Shared knowledge and product design glitches in integrated product development

Product development processes based on the joint collaboration of the cross-functional team, suppliers, and customers can minimize project glitches. Glitches in the product development project can cause project cost over-runs and delay a project past when first mover advantages are possible. While previous theoretical work has suggested a negative relationship between shared knowledge and product development glitches, empirical studies have not identified how different types of shared knowledge are associated with each other and the design glitches. This study proposes a model of the relationship between specific types of shared knowledge and design glitches in integrated product development (IPD) projects. We test our model using a sample of 191 projects from the automotive industry in the United States. The major findings were that: (1) shared knowledge of the development process can be built by improving a team's shared knowledge of customers, suppliers, and internal capabilities, (2) shared knowledge of the development process for a project reduces product design glitches, and (3) reduced product design glitches improve product development time, cost, and customer satisfaction.     

Target volatility option pricing in the lognormal fractional SABR model

We examine in this article the pricing of target volatility options in the lognormal fractional SABR model. A decomposition formula of Itô's calculus yields an approximation formula for the price of a target volatility option in small time by the technique of freezing the coefficient. A decomposition formula in terms of Malliavin derivatives is also provided. Alternatively, we also derive closed form expressions for a small volatility of volatility expansion of the price of a target volatility option. Numerical experiments show the accuracy of the approximations over a reasonably wide range of parameters.     

Organizational structuring and project team structuring in integrated product development project

For a superior project result, integrated product development (IPD) project need to have stage-specific management approaches where the front-end structuring supports and strengthens the management of the project and the team during the execution stages. In the current study we focus on relationships on the organizational level variable during the front-end stage of the project, organizational structuring, with a project execution level variable, project team structuring to study the impact on product design glitches and project performance in the concurrent project environment. We hypothesize that managing the overall product development projects with integrated organizational structuring at the front stage and project team structuring during the development and project implementation stages can lead to reduced product glitches which can enhance the overall IPD project performance. We test our hypothetical model using data collected from the US automotive industry. Our data supports all the three proposed hypotheses. Discussion and implication of the empirical results, limitations of the current study, and recommendations for future studies are also provided.