Controlling R & D projects by networks

Abstract . This paper discusses the use of network analysis in the management of a large scale engineering project carried out within the R & D department of an engineering company. It describes the use of precedence diagrams and concludes that these are simpler to use than the more commonly encountered PERT nomenclature. This method has now been extended to cover other projects in the R & D department and it is concluded that their successful introduction has been encouraged by the interest and support of top management.     

Communication patterns in small R & D projects

An empirical investigation was carried out on the pattern and role of communication in two ongoing applied research projects in one of the national laboratories of the C. S. I. R., India. The overall objectives of the study were: (1) to investigate the communication pattern and its relationship with parameters like hierarchy, educational status and social relations: (2) to identify ‘technological gatekeepers’ and ‘isolates’ and study their characteristics and roles; (3) to study the role of informal communication vis-à-vis formal communication in problem-solving and idea-generation. In this paper, the first two aspects are discussed: the role of informal communication in problem-solving and idea-generation will be published in a subsequent paper.     

The management of Army R & D projects

This study of the accuracy of cost and duration estimates for British defence R & D projects is based on an analysis of the records of 29 Army projects, initiated since 1960. The results are generally similar to American defence studies with which they are compared. The reasons for schedule slippages and cost escalations are examined and it is suggested that performance could be improved by more thorough project feasibility and definition studies and by a stronger project management organization.     

Ranking of extension alternatives of R & D projects

This article describes a planning tool which can help the decision maker both during the early stages of project evaluation and later, when selecting extension alternatives. An algebraic expression is derived for ranking the alternatives by their mission probability, error, cost and project duration. A definite order can be established, even if the calculations are based on rather rough estimates or only on educated guesses. The process is elucidated by means of an example.     

The use of ranking formulae in R & D projects

Abstract . Numerous ranking formulae have been proposed in the literature for use in the evaluation and selection of R& D projects, but their rate of adoption has been relatively slow. This situation appears to be changing in the U.K. and a considerable amount of effort is being expended to improve the methods of obtaining estimates for the variables which appear in the formulae. This paper argues that the most commonly quoted formulae do not adequately represent the practical situation and are likely to introduce bias into the system as well as tending to make estimating more difficult. A modified ranking index derived from a decision tree type of analysis is suggested as a more useful estimate of the worth of a project, but it is concluded that any such formulae will always have serious limitations because they must inevitably ignore important characteristics of the research process.     

Ten years of R & D Management-some major themes: the role of communication in R & D

Fifteen papers on the role of interpersonal communication in R & D appearing in the first ten volumes of R & D Management are reviewed. The conclusions reached by the various contributors on three major themes are compared. The themes are: the relation of communication to performance, the effect of physical separation on communication rate, and the role of communication stars in information transfer. A clear division of opinion emerges on the extent to which managers can impose or create effective communication patterns as distinct from merely being able to stimulate those that already exist. Differences in experimental approach and the existence of methodological gaps prevent any judgment being made between the two viewpoints based only on the evidence in the papers under review.     

Equitable payment in the R & D function

This paper discusses the problems associated with constructing equitable salary structures for Senior R & D employees. The use of job evaluation and performance appraisal are both considered. It is suggested that the decision band method of job evaluation is particularly useful in this context and a case study of its application within the R & D division of a large manufacturing firm is presented. Job grading and salary structuring in terms of decision-making responsibility are demonstrated. It is argued that the decision band approach assists rational administration of R & D in a number of ways including analysis and, perhaps, restructuring of the function. Methods of rewarding individual performance and measuring career development within R & D are also discussed in terms of the decision band concept.     

Organizational structures in the R & D sphere

Integration of R & D and production activities poses a major managerial problem, which arises because of fundamental differences in the nature of the two kinds of activity, requiring distinctly different management systems. A study of 100 teams of both types showed marked differences between the two in the organizational climate leading to maximum effectiveness. A taxonomy of organizational types, integrating the two activities in a spectrum of ways, is described. A study conducted among Polish electrical engineering enterprises showed that project-type organizations produced products with the greatest degree of originality (measured on the Kesselring scale), while matrix organizations introduced the greatest number of new products into the organizational system. A venture team concept, combining features of both organizational types, is proposed as a means for capitalizing on the good points of each.     

R & D and the company's requirements

Numerous models have been put forward in the literature for the selection and evaluation of projects, many of which are based on optimizing the return on investment by the company in R & D projects. This is a noble aim but in practice the financial data available are often of dubious accuracy and so many other factors are involved in actually adopting a portfolio of selected projects that project selection often becomes a theoretical exercise. It is suggested that the selection of projects is in essence the adoption of a strategy which is within the policy and long-term aims of the company and also within the policy and scientific development of the R & D part of the company. Such a strategy is usually sub-optimum for both the company and the R & D division, as it is a compromise between a desire for high pay-back investments by the company and the maintenance of a scientifically balanced R & D involving some long-term, unknown return, investments. A method is currently being experimented with by Unilever Research which illustrates where conflicts arise between the policy of the main company and that of research, and assists management in arriving at a strategy which most closely fulfils the needs of both policies. Both the concept of the method and its practical use are described in this paper.     

Communication networks in R & D Laboratories

Communication networks in R & D laboratories are shown to have structural characteristics, which when properly understood can be employed to more effectively maintain the laboratories' personnel abreast of technological developments. Informal relations and physical location are shown to be important determinants of this structure. Informal relations can be developed through formation of project teams and intergroup transfers and loans. The effect of physical location on communications is especially strong and should be given serious consideration when designing research facilities.     

Assessment of profiles in R & D: a tool for analysis and development of R & D potential

A study sponsored by the State Committee for Science and Technical Progress of Bulgaria aimed at providing a theoretically sound and easy to apply method for the needs of R & D management on government, organization and team levels, to be used in assessing and managing both present and future R & D potential.
The method draws inferences about R & D potential from the accumulated experience and performance of the researchers, analysed along research topics. A specific 'man-topic unit of analysis helps identify individual researchers, teams and projects' profiles and also helps translate the specific characteristics of R & D work and the requirements for R & D internal effectiveness into the language of R & D management.     

Applications of computers in R & D management

R & D Managers use computers extensively in solving technical problems. This paper examines the use they make of computers in solving Management problems. Applications of computers to various aspects of R & D programme formulation, project planning, technical information storage and retrieval, management information systems, and computer-aided training have been investigated by many companies and, in some cases, have been implemented. Some of the techniques have become well established but others are still at a development stage. No attempt has been made to evaluate the techniques described. This topic was the subject of a study by a Working Group of the European Industrial Research Management Association (EIRMA), and a report ‘Computers as Aids to R & D Management’ was distributed to members of the Association. EIRMA has now agreed to release information contained in that report and this paper is based on that information updated by the author, who was Chairman of the EIRMA Working Group.     

Applications of computers in R & D management

R & D Managers use computers extensively in solving technical problems. This paper examines the use they make of computers in solving Management problems. Applications of computers to various aspects of R & D programme formulation, project planning, technical information storage and retrieval, management information systems, and computer-aided training have been investigated by many companies and, in some cases, have been implemented. Some of the techniques have become well established but others are still at a development stage. No attempt has been made to evaluate the techniques described.
This topic was the subject of a study by a Working Group of the European Industrial Research Management Association (EIRMA), and a report 'Computers as Aids to R & D Management' was distributed to members of the Association. EIRMA has now agreed to release information contained in that report and this paper is based on that information updated by the author, who was Chairman of the EIRMA Working Group.     

Human aspects of R & D organization

Abstract. The organization structure of an R & D Division should seek to establish conditions in which creative ideas flourish. The nature of the R & D activity and needs of its staff must be clearly understood. The essential core of the organization should comprise a number of commercial target groups around which lie a flexible array of disciplinary and service groups. It is essential that group managers are seen to be scientists or engineers of distinctive competence. There should not be more than three tiers of management.     

The economics of industrial R & D

The relationship between research and commercial operation is examined in terms of production using a simple Cobb-Douglas production function, where output is expressed in terms of inputs of labour, capital and‘technical progress’. The model was tested in a single company environment by multiple regression analysis of output as the dependent variable on various measures of research, labour and capital. The results of the regression analysis are in full agreement with the model as outlined and the assumption that output is dependent simultaneously on labour, capital and the cumulative research investment.