Today, three conditions are crucial for a company to be competitive on the market: quality, reduced time and low costs for the development of new products. The paper shows how companies developing new products (NPD) for the market can successfully implement concurrent engineering as an improvement of project management, in order to reduce product development time and costs and to ensure the quality expected by customers. The methodology presented in this paper is based on three main pillars of knowledge: project management, teamwork and concurrent engineering. The methodology provides a step-by-step guideline for the introduction of concurrent engineering in a company. This paper also presents the results of 10 Slovenian companies where this methodology has been tested on 20 pilot projects. The results show that managed projects upgraded with the principles of concurrent engineering lead to cost reduction, shorter development time and fewer discrepancies.