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Performance and performance measurements in complex product development
Note:
Printed by Arkitektkopia, Västerås, Sweden
Publication Type:
Licentiate Thesis
Publisher:
Mälardalen University Press
Abstract
In todays competitive environment, in which competition increases and the
pace of technological change accelerates, the need for deploying product
development investments more efficiently and effectively is stronger than
ever. The ability to create streams of new successful products to the market
is vital for every product delivering company's survival. Performance
measurements are important in order to evaluate the current state of
operation of the product development and decide on actions to improve its’
performance. However, in contrast to the concept of productivity in the
production process there are no commonly adopted methods for measuring
performance within product development.
The methodology used in this research is explorative multiple case studies at
five companies developing complex products. Complex products in this
research involve mechanics, electronics, and software. Moreover, complex
products are often long living and most development work is evolutionary in
character. An extensive interview study among senior managers and decision
makers has been conducted to get a broad and systematic understanding of
what performance is and what to measure.
The main results developed from this research are two conceptual tools. The
first one, the Performance Measurement Evaluation Matrix (PMEX) can be
used to evaluate the performance measurement system used at a company.
The PMEX makes it possible for managers to get a more holistic view and
discuss what the performance measurement system is measuring, and what it
is not measuring, in order to decide on what to measure. The second tool, the
Product Development Organizational Performance Model (PDOPM) can be
used to conceptually analyze performance in the product development
process from a holistic system perspective. This is achieved by making
efficiency, effectiveness, and uncertainty explicit and by showing how they
relate at a strategic, project, and product implementation level. The PMEX
and the PDOPM can be used by managers in order to increase the
understanding of what performance is and to be able to decide on actions in
order to improve the performance of the product development process.
Bibtex
@misc{Cedergren1316,
author = {Stefan Cedergren},
title = {Performance and performance measurements in complex product development},
note = {Printed by Arkitektkopia, V{\"a}ster{\aa}s, Sweden},
number = {91},
month = {October},
year = {2008},
publisher = {M{\"a}lardalen University Press},
url = {http://www.es.mdu.se/publications/1316-}
}
