Simulation of new product development and engineering changes

Purpose – The purpose of this paper is to investigate the interactions between new product development (NPD) and engineering change management (ECM) processes in terms of their impact on organizational performance. Design/methodology/approach – A system dynamics model of the NPD and ECM processes within an organization has been built and simulated for a range of parameter values to investigate the interactions between the two processes. Findings – The effect of various parameters on the lead‐time of the NPD process varies with different process environments. No single process management policy is advantageous for most if not all process operating conditions, thus it is important to change the critical parameters of the process every time. Research limitations/implications – The accuracy of the estimated effect of parameters on the lead‐time depends on the accuracy of estimated parameter values. Practical implications – The insights developed from the results would be useful for managers in planning their process management policies under various circumstances. Originality/value – The study of interactions between the ECM and NPD processes has been scarce. This research would be very helpful to managers who plan the process managing strategies given various circumstances such as limited resources.