An application of analytic hierarchy process for the selection of a methodology to improve the product development process

Abstract

PurposeAccording to the literature, on an average, it takes around three to four years to develop a new product and about 50 percent of the costs incurred in product development (PD) tend to be spent on waste that occurs during the PD process. Hence, organizations are implementing various alternative methodologies such as Concurrent Engineering (CE), Lean Product Development (LPD)/Lean New Product Development (LNPD), and Agile Product Development (APD)/Agile New Product Development (ANPD) to improve their existing PD process. However, it is not clear: how does an organisation or a PD manager choose between these alternative methodologies for improving their PD process?Design/methodology/approachSince the above‐mentioned problem requires multiple factors/criteria/elements (in short, it will be called as “attributes” for the sake of simplicity) to be considered simultaneously; the use of a Multi‐Attribute Decision Making (MADM) model is warranted. The most commonly used MADM model, namely the Analytic Hierarchy Process (AHP) is utilized to model the above problem using a hypothetical case situation.FindingsIn this paper, the different attributes that are to be considered while making a decision of selecting a suitable PD methodology were identified. Furthermore, the results of AHP indicated that LPD is a better alternative for the case situation under consideration.Originality/valueAccording to the authors' knowledge, no paper exists in the literature of AHP or PD or LPD/LNPD that discusses the application of AHP for the selection of a product development methodology, especially for making a strategic decision in a product design and development department of an organisation.