Simulation of the New Product Development Process for Performance Improvement

Nadia Bhuiyan (), Donald Gerwin () and Vince Thomson ()
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Nadia Bhuiyan: Department of Mechanical and Industrial Engineering, Concordia University, 1455 de Maisonneuve Boulevard West, Montréal, Québec, Canada H3G 1M8
Donald Gerwin: Eric Sprott School of Business, Carleton University, Ottawa, Ontario, Canada K1S 5B6
Vince Thomson: Department of Mechanical Engineering, McGill University, 817 Sherbrooke Street West, Montréal, Québec, Canada H3A 2K6

Management Science, 2004, vol. 50, issue 12, 1690-1703

Abstract: This paper explores the linkages between key features of the new product development (NPD) process and NPD performance and suggests ways of designing the process to improve performance. Using a stochastic computer model, we examine, under varying uncertainty conditions, how the key features of overlapping and functional interaction affect the performance measures of development time and effort (total person-days for a project). Findings indicate that, first and foremost, whether or not overlapping occurs, increasing functional interaction eventually leads to a trade-off between development time and effort. Second, an Üearly-start-in-the-darkÝ approach of increasing overlapping with no functional interaction is inferior even to an Üover-the-wallÝ approach. Third, increasing overlapping when some functional interaction exists is beneficial in low uncertainty and harmful in high uncertainty. Fourth, concurrent engineering (CE) is appropriate under low uncertainty, while a type of sequential engineering (SE), different than the Üover-the-wallÝ approach, should be used under high uncertainty, and last, dedicated teams are suitable under high, and not low, uncertainty. We developed the model with the aid of a company and validated it against a published account of five case studies.

Keywords: new product development; concurrent engineering; sequential engineering; stochastic simulation; overlapping; cross-functional teams (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:50:y:2004:i:12:p:1690-1703

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