Graduate Thesis Or Dissertation
 

A product development process measurement methodology applied to small manufacturing companies

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  • The implementation of concurrent engineering into many large companies has greatly improved their product development processes. These companies have seen significant gains in quality and customer satisfaction with reduced product costs, defects, and time-to-market (Lake, 1992). Many large companies have successfully employed this relatively new product development philosophy. However, smaller companies have not yet integrated this philosophy into their product development systems with the success that larger companies have seen. With small companies composing 98% of the manufacturing firms in this country (U.S. Census Bureau, 1995), there has been a recent push for the development of implementation methods for small companies. This paper presents a five step approach that small manufacturing companies can use to implement a concurrent engineering based product development process. Our definition of a small manufacturing company is an organization with 50 or fewer employees and net annual sales of 10 million dollars or less. The first step provides a general outline for companies to use in documenting their current product development process. The second step involves comparing the company's current product development process to a concurrent engineering based product development process model that is general enough for nearly all manufacturing firms. This step also includes the use of the theory of constraints and a so-called revised theory of constraints method to further refine the process understanding and description. Third, a new methodology for designing and applying process measurements is used to provide insight into the relationships that exists between the internal and external resources, requirements and deliverables of the product development process. It is during this step that the Process Measurement Matrix (PMM) is developed. Fourth, the PMM is used in conjunction with the analytical hierarchy process or a simple ranking technique to develop relative priorities. Finally, the appropriate measurements are constructed for each subprocess in the product development process.
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