How to Use Project Management Techniques
to Improve the Supply Chain Process
SCM 463 - Global Supply Chain Management
Arizona State University-Tempe
December 11, 2022
Siemens-Energy is one of the leading technology
companies in the world. One of the areas of
specialization for the firm is industrial gas
turbine manufacturing. According to Sadler
(2020), Siemens has emerged as one of the
preferred brands in the industrial gas sector. The
company has two major production plants
where it manufactures gas turbines. One of the
plants is in the United States while the other is in
Germany. The industrial gas turbine industry has
become increasingly competitive as new firms
continue to emerge while the existing
corporations seek to expand their territories
(Sayigh, 2018). It means that a firm must find a
competitive edge over its rivals to remain
sustainable in such a market. One of the areas
that a firm can achieve sustainable advantage is
to ensure that it has an efficient supply chain
management system. The research seeks to
assess how project management techniques be
used to improve supply chain management,
specifically focusing on industrial gas turbines
project at Siemens-Energy.
A supply chain system creates a coordinated
platform linking an organization with other
entities to ensure that raw materials are
obtained, processed, and the finished product is
made available to customers at the right time. It
starts with the identification and engagement of
specific suppliers who can deliver the needed
materials regularly and reliably (Ceyhun, 2020).
A firm then has to put in place measures to
ensure that the needed materials are availed at
the production plant. Delivery of products can be
done by the supplier, the buyer, or through third
parties (Didonet and Díaz, 2012). A firm must
choose the approach that maintains the cost as
low as possible without compromising the
reliability of the process.
Processing is often considered part of supply
chain management. The raw materials should be
consumed to help in the production of the
industrial gas turbine (Kerzner, 2017a). At the
production stage, the focus is to maintain high
levels of efficiency to ensure that the best
products are delivered at the lowest cost
possible. It is at this stage that the management
must ensure that cases of theft and unnecessary
destruction of materials are eliminated as much
as possible. Prolonged storage of raw materials
should also be eliminated because it increases
warehousing costs.
Distribution of the finished products is the next
phase in the supply chain management system.
As mentioned above, Siemens has its production
plants in the United States and Germany. The
company’s Giga factory in Berlin, Germany is
intended to facilitate increased production
(Siemens-Energy, 2022b). Once the industrial
gas turbines are produced in these production
plants, they have to be distributed to all the
markets where the company operates (Saad and
Asmuin, 2014). The Middle East, especially
Qatar, the United Arab Emirates, Saudi Arabia,
Jordan, Kuwait, and Egypt are currently the most
attractive markets for these products. India,
China, Japan, and the Philippines are the other
major Asian markets. When it comes to
international distribution of the products, many
companies prefer using logistics companies such
as Supply Chain & Global Forwarding, Nippon
Express, or Kuehne + Nagel (Hanne and
Dornberger, 2017). The preferred choice should
offer the highest level of efficiency possible.
Once they arrive at the destination country,
Siemens will need to ensure that they reach
retailers. A firm may choose to have its retail
offices or choose specialty shops in the foreign
market (Alfoqahaa, 2018). It is the responsibility
of the management of this company to ensure
that the selected channel will ensure that
products reach the client when in the right state.
Clients for industrial gas turbines are often
organizational buyers. In most cases, the client
would be the government of a specific country
(Rao, 2018). In other cases, the client may be
large companies or non-governmental
organizations producing energy for consumption
or commercial purposes. The company has to
ensure that the product reaches customers in
time and that any assistance that may be needed
for the installation and maintenance is provided.
Ideally, such activities should be designed as
projects to enhance their efficacy.
Project management has become a standard
practice among companies, irrespective of their
size when undertaking major activities. It helps
in defining specific resources that should be
used, a timeline of activities, and the goal that
should be realized upon completion (Wysocki,
2019). It is an effective strategy when a firm
intended to conduct a cost-benefit analysis of a
major initiative before its implementation. The
approach that a firm takes in project
management depends on various factors such as
the size of the company, resources available, the
nature of the project, and the expertise of the
team involved in the implementation.
The supply chain management in the industrial
gas turbines at Siemens-Energy will ensure that
there is proper coordination of activities from
the initial stage of sourcing for raw materials to
the final stage of installing the turbines. It is
comprehensive coordination of activities of
various experts in different parts of the world to
ensure that clients are satisfied (Klumpp and
Ruiner, 2018). It requires close cooperation of
the team members involved in undertaking
specific activities. They need to maintain close
communication and sharing of data to ensure
that mistakes are avoided as much as possible.
The success of the project depends on the
efficiency and effectiveness of the stakeholders
involved in the entire supply chain (Barrett,
2018). The goal of this dissertation is to discuss
how to use project management techniques to
improve the supply chain process of the
industrial gas turbine project at Siemens-Energy.
It shall involve a critical evaluation and analysis
of the supply chain path of gas turbine parts,
from assembling, manufacturing, installation,
commissioning, and maintenance processes.
It is necessary to mention the merit of the topic
as a research. The topic focuses on how two
management tools, which are project
management and supply chain management,
can be used to help enhance the success of
Siemen’s industrial gas turbine project. Most
studies have looked at how the two tools can be
used independently to ensure the success of a
project. This research takes a different approach,
looking at how they can be intertwined to
enhance the success of a project.
The Rationale of the Research
Project management and supply chain
management are some of the areas of study
which have gained massive popularity over the
recent past. While project management is
considered an effective tool in undertaking
major investment activities within a specific
timeline using the available resources, supply
chain management focuses on enhancing
efficiency in the entire process of making a
product available to customers. Combining the
two in facilitating an effective process of
sourcing for materials, manufacturing, and
making available industrial gas turbines for
Siemens-Energy is critical (Ahmad, 2018). This
company is operating in a highly competitive
industry. As such, it is constantly under pressure
to lower the cost of production as much as
possible while at the same time maintaining high
quality for its products.
The industrial gas turbine project can help
transform the fortunes of this company in the
energy sector if it is done properly. It can help
the firm to create a unique market niche and to
develop a unique pool of loyal customers in the
market (Sadler, 2020). These two management
tools can help the firm to achieve the required
level of success (Kerzner, 2017b). Project
management will help in defining specific
activities that should be conducted in the
industrial gas turbine initiative. It will also
determine the resources needed and the specific
goals that should be realized. On the other hand,
supply chain management will help determine
how the entire project should be conducted,
from accessing the materials, manufacturing,
storage, transportation, and distribution of the
finished products in the market (Kerzner, 2018).
The research is important because it will help in
defining how the management of Siemens-
Energy will use the two tools to ensure that the
industrial turbine gas project is a success.
Case Study
Siemens-Energy WWL is a technology company
that has been operating in Qatar since 1970. The
firm has a large product portfolio in the fields of
transport, infrastructure, and industry. For the
past 30 years, the company has been keen on
using innovative technologies to transform
transport and manufacturing sectors not only in
Qatar but also in other parts of the world (Sadler,
2020). It has partnered with other companies to
find ways of reducing the emissions of
greenhouse gases while at the same time
enhancing efficiency and productivity in these
sectors. Siemens-Energy reports that the
company has ventured into the production of
batteries for electric cars and ferries (Weimoth,
2022). Figure 1.1 below shows an all-electric
ferry that relies on Siemens battery. The goal is
to be at the forefront in the fight against global
warming.
Figure 1.1. All-electric ferry powered by Siemens
batteries
In the energy sector, Siemens is involved with
generation, transmission, and industrial
applications. It has also made major investments
in the new energy business and the renewable
energy sector as a way of helping its clients to
reduce their reliance on renewable energy. This
project primarily focused on the industrial
application sector of the company. The company
acknowledges that the industrial sector is one of
the largest consumers of energy, leading to
massive emissions of carbon dioxide gases. As
the sector continues to play a critical role in the
growth of the economy, it is essential to find
ways of providing renewable energy to it to help
protect the environment.
Siemen’s Industrial Application Division was
created to find innovative ways of addressing
energy needs for these companies. “Our
portfolio includes mission-critical rotating
equipment that we maintain throughout its
lifecycle with our comprehensive fleet of
services, and electrical, automation, and digital
offerings that optimize both this equipment and
services,” (Siemens-Energy, 2022b, para. 5).
Figure 1.2 below shows an industrial gas turbine
produced by Siemens-Energy. The company has
put in place a mechanism to ensure that it serves
the different needs of its customers in the supply
chain of renewable energy. These services and
products are available throughout the Middle
East and other parts of the world where Siemens
operate.
Figure 1.2. Industrial gas turbine
In this case study, the focus was on the industrial
gas turbines project. The company manufactures
various types of gas turbines, which include
heavy-duty gas turbines, industrial gas turbines,
and aero-derivative gas turbines among others.
Some of these turbines are built in Berlin,
Germany, while others are manufactured in
Charlotte, North Carolina in the United States.
Once manufactured, the company must ensure
that these gas turbines are made available in
specific places where they are needed (Sivaram,
2018). Although a significant number of this
equipment are used in the country where they
are manufactured, others have to be
transported across the world.
Supply chain management is a major concern for
the company as it seeks to revolutionize
industrial power production in the renewable
sector (Ward, 2018). On the one hand, the firm
has to ensure that all the raw materials needed
for the production of the gas turbines are made
available to the company at the right time. On
the other hand, the firm has to ensure that once
the turbines are manufactured, they have to be
moved safely and efficiently to clients all over
the world. As Zwikael and Smyrk (2019) observe,
a weak supply chain system can have a
devastating impact on a manufacturing plant.
The needed raw materials should be made
available at the right time, meeting specific
quality requirements (Earley, 2014). The firm’s
cost of production can significantly increase if
there is an oversupply of the raw materials
because the items will have to be kept in a
warehouse until they will be needed.
Just-in-time (JIT) is a technique that has been
popularly used in various major companies
around the world to ensure that the supply chain
is as efficient as possible. It involves making
available the materials when they are needed
(Chung, 2021). It ensures that the raw materials
are not delivered in excess. The strategy
eliminates unnecessary pilferage, damage
caused by excessive handling, and the high cost
of warehousing. JIT requires an effective
communication system between various
stakeholders in a firm (Hellingrath and
Lechtenberg, 2019). The production unit should
provide information about the needed materials
to the procurement department (Toorajipour, et
al., 2021). The same information should be
immediately available for the finance
department responsible for releasing funds, and
the transport unit that will facilitate the
movement of the same. The same information
should also be relayed, in real-time, to the
suppliers so that they know the needed quantity
and quality of the products (Spalek, 2019). Such
an effective system of communications
eliminates cases of delays or delivery of wrong
products.
Research Questions and Objectives
It is important to define the research questions
that will guide the process of data collection in
this research. As Davidson (2019) observes,
research questions help in defining the kind of
information that needs to be collected from the
field. A researcher can easily collect irrelevant
data if there are no specific guidelines to be
followed. The questions help in addressing that
challenge. The following are the specific
research questions that the researcher seeks to
answer using both primary and secondary data:
1. How can Siemens-Energy use project
management techniques to improve the
supply chain process of industrial gas turbine
projects?
2. What is the supply chain path of the gas
turbine part, from assembling,
manufacturing, installation, commissioning,
and maintenance?
3. What are the challenges that Siemens-
Energy can face in the project management
approach on supply chain management of
industrial gas turbines?
4. What are the ways in which this company
can overcome the identified challenges?
The dissertation will focus on achieving specific
objectives based on the research questions
above. The primary aim of the research is to find
a solution towards reducing the lead time of
parts used in the operation and maintenance of
industrial gas turbines, and other factors
affecting industrial gas turbine projects ranging
from installation, commissioning, operation, and
maintenance. The researcher will use survey to
achieve the aim and objectives of the
dissertation. Chapter 3 provides a detailed
explanation of the methods used to collect and
process data. Upon the completion of this
research, the following objectives should be
realized:
1. To critically assess how Siemens-Energy can
use project management techniques to
improve on the supply chain process of
industrial gas turbine project;
2. To critical analyze the supply chain path of
gas turbine parts, from assembling,
manufacturing, installation, commissioning,
and maintenance;
3. To critically evaluate the challenges that
Siemens-Energy can face in the project
management approach on supply chain
management of industrial gas turbines;
4. To determine ways in which this company
can overcome the identified challenges;
5. To contribute to the existing knowledge on
how project management can enhance
supply chain management within an
organization
Dissertation Structure
The dissertation has been divided into five main
chapters addressing specific issues. Chapter 1
provides the background of the study and
addresses the rationale for the topic. Research
objectives and questions are also presented in
the chapter to help understand the goal that it
seeks to realize. A brief case study about
Siemens-Energy WWL is also addressed. The
second chapter provides a detailed review of the
literature. The researcher uses this chapter to
discuss what other scholars have found out in
this field or other related fields. It helps to
identify the existing knowledge gaps or conflicts.
It also eliminates the possibility of duplicating
the already existing information.
The third chapter outlines the activities involved
in the data collection and analysis in this project.
The method used to collect, analyze, and present
data are discussed in detail. Issues about
research design, reliability, validity, and
generalizability are explained. Limitations and
challenges faced and how they were overcome
in the study are also addressed in the chapter. It
also addressed the ethical considerations that
the researcher observed in the study. The fourth
chapter involves the presentation of the results
from the analysis of primary and secondary data.
It helps in addressing knowledge gaps identified
in the review of the literature. The final chapter
of the dissertation presents the conclusion and
recommendations.
Literature Review
The previous chapter provided background
information about the topic, its rationale, the
aim, and the objectives that should be realized.
This chapter focuses on reviewing the literature
to determine what other scholars found out
about this topic and the existing knowledge gaps
and contradictions. The review is important
because it not only facilitates the identification
of knowledge gaps but also avoids duplication of
already existing pieces of information.
Information collected from secondary sources
helps in defining the focus of primary data
collection. As mentioned in the previous
chapter, the primary aim of the research is to
find a solution towards reducing the lead time of
parts used in the operation and maintenance of
industrial gas turbines, and other factors
affecting industrial gas turbine projects ranging
from installation, commissioning, operation, and
maintenance.
The scope of the research was limited to
industrial gas turbine projects. The themes
presented in this chapter include supply chain
management, project management approaches,
and challenges in the supply chain of industrial
gas turbines. The chapter also provides a
theoretical framework, critically evaluates how
the study relates to the literature in general, and
how it relates to previous studies. Key themes
and gaps in the literature are identified before
providing a summary of the chapter.
Supply Chain Management
Supply chain management (SCM) has emerged
as a field in management that facilitates the flow
of goods and services from one location to
another. According to Camarinha-Matos,
Almeida, and Oliveira (2019), SCM involves
managing the flow of products, and it includes all
processes involved in the transformation of raw
materials into finished products. It involves
deliberate efforts to streamline supply activities
with the primary goal of maximizing customer
value. By streamlining the activities, wastes will
be eliminated while efficiency enhanced to
ensure that a firm can charge competitive prices
without compromising on its profit margin
(Agarwal, Sharma, and Mathew, 2016). With
high-quality products and relatively fair prices, a
firm can achieve a competitive advantage over
its rivals in the market (Chung, 2021). It will be
able to offer its clients maximum value for every
product that they purchase.
Supply chain management involves numerous
activities, as shown in figure 2.1 below, meant to
ensure that products are made available to
customers in the market. It starts with the
procurement of the raw materials that are
needed at the production plant (Didonet and
Díaz, 2012).
Figure 2.1. Supply chain management
The procurement unit must ensure that it finds
reliable suppliers that can provide quality
products at all times. Once purchased, the raw
materials have to be delivered to the production
plant so that they can be processed
(Toorajipour et al., 2021). The actual processing
of the raw materials, known as the production
process, is also considered part of the SCM
(Hanne and Dornberger, 2017). The finished
products must then be transported to the
market for the convenience of customers. It is
equally important to ensure that there is regular
research conducted to help develop the system
by eliminating weaknesses and wastes while
improving the ability to respond to emerging
customers’ needs (Hellingrath and Lechtenberg,
2019). The activities identified above must be
resourced, which means that activities in finance
department are support functions of the SCM.
Supply Chain Path of Industrial Gas Turbine
Parts
The demand for gas turbines has been growing
steadily in the global market, as Fouquet (2018)
reports. A complete gas turbine has several
parts, from an air inlet, a compressor, the
combustion chamber, turbine section, an
exhaust, and accessories section. However,
developing a complete gas turbine requires the
assembling of several parts. The supply chain
path of industrial gas turbines parts involves
several activities (Klumpp and Ruiner, 2018).
Iqbal (2020) emphasizes the need to understand
the activities involved and how they are related.
It starts with assembling the needed parts, some
of which have to be sourced from other
manufacturers. The procurement and logistics
departments are responsible for ensuring that
these parts are made available at the production
plant.
The next step in this path is the manufacturing
and installation of parts to have a complete
system. At Siemens-Energy, manufacturing
activities of the firm are undertaken in Berlin,
Germany (Siemens-Energy, 2022a). The size and
capacity of the gas turbine will depend on the
purpose it will serve. Figure 2.2 below shows
different parts of a complete gas turbine that is
ready for installation. Once the complete system
is developed, the next phase is the
transportation and subsequent installation at a
client’s premises. The system has to be properly
installed as per the specifications of customers.
Once installed, the system will need
commissioning after its functionality is tested.
During the commissioning, the manufacturer will
be handing over controls of the gas turbine to
the client. There should be an arrangement
made between the client and the manufacturer
on how the system will be maintained regularly
to ensure that it functions properly for as long as
possible.
Figure 2.2. Industrial gas turbine parts
Project Management Approaches
A project manager has an important
responsibility of selecting an appropriate project
management approach that can help in
achieving specific goals. When selecting the
approach, various factors have to be put into
consideration, as Kerzner (2017a) observes. The
budget for the project, the size of the team
involved in the project, the ability to take risks,
and flexibility are some of the major factors that
have to be considered. One also has to take into
consideration the time within which activities
have to be completed and client or stakeholders’
collaboration. However, Kerzner (2017) warns
that while it is important to take into
consideration the above factors, each project is
unique and should be treated as such. The
following are some of the popular project
management approaches that can be considered
in an industrial gas turbine project.
Agile
This approach has become one of the most
popular project management methods in various
fields. Badiru (2021) explains that the method
was developed by critics of linear strategy as
defined in the linear approach. It emphasizes the
need for collaboration among all the
stakeholders involved. It creates a platform
where information from clients, employees,
managers, and suppliers is used to make
necessary adjustments in the project when
necessary (Ma and Rong, 2022). The approach
values quick decision-making based on data that
has been collected from the field.
As the name suggests, this approach involves
having short phases of specific activities and
requires regular testing and assessment to
determine if the team is on the path to achieving
the primary goal (Davidson, 2019). It is a highly
flexible strategy and data-driven. Dobie (2020)
and Clegg et al. (2020) argue that the fact that
this approach takes into consideration the views
of many stakeholders may make it a time-
consuming method of implementing a project.
Cases often arise where individuals have
conflicting views on a given issue. Despite this
challenge, the method is preferred because
upon completion of the project, the majority of
the relevant stakeholders will be satisfied
because their views were taken into
consideration. Figure 2.3 below summarizes the
cyclic nature of an agile project management
approach.
Figure 2.3. Agile project management approach
When using this approach, it is important to note
that it also has disadvantages. One of the main
weaknesses of this model is that team members
can easily get sidetracked because of lack of
standard process that should be followed. Voehl
and Harrington (2017) explain that there is also
the risk of incremental delivery when handling
long-term projects. These challenges should be
effectively managed by the responsible parties
to ensure that a given project achieves the
intended goals.
Waterfall
This approach is one of the most common
methods of project management that has been
traditionally used in the manufacturing sector. It
takes a linear approach, where activities in one
stage have to be completed before moving to
the next. As shown in figure 2.4 below, the first
step is idea engineering where the team is
expected to define what is expected in the
project. The next step is system design, where
the team develops a system that is based on the
idea developed. The implementation phase
involves putting into practice the plan that has
been developed in the project. There is the
testing and validation phase where the team is
expected to determine if the system is working
as per the expectation.
The last phase is maintenance to ensure that the
entire system remains efficient (Nicholas and
Steyn, 2021). The approach is simple to
implement in the manufacturing and
construction sector, which explains why it has
remained popular, but Barrett (2021) warns that
it is a simplistic approach, especially when
handling complex projects. It can be considered
in the supply chain management of industrial gas
turbine projects. Ajam (2021) explains that one
of the major disadvantages of this approach is
high rates of uncertainty. The uncertainty causes
serious risks to the successful completion of
long-term projects.
Figure 2.4: Stages in the waterfall approach of
project management
Lean
Lean project management is another strategy
that is popular when managing major projects.
As the name suggests, the primary focus of this
project management strategy is the
minimization of waste when undertaking a
project. The trend started in Japan and gained
acceptance around the world as a means of
maximizing the value for investors (Clegg,
Skyttermoen, and Vaagaasar, 2020). When using
the method, a project manager is expected to
ensure that they consistently investigate and
eliminate any form of waste in the project. This
way, it becomes possible to continuously
improve the quality of products while at the
same time reducing the cost of production. It
classifies waste management in a project into
three categories. The first is called Muda, which
involves activities and processes which are
considered not to add value to the project.
Activities such as overproduction and over-
processing fall into this class.
Mura is another way of eliminating wastes,
which involves eliminating delays that may affect
activities down the line of production. The goal
is to ensure that there is an effective and smooth
flow of activities without any delays (Zwikael and
Smyrk, 2019). The team may need to assist the
department that is identified as slowing
activities in the production line. The third
strategy, which is called muri, focuses on the
elimination of inefficiency among managers.
Sometimes a project may be delayed by slow
decision-making, micromanaging activities of
employees, time-wastage, and poor
organization (Meredith and Shafer, 2021). It is
essential to eliminate such poor leadership
practices to enhance efficiency in project
management.
The overall goal of lean project management is
to enhance operational efficiency at the lowest
cost possible. It is the only way of ensuring that
investors get the highest value for their
investment. One of the major limitations of lean
project management is the overemphasis on
efficiency in the use of resources (Vanzant,
2020). It is possible that employees may be
forced to sacrifice quality to limit the use of
resources. Figure 2.5 below shows activities
involved in lean project management approach.
It may also have a negative effect between a
project manager and team members when there
is immense pressure to cut expenditure.
Figure 2.5. Lean project management approach
Scrum
Scrum, as an approach to project management,
has also gained massive acceptance. Although it
is based on some of the agile project
management principles, it is unique in many
ways. As Ahmad (2018) explains, the method
emphasizes the need for accountability,
collaboration, and enhanced interaction among
stakeholders involved in the project. It holds the
belief that success can only be achieved when
stakeholders in the project work as a team, and
information is effectively shared as necessary. It
is based on five principles of courage, openness,
respect commitment, and focus. Courage is
needed because sometimes the team difficult
decisions that may not be pleasant to everyone.
If it is the right decision, then the team may have
to choose it even if it is unpopular among a
section of the stakeholders (Spalek, 2019).
Openness is encouraged to avoid
misinformation and misunderstanding that may
arise.
Every stakeholder is expected to remain
committed to the project and focused on
achieving the set organizational goals. Scrum
encourages both the managers and junior
officers to maintain respect as a way of
enhancing teamwork. One of the challenges of
this strategy is that it does not prioritize timely
delivery of projects. As such, chances are always
high that a delay could occur when undertaking
major projects. It also fails to outline how teams
can cooperate to achieve intended goals.
Six Sigma
The tool has widely been used to improve quality
and production processes in an organization. It
identifies six stages that a project management
team should follow to help eliminate challenges
and improve efficiency in a given project. As
shown in figure 2.6 below, it starts by defining
the problem and goals that should be achieved.
This step helps in ensuring that all stakeholders
understand what needs to be achieved through
the project (Barrett, 2021). The second step is to
measure aspects of the existing variables to
identify any weaknesses that may need
improvement. The third step involves analyzing
data to have a detailed understanding of the
causes of the problem with the current process.
At this stage, stakeholders get to understand
specific problems of the current system and how
they affect the overall success of the entire
system.
The fifth step involves making the necessary
improvements based on the data collected. The
improvement made should address the
challenges of the current system as identified in
the analysis. The last stage, as shown in the
figure below, is to control how various activities
will be done in the future (Helgi, 2020). The goal
at this stage is to ensure that past mistakes that
led to the emergence of the problems identified
are eliminated. The process is cyclic, as shown in
the figure, which means that once a problem is
identified and addressed, the team needs to
reexamine the system once again to identify the
possible weaknesses. Excellence is achieved
through such a detailed process of constantly
improving the system.
One of the biggest challenges when using this
model is that it is likely to cause resistance to
change. Its radical proposals for change ignores
internal culture, which some stakeholders may
find repulsive. Vanzant (2020) explains that the
concept is also not data-driven, which means
that it is possible to have inconsistencies when it
is used. The strategy may not be easy to apply in
some instances, especially when handling blue-
collar employees with limited academic
achievements.
Figure 2.6: Six sigma
Challenges in Supply Chain of Industrial Gas
Turbines
The supply chain of industrial gas turbines has
numerous challenges that a company has to find
a way of addressing to enhance efficiency. From
sourcing for the raw materials to ensure that
there is efficient processing and timely delivery
of products to customers, many challenges may
arise. It is essential to identify these challenges
to ensure that the company can eliminate them
to enhance its performance.
Material Scarcity
The primary responsibility of the procurement
department is to ensure that materials needed
for production are made available at the
production plant. One of the challenges that the
department may face is the scarcity of the raw
materials needed for the production process
(Iqbal, 2020). Canada is one of the leading
producers of nickel, which is an important raw
material for the production of industrial gas
turbines. Figure 2.7 below shows that the
production volume of this important material
has been going down in the country since 2016.
The scarcity may be caused by numerous
challenges such as geopolitical wars such as the
one which is currently happening between
Russia and Ukraine. Such tensions create unique
supply chain challenges for companies in the
affected countries or their allies. The scarcity
may also be caused by reduced availability of the
needed products or a disproportionate increase
in demand.
Figure 2.7. Ni production in Canada
Fluctuating Cost of Freight
The cost of delivering raw materials to the
production plants and finished products to
customers defines the overall unit cost of
production. A firm needs to have a stable freight
cost to ensure that it can estimate the
production cost to help in setting of price
(Kumar, Raghunandan, and Sivaramakrishna,
2021). Figure 2.8 below shows the fluctuation
cost of freight over the past several years. The
problem is that the cost of freight keeps
changing depending on various factors.
Weather, security, and regional political security
are some of the major factors that cause such
fluctuations in the cost of freight. The firm may
not directly control some of these external
factors, as Lennon (2022) observes. However, it
can streamline its internal environment to be in
line with external forces, as Young (2021)
advises. It makes it difficult for the firm to have
a standard way of pricing its products.
Figure 2.8. Fluctuating cost of freight globally
Difficulty in Demand Forecasting
Supply chain management involves having an
accurate prediction of demand in the market.
Demand forecasting makes it possible for a firm
to plan its production in a way that meets the
expectations of customers (Lennon, 2022).
However, Agarwal et al. (2016) observe that
sometimes a firm may have access to misleading
information, making it difficult to predict the
demand. Inability to predict the demand may
cause overproduction or underproduction.
Overproduction would lead to massive losses
because the firm will have to incur the cost of
warehousing excess products (Kerzner, 2017b).
Some of these products may be damaged while
they are in the warehouse. On the other hand,
underproduction may lead to customer
dissatisfaction. They may consider moving to
alternative companies that can assure them of
regular delivery of products.
Port Congestion
Transporting some of the parts of industrial gas
turbines requires precision handling because
they are delicate. The congestion at ports may be
a challenge in the handling of the turbines.
Siemens-Energy uses the Port of Hamburg for
exportation of the manufacture red industrial
gas turbines (Siemens-Energy, 2022a). It is one of
the busiest ports in Europe that is susceptible to
the problem of congestion. To reduce
congestion, the workers at the port may be
careless (Ward, 2018). They can trade speed for
efficiency, which may have devastating
consequences. Problems may also arise when
there are delays in processing at the ports
because of delays. Such a delay in the processing
of raw materials would mean that various
activities will have to be delayed as the team
waits for the arrival of needed items for
production. The congestion can also lead to
customer dissatisfaction when they are forced to
wait for long before they can receive their
products once payment has been made. The
assembled industrial gas turbine is large and
delicate when being transported, as shown in
figure 2.9 below, which means it takes time to be
loaded into a ship, which worsens the problem
of congestion at the port.
Figure 2.9. Large and delicate industrial gas
turbine
Digital Transformation
The digital transformation promises to eliminate
numerous challenges that are associated with
analog data management. However, it is a
disruptive change that requires a major shift
from the traditional approach of managing
information in an organization. The
procurement department cannot afford to stop
its operations to allow its employees time to
learn the new system. It means that they have to
learn while continuing their normal duties
(Spalek, 2019). Some costly mistakes can be
made, which may have a serious negative impact
on the success of a project. The company reports
that it has digitized most of its operations, which
means that its management and workforce has
had to face mentioned challenges (Siemens-
Energy, 2022d). These challenges have to be
addressed to ensure that the supply chain of
industrial gas turbines is efficient.
Changing Needs and Attitude of Consumers
The efficiency in supply chain management is
achieved through doing something regularly and
developing a pattern that helps in producing the
best quality at the lowest cost possible. The
challenge arises when the needs and
expectations of customers change regularly
(Zhang, Peng, Li, Johansson, and Xiao, 2019).
Whenever there is a change in taste and
preferences, the entire supply chain system has
to be redefined. In the energy sector, a trend is
emerging where consumers are moving towards
green energy. Solar power, wind energy, and
biogas are some of the options that are
becoming increasingly popular (Sadler, 2020).
These emerging trends may have a major impact
on the supply chain as the manufacturer has to
redefine its products to meet the new demands.
Whenever there is a change, a firm will have to
invest in the retraining of employees and
purchase of the new materials needed for the
new product.
Theoretical Background
Supply chain management is a field that has
attracted many scholars interested in finding
ways of enhancing the success of a major project
by ensuring that the needed materials are made
available at the right time. Various theories and
concepts have been developed to help explain
how to ensure that the process is a success. The
following are the theories reviewed in this
chapter because of their relevance in the
research.
Total Quality Management
TQM is a tool that helps in facilitating continual
detection and elimination of errors in
manufacturing. It streamlines supply chain
management, from the time of sourcing raw
materials to the final stage of delivering finished
products to customers (Rao, 2021). Its primary
aim is to enhance customers’ experience by
ensuring that their needs are met in the best way
possible. At the same time, the tool help in
lowering the cost of production to the lowest
level possible. This customer-based tool enables
a firm to understand and effectively respond to
customers’ needs. As Wysocki (2019) observes,
TQM requires emphasizes the need to maintain
quality from the initial stage of procurement to
the processing stage and finally the delivery of
products to customers. This tool will be critical in
ensuring that there is an effective sourcing for
materials used in the manufacture of industrial
gas turbines, efficiency in the processing, and
timely delivery of the finished products (Didonet
and Díaz, 2012). However, Badiru (2021) warns
that when using this tool, the management
should remain committed to making available
the resources that the entire team needs to
ensure that there is success.
Resource-Based View
The theory seeks to find ways in which a firm can
use its resources to achieve a sustainable
competitive advantage in the market. As Prabhu
(2020) observes, it involves using what a firm has
to achieve what it desires. The firm uses its
unique capabilities such as skilled employees,
experienced management, and the ability to use
emerging technologies to enhance its
operations. Hellingrath and Lechtenberg (2019)
reiterate that it also uses both tangible and
intangible resources to achieve the same aim.
These two factors create a competitive
advantage for the firm. If they are maintained,
they create a sustained competitive advantage,
as shown in figure 2.10 below. The theory can be
applied bManagement
Figure 2.10. Resource-Based View
How the Research Relates to Previous Studies
and the Literature in General
Project management and supply chain
management are topics that have attracted the
attention of many scholars for the past several
decades. This dissertation will be enriching the
existing knowledge in the two fields, narrowing
down the study to how the project management
approach on supply chain management can help
enhance operations at Siemens’s industrial gas
turbine projects. Such projects are often costly
and highly demanding, and it is necessary to find
ways of ensuring that they are successful. The
research will rely on previous literature to
understand how the two concepts of project
management and supply chain management
have been used to eliminate waste and improve
the success of such projects.
Gaps in Literature
The two fields of project management and
supply chain management have received wide
research. The review of the literature revealed
that corporations, government agencies, and
large non-profit entities have embraced the
concept of project management when
undertaking major projects (Davidson, 2019).
This research narrowed down to investigate how
project management approaches on supply
chain management can affect operations and
success of industrial gas turbine manufacturing
and delivery to the market. Alfoqahaa (2018)
argues that the significance of project
management techniques in completing major
projects is an area that is widely researched, but
Chung (2021) believe that the link between
project management approaches, the supply
chain, and the success in the manufacturing of
industrial gas turbines still needs further
research. This is the area that the researcher
considered worth conducting further research
on to explain the relationship.
Summary
Industrial gas turbine production and sale is a
delicate project that requires a firm to ensure
that quality raw materials are delivered at the
production plant in time, the processing is done
effectively, and delivery is done using reliable
means to meet the expectations of customers in
the best way possible. As Wysocki (2019)
advises, there should be an effective supply
chain management system that helps in ensuring
that the movement of parts is done efficiently.
Doing so requires a firm to select appropriate
project management approaches capable of
meeting the set demands, as Davidson (2019)
observed. The review has explained how various
approaches are used and their relevance when
handling specific activities. The chapter has
identified an existing knowledge gap that needs
further research. The review focused on
answering research questions that were set in
chapter 1 of this document. Findings from this
chapter influenced the design of the questions
used in collecting primary data. There was a
need to address the gaps in the literature
identified in this chapter.
Methodology
The previous chapter has provided a detailed
review of the literature. Collecting secondary
data was essential in ensuring that the
researcher captures what other scholars have
found out in this field, and any possible
contradictions (Bougie and Sekaran, 2020). The
information has significantly influenced the
research design to help address the identified
knowledge gaps. For instance, Zwikael and
Smyrk (2019) and (Earley, 2014) argue that a
weak supply chain system can have a devastating
impact on a manufacturing plant. However, the
examples it provides to back this claim are
unsatisfactory. Using a survey from Siemens-
Energy, it will be possible to collect primary data
that will help back this claim. Kerzner (2017a)
and Badiru (2021) emphasizes the need to select
a specific project management approach based
on activities that one undertakes. However, the
relevance of these approaches to supply chain
management process in the industrial has
turbine project is unclear.
Using qualitative research methods, it was
possible to explain this relevance based on data
collected from Siemens-Energy. It was also
possible to explain how to use project
management techniques to improve the supply
chain process of industrial gas turbine projects.
Supply chain path of the gas turbine parts, from
assembling, manufacturing, installation,
commissioning, and maintenance is explained by
Meier (2020), but there is limited literature
about how project management techniques can
be used to improve it. A detailed qualitative
research would help in addressing this gap.
In this chapter, the focus is to discuss how data
from the primary sources were obtained,
processed, and used to directly respond to the
aim and objectives of the research. The chapter
discusses the philosophical assumptions that
were embraced in this dissertation. Research
questions that guided the process of collecting
data and the validity and reliability issues were
discussed. The chapter then gives a detailed
discussion of data selection and collection
methods. The final section of the dissertation
focuses on ethical concerns, bias, and limitations
in the research.
Philosophical Assumptions
Defining research philosophy is one of the first
steps that a researcher should take when
undertaking a given research. According to Bell,
Bryman, and Harley (2018), at this stage, a
researcher is expected to stipulate major beliefs
and assumptions that will guide the process of
collecting and processing primary data. The
assumption defines the method that will be used
to collect and process data (Saunders, Lewis, and
Thornhill, 2019). One can use positivism, realism,
pragmatism, or interpretivism, as shown in the
research onion in figure 3.1 below, as the
fundamental philosophy in the research. It is
necessary to discuss each of these philosophies
briefly before explaining why one of them was
selected to define the principles and beliefs of
the research.
Figure 3.1. Research onion
Positivism
Positivism is one of the most commonly used
research philosophies in social sciences.
According to Aityan (2022), this philosophy holds
the view that reliable and factual information
can only be obtained through observation. A
researcher is expected to avoid interfering with
subjects to ensure that information obtained is
trustworthy (Eden, Nielsen, and Verbeke, 2019).
It holds the belief that if a researcher interferes
with the subjects or in case that target group
realizes that they are under investigation, they
can change their behaviour, which means that
the information gathered will not be an accurate
reflection of the reality. When using this
philosophy, its fundamental principle of
processing collected data is through statistical
methods. It means that one would be required
to collect data that can be coded and analyzed
mathematically (De and Kammerlander, 2020).
This philosophy was considered inappropriate
for the research because of its emphasis on
quantitative methods of analysis. The researcher
was interested in conducting qualitative
research.
Realism
Some researchers, such as Aityan (2021) and
Cooper (2018), believe that it may be necessary
to realism as the underpinning philosophy in
their study. It holds the assumption that reality
exists independent of the human mind (Gupta
and Gupta, 2012). In many cases, the ideas and
views of individuals are informed by their
cultural practices and stereotypical beliefs.
Misinformation and miscommunication can also
make an individual embrace a misleading view.
As such, this philosophy holds the principle that
scientific methods are the only way of
developing knowledge (Young-Oliveira and
Costa, 2021). In social sciences, this philosophy is
less common because of the emphasis on the
usage of scientific methods. It was inappropriate
for this qualitative research.
Pragmatism
In social sciences, pragmatism remains one of
the most popular philosophies. According to
Cooper (2018), the philosophy holds the view
that a concept is relevant as long as it supports
action. Pragmatists are flexible enough to
acknowledge the fact that the world can be
interpreted in different ways in a given research.
It also explains that one specific view may not
give an entire picture of a given issue as there
can be multiple realities (Aityan, 2021). As such,
one should not rigidly define a concept in a given
way. They should be flexible enough to
understand that the concept can be interpreted
differently. This philosophy encourages the
usage of mixed-method research (Stacey, 2019).
The researcher is expected to use statistical
methods to quantify the phenomenon and
determine the existence of the relationship
between variables. On the other hand, it also
requires the usage of qualitative methods to
provide a more detailed picture of an issue
beyond statistics (Machado and Davim, 2020).
Although this philosophy is relevant in this
dissertation, the researcher did not use it
because of its aspect that requires the usage of
statistical methods of processing data.
Interpretivism
Interpretivism sometimes referred to as
interpretive, is another common philosophy in
social sciences. According to Raju and Prabhu
(2011, p. 41), interpretivism holds the view that
“access to reality, given or socially constructed,
is only through social constructions such as
language, consciousness, shared meanings, and
instruments.” The philosophy sharply
contradicts concepts and principles of
positivism. It holds that the role of a researcher
cannot be narrowly defined as that of data
collection and analysis. Sometimes is necessary
to do more than just collect and analyze data
(Pochiraju and Seshadri, 2019). One may need to
interact with the subject under investigating to
have a detailed understanding of the
phenomenon being investigated.
This philosophy was considered particularly
important in investigating how to use project
management techniques to improve supply
chain processes of the industrial gas turbines at
Siemens-Energy. This philosophy focuses on
assessing specific phenomena to understand
why they happen in a given way (Lee and
Saunders, 2017). As such, it encourages the use
of qualitative methods to analyse data. It holds
the principle that qualitative methods allow a
researcher to explain a given concept beyond
statistical approaches (Mukherjee, 2020). It
made it possible to investigate in detail the
current supply chain system at the firm and the
extent to which the company currently applies
various techniques of project management.
Principles of this philosophy allow a researcher
to go beyond simple observation to allow the
researcher to interact with participants to
understand the phenomenon in detail.
Research Questions
It was necessary to develop research questions
to help guide the process of collecting data. The
following are the specific research questions that
were formulated.
1. How can Siemens-Energy use project
management techniques to improve the
supply chain process of industrial gas turbine
projects?
2. What is the supply chain path of the gas
turbine part, from assembling,
manufacturing, installation, commissioning,
and maintenance?
3. What are the challenges that Siemens-
Energy can face in the project management
approach on supply chain management of
industrial gas turbines?
4. What are the ways in which this company
can overcome the identified challenges?
The first question focused on determining how
the company can use project management
techniques to improve the supply chain process
of its industrial gas turbine project. It was the
primary focus of the research as it sought to
address the possible challenges that were
identified in the current system. The second
question focused on explaining the supply chain
path of industrial gas turbine parts, from
manufacturing, assembling, installation,
commissioning, and maintenance. Answering
this question made it possible to identify specific
challenges and weaknesses of the supply chain
and how they can be addressed. The third
question focused on identifying specific
challenges that Siemens-Energy can face in the
project management approach on supply chain
management of industrial gas turbines. The
researcher acknowledged that some challenges
may arise, and it is important to identify them
and find ways of addressing them to eliminate or
minimize their effect. The final question focused
on findings ways in which the company can
overcome the overall challenges in its effort to
achieve efficiency in the supply chain of its
industrial gas project. The researcher knew that
the success of the company depended on its
ability to overcome the problems.
Populations and sampling methods. The
researcher identified a small sample of
participants to help respond to this question.
Instead of using all the employees in the SCM
department of the firm, the researcher selected
a small number of individuals to represent the
entire population. The researcher used the non-
probability sampling technique because it was
necessary to collect data from individuals with
relevant knowledge. Managers and those with
experience of having worked in the supply chain
department for years were selected. The
researcher also included a few individuals who
have successfully implemented major projects at
the company. A sample size of 20 individuals,
which included 10 managers and 10 project
managers, was selected to take part in the
investigation.
Deployment plans. The researcher contacted
these participants directly through phone calls
after getting the necessary approval from the
management. The nature of this research was
explained to them, including the role they were
expected to play. The researcher then conducted
a phone interview with each participant at their
preferred time through WhatsApp or Facebook
voice call.
Design of instruments. A simple questionnaire
was developed to facilitate the collection of data
to respond to this and other questions. For this
specific question, the focus was to collect
qualitative data. This method made it possible to
process data in detail based on the response
obtained from the participants.
Limitations. The main limitation when using this
research design to collect data was that there
was a concern that some of the participants may
be biased in their response to the question.
Those in management may sometimes present a
more optimistic picture than is the case.
However, the propensity of the risk was
significantly low, which means that the integrity
of the outcome was not compromised.
Validity and Reliability
The issue of validity and reliability of data
collected and processed in a research is always
critical when conducting research. De and
Kammerlander (2020) explain that a report can
be used by policy-makers, academicians, and
other individuals who may find it useful. As such,
the information that it presents should be as
truthful and reliable as possible. Validity in the
research was enhanced by using methods that
accurately collect data that was needed from
participants (Eriksson and Kovalainen, 2015).
The researcher used open-ended questions to
ensure that respondents explained their
answers in detail. The reliability was enhanced
by avoiding all forms of biases. The researcher
did not allow personal opinion and beliefs to
influence the process of collecting and
processing data.
Data Selection and Collection
It was essential to collect and analyse data to
help respond to specific research questions. In
this dissertation, the researcher relied on both
primary and secondary data sources. Secondary
data was collected from books, journal articles,
and reliable online sources. They formed the
basis of the literature review conducted in the
previous chapter. It made it possible to develop
background information and to address
knowledge gaps, which were then probed in the
primary data collection and analysis. The
information from these sources was also used to
support arguments in other chapters of the
report. On the other hand, primary data was
collected from sampled participants, as
mentioned in the section above. The sampled
individuals are all employees of Siemens-Energy,
working in various departments, which were of
interest to this research.
The researcher contacted the management of
this company and explained the significance of
this research. The goals and objectives of the
research were explained, including the role that
the firm’s employees were expected to play. A
formal consent form was sent to the
management that had to be signed to confirm
that the approval was granted. It was only after
getting the approval that the researcher
contacted the employees in the various selected
departments. The researcher was interested in
collecting data through face-to-face interviews.
Eden, Nielsen, and Verbeke (2019) explain that
such interviews are often effective when
collecting data using unstructured questions.
Unfortunately, various challenges made it
impossible to collect data using this strategy. The
researcher had to rely on phone interviews to
facilitate the data collection.
The process involves preparing the respondents
for phone interviews by selecting appropriate
times when the phone calls should be made.
Each respondent was called at the time they had
chosen. Each phone interview lasted about 15
minutes. Data collected were transcribed in
ways that responded effectively to the research
question. It then facilitated a qualitative analysis
of the report in line with the research philosophy
that had been selected for the research.
Practical challenges
When collecting primary data, there were some
practical challenges that the researcher had to
overcome (Smith, 2020). One of the challenges
was the inability to physically interact with the
participants. The geographical challenge and
COVID-19 concerns made it impossible to collect
data using face-to-face interviews. The
researcher was able to overcome this challenge
by collecting data through phone interviews. It
was also noted that some of the participants
who had previously agreed to take part in data
collection were not available when it was time to
conduct the interview. The researcher had to
replace them to ensure that data saturation was
achieved.
Ethics and Bias
There was a need for a consideration of the
relevant ethical issues and any bias that may be
inherent within the study or the subsequent
analysis with thought given to validity, reliability,
and generalisability. The researcher was keen on
avoiding personal bias when selecting
participants in this research. When using
judgmental sampling, care was taken to ensure
that all the participants were selected based on
their ability to authoritatively answer the specific
questions based on their knowledge and
experience as Easterby-Smith et al. (2021)
suggest. Factors such as gender, race, religious
affiliations, or any other demographical
classification were not prioritized when selecting
the participants. The researcher designed
research questions to be as objective as possible
to limit cases of biased answers. There was a
deliberate effort to avoid placing the blame of
the current weaknesses of the company on
specific individuals or departments. Instead, the
researcher focused on identifying the problem
and finding the best solutions.
The researcher made an effort to observe ethical
concerns when collecting data and compiling the
report. Before contacting respondents, the
researcher obtained consent from the
management of the firm, as Eisend and Kuss
(2019) recommend. The researcher then
explained the significance of the research to
participants and the role that they were
expected to play. They were reminded that
participating in the research was voluntary and
that anyone who considered it necessary to
withdraw had the liberty to do so. Bell, Bryman,
and Harley (2019) emphasize the need to protect
the identity of participants when collecting
primary data. Instead of using their actual
names, the researcher assigned participants
specific codes to help in their identification. As
an academic project, the researcher avoided
plagiarism, which is considered academic
malpractice.
Limitations
When developing an academic report, a
researcher may likely face some limitations that
may define the context under which the
document should be used. Discussing the
limitations makes it possible for those using the
document to determine its relevance in specific
contexts (Sekaran and Bougie, 2016). The main
limitation that was observed is that the primary
data was collected from a specific company,
narrowing it down to a specific context. The
researcher was interested in the industrial gas
turbine sector of Siemens-Energy. As such, the
application of the information presented in this
document should take the same into account.
The challenges and benefits that this company
enjoys in this particular segment of the economy
may be different from what a firm in a different
sector is facing. The researcher was interested in
interviewing some of the top managers who
were capable of providing information on
specific issues. However, the limited time and
COVID-19 concerns made it difficult to achieve
these specific goals. It is important to note that
despite these limitations, the researcher was
able to collect the relevant data, conduct an
analysis and interpretation, and respond
adequately to the research questions.
Analysis and Discussion
The previous chapter discussed the method that
was used to collect data from primary sources. It
explained how the gaps in the existing literature
will be addressed to expand knowledge in this
field. In this chapter, the researcher presents
findings that were made from the information
gathered from the primary sources. According to
Lee and Saunders (2017), it is crucial for a
researcher to collect primary data in case there
are major inconsistencies or gaps in the existing
literature. It helps to address the knowledge
gaps by specifically focusing on gathering data
that respond to the gap. As was explained in the
previous chapter, a sample size of 20 individuals,
which included 10 managers and 10 project
managers, was selected to take part in the
investigation.
Data Analysis
The researcher collected primary data from a
sample of 10 individuals who are currently
working for Siemens-Energy. Care was taken
when selecting the participants to ensure that
those who are selected had the capacity to
provide informed opinion on the issue being
investigated based on their knowledge and
experience within the firm. Data was analyzed
thematically to respond to each of the questions
that were presented in this study. Thematic
analysis was considered an effective way of
providing deep insight into how the use of
project management techniques can improve
the supply chain process of the industrial gas
turbines project at Siemens-Energy.
How can Siemens-Energy use project
management techniques to improve the supply
chain process of industrial gas turbine projects?
The first question focused on explaining how
Siemens-Energy use project management
techniques to improve supply chain process of
industrial gas turbines. It had been established
that the firm has been using PM techniques. The
sampled individuals were expected to help in
understanding how it helps to improve the SC
process. Table 4.1 below shows themes that
emerged based on the response that was
obtained from these individuals.
Table 4.1: Using PM Techniques to Improve SC
Process
Themes
Codes
Quotations
Creating
order
• Steps
• Sense of order
• Eliminates
chaos
Participant 4 explained,
“Agile, waterfall, and
lean are some of the
most common
techniques that the
company has been
using. They all clearly
indicate steps that
should be followed to
undertake various
activities in supply chain
management, from the
state to completion of
the project.”
Participant 7 noted, “I
like using waterfall
technique when
undertaking a project
because it creases a
sense of order. It
outlines steps that
should be taken in each
stage of the project.”
Participant 11 said,
“Agile project
management technique
identifies specific
individuals who should
undertake various
activities in the supply
chain management
process of industrial gas
turbine projects, hence
it eliminates chaos.”
Waste
elimination
• Sources of
waste
• Corrective
measures
• Inflate cost
• Major
weaknesses
• Lower cost
• Define activities
Participant 1 explained,
“Lean project
management technique
are effective at
identifying sources of
wastage in the supply
chain management. It
makes it easy for
corrective measures to
be taken to eliminate
such wastages.”
Participant 5 said, “At
Siemens-Energy, project
management
techniques such as Agile
helps to investigate
loopholes in the supply
chain to identify major
weaknesses that can
inflate the overall cost of
delivering materials to
the firm or finished
products to the client.”
Participant 8 noted, “We
use project
management
techniques to help lower
the overall cost in the
industrial gas turbine
projects. These
techniques helps to
identify specific sources
of wastage and how
they can be eliminated
in the SC system.
Participant 12 observed,
“The company has been
using PM techniques to
define how specific
activities within the SC
system should be
undertaken, which
significantly reduces
wastage in the entire
production system.
Time-saving
• Streamlining
activities
• Eliminate time
wastage
• Sense of
urgency
• Assign tasks
• Eliminate
confusion
• Eliminate task
duplication
Participant 2 noted,
“Project management
techniques are effective
in streamlining activities
in the supply chain
management. As such, it
helps to eliminate
unnecessary time
wastage that may affect
the overall productivity
in industrial gas turbine
projects.”
Participant 6 said, “PM
techniques have helped
in ensuring that
activities are assigned to
specific individuals with
a clear timeline. As such,
it creates a sense of
urgency without
necessarily adding
unnecessary pressure
on employees involved
in the project.”
Participant 13
explained, “In my
department, PM
techniques help in
outlining various
activities that should be
taken at various stages,
hence eliminating
confusion that may
affect the completion of
projects at the right
time.”
Participant 20 observed,
“Project management
techniques has helped in
eliminating cases task
duplication, which is one
of the most common
causes of delays in
undertaking projects.”
Enhanced
responsibility
• Assign
responsibilities
• Completing
activities
• Understand
expectations
• Eliminate
excuses
Participant 3 observed,
“Using PM techniques
such as waterfall helps in
ensuring that specific
individuals are assigned
specific responsibilities
to ensure that all
activities are completed
within the right time.”
Participant 8 noted, “PM
techniques are effective
in ensuring that
individual employees in
the supply chain process
understands what is
expected of them. It
eliminates cases where
specific tasks fail to be
completed because they
were not assigned to
specific individuals.”
Participant 18 said,
“Using PM techniques
eliminates excuses
among stakeholders
involved in the supply
chain process of
industrial gas turbine
project. Everyone
understands the specific
responsibility that they
are expected to play.”
Improved
coordination
• Individuals’
roles
• Coordinate
activities
• Regular
communication
• Keep informed
Participant 10 said,
“Agile project
management technique
helps to identify roles
for specific individuals
and how they should
coordinate their
activities to ensure that
there is a smooth
operation in the supply
chain process of
industrial has turbines.”
Participant 15 noted,
“One of the factors that
lean project
management technique
emphasizes is the need
to maintain regular
communication among
those who are involved
in a project. As such,
expectations can be
managed and issues that
arise in the supply chain
process can be
addressed within the
shortest time possible.”
Participant 19 observed,
“Project management
techniques such as
scrum ensures that
there is a close
communication
between a project
manager and the top
management of the
firm. The team will be
keeping the top
management informed
of the progress of the
project and any
challenges that may
negatively affect the
project.
Thematic analysis above shows that Siemens-
Energy can use project management techniques
to improve the supply chain process of industrial
gas turbine projects. By using PM techniques,
the firm can create order in supply chain
processes, eliminate waste, save time, enhance
responsibilities of various stakeholders, and
improve coordination in the entire system. All
these factors helps in ensuring that supply chain
process of the industrial gas turbines at the
company is a success.
What is the supply chain path of the gas turbine
part, from assembling, manufacturing,
installation, commissioning, and maintenance?
In the review of the literature, the researcher
was able to discuss the supply chain path of
industrial gas turbine parts of different
companies. It was necessary to understand the
supply chain path of these turbine parts, from
assembling, manufacturing, and installation to
commissioning and maintenance at Siemens-
Energy. Figure 4.1 below shows a model of
Siemens-Energy gas turbine that is ready for
installation. The researcher asked the
participants to explain this process, especially
the stages involved.
Figure 4.1. An assembled gas turbine
Participant 1 explained that “the raw material
used in manufacturing the gas turbine blades is
nickel. Other materials include aluminum and
yttrium. The procurement department at
Siemens-Energy imports nickel from Indonesia
and the Philippines. The firm imports aluminum
from China and India, while yttrium Burma. The
logistics department then has to ensure that
they are delivered to the production plant in
Germany.”
This statement shows that Siemens-Energy has
to import these products from different
countries because most of them are not
available locally in Germany where production
takes place. The success of this firm, therefore,
depends on having a highly efficient supply chain
system that ensures that materials are made
available at the right time and in the right
quantity. To achieve such a goal, Clegg,
Skyttermoen, and Vaagaasar (2020) advise that
there should be an effective communication
among different departments to ensure that
there is smooth flow of materials and work.
Participant 6 noted, “Manufacturing activities at
Siemens-Energy takes place at its main plants in
Berlin, Germany and Charlotte, North Carolina.
The 60 Hz model are exclusively produced in
Charlotte, while the 50 Hz model of turbines are
produced in Berlin. All the manufacturing
activities are completed at these sites, and the
turbines leave the plant when it is ready for
installation.”
Once the raw materials are made available at
these two plants in Germany and the United
States, the next step in the path is the
manufacturing process of different parts. These
parts include the compressor, combustion
engine, the turbine, rotors, auxiliary parts, and
the casings (Gülen, 2019). A detailed image of
these parts are shown in figure 2.2 in chapter
two. The production unit of the company relies
on the sales and marketing unit to understand
the demand for the product and the type that
customers need.
Participant 9 stated, “Assembling and
installation of the turbines often take place at
the plant where the customer needs the turbine.
Once the purchase is made, the turbines will be
delivered as parts because their large size and
delicate nature makes it inappropriate to be
transported when they are assembled.”
One of the later stages of the supply chain path
of the industrial gas turbines is the assembling
and installation. As the participant above
explained, Siemens-Energy has the responsibility
of ensuring that this product is assembled and
installed at a location identified by a client. The
firm has a team of highly skilled engineers and
technicians who are responsible for this task.
They have to assemble the parts, install the
system and text if it is functioning as was
intended. The client will then have the chance of
testing the system to determine if it is
functioning as was intended. When the test is
passed, the final stage is the commissioning of
the system. Once it is commissioned, it is a sign
that the client is satisfied with the product.
When a client has a team of experts who can be
responsible for the maintenance of the system,
then the supply chain path for the industrial gas
turbine for Siemens-Energy ends at this stage.
Participant 18 observed, “Sometimes a client
may need Siemens-Energy to be responsible for
the maintenance of the gas turbines once they
are installed. Once the request is made, this firm
creates a schedule where its technicians and
engineers will conduct regular supervision and
maintenance of the system.”
At this final stage, the focus is to monitor the
running of the system, identify major issues that
may arise, and take corrective measures when
necessary. The goal of the maintenance team is
to ensure that there is a smooth flow of
operations and that cases of breakdown are as
minimal as possible. The crew responsible for
the maintenance is paid by Siemens-Energy.
However, the client pays Siemens-Energy for the
additional cost of maintenance.
What are the challenges that Siemens-Energy
can face in the project management approach
on supply chain management of industrial gas
turbines?
This question specifically focused on identifying
challenges that Siemens-Energy faces in its
supply chain management of the industrial gas
turbines when using project management
techniques. These techniques have obvious
benefits, as noted in the first question. They
create order and define how specific activities
need to be undertaken in a specific project.
However, it is necessary to acknowledge the fact
that sometimes they may pose some challenges,
especially when they are rigidly implemented
without crating room for adjustments and
innovation. This question was presented to the
participants and their response was analyzed
thematically, as shown in table 4.2 below.
Table 4.2: Challenges Associated with the PM
Techniques in SC Processes
Themes
Codes
Quotations
Cost
inflation
• Costly
techniques
• Time-
consuming
• Long
procedures
Participant 3 stated,
“Sometimes following
provisions of project
management approaches
may be costly, especially
when it is possible to use
other better alternatives.”
Participant 7 noted,
“Strictly following
guidelines of a specific
project management
technique may be time
consuming, which in turn
may force a company to
spend more on the supply
chain management of
industrial gas turbines.”
Participant 15 said, “The
use of some of these
techniques can be misused
by employees to justify the
long procedures taken to
complete a project. The
justification of increased
usage of resources in the
delivery of products in the
industrial gas turbine
project may be the need to
follow cumbersome
processes outlined in a
specific PM technique.”
Participant 18 said, “Strict
use of these techniques
creates a belief that every
employee is highly
responsible and tasks are
clearly defined that cases
of delays in making
materials available for the
project are rare. As such,
there is a reduced need to
maintain a thorough
investigation. It means that
when these risks occur,
they will have devastating
cost-implications.”
Pilferage
• Opportunity to
steal
• Wrong
assumptions
• False sense of
security
• Over-trusting
Participant 4 noted,
“Following some of these
techniques sometimes
create opportunity for
employees to steal from
the company. When they
find better cost-effective
alternatives, they may
steal savings made in their
new strategies.”
Participant 9 said, “When
the management use these
techniques, there is always
a wrong assumption that
employees will not be in a
position to steal from the
firm. As such, surveillance
during supply chain
activities will be relaxed,
making it easy for
unscrupulous workers to
steal from the firm.”
Participant 12 observed,
“The use of project
management techniques
creates a sense of security
and responsibility. It
convinces the top
managers that everyone
will behave responsibly
and that cases of theft will
be rare. Over-trusting
employees can sometimes
be dangerous, especially
when handling a large
number of workers in
complex industrial gas
turbine projects.”
Limited
knowledge
• Employees’
knowledge
• Lack
understanding
• Training
• Time and
resources
• Universal
application
Participant 1 said,
“Sometimes the
implementation of these
techniques depends on the
knowledge of the
employees who are
involved in the supply
chain processes. If they
lack an understanding of
how to use these
techniques in SCM, then
they may make major
mistakes with serious
financial implications.”
Participant 4 explained,
“Implementing these
techniques in supply chain
management of the
industrial gas turbine
projects may require some
form of training. A
significant number of
employees working on this
projects do not understand
these concepts. As such,
time and resources will
have to be spent to ensure
that they are trained.”
Participant 11 observed,
“Some of these PM
techniques are very
effective theoretically, as
they explain stages that
should be followed to
complete a given task. The
problem is that their
universal application is a
challenge because each
project is unique. It may be
necessary to add or
eliminate some stages in
these models when
undertaking specific
projects.”
Limited
innovation
• Standard
approach
• Machine
learning
• Artificial
intelligence
• Algorithms
• Rigid approach
• Minimized
innovativeness
Participant 3 stated, “Some
of these techniques
require a standard
approach when
undertaking specific tasks.
In such cases, it is possible
for creative employees to
try new strategies that can
make the process more
successful.”
Participant 9 said, “Some
of these technologies were
developed when modern
technologies such as
machine learning, artificial
intelligence, and
algorithms were non-
existent. As such, they did
not take into consideration
the capacity of the
machine to guide actions
that human take in various
fields such as supply chain
management. It makes it
difficult to modern
technologies when
applying these
techniques.”
Participant 16 noted,
“When undertaking some
major projects, it is
common to find cases
where a manager insists
that a specific project
management technique
has to be followed strictly.
Such rigid approach in the
supply chain management
limits the ability of
employees to try new
strategies because of the
fear of a possible
punishment. As such, the
firm effectively minimizes
the innovativeness of its
workforce.”
Participant 20 said, “When
employees are used to a
specific pattern of
undertaking various
activities in the supply
chain management, they
will get comfortable with
it, and as such, are less
likely to try out a new
strategy that can yield
greater returns.”
Resistance
to change
• Major shifts
• Traditional
approaches
Participant 7 observed,
“Introducing some of these
PM strategies may mean
• Uncomfortable
with change
• Time and
resources
• Fear of the
unknown
• Cope
making a major shift from
the traditional approach to
supply chain management
in the industrial gas turbine
projects. Some employees
may be uncomfortable
with the changes,
especially the older
workers who feel that it
may take them a long time
to learn the new
concepts.”
Participant 13 noted, “It
may be necessary for the
employees in the supply
chain sector to be taken
through some form of
training to ensure that they
understand what is
expected of them to
implement these
techniques. The
management may be
uncomfortable with idea of
spending time and
resources to implement a
new technique of
undertaking conventional
activities.”
Participant 18 observed,
“When introducing
change, it is common for a
section of the community
affected to resist it, mainly
because of the fear of the
unknown. Even if they are
assured that their job and
position within the firm
will not be affected, some
will still feel that they may
not cope well and deliver
expected results under the
new system.”
The table above identifies major challenges that
Siemens-Energy can face when using PM
strategies in its supply chain processes of the
industrial gas turbines. Cost inflation, pilferage,
and limited knowledge are some of the major
concerns. The data analyzed also showed that
limited innovation and resistance to change are
the other major issues that have to be
addressed. These challenges may hinder the
ability of this company to effectively use these
techniques to enhance the success of its supply
chain processes.
What are the ways in which this company can
overcome the identified challenges?
The analysis above identified various challenges
in supply chain management of Siemens-
Energy’s when using project management
techniques. It is essential to find a way of
addressing these challenges to ensure that the
company can have an efficient supply chain
system in its industrial gas turbines’ project. As
Iqbal (2020), one of the first steps of addressing
a problem is identifying the underlying issues,
which are noted in the section above. The next
step is to find a way of addressing each problem
effectively. Table 4.3 below identifies the
possible solutions that the participants proposed
based on their knowledge and experience
working at Siemens-Energy.
Table 4.3. Managing the Challenges Associated
with the PM Techniques in SC Processes
Themes
Codes
Quotations
Manage
costs
• Effective
alternatives
• Lower costs
• Be dynamic
• Promote
responsibility
• Proper
supervision
Participant 3 stated,
“When there are better
and cost effective
alternatives to the PM
techniques, the
management should
embrace them to lower
costs.”
Participant 7 noted, “It is
necessary for the
management of the
company to be dynamic
and to be willing to
embrace strategies that
are less time-consuming
and are cost effective if
they can deliver the same
or better results.”
Participant 15 said, “They
promote a sense of
responsibility when
employees are using PM
techniques. Cases of theft
or misuse of resources
should not be justified.”
Participant 18 said, “The
management should not
neglect their role to
supervise activities being
undertaken by employees
even if these models are
successfully applied. There
should be mechanisms of
dealing with issues that
arise to ensure that there
are no major financial
shocks.”
Eliminate
pilferage
• Develop
policies
• Maintain
surveillance
• Discourage
theft
• Promote
responsibility
Participant 4 noted, “The
management should
develop strict policies
against cases of pilferage
within the firm. Employees
should know that such
mistakes may subject them
to punitive measures.”
Participant 9 said, “The
management should
maintain or even enhance
surveillance of employees
to ensure that they lack the
opportunity to steal from
the firm. They should be
aware that the
management is constantly
monitoring their
activities.”
Participant 12 observed,
“Trusting employees is
critical, especially when
dealing with experienced
and highly responsible
employees. However,
there should be some form
of supervision to ensure
that they do not abuse the
trust.”
Enhance
knowledge
• Training
• Continuous
empowerment
• Practicality
Participant 1 said, “Before
implementing any PM
technique, the
management should
ensure that the team
understands the concept
and its practical
implications. When
necessary, members of the
team should be taken
through some form of
training.”
Participant 4 explained,
“Training of employees
should not be viewed as a
waste of time and
resources for the company.
Instead, it should be a
regular activity meant to
continuously empower
employees and to enable
them undertake various
projects using different PM
techniques as would be
appropriate.”
Participant 11 observed,
“Project managers and top
leadership of the company
should emphasize the need
for the employees to focus
on the practicality of PM
technique before it is
implemented. Employees
should remain flexible
enough to use alternatives
when it is evident that a
specific technique cannot
be practical in a given
context.”
Promote
innovation
• Remain
innovative
• Prioritize
modern
technology
• Promote
structured
innovation
• Avoid mediocre
performance
Participant 3 stated,
“Employees should be
encouraged to remain
innovative even when they
are using these techniques.
They should find better
ways of implementing
them, especially when they
are faced with new
challenges.”
Participant 9 said, “The
management should
prioritize machine
learning, artificial
intelligence, and
algorithms over PM
techniques. When
possible, these new
technological concepts
should help in the
implementation of PM
techniques.”
Participant 16 noted, “The
management should
promote and embrace
flexible strategies when
using these PM
techniques. They should
use the techniques to
promote structured
innovation instead of using
it to frustrate creativity.”
Participant 20 said,
“Encourage to avoid being
comfortable with mediocre
performance. Instead, they
need to use these PM
techniques to be creative
when undertaking various
SC tasks.”
Manage
change
• Prepare
employees
• Train
• Value of
training
• Budgeting
• Change
theories
Participant 7 observed,
“The management should
adequately prepare
employees before
introducing a major
change. The elderly
workers who fear change
should be taken through
some form of training to
ensure that they
understand the new
concept and the role that
they are expected to play.”
Participant 13 noted, “The
management needs to
understand the value of
taking its employees
through regular training. It
should be viewed as
developing a powerful
asset instead of being
considered a waste of
resources. When
developing annual budget,
the management should
ensure that funds are set
aside for employee
training.”
Participant 18 observed,
“The management should
be fully prepared to
manage resistance to
change that may arise
when introducing change.
Model’s such as Kurt
Lewin’s theory of change
can help a firm to ensure
that change is introduced
in a way that minimizes
resistance as much as
possible.”
The management of Siemens-Energy needs to
understand how it can address the specific
challenges associated with the use of project
management techniques in its supply chain
process of industrial gas turbines. Table 4.3
above shows the major ways in which this firm
can overcome the various challenges based on
the information obtained from the participants.
The management will need to understand how
to apply each of the proposed solution to the
specific challenges to ensure that its supply chain
processes of the industrial gas turbines are as
successful as possible.
Discussion
Siemens-Energy is one of the leading
manufacturers of industrial gas turbines in the
global market. Although the firm has been
successful in making available quality products
to its customers around the world, it faces
numerous challenges that pose existential threat
to its operations (Bond-Barnard, Fletcher, and
Steyn, 2018). In this research, the focus was to
discuss how to use of project management
techniques to improve the supply chain
processes of the industrial gas turbine project. It
is necessary to discuss findings made from both
primary and secondary sources at this stage of
the report.
Using Supply PM Techniques to Improve Supply
Chain Process
The supply chain process in the industrial gas
turbine projects is highly complex and it is
common for the employees involved to
encounter numerous challenges. Some of these
challenges have serious cost implications, while
others may cause major delays in the completion
of the project. According to Adebayo, Eniowo
and Ogunjobi (2018), the use of PM techniques
can help in eliminating these challenges or
significantly reducing the impact that they have
on the overall success of the project. As shown
in the analysis above, one way in which PM
techniques improves SC processes is by creation
of order. Primary data shows that using
techniques such as agile or lean project
management helps in defining step-by-step
processes that should be followed when
undertaking specific activities in a given project
(Wren, 2017). It helps to eliminate some of the
errors that often occur when undertaking mega
projects.
The analysis of primary data reaffirmed that
using PM techniques helps in waste elimination
as a way of improving supply chain process of the
industrial gas turbine project. The respondents
explained that a technique such as lean project
management helps in identifying sources of
waste and effectively eliminating them to ensure
that the project is less costly. Dohe and Pike
(2018) reiterate the claim, noting that using lean
project management is one of the best ways of
ensuring that a project does not exceed the
initial cost. It helps to identify various factors,
including inflation, which may affect significantly
increase the overall cost of the project. It then
proposes ways in which the management can
avoid or manage such undesirable forces.
Reducing the overall cost in the supply chain
involves identifying suppliers who can deliver
the best quality products at the lowest cost
possible (Emere, Musonda, and Okoro, 2019).
Such strategies are defined in various project
management techniques, and if they are
implemented effectively, Siemens-Energy can
lower the unit cost of its industrial gas turbines.
The analysis of primary data has shown that
using PM techniques also helps in saving time
when undertaking specific supply chain activities
in mega projects. The respondents explained
that using a specific project management
technique such as waterfall streamlines
activities. Butera (2020) agrees with the
assertion, explaining that waterfall project
management outlines specific steps that should
be taken when undertaking various tasks to
ensure that activities are streamlined. Time is
also saved when duplication of tasks is
eliminated, as one of the respondents noted.
According to Kamble and Vanakudari (2018),
these techniques helps in ensuring that specific
tasks are assigned to specific individuals. As
such, it eliminates cases of redundancy, which
not only saves time but also the overall cost of
the project.
Enhanced responsibility is another major benefit
that is associated with the use of PM techniques.
When using a PM technique such as waterfall,
each employee is assigned specific roles, as one
of the respondent explained. Once these roles
are assigned, every employee will be held
personally accountable for the progress made in
the completion of the activity. Hasan and Islam
(2019) explain that people tend to be highly
responsible when they know that their actions
will be evaluated to determine if their
performance meets the expectations. It
eliminates laziness and blame games that may
negatively affect the completion of specific
supply chain activities in the industrial gas
turbine project at Siemens-Energy.
Improved coordination was another major
benefit of using PM techniques in supply chain
management of the industrial gas turbines at this
company. One of the respondents explained
individuals’ roles are clearly defined when using
a technique such as agile project management.
It means that when one needs a piece of
information, it is easy to identify the department
or an employee who should be contacted.
According to Levy (2018), PM techniques also
create platforms for communication among
various stakeholders. It makes it easy to address
issues that may arise in the process of
undertaking various activities in the project.
Challenges of Using PM Techniques in Supply
Chain Management
When using PM techniques on the supply chain
management, it is common to encounter various
challenges. Cost inflation is one of the challenges
that one may encounter when these techniques
are rigidly applied. One of the participant
explained that when the management rigidly
insists on following a given PM technique, an
employee may use a new strategy that uses less
resources and then steal the additional
resources that would have been consumed if a
traditional technique were used. They only need
to ensure that the task is completed as per the
specification, which then allows them to misuse
or misappropriate the additional resources
(Madhavarao, 2018). As such, a manager needs
to ensure that such strategies are applied with
care to avoid the possibility of mismanagement
of resources. Managing pilferage helps to
eliminate inflation of cost and delays in
completing a given project.
Limited knowledge was identified as a major
concern that affects the use of PM techniques in
supply chain management. According to Klein
and Müller (2021), PM techniques have obvious
benefits to a firm, especially when undertaking
complex projects. However, one can only
implement the project if they understand its
principles and how it should be applied. One of
the participants noted that sometimes it is
essential to take the employees through some
form of training to ensure that they have the
capacity to correctly apply the technique. The
challenge is that the process of training these
employees takes time and resources, which a
firm may be unwilling to spend.
Limited innovation is a major threat that a firm
will need to address when using PM techniques
in supply chain processes. A participant
explained that when the management rigidly
demands for the use of these traditional PM
techniques, it becomes impossible for the
employees to try new strategies. They will be
denied the opportunity to be creative when
undertaking their normal responsibilities. Abbasi
and Jaafari (2018) explain that when
implementing some of these traditional models,
care should be taken to ensure that a room for
creativity and innovativeness is created.
Resistance to change was one other issue that a
firm should be ready to address when using PM
strategies in supply chain strategies. When the
management introduces a new policy that
require the use of these strategies in the supply
chain process, it is possible that some employees
may resist change, as explained by many
participants. Mao, Mahame and Ndahirwa
(2018) reiterate this claim by stating that people
tend to reject change because of many reasons.
Some feel that the proposed change may expose
their weaknesses, hence compromise their
current positions in the firm. Others may feel
that they can be replaced because of
redundancy when the new strategy is applied.
Others suffer from the fear of the unknown. It is
critical to ensure that all these concerns are
addressed.
Maximizing Productivity through the Use of PM
Approaches
PM strategies have always been considered
effective as guides when undertaking major
projects. They define steps that should be taken
to undertake specific activities, resources that
are needed, how the resources should be spent,
and individuals who should play specific roles to
ensure that the desired goals are achieved
(Chethana, Vivekananda and Bharadwaj, 2022).
The same principles can be applied to enhance
success of supply chain processes in industrial
gas turbine project at Siemens-Energy.
According to Othman and Bamasood (2021), the
cost of projects in this sector is often defined by
the expenses in the supply chain. The success of
the entire project also depends on how efficient
the supply chain processes are. As such,
improving SC processes is one of the best ways
of ensuring that operations of this firm are as
lean as possible.
The benefits of using PM strategies in SC
processes have been discussed in the section
above. This chapter has also identified major
challenges associated with using these
strategies. According to Muñoz, Blanco and
Capuz-Rizo (2021), a firm should conduct a cost-
benefit analysis to ensure that before a strategy
is introduced, its benefits outweigh the costs.
PM techniques may pose challenges to the
company when applied to enhance SC processes
at the firm. However, the chapter has identified
ways in which these challenges can be remedied
(Sirshar, Hanif, and Shahzad, 2019). It has
explained the weaknesses of some of the PM
strategies, and the importance of taking into
consideration emerging technologies and trends
when applying them. As such, it is advisable for
the management of Siemens-Energy to use PM
techniques to improve SC processes of its
industrial gas turbine project (Saxena et al.
2018). It should be ready to manage challenges
that may arise to ensure that the process is a
success.
Summary
Data obtained from the primary sources have
reaffirmed the significance if PM techniques in
improving supply chain processes in industrial
gas turbine projects. It is evident that at
Siemens-Energy, the management is always
keen on streamlining operations to ensure that
the process is as lean as possible, eliminating
unnecessary wastes and pilferages as much as
possible. Such a strategy is important in
enhancing success in mega projects, as Othman
and Bamasood (2021) observed. Data from both
secondary and primary sources clearly
emphasize the need to use PM techniques to
achieve such goals. This techniques not only help
in planning for the resources but also in ensuring
that tasks are clearly defined, and then assigned
to specific employees (Klein & Müller, 2021). It
makes it easy to hold specific stakeholders
responsible in case any issue arises within the
supply chain.
Conclusion
The aim of this research was to investigate how
to use project management techniques to
improve supply chain process of the industrial
gas turbine project at Siemens-Energy. It was
necessary to start the investigation by defining
specific supply chain challenges in the industrial
gas turbines project that would require
improvement through the use of project
management techniques. Material scarcity was
identified as one of the major SC challenges for
this and other firms operating in this industry.
Seifert and Markoff (2020) explain that this
problem can sometimes force the operations to
be halted as the company waits for the
deliveries. Some of the materials have to be
sourced from countries outside Europe and
North America, which is costly and time-
consuming.
Fluctuating cost of freight was another major
concern. It made it difficult to have an accurate
prediction of the cost of freight in a year, which
negatively affected the budgeting process. The
procurement is sometimes forced to spend more
money than was budgeted for when the prices
increase (Chen, Ding, and Ren, 2020). The
investigation also identified difficulty in demand
forecasting as a major concern. This problem
affected the production and budgeting activities
at this firm. Port congestion was identified as
another issue that needs to be taken into
consideration when planning the logistics.
Sometimes it takes longer than necessary to
process imports. Digital transformation and
changing needs and attitude of consumers were
the other issues that were identified as being of
concern.
The research revealed that these challenges can
be managed by using various project
management techniques. Agile technique
involves having short phases of specific
activities, which would require regular testing
and assessment to determine if the team is on
the path to achieving the set goal. The strategy
requires close cooperation of all the
stakeholders involved in the project (Barrett,
2021). Waterfall is a linier strategy that require
activities in one stage to be completed before
moving to the next. Lean strategy, as the name
suggests, is focused on lowering the overall costs
by ensuring that the project only has elements
which are necessary for its success (Barrett,
2021). Scrum is a technique that emphasizes
accountability, collaboration, and enhanced
interaction among stakeholders who are
involved in a given project. Finally, six sigma
identifies six stages when conducted a project,
which can improve quality and production
processes.
During the investigation, it emerged that a firm
may need to use multiple project management
techniques to improve the supply chain process
of the industrial gas turbine project at Siemens-
Energy. The supply chain path of industrial gas
turbine project, from procurement and logistics
to manufacturing and final delivery of products
to customers, is a complex process. Didonet and
Díaz (2012) identified numerous challenges that
a company has to overcome to achieve the
desired goals, as discussed in the literature
review. Using multiple project management
techniques help in eliminating different
challenges and enhancing the overall success of
the activities. However, the management unit
and employees of the firm should be ready to
embrace change to achieve the desired goal.
They need to learn how to integrate these PM
techniques in their normal operations in a
seamless manner.
Policy and Practice Recommendation
The supply chain process in the industrial gas
turbine projects at Siemens-Energy is complex
and characterized by numerous challenges.
Although it has been revealed that using PM
techniques can help address most of these
challenges, it is also evident that a firm may face
some challenges when applying them. The
following recommendations should be
considered by the firm to ensure that these
techniques are used effectively to achieve the
intended goals:
• Regular training of employees is essential in
ensuring they understand how to use PM
techniques to manage specific SC process
challenges;
• The management should set aside financial
resources that can facilitate regular training
of the employees, especially when it is
necessary for them to further their
education in institution of higher learning;
• Planning of change using models such as Kurt
Lewin’s change theory is critical in
eliminating or significantly reducing
resistance to change;
• Creating a policy and culture of change
within the organization is encouraged. It
makes it possible for the management to
switch from one strategy or technique to the
other whenever it is necessary;
• The management of Siemens-Energy should
embrace an open-door policy of
communication to allow junior officers to
share their experience and opinions on how
specific challenges in the SC process can be
addressed;
Recommendation to Future Scholars
The use of PM techniques to improve SC
processes in the industrial gas turbine projects is
an area of research that is relatively grey. It is
necessary for future scholars to conduct studies
in this field to address knowledge gaps that were
beyond the scope of this research. The following
recommendations should be considered by
future scholars:
• To investigate the popularity of PM
techniques in enhancing supply chain
processes within the industry;
• To investigate factors that may make the
management to deliberately avoid the use of
PM techniques in SC processes;
• To determine major production challenges
that Siemens-Energy faces in the production
of industrial gas turbines;
• To investigate the future of industrial gas
turbines in an era where wind turbines and
other renewable sources of energy are
becoming popular.
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