Performance analysis of new product development projects

Purpose - – The purpose of this paper is to investigate the influence of technical and management practices of a new product development (NPD) project on the project success in terms of observed value-added time. The authors address the research questions: “How do the product innovation aspects, information process, suppliers integration and project team aspects influence the success of NPD projects in terms of observed value-added time?” Design/methodology/approach - – Specific hypotheses are posed based on literature research and semi-structured interviews with project managers used for the pilot study. In total, 40 projects carried out by multinational corporation, concerning NPD, are analysed, comparing product and project features with results obtained in terms of performance indexes usually used in “Lean Production” sector: “waste time”; and “type of wastes”. Findings - – This research highlighted that “over-processing” is the most important waste made in the projects when the product concept is Completely New. Great support has been found for the hypothesis that a clear definition of products’ concept can reduce waste time. Unexpected result has been obtained analysing “Information process aspects” category where the more frequent use of support systems (i.e. quality function deployment, computer-integrated manufacturing, computer-aided design, etc.) tended to increase waste time. Important connections have also been found between project team aspects and low waste time. Practical implications - – The identification of sources of waste can help managers to assess their current innovation practices, identify gaps between their current practice and best practice, and define action plans to close those gaps. Originality/value - – In literature, researches exploring the effects that both organizational and managerial factors have on value-added has received only scant attention. This study attempts to bridge this gap, and takes a first step to investigate the role of product innovation aspects, information process, supplier integration and project team aspects in “value-added time” in a NPD project.