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Front-Loading Problem-Solving in Co-Development : Managing the Contractual, Organizational and Cognitive Dimensions

Author

Listed:
  • Gilles Garel

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

  • Christophe Midler

    (CRG - Centre de recherche en gestion - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

Abstract

Front-loading " problem-solving is one of the major strategies to reduce development costs and development lead time. In co-development situations, the implementation of such methodologies rises specific questions, due to the difficult partition in responsabilities and skills between the car manufacturer and the supplier, especially when customer and supplier contributions cannot be clearly interfaced in a " black-box sourcing " relation. This results in a difficult and permanent debate about design modifications. The article analyses such a co-development situation in the case of a car manufacturer and its die design and engineering suppliers. The case illustrate how to combine organizational integration (i.e. co-localization, shared development methodologies) with new economic contracting rules which create front-loading problem-solving incentives for the two partners. We compare the economic outcomes of a traditional process with a co-developped project, from the viewpoint of both the customer and the suppliers. The study demonstrates how co-development played a major role in reducing the number and cost of modifications for the customer. The benefits which suppliers can earn depend on their ability to involve in the project in terms of design and engineering capacity at an early stage. These results generate theoretical outputs which bridge the gap between incentive and contract theories on one side, and cognitive and learning fields on the other.

Suggested Citation

  • Gilles Garel & Christophe Midler, 2001. "Front-Loading Problem-Solving in Co-Development : Managing the Contractual, Organizational and Cognitive Dimensions," Post-Print hal-00262521, HAL.
    • Handle: RePEc:hal:journl:hal-00262521
    Note: View the original document on HAL open archive server: https://hal.science/hal-00262521
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    References listed on IDEAS

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    1. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    2. Michael A. Cusumano & Akira Takeishi, 1991. "Supplier relations and management: A survey of Japanese, Japanese‐transplant, and U.S. auto plants," Strategic Management Journal, Wiley Blackwell, vol. 12(8), pages 563-588, November.
    3. Rolf Lundin & Christophe Midler, 1998. "Projects as Arenas for Renewal and Learning Processes," Post-Print hal-00262925, HAL.
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    Cited by:

    1. Pascal Philippart, 2005. "La dialogique contrat-confiance dans la gestion des alliances interentreprises:une illustration dans l’industrie automobile," Revue Finance Contrôle Stratégie, revues.org, vol. 8(4), pages 177-203, December.
    2. Olivier Saulpic & Jean-Pierre Ponssard, 2008. "Les systèmes de pilotage : une relecture critique inspirée des travaux de Simons," Post-Print halshs-00525975, HAL.
    3. Mahdieh Sabaghpour Azarian & Abdul Rahman Ahmad Dahlan, 2013. "Effectiveness of Knowledge Management in Achieving Success in Malaysian Government Agencies: A Literature Review," Information Management and Business Review, AMH International, vol. 5(7), pages 324-330.

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