As an industry, electronics manufacturing services (EMS) has become a large participant in the global economy. The IPC estimates the global EMS market, including original design manufacturing (ODM) services, to be worth $268.4 billion for 2007.
The 2008 IPC global EMS market forecast is $308.0 billion.
The EMS market in North American was worth approximately $54.5 billion in 2007 with the forecast for 2008 currently valued $ 58.7 billion. This represents 20 percent of the global EMS market.
Companies are no longer vertically integrated, where control of electronics product design and production are under one hierarchy. The supply chain from components manufacturers to production facilities to consumers now stretches across continents and time zones. Therefore, it is inevitable that EMS projects cross boundaries.
It is important to note the project management functions do not change when running international projects. The project management process or methodology remains the same.
A detailed statement of work; project scope, roles and responsibilities, budgets and schedules, with a complete work breakdown structure, are still required as with any domestic project. However, executing methodology in international projects becomes more difficult due to new factors not present in domestic projects.
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Project managers, responsible for delivering services and materials across the globe, have new challenges leading international projects with participants and project stakeholders not centrally located.
Most problems revolve around cultural and communication issues.
Paraphrasing a frustrated project manager responsible for implementing a 6 (σ) Sigma methodology to increase plant quality and efficiency, “We were trying to implement something completely alien, in a different language, and in a different culture.”
Communication issues
First, the good news, the nature of project management requires the project manager to be a good communicator. In order to meet a project’s goals, a project manager must communicate across all functions. Adding the intricacies of nationalities and cultures increases this difficulty when communicating.
Finding a common way to communicate with project stakeholders across boundaries at times can be arduous. Language issues can be overcome by using interpreters or, if you’re really ambitious, even learning the native tongue of project stakeholders. Meanwhile, inferences in one language can still be missed when in dialogue with another. For example, one project manager learned from an interpreter that some Asian project managers and programmers on one project team expected more detailed explanations of technical and business decisions.
Technology allows data – verbal, written, and graphic – to be transmitted globally and almost instantaneously. However, time zone differences can inhibit communication. For example, a teleconference held in one location may have participants in another location 12 hours out of phase. Flexibility is the key to holding meetings. The Project Manager has to balance priorities when communication is to be held to accommodate the time differences.
Cultural issues
A potential definition of ‘cultural diversity’ can be the collaboration of members of different ethnic or religious cultural backgrounds working together toward a common goal, or project.
As a result, it is critical to a project’s success that different cultures have different operating systems. In this environment, respect for other cultures is vital.
When working in a country different from your own, determine what the cultural trends are in that country. Detailed explanations and instructions may be the cultural norm. Some cultures find it easy to admit that a mistake was made while other cultures do not. Other cultures are reluctant to ask questions or voice objections because it is considered rude and disrespectful. These cultural trends can make resolving issues more complicated.
As one company’s vice president observed, “The American way isn’t the only way and is abhorred in some countries, especially in Europe. Try to employ people who have a foot in each camp from previous work or upbringing. Learn what is acceptable and what isn’t.” Besides communication and cultural challenges associated with running international projects, there are additional factors for consideration.
Building a good team
Developing and driving a cohesive team is difficult under the best of circumstances. Adding the complexities due to international factors increases the challenges project managers have to face.
A good team building process should include:
- Clarifying the goal
- Building ownership across the team
- Identifying inhibitors to teamwork
On the last bullet above, if inhibitors to teamwork cannot be removed or overcome, try and mitigate their negative effect on the team. One American project manager mitigated these risks by visiting her counterparts in Asia. It proved to be a useful experience because all parties understood their roles and responsibilities. “It was also easier to resolve conflicts later on as we had built up relationships with the people involved around the world,” she said.
Legal complexities
The WEEE and RoHS directives have received much attention within the electronics manufacturing community. However, there are other complications beyond both environmental directives.
Acceptable ways of doing business in some countries are illegal in the United States, as per the US Foreign Corrupt Practices Act. Conversely, the European Union’s Data Protection Directive, that governs intellectual property, is more heavily regulated and rigidly enforced than in the United States. Therefore, project managers must be aware of legal restrictions in all countries where there are project participants and stakeholders.
In some specific industries, regulations exist whereby companies have to be cognizant of and in compliance with. For example, companies that support defense industries may come under the United States’ International Traffic in Arms Regulations (ITAR), which regulates the export and import of defense-related articles and services on the United States Munitions List.
Consult the United States Department of Commerce Website prior to entering a business relationship overseas. They can provide recommendations on legal issues when operating in specific countries.
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