scispace - formally typeset
Search or ask a question

Showing papers in "International Journal of Operations & Production Management in 2002"


Journal ArticleDOI
TL;DR: In this paper, the use of case study research in operations management for theory development and testing is reviewed and guidelines and a roadmap for operations management researchers wishing to design, develop and conduct case-based research are provided.
Abstract: This paper reviews the use of case study research in operations management for theory development and testing. It draws on the literature on case research in a number of disciplines and uses examples drawn from operations management research. It provides guidelines and a roadmap for operations management researchers wishing to design, develop and conduct case‐based research.

4,127 citations


Journal ArticleDOI
TL;DR: In this paper, the authors define and explore the legitimacy of an action-oriented research approach in OM, and the particular logic and value of applying action research (AR) to the description and understanding of issues in OM.
Abstract: A fundamental methodological question guides this paper: How can operations managers and researchers learn from the applied activity that characterises the practice of OM? To address this question, defines and explores the legitimacy of an action‐oriented research approach in OM, and the particular logic and value of applying action research (AR) to the description and understanding of issues in OM. Begins with a review of the role of empirical research in OM and how AR features within the OM research literature. Introduces the theory and practice of AR and outlines the AR cycle and how AR is implemented. Finally, describes the skills required to engage in AR and explores issues in generating theory. Concludes with the assertion that AR is relevant and valid for the discipline of OM in its ability to address the operational realities experienced by practising managers while simultaneously contributing to knowledge.

1,344 citations


Journal ArticleDOI
TL;DR: This paper provides guidelines for the design and execution of survey research in operations management, presenting a systematic picture which synthesises suitable survey practices for research in an OM context.
Abstract: This paper provides guidelines for the design and execution of survey research in operations management (OM). The specific requirements of survey research aimed at gathering and analysing data for theory testing are contrasted with other types of survey research. The focus is motivated by the need to tackle the various issues which arise in the process of survey research. The paper does not intend to be exhaustive: its aim is to guide the researcher, presenting a systematic picture which synthesises suitable survey practices for research in an OM context. The fundamental aim is to contribute to an increase in the quality of OM research and, as a consequence, to the status of the OM discipline among the scientific community.

1,322 citations


Journal ArticleDOI
TL;DR: In this article, the authors surveyed senior managers in various industries to study the prevalent supply chain management and supplier evaluation practices and related these practices to a smaller set of constructs and related the constructs to firm performance.
Abstract: Many leading firms in the USA have adopted an integrated strategic approach to purchasing and logistics management known as supply chain management. As the twenty‐first century begins, supply chain management has become a significant strategic tool for firms striving to improve quality, customer service and competitive success. This article surveyed senior managers in various industries to study the prevalent supply chain management and supplier evaluation practices. The study reduced these practices to a smaller set of constructs and related the constructs to firm performance. The results show that many constructs were correlated with firm performance and that some constructs were found to adversely affect performance.

882 citations


Journal ArticleDOI
TL;DR: In this article, the authors present the findings of this survey research, expecting to bring out insights in this greening process and inspire business, government and communities in this region to create an atmosphere conducive to the process.
Abstract: As has been widely observed nowadays, a major part of the world’s manufacturing will be taking place in South East Asia in the coming decade. This would create many opportunities in this part of the world, but would also bring about substantial environmental burden. To address this problem, many large corporations have started encouraging, guiding and even funding their suppliers to be green. To determine to what extent this greening of the supply chain is taking place in South East Asia research has been undertaken encompassing The Philippines, Indonesia, Malaysia, Thailand and Singapore with a survey questionnaire as the research instrument. The objective of this paper is to present the findings of this survey research, expecting to bring out insights in this greening process and inspire business, government and communities in this region to create an atmosphere conducive to the process.

745 citations


Journal ArticleDOI
TL;DR: The research reported in this paper seeks to address the gap in the literature by presenting data that describes the forces that shape the evolution of the measurement systems used by different organisations.
Abstract: The effectiveness of performance measurement is an issue of growing importance to industrialists and academics alike. Many organisations are investing considerable amounts of resource implementing measures that reflect all dimensions of their performance. Consideration is being given to what should be measured today, but little attention is being paid to the question of what should be measured tomorrow. Measurement systems should be dynamic. They have to be modified as circumstances change. Yet few organisations appear to have systematic processes in place for managing the evolution of their measurement systems and few researchers appear to have explored the question, what shapes the evolution of an organisation’s measurement system? The research reported in this paper seeks to address this gap in the literature by presenting data that describes the forces that shape the evolution of the measurement systems used by different organisations.

590 citations


Journal ArticleDOI
TL;DR: The methodology of quantitative model‐driven empirical research offers a great opportunity for operations management researchers to further advance theory and build on learnings from operations research and operations management research from the past decades.
Abstract: Gives an overview of quantitative model‐based research in operations management, focusing on research methodology Distinguishes between empirical and axiomatic research, and furthermore between descriptive and normative research Presents guidelines for doing quantitative model‐based research in operations management In constructing arguments, builds on learnings from operations research and operations management research from the past decades and on research from a selected number of other academic disciplines Concludes that the methodology of quantitative model‐driven empirical research offers a great opportunity for operations management researchers to further advance theory

508 citations


Journal ArticleDOI
TL;DR: In this paper, the authors investigated the success and failure of performance measurement system design interventions in ten companies and found three important differences between companies that proceeded to implement the measures agreed during the process and those that did not.
Abstract: This paper investigates the success and failure of performance measurement system design interventions in ten companies. In each case, the senior management team was facilitated through a management process to redesign their performance measurement systems. Analysis of the initial pilot case studies suggested three important differences between companies that proceeded to implement the measures agreed during the process and those that did not. Post intervention semi‐structured interviews with the directors and managers directly involved revealed two main perceived drivers of implementation and four perceived factors that block implementation. The results are of specific interest for performance measurement system implementation but have wider implications for our view of management commitment in change management.

447 citations


Journal ArticleDOI
TL;DR: In this paper, the authors developed hypotheses concerning purchasing/supplier involvement, strategic purchasing and firm's financial performance using the resource-base view of the firm, and empirically tested these hypotheses using structural equation modeling.
Abstract: The focus of this paper is on purchasing and supplier involvement in the firm. Using the resource‐base view of the firm, hypotheses are developed concerning purchasing/supplier involvement, strategic purchasing and firm’s financial performance. A model of the hypothesized relationships is offered and empirically tested using structural equation modeling. The model is tested using data collected in 1999. Each factor in the model is measured by a number of scale items. Based on the results of confirmatory factor analysis, an overall fit of the model to the data is achieved. Both convergent and discriminate validity is demonstrated. The research findings reveal that the hypotheses tested in the model are supported. Purchasing/supplier involvement has a positive impact on strategic purchasing, and strategic purchasing has a positive impact on firm’s financial performance. The paper concludes with some research implications, limitations of the study and suggestions for future research.

347 citations


Journal ArticleDOI
TL;DR: This article explored the total product mix of mass customizing plants using data gathered from 126 mass customizers and found that plants that choose mass customization approaches that match the non-mass customized product line characteristics have higher financial performance than those firms without a matched product line.
Abstract: Mass customization presents a paradox to traditional manufacturing practices. Historically, companies chose to produce either customized, crafted products or mass‐produced, standardized products. Thus, mass customization presents a paradox by combining customization and mass production, offering unique products in a mass‐produced, low cost, high volume production environment. If mass customization is truly a combination of mass production and craft manufacturer, how does a manufacturer become a mass customizer? Are the key principles of mass customization rooted in customized product knowledge or mass production techniques? Does the path to mass customization impact financial performances? This paper begins to answer these questions by exploring the total product mix of mass customizing plants using data gathered from 126 mass customizers. This study shows plants that choose mass customization approaches that match the non‐mass customized product line characteristics have higher financial performance than those firms without a matched product line.

306 citations


Journal ArticleDOI
TL;DR: In this article, the authors explored the awareness and level of implementation of e-commerce in UK small and medium-sized enterprises (SMEs) and identified the challenges faced by SMEs.
Abstract: This article explores the awareness and level of implementation of e‐commerce in UK small and medium‐sized enterprises (SMEs). Results of a survey of 298 small firms suggest that issues of leadership and waste management are of greater importance to SMEs than development of e‐commerce capability. Those SMEs which have developed e‐commerce capability have not done so strategically and have yet to enjoy significant cost and time savings. The survey also identifies the challenges faced by SMEs. Finally, paths are suggested, which might be followed by such firms in seeking to enhance their performance in e‐commerce.

Journal ArticleDOI
TL;DR: In this paper, a path model incorporating quality practices, design quality, conformance quality, external quality-in-use, product cost, time-to-market, customer satisfaction, business performance and buyer-seller relationships was developed.
Abstract: This paper contributes to, and links the areas of quality management and buyer‐supplier relationships. In doing so, we seek to address two broad research questions. To what extent do quality practices impact upon the various dimensions of quality performance, manufacturing performance and, in turn, business performance? To what extent is the relationship between quality practices and quality performance contingent upon the nature of buyer‐supplier relationships? To address these questions, we developed a path model incorporating quality practices, design quality, conformance quality, external quality‐in‐use, product cost, time‐to‐market, customer satisfaction, business performance and buyer‐seller relationships. The model was tested with data collected from 200 suppliers in the electronics sector in the Republic of Ireland. Data analysis of the data indicated considerable support for the conceptual model.

Journal ArticleDOI
TL;DR: The aim of this paper is to explore the longitudinal alignment between performance measures and business strategy, and the role of business improvement models as a key catalyst in this alignment process is probed.
Abstract: The aim of this paper is to explore the longitudinal alignment between performance measures and business strategy. Moreover, the paper will probe the role of business improvement models as a key catalyst in this alignment process. Since the late 1980s performance measurement has become topical with ever‐increasing interest in the subject. The increasing interest has been driven by the rapidly changing business environment and strategy, in both the private and public sectors. A literature review covering the current issues concerning performance measurement was undertaken, emphasising the development of performance measurement in relation to business strategy. The continual alignment of performance measures and frameworks with business strategy is stressed. Also, business improvement models are reviewed as possible mechanisms for enabling this alignment. Following this review, a longitudinal case study approach, based on a five‐year university/industry learning partnership with an international aerospace organisation, was used to investigate alignment between performance measures and business strategy. The findings of the study confirm that performance measures linked to strategy are more effective. Moreover, the alignment between the measures, measurement framework and the strategy must be continually reviewed and treated as a dynamic and complex issue, rather than a linear mechanistic relationship.

Journal ArticleDOI
TL;DR: In this article, the authors argue that, whilst lean production practices have been adopted and adapted by many producers, batch production has an enduring value from both a work design and a manufacturing process design perspective.
Abstract: This paper sets out to test the claim made in the lean production literature that the lean production system is universally applicable. The proponents of the lean production model insist that it will supersede both mass production and specialised batch production; but this paper argues that, whilst lean production practices have been adopted and adapted by many producers, batch production has an enduring value from both a work design and a manufacturing process design perspective. The paper reviews the evidence for the persistence of batch production and of craft work methods in both luxury vehicle manufacture and specialty component manufacture and highlights the conditions under which batch production remains viable.

Journal ArticleDOI
TL;DR: The use of system dynamics and multicriteria decision analysis, as part of a broader framework for performance measurement, can address some of the issues identified and enhance understanding and ultimately contribute to the improvement of organisational performance.
Abstract: The design, implementation and use of adequate performance measurement and management frameworks can play an important role if organisations are to succeed in an increasingly complex, interdependent and changing world. Yet, despite widespread recognition of the importance of performance assessment, there are some issues that require further study if measurement systems are to be effective in the process of management through monitoring and decision making. This article proposes and seeks to illustrate that the use of system dynamics and multicriteria decision analysis, as part of a broader framework for performance measurement, can address some of the issues identified. The use of these approaches, independently and in an integrated manner, provides a means of exploring the dynamic complexity of organisations, making explicit trade‐offs between performance measures, and assessing the impacts of initiatives to improve performance, thereby enhancing understanding and ultimately contributing to the improvement of organisational performance.

Journal ArticleDOI
TL;DR: In this paper, the authors discuss the evolution of focus and identify key issues for consideration in best practice investigations and address issues of methodology which can improve the quality of findings from studies of best practice and maximise company performance through the transfer of appropriate best practices.
Abstract: The number of studies relating to best practice in manufacturing has been increasing at a rapid rate over the last few years. As companies strive to attain world‐class manufacturing status the search for best practice has intensified. Focus has evolved from benchmarking as a means to improve company performance through the identification of best practice, to the need to identify, manage and transfer best practices. This paper discusses this evolution of focus and identifies key issues for consideration in best practice investigations. In particular, it addresses issues of methodology which can improve the quality of findings from studies of best practice and maximise company performance through the transfer of appropriate best practices.

Journal ArticleDOI
TL;DR: In this paper, an empirical study of one of the UK's four large supermarket chains reveals an inverse correlation between employee satisfaction and the measures of productivity, efficiency and profitability, the most profitable stores being those in which employees are least satisfied.
Abstract: This paper reports some empirical findings which appear to challenge the received wisdom prevailing in the operations management, service management, TQM and HRM literatures, namely, that employee satisfaction and loyalty are key drivers of productivity, efficiency and profit. An empirical study of one of the UK’s four large supermarket chains reveals an inverse correlation between employee satisfaction and the measures of productivity, efficiency and profitability, the most profitable stores being those in which employees are least satisfied. Employee loyalty, measured in terms of length of service, also appears to be inversely correlated with productivity and profitability. It also emerges that the pressure to maximise store efficiency may be leading to dysfunctional managerial behaviour at store level. These preliminary findings suggest two imperatives for managers and academics. For managers, it is advocated that they analyse the relationship between employee satisfaction, loyalty and financial performance in their own organisations rather than assuming that the rhetoric of the management literature applies in all operational contexts. For academics, four contingent variables are proposed which distinguish those service contexts in which the assumed relationship may pertain: services where customer contact with staff is high; services where there is little opportunity for technological substitution; services where staff contact is critical to the customer value proposition; and services with high labour costs.

Journal ArticleDOI
TL;DR: This study focused on the experience of a Quebec (Canada) hospital adopting a hybrid version of the stockless system, under which the distributor supplied high‐volume products for the patient care unit in case quantities, leaving the institution’s central stores to break down bulk purchases of low-volume products into point‐of‐use format (eaches).
Abstract: Due to the diversity of its players, the American healthcare sector has experimented with different types of integrated supply chain management systems for medical supplies. In the 1980s, US distributors were offering customers the so‐called stockless replenishment method, whereby the distributor picks and packs products according to the particular needs of each patient care unit and, in most cases, delivers them directly. By the late 1990s, stockless agreements had run out of steam, as distributors sought to optimize the balance between their efforts expended in hospital replenishment and the hospitals’ inventory savings. Among the various reflections and initiatives aimed at finding such a new balance, we focused on the experience of a Quebec (Canada) hospital adopting a hybrid version of the stockless system, under which the distributor supplied high‐volume products for the patient care unit in case quantities, leaving the institution’s central stores to break down bulk purchases of low‐volume products into point‐of‐use format (eaches). The study reveals marginal benefits from the hybrid method for both the institution and the distributor. However, it also reveals the importance of the manufacturer’s role with respect to packing formats, and demonstrates that the rearrangement of storage areas can generate substantial savings, opening the way to means for improving the healthcare sector supply chain.

Journal ArticleDOI
S Sivadasan1, J Efstathiou, G Frizelle, R Shirazi, Ani Calinescu 
TL;DR: A novel information‐theoretic entropy‐based methodology for measuring and analysing the operational complexity of supplier‐customer systems has been developed and can quantitatively detect and prioritise operational complexity hotspots.
Abstract: In a dynamic environment such as the supply chain, even basic supplier‐customer systems with structurally simple information and material flow formations have a tendency to exhibit operational complexity. The operational complexity of supplier‐customer systems is primarily characterised by the uncertainty of the system. As the operational complexity of a system increases there is an associated increase in the amount of information required to monitor and manage that system. Based on this understanding, a novel information‐theoretic entropy‐based methodology for measuring and analysing the operational complexity of supplier‐customer systems has been developed. This paper makes contributions in the theoretical, conceptual and practical developments of the methodology. The methodology can quantitatively detect and prioritise operational complexity hotspots. At the interface, the framework can identify and quantify the transfer of operational complexity. Within the internal manufacturing system, the framework...

Journal ArticleDOI
TL;DR: In this article, it is shown that the role of the center of excellence in a manufacturing network is not restricted to plants with know-how as the primary location advantage, but is also a common role for plants with market proximity as a primary advantage.
Abstract: The literature on global manufacturing strategy contains few models that help managers to design and manage their global plant network. An interesting model is the one developed by Ferdows, describing the strategic role of plants. This paper discusses and tests this model. The data provide strong empirical support for the model and add some new insights. It is shown that the role of the “center of excellence” in a manufacturing network is not restricted to plants with know‐how as the primary location advantage, but is also a common role for plants with market proximity as the primary advantage. Also, the model proves to be useful for the description and assessment of today’s network of plants, but it is too limited to serve as a typology for new plants that might be added to the network. Finally, the research shows that the perception of headquarters and of plant management concerning the plants’ strategic role may be very different.

Journal ArticleDOI
TL;DR: This paper develops an integer linear programming model, that has been tested in a pilot setting in a hospital, and develops an application of a specialty orthopaedics, which helps to manage the workload of the inflow of patients.
Abstract: Admissions planning decides on the number of patients admitted for a specialty each day, but also on the mix of patients admitted. Within a specialty different categories of patients can be distinguished on behalf of their requirement of resources. The type of resources required for an admission may involve beds, operating theatre capacity, nursing capacity and intensive care beds. The mix of patients is, therefore, an important decision variable for the hospital to manage the workload of the inflow of patients. In this paper we will consider the following planning problem: how can a hospital generate an admission profile for a specialty, given a target patient throughput and utilization of resources, while satisfying given restrictions? For this planning problem, we will develop an integer linear programming model, that has been tested in a pilot setting in a hospital. The paper includes an analysis of the planning problem, a description of the model developed, an application of a specialty orthopaedics, and a discussion of the results obtained.

Journal ArticleDOI
TL;DR: This paper presents an application of the methodology from quality function deployment for linking manufacturing flexibility to market requirements in a real case study at a firm where a manufacturing system was being redesigned for the manufacture of a new and wider range of products than previously, based on a new product platform.
Abstract: We use the methodology from quality function deployment (QFD) for linking manufacturing flexibility to market requirements. This approach creates a framework for modelling the deployment of the need for flexibility from the customers’ viewpoints into manufacturing flexibility at various hierarchical levels. We present an application of the methodology in a real case study at a firm where a manufacturing system was being redesigned for the manufacture of a new and wider range of products than previously, based on a new product platform. Based on the case study we discuss the benefits and limitations of using the QFD approach to deploy manufacturing flexibility. The paper also presents a literature review of the manufacturing flexibility framework arena.

Journal ArticleDOI
TL;DR: The results show that the size or storage capacity of the zone, the number of items on the pick list, and the storage policy have a significant effect on picking zone configuration and offer solutions to managers looking to implement improvements in distribution center operations.
Abstract: In today’s competitive global economy, the focus is on faster delivery of small more frequent orders of inventory at a lower total cost. This often precludes the use of full pallet picking in warehouses so firms commonly use manual picking of cases and broken‐cases. Many firms increase the efficiency of their warehouses by using zone picking. Zone picking requires that a worker only pick those stock‐keeping units (SKUs) stored within their picking zone. In this paper we examine the configuration or shape of these picking zones by simulating a bin‐shelving warehouse to measure picker travel where SKUs are assigned storage locations either using random or volume‐based storage. The results show that the size or storage capacity of the zone, the number of items on the pick list, and the storage policy have a significant effect on picking zone configuration. In addition, we found that the absence of a back cross aisle also affected picking zone configuration. These results offer solutions to managers looking to implement improvements in distribution center operations.

Journal ArticleDOI
TL;DR: In this article, the authors present a model for assessing the sustainability of shop floor based process improvement programs. The model is based on the SMMT (Society of Motor Manufacturers and Traders) Industry Forum MasterClass Process Improvement activity, but can be applied to any intensive shop floor-based process improvement programme.
Abstract: This paper outlines a model for assessing the sustainability of shop floor based process improvement programmes. The model was developed as part of a larger research programme, investigating the inhibitors and enablers for process improvement. The model is based on the SMMT (Society of Motor Manufacturers and Traders) Industry Forum MasterClass Process Improvement activity, but can be applied to any intensive shop floor based process improvement programme. The model’s purpose is to identify the level of sustainability achieved by process improvement programmes and consists of two elements. The first element identifies five different levels of sustainability at cell level. The second element operates at factory level and examines the degree to which the tools and techniques have been spread between cells.

Journal ArticleDOI
TL;DR: In this article, a survey of car manufacturers and first tier suppliers has been conducted to identify several trends concerning sourcing strategies and supplier relations in the car industry and to analyze how these trends correspond to the actual situation in the automotive industry.
Abstract: Intense competition and structural changes characterize the car industry. Several trends (i.e. general changes over time) concerning sourcing strategies and supplier relations can therefore be identified. The article aims to analyze how these trends correspond to the actual situation in the car industry. Based on a survey answered by both car manufacturers and first tier suppliers, this article provides facts and analyses regarding sourcing‐related trends over the past decade as well as some future predictions. The results show that both car manufacturers and suppliers continue to reduce product development time. They also increase supplier involvement in product development and the share of inbound JIT‐deliveries. However, while suppliers increase their outsourcing and globalization of production and product development activities, car manufacturers do not. Only some of the identified sourcing‐related trends are actually supported by the presented results. Hence, this article modulates the picture of the current development within the car industry.

Journal ArticleDOI
TL;DR: In this paper, the authors report some preliminary findings from a research project on the management of problem solving and continuous improvement in UK and US first tier automotive component manufacturers, and suggest that there are various routes toward the learning factory and that ultimately this model of operations is likely to have numerous practical incarnations.
Abstract: This paper reports some preliminary findings from a research project on the management of problem solving and continuous improvement in UK and US first tier automotive component manufacturers. It draws on organizational theory to interpret emerging structures, relationships and roles in the light of recent work on the “learning factory” model of manufacturing. There is considerable evidence of shifting patterns of roles and responsibilities, especially for operators, front‐line managers and a new cadre of continuous improvement specialists, but only limited evidence of knowledge transfer across organizational boundaries. Overall the findings suggest that there are various routes toward the learning factory and that ultimately this model of operations is likely to have numerous practical incarnations.

Journal ArticleDOI
TL;DR: In this paper, an empirical study of 382 US computer and electronics firms showed that higher product quality and lower production cost are the most important competitive factors, however, the correlations of these two competitive factors and sales growth and profitability performance measures are not statistically significant.
Abstract: The process of identifying and ranking the competitive factors is critical to management for formulating manufacturing strategy because it prioritizes criteria by which manufacturing performance will eventually be evaluated. An empirical study of 382 US computer and electronics firms shows that higher product quality and lower production cost are the most important competitive factors. However, the correlations of these two competitive factors and sales growth and profitability performance measures are not statistically significant. The results suggest that achieving high quality or low cost alone is not enough to improve or sustain a firm’s competitive position and there is a need to explore the emerging role of innovation and advanced manufacturing technology for achieving sustainable competitive advantage.

Journal ArticleDOI
TL;DR: In this article, a case study based on the Italian automotive industry is presented to investigate the transferability of co-design best practices to different firms and countries, and the authors show that despite the massive involvement of suppliers at a very early stage of the car maker new product development process, not all the best practices deemed to be necessary when implementing a co-operative buyer-supplier relationship have been applied.
Abstract: The nature of buyer‐supplier relationships has been closely linked to nation specific explanations and concern has been expressed in literature regarding the transferability of co‐design best practices to different firms and countries On the other hand, many attempts to isolate best practices and to apply them on a global scale have been proposed in the literature Contributes to the issue by analysing a controversial case study based on the Italian automotive industry Results show that few aspects of the Japanese contextual features and American ones existed when the major Italian car maker decided to outsource component design and dramatically change its supply chain management approach Moreover, despite the massive involvement of suppliers at a very early stage of the car maker new product development process, not all the best practices deemed to be necessary when implementing a co‐operative buyer‐supplier relationship have been applied Argues that these results lead us to question the very nature of effective buyer‐supplier relationships as described by the dominant literature and suggests implications for practitioners and for future research

Journal ArticleDOI
TL;DR: A number of elements of MRP implementation were identified and subsequently grouped into a hierarchical structure consisting of eight broader elements, revealing that only a few of the identified elements were indeed required for successful implementation.
Abstract: The paper deals with the implementation process of material requirements planning (MRP) within small and medium‐sized firms. While the literature shows almost general agreement on the critical factors of MRP implementation, few empirical studies exist to support the proposed elements. The purpose of this study is to identify the elements of MRP implementation that are required to ensure successful implementation. A number of elements of implementation were identified and subsequently grouped into a hierarchical structure consisting of eight broader elements. Criteria were selected as measures of the level of implementation success. The analysis revealed that only a few of the identified elements were indeed required for successful implementation. Among these are management support, level of functional integration and data accuracy.

Journal ArticleDOI
TL;DR: The results demonstrate that cost targets during NPD lead to lower‐cost new products, while not impairing design quality or development time, however, under high time pressure, cost targets lead design engineers to work longer on the design, without a corresponding cost decrease.
Abstract: Investigates the impact of using cost targets during new product development (NPD), in terms of design quality, product cost and development time. An NPD environment with cost targets is compared with an NPD environment where design engineers receive no specific cost targets, but are expected to “minimize” the cost level of future products. The impact of cost targets versus no‐cost targets is investigated in combination with high/low time pressure. The 2 * 2 factorial design was tested in a laboratory experiment that simulated a real design process, with customers asking for the highest design quality. The results demonstrate that cost targets during NPD lead to lower‐cost new products, while not impairing design quality or development time. However, under high time pressure, cost targets lead design engineers to work longer on the design, without a corresponding cost decrease.