Product Development : The theory and its applicability in practice

Abstract: This paper is a qualitative research to understand how well the theoretical methods of product development are applied in practice. A comparison between the theory and methods the companies are using is done in order to get an insight of the current situation. Value analysis, Quality Function Deployment, Failure Mode and Effects Analysis, Design for Assembly, and Modular Function Deployment that is brought up in this thesis are all well-known methods in the theory which assist companies to achieve a higher degree and effectiveness with their development. These methods answer fundamental problems that may occur in every company, and touches on areas such as the economical perspectives and customer related inquiries. It also finds solutions on uncertainties that might arise during product development. After interviewing ABB, Scania and Atlas Copco, we learned that some of the theoretical methods were in fact utilized to a certain degree. However, there are instances where the enterprises establish their own principles to rationalize product development. After a thorough comparison made between the methods used by the companies and the theory, we discovered many similarities between them. The foundations of these methods are very much based on the existing theories. We concluded that even though the theoretical methods aren’t applicable to all situations, the fundamentals are widely accepted and the philosophies behind them are commonly applied in companies’ own methods. The theory does not only act as a backbone for effective product development but also serves as an important tool for further method customization suitable to the uniqueness of each enterprise. Lack of knowledge in the actual theories can therefore undermine the companies’ capability in achieving efficient methods which ultimately will only disfavor themselves in terms of time and money. Companies spend a lot of time to discover methods to facilitate their development processes. They can instead collaborate with academic institutes and universities to exchange information since theories already exist out there that are able to answer and solve most the companies’ current situation and their requirements. However, there are occasions in real life circumstances where things doesn’t necessary go as smooth as depicted in literatures and theories. Therefore a balance between practice and theory where they complement each other will yield the optimal outcome.