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    Cost targets and time pressure during new product development

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    Publication type
    Vlerick strategic journal article
    Author
    Everaert, Patricia
    Bruggeman, Werner
    Publication Year
    2002
    Journal
    International Journal of Operations and Production Management
    Publication Volume
    22
    Publication Issue
    12
    Publication Begin page
    1339
    Publication End page
    1353
    
    Metadata
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    Abstract
    Investigates the impact of using cost targets during new product development (NPD), in terms of design quality, product cost and development time. An NPD environment with cost targets is compared with an NPD environment where design engineers receive no specific cost targets, but are expected to "minimize" the cost level of future products. The impact of cost targets versus no-cost targets is investigated in combination with high/low time pressure. The 2*2 factorial design was tested in a laboratory experiment that simulated a real design process, with customers asking for the highest design quality. The results demonstrate that cost targets during NPD lead to lower-cost new products, while not impairing design quality or development time. However, under high time pressure, cost targets lead design engineers to work longer on the design, without a corresponding cost decrease.
    Keyword
    Innovation Management
    Knowledge Domain/Industry
    Innovation Management
    URI
    http://hdl.handle.net/20.500.12127/829
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