An analysis of portfolio management in new product development: a case study in a truck company
The purpose of this paper is to describe a case study in portfolio management and new product development in an automotive company in Brazil. Empirical data was obtained by a number of sources mostly collected by one of the authors who is part of the company staff. At the time of study, the company had twenty projects in its portfolio, from which two platform and twelve derivative projects were being simultaneously developed. After presenting the context of the study, an analysis of the company portfolio management was carried out. This analysis was based on the literature considering issues such as portfolio performance results, importance of portfolio management, its characteristics, methods employed, and criteria to rank projects against each other. Results show that some of the issues related to portfolio management are well aligned with the literature and just a few of them are not. The paper concludes that portfolio management methodology is essential to the future of the Brazilian business unit although there are still some opportunities for improvement.