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Product-Process Development Integration in Manufacturing

Author

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  • John E. Ettlie

    (School of Business Administration, The University of Michigan, Ann Arbor, Michigan 48109-1234)

Abstract

Organizations vary greatly in their approaches and success in the introduction of new products and services. In this study, it was proposed that much of this variance can be captured by understanding the extend to which product design and process design are integrated in new program launches. A mailed survey of 43 domestic firms was used to test four propositions concerning product-process development practices. Significantly, it was found that firms using the more rare design-manufacturing personnel integrating mechanisms (engineering job rotation and mobility) have higher sales per employee. Results of a discriminant analysis show that firms benchmarking on product development practices, as contrasted with performance benchmarks, were significantly more likely to use both the rare and the more common forms of design-manufacturing integration (i.e., train personnel in new design, methods, have manufacturing sign-off on design reviews, and restructure, e.g., use teams). Significantly, these firms also report a greater proportion of degreed manufacturing engineers. Not surprisingly, larger firms and business units were found to take longer to develop new products.

Suggested Citation

  • John E. Ettlie, 1995. "Product-Process Development Integration in Manufacturing," Management Science, INFORMS, vol. 41(7), pages 1224-1237, July.
    • Handle: RePEc:inm:ormnsc:v:41:y:1995:i:7:p:1224-1237
    DOI: 10.1287/mnsc.41.7.1224
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    Cited by:

    1. Fouad Ouardighi & Matan Shnaiderman & Federico Pasin, 2014. "Research and Development with Stock-Dependent Spillovers and Price Competition in a Duopoly," Journal of Optimization Theory and Applications, Springer, vol. 161(2), pages 626-647, May.
    2. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
    3. Aoki, Katsuki & Staeblein, Thomas, 2018. "Monozukuri capability and dynamic product variety: An analysis of the design-manufacturing interface at Japanese and German automakers," Technovation, Elsevier, vol. 70, pages 33-45.
    4. Heather Berry & Aseem Kaul, 2015. "Global Sourcing and Foreign Knowledge Seeking," Management Science, INFORMS, vol. 61(5), pages 1052-1071, May.
    5. Koufteros, Xenophon & Lu, Guanyi & Peters, Richard C. & Lai, Kee-hung & Wong, Christina W.Y. & Edwin Cheng, T.C., 2014. "Product development practices, manufacturing practices, and performance: A mediational perspective," International Journal of Production Economics, Elsevier, vol. 156(C), pages 83-97.
    6. Scott A. Shane & Karl T. Ulrich, 2004. "50th Anniversary Article: Technological Innovation, Product Development, and Entrepreneurship in Management Science," Management Science, INFORMS, vol. 50(2), pages 133-144, February.
    7. Hua Song & Sijie Chen & Anirban Ganguly, 2019. "Innovative Ecosystem In Enhancing Hi-Tech Sme Financing: Mediating Role Of Two Types Of Innovation Capabilities," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-36, April.
    8. Cantamessa, Marco & Valentini, Carlo, 2000. "Planning and managing manufacturing capacity when demand is subject to diffusion effects," International Journal of Production Economics, Elsevier, vol. 66(3), pages 227-240, July.
    9. Lai, Kee-hung & Wu, Sarah J. & Wong, Christina W.Y., 2013. "Did reverse logistics practices hit the triple bottom line of Chinese manufacturers?," International Journal of Production Economics, Elsevier, vol. 146(1), pages 106-117.
    10. Fouad El Ouardighi & Gustav Feichtinger & Gila E. Fruchter, 2018. "Accelerating the diffusion of innovations under mixed word of mouth through marketing–operations interaction," Annals of Operations Research, Springer, vol. 264(1), pages 435-458, May.
    11. Villanueva Orbaiz, María Luisa, 1998. "Innovation, marketing information sharing and new product success in the European insurance sector," DEE - Working Papers. Business Economics. WB 6539, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    12. Hullova, Dusana & Simms, Christopher Don & Trott, Paul & Laczko, Pavel, 2019. "Critical capabilities for effective management of complementarity between product and process innovation: Cases from the food and drink industry," Research Policy, Elsevier, vol. 48(1), pages 339-354.
    13. John V. Gray & Enno Siemsen & Gurneeta Vasudeva, 2015. "Colocation Still Matters: Conformance Quality and the Interdependence of R&D and Manufacturing in the Pharmaceutical Industry," Management Science, INFORMS, vol. 61(11), pages 2760-2781, November.
    14. You-Na Lee & John P. Walsh, 2012. "Intra-organizational integration and innovation: organizational structure, environmental contingency and R&D performance," ICER Working Papers 20-2011, ICER - International Centre for Economic Research.
    15. Annika Lorenz & Michael Raven & Knut Blind, 2019. "The role of standardization at the interface of product and process development in biotechnology," The Journal of Technology Transfer, Springer, vol. 44(4), pages 1097-1133, August.
    16. Heather Berry, 2023. "Diverse knowledge exploration and diffusion in MNCs," Strategic Management Journal, Wiley Blackwell, vol. 44(7), pages 1589-1615, July.
    17. Hong, Paul & Doll, William J. & Revilla, Elena & Nahm, Abraham Y., 2011. "Knowledge sharing and strategic fit in integrated product development proejcts: An empirical study," International Journal of Production Economics, Elsevier, vol. 132(2), pages 186-196, August.
    18. Sundar Bharadwaj & Anandhi Bharadwaj & Elliot Bendoly, 2007. "The Performance Effects of Complementarities Between Information Systems, Marketing, Manufacturing, and Supply Chain Processes," Information Systems Research, INFORMS, vol. 18(4), pages 437-453, December.
    19. Su, Hung-Chung & Chen, Yi-Su, 2013. "Unpacking the relationships between learning mechanisms, culture types, and plant performance," International Journal of Production Economics, Elsevier, vol. 146(2), pages 728-737.
    20. Mohan V. Tatikonda & Mitzi M. Montoya-Weiss, 2001. "Integrating Operations and Marketing Perspectives of Product Innovation: The Influence of Organizational Process Factors and Capabilities on Development Performance," Management Science, INFORMS, vol. 47(1), pages 151-172, January.
    21. Virpi Turkulainen & Morgan L. Swink, 2017. "Supply Chain Personnel as Knowledge Resources for Innovation—A Contingency View," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(3), pages 41-59, July.
    22. Mohit Goswami & Yash Daultani & M.K. Tiwari, 2017. "An integrated framework for product line design for modular products: product attribute and functionality-driven perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 55(13), pages 3862-3885, July.
    23. Puay Khoon Toh & Gautam Ahuja, 2022. "Integration and appropriability: A study of process and product components within a firm's innovation portfolio," Strategic Management Journal, Wiley Blackwell, vol. 43(6), pages 1075-1109, June.
    24. McQuater, R. E. & Peters, A. J. & Dale, B. G. & Spring, M. & Rogerson, J. H. & Rooney, E. M., 1998. "The management and organisational context of new product development: Diagnosis and self-assessment," International Journal of Production Economics, Elsevier, vol. 55(2), pages 121-131, July.

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