What is Concurrent Engineering and Is It Right For You?

Most people think of manufacturing as a straight line from beginning to end, a process of sequential engineering. However, when building something complicated, especially a new product, consider concurrent engineering instead.

What is concurrent engineering?

Concurrent engineering, also known as simultaneous engineering, is a manufacturing methodology in which multiple teams from different departments collaborate in parallel instead of sequentially throughout the development and manufacturing stages of a product.

While most new product development starts with ideation, moves to the design team, then to the engineering team and production, and is handed over to marketing and sales, concurrent engineering takes a more staggered development process.

At the beginning of the development process, multiple cross-functional teams are assembled for the first time, each contributing to the product design based on their area of expertise. The marketing team, for example, brings their insight into the current customer wants, needs, and desires, which drives the design process from the beginning, while manufacturing engineers add their knowledge of how the product can be built.

Other cross-functional team members contribute their knowledge to minimize potential issues right from the start. This helps ensure a high-quality final product and can decrease product development time by using a more systematic approach to streamline project management.

An analogy of concurrent or simultaneous engineering

Think of the traditional product development process as a conventional way of building a house. The foundation must be finished before framing can begin, framing must be complete before roofing starts, and interior work can only commence once the structure is weathertight. Each trade waits its turn, sometimes discovering unanticipated problems or changes that may require costly revisions because they were not addressed or modified in their work orders and blueprints.

In a concurrent engineering workflow, foundation specialists have begun their work, but framing teams are already planning and fabricating wall sections nearby. Plumbing and electrical contractors review plans from day one to identify potential conflicts, while interior designers influence external dimensions to optimize the final living space.

If this is a custom-built home, the sales and marketing team maintains contact with the buyer, relaying any changes or adjustments that may come up during the process. This collaborative approach reduces overall building time and cost while improving the final quality through continuous cross-disciplinary communication.

Historical development of concurrent engineering

Concurrent engineering is an evolution of the more sequential “waterfall” method standard in the 1970s to 1980s manufacturing process. It’s a more integrated multidisciplinary approach, with origins in the aerospace and defense sectors as they work to achieve competitive advantages and cost reductions in their industries.

Modern applications across manufacturing sectors include products from automotive to consumer electronics and industrial equipment.

Concurrent engineering vs. engineer to order

At first glance, it may appear that concurrent engineering (CE) and engineer-to-order (ETO) are similar. However, there are some differences, both in approach and decision-making.

Key differences in approach 

• Sequential vs. parallel workflows—ETO usually follows linear progression while CE enables simultaneous development.
• Timeline comparisons for typical projects—CE often reduces time-to-market by 30-50% while typical ETO workflows favor customizability ahead of speed.
• Resource allocation—CE may require more upfront resource commitment, but typically less total project hours, which is important for costing the product.

Decision-making processes 

• ETO makes more sense with more straightforward products, limited resources, and highly regulated environments that would require sequential approvals.
• Concurrent engineering offers advantages with complex products, highly competitive markets, or integrated systems requiring cross-disciplinary input.
• Hybrid approaches for specific industries are also possible, incorporating CE principles into traditional ETO frameworks for partial benefits.

Concurrent engineering examples

Here are three examples of industries or concepts where concurrent engineering is practical and how.

Automotive industry applications 

• Vehicle development involves the dashboard, chassis, and powertrain teams working in parallel with continuous feedback.
• Time-to-market improvements, reducing traditional 60-month development cycles to 36-48 months for new vehicle platforms, giving the company a significant competitive edge.
• Cost reduction examples through the early identification of manufacturability issues before tooling investments.

Electronics manufacturing 

• Product development cycle transformations enabling annual product refreshes instead of extensive bi-annual cycles.
• Component integration efficiencies through simultaneous PCB, housing, and firmware development with unified testing.
• Quality improvement metrics show a 40-60% reduction in post-launch engineering change orders by correcting the product before launch.

Small-to-medium enterprise CE implementations

• Scaled approaches for smaller teams using collaborative tools and flexible resource allocation without dedicated departments can use concurrent engineering.
• Resource optimization strategies allow key personnel to participate part-time at critical decision points.
• ROI examples from SME adoptions show 15-25% development cost reductions despite initial implementation investments.

Core elements of concurrent engineering

For any manufacturer to use concurrent engineering, they need to incorporate some key elements, including software solutions.

Cross-functional team structures 

Essential roles and responsibilities for using CE include, at a minimum, a product manager, design engineer, manufacturing engineer, quality specialist, and supply chain representative. Someone from the sales and marketing team can also help guide product development.

Communication frameworks that feature daily stand-ups, weekly technical reviews, and milestone assessments need to be in place.

A decision authority distribution chart with clear matrices showing approval requirements and escalation paths for different change types.

Integrated design tools 

CAD/CAM (computer-aided design/computer-aided manufacturing) integration allows manufacturing feedback on designs before finalization using shared data environments.

Simulation and testing platforms need to be used to enable virtual validation of designs against manufacturing constraints, often in 3D.

Collaborative software solutions provide real-time visibility of changes to all stakeholders with version control. All team members need access to progress and changes throughout the cycle.

Process management methodologies 

Stage-gate approaches need to be adapted for parallel activities with synchronized review points for all workstreams. Agile adaptations for manufacturing, incorporating sprint-based development cycles with physical prototyping milestones, keep iterations manageable.

Quality assurance integration throughout development, rather than end-stage inspection through DFMEA and process validation, is needed to identify and mitigate potential issues in the design and manufacturing process in both the early and later stages of development.

Benefits and challenges of concurrent engineering

When small manufacturers have only used traditional engineering approaches, they should understand what concurrent engineering can offer. Let’s examine the pros and cons of concurrent engineering to see both sides more clearly. 

3 benefits of concurrent engineering

1. Reduced time-to-market, often ahead of competitors.

• Development cycle compression statistics show typical reductions of 30-50% in the overall development timeline from concept to production.
• Competitive advantage implications include first-mover market share advantages and response capability to market shifts.
• Revenue generation acceleration through earlier product launches and extended product lifecycles before obsolescence.

2. Lower development costs allow for increased profit margins.

• Early problem identification saves by catching design issues during conceptual phases, when changes cost 1/10th of late-stage modifications.
• Reduced rework requirements through simultaneous validation of design choices against manufacturing and quality requirements.
• Resource utilization improvements with smoother workload distribution and reduced idle time between sequential phases.

3. Enhanced product quality 

• Integrated testing opportunities throughout development instead of end-stage discovery of design-manufacturing mismatches.
• Design for manufacturability improvements through early manufacturing input on tolerance requirements and assembly methods.
• Customer satisfaction correlations show a 15-25% reduction in warranty claims and service issues for products developed with CE methods.

3 challenges to concurrent engineering

As mentioned, switching to this more sequential method of engineering and manufacturing isn’t without some challenges. However, they can be overcome using a thoughtful approach and a collaborative project management environment.

1. Organizational resistance 

• Traditional silo breakdown difficulties requiring departments to share unfinished work and preliminary decisions.
• Management buy-in obstacles, especially with executives accustomed to sequential development metrics and milestone reporting.
• Cultural transformation requirements, including shared responsibility for outcomes versus departmental performance measures.

2. Resource intensiveness 

• Initial investment considerations for collaborative tools, training, and process development (typically $50K-$250K for SMEs).
• Team availability constraints require key personnel to participate in multiple aspects simultaneously rather than sequentially.
• Technology infrastructure requirements, including integrated data management systems and cross-departmental access to design information.

3. Complexity management 

• Communication overhead from increased meeting frequency and documentation requirements across parallel workstreams.
• Decision-making bottlenecks when interdependent choices must be made with incomplete information from parallel activities.
• Change management challenges as modifications in one area create ripple effects across multiple ongoing workflows.

When to consider concurrent engineering?

Not every design project needs concurrent engineering and sequential manufacturing processes. Here are some key indicators that it might be beneficial, though.

Product complexity indicators 

When evaluating whether concurrent engineering would benefit your project, consider the complexity of your product. Products with high component interaction levels—typically those with over 50 components or three or more integrated systems—often require cross-disciplinary expertise working in parallel rather than sequence.

Similarly, pay attention to design constraint multiplicity in your product. When different teams work on various aspects of a product, such as mechanical engineers, electrical specialists, software developers, and manufacturing employees, they often create clashing requirements.

This approach really stands out when your manufacturing gets complicated. If you’re juggling several different fabrication techniques, putting components together in complex ways, or dealing with a tricky supply chain, bringing everyone to the table simultaneously helps connect these processes. The result? Fewer expensive do-overs and less time wasted when trying to get products out the door.

Market timing pressures 

Understanding the market timing pressures for your product is crucial when considering concurrent engineering. Start by conducting a competitive landscape analysis to identify aggressive release cycles or feature enhancement patterns from market competitors. When your rivals are rapidly innovating, concurrent engineering can help you keep pace in a fast-moving industry.

Consider the first-to-market advantage assessment for your product category. Studies frequently show substantial revenue premiums—typically in the range of 10-15%—for market leaders who launch innovative products before competitors. Concurrent engineering can significantly compress development timelines to help you capture this premium.

Think about any seasonal patterns in your market. Does your product need to hit specific launch windows? Are you racing against tight schedules to catch specific market opportunities? If so, the parallel workflows of concurrent engineering can be a game-changer. Instead of waiting for one step to finish before starting the next, you’re moving forward on multiple fronts simultaneously. 

This is especially true for products tied to trade shows, seasonal buying patterns, or technology upgrade cycles, where missing a window could mean waiting months for the next opportunity.

Organizational readiness factors 

When considering concurrent engineering, you must first check if your organization is ready. Start by looking at your team’s skills – how well do they collaborate? Can they communicate effectively? Do they understand other departments’ work? These people skills matter tremendously because concurrent engineering breaks down the walls between departments. Sometimes, having good collaborators is even more valuable than having technical wizards who can’t share information.

Take stock of your infrastructure, too. What tools do you have? How do your teams manage data? What platforms do they use to work together? Concurrent engineering won’t succeed without solid systems for sharing information and giving everyone access to the latest designs. Without this foundation, you’ll end up with bottlenecks and version nightmares.

Leadership backing is the final piece. Do you have executives willing to sponsor this initiative? Will they commit resources? Are they open to changing how they measure success? Getting concurrent engineering off the ground takes more than enthusiastic teams – you need leaders who’ll advocate for the approach, provide what’s needed, and recognize that collaboration metrics matter more than just how efficient each separate department is. Without strong support from the top, these initiatives typically stall against organizational resistance.

How can production software simplify concurrent workflows?

Because concurrent engineering can get complex, cloud-based software is often used to keep the process under control. These software solutions provide a digital thread that provides data continuity across departments, maintaining a single source of truth for product information that all stakeholders can access. This foundation supports real-time information sharing, giving teams instantaneous visibility into design changes and their impacts. To manage this collaborative approach effectively, robust version control and change management tools further track modification history with structured approval workflows and impact assessments, preventing confusion during concurrent work.

Many SMEs are already using MRP software solutions to enhance and improve their manufacturing processes. However, many don’t realize how to integrate their systems to take advantage of concurrent engineering. Or they don’t understand it’s even an option to explore. Here’s why they should.

Task management and visualization

Production software brings clarity to complex concurrent workflows through dependency mapping tools that show critical path relationships between parallel workstreams with automated impact analysis. These tools support progress tracking dashboards that provide real-time status updates across disciplines with customized views for different stakeholders—engineers see technical details while executives get high-level completion metrics. Look for resource allocation optimization tools that balance workloads across teams and identify potential bottlenecks before they impact timelines, not after they’ve already caused delays.

Enabling collaboration

Modern production software breaks down physical barriers with remote team coordination features, allowing distributed teams to contribute simultaneously regardless of location, whether across the hall or the globe. The best solutions offer documentation sharing, markup tools, and approval workflows accessible by all team members without version confusion.

Integration with manufacturing systems

Manufacturing ERPs allow product data to flow directly into manufacturing planning, procurement, and production scheduling without redundant data entry or translation errors. Capable software with built-in MES (manufacturing execution system) functionality allows linking design specifications to work instructions, quality checkpoints, routing control, and production monitoring throughout the manufacturing process. Perhaps most valuable is supply chain visibility enhancement through early supplier involvement tools and component availability validation during design, preventing late-stage redesigns when you discover a critical component has a 26-week lead time.

Revision/version control

Often necessary when prototyping various configurations in the creation and production of a new or modified product, modern MRP software ensures that up-to-date, easily accessible information on revised stock changes is readily available through a revision/version control system. All changes are saved to the BOM (Bill of Materials) and Routing instructions. When used, it ensures all departments are on the same page with the current product configuration. Potential production mistakes are reduced or eliminated when the BOM is updated to the correct product iteration.

Key takeaways

• Traditional manufacturing follows a step-by-step path, but concurrent engineering brings everyone to the table simultaneously. Designers work alongside manufacturing engineers who collaborate with quality managers, all at the same time.
• This teamwork pays off big: companies typically slash development time by 30-50%, catch expensive problems when they’re still cheap to fix, and build better products because testing happens throughout the process, not just at the end.
• You might want to try concurrent engineering if you’re building something complex (like products with dozens of interacting components), racing competitors to market, or trying to get more from your development teams, who are spending too much time waiting on each other.
• Making the switch isn’t just about new tools. It requires breaking down the walls between departments that have traditionally worked separately. Teams need authority to make decisions together rather than waiting for approval from separate management chains.
• Today’s manufacturing software creates the digital backbone for concurrent engineering by connecting everyone to the same information in real time, providing version control, and enabling collaboration across different locations and disciplines.
• Smaller companies don’t need massive resources to benefit. Instead of investing in enterprise-wide systems immediately, start by focusing on the most critical handoffs between departments and using affordable cloud tools to facilitate collaboration.
• While there’s upfront investment in technology, training people, and developing new processes, most manufacturers see returns within their first couple of product cycles. The payback comes quickly when you’re beating competitors to market and avoiding expensive late-stage design changes.

Frequently asked questions (FAQ)

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