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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 companys 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 Siemens 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.

Siemens 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.

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 firms 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:

How can Siemens-Energy use project management techniques to improve the supply chain process of industrial gas turbine projects?
What is the supply chain path of the gas turbine part, from assembling, manufacturing, installation, commissioning, and maintenance?
What are the challenges that Siemens-Energy can face in the project management approach on supply chain management of industrial gas turbines?
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:

To critically assess how Siemens-Energy can use project management techniques to improve on the supply chain process of industrial gas turbine project;
To critical analyze the supply chain path of gas turbine parts, from assembling, manufacturing, installation, commissioning, and maintenance;
To critically evaluate the challenges that Siemens-Energy can face in the project management approach on supply chain management of industrial gas turbines;
To determine ways in which this company can overcome the identified challenges;
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).

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 clients 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

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