Simulation based product development and competitiveness : How does a simulation based product development affect a company’s overall future competitiveness?

Abstract: The gradually increasing competition that occurs in mature markets, pushes the companies to consider new ways of competing. The more mature the market becomes the higher level of competitive fulfillment and edge is needed. E.g. for Scania the dimension high quality was until now considered a competitive advantage, but is currently evolving towards a dimension that is necessary to fulfill to even act within the market. Thus, companies such as Scania have to push their limits everywhere possible across their organization. One way to push the limits of R&D and product development (PD) is, based on this thesis and other work, implementing a simulation based product development (SBPD) process. The aim of this thesis has been, by applying a quality function deployment (QFD) model, to show the influence a SBPD process can have on increased competitiveness. By combining published literature within the field with empirical results mostly gained from interviews, nine components representing a SBPD process could be found. These components were characterized in the following categories: IT-infrastructure, design, model & test, and organizational. Depending on the level of fulfillment of these components the SBPD process is more or less implemented within the company. The two components that are considered the most important for Scania in terms of both increased competitiveness and a possible transition towards a SBPD process are Virtual representa-tion of the product and the process throughout the whole PD process and A model driven/model based approach. The work of this thesis has also shown, in correlations with previous published literature, that a SBPD process can significantly decrease the lead-time and cost of development, and at the same time increase the knowledge about the product and the process. The research has also shown that a SBPD process can considerably improve both the internal and the external collaboration. However attaining such a process where these competitive advantages can be gained affects the whole organization, the way development is performed and also the way resources are used. A fully implemented SBPD process has been shown to positively impact the following competitive dimensions; Frequency of product introductions, Lead-time of development, PD process flexibility, Degree of innovation, Customization of the offer, Collaboration with internal and external partners, Knowledge about products and processes, R&D cost, manufacturing cost, Focus on customers operational economics, Product quality, Product safety and Focus on environmental sustainability of the product & the processes. But, to get a positive impact on all these dimensions the components representing a SBPD process must be implemented and applied. Furthermore, this thesis also provides a framework for other companies to evaluate the impact a SBPD process can have on their competitiveness. The analysis model aims to guide companies that want to adopt a SBPD process. The framework can indicate how a SBPD process would impact the firm's competitive strategy. But also to provide guidance to which components that would be more important to implement in order to reach a competitive SBPD process.