status and infers a “premium” label to its owner. A Porsche commands a high price yet is a high quality product, valued by consumers.

Penetration Pricing

Penetration pricing is a model often used when a new product is first launched (e.g. during the introduction stage of the product life cycle). A penetration price signifies high quality ye the product price is actually set at a low level in order to gain market share. Using a penetration price is normally a short-term strategy used by a firm to establish the product category and gain customers.

A company may deploy penetration pricing for a new-to-the-world product to ensure it gains market traction. The low price is not sustainable as the product needs to earn a profit and is manufactured as a premium product. Firms risk, however, that consumers will become accustomed to the low price and that subsequent price hikes are not feasible. New competitors also may be able to manufacture the product at a lower cost with a financial model that can support the lower price established in the marketplace.

One way to introduce a new product with a penetration price is through the use of sale promotions. Coupons and discounts will encourage first-time buyers to purchase the new product while the company can set the actual price for the product at its long-range target price. Vista Print encourages business card purchases through sales promotions for new customers as demonstrated by television ads providing a special discount code for first-time buyers. Established customers then pay a higher price that is consistent with the product quality (e.g. premium pricing).

Price Skimming

An alternative to penetration pricing for a new product is price skimming. This pricing strategy sets a high price for a common or lower quality product. As an introductory strategy, skimming allows a firm to capture significant profits while there is no other active competition in the market. Consumers have been waiting so long for a product solution that they are willing to pay a high price for any promising product. Companies benefit from the high demand and low competition in such a situation.

Of course, skimming is a short-term strategy as the high price is not sustainable. When competitors begin entering the market (as they surely will), the price will drop as supply and demand balance. Moreover, competitors will take advantage of “fast follower” market strategies to improve the quality of the initial product.

Years ago, I purchased a special GPS as a gift for my husband’s birthday. It was a very new model and interacted with National Park maps so you could track hiking or mountain biking on the park trails. It was waterproof and shatterproof. The GPS conveniently operated on 4AA batteries (no need for an electric outlet if you’re staying in a tent) and cost around $600. There were no other competing products at the time that offered the resolution or ruggedness of the device.

Yet, within a couple of years, smaller GPS devised with Wi-Fi connectivity were marketed. These new devices had similar (or better) resolution and were waterproof enough in a typical rainstorm. Competition dropped the prices to the $100 range quickly. And, of course, today our cell phone have full, built-in GPS capability, including downloadable maps of National Park trails. The company that manufactured the $600 GPS was not able to maintain a price skimming model for long.

Economy Pricing

Economy pricing is exactly what the term implies – a lower price for a “no frills” product. Normally, you will see

products with economy prices in a mature market with lots of competition and as a product becomes commoditized. Manufacturers make a profit by keeping production and marketing costs low.

Products with economy pricing may co-exist in a market with premium products. The two products, though in the same category, will serve different customers. A value-minded customer may purchase a generic or store-brand product while other consumers will not take the risk of sacrificing brand quality. For example, the local supermarket offers bran cereal flakes with raisins at a lower price than Kellogg’s Raisin Bran. A mom with teenage boys may choose the store brand to save money on her weekly grocery bill while a senior citizen will select the higher priced, brand name cereal to be guaranteed a minimum and consistent quality standard.

Pricing Strategies

Every company must be aware of the prices charged for their products. If the firm sells directly to consumers, the company will set the price. If a firm sells to distributors and wholesalers, then they will need to set a minimum expected retail price. Prices reflect perceived product quality and must be set at an appropriate level so that the company makes a profit over the long-run.

However, a firm may establish different prices for products at different stages within the product’s life cycle. Introductory pricing schemes may vary significantly from a mature or declining product. Common introductory pricing strategies include price skimming and penetration pricing. Price skimming is utilized when there are few competitors and a company can charge a high price for a product that may be of low quality or offers few features. This strategy is not sustainable as competitors entering the market will cause the price to decline and competing products will offer higher quality and more features to gain market share.

Penetration pricing is also used as an introductory pricing strategy. Here the product is priced lower than expected for the product category or market perception of the product category. The intent is to establish brand awareness and market share so that the company will retain customers after subsequent price increases. Organizations are often willing to sacrifice short-term profits for longer term brand loyalty.

Ultimately a company wants its products to move into premium pricing. Premium pricing strategies reflect a high price for a product perceived as unique and high value by its target customers. Premium pricing is often realized during growth and maturity of a product category. Companies can maintain high profit margins under a premium pricing model but are subject to disruption by a lower cost competitor who may take advantage of new technologies to lower manufacturing costs.

Finally, products in the maturity phase may price products in the economy pricing category. Economy pricing reflects a lower price for a “no frills” product that has low-cost manufacturing and marketing expenses. These products offer a quality level desired by a group of customers who desire few features. Products with economy pricing attract a different buyer than premium brands and may co-exist with higher end products during the maturity and decline phases of the product life cycle. Commodities are products with economy pricing as demand and supply are matched so that customers choose their purchase based on price more than brand reputation (a substitute for quality).

NPDPs and CPEMs must be familiar with pricing models, especially their linkage to the product life cycle. Companies must also be cognizant of pricing in order to attract new customers, maintain profitability, and to respond to competition. To learn more about strategy and product pricing, please join us for certification training in New Product Development Professional (NPDP). Workshops are available in an affordable self-study course format or in customized face-to-face training sessions. Contact me at [email protected] or 281-280-8717 for information on new product development training or professional management coaching. At Simple-PDH, we want to make it simple for you to study, learn, and earn and maintain your professional certifications.

Study. Learn. Earn. Simple.

A division of Global NP Solutions, LLC

Work-Life Balance

Posted on 03.23.17

Depending from which generation you hail, your definition of “work-life balance” probably is quite different than your co-workers of another age. Baby boomers stereotypically report to the office daily and value work above many other pursuits. Gen X-ers (myself included) put as much energy into our time off work as we put into work. Finally, Millennials are struggling to find out where the line is that seems to blur work and social life.

Regardless of your age and approach to work-life balance, it is true that all of us spend more time than ever connected to technology. You know, that annoying habit of pulling out your smartphone to check a fact in the middle of a conversation. Or asking Siri to identify the artist playing the background music at the coffee shop while you meet with an old friend. And, of course, constantly checking email to see if the project work was done correctly while you were out of the office. We certainly do rely on technology!

Technology for Learning

A second aspect of work-life balance is that we often stay connected in our off-hours so that we can get ahead. While it is probably fruitless to imagine digging out from under the gigantic heap of bits and bytes that make up our cluttered inboxes, we can use technology to better manage our work tasks. The calendar function is a great way to parse the day and schedule important activities. In addition to project team meetings, you can use your calendar to block time for in-depth, quiet, strategic thinking and for personal growth. My calendar is blocked Thursday starting a 3 pm for a networking event which will cover both items (quiet time for thinking during the drive to and from the event location, and personal growth by meeting new people at the event).

We also can use technology for learning. Block time on a regular basis for building skills that will advance your career. The amount and frequency of learning events will be a function of your educations and knowledge-building goals, but the time commitment needs to be regular and long enough to complete a new activity in each session. Five minutes normally won’t cut it! For new product development professional (NPDP) training, we recommend one hour per day for six weeks, with one day off each week. Committing to learning new skills for a professional credential will reap huge rewards for personal and career growth.

Learning for Work-Life Balance

Learning a new skill can help us better balance work goals and find joy in our personal lives. Career-oriented objectives often are only met through demonstrated commitment to our chosen profession. Without a doubt, professional certification is rapidly growing and demanded by employers to show that you are absolutely dedicated and knowledgeable in the field. Many job openings today require certification, such as Project Management Professional (PMP), to even apply for open positions.

Unless you let your certification lag (and we hope you don’t!), professional certification is yours. You are equipped with the demonstrated education, knowledge, and experience regardless of your current job. Professional credentials are portable and show your commitment to learning in the industry. Most valuable certification require continuing education and your professional development hours (PDH) expand your skills to include emerging topics of interest and new best practices. Learning is truly a lifelong endeavor.

As you learn and master new skills, you will find that it enhanced the work-life balance. Your passion for your chosen career cannot help but spill into your personal life as you grow. Leadership and team management skills are not limited to on-the-job implementation. You can use leadership skills as Boy Scout Troop Leader, to organize a community garage sale, or to head a medical mission in Africa. We all need continued improvement in our team skills to better manage new product development projects, engineering teams, or even sensitive family decisions. Learning for career growth does not stop at the office door.

Using Time Wisely

While many of us check our work email as often as we check Twitter or Facebook, it is important to unplug. Studies (CEP, March 2017) shows that the best workers actually take their annual vacation time, get enough sleep every night, and exercise regularly. I tend to combine these pieces of advice and go hiking on vacation which leads to very restful sleep.

But, of course, we are not always on vacation. In fact, most of the time we’re not. Most of the time, we are striving to get better at what we do. So, using the calendar function discussed above, along with the benefits of continuous learning, schedule time to gain or maintain your professional credentials.

For those that are already New Product Development Professional (NPDP), PMP^©, or Professional Engineering Manager (PEM) certificates, you will need to commit at least two hours per month to on-going learning. Some of that will occur during network meetings designed to bring together like-minded professionals. However, re-certification for many candidates requires 60 PDHs every three (3) years. You can supplement network meetings with easy-to-use online learning.

The advantage of online learning is that you can block one hour in your schedule every month for quiet time. You can use downtime at the office, during your commute, or time at home. Because online learning is easy to access on any platform, you can choose when and where to learn. If you are seeking a new credential to advance your career, you will probably balance your home life against attaining new skills. If your current employer actively supports educational initiatives, you can block one hour per day for six weeks to gain the necessary knowledge to back-up your work experience. Online learning gives you flexibility to manage your own time against your own work, family, and leisure commitments.

Check out any of our online courses at Simple-PDH.com. We know that work-life balance is important so we want to make it simple for you to study, learn, and earn your professional certifications. For more information, please contact us at [email protected] or 281-280-8717.

Study. Learn. Earn. Simple.

A division of Global NP Solutions, LLC

4Ps of Marketing

Posted on 03.16.17

Marketing is the study of relationships and the exchanges that occur within those relationships regarding information on products and services. We use marketing tools to define and instruct new product usage and customer purchase decisions. We use marketing messages to introduce and revitalize product features. Marketing connects the consumer with the producer.

Marketing Mix

The marketing mix is often called “The 4Ps of Marketing” and is made up of the following elements:

Product,
Price,
Place, and
Promotion.

It is the interaction of these elements that creates an overall relationship of a product with the customer. Customers do not buy products or features; instead, consumers look for experiences that will solve their problems and will leave them satisfied. The marketing mix yields a deliberate set of decision for management to describe the brand relationship with the customer.

Product

Of course, the most obvious interaction between a customer and manufacturer is through the product. Products may be available directly to consumers (B2C) or they may be sold business-to-business (B2B). Every product is different and it will go through various iterations as it works through the product life cycle.

Customers look at the core product, which is the actual benefit they derive from using the product. For example, the core benefit of a food product, like cereal, is to gain nutrition.

The next level of the product is the tangible product. Here the focus is on the physical features and unique selling proposition of the product. In the case of a service, the “tangible” product is the delivered service. The tangible product includes features, attributes, and packaging of the product. For a bottle of wine, the flavor, smoothness, and label decoration are all tangible elements of the product.

An augmented product encompasses additional value of the product. Companies may add complementary services to a product in order to differentiate themselves from the competition. These service might include installation, warranty, and after-sales customer service. It is within the arena of augmentation that firms can build market share and brand reputation. While a physical product can be copied or imitated, customer-facing market interactions cannot be. Organizations can use augmentation as a differentiator leading to repeat business through excellent customer service experiences.

Finally, the outermost layer of a customer’s experience with the product is the future product. All New Product Development Professionals (NPDPs), Professional Engineering Managers (PEMs), and marketers must be aware of the future and its impact on existing products. Customer needs and market trends can change rapidly. One way to successfully navigate the future is to monitor the product’s position in the product life cycle. Other ways to keep a product fresh is to continuously gather customer feedback on the degree of which to product solves the customers’ problems as well as to study emerging “jobs-to-be-done.”

Price

Customers must sacrifice something to use a product. Organizations want that sacrifice to be less than the benefit that the customer receives and large enough to make a profit for themselves. Normally, the “sacrifice” a customer makes is financial – s/he spends money to acquire the product. However, customers also make sacrifices in learning how to use a new product and in choosing one product over other competitors.

Pricing models must allow the manufacturer to make a profit but must consider the maximum sacrifice a customer is willing to make in exchange for the perceived benefit of the product. One standard pricing model is called “cost plus pricing”. In this situation, the producer has a good handle on the cost to manufacture the product and adds a desired profit margin to establish the selling price. Normally, the mark-up is a percentage of the cost.

A second pricing model is “competitor-driven” or “going-rate pricing”. In this case, a product’s price is set in equilibrium with products offered by the competition. The market will have already established acceptable prices for a product category that reflect consumers’ trade-offs between needs, benefits, sacrifice, and supply and demand.

Other pricing models are designed to help a firm set the initial offering price for a new product. These include penetration pricing and price skimming. Prices of new-to-the-market goods are set at low or high values relative to the benefit/quality of the product in order to establish a strong market presence and early market share.

Place

In the 4Ps of Marketing, place refers to the distribution channel and availability of the product for purchase. You might want to add the word “convenience” to the definition of place because today’s busy customers demand ease-of-purchase alongside measurable product benefits in the marketing mix.

Distribution decisions for products include whether to market directly to the customer or to use an intermediary. Many B2B products use direct, personal selling and do not involve intermediary brokers or wholesalers.

On the other hand, most consumer packaged goods – the kind of products that we buy weekly or monthly at the supermarket or drug store – involve multichannel distribution partners. Under these circumstances, a product is transferred from a manufacturer to inventory, to one or more wholesale distributors, and eventually to store shelves of a retailer. Each step in the supply chain adds complexity to the marketing relationship as well as adding cost since each partner expects to profit on their business activities.

Logistics are further complicated today by decisions of selling online or in physical retail outlets, called “click or brick” choices. For some products, the marketing decision will be to include both distribution channels for customer convenience. In other situations, a manufacturer will choose only online or only physical distribution. A company needs to consider the customer’s perspective regarding the environment, convenience, and pricing in making a “place” decision.

Promotion

Finally, the fourth “P” in the marketing mix is the promotion of the product. Promotions summarize all of the communications between an organization and potential customers to build and sustain the marketing relationship. Communications involve advertising, publications, direct marketing, and sales promotions.

Product communications, or promotions, must reach and positively influence category opinion leaders. We see that reviews on Yelp or TripAdvisor influence new customers significantly in their decision to experience a particular restaurant, hotel, or resort. Some promotions are now fully digital with no investment in other advertising media. YouTube videos are used as direct marketing along with building communications to establish a general brand presence in a given market.

The Marketing Mix Decisions

New product development practitioners and engineering managers have a great deal of control over the marketing mix, especially for new products in the introductory stage of the product life cycle. Marketing is the primary method in which a manufacturer communicates with consumers and potential new customers. Four elements intertwine to build brand awareness and desire for a customer to choose one product over all other competitors.

The elements of the marketing mix are known as “The 4Ps of Marketing,” and managers must make varying decisions and investments throughout a product’s life cycle to address product features, pricing, distribution (place), and sales promotions. Products must solve real customer problems and deliver a benefit greater than the customer’s sacrifice (cost). Consumers should find the product convenient to purchase (place) and should be convinced of the relationship they have with the producer (promotion).

To learn more about the 4Ps of Marketing and the interaction with the product life cycle, you will enjoy a short e-book on The Product Life Cycle. Or you might like to learn more about innovation best practices in a new product development workshop. Please contact me at [email protected] or 281-280-8717 for more information. At Simple-PDH, it’s simple to study, learn, and earn!

Study. Learn. Earn. Simple.

A division of Global NP Solutions, LLC

Adapting to the Work World

Posted on 03.09.17

A recent Harvard Business Review article by Thomas Davenport and Julia Kirby (June 2015, page 58) discusses five options people have to respond to encroaching automation. The premise is that computers and automation have gone from taking over the dirty and undesirable jobs to making decisions and replacing knowledge workers. As computers move into the realm of decision-making and complex problem-solving, the authors explain, people will find themselves out of work.

Consequently, they propose five steps to maintain career relevancy in an age of advanced automation. These steps favor different skill sets and goals. Each step, however, requires an educational pathway to learn new skills and demonstrate mastery.

Step Up

Some tasks can never be done by a computer. Computers cannot, at least not yet, predict strategies that align with political, economic, social, and technological (PEST) trends. Knowledge workers will always be needed to assess the data and trends compiled by computers, but automation cannot synthesize such data into a comprehensible strategy.

As an example, Project Management Professionals (PMP) must synthesize a great deal of information regarding the project status, budget, and schedule. Certainly, computers provide the data but only a skilled project manager can make decision regarding various resources to address shortfalls in the schedule, for instance. Project managers learn and demonstrate these skills when they earn the PMP credential, a certification based on education, the body of knowledge, and experience.

Step Aside

Davenport and Kirby’s second approach to beating automation is to “step aside.” Computers, even Watson, remain un-human. Automation cannot build relationships, integrate team members, or inspire workers to achieve more. Stepping aside means allowing the computer to do its work while applying your skills as a knowledge worker to building emotional intelligence.

One example of stepping aside is the Professional Engineering Manager (PEM). Engineering managers most definitely rely on the calculations and methodologies that can only be conducted by computers. Yet, the overall vision and inspiration for research, development, and engineering work is a fully human endeavor. PEMs demonstrate interpersonal and visionary skills to guide and shepherd developments needed to advance technology and its role within a progressive society.

Step In

“Stepping in” is another approach to managing one’s career in an age of automation. Here, an expert codes, programs, and manages the very computers that are providing data and information for decision-making. A choice to “step in” requires a higher skill set with application of science, technology, engineering, and math (STEM) competencies.

To program and codify new learnings and to be able to take advantage of new opportunities, an individual will need to gain appropriate education and maintain higher skills. While specialty skills in programming might be required, more important analytical skills that allow a person to diagnose problems and needs will serve well for someone to “step in”.

Consider that computers routinely perform most of the calculations and output the necessary data for statistical process control. Yet, the data itself has no impact on continuous quality improvement until someone acts on the data. An error in programming may lead to declining performance rather than improved quality. Quality professionals, who are certified in Six Sigma, for instance, can step in to ensure data collection, assessment, and outputs are accurate.

Step Narrowly

Throughout history, people have made a name for themselves by working in a niche market. Automation will be profitable when it is applied to mass markets and bulk processes. The cost of developing software to replace an expert wine steward, as an example, would be cost prohibitive. Thus, stepping narrowly allows individuals to combat a job takeover by computer automation.

Another example of stepping narrowly is in the field of innovation. New Product Development Professionals (NPDP) must exhibit “T-shaped” skills: depth in one area but broad curiosities that serve customers in many ways. NPDPs not only align corporate strategic objectives with distinctive project goals and they must apply schedule, budget, and quality tools to commercialize new products that meet market needs. Unique certifications, like NPDP, demonstrate depth of knowledge and experience in a field like innovation while also exhibiting mastery of skills across relevant disciplines (engineering, marketing, and project management).

Step Forward

Finally, Davenport and Kirby note that nothing stands still, especially technology. It is unlikely you will lose your job to a computer if you are working on the next generation of applications and analytical intelligence. Therefore, stepping forward makes a deliberate approach to gaining and applying new skills that create next generation opportunities.

When an individual “steps forward,” s/he recognizes and applies emerging tools and techniques to existing situations. By stretching the platform, new opportunities can be captured for growth. An example of “stepping forward” is applying Scrum to traditional project management environments. Conventional project management focuses on upfront planning while the iterative Scrum methodology continually delivers value through tight customer interfaces. Applying the Scrum framework in new situations realizes new opportunities for growth and speed-to-market.

Adapting to Automation

Our work world is changing. Automation is advancing to the point that computers can begin to make some decisions and solve problems that were previously reserved for the human brain. We must adapt to a new working world and utilize computers to help our own careers.

Five steps have been proposed to adapt to automation and its encroaching battle for knowledge workers. We can step up, step aside, or step in. In other situations, we may need to step narrowly or step forward. In any case, however, today’s workers must continually evolve and develop new skills to stay ahead of the competition (human or computer!).

Gaining a professional credential is one way to demonstrate and validate your education and work experience. Learn more about gaining and maintaining professional certifications at Simple-PDH or contact me at 281-280-8717. It’s simple to study, learn, and earn!

Study. Learn. Earn. Simple.

A division of Global NP Solutions, LLC

Engineering Management Skills

Posted on 08.11.16

While we might proudly wear the badge “nerd,” many engineers struggle to identify the correct skills, tools, and techniques to use when they are promoted to supervise the work of others. When I was first appointed to a management position, I was disappointed. Didn’t they understand how many years I went to school to learn technical skills? Didn’t they think I was smart enough? Little did I understand that “they” had recognized another set of skills – not just technical – that could benefit others and help me to grow both personally and professionally.

Engineering Management

So, what do engineering managers do if it’s not 100% technical? The American Society of Engineering Management (ASEM) outlines eleven (11) skill areas to master in becoming a Professional Engineering Manager (PEM). These are:

Introduction to Engineering Management,
Leadership and Organizational Structures,
Business Strategy and Planning,
Financial Management,
Project Management,
Operations and Supply Chain Management,
Sales and Marketing,
Management of Technology and R&D,
Systems Engineering,
Legal and Regulatory, and
Ethical Issues.

All of these skills require an interaction with teams of people who do the actual work in the organization as well as communication and information exchange with the senior executives of the firm.

Becoming a PEM requires learning these 11 areas in breadth and depth. PEM certification also requires an appropriate degree and a number of years of experience. Thus, PEM certification is based on three components: education, experience, and demonstrated knowledge.

Education

Most engineering management professionals, like me, come to the profession from a technical background. Studying in college for an engineering degree teaches analytical thought, a disciplined approach to solving problems, and application of the scientific method. An engineering education may be narrow (high voltage power engineering) or more broad (chemical engineering).

Education requirements are common for most certifications. For example, PMP® certification (Project Management Professional) requires 35 hours of specific training in project management. PEM certification requires a college degree (BS or BA) while the work experience requirement is decreased if the applicant holds an engineering management degree (BS or MS) from an accredited school.

Work Experience

Nearly all certification programs require practical work experience to demonstrate active participation in the profession. More than a simple requirement, work experience validates learning and application of theory to real-world situations. We often learn more from the “school of hard knocks” than during a four-year college experience.

Candidates for PEM certification will need to demonstrate varied work experience depending on their degree program. Work experience requirements range from two (2) to five (5) years and the candidate must manage programs or projects within three or more of the 11 domains of engineering management (see above).

In some cases, the experience requirement is reduced by one year if the candidate participates in a 24-hour PEM Test Prep class. This waiver applies when the applicant’s degree is from outside the field of engineering management or from a non-accredited school. Stay tuned at www.simple-pdh.com as well will be offering PEM test prep classes soon!

Certification Exam

All worthwhile credentials require a passing score on the actual certification exam itself. The PEM exam, like the PMP and NPDP (New Product Development Professional) certification exams, is a four-hour multiple choice test. A passing score of 70% correct answers on 200 questions is necessary.

ASEM offers a short set of practice questions to help candidates prepare for the exam. At Simple-PDH, we offer subject matter specific courses, like cost estimating, to help candidates gain and maintain their certification as Professional Engineering Managers. Contact us at [email protected] or 281-280-8717 for information on facilitated, on-line PEM test prep courses. And, keep your eyes out for a full set of practice questions to be released in early 2017.

Professional Engineering Management

Professional Engineering Mangers (PEM) help to accomplish the work of an organization by improving productivity and efficiency of operations and workers. Engineering managers ensure that technical experts are motivated and inspired to achieve high-quality project work and to increase the revenues of a firm. It is a rewarding career path, as I learned. Instead of discounting my years of education, becoming an engineering manager challenged me to find new and creative problem-solving methodologies, to encourage and support group collaboration, and to advance the needs of the firms, its employees, and customers in a profitable and cost-effective manner.

What challenges do you face as an engineering manager?

Study. Learn. Earn. Simple.

A division of Global NP Solutions, LLC

Maintaining Certification

Posted on 01.21.16

Professional certifications like NPDP (New Product Development Professional), PMP® (Project Management Professional), and PEM (Professional Engineering Manager), demonstrate experience, knowledge, and specific skills. The most rigorous certifications require continued learning to validate knowledge of best practices and emerging industry trends. Many accrediting bodies require a number of professional development hours (PDH) each period and may require particular categories of learning.

PDH Requirements

NPDP

New Product Development Professionals (NPDP) demonstrate mastery of skills in the field of innovation. As of first quarter 2016, the NPDP exam covers six key topic areas: strategy, portfolio management, NPD (new product development) processes, market research, teams and organizational structure, and innovation tools and metrics. You can learn more about the initial NPDP certification at www.globalnpsolutions.com/workshops/.

PDMA (Product Development and Management Association), the certifying body for NPDP, requires 60 PDH every three (3) years. For many of us, as busy product development professionals, this is challenging. Conferences are expensive and take us away from important day-to-day work. Email and meetings continue even when we are away from the office.

Simple-PDH offers an easy way to maintain your NPDP certification through online courses. Online PDH courses include appropriate documentation such as course reading notes, white papers, and tip sheets. Course materials are available with video and audio to make learning easy. Each course comes with a practice test and a final exam. Upon achieving a passing score on the final exam (typically 70%), you can download your completion certificate, clearly indicating the number of earned PDHs.

PMP

Project Management Professionals (PMP) demonstrate mastery of knowledge, skills, and practices in the field of project management. Currently, the fifth edition of the PMBOK® Guide (Project Management Body of Knowledge) covers five process groups and ten knowledge areas. Core knowledge areas include:

Scope,
Time,
Cost, and
Quality.

Supporting knowledge areas include:

Human Resources management,
Communication,
Risk management,
Procurement, and
Stakeholder management.

In addition, the knowledge area of project integration management pulls together project management plans and activities from all of the core and supporting functional areas. Learn more about initial PMI certification at http://www.globalnpsolutions.com/workshops/pmp-certification-training/.

As the certifying body for PMPs, the PMI (Project Management Institute) requires 60 continued professional development hours (PDH) every three (3) years. Of these, at least eight (8) hours must be dedicated to each of the Talent Triangle™ arenas:

Business and Strategic Management,
Technical Project Management, and
Leadership.

At Simple-PDH, courses are clearly identified by the Talent Triangle for easy tracking of your continued education. Course completion certificates also plainly state the number of hours in each subject matter area. (Note that some course will have overlapping content and earned PDHs can count toward multiple categories on the Talent Triangle.)

PEM

Professional Engineering Managers (PEM) demonstrate experience and knowledge covering an Introduction to Engineering Management and ten (10) additional domains. Core domain knowledge includes:

Leadership and Organizational Management,
Strategic Planning,
Financial Resource Management, and
Project Management.

Supporting domains include:

Operations and Supply Chain Management;
Marketing and Sales Management for Engineering Organizations;
Management of Technology, Research, and Development;
Systems Engineering, and
Legal Issues in Engineering Management.

Underpinning all of the subject matter domains is the Professional Codes of Conduct and Ethics domain.

PEMS are required by ASEM (American Society of Engineering Managers) to maintain 45 PDHs over each three (3) year period. Simple-PDH offers course materials online to further your knowledge of engineering management and to help you become a better leader in your organization.

Upon completion of any course on the PEM PDH program, you can download and print your certificate, providing documentation for the PEM tracking form. Most courses are designed for a 1-hour continuing education credit (CEU); however many courses offer two or more PDHs.

Maintaining Your Credentials

It’s not easy to study for and pass a professional certification exam. Maintaining the pride in your accomplishment in your industrial field of study is demonstrated through continuing education. At Simple-PDH, we make it easy and affordable for you to earn your PDHs. Study course materials. Learn the newest best practices in management. Earn your professional development hours (PDH) and continuing education units (CEU). It’s all online, at your own pace. It’s simple.

For more information, please contact us at [email protected] or by phone at 281-280-8717.

Study. Learn. Earn. Simple.

A division of Global NP Solutions, LLC