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A New Product Development Model for SMEs: Introducing Agility to the Plan-Driven Concurrent Product Development Approach

Author

Listed:
  • Tena Žužek

    (Faculty of Mechanical Engineering, University of Ljubljana, Aškerčeva cesta 6, 1000 Ljubljana, Slovenia)

  • Žiga Gosar

    (Development and Technology Department, Elvez Ltd., Ulica Antona Tomšiča 35, 1294 Višnja Gora, Slovenia
    Ecotechnology Programme, Jozef Stefan International Postgraduate School, Jamova cesta 39, 1000 Ljubljana, Slovenia)

  • Janez Kušar

    (Faculty of Mechanical Engineering, University of Ljubljana, Aškerčeva cesta 6, 1000 Ljubljana, Slovenia)

  • Tomaž Berlec

    (Faculty of Mechanical Engineering, University of Ljubljana, Aškerčeva cesta 6, 1000 Ljubljana, Slovenia)

Abstract

In order to survive in today’s highly competitive global market, small and medium-sized enterprises (SMEs) have had to transition from sequential to concurrent product development, which significantly shortens development cycles, reduces costs, and ensures high product quality. Despite its many benefits, concurrent product development is still based on detailed upfront planning and cannot address the challenges related to today’s ever-growing uncertainty, constantly changing environment, and unstable requirements. A potential solution to this problem could be in more flexible and value-driven agile project management (APM) approaches, typical of software development. In this paper, we propose a new product development model specifically appropriate for SMEs that combines concurrent product development principles with APM elements. It is designed as a loop of five repetitive steps (macroplan, microplan, iteration activities, review, and retrospective) that are being executed within individual concurrent development loops. The application of the model is presented on a real case example of process development and small batch manufacture of a complex wiring harness. The study reveals many benefits of the proposed model, such as improved communication, faster detection of discrepancies, more effective problem solving, and greater flexibility. A positive impact on project success is also observed.

Suggested Citation

  • Tena Žužek & Žiga Gosar & Janez Kušar & Tomaž Berlec, 2021. "A New Product Development Model for SMEs: Introducing Agility to the Plan-Driven Concurrent Product Development Approach," Sustainability, MDPI, vol. 13(21), pages 1-22, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:12159-:d:671791
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    References listed on IDEAS

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    1. Billie Jo Zirger & Modesto A. Maidique, 1990. "A Model of New Product Development: An Empirical Test," Management Science, INFORMS, vol. 36(7), pages 867-883, July.
    2. Tena Žužek & Žiga Gosar & Janez Kušar & Tomaž Berlec, 2020. "Adopting Agile Project Management Practices in Non-Software SMEs: A Case Study of a Slovenian Medium-Sized Manufacturing Company," Sustainability, MDPI, vol. 12(21), pages 1-17, November.
    3. Kasper Edwards & Robert G. Cooper & Tomas Vedsmand & Giulia Nardelli, 2019. "Evaluating the Agile-Stage-Gate Hybrid Model: Experiences From Three SME Manufacturing Firms," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(08), pages 1-32, December.
    4. Eva Maria Falkner & Martin R.W. Hiebl, 2015. "Risk management in SMEs: a systematic review of available evidence," Journal of Risk Finance, Emerald Group Publishing, vol. 16(2), pages 122-144, March.
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    Cited by:

    1. Tseng, Hsiao-Ting & Aghaali, Niloofar & Hajli, Dr Nick, 2022. "Customer agility and big data analytics in new product context," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    2. Abid Ali & Ahmad Wasim, 2022. "Innovative Framework for Assessing the Impact of Agile Manufacturing in Small and Medium Enterprises (SMEs)," Sustainability, MDPI, vol. 14(18), pages 1-20, September.

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