Multiproject strategy and sales growth: the benefits of rapid design transfer in new product development

Article Abstract:

A study was conducted to examine the effect of different product development strategies on sales growth. For this research, the focus is on multiproject strategy and management, which refers to policies and capabilities for internal technology transfer in new product development. Data were collected from 210 projects in the automobile industry from 1980 to 1991. A typology that categorizes product development strategies into four types was developed. The four types were new design, rapid or concurrent design transfer, sequential design transfer and design modification. Findings revealed that firms using the rapid design transfer strategy improves sales more than when they or their competition did not employ this strategy. The results imply that sales growth is influenced not only by technology sharing among multiple projects but also by the speed of technology leveraging.

Industrial project management, Project management, Product development, Strategic planning (Business), Sales management, Technology transfer

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Parallel sourcing and supplier performance in the Japanese automobile industry

Article Abstract:

American quality management consultants hold that long-term relationships, specific investments and sole sourcing provide Japanese automobile manufacturers the luxury of a high supplier performance. On the other hand, economic and management experts believe that a combination of these three practices would actually lead to a weakened supplier performance. However, a close inspection shows that the Japanese actually practice parallel sourcing. This method, a hybrid of sole sourcing and multiple sourcing, involves the use of multiple sole sources for each type of component. A transaction cost model demonstrates that parallel sourcing encourages competition among suppliers, thus increasing supplier performance. Moreover, the procedure simultaneously provides the benefits of sole sourcing, particularly lowered costs.

Corporations, Corporations, Japanese

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Supplier relations and management: a survey of Japanese, Japanese-transplant, and U.S. auto plants

Article Abstract:

Supplier management practices used by Japanese and American automobile manufacturers are compared. Data obtained from a questionnaire survey sent to purchasing and product development managers at Japanese, American, and Japanese-transplant automobile plants show that practices differ significantly. The results indicate that Japanese suppliers perform better in terms of quality and pricing of supplies. Suppliers to Japanese-managed auto plants in the US perform significantly better than suppliers to American auto plants. The superior supplier management performance of Japanese and Japanese-transplant automobile plants is traced to their emphasis on target pricing and cost reduction and their stable, long-term relationships with suppliers.

Motor vehicle parts and accessories, Automobile equipment and supplies industry, Automotive parts industry, Industrial management

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