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The influence of strategy and concurrent engineering on design for procurement

The influence of strategy and concurrent engineering on design for procurement PurposeThe purpose of this paper is to examine the role of strategy and concurrent engineering (CE) in driving design for procurement (DFP) actions and results via the role of procurement professionals in new product development (NPD). The strategies of cost leadership, differentiation, and a hybrid approach are compared, and sequential NPD is compared to a CE approach within a DFP context.Design/methodology/approachANOVA was applied to survey data collected for a series of items capturing the activities and characteristics relating to procurement for a new product design, as well as the performance of the product compared to other design events in the firm.FindingsSeveral major findings were supported through the analysis. Product-level strategy played a limited role, at best, in driving the implementation of procurement activities and product performance. In contrast, high CE intensity was shown to improve procurement activity and product performance. The results were analyzed along the three dimensions of sustainability, and were especially strong for both environmental and economic-focused activities and performance.Practical implicationsManagers should work to integrate procurement early into NPD activities, ensure procurement uses strategy to drive decisions, and can use DFP initiatives from this research to implement a DFP program.Originality/valueThis research is one of the first attempts to empirically test design-for (DFX) approaches in NPD. It creates one of the first theoretical frameworks for DFX-related research. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The International Journal of Logistics Management Emerald Publishing

The influence of strategy and concurrent engineering on design for procurement

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0957-4093
DOI
10.1108/IJLM-03-2016-0081
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to examine the role of strategy and concurrent engineering (CE) in driving design for procurement (DFP) actions and results via the role of procurement professionals in new product development (NPD). The strategies of cost leadership, differentiation, and a hybrid approach are compared, and sequential NPD is compared to a CE approach within a DFP context.Design/methodology/approachANOVA was applied to survey data collected for a series of items capturing the activities and characteristics relating to procurement for a new product design, as well as the performance of the product compared to other design events in the firm.FindingsSeveral major findings were supported through the analysis. Product-level strategy played a limited role, at best, in driving the implementation of procurement activities and product performance. In contrast, high CE intensity was shown to improve procurement activity and product performance. The results were analyzed along the three dimensions of sustainability, and were especially strong for both environmental and economic-focused activities and performance.Practical implicationsManagers should work to integrate procurement early into NPD activities, ensure procurement uses strategy to drive decisions, and can use DFP initiatives from this research to implement a DFP program.Originality/valueThis research is one of the first attempts to empirically test design-for (DFX) approaches in NPD. It creates one of the first theoretical frameworks for DFX-related research.

Journal

The International Journal of Logistics ManagementEmerald Publishing

Published: May 8, 2017

References

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