Performance Evaluation of Complex Product Development

In this paper a conceptual performance evaluation framework is proposed and discussed. The aim of the framework is to present a tool to stakeholders, involved in dynamic complex product development activities, that assists in developing a mutual understanding of performance relevancy. It is argued that a system perspective and the possibility to tailor performance criteria and measures according to contextual circumstances are needed for performance evaluation to improve work in product development. Companies need to consider what metrics that are relevant or applicable to measure or evaluate the product development process in their own business and context. From a performance evaluation perspective, a categorization of activities in product development is made into: Planning, Implementation, and Sales and Delivery. It is argued that the three activity categories have different objectives and need to be evaluated and managed accordingly if the overall development process is to be considered successful. Moreover, each activity category can be modeled using a generic activity model to derive relevant performance criteria, needed for identifying relevant performance indicators. It is argued that this will have implications on how performance, that is, efficiency and effectiveness, in product development is evaluated at a managerial and designer level, since the performance evaluation framework is based on the performed activities. Three different perspectives – integrated, information and learning – are used as basis for the discussion in this paper in order to accomplish an enhanced understanding of the value of the performance evaluation.