Dynamic simulation of product process

During 90’s Nokia utilized Concurrent Engineering (CE) process in mobile phone business successfully. Strong growing of the company, more complex technologies, maturing markets and changes in competition has increased the need to develop the product process of the company to keep its position as an agile, innovative and productive product developer. Dynamic simulation approach has been one of the activities among other product process re-engineering efforts in the company. This paper describes the approach and “Product Process Decision Simulation” (PPDS) solution as the first implemented application of the approach. A dynamic model of product development has been created and applied to manage product process complex dynamic behavior on system level in order to reduce product development cycle times, slippages and costs as well as improve perceived product quality. The key contribution of the simulation solution is to provoke facilitated discussion in order to gain shared understanding of interdependencies and dynamic causes and effects in product process. The implementation and frequent simulation workshops have started in June 2006 and about 500 R&D people have already participated.