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 EDITED BY
YUFENG ZHANG
MIKE GREGORY

VALUE CREATION
THROUGH
ENGINEERING
EXCELLENCE
Building Global
Network Capabilities
Value Creation through Engineering Excellence
 Yufeng Zhang Mike Gregory
•

Editors

Value Creation
through Engineering
Excellence
Building Global Network Capabilities
Editors
Yufeng Zhang Mike Gregory
Birmingham Business School Department of Engineering
University of Birmingham University of Cambridge
Edgbaston, Birmingham Cambridge
UK UK

ISBN 978-3-319-56335-0 ISBN 978-3-319-56336-7 (eBook)

https://doi.org/10.1007/978-3-319-56336-7

Library of Congress Control Number: 2017939886

© The Editor(s) (if applicable) and The Author(s) 2018

This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of
illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and
transmission or information storage and retrieval, electronic adaptation, computer software, or by similar
or dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information in this
book are believed to be true and accurate at the date of publication. Neither the publisher nor the
authors or the editors give a warranty, express or implied, with respect to the material contained herein or
for any errors or omissions that may have been made. The publisher remains neutral with regard to
jurisdictional claims in published maps and institutional affiliations.

Printed on acid-free paper

This Palgrave Macmillan imprint is published by Springer Nature

The registered company is Springer International Publishing AG
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
 Preface

Engineering plays a central role in economies and industries. Its influence

goes far beyond the recognisable sectors such as automotive and aero-
space. Engineering expertise underpins industries as diverse as food and
entertainment, retail and pharmaceuticals. But the ‘invisibility’ of much
engineering activity may lead to its significance being underestimated. At
a time when new technologies and global economic structures are
changing so rapidly this book sets out to explore the role and evolution of
engineering in different contexts.
The focus of the book is on those engineering activities which create
substantial value. It highlights those activities that are essentially inno-
vative and lead to growth of businesses and improvements in living
standards rather than those which simply maintain the status quo—
important as that remains. The term High Value Engineering has been
coined to characterise these activities though it is recognised that this is
an evolving definition and indeed activity.
The book reflects an extended collaboration between leading scholars
across Europe and China and draws upon leading research programmes
while remaining firmly grounded in engineering practice.

v
vi Preface

The early chapters explore new approaches to the representation of

engineering which it is hoped will provide new insights into the way
modern engineering is performed. The recognition of an engineering
value chain and the highly networked nature of engineering activities
around the world are thought to be particularly important in recognising
and managing the role of engineering within companies and indeed
nations.
Subsequent chapters address the characteristics of different aspects of
modern engineering from design to services. Concepts of value chains
and value creation are explored in greater detail demonstrating engi-
neering in its broader business and commercial context. The opportu-
nities and challenges presented by rapid developments in ICT are
considered as well as the implications for skills and training. Increasingly
important issues surrounding sustainability are tackled recognising again
the critical role of engineering in moving towards the environmentally
sustainable production and use of goods and services.
The book concludes with a chapter on policymaking with respect to
engineering and technology. The complex skills and expertise associated
with High Value Engineering represent a precious asset not just for
companies but for society more generally. It is essential that these
resources are deployed sensibly and knowingly with an understanding
their potential and limitations.
The authors earnestly hope that this book will provide new insights
into the nature and role of modern engineering, informing industrialists
and policymakers and perhaps most importantly enthusing younger
scientists, technologists and engineers with excitement for the rapidly
developing field of High Value Engineering.

Edgbaston, Birmingham, UK Yufeng Zhang

Cambridge, UK Mike Gregory
 Acknowledgements

The authors would like to express their gratitude to the support of the
Seventh Framework Programme of the European Union through Marie
Curie Actions IRSES Europe-China High Value Engineering Network
(EC-HVEN), http://cordis.europa.eu/result/rcn/191425_en.html. The
authors would also like to thank Chris Collinge and Amorettya Minayora
for their kind helps of proofreading the chapters.

vii
 Contents

Part I The Engineering Value Chain and the main

Capability Areas

1 Introduction 3
Yufeng Zhang and Mike Gregory

2 Engineering and Technology Management 11

Yuan Zhou, Rob Phaal, Tim Minshall and David Probert

3 International Manufacturing and Engineering 49

Yongjiang Shi and Yufeng Zhang

4 Engineering Services: Unpacking Value Exchange 75

Florian Urmetzer, Andy Neely and Veronica Martinez

ix
x Contents

Part II Engineering Network Innovation and Optimisation

5 Engineering Design and Innovation in a Global

Context 99
Thomas P. Taylor, Erik Søndergaard, Tim Minshall, Letizia Mortara
and Saeema Ahmed-Kristensen

6 Engineering in International Business Networks:

The Motivations and Practices of Chinese MNCs 129
Quan Zhou, Xiaobo Wu and Yongjiang Shi

7 Engineering Value Chain Simulation and Innovation 149

Tao Zhang and Yufeng Zhang

8 ICT for High Value Engineering Networks 179

Ting He and Xiaofei Xu

9 Engineering Value Chain Modelling and Optimization 205

Lina Zhou and Xiaofei Xu

10 Engineering Value Chain Coordination and

Optimization 231
Ming Dong and Yonglin Li

Part III Future Trends and Implications

11 Engineering for Sustainable Value 265

Miying Yang, Padmakshi Rana and Steve Evans

12 Product Life Cycle Design for Sustainable Value

Creation 297
Jing Tao and Suiran Yu
 Contents xi

13 Engineering and the Skills Crisis in the UK and USA:

A Comparative Analysis of Employer-Engaged
Education 327
John R. Bryson, Rachel A. Mulhall, Nichola Lowe and Julianne Stern

14 An Industrial Policy Framework for High Value

Engineering 351
Chris Collinge

Index 369
 Editors and Contributors

About the Editors

Yufeng Zhang is Senior Lecturer of Operations Management at the Business
School of the University of Birmingham, UK. He had an earlier industrial career
with responsibilities for project management and new business development,
and continues to work very closely with industry aiming to help companies cope
with challenges and opportunities in managing complex global engineering
networks. He has researched and published in the areas of engineering man-
agement, network operations, international manufacturing, technology man-
agement and innovation.

Mike Gregory is Emeritus Professor of Manufacturing at the University of

Cambridge Engineering Department., UK. He chairs the UK Manufacturing
Professors Forum, co-chairs the Manufacturing Advisory Group of the UK
Government’s Department of Business Innovation and Skills (BIS), and is a
member of the supervisory board of the High Value Manufacturing Catapult.
Mike is a Fellow of Churchill College, Cambridge, and of the Royal Academy of
Engineering, UK, where he is a trustee.

xiii
xiv Editors and Contributors

Contributors
Saeema Ahmed-Kristensen Imperial College London, London, UK
John R. Bryson University of Birmingham, Birmingham, UK
Chris Collinge Birmingham Business School, Birmingham University,
Birmingham, UK
Ming Dong Shanghai Jiao Tong University, Shanghai, China
Steve Evans Institute for Manufacturing, Cambridge University,
Cambridge, UK
Mike Gregory Department of Engineering, University of Cambridge,
Cambridge, UK
Ting He College of Computer Science and Technology, Huaqiao
University, Xiamen, China
Yonglin Li Shanghai Jiao Tong University, Shanghai, China
Nichola Lowe University of North Carolina, Chapel Hill, USA
Veronica Martinez Institute for Manufacturing, Engineering
Department, Cambridge University, Cambridge, UK
Tim Minshall Institute for Manufacturing, University of Cambridge,
Cambridge, UK
Letizia Mortara University of Cambridge, Cambridge, UK
Rachel A. Mulhall University of Birmingham, Birmingham, UK
Andy Neely Institute for Manufacturing, Engineering Department,
Cambridge University, Cambridge, UK
Rob Phaal Institute for Manufacturing, University of Cambridge,
Cambridge, UK
David Probert Institute for Manufacturing, University of Cambridge,
Cambridge, UK
 Editors and Contributors xv

Padmakshi Rana Institute for Manufacturing, Cambridge University,

Cambridge, UK
Yongjiang Shi Institute for Manufacturing, Engineering Department,
Cambridge University, Cambridge, UK
Julianne Stern University of North Carolina, Chapel Hill, USA
Erik Søndergaard Technical University of Denmark, Lyngby,
Denmark
Jing Tao School of Mechanical Engineering, Shanghai Jiao Tong
University, Shanghai, China
Thomas P. Taylor Technical University of Denmark, Lyngby,
Denmark
Florian Urmetzer Institute for Manufacturing, Engineering
Department, Cambridge University, Cambridge, UK
Xiaobo Wu School of Management, Zhejiang University, Hangzhou,
China
Xiaofei Xu School of Computer Science and Technology, Harbin
Institute of Technology, Harbin, China
Miying Yang Institute for Manufacturing, Cambridge University,
Cambridge, UK
Suiran Yu School of Mechanical Engineering, Shanghai Jiao Tong
University, Shanghai, China
Tao Zhang Birmingham University, Birmingham, UK
Yufeng Zhang Birmingham Business School, University of
Birmingham, Birmingham, UK
Lina Zhou School of Computer Science and Technology, Harbin
Institute of Technology, Harbin, China
Quan Zhou School of Management, Zhejiang University, Hangzhou,
China
 List of Figures

Chapter 1
Fig. 1 An overview of the book 6

Chapter 2
Fig. 1 Technology management process framework 12
Fig. 2 Technology intelligence’s system operating cycle 19
Fig. 3 The process of selection of relative prioritisation of R&D
projects at BAe 25
Fig. 4 Goldwind’s technology cooperation with Germany from
Jacobs, REpower and Vensys 34
Fig. 5 Key demonstrations milestones in the emergence of consumer
digital cameras 38

Chapter 3
Fig. 1 Manufacturing system evolution matrix and key drivers 51
Fig. 2 Manufacturing strategy process for a product family 53
Fig. 3 International manufacturing network configurations and
capabilities. a Int’I Mfg. Network Configuration Map;
b Int’I Mfg. Network Capability Profile 56
Fig. 4 An evolutionary process of manufacturing systems towards
the Three-Dimensional Decision Space (the 3-D Model) 61

xvii
xviii List of Figures

Fig. 5 Capture Value from Global Networks 61

Fig. 6 Engineering value chain model 65
Fig. 7 New product-process matrix for environmental uncertainties 69

Chapter 4
Fig. 1 The creation and capture of value 76
Fig. 2 The service staircase 77
Fig. 3 The service staircase, focusing on value for the manufacturer 78
Fig. 4 The service staircase, focusing on value for the customer 85

Chapter 5
Fig. 1 Methodological approach for the development of leading and
lagging KPIs 116
Fig. 2 Example of identifying key cause-effect relations and
developing strategies at company B 118
Fig. 3 Example of completed KPI template at company B 119

Chapter 7
Fig. 1 Engineering value chain overview 153
Fig. 2 Agent-based simulation 155
Fig. 3 An agent-based model of EVC 156
Fig. 4 The overall view of the model 159
Fig. 5 The state chart of REC agents 160
Fig. 6 Interface of the model 163
Fig. 7 Simulated load curve versus real load curve 166
Fig. 8 “Inexperienced” versus “experienced” 167
Fig. 9 The influence of contact rate on transition 168
Fig. 10 The average values of individual discontinuers’ A and ESA 169
Fig. 11 The average values of individual continuers’ A and ESA 169

Chapter 8
Fig. 1 The roadmap from Industrie 1.0 to Industrie 4.0 180
Fig. 2 ICT-driven development from Industrie 3.0 to Industrie 4.0 182
Fig. 3 The integration of the new-generation ICT and manufacturing 183
Fig. 4 The agile manufacturing paradigm 189
Fig. 5 SOM system structure 191
 List of Figures xix

Fig. 6 Architecture of cloud manufacturing system 192

Fig. 7 The framework of Industrie 4.0 195
Fig. 8 Core technologies of software and Internet-based Industrial
Internet Reference Architecture of IIC 197
Fig. 9 The reference structure model for Chinese intelligent
manufacturing 199

Chapter 9
Fig. 1 Relationship between the decision problem and the
optimization model 210
Fig. 2 Two value chain networks prior to acquisition 212
Fig. 3 NSGAII-based solution procedure 219
Fig. 4 Representation of chromosome 220
Fig. 5 Spanning tree of a single-stage logistics network 220
Fig. 6 Determinant decoding flow chart 221
Fig. 7 Decoding algorithm 222
Fig. 8 Illustration of crossover operator 223
Fig. 9 Illustration of mutation operation 224
Fig. 10 The Pareto-front of the value chain network construction
problem 226

Chapter 10
Fig. 1 The relationships of coordination mechanisms 232
Fig. 2 The processor of modeling and optimization in EV chain 233
Fig. 3 Sequence of events in decentralized pattern 241
Fig. 4 Sequence of events in the coordination pattern 244

Chapter 11
Fig. 1 Life cycle value creation, developed from (Jun et al. 2007) 275
Fig. 2 Sustainable value (Yang 2015) 276
Fig. 3 Comprehensive forms of value analysis (Yang 2015; Yang
et al. 2013) 277
Fig. 4 Multiple forms of value uncaptured (Yang 2015) 278
Fig. 5 Conceptual model of engineering for sustainable value 279
Fig. 6 Rationale of sustainable value analysis tool (Yang 2015) 281
Fig. 7 Poster of sustainable value analysis tool (Yang 2015) 281
Fig. 8 Cards of sustainable value analysis tool (Yang 2015) 282
xx List of Figures

Chapter 12
Fig. 1 Sustainable value-driven life cycle design framework 302
Fig. 2 Three-dimensional model of SGs 303
Fig. 3 Function requirements on mechanical products 304
Fig. 4 Function requirements on life cycle 305
Fig. 5 Hierarchical product model 305
Fig. 6 Modified QFD for integrated design of product and life cycle
process 307
Fig. 7 Product life cycle design evaluation model based on LCS 310
Fig. 8 Feature-based life cycle modelling 318
Fig. 9 Framework of feature-based LCA 319
Fig. 10 Feature-based CAX–LCA system architecture 320
 List of Tables

Chapter 2
Table 1 LCA analysis: DME versus diesel in 2020 28
Table 2 LCA analysis: DME versus diesel in 2030 29
Table 3 The relationship between Chinese and European wind
energy firms with regard to different models of technology
transfer and technology cooperation 32
Table 4 Difference between the cathedral model and bazaar model 43

Chapter 3
Table 1 Evolutions of the Engineering Concepts 63
Table 2 The Key differences between Research, Engineering, and
Manufacturing 65
Table 3 A Comparison between GPN, GEN, and GSN 67

Chapter 5
Table 1 Key characteristics of companies for the application of the
KPI Development Toolkit 117

Chapter 6
Table 1 Motives for R&D internationalisation 133
Table 2 A comparison of motives found in the literature 134

xxi
xxii List of Tables

Table 3 A summary of overseas R&D units set up by European

companies 137
Table 4 A summary of overseas R&D units set up by Chinese
companies 138
Table 5 A list of informants 139
Table 6 Comparison across European companies 140
Table 7 Comparison across Chinese companies 141

Chapter 7
Table 1 UK residential energy consumer archetypes
(Zhang et al. 2012) 161
Table 2 Simulation parameter settings 165

Chapter 9
Table 1 Part of the Pareto-optimal solutions 226

Chapter 10
Table 1 Indices for ATP per-allocation model 251
Table 2 Notations in the ATP pre-allocation model 252
Table 3 Decision variables in ATP pre-allocation model 253

Chapter 11
Table 1 Examples of identifying value opportunities from value
uncaptured and their assessment 288

Chapter 12
Table 1 Life cycle options and attributes 306

Chapter 14
Table 1 The instruments of economic development 356
 Part I
The Engineering Value Chain and the main
Capability Areas
 1
Introduction
Yufeng Zhang and Mike Gregory

1 High Value Engineering (HVE),

the Engineering Value Chain (EVC),
and Global Engineering Networks (GEN)
Engineering directs the sources of power in nature for the benefit and
convenience of human being. The subject has been broadly considered as
the synthesising practice of creative art and scientific technology, and
specifically defined as problem solving within the constraints of tech-
nology, material, budget, and time. High value engineering (HVE) in
this context refers to the application of engineering technologies, skills,
and capabilities in creating high-value-added products and services that

Y. Zhang (&)
Birmingham Business School, University of Birmingham, Birmingham, UK
e-mail: zhangys@bham.ac.uk
M. Gregory
Department of Engineering, University of Cambridge, Cambridge, UK
e-mail: mjg@eng.cam.ac.uk
© The Author(s) 2018 3
Y. Zhang and M. Gregory (eds.), Value Creation through Engineering Excellence,
https://doi.org/10.1007/978-3-319-56336-7_1
4 Y. Zhang and M. Gregory

may lead to sustainable economic growth in complex global business

networks. Value creation through engineering excellence focuses on the
successful transformation of novel ideas and new technologies into
marketable products and services as well as the effective integration of a
series of engineering activities dispersed in various industrial settings and
along the engineering value chain (EVC). The EVC consists typically of
five categories of activities through which engineering operations con-
tribute to customer value and thus the overall competitiveness of a
company—idea generation and selection, design and development,
production and delivery, service and support, and recycling and disposal
(Zhang and Gregory 2011).
Competition in the modern global economy relies on gaining superior
engineering capabilities to create high-value-added products and services
rather than focusing solely on the output of an engineering system. Such
outputs are bound in local contexts and less effective, serving international
markets. Engineering network capabilities will address that limitation
because they are adaptive and can be transferred across geographic and
organisational boundaries. Global engineering operations are thus gaining
an increasing importance driven by the rapid growth of the emerging
economies, increasing engineering capabilities (and workforce) in the
developing countries, the global race for talent, and opportunities made
available by the progress of information technologies (Zhang and Gregory
2013). Engineering companies are pioneering new forms of organisations
which are knowledge based, technology enabled and globally networked,
as a result of the nature of the knowledge they deploy, the degree of
jurisdictional control they exercise, and the global client relationships they
seek. From a knowledge perspective, engineering companies tend to adopt
lateral team structures and reciprocal processes since they have a technical
or syncretic knowledge base supported by multiple disciplines rather than
a normative knowledge base. From a jurisdiction perspective, engineering
professions have weaker social closure and looser geographic jurisdictional
boundaries; therefore, it is relatively easy for engineering companies to
form a global network structure. From a client perspective, engineering
companies require a high degree of face-to-face client interaction in the
production process, and thus a high degree of geographic dispersion of
assets. The design and operations of global engineering networks (GEN)
 1 Introduction 5

are expected to develop these essential capability elements by accessing

and deploying dispersed resources, integrating and coordinating net-
worked activities, and managing engineering knowledge and collective
learning (Zhang et al. 2016).
Global engineering networks (GEN) are knowledge intensive,
people-centric, and very often project based. As a result of these dis-
tinctive features, the primary concern of engineering operations differs
from that of manufacturing or basic research in the tasks, outputs, and
required knowledge. The main drivers for engineering task choice are
usually external sources rather than the internal curiosity of an engineer
or the scientific desire of an engineering organisation. The outputs are
often one-off designs or solutions, rather than standardised manufac-
turing outputs, or a scientific enquiry or theory purely to improve our
understanding of the world or to fulfil the discovery desire of a
researcher. The required knowledge, especially engineering know-how, is
often intangible and embedded in different parts of an organisation or a
group of organisations. Such intangible, practical, unpredictable, and
embedded characteristics should be properly addressed in building high
value engineering capabilities in an international context (Zhang et al.
2014).

2 An Overview of the Book

This timely book provides a holistic view of this frontier knowledge area
for building high value engineering capabilities in global network oper-
ations. It updates the traditional disciplines of engineering and operations
management by addressing challenges and opportunities in building
global network capabilities. It also addresses a critical problem of the
relevant subject areas which are either technically driven or incapable of
dealing with the increasing complexity and dynamics in global engi-
neering networks. The readership includes researchers, practitioners,
policymakers, and students working in a wide range of high value
engineering areas, especially engineering management, operations man-
agement, service operations, supply chain management, technology
management, innovation management, engineering design and
6 Y. Zhang and M. Gregory

Engineering in International Networks, 6, 7 Engineering

Introduction
Sustainability
1 Engineering Design and Innovation, 5 11, 12

Engineering Production Engineering

2 3 4
Technologies Engineering Services

Skills/ ICTfor Engineering Networks, 8 Policies/

Education Economy
13 Engineering Network Dynamics and Optimisation, 9, 10 14

Fig. 1 An overview of the book

knowledge management, international manufacturing, industrial sus-

tainability, industrial policy, and regional economy.
The book contains a set of comprehensively developed chapters
organised into three parts (Fig. 1: An overview of the book). The first
part outlines the engineering value chain and introduces the main
capability areas of high value engineering. This section reveals the
changing global landscape of engineering, and provides a systematic view
of engineering capabilities which are critical to global competition in the
current business environment and in the future. To set a scene for
discussions in the following parts, key capability areas are introduced
around engineering technologies—to explore the linkage between basic
research and emerging technologies to high value engineering; produc-
tion engineering—to explain the implications of advanced manufactur-
ing methods to high value engineering; and engineering services—to
illustrate the value creation and transformation processes among engi-
neering services. The part has four chapters.

Part I: The Engineering Value Chain and the Main Capability Areas
• Chapter 1: Introduction
• Chapter 2: Engineering and Technology Management
• Chapter 3: International Manufacturing and Engineering
• Chapter 4: Engineering Services—Unpacking Value Exchange
 1 Introduction 7

The second part of this book includes latest methodologies and tech-
nologies to support innovation and optimisation in complex global
engineering networks. Such developments require the effective integra-
tion of engineering capabilities along the whole engineering value chain.
Focusing areas of discussion include engineering design, global product
development, innovation in international networks, information and
communication technologies (ICT), as well as modelling techniques for
engineering network coordination, simulation, and optimisation.

Part II: Engineering Network Innovation and Optimisation

• Chapter 5: Engineering Design and Innovation in a Global Context
• Chapter 6: Engineering in International Business Networks
• Chapter 7: Engineering Value Chain Simulation and Innovation
• Chapter 8: ICT for High Value Engineering Networks
• Chapter 9: Engineering Value Chain Modelling and Optimisation
• Chapter 10: Engineering Value Chain Coordination and Optimisation

The third part of this book looks into future trends and discusses
implications for developing high value engineering capabilities from the
broader perspectives of industrial sustainability, skills, education, econ-
omy, and industrial policies in an international context.

Part III: Future Trends and Implications

• Chapter 11: Engineering for Sustainable Value
• Chapter 12: Product Life Cycle Design for Sustainable Value Creation
• Chapter 13: Engineering and the Skills Crisis in the UK and USA
• Chapter 14: An Industrial Policy Framework for High Value Engineering

All together, our contributors have completed this book to place value
creation through engineering excellence on a solid ground of scientific
theories and enabling techniques. This will help engineers, scientists,
managers, and students to gain an overall understanding of this
cross-disciplinary knowledge area of an increasing importance in the
modern economy. Such an overall understanding of high value engi-
neering will enable companies of different sizes to benefit from global
engineering networks as well as informing policymakers to develop
effective industrial policies for enhancing the competitiveness of
8 Y. Zhang and M. Gregory

engineering sectors at regional and national levels. It has also been

expected that our collective efforts will lead to a systematic research
agenda for further advancement in this knowledge area through studying
key issues in building global engineering network capabilities.

References
Zhang, Y., & Gregory, M. (2011). Managing global network operations along
the engineering value chain. International Journal of Operations & Production
Management, 31(7), 736–764.
Zhang, Y., & Gregory, M. (2013). Towards a strategic view of engineering
operations. Proceedings of the Institution of Mechanical Engineers, Part B:
Journal of Engineering Manufacture, 227(6), 767–780.
Zhang, Y., Gregory, M., & Shi, Y. (2014). Managing Global Engineering
Networks (GEN) Part I: Theoretical foundations and the unique nature of
engineering. Proceedings of the Institution of Mechanical Engineers, Part B:
Journal of Engineering Manufacture, 228(2), 163–180.
Zhang, Y., Gregory, M., & Neely, A. (2016). Global engineering services:
Shedding light on network capabilities. Journal of Operations Management, 42
(3), 80–94.

Authors’ Biography
Yufeng Zhang is Senior Lecturer of Operations Management at the Business
School of the University of Birmingham, UK. He had an earlier industrial career
with responsibilities for project management and new business development,
and continues to work very closely with industry aiming to help companies cope
with challenges and opportunities in managing complex global engineering
networks. He has researched and published in the areas of engineering
management, network operations, international manufacturing, technology
management and innovation.
 1 Introduction 9

Mike Gregory is Emeritus Professor of Manufacturing at the University of

Cambridge Engineering Department., UK. He chairs the UK Manufacturing
Professors Forum, co-chairs the Manufacturing Advisory Group of the UK
Government’s Government’s Department of Business Innovation and Skills
(BIS), and is a member of the supervisory board of the High Value
Manufacturing Catapult. Mike is a Fellow of Churchill College, Cambridge,
and of the Royal Academy of Engineering, UK, where he is a trustee.
 2
Engineering and Technology Management
Yuan Zhou, Rob Phaal, Tim Minshall and David Probert

1 Getting Value from Engineering

and Technology
The impact of engineering and technology is visible in the many artefacts,
infrastructure and services that form the fabric of modern life. The
industrial revolution in the eighteenth century enabled new manufac-
turing processes that have transformed the world, spurred on by continual
technological developments, both incremental and transformational.
Scientific breakthroughs have enabled new technologies that disrupt

Y. Zhou (&)
School of Public Policy and Management, Tsinghua University,
Beijing, China
e-mail: zhou_yuan@mail.tsinghua.edu.cn
R. Phaal
T. Minshall
D. Probert
Institute for Manufacturing, University of Cambridge, Cambridge, UK
e-mail: rp108@cam.ac.uk
D. Probert
e-mail: drp1001@cam.ac.uk
© The Author(s) 2018 11
Y. Zhang and M. Gregory (eds.), Value Creation through Engineering Excellence,
https://doi.org/10.1007/978-3-319-56336-7_2
12 Y. Zhou et al.

existing industries (Bower and Christensen 1995) and enable the creation
of new ones. Technological disruption will bring great benefits but also
challenges, such as the impact of computerisation on skills and employ-
ment (Frey and Osborne 2013).
Scientists, engineers and other technologists have a crucial role to play
in the development and deployment of technology for the economic
benefit of society, and also to address challenges facing humanity, such as
climate change and resource scarcity. In this context, the management of
engineering and technology becomes increasingly important.
Technological investment and effort needs to be aligned with organisa-
tional and wider social needs and aspirations throughout the life cycle
from design, through to production and the creation of valuable services,
as depicted in Fig. 1.
The word “engineer” is derived from the Latin ingeniare, meaning “to
produce” (Mitcham 1978). This original form of interpretation high-
lights the many activities and roles that engineers undertake, deploying
scientific and craft knowledge to create solutions to problems and to
address needs in society, industry and the environment. The word
“technology” can be broadly considered as “know-how” (Phaal et al.
2004)—i.e. the application of scientific and other knowledge in context.
Thus, engineering and technological knowledge are closely related, and
engineering education includes a combination of “hard” (scientific) and
“soft” (craft) knowledge with a practical applied orientation.

Fig. 1 Technology management process framework. Adapted from Farrukh et al.

(2000)
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