Comparing concurrent engineering approaches: set-based versus point-based

Abstract

This study compares, applying mathematical modeling, the economic results of the employment of two strategies of new product development management: Point-Based Concurrent Engineering which conducts the development through improvements from an unique initial concept and Set-Based Concurrent Engineering where the development process works in parallel from a set of initially viable concepts. Mathematical models were developed to compare the economic performance of new product projects with different technical uncertainties and business environment conditions. Time-to-market and risk analyses are also developed. The main result is the strategic regions mapping, defined by project and business environment conditions. Such mapping brings managerial implications because it determines the best strategy to be employed in any innovation, well-known the project and the business environment characteristics. The results show Set-Based as the most economic strategy to manage projects under the most unfavorable conditions besides presenting great superiority and robustness regarding the risk levels and time-to-market.