A comparative study of project organization structure and problems faced during new product development by Tier 1 and Tier 2 suppliers in Indian automotive sector

Abstract

The new product development (NPD) is the process in which the conception of a new product is newlinedone carrying out a series of steps like planning, designing, development, and marketing. The NPD newlineactivities are executed by the organizations to bring continued growth process and enhance the newlineperformance of the company to high levels. [1] (Urban and Hauser, 1993) [2] (Ulrich and Eppinger, newline2011). The NPD plays an important role in the significant growth of the employment sector, newlineeconomy and brings technological advancements necessary for raising the standards of living. For newlineexample, Tata Motors launches a new car TAMO in the sports car segment. The car has captured newlinea good market and is giving a tough fight to the other sports car models like Audi R8 LMX. As a newlineresult, Tata Motors is able to increase its market share and expand its customer base exponentially newline[3] (Ketan Thakkar,2017).However, due to high failure rates of 25% to 45% in the NPD process, newlineit is regarded to be a risky project that is initiated by the company because many new products are newlinenot readily accepted by the consumers [4] (Crawford, 1987) . In order to make new products, the newlinecompanies exclusively invest in the research and development activities so that new successful newlineproduct launches are implemented by the companies. However, in every 7 new product ideas newlineinitiated by the companies, about 4 ideas go into the implementation and development process and newlineonly 1 or half come into the final process and get launched. The success rate of such new products newlineis also very less which lays a negative impact on the company investing in the development of new newlineproducts [5] (Booz, Allen and Hamilton, 1982). Hence, NPD is regarded as the riskiest and newlineconfusing activity executed by the company. Moreover, the production of new products requires a newlinenumber of the process like designing, planning, allocating resources and so on which requires newlineinvestment at each phase. However, due to uncertainty in the product development process, 46% newlineof the finances are lost by the