Ingenieur Vol 80 ingenieur 2019 octoberfinal | Page 21

Figure 5: Boeing 787 Work Share among Global Suppliers 4 Current Challenges in Engineering Services One of the main revenue streams for engineering service companies is selling engineering man- hours so productivity has a direct and significant impact on the company’s financial results. To ensure profitability thus requires higher investment in training of the workforce in addition to maintaining consistently high productivity rates, which would result in strong competitiveness in the market. Different types of training are needed for the different types of engineering specialists employed by the organisation. This results in an additional operating cost on the engineering service provider since a wide range of training is required throughout the year. The conundrum has always been controlling investments in training while still keeping the work force highly competent. The skilled workforce also faces higher turnover rates due to talent acquisition efforts by competitors as such highly skilled workers are scarce and much sought after in the job market. Another overlooked but important aspect of engineering services is ensuring that the customer’s immediate service requirements are attended to in an expeditious manner. This puts tremendous pressure on the resource management element of the engineering service provider as it requires them to maintain available resources at the appropriate times to support its customers’ demands. The average acquisition time of the unplanned resource (normally called “lead time”) can be estimated by the organisation’s experts, based on historical data or having close relationships with the customers’ procurement 19