An Application of Project Management Framework In Product Development: Case Study: Bicycle Manufacturer

An Application of Project Management Framework in Product

Development: Case Study: Bicycle Manufacturer

Yuan-Ho1 Chen Ru-Jen2 Lin Chiu-Yao3 Ting

Lunghwa University of
Science and
Technology,Taiwan
yuanho@mail.lhu.edu.tw
Lunghwa University of
Science and
Technology, Taiwan
rjlin@mail.lhu.edu.tw
Graduate School of
Management, National
Yunlin University of
Science and Technology
cyting@mail.lhu.edu.tw

Abstract

This study targets a R&D project, on bicycle products for young consumers, based on
empirical evidence, conducted by the Taiwan Project Management Association (TPMA), a
D-class International Project Management Body of Knowledge (IPMBOK), which is a
method that processes product development plans, contingent on practical validation, to
assess the applicability of the TPMA D-class International Project Management Body of
Knowledge system in an actual R&D case study. The findings indicate that the new bicycle of
this product design has the following features: fashionable image integrated in design,
multi-purpose designs of portability, environmentally friendly, and integrated security design.
This project obtained verification and confirmation from the client, and was then successfully
completed through manufacturing. This study also found that, the D level property tool of the
IPMBOK theory, property of the TPMA, is able to solve problems inherent in product
research and development.

Keywords: Project Management, TPMA, IPMBOK, Research and Development.

1. Introduction

In order for business projects to run smoothly, individual management of project is

important. Recent research shows that good project management is the key to business
process (Jamieson and Moerris, 2004); today has become a very popular research topic
(Qureshi, Warraich and Hijazi, 2009). The main purpose of this study is to explore the TPMA
D-class International Project Management, Body of Knowledge for practical validation. The
research team selected a target group of adolescents (12 years of age to under 18 years old),
familiar with the riding functions of the products, the overall ride comfort, and the preferred
components and capabilities of the bicycle products. The aim of this project is to analyze the
current preferences of adolescent groups in order to develop the design elements of new
bicycle products, which are in accordance with the preference principles of the product design,
and fully in line with the physical and psychological needs of the users in the target age group.

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It also aims to seek an innovative direction for a R&D project through degrees of preference.
The ultimate goal is to provide target consumers with a product that is.

2. Literature Review

Project Management

Project refers to the completion of a certain task, by a specific deadline, under technical
complexity, dependent on continued coordination and control of progress, costs, and
performance (Meredith and Mantel, 1989), which are defined as businesses, though their
scheduled time for activities is designed to produce a ‘one-time’ output or service (Barad and
Raz, 2000).

Project management has following advantages: (Taiwan Project Management

Association Editorial Board, 2008):

1. The one-time events will not be repeated.

2. The ad hoc implementation has start and end dates.
3. There are pre-set goals of a model project.
4. The amount of resources is limited.
5. Project completion meets the desired results.

The International Project Management Association (International Project Management

Association, IPMA) was established in 1965, with the focus of supplying global project
management expertise, and is the world's oldest project management organization. In the
1990s, the project matured, and the two main organizational systems are implemented in
advanced countries, such as Europe and the United States. The locations are as follows:
Pennsylvania, headquartered in the United States Association for Project Management
(Project Management Institute, PMI), headquartered in The Hague with the International
Project Management Association(Fan,M., Xiong,P.L. and Huang,C.M., 2006). Taiwan
obtained the IPMA membership through the Taiwan Institute of Project Management in 2004
to offer project management knowledge and practical expertise in Taiwan.

Project management approaches applications with a focus on time, cost, performance,

and clearly defined work management (Cleland and King, 1983). Berkley and Saylor (1994)
stated that project management is a management philosophy, a guiding principle, and
methodology, aimed at meeting product and service demands of customer’s delivery
requirements through management techniques and tools. Kloppenberg and Opfer (2002)
referred to project management-related research conducted in 1960, which focused on large
government defense projects transferred to commercial applications (such as the construction
industry, information systems, new product development, etc.). That study showed that

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project management increased business opportunities for future operations; in other words,
with good project management capabilities in an organization, its success in project
management is almost guaranteed.

Product Research and Development

As product development can provide business opportunities for future operations, R&D
projects are important organizational activities for an enterprise. Most product development
requires step by step testing for the completion of a project, thus, a management approach for
new product development is more beneficial (Pons, 2008), as product R&D analysis avoids
wasting time on technical factors.
Product research and development must take into account of customer demand, market
prices, and acceptable levels, rather than developing the most powerful commodity (Pai,K.H.,
2003). Therefore, enterprises must first research customer demand for new products, because
even if R&D ability is good, the developed product may not have a market demand, resulting
in unwanted merchandise (Hu,S.C., 2008).
Overall, in the product development process, project management tools and technology
have been successfully used on complex projects (Kwak and Anbari, 2009), and the rapid and
effective development of project management for R&D projects of an enterprise will have a
significant effect.

3. Research Methods and Procedures

This study follows the International Project Management Body of Knowledge in project
management steps (Taiwan Project Management Association Editorial Board, 2008), as
shown in Figure 1, through the planning stages of a project in order to apply a number of ad
hoc methods, making the project management system more effective, and the implementation
of the project under a common communication language to facilitate this project.

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Figure 1 Project Management Steps

Set the Project Goals and Project Scope

Through this study, actual market surveys and consumer questionnaires are conducted to
gather the preferences of a select population of contemporary youth, and analyzes the model
preferred components and capabilities to determine the direction of the bike project. The
designed elements are based on the analysis results, integrated through form, function,
entertainment value, and practical principles of product design. Ultimately, the bike is
expected to provide target consumers with a product in full compliance with their physical
and psychological bike needs. The objective of this project must meet the SMART principles,
including Specificity, which is Measurable, Achievable, Realistic, and Time-bound(Taiwan
Project Management Association Editorial Board, 2008). Therefore, the project goals of this
project are the following five points:
1. Create a breakthrough-type bike design criteria.
2. Completed design appeals to the purchase intentions of more than 20% of the target groups.
3. Research during an implementation period of six months, June 2, 2008 to November
28, 2008.
4. Study budget of 2 million NT dollars.
5. Progress and cost controls of this study are strictly enforced to progress according to plan.

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An Application of Project Management Framework In Product Development: Case Study: Bicycle Manufacturer

Work Breakdown Construct and Responsibility Assignment Matrix

Work Breakdown Structure

WBS (Work Breakdown Structure) is the deliverable or functional elements of a
collection-oriented research data set, from which all research areas are organized and defined,
its function is to breakdown the areas within the scope of the study/project, then reassemble it
into assigned work packages for easy task management with personnel assigned to planning
and resource estimation. WBS, in accordance with the top-down approach of this study, is to
establish a dismantling approach for process-oriented activities to organize the operational
details necessary to the project, as shown in Figure 2.

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Figure 2 WBS

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An Application of Project Management Framework In Product Development: Case Study: Bicycle Manufacturer

Risk Planning

Risk is a measured uncertainty in research, and the main risk in research refers to the
capacity of a project manager in predicting the output level. The risks that may be forecasted
include: increasing the scope of the project design, not meeting the demands of manufacturers,
delay of the project schedule delays, disputes regarding the projects, high prices of materials,
poor integration between the materials and existing product, false answers filled out by the
respondents, invalidity of the questionnaire, and failure of the product model test. The
probability of each risk occurring and its impact are obtained by multiplying the product of
the two, namely, the risk priority number (Risk Priority Number, RPN). This study selects
risk items and risk response plan in the high-risk area and greatest risk area (i.e. RPN 40 to
100) for priority planning, as shown in Table 1.

Table 1 Risk Planning Table

The
effect
Work Risk response Risk
No. Risk Project probability of RPN
Package plan managers
the
size

Prior
consultation with
the client, the
Increase the Planning
Project need to
1 scope of the 8 9 72 Team
Scope repeatedly
project Leader
confirm the
scope of the
study

Repeated
Design does through
Production
not meet the recognition of
2 Design 8 8 64 Team
demand of the the manufacturer
Leader
manufacturers specifications,
requirements,

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and process
variables

Research
managers fulfill
its oversight
responsibility in
Project The ad hoc Project
3 10 5 50 order to reduce
duration time-delay Manager
the number of
hours in
consideration of
delays

Sufficient
Project
communication
Manager,
Software Contractual to establish an
4 6 8 48 Finance
purchase disputes arising agreement to the
Team
terms of the
Leader
contract

Shop around for

Material prices
lower prices
are too high
through special
and materials
channels and Finance
are integrated
5 Materials 5 8 40 select the quality Team
with the
and Leader
existing
specifications
non-performing
consistent with
product
an alternative

4. Results and Discussion

Market Feasibility Analysis

In this project, an ad hoc group investigation was conducted by questionnaire survey

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An Application of Project Management Framework In Product Development: Case Study: Bicycle Manufacturer

conducted on general consumption in regard to the research and development of a project bike,
in order to find out the purchase intentions of the consumers. The questionnaire results
showed that:

(1) The reasonable price ranges perceived by young respondents

7%

43% 15,000 以下
50% 15,001~20,000
20,001~25,000

Figure 3 The reasonable price ranges perceived by young respondents

Most young respondents think a reasonable bicycle price is between 15, 000 ~ 20,000
NT dollar, and 43% of young respondents think a price between 20,001~25,000 NT dollar is a
reasonable range. Very few respondents think the price should below 15,000 NT dollar.

(2) Survey of preferred bicycle styles of young respondents

Off-road bikes
7%

Lady-style bikes
30%
Off-road bike
Lady style bikes
Mountain bike
63%
Mountain bikes

Figure 4 The preferred bicycle styles of young respondents

More than half of the respondents prefer mountain bikes, 30% prefer lady-style bikes,

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and 7% prefer off-roadbikes.

(3) The main motivation to purchase, according to the findings

Other
Following the trend
0% Sports & Leisure
8% 24% Sports & Leisure
Short-term travel
Commuting
33% Short-term travel
Follow the trend

Commuting Other

35%

Figure 5 Main Purchase Motives

Most young people use a bicycle for commuting (35%), short-term travel (33%), sports
and leisure (24%), and following the trend (8%).

(4) Factors of purchase intention

Price Other
3% Model Model
Material 8%
30% Function
12%
Color
Material
Color
Price
15%
Function Other
32%

Figure 6 Factors of Purchase Intention

The main consideration is the functions (32%), followed by model (30%), material
(12%), price (8%), color (15%), and other factors (3%).

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An Application of Project Management Framework In Product Development: Case Study: Bicycle Manufacturer

(5) Main considerations when purchasing a bicycle

Others Individual style Individual style

Cheap price
3% 10%
5% Comfortable ride
Good texture Comfortable ride Security considerations
13%
Popular model
20%
Innovative feature Good after-sales service
10% Innovative feature
Security considerations Good texture
Good after-sales service Popular model Cheap price
7% 15%
Others
17%

Figure 7 Important Considerations When Buying a Bicycle

Important considerations when purchasing a bicycle include a comfortable ride (20%),

popular model (17%), good texture (13%), innovative features (10%), and individual style
(10%).

(6) Functions
Table 2 Survey on Bicycle Functions

Project on Yes No

Whether the bike has 100% -

variable speed functionality

Whether the bike is foldable 33% 67%

Availability of audio 87% 13%

equipment

Survey of young people's preferences show that variable speed functions is a necessary
condition, but the folding function is not (67%), capability of playing MP3 (87%) has a
growing percentage in preference.

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(7) Consumers’ willingness to purchase

Consumers’ willingness to purchase (product development)

No purchase intention
13%

Willingness to purchase
87%

Figure 8 Willingness To Purchase A Bike With MP3 Features

The preliminary investigation showed high willingness of consumers to buy a bicycle

with new features (MP3 audio), which accounted for 87%, while no willingness to purchase
accounted for only 13%.

Consumers’ willingness to purchase (product development later)

No purchase intention Other

6%
14% Willing to purchase
41%

May consider 39%

Figure 9 after Purchase Intention Survey Development

Product design is presented to the respondents to investigate their willingness to

purchase, 41% showed willing to purchase, while 39% had no purchase intention.

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Product design drawings

Based on the results of investigation and analysis, consumer preferences in bicycles

include that appearance, variable speed features, and seating comfort. The "MP3 audio" is the
main design element in this study. According to the above results, the bicycle design
principles are listed in Table 3. These principles serve as the basis for new bicycle
development in this study. The new design is shown in Figures 10 and 11.

Table 3 The Principles Of Bicycle Design

No. Pattern elements Design Type

1 Height 100cm

2 Length 143cm

3 Body Material Aluminum

4 Variable function Section 18 Transmission

5 Variable control Handle rotation-type

6 Lighting Embedded in the design and use of cell bodies

7 Audio equipment Embedded design, waterproof design

8 Power Design Renewable power generation and electrical functions

9 Handles Ergonomic design

Handle
10 Streamlined
Appearance

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11 Seat Design Ergonomic design

12 Pedals Camber angle knee pedal twice

13 Tires Wheel diameter of 26 inches

14 Tooth Chain Cover Anti-involved in the design

15 Paint Scratch-resistant high quality paint

MP3 audio equipment

Wall-glove packages

Embedded lights

Anti-roll design High quality paint

Figure 10 Bermuda Bicycle Exterior Design

Note: The appearance of a reference to the Giant bicycle web site

( http://www.giant-bicycles.com/zh-TW/ ) Compilation made

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An Application of Project Management Framework In Product Development: Case Study: Bicycle Manufacturer

MP3 Player
Built-in speaker

USB slot

Figure 11 Bermuda Bicycle Headlights And Special Sound Design

The Bermuda style bike shown above has the following characteristics:
1. Integrated design in a popular image
2. Portable multi-functional design
3. Environmental protection and anti-theft design

5. Conclusions and Recommendations

This study used a systematic international project management approach for project
management through implementation of control stages in order to ensure that research output
meets the original plans. Continuous monitoring of the functions and quality of the researched
output were carried out to prevent any standard reduction and frequently review the progress
of the project, in order to complete the design of a bicycle for youth. The Bermuda bicycle
designed by this study meets the features preferred by youth, including portable
multi-functional design, integrated environmental protection, and anti-theft features.
This study employed a systematic project management model, developed based on the
preferences of the youth group, in order to provide an established R&D model to
manufacturers as design reference. This product is designed to target only individual bicycles,
excluding third-party vehicles and other vehicle types. Future studies can adopt this design for
actual production, functional testing, and the basis for market research on new product
development.
Future studies can target other products or industries to implement the product

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development processes, and compare the R&D project management in different industries.
Finally, the proposed implementation of a new project can refer to prior experience or
knowledge as reference for the implementation of a follow-up project.

6. Acknowledgement

Thanks to the Graduate School of Business and Management of Lunghwa University of

Science and Technology Lee, Hsin-Ling, Wu, Meng-Chun, Lin, Li-Ching and Huang, Yen-Jen
four graduates of the industry, experienced in providing assistance to complete this practical
paper.

7. References

1. Barad, M. and Raz, T. (2000) “Contribution of Quality Management Tools and Practices
to Project Management Performance”, International Journal of Quality and Reliabity
Management, 17( 4/5), 571-583.

2. Berkley, B. T. and Saylor, J. H. (1994) Customer-Driver Project Management, New York:

McGraw-Hill.

3. Cleland, D. I. and King, W. R. (1983) System Analysis and Project Management, New
York: McGraw-Hill.

4. Fan,M., Hsiung,P.L. and Huang,C.M. (2006) Project management elementary knowledge

and application practice, Taipei: Po Hung International.

5. Hu,S.C., Chuang,C.S., Su,Y.H. and Cheng,W.C. (2008) “Portable CD audio outward

appearance design project”, Project Management Journal, 1(1), 34-54.

6. Jamieson, A. and Moerris, P. W. G. (2004) “Moving from Corporate Strategy to Project

Strategy”, in The Wiley Guide to Managing Projects, P. W. G. Morris and J. K. Pinto
(Eds.), Gibijeb, NJ: John Wiley and Sons, Inc. 177-205,

7. Kloppenberg, T. and Opfer, W. A. (2002) “The Current State of Project Management

Research: Trends, Interpretations and Predictions”, Project Management Journal, 33(2),
5-19.

8. Kwak, Y. H. and Anbari, F. T. (2009) “Analyzing Project Management Research:

Perspectives from Top Management Journal”, International Journal of Quality and
Reliability Management, 27, 435-446.

9. Meredith, J. R. and Mantel, S. I. (1989) Project Management, New York: John Wiley and
Son.

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An Application of Project Management Framework In Product Development: Case Study: Bicycle Manufacturer

10. Pai,K.H. (2003), Innovative collaborative product development PDM Application

practice. Taipei: China Productivity Center

11. Pons, D. (2008). “Project Management for New Product Development”, Project
Management Journal, 39(2), 82-97.

12. Qureshi, T. M., Warraich, A. S., and Hijazi, S. T. (2009) “Significance of Project
Management Performance Assessment (PMPA) Model”, International Journal of Project
Management, 27(4), 378-388.

13. Taiwan Project Management Association Editorial Board. (2008) International Project
Management Knowledge System. Kaohsiung: Taiwan Project Management Association.

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少年腳踏車研發專案實務

陳元和 1 林如貞 2 丁秋瑤 3

龍華科技大學 龍華科技大學 雲林科技大學

商學與管理研究所 商學與管理研究所 管理研究所
副教授 副教授 博士

摘要

本研究以青少年腳踏車為研發之產品對象，運用國際專案管理學會
(International Project Management Association, TPMA)Level D 級國際專
案管理知識體系，進行產品研發過程之實務驗證，以評估 TPMA D 級國際專案管
理知識體系在 R＆D 之適用性。
本研究主要是以實地驗證方式為之，運用 IPMA Level D 級專案管理知識，
實地進行產品 R ＆ D 專案管理之驗證，以修正並經由廠商審核確認整個研發過
程 IPMA Level D 級國際專案管理知識體系之管理模式。
本研究透過 IPMA Level D 級專案管理知識，預計研發具有流行意象之整合
性設計、可攜式多功能設計、具環保與防盜設計等特色之青少年自行車。

關鍵詞：專案管理、台灣專案管理學會、國際專案管理知識體系、產品研發

102