BENCHMARK NEW PRODUCT DEVELOPMENT PROCESSES USING DEA-BASED MODULARIZED APPROACH

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1 BENCHMARK NEW PRODUCT DEVELOPMENT PROCESSES USING DEA-BASED MODULARIZED APPROACH Tzu-A Chiag, Migchi Uiversity o Techology, tachiag@mail.mit.edu.tw Amy J.C. Traey, Natioal Taiei Uiversity o Techology, traey@tut.edu.tw ad Natioal Tsig Hua Uiversity, traey@ie.thu.edu.tw We-Chih Che, Natioal Chiao Tug Uiversity, wechih@aculty.ctu.edu.tw ABSTRACT Develoig ew roducts eicietly comlyig with resource costraits is a key success actor i today s marketlace. However, uredictable icidets occur durig ew roduct develomet (NPD) rocesses, which ote cause resources ad schedule overrus. Traditioal roect maagemet tools lack o eiciet ad eective methods to solve these roblems ad challeges. This study alies the data evelomet aalysis (DEA) cocet to develo a ovel roect laig ad maagemet decisio suort methodology or NPD that ca allocate resources ecoomically ad resod uexected delays dyamically. This aer describes a mobile hoe NPD case study to demostrate the real-world alicatio. I the case study, the roosed aroach sigiicatly reduces NPD resource sedig o the o-critical activities ad otimally allocates the resource o the critical ath. The result comlies with time, budget ad resource costraits ad rovides roect maagers solid recommedatios or NPD executio imrovemet withi a roduct ortolio. Keywords: New Product Develomet, Data Evelomet Aalysis (DEA), Proect Plaig ad Maagemet INTRODUCTION Itroducig ew roducts o time withi resource costraits is a key to success i today s cometitive market lace. Thus, distributed ad collaborative roduct develomet aradigms are emerged cosiderig time-to-market ad cost eiciecy or the comlexity o moder roduct desig. However, uredictable icidets usually occur durig ew roduct develomet (NPD) rocesses, which cause resources ad schedule overrus. Covetioal roect laig methods, estimatig time, budgets ad resources o NPD activities, are ote based o roect maagers exertise ad subective udgmet. Alyig the subective cost-duratio relatioshi or each activity ad the PERT (Program evaluatio ad review techique)/cpm (Critical ath method) techique, the NPD roect schedule, budget ad the robability o meetig the deadlie are obtaied. However, the NPD roect maagers lack obective bechmarkig models to gai valuable isights ito the relatios betwee resource allocatios ad activity times i order to suort NPD egieers i the best collaborative ractices, esecially durig the laig ad executio hase. Durig the NPD laig hase, the roosed schedule may ot satisy the due day required by customers. Thus, the roect maagers eed to alter the la accordigly. I additio, durig the executio hase, the iitially roosed schedule may become ieasible due to the uexected delay o NPD activities. Thereore, modiicatio o the roect la, while the roect is beig executed, is eeded. However, traditioal roect maagemet tools caot rovide mechaisms to dyamically modiy NPD roects to avoid resources ad schedule overrus. This research is to develo a ovel roect laig ad maagemet decisio suort methodology to otimally allocate resources ad dyamically resose to uexected delays. This study develos a bechmarkig methodology to otimize a NPD rocess durig its liecycle. The liecycle o a NPD rocess is divided ito three hases, i.e., the laig, executio ad comletio-ad-review hases. I the laig ad executio hases, this research deies aalytical bechmarkig models ad creates the eedorward ad eed-back modiicatio mechaisms to otimize NPD rocesses. Whe the rocess is comleted, the relative ecoomical eiciecy o the NPD rocesses withi a roduct ortolio is evaluated ad reviewed usig data evelomet aalysis (DEA) aroach. The DEA results rovide NPD maagers cocrete ad quatiiable imrovemet suggestios. I order to demostrate the real-world alicatio, a mobile-hoe develomet roect sceario is used as a case study to illustrate the eectiveess o the methodology. LITERATURE REVIEW May ublished aers o NPD maagemet have ut orward a wide variety o models or NPD laig ad erormace evaluatio. By usig a VOL IX, No. 2, Issues i Iormatio Systems

2 simulatio model, Yag ad Sum [2] ivestigate the erormace o due date, resource allocatio ad activity schedulig rules i a multi roect eviromet. The results show whe due day ervousess is ot mitigated, irst i system irst served (FISFS) resource allocatio rule erorms better tha the due day sesitive resource allocatio rules. Sicotte ad Lagley [0] examie the eicacy o ive tyes o itegratio mechaisms or roect erormace i a samle o 2 R&D roects. This study shows the maagers adusted their use o horizotal structures, laig ad rocess seciicatio, ad iormal leadershi to roect ucertaity. I additio, itegratio mechaisms do ot ehace erormace i cotext o low ucertaity. I order to idetiy the key determiats that aect the roect erormace, artiicial eural etwork (ANN) techique is used to check whether these erormace metrics ca redict desig-build roect erormace [8]. Vadevoorde ad Vahoucke [] comare three dieret methods to orecast the duratio o a roect. By usig real-lie roect data, they id the laed value rate [] ad the eared duratio [7] are ureliable. Istead, the eared schedule method [6] seems to rovide reliable results through the roect liecycle. Pillai et al. [9] develo a ramework or a itegrated erormace idex ecomassig the etire R&D roect liecycle. The roect liecycle cosists o the roect selectio, executio ad imlemetatio hases. The key actors are idetiied i each hase ad itegrated through a ormula to derive a itegrated erormace idex. Accordig to Boer et al. [4], early ew roduct develomet teams ad uer maagemet ivolvemet i the settig o oeratioal cotrols, such as rocedures or moitorig the roect, was ositively associated with roect erormace. Atuahee-Gima et al. [2] idetiy that resosive ad roactive market orietatios have curviliear eects o roduct develomet erormace. A resosive market orietatio has a U-shaed relatioshi with NPD roect erormace. Azaro et al. [3] reset a multi-obective model or otimally allocatig the resources to the activities withi a roect. It is assumed that each activity time is a ideedet radom variable with the exoetial distributio. Although there are a lot o research eorts o NPD maagemet, ew studies cocerig NPD rocess adustmet are available. From a ractical ersective, the laig ad executio hases o a NPD rocess ote eeds to be modiied or achievig the goal o a NPD roect i a ucertai ad chagig eviromet. Hece, NPD roect maagers eed a aroach to rovide quatitative suggestios or otimizig NPD rocesses throughout the etire rocess liecycle. This research ills the ga to develo decisio suortig models ad the modiicatio mechaisms to ehace the eiciecy o NPD rocesses. THE METHODOLOGY FOR NPD PROCESS OPTIMIZATION Figure shows the ramework o the modularized bechmarkig methodology or NPD rocess otimizatio. There are icludes six modules ito the ramework, i.e., () the rocess modiicatio, (2) the estimatio o roect comletio time, (3) the resource allocatio give most-likely time, (4) the time estimatio give resource allocatio, (5) the time estimatio with added resource allocatio, ad (6) the relative ecoomical eiciecy or the NPD rocesses withi a roduct ortolio. Figure. The ramework o the bechmarkig-based methodology or NPD rocess otimizatio. I the laig hase, the eed-orward modiicatio mechaism (FFMM), irst, alies the module o roect comletio time estimatio to calculate the robability o roect time set by customer. I the estimatio satisies the customer s requiremet, the FFMM, the, emloys the resource allocatio give most-likely time to bechmark ad adust all resource allocatios o activities amog the NPD rocesses. O the other had, i the time estimatio caot satisy the customer s requiremet, the FFMM utilizes the modules o the time estimatio give ixed resource allocatio ad added resource allocatio to reduce the exected NPD rocess time. Durig the executio hase, i a certai NPD activity delays, the eed-back modiicatio mechaism (FBMM) is activated to assess whether the subsequet NPD activities eed to be modiied by alyig the time estimatio with added resource allocatio. Estimatio o Proect Comletio Time I this uctioal module, the PERT/CPM aroach is adoted to calculate the exected value ad variace o the NPD comletio time ad the robability o meetig the seciied roect deadlie. First o all, a roect maager deies a roect VOL IX, No. 2, Issues i Iormatio Systems

3 etwork diagram based o the logical sequece o NPD activities. The, the NPD maager ad articiats oitly deie the three time estimates o the otimistic time (o), the most likely time (m) ad the essimistic (worst) time () o each activity resectively uder dieret executive coditios. The exected value ad variace o a NPD activity time ca be obtaied by usig Equatio () ad Equatio (2). This research shortes the exected activity time by adustig the most likely time. o + 4m + μ = () o 6 σ = (2) I order to calculate the exected value ad variace o each ath withi a roect etwork, all activity times o a NPD rocess are assumed as statistically ideedet variables. The exected time o a ath are give by summig u the exected activity duratios ( μ i ) alog the ath. Ad, a ath with the largest exected ath time, i.e., the exected roect comletio time ( μ P ), is called the critical ath. Furthermore, the variace o a roect comletio 2 P time, i.e., σ, is the sum o variaces o the activity times ( σ ), o the critical ath. Accordig to the 2 i cetral limit theorem, the robability distributio o a sum o NPD activity times o the critical ath is aroximately ormal distributio. I there are more tha ive activities o the critical ath, the distributio o the roect comletio time yields a reasoable aroximatio [5]. Hece, the robability o meetig the seciied roect deadlie d ca be obtaied usig Equatio (3). P ( T d ) = P( Z ( d μ ) σ ) (3) The Process Modiicatio P The NPD rocess modiicatio is comosed o the FFMM ad FBMM. Figure 2 dislays the FFMM, which is beig alied durig the laig hase. First, the FFMM orecasts the time erormace o a NPD rocess, i.e., the robability o the NPD roect comleted o time. I the time erormace ca satisy the customer s requiremet, the FFMM aalyzes the best easibility o reducig NPD activity resources uder the comletio time costrait. Hece, the FFMM erorms the best resource allocatios give most-likely times or activities withi a NPD rocess. O the other had, i the time P erormace caot satisy the customer s requiremet, the FFMM calculates the best easibility o decreasig the activity times o the critical ath without icurrig additioal resources usig the module o time estimate with ixed resource allocatio. Oce the time erormace achieves the requiremet, the FFMM alies the module o the resource allocatio give most-likely time to aalyze the easibility o decreasig resource allocatios o other NPD activities uder the rocess time erormace without beig ilueced. I the time erormace o a NPD rocess caot be achieved usig the time estimatio give resource allocatio, the FFMM aalyzes the easibility o icreasig resources o the critical ath to shorte the exected rocess comletio time. I this case, the FFMM utilizes the time estimatio with added resource allocatio to assess the time-cost erormace o all activities o the critical ath. I o easible solutio ca be oud, the roect maager eeds to cosult with the customer i extedig the NPD deadlie. Figure 2. The rocess architecture o the FFMM Figure 3 shows the rocess architecture o the FBMM. I executio hase, whe the FBMM detects a NPD activity delays, a roect maager must idetiy the delay roblem(s). I the delay is due to resource shortages, the roect maager ad the NPD egieers re-estimate the quatities o resource requiremets ad coirm whether these requiremets violate resource costraits. I these resource requiremets violate the resource costraits, the NPD activity may exted the activity time. I the delay reaso is the techology bottleeck, the roect maager eeds to assess the easibility o outsourcig the critical techology. I it is t easible, the NPD VOL IX, No. 2, Issues i Iormatio Systems

4 roect may be termiated. I it is easible, the roect maager re-estimates the activity time ad the FBMM orecasts the NPD rocess time erormace. I the rocess time erormace caot achieve the aim o a NPD roect schedule, the FBMM aalyzes the easibility o adustig the subsequet NPD rocess usig the time estimatio o addig resource allocatio. I it is t easible, the roect maager eeds to cosult with the customer about chagig the roect time erormace. Through emloyig the FFMM ad FBMM, a NPD rocess ca be otimally ad quickly modiied i the laig hase ad executio hase to avoid uexected delays. eiciecy rotier. The otimal resource allocatio model o ixed most-likely-time aalyzes the iutorieted techical eiciecy o the oit (a ew activity ), deoted by θ. Because the oit does ot locate at the eiciecy rotier, the iut-orieted techical eiciecy is θ <. The oit ca be roected horizotally oto the oit * o the eiciecy rotier. I this istace, the time (t ) o the activity remais uchaged ad the aggregated resource iut is reduced Δ whe the rotier (*) is reached. Δ Figure 4. The DEA cocet or the otimal resource allocatio model o ixed most-likely-time Resource allocatio give the most likely time is rereseted as Figure 3. The rocess architecture o the BMM Resource Allocatio uder the Most Likely Comletio Time This model ivestigates the easibility o reducig the NPD resource allocatio give the most likely time o roect comletio. Figure 4 shows the methodological cocet or the otimal resource allocatio model give the most likely time. I Figure 4, the horizotal axis reresets the aggregate resource iut. The vertical axis reresets the activity time. Poits a, b, c, d ad e rereset bechmarkig NPV activities, which are similar to the NPD activity. These bechmarkig NPD activities ca be obtaied rom the historical database o the worklow maagemet system by emloyig the otimal resource allocatio model o ixed mostlikely-time. The iut-orieted techical eiciecy o these bechmarkig oits is equal to to orm the Mi θ ε s e E (4) s.t. λ t = = t e + hs m m M, (=, 2,,,, ), λ i + s = θ i e E, = e e λ ih + hs = θ ih m M, = m m λ =, λ 0, = e m where θ is the iut-techical eiciecy o the NPD activity, t is the time o the activity, t is the most-likely-time o the ew activity, i e is the iut time o the acility e or the activity, ih m is the iut time o the huma resource m or the activity, s e ad hs m are slack variables. VOL IX, No. 2, Issues i Iormatio Systems

5 I θ <, the it reresets the acility ad huma iuts o the activity ca be reduced without beig iluecig the most-likely-time. Equatio (5) ad Equatio (6) show the decreasig iut quatities o acilities ad huma resources resectively. Δie = ie θ (5) Δihm = ihm θ (6) * * ( i s ) e * * ( ih hs ) m Time Estimatio with Fixed Resource Allocatio This model aalyzes the easibility to shorte a NPD roect time without addig resources. Figure 5 dislays the methodological cocet o time estimatio with ixed resource allocatio. I Figure 5, oits a, b, c, d ad e rereset the bechmarkig activities to orm the eiciecy rotier. Because the outut-orieted techological eiciecy o the activity ( φ ) is small tha, the oit ca be roected vertically oto the oit * o the eiciecy rotier. I this case, the aggregated resource iut maitais the same amout ad the activity time ca be reduced Δ T. m ΔT Figure 5. The DEA cocet o time estimatio with ixed resource allocatio The outut-orieted techical eiciecy o the activity is obtaied usig the ollowig model: Mi φ (7) s.t. λ t N = φ t λ i i e E, = N e e λ ih ih m M, = m m, (=, 2,,,, ), N λ =, = where φ is the outut-orieted techical eiciecy o the ew activity, t is the time o the activity, t is the most-likely-time o the ew activity, i e is the iut time o the acility e or the activity, ih m is the iut time o the huma resource m or the activity. I φ <, it shows the time o the activity ca be reduced without addig the resource iuts o the activity. The decreasig time o the activity, Δ T, ca be obtaied by usig Equatio (8). Δ t (8) = t * - t φ Time Estimatio with Added Resource Allocatio Whe the obective o the roect time erormace caot be achieved by emloyig the time estimatio with ixed resource allocatio, this research urther aalyzes the easibility o shorteig NPD activity times o the critical ath through addig activity resources. As show i Figure 5, the oit * reresets the NPD activity o the critical ath. I order to shorte the most likely time o the activity, the oit * moves dow alog the eiciecy rotier ad the we ca id a bechmarkig reerece oit c. The, we urther aalyze the cost-time erormace (CTP) o the activity. First, we calculate the decreasig activity time ad the icreasig resource quatities o the activity, ad the the roect maager coirms whether the icreasig resource quatities violate the resource costraits. I these resource requiremets do ot violate the resource limits, we ca obtai the CTP value usig Equatio (9). Δie cre + Δihm chm e E m M ct =, Δt (9) where Δ t is the decreasig time o the activity, Δ i e is the icreasig iut time o the acility e, Δ ih m is the icreasig iut time o the huma resource m, VOL IX, No. 2, Issues i Iormatio Systems

6 c r e is the iut cost o the acility e er uit time, c h m is the iut cost o the huma resource m er uit time. By usig the same method, we ca get the CTP values o other activities o the critical ath ad the select the otimal CTP activity ad icrease its resource allocatio. I the CTP value o the activity is otimal ad the roect comletio time erormace caot be achieved by icreasig resources o the activity, we must move dow alog the eiciecy rotier agai to look or the ext bechmarkig oit ad udate its CTP value. The the roect maager selects the best CTP value amog the critical-ath activities to shorte the most like time o a critical ath activity to imrove the roect time erormace. The Relative Ecoomical Eiciecy or NPD Processes withi a Product Portolio The comletio-ad-review hase aalyzes the relative ecoomical eiciecy o the market or the NPD rocesses with a roduct ortolio by emloyig the DEA aroach. The outut o the relative ecoomical eiciecy uder variable returs to scale (VRS) is measured by the et reset value (NPV). O the other had, the iuts o this model iclude all kids o acilities ad huma resources. Each NPD rocess corresods to a NPD roect. The DEA aroach requires the umber o NPD roects (i.e., the decisio-makig uits, DMUs) is at least twice times as much as the total umbers o iut ad outut variables. Because the umber o NPD roects withi a roduct ortolio may ot be suiciet, this research aggregates the idividual iut quatities ito a comosite iut by usig uit costs o resources. We also emloy the outut orieted VRS-DEA aroach to obtai the ecoomical eiciecies or the NPD roects as show i Equatio (0). Max γ (0) k s.t λ v vs γ v, =, Λ, k, Λ, k = = k k [( ti c ) ( tih hc )] ( ti c ) + ( tih hc ) λ + e λ =, λ 0, = e m m [ ] where γ k is the outut-orieted relative ecoomical eiciecy o the roect k with a roduct ortolio, ek e mk m ti e is the total iut time o the acility e o the roect, tih m is the total iut time o the huma resource m o the roect, c e is the cost o the acility e er uit time, hc m is the cost o huma resource m er uit time, v is the et reset reveue o the NPD roect. From this aalytical mode, we ca get the oututorieted relative ecoomical eiciecy o the kth NPD roect with a roduct ortolio. I / γ k <, the it reresets the kth NPD roect should icrease the NPV amout Δ vk. By usig Equatio (), the roect maager ca acquire the quatitative imrovemet suggestio. Δvk = γ k vk vk () CASE STUDY The DEA models are alied to the music mobilehoe (MMP) NPD roect to demostrate the methodology at work. Accordig to a NPD roect liecycle, the MMP roect evaluatio is divided ito three hases, i.e., the laig hase, the executio hase ad the comletio-ad-review hase. The ollowig subsectios deict the details o imlemetig the DEA bechmarkig methodology or otimizig the MMP develomet rocess. The Plaig Phase o a MMP Develomet Process Figure 6 shows the etwork diagram o the MMP s NPD rocess. I order to evaluate the comletio time erormace o a MMP roect, the roect maager ad NPD egieers rovide the otimistic, essimistic ad most likely time estimatios or each activity withi the MMP develomet rocess. By usig Equatio () ad (2), we ca obtai the exected value ad variace o each MMP develomet activity time as show i Table. I this case, we ca uderstad that the etwork diagram or the MMP develomet roect has our aths, i.e., A-B-C-E-F-G-M-O, A-D-E-F-G-M-O, A- H-I-J-M-O, ad A-K-L-M-O. Through emloyig Equatio (3) ad Equatio (4), this research calculates the exected value ad variace o each ath time or the MMP develomet rocess as show i Table 2. The logest exected time ath A- D-E-F-G-M-O is the critical ath. Thus, the exected VOL IX, No. 2, Issues i Iormatio Systems

7 MMP roect time is aroximately the sum o the exected activity time o the critical ath, i.e., days. Furthermore, the variace o the MMP roect time is obtaied by usig Equatio (4). Execute system aalysis ad desig K Develo the sotware L Desig ad veriy the circuit Execute SMT rocesses Start a MMP roect A Desig ad review the aearace o a MMP H Veriy the J atea model I D E F G M N O B Make ad review a mocku Desig the C mechaisms Veriy the mechaism desigs Develo ad test molds Mauacture ad isect comoets Itegrate ad test the MMP system Assemble a MMP Fiish a MMP roect Figure 6. The etwork diagram o the MMP develomet rocess Table. The MMP activity time estimatios, exected values ad variaces Activity code Time estimates Exected Time o m time variace B C D E F G H I J K L M N Table 2. The exected value ad variace o each ath time or the MMP develomet rocess Path Exected ath time Variace o ath time A B C E F G M O A D E F G M O A H I J M O A K L M O Whe a iitial MMP develomet rocess laig is comleted, the FFMM is aimated to estimate the robability that the comletio time o this NPD roect meets the deadlie by emloyig Equatio (5). I this case, the customer requires that the robability o meetig the MMP roect time 200 days is However, the aim o the MMP roect caot be achieved because the robability o meetig the deadlie is oly Owig the mature mauacturig techology ad variace o mauacturig time rom egieerig desig chages, this research does t aalyze the mauacturig activities amog the MMP develomet roect or shorteig the mauacturig time or decreasig resource allocatio. Firstly, the FFMM aalyzes the easibility o reducig the activity times o the critical ath without addig resources by emloyig the time estimatio with ixed resource allocatio. Table 3 dislays the outut-orieted techological eiciecy o mechaism desig (D), mechaism veriicatio (E), the develomet ad test o the molds (F), ad the itegratio ad test o the MMP system (M). Excet the activity o mechaism veriicatio, the outut orieted techology eiciecy o other activities is less tha oe. Thereore, the FFMM emloys Equatio (5) to otimally shorte the mostlikely-times o these activities without addig resources (D: 69.25; F: 55.2; ad M: 34.8 days). As a result o the most likely time adustmets o the critical ath, the FFMM re-evaluates the comletio time erormace o the MMP by usig Equatio (3), (4) ad (5). The exected roect time ad the robability o meetig the deadlie are adusted to days ad resectively. Although the robability o meetig the schedule is a sigiicat imrovemet, it caot achieve the time-erormace obective o the MMP roect. Thus, the FFMM urther aalyzes the easibility o icreasig resources or shorteig the critical-ath time. Through usig the time estimatio o addig resource allocatio, the FFMM calculates the CTP values o critical-ath activities i order to seek the otimum way to decrease the critical-ath time. This study uses the develomet ad test o the molds as a examle to exlai how to gai the CTP value. From VOL IX, No. 2, Issues i Iormatio Systems

8 Table 3, we ca id the bechmarkig activities that their eiciecies are equal to ad their activity times are less tha the modiied most-likely-time 55.2 days or the develomet ad test o the molds. Their activity times are 5 days, 47 days ad 40 days resectively. Owig the iut resources o the 5 days are less tha 47 days ad 40 days, this study selects the 5 days as a reerece oit. We ca use the same method to id the bechmarkig reerece oits o the other critical-ath activities. Table 4 dislays the time ad iut resources o the bechmarkig reerece oits o the critical ath activities. The, we ca calculate the icreasig resource quatities ad decreasig days o the critical ath activities as show i Table 4, ad the roect maager checks whether these resource requiremets violate the resource costraits. By emloyig Equatio (0), we ca acquire the CTP values o critical-ath activities (D: 393; E: 2450; F: 560; M:9285). The CTP value o the mechaism veriicatio is the otimal. Hece, the FFMM icreases the activity resources o the mechaism veriicatio, ad re-assess the comletio time erormace o the MMP roect. The exected roect time ad the robability o meetig the due day are chaged ito 85.8 days ad resectively. This robability caot satisy the service level o 0.98 give by the customer. Because the mechaism-veriicatio activity has o other bechmarkig activities, the FMM selects the best CTP, i.e., develomet ad test o the molds, amog other critical ath activities. The robability o meetig the roect time 200 days is chaged ito This robability ca satisy the customer s requiremet. Table 3. The outut-orieted techological eiciecy o o D, E, F, ad M Activity code D E F M Mechaism Egieer CAD CAE Mold low aalysis 280 alicatio Testig egieer 560 Activity time Eiciecy (Resource iut uit: hours; activity time uit: days) Table 4. Icreasig resource quatities ad decreasig days o the critical-ath activities Activity code D E F M Mechaism egieer CAD CAE 30 Mold low aalysis 78 alicatio Testig egieer 208 Decreasig time (Resource iut uit: hours; activity time uit: days) The FFMM aalyzes the easibility o decreasig the resource allocatios o o-critical ath activities uder time erormace without beig ilueced. Table 5 shows the iut-orieted eiciecies o ocritical ath activities. From the aalytical results, we ca see the eiciecies o the desig ad veriicatio o the circuit, the veriicatio o the atea module, ad the system aalysis ad desig are less tha. By emloyig resource allocatio give ixed mostlikely-time, the FFMM adusts resource allocatios o these activities as show i Table 6. Fially, the FFMM achieves the MMP develomet rocess otimizatio i the laig hase. Table 5. The iut-orieted eiciecies o ocritical ath activities Activity code B H J K L ID egieer 80 CAD 72 Electroics 2472 egieer Circuit desig 2282 sotware Radio requecy 300 egieer Radio requecy 50 lab Sotware egieer System 820 develomet sotware Activity time Eiciecy (Resource iut uit: hours; activity time uit: days) Table 6. The otimal resource allocatios o ocritical ath activities Activity code H J K Electroics egieer 2274 Circuit desig sotware 2099 Radio requecy egieer 235 Radio requecy lab 000 Sotware egieer 720 (Resource iut uit: hours) The Executio Phase o a MMP Develomet Process VOL IX, No. 2, Issues i Iormatio Systems

9 I executio hase, the FBMM detects the delays o develomet ad test o the molds o the MMP roect. The roect maager decides to maitai the resource allocatio ad modiy the three time estimates or this activity as show i Table 7. The robability o meetig the deadlie is chaged ito Hece, the FBMM is activated to adust the ollowig activities o the MMP roect. Because the mauacture ad isectio o comoets ad the MMP assembly belog to mauacturig activities, the oly itegratio ad test o the system ca be altered. By icreasig the workig time 208 hours o testig egieers, the most-likely-time o the itegratio ad test o the system ad the robability o meetig the roect schedule are chaged ito 32 days ad resectively. Thus, this robability ca satisy the customer s requiremet. Table 7. The modiied three time estimates or the develomet ad test o the molds Activity code o m F (Uit: days) The Comletio-ad-review Phase o a MMP Develomet Process This hase evaluates the erormace o NPD rocesses with a roduct ortolio. This roduct ortolio icludes the music mobile-hoe smart mobile-hoe, ad the multimedia mobile-hoe. Because the roduct liecycle o most mobile-hoes are oe year, this research cosiders the NPV durig the irst year to be the outut value o a mobile-hoe, ad trasorms the resource iuts ito the caital iut. We use the MMP roect as a examle. Table 8 shows the iut resources o the MMP roect ad the uit cost o each resource. The, the caital iut o the MMP roect ca be acquired. Table 8. The iut resources o the MMP roect The iut resources o Iut The cost o the MMP roect time er uit time CAD CAE Mold low aalysis alicatio Circuit desig sotware Radio requecy lab System develomet sotware ID Egieer Mechaism egieer Electroics egieer Radio requecy egieer Sotware egieer Testig egieer (Resource iut uit: hours; the cost o er uit time: NT dollars) By emloyig Equatio () ad (3), we ca obtai the erormace assessmet values o these ew mobile-hoe develomet roects as show i Table 9. Because the eiciecies o the MMP roect ad the smart mobile hoe are less tha oe, this research urther aalyzes ad rovides the imrovemet directios by usig Equatio (2). From the outut-orieted eiciecy viewoit, the multimedia mobile hoe ad the smart mobile hoe should icrease NT $ 32 millio ad 23 millio resectively. Table 9. The oututs, iuts ad eiciecies o all mobile hoe develomet roects withi a roduct ortolio NPD Proect Outut Iut Perormace evaluatio Music mobile-hoe Multimedia mobile-hoe Smart mobile-hoe (Uit: NT$ 0,000) DISCUSSION Through the case study o this aer, oe will realize the NPD laig ad maagemet based o subective udgmet ca be misleadig. Cosequetly, this aer utilizes the quatiiable aroach to bechmark NPD activities ad idetiy the relatios betwee their activity times ad resources so as to reasoably adust the NPD time ad resource allocatio. From the aalytical results o this case study, it shows sigiicat modiicatios by comarig the maagers udgmet ad the modularized aroach reseted i the aer. Moreover, this aer rovides the modiicatio mechaisms to assist roect maagers i laig ad cotrollig a NPD rocess i laig ad executio hases. Fially, i the comletio-adreview hase, this research uses the BCC-DEA aroach to rovide NPD roect maagers with the valuable imrovemet suggestios. CONCLUSION VOL IX, No. 2, Issues i Iormatio Systems

10 The erormace evaluatio o NPD rocesses lays a crucial role to bechmark NPD roects withi a R&D comay. Curret roect maagemet solutios, mostly ocusig o the laig ad comletio hases o NPDs, caot utilize the assessmet results to urther aalyze the easibility o NPD rocess imrovemet ad to rovide cosistet ad quatitative NPD decisio suorts. From the etire rocess liecycle oit o view, this research develos a ovel DEA bechmarkig method, which cosists o modiicatio mechaisms to otimize NPD rocesses ad avoid uexected delays. By usig the methodology to a actual mobile hoe (MMP) develomet, this research veriies that the aroach ca be adoted to ractical alicatios with sigiicat beeits to ew roduct develomet ad bechmarkig. ACKNOWLEDGEMENT This research is artially suorted by the Natioal Sciece Coucil ad the Idustrial Techology Research Istitute i Taiwa. REFERENCES. Abari, F. (2003). Eared value method ad extesios. Proect Maagemet Joural, 34, Atuahee-Gima, K., Slater, S. F., & Olso, E. M. (2005). The cotiget value o resosive ad roactive market orietatios or ew roduct rogram erormace. The Joural o Product Iovatio Maagemet, 22, Azaro, A., Katagiri, H., Sakawa, M., Kato, K., & Memariai, A. (2006). A multi-obective resource allocatio roblem i PERT etworks. Euroea Joural o Oeratioal Research, 72, Boer, J. M., Ruekert, R. W., & Walker, O. C. (2002). Uer maagemet cotrol o ew roduct develomet roects ad roect erormace. The Joural o Product Iovatio Maagemet, 9, Hillier, S. F., & Lieberma, J. G. (995). Itroductio to Oeratios Research, New York, McGraw-Hill. 6. Like, W. (2003). Schedule is dieret. The Measurable News, 3, Jacob, D. (2003). Forecastig roect schedule comletio with eared value metrics. The Measurable News,, Lig, Y. Y. F., & Liu, M. (2004). Usig eural etwork to redict erormace o desig-build roects i Sigaore. Buildig ad Eviromet, 39, Pillai, A., Sivathau, J. A., & Rao, K. S. (2002). Perormace measuremet o R&D roects i a multi-roect, cocurret egieerig eviromet. Iteratioal Joural o Proect Maagemet, 20, Sicotte, H., & Lagley, A. (2000). Itegratio mechaisms ad R&D roect erormace. Joural o Egieerig ad Techology Maagemet, 7, Vadevoorde, S., & Vahoucke, M. (2006). A comariso o dieret roect duratio orecastig methods usig eared value metrics. Iteratioal Joural o Proect Maagemet, 24, Yag, K. K., & Sum, C. -C. (997). A evaluatio o due date, resource allocatio, roect release, ad activity schedulig rules i a multiroect eviromet. Euroea Joural o Oeratioal Research, 03, VOL IX, No. 2, Issues i Iormatio Systems