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 language | English |
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Title of host publication | Proceedings of 2018 IEEE International Conference on Industrial Engineering and Engineering Management |
Publisher | IEEE |
Publication date | 2018 |
Pages | 622-626 |
ISBN (Print) | 9781538667859 |
DOIs | |
Publication status | Published - 2018 |
Event | 2018 IEEE International Conference on Industrial Engineering and Engineering Management - Bangkok, Thailand Duration: 16 Dec 2018 → 19 Dec 2018 https://ieeexplore.ieee.org/xpl/conhome/8589962/proceeding |
Conference
Conference | 2018 IEEE International Conference on Industrial Engineering and Engineering Management |
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Country/Territory | Thailand |
City | Bangkok |
Period | 16/12/2018 → 19/12/2018 |
Internet address |
Keywords
- Discrete-event simulation
- Multi-project environment
- New Product Development
- Project Portfolio Management
- Queueing network
- Time-to-market