Developing and Using Benefit Measurements for Integrated Product Development (IPD)

Integrated Product Development (IPD) focuses on the integration of people, process and technology to achieve best-in-class product development. Best-in-class means a development practice that provides the optimum values of cycle time, cost and quality for both the customer and the manufacturer.

Typical Integrated Product Development (IPD) projects measure benefits using two indicators: the reduction of Engineering Change Notices (ECNs) and the reduction of warranty costs. While these metrics are excellent long term indicators of IPD benefit attainment, in most of the organizations I have worked, feedback to management on IPD progress must be measured monthly or quarterly. Without an ongoing status of the IPD project's benefits, momentum and participation in the effort will wane over time, and become another “improvement plan of the year” at the manufacturer. This document focuses on the short term and ongoing collection and use of metrics at manufacturing firms undertaking change through IPD, and how IPD collaboration and technology can be used to translate these metrics into risk-reduction benefits.