Exploring the Meaning of Success in Outsourced Product Development

Author(s):  
William J. Palm ◽  
Daniel E. Whitney

Research on outsourced product development has focused primarily on the motives behind firms’ decisions to outsource, with less attention paid to the outcomes of those decisions. The few existing academic studies have reported high failure rates, but there is little consensus as to what is meant by “project success” and “failure” and some do not define success at all. Such ambiguity makes comparisons difficult and hinders explanation of observed variation in project outcomes. This paper explores the many meanings of project success in outsourced product development, based on in-depth interviews of thirty design consultants and clients. After reviewing the merits and limitations of each metric, we propose that the client’s willingness to recommend the consultant may be a suitable outcome variable for assessing project outcomes and comparing success rates across diverse projects, companies, and industries. We present preliminary data that suggests client willingness to recommend varies widely and is multimodal in distribution. Finally, we identify several commonly encountered failure modes, i.e., sequences of events that generate discrepancies between client expectations and project deliverables, thereby producing client dissatisfaction.

Author(s):  
Carina Beste ◽  
Torgeir Welo ◽  
Nils O. E. Olsson

Abstract In the execution of product development projects, deviation in time, budget and quality must be avoided. The expectations on these outcomes are high, especially in commodity-type projects, where most of the project content is assumed known upfront. On the other hand, increasingly complex project environments face constantly changes, where shift in scope is more the rule than the exception. In this study, we cluster factors assumed pushing the project boundaries of exploration in terms of innovation, complexity and newness. We pose an initial hypothesis that dealing with unplanned changes, or ‘newness’, has an overall negative outcome on project outcomes, despite the underlying intentions. It is also hypothesized that learning capabilities of the product development team is a major factor for successfully dealing with the dynamics of newness. To test both hypothesizes, we first developed and executed a survey involving 10 manufacturing companies. The participants were asked to rate 25 statements related to innovation, complexity and newness, and their perceived impact on overall project success. The results show a clearly negative correlation between successful projects and newness. To test the second hypothesis, the single statements for ‘newness’ was divided into positive and negative learning. The term ‘negative learning’ is used when stress occurs and therefore knowledge and abilities are not properly developed. Positive learning describes on the other hand if motivation is high and active learning occurs. The results show that newness statements related to positive learning has a positive impact on project outcomes, whereas negative learning has a negative impact on project success.


Author(s):  
Raffaele Ciardiello ◽  
Andrea Tridello ◽  
Luca Goglio ◽  
Giovanni Belingardi

In the last decades, the use of adhesives has rapidly increased in many industrial fields. Adhesive joints are often preferred to traditional fasteners due to the many advantages that they offer. For instance, adhesive joints show a better stress distribution compared to the traditional fasteners and high mechanical properties under different loading conditions. Furthermore, they are usually preferred for joining components made of different materials. A wide variety of adhesives is currently available: thermoset adhesives are generally employed for structural joints but recently there has been a significant increment in the use of thermoplastic adhesives, in particular of the hot-melt adhesives (HMAs). HMAs permit to bond a large number of materials, including metal and plastics (e.g., polypropylene, PP), which can be hardly bonded with traditional adhesives. Furthermore, HMAs are characterized by a short open time and, therefore, permit for a quick and easy assembly process since they can be easily spread on the adherend surfaces by means of a hot-melt gun and they offer the opportunity of an ease disassembling process for repair and recycle. For all these reasons, HMAs are employed in many industrial applications and are currently used also for bonding polypropylene and polyolefin piping systems. In the present paper, the dynamic response of single lap joints (SLJ) obtained by bonding together with a polyolefin HMA two polypropylene substrates was experimentally assessed. Quasi-static tests and dynamic tests were carried out to investigate the strain rate effect: dynamic tests were carried out with a modified instrumented impact pendulum. Relevant changes in the joint performance have been put in evidence. Failure modes were finally analysed and compared. A change in the failure mode is experimentally found: in quasi-static tests SLJ failed due to a cohesive failure of the adhesive, whereas in dynamic tests the SLJ failed due to an interfacial failure, with a low energy absorption.


Author(s):  
Michael Kopcak ◽  
Kent Wika ◽  
Bridget Portway ◽  
Linnea Lentz ◽  
Angela Brockel ◽  
...  

Abstract The Anatomage Table was originally marketed to medical schools as an anatomical training tool and to hospitals for preoperative planning. When Medtronic employees began to understand the power of the Anatomage Table for product development and data analysis, the uniqueness of how the table was utilized led to its many valuable contributions. The Anatomage Table has significantly reduced product development time with its ability to immediately render anatomical models in a way that allows the development team to evaluate outcomes and react with clear direction. It also reduces cognitive load for the users thereby expediting the interpretive process. The technology has become a tool to enhance research and training outcomes. This paper serves as an example to stimulate the use of this type of technology in similar applications. Hard data originating from controlled studies are not provided in this report due to the technology’s early use at Medtronic and the proprietary nature of the development processes on which the technology was used.


Author(s):  
Hazem Abdulla ◽  
Mukhtar Alhashimi ◽  
Allam Mohammed Hamdan

This study assessed the impact of project management methodologies (PMMs) on project success in the oil and gas industry in the Kingdom of Bahrain. It also explored the different project methodologies used along with their strengths and weaknesses. Quantitative approach with the support of qualitative interviews was used to achieve the objectives of this research. A total of 95 survey responses were received and 17 interviews were conducted. Projects in the oil and gas industry are more about safety than speed, and hence, the use of comprehensive methodologies and applying the relevant methodology elements are important for oil and gas projects. Furthermore, the companies in the oil and gas industry in Bahrain have to pay more attention to their project management methodologies and get it evolved and improved over time to achieve higher project success rates.


Crowdsourcing ◽  
2019 ◽  
pp. 1056-1077
Author(s):  
Roland Berberich

This chapter introduces the idea of accessing new resources by collaborative interaction with stakeholders to optimize the value chain and product development process. It is acknowledged that Creating Shared Value (CSV) could be a value driver by revisiting the supply chain (Porter & Kramer, 2011); however, in a world of scarce and often inaccessible resources, wastage is becoming increasingly detrimental. With project expenditure rising (PMI, 2012) and continuing high rates of failure (Balogun & Hope Hailey, 2008; Langley, 2014) small and medium sized businesses (SMEs) could find themselves in a position where crucial innovation becomes unaffordable and non-achievable. It is suggested that utilizing ‘the crowd', pragmatically incorporating collaborative engagement with stakeholders, could not only alleviate this problem but increase project success rates, lower costs and allow SMEs to fulfil social responsibilities with CSV.


Author(s):  
Robert Chee Choong Gan ◽  
Christina May May Chin

Due to alarmingly high failure rates attributed to either a lack of project implementation or if implemented, poor results in organizations, many PM consulting organizations have begun developing their own PM maturity models (PM3) to assess organization maturity level, to identify their clients' PM maturity gap, and to provide a pathway by which their clients could move up the maturity scale and performance. Despite the many claims of PM3 assessment capabilities, the lack of success in market adoption of PM3 models suggests the need for more studies to identify if these are due to the many definition of project success, the lack of consensus of what the components of PM3 should be, or the increasing expectations of the PM community. Thus, this chapter aims to identify the reasons behind differing organizations' views on the dimension of project success, components of PM3's direct impact on organizational performance, and how PM maturity can be measured and correlated to the various level of organizational success with a new approach known as DPM3.


Author(s):  
Roland Berberich

This chapter introduces the idea of accessing new resources by collaborative interaction with stakeholders to optimize the value chain and product development process. It is acknowledged that Creating Shared Value (CSV) could be a value driver by revisiting the supply chain (Porter & Kramer, 2011); however, in a world of scarce and often inaccessible resources, wastage is becoming increasingly detrimental. With project expenditure rising (PMI, 2012) and continuing high rates of failure (Balogun & Hope Hailey, 2008; Langley, 2014) small and medium sized businesses (SMEs) could find themselves in a position where crucial innovation becomes unaffordable and non-achievable. It is suggested that utilizing ‘the crowd', pragmatically incorporating collaborative engagement with stakeholders, could not only alleviate this problem but increase project success rates, lower costs and allow SMEs to fulfil social responsibilities with CSV.


Author(s):  
Bruce E. Hurst ◽  
Michael H. McGivern

This research was undertaken to look at possible ways to broaden the definition of project management success beyond the tradition measures of time, cost, and scope. The research was designed to determine if the human organization comprised of layers of relationships and governance would or could change and reduce the high failure rate attributed to IT projects. The human aspect of conflicting organizational goals, those established by the information technology principal and the business unit principal with the project manager acting as agent, was the foundation for the study. The study expanded project management theory as it related to three variables: organizational commitment, project governance, and complex agency relationships. This was accomplished through a survey distributed to 403 information technology project managers in the United States designed to measure the three variables against the dependent variable project success. The results indicated that governance, organizational commitment, and the effects of common agency on a project manager's performance in meeting what might be conflicting success criteria do have a positive correlation. This research could provide new directions for researchers, project management practitioners, and strategic corporate planners when establishing project success criterion.


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