Expected Development Time Reductions in the German Mechanical Engineering Industry

Abstract

This article presents initial results of field studies on the product development practices in German mechanical engineering companies. The investigation concentrates on managers' estimates on how much and by what means they could reduce cycle time and resource usage if the projects had been managed differently. In his analysis of fourteen development projects, Philipp Murmann reports that managers expect a reduction of development time as well as of development resources by 30% if appropriate activities would be employed. Parallel tasking and efficiency improvements account for the potential savings. Paralleling effects are project related, while improvements external to the projects cause efficiency-effects. Ten identified internal and external activities were expected to be of major importance in the reduction of development times. Major improvements are found among activities concentrated at the front end of development process. Further analyses show that primary and secondary activities can be separated; however, all of these activities need to be activated in order to achieve the anticipated results.