A model for exploration of factors affecting parallel research and development strategies

Abstract

Early stages of product development are critical to success of the final product. Decisions made in the early stages will affect the design choices available during the entire development cycle. This thesis examines two research and development strategies. One product development strategy is to make critical decisions as early as possible to manage costs and coordinate work. Making decisions early can help controls costs. Early decisions can also limit the potential value of the product. The value of decisions made at the beginning of the development cycle when the least is known about the problem and the potential solutions are most susceptible to uncertainty. An alternate approach is to employ a parallel research and development strategy. Multiple alternative designs are pursued as if they were the final choice. Decision makers can then make more informed choices for the design of their product. This approach has higher development costs. The net benefit of the project can be higher due to increases in quality and decreases in schedule. Understanding when to apply parallel research and development strategy is an important consideration for those facing uncertainty in their product development cycle.

(cont.) A systems dynamics model was used to illustrate how the intensity and commitment to a parallel research and development strategy affects the efficiency and effectiveness of product development. The model shows that the number of alternatives and the time alternatives are developed before one alternative is chosen are both important factors for effectiveness and efficiency. The model also shows that it is important to strive for variety in the alternatives added.