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NPD Project Evaluation in the Manufacturing Industry

Ekbom, Carl-Edvin and Wrange, Alexander LU (2015) FEKN90 20151
Department of Business Administration
Abstract
Title: NPD Project Evaluation in the Manufacturing Industry
Seminar date: 26 May 2015
Course: FEKN90
Authors: Carl Ekbom and Alexander Wrange
Supervisor: Ph.D. Christian Koch
Key words: NPD projects, evaluation methods, evaluation criteria, portfolio management, manufacturing industry
Purpose: The purpose of this thesis is to increase the understanding of how new project de-velopment (NPD) projects can be evaluated in terms of methods and processes. Furthermore, it aims at scrutinizing the impacts of actors and structures on the evaluation process. Moreo-ver, it aims at identifying what challenges and trade-offs companies face when choosing eval-uation methods and organising processes for NPD project evaluation.
Method: Qualitative... (More)
Title: NPD Project Evaluation in the Manufacturing Industry
Seminar date: 26 May 2015
Course: FEKN90
Authors: Carl Ekbom and Alexander Wrange
Supervisor: Ph.D. Christian Koch
Key words: NPD projects, evaluation methods, evaluation criteria, portfolio management, manufacturing industry
Purpose: The purpose of this thesis is to increase the understanding of how new project de-velopment (NPD) projects can be evaluated in terms of methods and processes. Furthermore, it aims at scrutinizing the impacts of actors and structures on the evaluation process. Moreo-ver, it aims at identifying what challenges and trade-offs companies face when choosing eval-uation methods and organising processes for NPD project evaluation.
Method: Qualitative multiple-case study of three large manufacturing companies in Sweden, with embedded design and influence from action research.
Theoretical perspectives: Theories in financial project evaluation, project evaluation criteria, agency theory, portfolio management
Empirical foundation: Semi-structures, in-depth interviews with a total of ten managers with different functions at the three case companies.
Conclusions: Financial methods are essential for NPD project evaluation, but complementary criteria that consider the complexity of NPD projects are necessary to include. Portfolio man-agement can be used as a process to combine financial methods and complementary criteria. The impact of actors limits objectivity, but they provide important knowledge and experience. The structures serve as a cross-functional framework to guarantee the involvement of actors from different functions in the evaluation process. Companies face several challenges in rela-tion to NPD project evaluation and have to choose between using a comprehensible or sophis-ticated evaluation method, a common method or different methods, and the same set of crite-ria for all projects or use different sets for different types of projects. (Less)
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author
Ekbom, Carl-Edvin and Wrange, Alexander LU
supervisor
organization
course
FEKN90 20151
year
type
H1 - Master's Degree (One Year)
subject
keywords
NPD projects, evaluation methods, evaluation criteria, portfolio management, manufacturing industry
language
English
id
5468995
date added to LUP
2015-06-08 14:51:48
date last changed
2015-06-08 14:51:48
@misc{5468995,
  abstract     = {Title: NPD Project Evaluation in the Manufacturing Industry
Seminar date: 26 May 2015
Course: FEKN90
Authors: Carl Ekbom and Alexander Wrange
Supervisor: Ph.D. Christian Koch
Key words: NPD projects, evaluation methods, evaluation criteria, portfolio management, manufacturing industry
Purpose: The purpose of this thesis is to increase the understanding of how new project de-velopment (NPD) projects can be evaluated in terms of methods and processes. Furthermore, it aims at scrutinizing the impacts of actors and structures on the evaluation process. Moreo-ver, it aims at identifying what challenges and trade-offs companies face when choosing eval-uation methods and organising processes for NPD project evaluation.
Method: Qualitative multiple-case study of three large manufacturing companies in Sweden, with embedded design and influence from action research.
Theoretical perspectives: Theories in financial project evaluation, project evaluation criteria, agency theory, portfolio management 
Empirical foundation: Semi-structures, in-depth interviews with a total of ten managers with different functions at the three case companies.
Conclusions: Financial methods are essential for NPD project evaluation, but complementary criteria that consider the complexity of NPD projects are necessary to include. Portfolio man-agement can be used as a process to combine financial methods and complementary criteria. The impact of actors limits objectivity, but they provide important knowledge and experience. The structures serve as a cross-functional framework to guarantee the involvement of actors from different functions in the evaluation process. Companies face several challenges in rela-tion to NPD project evaluation and have to choose between using a comprehensible or sophis-ticated evaluation method, a common method or different methods, and the same set of crite-ria for all projects or use different sets for different types of projects.},
  author       = {Ekbom, Carl-Edvin and Wrange, Alexander},
  keyword      = {NPD projects,evaluation methods,evaluation criteria,portfolio management,manufacturing industry},
  language     = {eng},
  note         = {Student Paper},
  title        = {NPD Project Evaluation in the Manufacturing Industry},
  year         = {2015},
}