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Fig. 1 - Aligning NPPD-SCM
(New Product / Project
Development - Supply
Chain Management)
processes: the framework
corresponding supply chain features (e.g. num-
ber and localization of suppliers), and the choice
of the organizational/technological mechanisms
to manage the interface between the two proces-
ses. Figure 1 shows that NPPD-SCM alignment
is reached when product features are aligned to
supply chain design, and proper organizational/
technological mechanisms are in place to assure
the alignment.
As far as the alignment between product fea-
tures and supply chain features is concerned,
how product is designed influences supply chain
costs (e.g. when non-standard materials are
chosen purchasing costs might increase). Mo-
reover, it influences supply chain resilience to di- the engineering units work on different technical
sruption (e.g. when a modular design approach
is used, the supply chain may be recombined in
the case of a disruption of one “node” providing
a specific module).
As far as the alignment within NPPD-SCM pro-
cesses is concerned, a plethora of both techno-
logical and organizational tools can be used. Ta-
ble 1 lists the possible tools that can be used.
In this section, we will show the applicability of
these techniques to optimize performance of a
project supply chain during the construction and
commissioning phases.
The first example is EpcCo, disguised name of a
global player in the EPC industry, working mainly
with oil & gas companies in remote areas and
deep-water. NPPD process is the core process
of EpcCo and consists in the engineering and
procurement of parts for the overall construc-
tion. Suppliers delivering late are responsible of
huge losses. In fact, consistent delays in both
materials and documents flows can cause a time
shifting in the assembly plans of the construction
yard, inducing substantial costs for even just few
hours of inactivity. Moreover, due to the project
organization structure, if a supplier is late in pro-
ducing engineering and related documentation
that has been asked for, it jeopardizes the plans
and the activities of other units that are working in
parallel. Moreover, suppliers delivering low qua-
lity of both products and documents are likely to
trigger huge time losses in the construction yard.
To assure NPPD-SCM alignment, an expediter of
the product category, appointed to a specific “Of-
fice”, is in charge to monitor the order progress.
She/he is visiting suppliers’ plant, constantly mo-
nitoring progress and quality. In the meantime,
specifications of the overall project. The expe-
diter represents a direct contact with suppliers
and guarantees the flow of information regarding
the following: engineering, materials purchasing,
production plans and packaging from the sup-
plier side to EpcCo’s project manager.
Each expediter, according to the criticality of the
object that has been entrusted, must provide
monthly updated information to the project ma-
nager. EpcCo is exposed to geo-political risks.
This risk source can have detrimental conse-
quences on the security of workers within the
construction yard and should not be undervalued
by the company. To mitigate this risk, EpcCo’s
products are modular. Preassembled modules
are delivered on site to minimise the added-value
activities within the risky construction yard.
The second example is Ansaldo Energia, Italy’s
largest supplier, installer and service provider for
power generation plants and components and
one of the world’s leading players in the sec-
tor. The most relevant products in its Ansaldo’s
Impiantistica Italiana - Maggio-Giugno 2015 17