Dimensioning a Product Development Project Portfolio Using a Closed Queueing Network

Jesper Fink Andersen, Carsten Linding Lauridsen, Bo Friis Nielsen

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

New product development processes are difficult to model as they are subject to high variability and are hard to monitor. In multi-project environments, one particular problem is to quantify the effects of changing the number of projects that run concurrently. In this paper, a closed queueing network model of the flow of projects in a product development system is presented. The model is evaluated using discrete-event simulation. Using a relation between a project’s monetary value and the time it spends in the system, an optimal number of concurrent projects is determined. Application of the model and results are shown for a case study of a Danish biotechnology company. Results show, that the value generated by the system can be increased by 17.5 percent by adjusting the total number of concurrent projects and by terminating low-value projects midway. Though the model is tailored to a specific system, it contains many features relevant for new product development systems in general.
Original languageEnglish
Title of host publicationProceedings of 2018 IEEE International Conference on Industrial Engineering and Engineering Management
PublisherIEEE
Publication date2018
Pages622-626
ISBN (Print)9781538667859
DOIs
Publication statusPublished - 2018
Event2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) - Bangkok, Thailand
Duration: 16 Dec 201819 Dec 2018
http://www.ieem.org/public.asp?page=home.htm

Conference

Conference2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM)
CountryThailand
CityBangkok
Period16/12/201819/12/2018
Internet address

Keywords

  • Discrete-event simulation
  • Multi-project environment
  • New Product Development
  • Project Portfolio Management
  • Queueing network
  • Time-to-market

Cite this

Andersen, J. F., Lauridsen, C. L., & Nielsen, B. F. (2018). Dimensioning a Product Development Project Portfolio Using a Closed Queueing Network. In Proceedings of 2018 IEEE International Conference on Industrial Engineering and Engineering Management (pp. 622-626). IEEE. https://doi.org/10.1109/IEEM.2018.8607820
Andersen, Jesper Fink ; Lauridsen, Carsten Linding ; Nielsen, Bo Friis. / Dimensioning a Product Development Project Portfolio Using a Closed Queueing Network. Proceedings of 2018 IEEE International Conference on Industrial Engineering and Engineering Management . IEEE, 2018. pp. 622-626
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abstract = "New product development processes are difficult to model as they are subject to high variability and are hard to monitor. In multi-project environments, one particular problem is to quantify the effects of changing the number of projects that run concurrently. In this paper, a closed queueing network model of the flow of projects in a product development system is presented. The model is evaluated using discrete-event simulation. Using a relation between a project’s monetary value and the time it spends in the system, an optimal number of concurrent projects is determined. Application of the model and results are shown for a case study of a Danish biotechnology company. Results show, that the value generated by the system can be increased by 17.5 percent by adjusting the total number of concurrent projects and by terminating low-value projects midway. Though the model is tailored to a specific system, it contains many features relevant for new product development systems in general.",
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Andersen, JF, Lauridsen, CL & Nielsen, BF 2018, Dimensioning a Product Development Project Portfolio Using a Closed Queueing Network. in Proceedings of 2018 IEEE International Conference on Industrial Engineering and Engineering Management . IEEE, pp. 622-626, 2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) , Bangkok, Thailand, 16/12/2018. https://doi.org/10.1109/IEEM.2018.8607820

Dimensioning a Product Development Project Portfolio Using a Closed Queueing Network. / Andersen, Jesper Fink; Lauridsen, Carsten Linding; Nielsen, Bo Friis.

Proceedings of 2018 IEEE International Conference on Industrial Engineering and Engineering Management . IEEE, 2018. p. 622-626.

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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N2 - New product development processes are difficult to model as they are subject to high variability and are hard to monitor. In multi-project environments, one particular problem is to quantify the effects of changing the number of projects that run concurrently. In this paper, a closed queueing network model of the flow of projects in a product development system is presented. The model is evaluated using discrete-event simulation. Using a relation between a project’s monetary value and the time it spends in the system, an optimal number of concurrent projects is determined. Application of the model and results are shown for a case study of a Danish biotechnology company. Results show, that the value generated by the system can be increased by 17.5 percent by adjusting the total number of concurrent projects and by terminating low-value projects midway. Though the model is tailored to a specific system, it contains many features relevant for new product development systems in general.

AB - New product development processes are difficult to model as they are subject to high variability and are hard to monitor. In multi-project environments, one particular problem is to quantify the effects of changing the number of projects that run concurrently. In this paper, a closed queueing network model of the flow of projects in a product development system is presented. The model is evaluated using discrete-event simulation. Using a relation between a project’s monetary value and the time it spends in the system, an optimal number of concurrent projects is determined. Application of the model and results are shown for a case study of a Danish biotechnology company. Results show, that the value generated by the system can be increased by 17.5 percent by adjusting the total number of concurrent projects and by terminating low-value projects midway. Though the model is tailored to a specific system, it contains many features relevant for new product development systems in general.

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Andersen JF, Lauridsen CL, Nielsen BF. Dimensioning a Product Development Project Portfolio Using a Closed Queueing Network. In Proceedings of 2018 IEEE International Conference on Industrial Engineering and Engineering Management . IEEE. 2018. p. 622-626 https://doi.org/10.1109/IEEM.2018.8607820