Simulation of the New Product Development Process for Performance Improvement

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.new product development, concurrent engineering, sequential engineering, stochastic simulation, overlapping, cross-functional teams

Process models in design and development

“…Assuming instead that tasks are executed in sequence, such that each task might create rework for others already completed if a dependency exists between them, Browning and Eppinger (2002) build on the earlier work of Smith and Eppinger (1997b) to develop a Monte Carlo simulation model which they use to evaluate the cost and schedule risk associated with different task sequences and thereby identify the best sequence for a given task decomposition. These two models, respectively, described as parallel and sequential rework models, have influenced many other research articles (e.g., Bhuiyan et al 2004;Cho and Eppinger 2005).…”

“…Other researchers study similar issues using Monte Carlo simulation which allows study of more complex problems involving more factors and variables. For instance, the model developed by Bhuiyan et al (2004) focuses on how sequentially dependent process phases can be overlapped to reduce development time at the risk of causing iteration at the phase exit review. They show that this risk can be mitigated by increasing the degree of functional interaction between engineering functions within each phase, although this causes more iteration within the phases.…”

Structure-based System Dynamics analysis of engineering design processes

“…Relationships of functional interaction and overlapping of activities on effort and total span time using empirically derived relationships between rework and the level of functional interaction can be found in (Bhuiyan et al, 2004).…”

Using Discrete Event Simulation for Evaluating Engineering Change Management Decisions

“…It has been widely embraced by both academia and industry for the well documented advantages of NPD cycle acceleration, risk minimization by the detections of design errors in early stages, and overall quality improvement (e.g., [3,17,27]). It is one of the process features that are captured and thoroughly analyzed by the DES model proposed here.…”

“…From an "information processing" view, the generic activity network proposed in [3,4] is adopted as the fundamental modeling structure. By doing so, the NPD process can be decomposed into numbers of Phase 1, 2, … , with certain degrees of overlapping.…”