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The paper provides an overview of research published in the innovation and operations management (IOM) literature on 15 methods for cost management in new product development, and it provides a comparison to an earlier review of the management accounting (MA) literature (Wouters & Morales, 2014).

This structured literature search covers papers published in 23 journals in IOM in the period 1990–2014.

The search yielded a sample of 208 unique papers with 275 results (one paper could refer to multiple cost management methods). The top 3 methods are modular design, component commonality, and product platforms, with 115 results (42%) together. In the MA literature, these three methods accounted for 29%, but target costing was the most researched cost management method by far (26%). Simulation is the most frequently used research method in the IOM literature, whereas this was averagely used in the MA literature; qualitative studies were the most frequently used research method in the MA literature, whereas this was averagely used in the IOM literature. We found a lot of papers presenting practical approaches or decision models as a further development of a particular cost management method, which is a clear difference from the MA literature.

This review focused on the same cost management methods, and future research could also consider other cost management methods which are likely to be more important in the IOM literature compared to the MA literature. Future research could also investigate innovative cost management practices in more detail through longitudinal case studies.

This review of research on methods for cost management published outside the MA literature provides an overview for MA researchers. It highlights key differences between both literatures in their research of the same cost management methods.

This paper studies organizational change following a shift in an industry environment, in the context of how a focused factory adapts to a change in its manufacturing objectives. We use the organizational nature of production operations to suggest that the effectiveness of adaptation will depend on how well the manufacturing requirements of the new objectives match manufacturing capabilities at the production line level. We test our hypotheses using primary data from the Hartselle, Alabama compressor manufacturing focused factory of the Copeland Corporation. The results suggest that factors that influence adaptability derive from individual and organizational competence, and that the direction and extent of their influence depends on the systemic nature of the operational activity concerned. The results highlight roles of carefully designed complexity in operations and of process-oriented decision making on the shop floor in successful adaptation. This work contributes to our understanding of how business organizations overcome constraints to change.

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization, increased innovation, and possibilities to perform development activities in parallel. However, the differentiation of product development among a number of firms also implies that various dependencies need to be dealt with across firm boundaries. How dependencies may be dealt with across firms is related to how product development is organized. The purpose of the paper is to explore dependencies and how interactive product development may be organized with regard to these dependencies.

The analytical framework is based on the industrial network approach, and deals with the development of products in terms of adaptation and combination of heterogeneous resources. There are dependencies between resources, that is, they are embedded, implying that no resource can be developed in isolation. The characteristics of and dependencies related to four main categories of resources (products, production facilities, business units and business relationships) provide a basis for analyzing the organizing of interactive product development.

Three in-depth case studies are used to explore the organizing of interactive product development with regard to dependencies. The first two cases are based on the development of the electrical system and the seats for Volvo’s large car platform (P2), performed in interaction with Delphi and Lear respectively. The third case is based on the interaction between Scania and Dayco/DFC Tech for the development of various pipes and hoses for a new truck model.

The analysis is focused on what different dependencies the firms considered and dealt with, and how product development was organized with regard to these dependencies. It is concluded that there is a complex and dynamic pattern of dependencies that reaches far beyond the developed product as well as beyond individual business units. To deal with these dependencies, development may be organized in teams where several business units are represented. This enables interaction between different business units’ resource collections, which is important for resource adaptation as well as for innovation. The delimiting and relating functions of the team boundary are elaborated upon and it is argued that also teams may be regarded as actors. It is also concluded that a modular product structure may entail a modular organization with regard to the teams, though, interaction between business units and teams is needed. A strong connection between the technical structure and the organizational structure is identified and it is concluded that policies regarding the technical structure (e.g. concerning “carry-over”) cannot be separated from the management of the organizational structure (e.g. the supplier structure). The organizing of product development is in itself a complex and dynamic task that needs to be subject to interaction between business units.

Post-fordist production systems emphasize the need to tap workers’ knowledge to enhance productivity and quality. Often overlooked, however, is the potential conflict in expecting workers to contribute to processes that may make their jobs harder. This article compares employee participation schemes at two General Motors assembly plants to illustrate the potency of this dilemma and the range of ways managers focus or limit employee participation to achieve the company's goals. In Silao, Mexico, General Motors carefully constructed a labor relations environment that cultivated broad employee participation. In Janesville, Wisconsin, local managers placed constraints on employee participation to ensure continuous production.

The purpose of the study was to investigate the alignment between current product and manufacturing systems and how it could be achieved.

Case study research method was chosen for the collection and analysis of empirical data. The data was of qualitative nature and was collected using research techniques such as observations through video recordings of processes, documents and open and semi-structured interviews.

The variation of outer side sub-element of the exterior wall element was found to not be aligned with its corresponding assembly. A hybrid assembly of outer side sub-elements characterised by flexibility and reconfigurability can be developed.

The study is limited to the exterior wall element and corresponding manufacturing system.

The presented approach was formulated with the aim to be used both for the analysis of existing products and manufacturing systems as well as for the design of new manufacturing systems.

So far, this is the first study in the context of timber house building where the alignment between product and manufacturing systems was investigated by considering product variety and flexibility of manufacturing systems.

In this paper we appraise the ways in which use of closed-system proprietary product architectures versus open-system modular product architectures is likely to influence the dynamics and trajectory of new product market formation. We compare the evolutions of new markets in China for gas-powered two-wheeled vehicles (G2WVs) based (initially) on closed-system proprietary architectures and for electric-powered two-wheeled vehicles (E2WVs) based on open-system modular architectures. We draw on this comparison to suggest ways in which the use of the two different kinds of architectures as the basis for new kinds of products may result in very different patterns and speeds of new market formation. We then suggest some key implications of the different dynamics of market formation associated with open-system modular architectures for both the competence-based strategic management (CBSM) of firms and for technology and economic development policies of governments.

Specifically, we suggest how the use of open-system modular product architectures as the basis for new products is likely to result in dynamics of new market formation that call for new approaches to the strategic management of innovation and product creation. We also suggest technology and economic development policies favoring use of open-system modular architectures may stimulate new market formation and related economic development by providing platforms for accelerating technology development and dissemination, facilitating the formation of an industrial base of assemblers and component suppliers, assisting new firms in building customer relationships, enabling more geographically diffused economic development within countries, and facilitating development of export markets. We also suggest directions for further research into the potential for open-system modular product architectures to enable bottom-of-the-pyramid innovation processes, frugal engineering in developing economies, and development of low-cost product variations more generally.

To provide an overview of research published in the management accounting literature on methods for cost management in new product development, such as a target costing, life cycle costing, component commonality, and modular design.

The structured literature search covered papers about 15 different cost management methods published in 40 journals in the period 1990–2013.

The search yielded a sample of 113 different papers. Many contained information about more than one method, and this yielded 149 references to specific methods. The number of references varied strongly per cost management method and per journal. Target costing has received by far the most attention in the publications in our sample; modular design, component commonality, and life cycle costing were ranked second and joint third. Most references were published in Management Science; Management Accounting Research; and Accounting, Organizations and Society. The results were strongly influenced by Management Science and Decision Science, because cost management methods with an engineering background were published above average in these two journals (design for manufacturing, component commonality, modular design, and product platforms) while other topics were published below average in these two journals.

The scope of this review is accounting research. Future work could review the research on cost management methods in new product development published outside accounting.

The paper centers on methods for cost management, which complements reviews that focused on theoretical constructs of management accounting information and its use.

In this paper we extend established concepts of product and process architectures to propose a concept of organization architecture that defines the essential features of the system design of an organization needed to achieve an effective strategic alignment of an organization with its competitive and/or cooperative environment. Adopting a work process view of organization, we draw on concepts of product and process architectures to elaborate fundamental elements in the design of an organization architecture. We suggest that organization architectures may be designed to support four basic types of change in organization resources, capabilities, and coordination, which we characterize as convergence, reconfiguration, absorptive integration, and architectural transformation. We also suggest the kinds of strategic flexibilities that an organization must have to create and implement each type of organization architecture. We identify four basic types of strategic environments and consider the kinds of changes in resources, capabilities, and coordination that need to be designed into an organization's architecture to maintain effective strategic alignment with its type of environment. We then propose a typology that identifies four basic ways in which organizational architectures may be effectively aligned with strategic environments. Extending the reasoning underlying the proposed alignments of organization architectures with strategic environments, we propose a strategic principle of architectural isomorphism, which holds that maintaining effective strategic alignment of an organization with its environment requires achieving isomorphism across a firm's product, process, and organization architectures. We conclude by considering some implications of the analyses undertaken here for competence theory, general and mid-range strategy theory, and organization theory.

The aim of this chapter is to analyse and to define the role and opportunities offered by the adoption of a new ICT (Information and Communication Technology) tool within an organization, focusing attention on internal collaborative processes that have been induced by the development and use of the new tool. As noted by some authors, ICT tools may create a virtual meeting place where individuals can engage in dialogue and collaboration. However, other authors argue that technology could reduce direct involvement, social interaction, collaboration and reflective conversations that traditionally give rise to knowledge processes and thus to innovation processes inside the organizations. Nevertheless, some research contributions show that it is not an ICT tool itself that provides positive or negative effects on organizations, but how the tool is used in conjunction with complementary human resources. These contributions avoid technological determinism by stressing contingency and by coupling human design intent and activity with the disposition of actors inside organizations.

In order to fulfil the aim of the chapter, a study was carried out in a leading firm in the automotive industry, till now involved in a project aimed at implementing a new simulation tool for the assembly process. The evidence from the case seems to suggest that the development and use of the simulation tool activated the social interactions and collaborations that enacted innovation processes. The simulation tool seemed to facilitate a productive dialogue among the different departments and a deeper understanding of the different challenges involved. The development of the simulation “forced” experts of different departments to meet and to keep the focus on salient aspects. The simulation acted as a boundary object. The development of this boundary object was un-intentional but it is clear that the simulation contributed to the formation of a community of collaborators.

It is worth noting that this was not the result of the simulation tool itself but rather the result of management actions aimed at making sense of the whole project, supporting the initiative and thus motivating users.