Correct decisions based on uncertain requirements and imperfect information within product partnerships-a contradiction?

Abstract

Early and effective integration of subsuppliers during the early phases of the product development process has become a strategic factor key to a manufacturer's competitiveness. It will therefore be important in the future to act upon subsuppliers' innovations in a significantly more timely manner than is practised today. The realization of this task will render the sphere of development crucially important. Not only the technical functionality of a future product is defined in the early phases of the product development process. Through specification of technical parameters a product's cost as well as indirect and direct costs associated with a product's production may be determined. The transformation of this strategy into reality requires the ability to work with incomplete information, which, when coupled with accurate mathematical and modelling methods, can contribute to making the goal of higher profits a reality. Through the example of a vehicle accessory, it was shown that with the help of probability based assessment techniques that are able to model the kind of incomplete input data often present in early planning stages, well founded decisions can be reached. Timely recognition of risks and of requirement to act as well as transparent and accountable decision making that takes customer wishes into account are the primary goals that will be pursued in order that economically robust products are created.