Gomez, Joyce Anne R.

August 2,2017
BSEE/EE31FA1 Ms. Mary Anne Sevilla

Journal Article

Management Levers for Product Platforms

Platforming has become an important means of cost-sharing among industrial products.
However, many firms face systemic downward pressure on commonality, with the result that
many platforms realize less commonality than intended. Past research has hypothesized that
divergence is the result of conflicting tensions between product customization/optimization and
cost control. This article investigates the control and incentive levers available to platform
managers to shape the behavior of the organization when divergence opportunities arise.
Management levers are drawn from a series of 12 industrial case studies, stemming from
investigations of the causes of divergences. These management levers are categorized as technical
levers, financial levers, and organizational levers. This article illustrates each of the management
levers with examples from the case studies.
Gomez, Joyce Anne R. August 2,2017
BSEE/EE31FA1 Ms. Mary Anne Sevilla

Journal Article

Equity Breakeven Point: A Graphical and Tabulation Tool

for Engineering Managers
This article presents a graphical and tabulation framework for the application of equity
breakeven point (EBP) for financial management of engineering projects. EBP was previously
developed as a computational tool for the analysis of mortgage payments. This article presents a
user-friendly framework for visualizing and assessing the utility of EPB in engineering projects. The
proposed graphical and tabulation framework extends the application of EPB to general capital
investments, which are part of engineering projects. Engineering managers and other
practitioners can utilize the tabulation of EBP to assess what-if options in major financial
transactions. The mathematical derivation of the EPB indicates the time when the unpaid balance
on a capital investment is equal to the cumulative equity in the investment, thereby providing a-
priori insight into how long it might take to retire an investment loan on the strength of the
accrued equity. This type of graphical visualization is useful for negotiating the terms of acquiring
and/or managing large engineering projects.
Case Study

Managing risk through effective team-based decision

making

Making sure that government, businesses and households have secure supplies of energy
is a huge commitment. Engineers working for the energy supply companies must make sure that
this commitment is met 24 hours a day, 365 days a year. This case study shows how the engineers
who work for one of the UK's major energy businesses, RWE power, are involved in securing
energy supplies and in the management of risk.

Risk lies at the core of any enterprise activity. Businesses therefore must manage risks
every day of the week, for 52 weeks in the year. Successful management of risk involves getting
the balance right between risk and other factors such as cost and return.

Engineers deal with real problems involving real materials and projects. The work of an
engineer is varied and stimulating.

Engineering is an exciting career. For example, graduate engineers working at a power

station will not only work with computer models, but also will help to run projects, control the
materials, equipment and plant. This is engineering on a grand scale. Engineers working for RWE
npower are trained at all levels to combine technical skills with commercial knowledge. To be
successful they need to understand the business implications of the decisions they make.