Frida Bergström & Marika Björkvall
EXAMINATOR: Martina Berglund | HANDLEDARE LIU: Peter Cronemyr | HANDLEDARE SCANIA: Kent R Johansson
Simulation Based
Product Development
and Competitiveness
-
-How does a simulation based product development affect
a company’s overall future competitiveness?
Master thesis LIU – IEI – TEK – A – 15/02149 – SE
consider new ways of competing. The more mature the market becomes the higher level of competitive fulfillment and edge is needed. E.g. for Scania the dimension high quality was until now considered a competitive advantage, but is currently evolving towards a dimension that is necessary to fulfill to even act within the market. Thus, companies such as Scania have to push their limits everywhere possible across their organization. One way to push the limits of R&D and product development (PD) is, based on this thesis and other work, implementing a simulation based product development (SBPD) process.
The aim of this thesis has been, by applying a quality function deployment (QFD) model, to show the influence a SBPD process can have on increased competitiveness. By combining published literature within the field with empirical results mostly gained from interviews, nine components representing a SBPD process could be found. These components were characterized in the following categories: IT-infrastructure, design, model & test, and organizational. Depending on the level of fulfillment of these components the SBPD process is more or less implemented within the company. The two components that are considered the most important for Scania in terms of both increased competitiveness and a possible transition towards a SBPD process are Virtual representa-tion of the product and the process throughout the whole PD process and A model driven/model based approach. The work of this thesis has also shown, in correlations with previous published literature, that a SBPD process can significantly decrease the lead-time and cost of development, and at the same time increase the knowledge about the product and the process. The research has also shown that a SBPD process can considerably improve both the internal and the external collaboration. However attaining such a process where these competitive advantages can be gained affects the whole organization, the way development is performed and also the way resources are used. A fully implemented SBPD process has been shown to positively impact the following competitive dimensions; Frequency of product introductions, Lead-time of development, PD process flexibility, Degree of innovation, Customization of the offer, Collaboration with internal and external partners, Knowledge about products and processes, R&D cost, manufacturing cost, Focus on customers operational economics, Product quality, Product safety and Focus on environmental sustainability of the product & the processes. But, to get a positive impact on all these dimensions the components representing a SBPD process must be implemented and applied.
Furthermore, this thesis also provides a framework for other companies to evaluate the impact a SBPD process can have on their competitiveness. The analysis model aims to guide companies that want to adopt a SBPD process. The framework can indicate how a SBPD process would impact the firm's competitive strategy. But also to provide guidance to which components that would be more important to implement in order to reach a competitive SBPD process.
sätt att konkurrera. Ju mer mogen marknaden blir desto högre blir kraven på konkurrens. För Scania har faktorn hög kvalitet tills nu betraktas som en konkurrensfördel, men utveckling sker istället mot att det kommer att vara en faktor som är nödvändig att uppfylla för att ens kunna agera på marknaden. Företag som Scania måste således utvecklas över hela organisationen. Ett sätt att tänja på gränserna för FoU och produktutveckling (PD) är, baserat på detta arbete och annan tidigare forskning, att genomföra en förändring mot en simulering baserad produktutvecklings-process (SBPD).
Syftet med detta examensarbete har varit att, genom att tillämpa en quality function deployment (QFD) modell, visa effekten en SBPD-process kan ha på ökad konkurrenskraft. Genom att kombinera tidigare publicerad litteratur inom området med empiriska resultat, mestadels insamlat genom intervjuer, kunde nio komponenter som utgör en SBPD-process finnas. Dessa komponenter karakteriserades i följande kategorier: IT-infrastruktur, design, modellera och testa och organisatorisk. Beroende på graden av uppfyllnad på dessa komponenter blir den SBPD-processen mer eller mindre implementerad inom företaget. De två komponenterna som anses viktigast för Scania i form av både ökad konkurrenskraft och en eventuell övergång till en SBPD-process är Virtuell representation av produkten och SBPD-processen genom hela PD-SBPD-processen och Ett modellbaserat/ modelldrivet arbetssätt används.
Arbetet har också visat i korrelation med tidigare publicerad litteratur, att en SBPD-process kommer att minska ledtiden och kostnaden för utveckling avsevärt och samtidigt öka kunskapen om produkten och processen. Denna studie har också visat att en SBPD-process kan förbättra både interna och externa samarbeten. Men att uppnå en sådan process där dessa konkurrens-fördelar kan vinnas kommer att påverka hela organisationen, det sätt som utveckling utförs på och också hur resurserna används.
En fullt implementerad SBPD-process har visat positivt påverkan följande konkurrens faktorer; frekvens av produktlanseringar, ledtiden för utveckling, PD-processflexibilitet, innovationsgrad, anpassning av erbjudandet, samarbete med interna och externa partners, kunskap om produkter och processer, FoU kostnader, tillverkningskostnad, fokus på kundernas driftsekonomi, produktkvalitet, produktsäkerhet och miljöpåverkan av både produkten och processen. För att få en positiv inverkan på alla dessa faktorer måste alla komponenter som utgör en SBPD-process implementeras och tillämpas.
Dessutom så presenteras även ett ramverk för andra företag att utvärdera effekterna en SBPD-process skulle ha på deras konkurrenskraft. Analysmodellen syftar till att vägleda företag som vill övergå till en SBPD-process. Ramverket kan ange hur en SBPD-process skulle kunna påverka företagets konkurrensstrategi men också ge vägledning om vilka komponenter som kan vara viktigare att börja implementera för att nå en konkurrenskraftig SBPD-process.
thesis was the concluding work of the engineering program in Design and product development at Linköping University with a master's degree within management.
First and foremost we want to thank our tutor Kent R Johansson at Scania for making this master thesis possible and taking the time to coach us throughout the process. A special thank is as well directed to Oskar Thorin and Tomas Dersjö at Scania, who have put a lot of effort and time in to assist us throughout the process. We would as well like to thank our steering committee at Scania for listening and supporting us in this process.
We would also like to thank our tutor Peter Cronemyr at Linköping University for his feedback and experience within the theoretical field. Thanks are also directed to our opponent Jonatan Torstensson for his insights during this time. Furthermore we would like to give our thanks to the employees at Scania, at Stockholm School of Economics and at the Royal Institute of Technology for their participation in our interviews, with great interest and motivation.
Lastly we want to say that we really appreciated doing this thesis at Scania. Not only because we were given free hands to investigate much on our own, allowing us the opportunity to provide an outsider's view of the SBPD process at Scania, but also because of all the welcoming employees at Scania, helping us throughout the process.
Södertälje, June 2015
Background ... 2
Aim & Research questions ... 3
Delimitations ... 5
Scania - History & Facts ... 6
Part II – Methodology ... 7
Structure of the work ... 8
Perspective & Orientation of the research ... 9
Literature search ... 11
Empirical data collection ... 12
Analysis of interviews & documents ... 17
Validity, Reliability & Generalizability ... 18
Part III – Theory: Review of strategic perspectives & Theories on competitiveness ... 25
Strategic & Competitive outset... 26
Strategic perspectives ... 33
General competitive dimensions ... 34
Part IV – Theory: Review of Competitiveness & Simulation based product development ... 51
Outline of PD process & Competitiveness ... 52
The definition of a SBPD process ... 54
Competitiveness & SBPD process ... 56
Components of a SBPD process ... 56
Composition of SBPD definition & components ... 60
Part V – Theory: QFD analysis of processes ... 63
QFD analysis: How it is typically used ... 64
Strategic perspective & competitiveness ... 74
Scania’s PD process ... 77
Part VII – Design of the analysis model: Composition & Testing ... 83
Analysis model design ... 84
Test & Analysis of the analysis model ... 94
The final analysis model ... 96
Part VIII – Evaluation & Analysis of Scania: Review of SBPD process & Application of analysis model ... 97
Adaption of the analysis model ... 98
Application of the analysis model ... 98
Part IX – Analysis & Discussion: Recommendations & Criticism of method & results ... 99
Discussion of Results ... 100
Discussion of Method ... 103
Recommendations for other companies ... 107
Part X – Conclusion & Further studies ... 109
Conclusions of Research Questions ... 110
General conclusions ... 111
Suggestions for future studies ... 112
References ... 113
Appendices ... 119
Appendix 1 - Interview part 1 ... 120
Appendix 2 - Interview part 2 ... 121
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In order for companies to stay competitive, change and streamlining of the company’s processes are necessary. Firms that operate within mature markets with mature products, such as Scania, have to acknowledge the change of competitive advantages, pushing them to pursue new ways to stay competitive. This thesis presents how the adoption of a more simulation based approach, within the product development processes, affects the overall competitiveness. Implementing and extending the use of a simulation based product development is a complex process, not the least to measure and motivate this change. By demonstrating how components of a simulation based product development process affects the competitiveness of a firm, this thesis as well brings new insights to the area of process evaluation with the use of quality function deployment analysis as a tool. In this chapter a more thorough background to the thesis is be described as well as the aim, research questions and delimitations. A description of Scania’s background is also presented.
Background
Many of today's companies operate within known industries where the means of competition are known and the market share is defined. This is what Kim & Mauborgne (2004) refer to as a red ocean, where the competitors fight each other to obtain a share of the existing market, at the same time the products are becoming commodities. To be able to manage this rapid development and keep market shares in this competitive environment, companies need to use new ways to operate. This could be becoming more efficient, developing better products, meeting new customer needs or provide a whole new offer. These new ways of operating have to influence the whole company and may extend as far as to the product development process (PD process).
Morgan & Liker (2006) describe that having a strong PD process can lead to significant increased competitive advantages. Improving the PD process thus becomes as important as improving the manufacturing process or any other process in the company. All companies have to develop and make changes to methods, processes, product offers, strategies, etc. in order to stay competitive. Grant (2010) describes that competitive advantages are not static, they decrease over time if changes are not made.
Incorporating computer tools throughout the organization is a possible and in some cases necessary change of the organization to stay competitive, especially for companies producing and developing complex products. Serval firms have understood and observed the benefits of using computer tools or simulation application methods, tools for simulation, modelling and visualization, within the PD process. However, large companies with long history and strong culture still experience problems with incorporating and motivating the changes required to adopt a PD process based on simulations. In other words, a process where results from simulations are used as the primary mean for decision making and where physical tests are used more to support simulations.
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One of the companies described above is Scania. Scania is a financially stable and profitable company that has not had red figures since the 1930s. Scania produces and develops complex products, a combination of components and systems into a product, in the heavy vehicle industry, i.e. trucks and busses, but also engines. A wide range of accompanying services, e.g. repairs and driver training, is also one part of Scania’s offer. Scania has a strong market position and competitiveness with its modular system and cost efficiency. However, with constant change of the market and the competitive situation, Scania despite their stable position, still needs to look forward and be prepared to develop and change their processes. Scania’s vision is as well to grow without growth, i.e. grow in market share but not in number of employees. To reach this goal the use of resources must be utilized efficiently, not at least within the PD process. Therefore, a new interest to change towards and adopt a more simulation based product development (SBPD), which includes a model based development approach, has arisen at Scania.
Firms, like Scania, that develop complex products in a fiercely competitive market and have done so for a long time have certain preconditions and challenges. By being established in a market during a long time with high profits, Scania has gained lot of experience and knowhow about the products, processes and the market. This has also created a kind of inertia to larger changes, which is not unusual in a large company that has been around for a long time. Despite the advantages of a SBPD process that have been shown by other companies as Saab aeronautics and by research performed by academics, Scania is still unsure if this is something that can work for them. However, to remain having a strong market share and being competitive in the future, especially in a country where labor is relatively expensive, Scania has started to understand the need for change. Thus an interest for evaluating the SBPD process has grown. Consequently, it is now more important than ever to motivate the advantage or benefit with changes.
As Scania now also has become a part of the Volkswagen group, tougher requirements on how future ways of working should be motivated or justified, especially in terms of money, have occurred. This means that the benefit of the change must be measured and in that way be justified in more detail, foremost in terms of costs. According to Scania the problem lies in knowing how to motivate a SBPD process, what and how of a suggested change should be motivated, and how can the benefit be transferred into costs.
Aim & Research questions
The goal with this thesis is to propose an analysis model that Scania or other companies in the same situation can use to motivate the transition towards a more SBPD process. The method is intended to create a base for how to recoup and account for a transition towards SBPD. The purpose with this thesis is thus, based on quality function deployment (QFD) to create an analysis tool, to show how SBPD affects strategies and the overall competitiveness.
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To fulfill the aim of this thesis, the following research questions should be answered:
RQ1. What general competitive dimensions are presented in the literature and by academic researchers?
The focus of this research question is on the PD process and to investigate competition within large companies that develop complex products as well as competing in a mature market, such as Scania. RQ2. What components/parts are necessary in order to adapt a SBPD process?
The purpose with this question is to find components/parts within the literature and from the empirical review that represent a SBPD process. The purpose is also to draw conclusions based on what components that are believed to be important for companies such as Scania.
RQ3. What components/parts of a SBPD are more beneficial, in a strategic perspective, to consider in a SBPD process today at Scania?
This question aims to take into consideration the results from the two other questions. Thus the aim is to present the components that are more beneficial to consider, regarding both increased competitiveness and the desire to reach the definition of a SBPD process.
Research questions 1 and 2 will combine literature with empirical results to serve as input to the analysis model. The analysis model, together with the results from RQ1 and RQ2, further empirical results and theories about QFD, is the base for RQ3 (see Figure 1). It is important in this thesis to state the present situation to be able to consider future possible plans. Therefore the research questions regards both the present and the future.
Figure 1: Illustration of the connection and correlation between research questions and the elements of the study.
RQ1 RQ2
RQ3 Analysis
model
Theories about strategies and competitiveness
Theories about SBPD and competitiveness
Theories about QFD Empirical results
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Delimitations
The work of this thesis has been delimited in terms of areas that are included and also the method to be used. The following delimitations about the method have been made:
The focus of the thesis is on companies that develops complex mature products, such as Scania. However, some of the presented theoretical framework is more general and some of the results can be applied for other types of products.
The PD process is affected by many actors in different levels within the company. However the influence from e.g. the supplier’s, parent company or the government is limited within the area of this thesis. Thus, these areas are not considered but should not be completely rejected.
The investigated method is applied primarily for companies developing physical products and not for those developing e.g. software for various systems.
The following areas are not investigated closer in this thesis:
A background to the configuration of the PD process depending on different strategic perspectives. As well as study of other PD methodologies like concurrent engineering, integrated product development or eco-driven product development. This is described and presented in the authors' earlier report: Simulation based product development for complex products - A strategic perspective (2014).
Study of Scania’s competitors. Available information provided by Scania is used.
Study of competitive dimensions that are not directly affected by the PD process, e.g. dimensions within logistics and production.
More thorough study of competitive dimensions that are difficult to affect by a SBPD process.
A complete proposals of how the process used at Scania can be improved. The focus is on developing a method that Scania can use to asses process improvements within SBPD.
A method description of how to account for benefits and costs by adopting a SBPD process. It is however giving a description for what is needed to reach such a process and is therefore a fundament for being able to determine these benefits and costs.
Development of e.g. busses or engines, as well as the processes concept development and the product follow up, is not in focus. Thus, the focus is on the PD of trucks.
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Scania - History & Facts
Scania is a company that dates back all the way to 1891. In the beginning they produced carriages for railways but the focus later turned towards trucks, cars and engines. In the early 20th century Scania took a turn to focus more on standardized trucks which was the beginning of the modularization era and they dropped their line of cars. Around this time an interest for accompanying services arose and established. During the mid of the 20th century, Scania became a global company with production sites in Brazil and exports accounting for 50% of produced products. (Scania 2013b)
Scania was able, during the late part of the 20th century, to become the most profitable company in the industry due to the modular-ization, the high quality and the cost effective production. In the 21st century Scania continued its focus on engine development and introduced two models of V8 engines. They were also in the leading edge regarding reducing emissions. Scania expanded the brand by introducing new truck models, bus models, services and events such as young European truck driver. The engines were a crucial factor for the success of the company and have for a long time been known as reliable, fuel efficient and powerful. Another success factor is the experienced and skilled workers at Scania. (Scania 2013b)
Today Scania focuses on reliable, customized, sustainable and efficient products for their customers. An essential part of Scania’s focus is to improve the customers’ economics by providing premium products and services that increases the customers’ revenue and/or minimizes costs for the customer. Right solution to right customer is thus very important, i.e. right product and service combination for their specific purpose. The modularization is essential to provide these kind of solutions and is one of the key factors for why Scania is so successful (Scania 2013d). More facts about Scania can be found in Figure 2.
Core values Customer first, Respect
for the individual and Quality Employees 41 000 employees in 100
countries, of which 9% are employees at R&D
Services and New products sold (% of net sales) 73 611 new trucks (64%) 6 853 new buses (7%) 6 783 engines (1%) Services for 17 510 MSEK (19%) Production locations Sweden, Argentina, Brazil, Netherlands, Poland and France
R&D location Sweden, Södertälje Vehicles produced per employee 6.7 year 2013 3.5 year 1995 Scania’s partnership throughout history* Scania-Vabis 1911-1969 Saab-Scania 1969-1995 Since 2014 Scania has
been included in the Volkswagen group
Figure 2: Key facts about Scania
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This thesis is relying on both theoretical and empirical data, conducted in a thoughtful manner with support from theories of methodology, in order to be regarded as trustworthy. The data has also been analyzed with well-known methods to strengthen the reliability and validity of this study. In this chapter the complete methodology used in this thesis is being described. The research’s scientific perspective, approach and orientation is also presented. Method of literature search as well as the data collection is also detailed described. The chapter starts with a summary that presents the overall structure of the work.
Structure of the work
The work of this thesis was divided into three phases; planning, feasibility study and application at Scania (see Figure 3). The planning phase consisted of structuring and obtaining a deeper under-standing of the problem and the background of the challenge that was meant be investigated. Based on the practical challenge at Scania, the theoretical problem, or possible contributions to the theoretical field, was created. Before the final version of the aim and the research questions were set, discussions were held with Kent R Johansson (tutor Scania), Peter Cronemyr (tutor Linköping University) and the steering committee at Scania (employees at Scania with different background, knowledge and from different departments with big interest for SBPD, put together by Kent R Johansson). As the final version of the aim was decided, delimitations, research questions and the structure of the following work was established.
Figure 3: Description of the work structure, consisting of four phases.
Planning
Establishment of goal, research questions and delimitations
Planning of the workflow
Phase 1: Feasibility study
Literature search in the fields of competitiveness, strategy and SBPD
Method search in the fields of qualitative research and QFD-analysis
Interview study (internal and external) in
the fields of competitiveness and SBPD Creation of the analysis model
Phase 2: Application at Scania
Analysis part 1, first iteration based on interviews and literature
Analysis part 2, second iteration and analysis of the results.
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The work continued with phase one, feasibility study, which included literature search and empirical research. Phase one began with a literature study in the area of competitiveness with a specific aim towards product development of complex products. The goals with the literature search were to gain sufficient background knowledge within the theoretical field to answer RQ1 and to be able to perform proper interviews. This literature search was complemented by interviews part 1, conducted both at Scania and outside, and with a document search of strategic and competitive documents. In parallel, literature search in the field of SBPD was performed. The search was done to get a deeper understanding for what parts or components a SBPD should consist of in order to be classified as a SBPD process. Interviews part 2 was performed to verify the components found in the literature, but also to find specific SBPD components at Scania. A search in Scania’s internal documents was as well conducted within this field to find support for the components brought up during interviews. The QFD analysis model was also created in this phase, by selecting components, dimensions, giving importance to the competitive dimensions and also to test the framework.
Phase two, application at Scania, was the next phase of this thesis. This phase was aimed to give answer to the practical problem for this project. The analysis model was applied at Scania and more thorough analysis of two components of the SBPD process was done. Interviews part 3 was performed during this phase in order to get more information about the present state of the SBPD process. The analysis of the applied analysis model at Scania was the base for the company specific recommendations and for the thesis general conclusions. Empirical research of two SBPD components were also performed in order to give Scania a company specific recommendations.
Perspective & Orientation of the research
Epistemological perspective
The epistemological perspective which this study is mainly influenced by is the positivistic. The positivism embraces two sources of knowledge, empiric knowledge gained from observations or logic knowledge gained from our intellect. With the positivistic perspective, statements can be argued unreasonable based only on logic knowledge without empirical evidence or knowledge within that area of research (Thurén 2007). However, the positivistic perspective must often embrace both types of knowledge to come to a conclusion, which means that both induction and deduction is used (Thurén 2007; Åsberg 2000). The positivistic perspective also correlates with the authors’ view of the purpose of this report. As Åsberg (2000) describes, the positivist does not search to find a definitive cause but to find correlations or relations.
Thurén (2007) furthermore describes, that the way people interpret the reality depends on their prior understandings or prejudices. This study is be based on both empirical and theoretical studies. Thus, the theoretical study is intended to give more insight into the theoretical field which could thereby improve our prior understandings in this field and thus improve the empirical knowledge which could lead to more reliable conclusions. The process of this study is iterative where literature and empirical research have been ongoing in parallel. This has influenced the authors’ prior know-ledge in different ways and has also affected the way things have been performed during the study.
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Study approach
According to Lekvall & Wahlbin (2001) a study can be categorized in to three dimensions:
Depth analysis of one or a few cases or a broad analysis to compare several cases
The data and analysis methods are considered qualitative or quantitative
Analysis at a specific moment or development over time
This study is considered a case study as Scania was studied in detail and was not compared with other companies. Two components were also studied more in detail. The second dimension can according to Lekvall & Wahlbin (2001) be more difficult to distinguish. Åsberg (2001) describes that no study is qualitative and quantitative only data can be qualitative and quantitative. In this study, both qualitative data through e.g. interviews and quantitative data through e.g. the documents have been used. Also, both qualitative and quantitative analysis have been performed. Concerning the third dimension, this study resembles an analysis over time, this study analyses the present state as well as looks into the future but not at a specific moment e.g. in ten years.
Investigation orientation
According to Lekvall & Wahlbin (2001) the orientation of this study can be considered descriptive, explaining and predicting. The thesis can be considered descriptive as competitive dimensions that can be affected through product development, and components of a SBPD are mapped. It is considered an explaining study as the effect of different components of SBPD on competitive dimensions are studied. Also, the study of this thesis can be considered predicting as a forecast of how changes of the organization can affect the SBPD components is made.
Ethical aspects of the study
Tracy (2013) describes that ethical consideration of a study is very important to assure the quality of the study. The quality criteria of ethics depends on how the researcher takes into consideration procedural ethics, situational and culturally specific ethics and also relational ethics. Procedural ethics concerns e.g. how the researcher regards the participants’ right to confidentiality. Situational ethics takes into consideration ethical aspects that are specific for the particular study or sample. Relational ethics considers the effect the researcher may have on relationships and also the way participants are treated. (Tracy 2013)
Procedural ethics have been taken into consideration in this study by securing the research data. The data gained from interviews was processed before sharing, making it more difficult to identify the source and thus protecting our participants. The interviewees are in this work presented by title, thus the identification of specific participants is difficult. Situational ethics have been taken into consideration as the project have had a close collaboration with Scania. Some parts of the study are also confidential to protect Scania against competitors. Although this information could have been interesting and could have provided new insights into the theoretical field this information had to be excluded from the study based on the situational ethics.
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Relational ethics have been considered by taking into consideration the participants own beliefs and thoughts and also concern the answer in its context. By keeping the participants answers confidential from each other the relational ethics have also been considered.
Literature search
The literature search was performed in order to create an analysis model, the QFD framework, to be able to state the impact from a SBPD process on competitiveness. Linköping University library catalogue was primarily used to find relevant literature during the literature search. Google scholar and Scopus was also used. The literature search was based on three areas: competitive dimensions, competitiveness and SBPD, and QFD analysis (see Table 1 for compilation of each searches). Table 1: Compilation of the main literature searches conducted in this thesis.
Area Search words
(used separately/in combination)
Scanned books and articles Used books and articles Competitive dimensions
product development, competitiveness, perform-ance, competitive advantage, competitive edge, competitive dimensions, competitive indicator
100 18
Competitiveness and SBPD
simulation based, product development, design, simulation driven, model driven, virtual product development
60 21
QFD analysis QFD, process evaluation, how to use, guide, step by step, house of quality, process assessment, process quality planning, innovative application, process innovation, strategic planning
120 10
To be able to compile the competitive dimensions, generic strategies were used as a starting point. Thus, the literature search begun with investigating the area of generic strategies and the subarea competitiveness in order to get a better understanding for the background to the competitive dimensions. As the areas of strategies and competitiveness are very broad subjects, a few known theories of generic strategies were chosen to be studied to begin with, e.g. Porters five forces. These literatures had as well been studied previously during the authors’ education. The study was also complemented with other well-known literature in the field of competitiveness and product development, to ensure that the most important competitive dimensions were found. Approximately 100 articles and books were scanned, using LiU library catalog, Google scholar, Scopus, as well as published books and articles from previous studies to find them (see Table 1). Dimensions that were presented in the literature to provide an advantage for the overall competitiveness of the product and company were then compiled into the list of competitive dimensions. The search resulted in three main areas of competitive dimensions; dimensions influenced by the industry, dimensions influenced by dynamic forces and dimensions influenced by resources and capabilities. The literature search was thorough, rejecting those that did only discuss one particular competitive dimension or did not explicitly mentioned that the dimensions could affect the competitiveness. However, the dimensions were chosen with the aim of being able to influence or be affected by the PD process of complex products.
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To connect the areas of competitiveness and SBPD, a literature search of the area was conducted. This search was based on the work previously performed by the authors describing what general competitive advantages a firm can get from having a SBPD process. The literature search continued in the area of components representing a SBPD process. To begin with, literature gathered from the previous projects was studied. The literature search continued by exploring other theses and work from well-known authors in the field of SBPD, to find relevant literature. Approximately 60 articles and books were scanned, using databases, LIU library catalog, Google scholar, Scopus, as well as published books and articles from previous studies, to find them (see Table 1). The literature was reviewed, rejecting those that did not discuss about processes or methods connected to SBPD. Literature search in the area of QFD was also performed. The literature search was obtained to get a deeper understanding for how a QFD analysis is regularly performed and how it could be used in this particular case. Approximately 120 articles and books were scanned, using databases, LiU library catalog, Google scholar, Scopus, as well as published books and articles from previous studies to find them (see Table 1). When the literature was reviewed, the articles and books that discussed about how to use QFD in a general manner were screened more in detail. The few models of QFD found in the area of process evaluations or in other innovative applications were also screened more in detail.
Empirical data collection
The empiric data for this thesis was collected through three interview parts, document research and seminars. Figure 4 below illustrates the workflow of the empirical data collection over time.
Figure 4: Illustration of the workflow of the empirical data collection over time.
Interviews
Three interview pars were performed to get empirical results for the different parts related to the aim of this thesis. Table 2, next page, gives an overview of the interviews.
Document research and seminars Interviews part 1
Interviews part 2
Interviews part 3
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Table 2: General information and overview of interviews.
Ana ly s is m e th od In te rvi e w g u id e In te rvi e w to p ic s Ti tle s Ave rag e l e ng th o f in te rvi e w s Num be r of in te rvi e w s Ty pe o f in te rvi e w In te rvi e w Cod in g Ap p e n d ix 1 In te rv ie w p a rt 1 Def in iti o n o f c o m p e ti ti v e a d v a n ta g e a n d c o m p e ti tiv e fa c to r Com p e titi v e a d v a n ta g e s a n d PD Com p e titi v e a d v a n ta g e s n o w a n d i n th e f u tu re Se n io r m a n a g e r Pro d u c t d ire c to r Hea d o f p e rfo rm a n c e a n d p ro d u c t p la n n in g As s o c ia te p ro fe s s o r Pro fe s s o r 3 0 m in u te s 5 Se m i s tru c tu re d In te rvi e w p a rt 1 : Com pe titi v e di m e ns io ns Cod in g Ap p e n d ix 2 In te rv ie w p a rt 2 Def in iti o n o f a SBPD p ro c e s s Dif fe re n c e s b e twe e n a SBPD p ro c e s s a n d a re g u la r PD p ro c e s s Com p o n e n ts re p re s e n ti n g a SBPD p ro c e s s Hea d o f d e s ig n a n d a n a ly s is Se n io r m a n a g e r Dev e lo p m e n t e n g in e e r 3 0 m in u te s 3 Se m i s tru c tu re d In te rvi e w p a rt 2 : SBPD c om po n e nts Cod in g Ap p e n d ix 2 In te rv ie w p a rt 2 Reg u la r w o rk t a s k s Im p le m e n ta tio n a n d in fo rm a ti o n a b o u t s im u la tio n s In fo rm e d o r e x p e ri e n c e d b e n e fits a n d c h a lle n g e s wit h s im u la tio n s O b je c t m a n a g e r 3 0 m in u te s 1 Se m i s tru c tu re d In te rvi e w p a rt 2 : W ork in th e PD p ro c e s s Con s tru c te d v ig n e tt e M e a n in g c o n s id e ra tio n C o m p o n e n ts o f a SB PD p ro c e s s L e v e l o f fu lfi llm e n t o n SBPD c o m p o n e n ts Hea d o f d e s ig n a n d a n a ly s is Se n io r m a n a g e r Se n io r te c h n ic a l a d v is o r 6 0 m in u te s 3 Stru c tu re d In te rvi e w p a rt 3 : Pres e nt s it ua tio n M e a n in g c o n s id e ra tio n M e a n in g in te rp re ta ti o n Con fi d e n ti a l Im p le m e n ta tio n a n d fu tu re p la n s Bu s in e s s a rc h ite c t Ex p e rt e n g in e e r Se n io r e n g in e e r Se n io r b u s in e s s a n a ly s t Te c h n ic a l m a n a g e r 6 0 m in u te s 5 Se m i s tru c tu re d In te rvi e w p a rt 3 : T w o c om po n e nts
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Interviews part 1: Competitive dimensions
Interviews for part 1 were conducted, in parallel with the literature search, to answer research question 1. Interviews were held both at Scania and with academic researchers at KTH (Royal institute of Technology) and Stockholm school of economics.
The interviews were of an exploratory type, described by Kvale & Brinkmann (2009), as the interviews consisted of open questions, concerning a broad topic and the information given during the interviews were used to look at the topic in a different perspective. The interviews can be considered to be semi-structured as, according to Kvale & Brinkmann (2009), a semi-structured interview guides often outline the topics to be covered and include suggested questions.
The interview guides for interviews part 1 followed a sequence proposed by Tracy (2013), where there are opening questions followed by generative questions, directive questions and ending with closing questions. Different probes were also prepared in advance to give guidance during the interviews. Two types of guides were created, see Appendix 1 - Interview part 1for main questions, where one was specifically designed for the interviews at Scania. The interview guides were constructed on the basis of RQ1 and the aim with this thesis. The goals with interviews part 1 were:
To find other perspectives on competitive dimensions than the once that were proposed in the literature
To confirm that the competitive dimensions found in literature are relevant
To find competitive advantages that possibly can be important in the future
To find specific competitive dimensions that can be affected through the PD process
To find specific competitive dimensions that are important for Scania now and in the future The people chosen for interviews part 1 were based on their involvement in strategic and competitive environments at Scania. One person working at the marketing department was interviewed because of the closer relationship with the customers. The other two interviewees worked at the R&D department within areas responsible for future goals for development. The interviewees were found primarily by recommendation from Kent R Johansson (tutor at Scania). Interviewees were also found by using the internal webpage inline, as well as from recommendation of the interviewees themselves. This way of choosing a sample can, according to Tracy (2013), be considered a snowball sample. When choosing interview objects, their knowledge and influence within the area was concerned. The people chosen for interviews outside Scania was chosen to get an outside perspective on competitiveness for Swedish firms. They were chosen as they are academic researchers within the field. Totally three people at Scania and two people outside Scania were interviewed, in part 1. The interviews lasted for approximately 30 minutes each and were both recorded and summarized in written form.
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Interviews part 2: Simulation based product development at Scania
Interviews for part 2 were conducted in parallel with the literature review in order to answer RQ 2. The interviews were conducted at Scania where people working close with SBPD were selected. The interviews were prepared and performed in very close similarity with the interviews in part 1. The people chosen for interview were mainly based on the network from the steering committee. Interview guide for these interviews can be found in Appendix 2 - Interview part 2. This interview guides follows the sequence proposed by Tracy (2013), presented in interviews part 1. The main goals with interviews part 2 were:
To find basic and critical components that have to be included in a SBPD process at Scania
To find components that Scania would like to include in the future
To confirm that the components found in literature are relevant
The interviewees were selected on the basis of Kent R Johansson (tutor at Scania) recommen-dations, as well as their involvement in different projects developing methods and processes to make the PD process more simulation based. The interviewees where chosen because of their knowledge about how simulations are used in the PD process today but also because of their knowledge about the obstacles they have experienced trying to implement changes regarding the SBPD process. The snowball sample method was as well used again to find additional interviewees. An interview was also performed with an object manager (responsible for coordinating the work in groups with deadlines in projects). The object manager was chosen to be interviewed to get a better understanding for how the real work in the development process is actually performed. The interview guide for this interview can be found inAppendix 2 - Interview part 2. This interview guides as well follows the sequence proposed by Tracy (2013). The goals with this interview were:
To understand how the development today is concentrated around physical testing
How and for what simulations are mainly used
To get another perspective on the SBPD, its benefits and disadvantages
The object manager was found through the internal web page Inline. The object manager was chosen mainly because of the level of experiences, i.e. the interviewee had worked as object manager for more than one year. Totally one object manager and three people that promotes simulations were interviewed and the interviews lasted for approximately 30 minutes each. All interviews were recorded and summarized in written form.
Interviews part 3: The way towards a SBPD process at Scania
Stating the present situationDuring a group interview the present state of implementation of a SBPD process was discussed using both the definition proposed by Bylund (2004) and the level of fulfillment for each specific component at Scania. The group, consisting of two people, were asked to look at the present state within the organization and first determine the level of maturity and implementation based on Bylund (2004) five levels. They were then asked to discuss the same but for each component separately using the level of fulfillment.
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One person was also interviewed individually regarding the level of fulfillment. The people chosen for this part were chosen with regard to their insight in the simulations maturity and implementation within the organization today. These people were also chosen because of their involvement in the development of different parts related to the evaluation of the expansion or transition towards a SBPD process at Scania. The already known network was used to locate these interviewees.
No special interview guide was developed for this part as the levels of fulfillment were used as questions and the descriptions for the components to guide if further elaboration was needed. Thus, the interviews were of a more structured type with predetermined fixed questions (Kvale & Brinkmann 2009; Tracy 2013). During these interviews the sequence proposed by Tracy (2013) was not used. However, probes where used during the interviews to get better understanding for why one component was considered to be implemented or not. Totally three people were involved in stating the present state and the interviews lasted between 30-60 minutes. These interviews were as well recorded and summarized in written form. The goal with these interviews was to map the present state at Scania.
In depth analysis of two components
The results from the QFD relation matrix together with the roof of the house of quality and the present state of the SBPD process resulted in a couple of components that were considered more important for Scania to consider if they would like to adopt a SBPD. These components were thus chosen to be evaluated more thoroughly through interviews which was the main part of interviews part 3. The interviews were of a semi-structured type described by Kvale & Brinkmann (2009), as the questionnaire was used to state which themes that should be covered with suggested questions. The interview guides followed a sequence proposed by Tracy (2013), where there are opening questions followed by generative questions, directive questions and ending with closing questions. However, the interview guides for these interviews are not presented in this thesis as they are very specific for Scania and could potentially harm Scania’s competitive advantage. However, the goals with these interviews were:
To get a better understanding for what is implemented today for the chosen components
To get a better understanding for what is planned to be implemented to reach the wanted level of fulfillment for the chosen components
To get a better understanding for what needs to be implemented in order to reach the wanted level of fulfillment
The people chosen for these interviews were people working in areas related to the chosen components. They were also involved or had insight in the development that is being made related to the chosen components. The interviewees were located trough the internal webpage Inline or through the already established network. The snowball sample method was once again used to find interviewees that could provide more knowledge in the area. Five people in total were interviewed and the interviews lasted between 30-60 minutes. The interviews were both recorded and summarized in written form.
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Internal document research & seminars at Scania
Internal documents, such as strategic documents and method descriptions, were studied in parallel with interviews part 1 and 2. The internal webpage Inline was used to find documents related to strategies, competitiveness, future goals, simulation methods, PD process methods and etc. Scania’s webpage was also use to attain public information, e.g. history about Scania and annual reports. Two seminars were also attended to get more information about simulations, strategies and competitiveness.
Analysis of interviews & documents
Analysis of interviews part 1 & 2
Interviews part 1 and 2 was analyzed with the method coding. A concept-driven coding was used, which according to Kvale & Brinkmann (2009) mean that codes have been developed in advance. The analysis of the interviews could thereby start during the interview by categorizing the answers into different themes. During the interviews, uncertainties could be cleared and clarifications or further explanations to answers could be given, making the coding easier. The codes developed beforehand were first-level descriptive codes which according to Tracy (2013) focuses on what is presented in the data. The data was analyzed in two sessions of coding, primary-cycle and secondary-cycle as proposed by Tracy (2013). The primary-cycle coding started during the interview itself which focused mostly on describing, detailing who, what and where. New first-level codes were also developed during the analysis of the material. The secondary-cycle coding focused on detailing why and how by using second-level codes. The purpose with second-level codes is to explain, theorize and synthesize in order to identify patterns, rules etc.
By performing primary- and secondary-cycle coding the competitive dimensions could be narrowed down, as the focus for this study was to show the relationship between competitiveness and product development. Some dimensions could also with help from the coding be separated into other competitive dimensions, for example reaction/responsiveness to market changes were separated into ability to comprehend market changes and flexibility of processes.
The starting codes used during interviews part 1 were: Quality, Cost, Innovation, Knowledge, Frequency of introductions, Lead-time of development, Reaction/Responsiveness to market changes, Specialization/Flexibility/Customization of the offer and Brand.
By performing primary- and secondary-cycle coding the SBPD components could be further developed and mapped together and some components could be removed. The starting codes used for interviews part 2 were: Primary means of design, Primary means for decision making, Available tools for “regular” engineers, Support in dialogue with customers, Used in the early stage of PD process, Used as a predictive tool, Used to evaluate many design alternatives, Majority of virtual prototypes, Rapid iterations, Continuous improvements of simulation processes.
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Analysis of interviews part 3
Stating the present situation
The analysis method for stating the present situation is a kind of constructed vignette, described by Tracy (2013). In a vignette the researcher construct the example and then ask participants to discuss this particular example (Tracy 2013). In this case the authors of this thesis constructed, on the basis of literature search, the levels of fulfillment for the SBPD components. The interviewees were then asked to discuss the present state regarding these areas. The interview answers were also analyzed by a type of meaning consideration, described by Kvale & Brinkmann (2009). This is a kind of categorization where the answers are categorized in order to answer test hypotheses (Kvale & Brinkmann 2009). In this case the answers were interpreted and categorized to be able to test the hypotheses regarding the level of fulfillment.
In depth analysis of two components
The interviews for this part used two types of analysis methods. The analysis consisted of both meaning consideration and meaning interpretation descried by Kvale & Brinkmann (2009). The things discussed during the interviews were first categorized into the components that were studied. This was done to get an overview of what was planned and what was already implemented regarding the two components. The categorization also made it possible to compare and combine the answers that regarded the same subject.
Meaning interpretation was also performed. Thus, the answers were not used in its original format. Instead they were interpreted to find structures and meanings that were not apparent directly in the answers (Kvale & Brinkmann 2009). By analyzing all interview answers for one component together, meaning interpretations could be used resulting into new findings that was not mentioned directly by the interviewee.
Analysis of internal documents & seminars
Documents related to competitive dimensions were analyzed in the same way as interviews part 1 described above. The primary-cycle coding was used to find competitive dimensions and the secondary-cycle coding was used to find correlation between the dimensions and PD. By searching for these codes Scania’s strategy could be compared and resembled with the generic strategies. The documents related to SBPD were analyzed in the same manner as interviews part 2. The primary-cycle coding was used to find components of a SBPD and the secondary-cycle coding was mostly used to find correlations between the components and to better understand how they could be implemented.
Validity, Reliability & Generalizability
Stating the validity, reliability and generalizability of a study is essential in order to understand the applicability of the method or results in other contexts. It is as well important for the trustworthiness of the study or the results. Validity is described as, according to Lekvall & Wahlbin (2001), what was meant to be measured really was measured with the used method. Thurén (2007) describes validity as what was studied was the one thing that was meant to be studied and nothing else.
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Reliability on the other hand is described as if the measurements are performed in a correct way (Thurén 2007) or the methods ability to resist different kinds of influence by contingencies (Lekvall & Wahlbin 2001). Reliability is when the same method can be used again and again and give the same result (Lekvall & Wahlbin 2001). Generalizability means that the results are applicable in other contexts. Major & Savin-Baden (2010) however uses another term, transferability, and state that transferability means that the findings may be comparable or applicable in other contexts, if they are similar or comparable. For findings to be transferrable in to other settings it is important that the context is well described (Major & Savin-Baden 2010; Starrin & Svensson 1994). Methods are also generally more easily transferred into other contexts than results (Major & Savin-Baden 2010).
Errors in measurements that affects reliability and validity occur when the method is imperfect. An imperfect method could occur if there are defects in the measuring instrument or that it is used in the wrong way. Errors affecting the validity of the method could be when a clear goal is missing both for the ones performing the method and the ones that are included in it. E.g. if the interviewer does not have a clear goal for the interview it can be difficult to ask the right questions, and if the interviewee does not know the goal he/she may interpret the questions differently and answer to something else. Reliability can be effected by e.g. differences in people’s mood, i.e. the results can vary depending on if the person is very motivated or tired. The reliability can also be affected by the relation between interviewer and its interview object or if some respondents are interpreting things differently (Lekvall & Wahlbin 2001). Thurén (2007) describes that high reliability could be gained if several different people are performing the same method and the same results are given each time from each individual. However, high reliability does not guarantee high validity. The measurements could have been performed perfectly by several participants with the same result but the result may even tough not be related to what was aimed to be measured. (Thurén 2007)
Ensuring the validity and reliability of the literature search
The validity of the literature search has been ensured by reviewing a large amount of literature within each area and only literature that connected well with the research questions was used. The method coding was as well a tool to ensure that what was meant to be measured was measured, which in this thesis were the components or dimensions that were meant to be found was found. The reliability of the literature has been considered as well known literature within the areas of search was used as a base. References from already found literature were as described earlier also studied ensuring in higher reliability. Dimensions or components that were not mentioned by several authors were not included as they were not considered general, raising the reliability of the results from the literature search. The findings in the literature search are also considered transferrable to other companies that are developing complex products.
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More books were studied in the area of QFD than for SBPD (120 vs. 60). One reason for this is that there are much more literature about QFD than e.g. SBPD. A smaller percentage of the articles and books was as well used in the area of QFD than for the other two areas. In order to get adequate reliability and validity of the literature search more articles and books had to be revised in the area of QFD. Thus, more articles and books had to be scanned to properly connect the QFD literature with the purpose of this study. Less articles and books had to be revised in the area of SBPD as the connection to the research questions was more apparent.
Ensuring the validity and reliability of the interviews
To make the interviews reliable and valid the interviews were, in terms of Tracy (2013), strategized. Strategizing the interview correlates with thematizing an interview by answering the questions why, what and how described by Kvale & Brinkmann (2009). To answer the question why, the purpose with the interview parts have been clarified by setting up goals. The question what, describes the contributions the interview should result in (Tracy 2013). Kvale & Brinkmann (2009) describe that to ask relevant questions, and thus know if the question what has been answered, interviewers need to have sufficient prior knowledge within the area of research. If the interviewer has little prior knowledge about the topic, it is hard to know if the answers given from the interviewee can provide any contributions to the field. The question how concerns which techniques should be used for interviewing and analyzing the data to reach the why and what questions. (Kvale & Brinkmann 2009) The literature search within the areas of competitiveness and SBPD was as described previously performed in parallel with the interview parts 1 and 2. Thus, prior knowledge within the areas was gained in order to perform more valid interviews. Knowledge was also gained from previous interviews, seminars and documents. The knowledge gained from interviews part 1 and 2 combined with the literature search gave much prior knowledge to interviews part 3.
With the method interview contingencies could be acknowledged and handled during the interview, reassuring the reliability. By using interviews the validity could as well be assured as follow up questions could be asked and misunderstandings could be sorted out. As the interviews were not compared to each other in the same way as survey results may be, the influence by e.g. differences in people’s mood had less effect and thus influenced the reliability to a less extent.
Most of the interviews followed a sequence proposed by Tracy (2013). Kvale & Brinkmann (2009) describe that the interviewee easier opens up and gets more trust for the interviewer if the interviewer starts to discuss what the interview should result in, presents himself/herself and ask questions to show interest for the interviewee. To start the interview in an easier manner can thus affect the validity and reliability.
The reliability is described as contingencies are avoided. Getting the interviewee to open up can reduce such contingencies. Stating the goal for the interview has, as described, a strong correlation with the validity of the interview. If the interviewee does not know the goal, there can be difficulties in answering the questions with the right mindset. Thus misconceptions can occur if the inter-viewee does not know or understand the goal. Therefore it is important to consider the relationship between the interviewer and the interviewee as well as stating a clear goal to obtain useful results.
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Furthermore the information gained from the interviews is not recommended to be used in a general manner as it is very specific for Scania. The information is however highly appropriate for understanding the context and thus to create a base for transferability.
Interviews part 1
Why: purpose with interviews part 1
The goals with interviews part 1 were:
To find other perspectives on competitive dimensions than the once that were proposed in the literature
To confirm that the competitive dimensions found in literature are relevant
To find competitive advantages that possibly can be important in the future
To find specific competitive dimensions that can be affected through the PD process
To find specific competitive dimensions that are important for Scania now and in the future
What: contributions from interviews part 1
Interviews part 1 was performed to complement the theories found in the literature by expanding into other areas, by confirming or by enhance these theories.
How: techniques for interviews part 1
Interviews part 1 was performed in a semi structured manner to discuss, in a nonrestrictive way, about the topics of competitiveness and product development. By using mostly generative questions (Tracy 2013), the interviewees could talk openly within the certain area. The interviewers, the authors of this thesis, used different probes and follow up questions to clarify uncertainties and to guide the interview. Probes and follow up questions are according to Kvale & Brinkmann (2009) a good way to analyze the interview, as much is clarified during the interview session. This can as well, according to Kvale & Brinkmann (2009), enhance the quality of the interview.
The analysis method coding, described above, was used to reassure the connection of the interview with the research question and thus ensure the validity. The reliability has been assured with the use of the method coding. Coding is a method for analyzing interviews and in this case primary codes were developed on the basis of the literature search. Others using the pre-developed codes would probably find confirmation for the same strategies and competitive dimensions as this thesis. Interviews were chosen as a method to reach these goals and to not restrict the people to only think in terms of the language proposed in academic literature. By using interviews with open questions the interviewees could discuss in their own words the topics of concern. As interviews were used, probing could also be performed to get more elaborating answers.
