International Journal of Product Development (6 papers in press)
Fair allocation of cost reductions for a scale-based product family in a hierarchically structured firm
by David Mueller
Abstract: Size ranges are a widespread type of product family design, which are used to combine high product variety and cost reductions. For the purposes of motivation and remuneration, these cost reductions should be shared in a fair way between the employees. The nature of cooperative cost reductions is superadditive a fact which impedes a fair assignment. For this reason, the purpose of this paper is to present an approach for calculating and fairly allocating a cost reduction in a hierarchically structured firm.
The process of designing and producing size ranges is modelled as a cost reduction game within a hierarchically structured organization. Economies of scope and of scale are calculated based on cost growth laws which mirror the physical similarities of the products. Assuming a hierarchical organization, this study presents a mechanism which distributes this cost reduction across all contributing employees in the firm.
The research shows that cost growth laws are suitable for calculating the costs of all members of a product family based on the basic draft using physical characteristics. In addition, it is shown how to fairly distribute the jointly generated result by interpreting managers as zero-players.
Keywords: Product family design; Cost growth laws; Size range; Cost reduction game; Hierarchical structure; Permission tree.
STRATEGIES FOR FACING THE CRISIS: THE CASE OF THE CAR DESIGN/STYLE SUPPLY CHAIN IN FRANCE AND IN ITALY
by Giuseppe Giulio Calabrese, Monique Vervaeke
Abstract: In a short space of time the car design/style supply chain has undergone deep changes, which are being amplified by the current economic-financial crisis. The digitalisation of production and the transformation of supply links have modified the competitive positioning of these companies along the automotive supply chain. The aim of the paper is to analyse the drivers adopted by the French and the Italian car design/style firms for facing the crisis. The paper uses a brief literature review to highlight the strategic role of car design/style companies in the automotive industry in terms of innovation and supply chain. The French and Italian car design/style supply chains were investigated by twenty face-to-face interviews. In a context of macro-economic downturn, the French and the Italian car design/style samples have over performed the respective total automotive supply chains. The performance achieved and the implementations of distinguished strategies are the evidence of the resilience of the firms investigated. To date, there has been very few empirical study which has investigated the strategies adopted by supply chains during the ongoing crisis. The digitalisation of production and the transformation of supply links have modified the competitive positioning of design/style companies along the automotive supply chain.
Keywords: Car design/style; automotive; industrial performance; crisis.
People in lean product development: The impact of human resource practices on development performance
by Mareike Heinzen, Nicolas Frederik Hoeflinger
Abstract: For 25 years, lean product development (LPD) has been discussed as a management concept that balances the antagonism of developing innovative products of high quality, while simultaneously coping with cost and time-to-market reduction. LPD tries to achieve this balance by using both a set of principles that have been proven to be successful and by emphasising human activity in the development process. To that end, this paper analyses the impact of different human resource practices first, the skills and the motivations of a companys developmental employees; and second, the LPD performance. 176 employees of development departments from 96 companies completed the questionnaire. The partial least squares analysis demonstrates that training, internal development and performance appraisal contributes significantly to performance in LPD processes. Interestingly, performance compensation does not show any impact. The construct of LPD performance itself is strongly influenced by the application of continuous improvement and the specification of customer value.
Keywords: Lean Principles; Product Development; Human Resource Practices; Performance.
Optimizing product development in industry by alignment of the ISO/IEC 15288 Systems Engineering Standard and the PMBoK Guide
by Rui Xue, Claude Baron, Philippe Esteban
Abstract: As economic pressure continues to mount worldwide, closer cooperation is needed between people, companies and even countries. At the same time, the scale of projects is constantly rising. In order to ensure the success of large-scale projects, the way different teams cooperate is becoming increasingly important. Cooperation between systems engineering and project management is now key in this respect. On the other hand, it is widely recognized that the use of standards can improve the success ratio. Thus, integration using standards or guides from systems engineering and project management can help companies improve their competitiveness. A host of standards or guides have already been published in both domains. The purpose of this paper is to take the most frequently used standards or guides from systems engineering and project management, to compare them and build a bridge between them so as to provide a view shared by systems engineers and project managers enabling them to carry out their projects effectively.
Keywords: systems engineering; project management; standard; guide; process; alignment.
NEW PRODUCT DEVELOPMENT IN AN ENTREPRENEURIAL COMPANY
by Rajeshwari Krishnamoorthy
Abstract: Entrepreneurial orientation is positively related to new product development(NPD). Through indepth case studies of two entrepreneurial companies in the consumer packaged goods sector, this study arrives at a set of findings regarding new product development. These include aspects of new product process, role market research in NPD,consumer insighting and evaluation of NPD. The findings can be used for future theory building in the area of new product development.
Keywords: New product development in Entrepreneurial company; New product development in Consumer packaged goods; Case research in new product development,NPD.
A VSM and VSA Methodology for Performance Assessment of Complex Product Manufacturing Processes: An Industrial Case Study
by R.M. Chandima Ratnayake, Dorota Stadnicka
Abstract: Value stream mapping (VSM) aids in visualizing an entire manufacturing system (MS) including potential entities such as: flows, processing times (PT), and lead time (LT). Although the visualization of the value stream aids performance assessment (PA) of the different sub-processes in an overall manufacturing process (MP), when it comes to a complex product (CP), the value stream map (VS-Map) and value stream analysis (VSA) become significantly complex in the PA of an overall MS. Also, the application potential of VSM capabilities has not been significantly exploited for VSA, PA and waste reduction (WR) in complex products manufacturing processes (CPMPs). This manuscript illustrates a VSM based generic methodology that enables the visualization, PA and WR in a CPMP. The VSM, along with Kanban, enables modeling and implementing an order-driven or pull MP together with just-in-time material (or semi-finished items) arrivals. The work-in-process inventories are constrained by Kanban cards together with supermarket systems. The manuscript also proposes a number arrays-based approach that enables a comprehensive VSA when the VS-Map becomes significantly large and complex. A case study has been performed in collaboration with a saw-blade sharpening machines manufacturing firm to illustrate the use of the suggested VSM based generic methodology and number arrays in VSA for PA of CPMPs. The calculated lead time of the case study CP is almost 323 days. All cycle times are smaller than takt time (TT) (i.e. 600 min). Changeovers (COs) are not a challenge because they are not on the critical path.
Keywords: value stream mapping; value stream analysis; value stream map; number arrays; complex product manufacturing; waste reduction; Kanban; performance assessment.