Before reading this, please see the post of December 7, 2017, where I have released a comprehensive guide for engineers, students and educators on value creation in engineering enterprises…..
In my last post, I wrote a brief explanation about value and value creation, noting that “value” has many different meanings.
In this post I will summarize what Bill Williams and I think is a new theory of engineering value creation, the subject of my address to the International Conference on Engineering Education Research (iCEER 2016) in Sydney on November 24.
The word ‘value’ is challenging for engineers because it has several related meanings.
First the mathematical meaning. ‘Value’ denotes a number associated with a variable, for example x=2.72. It can also denote a numeric value in a spreadsheet cell resulting from calculations.
In this series of posts, I am going to show how engineering underpins the world economy more than we think, and how we can improve our engineering performances by changing the way we think about engineering. The last post was bad news for us engineers. The good news is that we can all gain by improving our engineering performances. However, to turn our performance around, we first need to understand what’s not working.
Companies like IPA Global have answers based on statistical analysis, and have provided these answers for several years. They will tell you which factors are statistically correlated with successful projects, as Ed Merrow has written in his book. However, even the projects they interact with are getting worse, and there are many more projects that they don’t assess, such as government engineering projects. Political constraints with these projects usually rule out closing down a failing project: unemployment is often a bigger issue than a failed project for government sponsors.
Clearly there are other factors at work here. The fundamental difficulty with statistical correlations is that they cannot provide causes. Try this example. My hair grows every day and Halley’s comet is moving further from the sun every day. But that does not mean that my hair will get shorter when Halley’s comet comes back towards the sun. Statistical correlations can tell you which factors are correlated with project outcomes, but these associations cannot tell us much about the causes of project failures or how to make improvements.
We have to turn to different kinds of research to find the underlying causes for engineering project failures. The qualitative ethnographic research we do with engineers can help identify potential causes that statistical correlations miss.
Despite current on-going energy shortages and load shedding, Pakistan has energy wealth that could be unlocked just by thinking differently about electricity distribution.
Electricity supply is capital intensive engineering. Pakistan built the existing electricity supply network with the help of large loans on favourable terms from the World Bank and other international institutions.
In addition, Pakistan has benefited from the generosity of Saudi Arabia in providing low-cost fuel.
Pakistan has reaped the benefits of large hydroelectric generating plants at Mangla, Tarbela and other dams: they generate electricity with no ongoing fuel costs.
As fuel and capital borrowing costs rose for Pakistan in the last 20 years, and the proportion of cheap hydro power reduced, Pakistan governments shielded people from the real cost of electricity generation with generous subsidies but these cannot continue.
Another factor that frustrates efforts to find energy solutions is the high cost of engineering in Pakistan. Through research we have identified many factors that Pakistan engineers struggle to overcome, such as the deep social divides that inhibit effective collaboration and knowledge sharing between engineers, investors and labour. Given the same requirements for product availability and service quality, the cost is almost invariably higher in Pakistan than in industrialised economies like Europe and the USA. Just as an example, when indirect costs are taken into account, the cost of safe drinking water ranges from US$50 to $150 per tonne in Pakistan while the cost in Australia, the driest continent, is US$3 per tonne.
(This is an updated and extended version of an article published in The News, Pakistan, 31st May 2013)
Some of you may have wondered why there has been a little gap in my blog posts. I have been pre-occupied with visits to several countries.
My other major project, Close Comfort has developed very quickly with keen anticipation particularly in Pakistan where electricity supplies are subject to frequent interruptions due to load shedding. Pakistan’s electricity grid is struggling to keep up with demand for air conditioning, and I hope to be able to offer a sustainable solution, as explained in Chapter 13 of the book. Continue reading
This question is particularly relevant now in many countries where engineering activity is at a lower level than normal and may engineers are looking for work. This happens at times of low economic growth or recession: it could even be the “new normal” for a while.
It can be a very depressing experience to be looking for engineering work in these circumstances, particularly if you don’t understand how the job market works. However, as an engineer, even a novice engineer with little experience, you are one of the most employable people around. It is easier for you to find a job than for nearly everyone else. Continue reading