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Measuring the Effectiveness of Overlapping Development Activities

Author

Listed:
  • Christian Terwiesch

    (The Wharton School, University of Pennsylvania, 1300 Steinberg Hall-Dietrich Hall, Philadelphia, Pennsylvania 19104)

  • Christoph H. Loch

    (INSEAD, Boulevard de Constance, 77305 Fontainebleau, France)

Abstract

Overlapping development activities is widely used to reduce project completion times in product development. However, research on the applicability of the concept in different technological environments remains scarce. So far, very few industry-specific studies have statistically confirmed an accelerating effect of overlap. In the present article we statistically measure the effectiveness of overlapping development activities in reducing project completion time. Building on analytical research in operations management, we argue that this effectiveness differs with the organization's capability to resolve uncertainty early in the process. Projects benefit more from overlap if they are able to resolve uncertainty early. This contingency view to overlapping development activities is tested based on data from 140 completed development projects across several global electronics industries.

Suggested Citation

  • Christian Terwiesch & Christoph H. Loch, 1999. "Measuring the Effectiveness of Overlapping Development Activities," Management Science, INFORMS, vol. 45(4), pages 455-465, April.
    • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:4:p:455-465
    DOI: 10.1287/mnsc.45.4.455
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    References listed on IDEAS

    as
    1. Thomke, Stefan H., 1998. "Simulation, learning and R&D performance: Evidence from automotive development," Research Policy, Elsevier, vol. 27(1), pages 55-74, May.
    2. Christoph H. Loch & Christian Terwiesch, 1998. "Communication and Uncertainty in Concurrent Engineering," Management Science, INFORMS, vol. 44(8), pages 1032-1048, August.
    3. Viswanathan Krishnan & Steven D. Eppinger & Daniel E. Whitney, 1997. "A Model-Based Framework to Overlap Product Development Activities," Management Science, INFORMS, vol. 43(4), pages 437-451, April.
    4. Albert Y. Ha & Evan L. Porteus, 1995. "Optimal Timing of Reviews in Concurrent Design for Manufacturability," Management Science, INFORMS, vol. 41(9), pages 1431-1447, September.
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