Ittner, C. D. & Larcker, D. F. (1997). Product Development Cycle Time and Organizational Performance. Journal of Marketing Research, 34, 13-23.

Format: Peer-reviewed article

Type: Research — Non-experimental

Experience level of reader: Advanced

Annotation: A simple conceptual model demonstrating the interactions of product cycle time with other organizational practices impacting organizational performance was constructed. The model was based on secondary literature sources at that time. A study of 184 organizations in the computer and automobile industries was undertaken to test the validity of the model. Findings reveal that a faster product cycle time on its own does not guarantee better financial or overall performance. It was also found that certain practices such as using cross-functional teams and design tools increases performance measures when operating with an accelerated cycle time. This finding applied to both industries. Other finding varied by industry.

Setting(s) to which the reported activities/findings are relevant: Large business, Small business (less than 500 employees)

Knowledge user(s) to whom the piece of literature may be relevant: Manufacturers, Researchers

Knowledge user level addressed by the literature: Organization

This article uses the Commercial Devices and Services version of the NtK Model

Tip: When operating under an accelerated cycle time, implement cross-functional teams and design tools such as quality function deployment, design of experiments, and failure mode and effects analysis. This will increase financial and overall organizational performance.
Survey. Significant correlations were found for interactions between these variables for both industries, automobile and computer.
Occurrence of finding within the model: Stage 7

Method: Use the Design of Experiments tool to increase the probability of new product success. (Griffin [1992]; Hockman & Jenkins [1994]; Wasserman [1993])
Occurrence of finding within the model: Step 3.3

• Use failure mode and effects analysis to improve the probability of new product success. (Griffin [1992]; Hockman& Jenkins [1994]; Wasserman [1993])
  Occurrence of finding within the model: Stage 4, Stage 5, Stage 6, Stage 7, Stage 8, Stage 9

• Use Quality Function Deployment to increase the probability of new product success by transforming customers' needs into quality features and functions of the product design.
  Occurrence of finding within the model: Step 4.11