Effective Supplier Involvement in Product Development Projects
In today's scenario, many product development projects run the risk of being over budget and/or run past the scheduled deadlines. A major part of this can be attributed to the lack of effective and realistic product planning. We use the thesis that consideration of appropriate suppliers at the right time in a product development project can reduce wastes like waiting for parts to become available, unnecessary design iterations, design defects and poor design, and mitigate risks related to technology and enterprise capability. In the present paper, we present a methodology for effective supplier involvement in a product development project by blending the Design Structure Matrix (DSM) and the PERT/CPM techniques and considering supplier lead times and component interfaces of a given product architecture. We discuss the various options of supplier consolidation, postponement or early involvement of suppliers, and their effects on the product development project cost and schedule. We will demonstrate the working of the proposed methodology using a case example.