Phase reviews versus fast product development: a business case

Business enterprises are always seeking robust and innovative approaches for new product development as part of their competitive strategy. Today many businesses use product development processes that include phase reviews. A number of researchers offer up a different view of product development. They suggest that phase reviews can slow down product development, and the critical path should be focused on. However, the PACE® process is a phase review process that has several advantages over a critical path focus. ACME SC is an example of a company that decided to manage its product development pipeline using a process based on PACE®. There are reviews between each of the six phases where management can approve the schedule and budget for the next phase, order more work before approval, put the project on hold, or cancel the project. The paper discusses the advantages offered by ACME SC’s PACE® product development process, the disadvantages mentioned in the literature and recommendations on how this or any other business enterprise can modify the PACE® process to remedy several of the disadvantages, including its adaptation in applications involving manufacturing process and manufacturing system development.

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