Framework of overlapping product development activities to maximize profit

Abstract

Managing the overlapping of product development activities effectively is paramount to shortening lead-time; and hence, it is an important issue in new product development and has been widely studied. To the best of our knowledge, the literature has not yet addressed the topic of maximizing the product-development outcome by overlapping. In this article, a dynamic optimal control model is developed to maximize total profit of the product-development project. The closed form solutions are found, from which managerial insights are derived. Using two parameters, namely, evolution speed (slow and fast) and sensitivity (high and low), we create and examine four environments in our study – slow and high (SH), fast and high (FH), slow and low (SL), and fast and low (FL). Findings are obtained and organized into a framework to help with the management of product-development activities. We find that in most difficult environment, SH, the firm should invest in downstream activities lightly; while in the easiest environment, FL, the firm should invest heavily in downstream activities. In environment FH, the firm should postpone the investment in downstream activities to a later stage, start at a lower level, and increase efforts later at a faster pace. On the other hand, in environment SL, the firm should invest earlier, start at a higher level, and increase efforts at a slower pace. Finally, we develop the conditions and scenarios under which the final results and profits will be higher.

有效地管理產品開發活動的重疊是縮短前置期間的關鍵 ， 因此在新產品開發階段重疊活動管理是一個重要議題 ， 並已被廣泛的研究 ， 而據我們所知過去文獻並未解決重疊產品開發以求最大化成果的議題。 本文發展一個動態的最佳化控制模型 ， 以求得產品開發的利潤最大化 ， 並可由管理上的見解發現封閉形式的解決方案。 本文使用兩個參數：演化速度（快/慢）以及敏感度（高/低） ， 創造並研究四種環境－慢和高(SH)、快和低(FH)、快和低(SL)以及慢和低(FL) ， 將結果組織成架構以幫助管理產品開發活動。 我們發現在最困難的環境(SH)中 ， 企業應在下游活動投資較少 ； 而在簡單的環境(FL)中 ， 企業應在下游活動作大額投資。 FH環境中 ， 企業應延遲下游活動的投資至後期 ， 並由低水平開始進行投資 ， 且成果快速增加 ； SL環境中 ， 企業應較早投資並由高水平開始 ， 且成果緩慢地增加。 最後我們探討最終結果以及高獲利的條件與情境。

(*聯絡人: [email protected])

Keywords:

• new product development
• overlapping
• concurrent engineering
• optimal control theory

Keywords:

• 關键詞： 新產品開發 ; 重疊 ; 同步工程 ; 最佳控制理論

Notes

(*聯絡人: [email protected])