The interface between the product development function and the manufacturing function is one key dimension in new product development (NPD) projects. Hard and soft requirements for manufacturability are defined and communicated to product development teams early in the NPD project to ensure the new products are fit for the manufacturing system. In this chapter, we determined what requirements are important for a manufacturing system and how these requirements are handled during an NPD project by analyzing two industrial cases. The results showed that requirements communicated from the manufacturing function to the design function had different sources and effects on different aspects of the manufacturing system. They were communicated and integrated to various degrees and through various mechanisms. There was a tendency to rely on the personal and verbal communication of requirements, as opposed to using more formal structured methods. This way of working was sufficient when product change was incremental and not radical. The case studies showed that the manufacturing function needed to employ more efficient methods to define and communicate their requirements in large and complex NPD projects.

A tenet of production system design is to increase a manufacturing company’s competitiveness by introducing novel processes, technologies, and products. However, uncertainties exist regarding the actual benefits that can be attained when novelty and change are introduced into a production system. Addressing this issue, this paper explores how manufacturing companies can reduce uncertainties that challenge production system design decisions when significant changes are introduced into the production system. A real-time case study at a Swedish manufacturing company that decided to change its existing product specific assembly system to a multi-product assembly one was performed. Empirical results identify uncertainties challenging production system design configuration, and the activities targeting reduction of uncertainty. To extend current theory, empirical case study data is synthesized with current findings in production system design decisions, and uncertainty reduction in product design decisions. The paper concludes that information acquisition, uncertainty prioritization, project member background, and complexity of change influence uncertainty reduction in production system design decisions. Managerial implications highlight the importance of information acquisition and a structured approach when reducing uncertainties necessary to achieve an efficient and effective production system design. Thus, academic approaches to uncertainty reduction could benefit manufacturing practice.

Effective production systems are necessary for companies to achieve competitiveness in manufacturing, and the production system design process is fundamental to meet this goal. Discrete event simulation is a tool that can support the production system design process. However, few empirical studies have shown the use of this tool prior to the verification of an already chosen alternative, or an implemented production system solution. There is a need to explore how discrete event simulation can be used in the production system design process. A case study at a global manufacturing company, that used this tool in the design of its assembly system, is presented. The results of this study show where and for what purpose were the DES models used for in the production system design process. This study concludes that DES can support this activity and suggestions for future research are made.

Growing operational complexity and higher variety of products require flexibility in assembly. Despite its many benefits flexibility is a complex concept that requires evaluation to harness its full potential. This study uses virtual verification tools as enablers of the decision making process for production system design of a flexible multi-product assembly system. A case study approach analyses a flexible assembly concept for the earth moving equipment industry through a visual and a discrete event simulation model. The paper also discusses the challenges faced by virtual verification tools when applied to the evaluation of flexible assembly systems.

Traditional production location decisions are mainly based upon economic factors while factors that facilitate decision makers in selecting the most suitable production location in terms of operations performance are rarely considered. Therefore, this paper presents a developed decision support for production localization that emphasises operational factors to be considered in the decision making. The research methodology combines a literature study with a multiple case study method. The findings are synthesised into a five phase decision process for making production localization decisions in practice. For each of these phases, key activities with related tools and expected output are developed.

Decision are commonly based on the available or easily accessible information; this is also true for more complex assessments like production localization. Where to locate production is often a key strategic decisions that has great impact on a company’s profitability for a long time; insufficient business intelligence may therefore have grave consequences. Six production localization factor studies have been assessed to see if they are focusing on the same issues and if there are any gaps. A new approach for structuring localization factors and the localization process is then presented and assessed with regards to some previously identified critical issues.

A key aspect in the manufacturing footprint analysis is the risk and sensitivity analysis of critical parameters. In order to contribute to efficient industrial methods and tools for making well-founded strategic decisions regarding manufacturing footprint this paper aims to describe the main risks that need to be considered while locating manufacturing activities, and what risk mitigation techniques and strategies that are proper in order to deal with these risks. It is also proposed how the risk analysis should be included in the manufacturing location decision process.

On the background of a changing industrial landscape and key elements of the realization of complex integrated products, this paper discuss and explore an "innovative" approach towards product concept development methodologies by focusing on creativity, multidisciplinary teams, and decision-making. Throughout 2006-2009 a product realization methodology, the idPeo methodology, has been developed in a university/industry collaboration milieu. Based on a briefly reported literature review, the paper presents the methodology, briefly the three generations of conducted cases and the evolution of the methodology over the years. It is argued that the approach for innovative product realization in concept development, if implemented correctly also into companies' product development process, could contribute to increased flexibility, creativity and tolerance for change. It could also decrease lead time, increase product performance, and decrease uncertainty. 

Long term growth and future jobs in society rely on that industry is able to realize new sustainable product ideas and develop these to profitable products in the market. This encompasses both short time-to-market and continuous development and adaption of existing products and processes to improve productivity. Innovative skills are required in both product/service development and in product/service introduction. Thus, there is a need for new innovative methods and models that supports and strengthens industry in generating new ideas and realizing these into successful products and improved processes. This paper discusses and compares engineering design, innovation, and design. The paper argues that there is a need to integrate the disciplines and work practices of innovation and design in the engineering design field and to build multi-disciplinary environments to be successful in research, education and in industry. A conceptual framework for innovation and design inspired product realization is presented in the paper.