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Managing NPD: Cost and Schedule Performance in Design and Manufacturing
Any type of content formally published in an academic journal, usually following a peer-review process.
posted on 01.01.2002by Akhilesh Bajaj, Sunder Kekre, Kannan Srinivasan
Previous work in the area of new product development (NPD) has focused mainly on the role of
design in downstream value chain activities. In this field study, conducted at a leading avionics
guidance systems manufacturer, we gathered primary data on time and cost performance of both
the design and manufacturing phases of customized systems. We modeled the impact of the
management levers relating to oversight, the intensity of specialization in design and the level of
interaction with the customer. Our model recommends appropriate managerial strategies based on
the relative resources required in the design and manufacturing phases. The study highlights the
necessity of leveraging the interdependency between the design and manufacturing phases to
achieve superior performance in both financial and time metrics.