The Effect of Product Development on Operational Performance: A Case Research of Ultimate Motors

Abstract

In the competitive automotive industry, effective product development is the key to improving operational performance and maintaining market competitiveness. This research aims to analyze the impact of product development initiatives on operational performance at Ultimate Motors Plc. This research used mixed-methods with data collection through an online survey of 98 employees working in product development, manufacturing, and operations. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results showed that product development initiatives explained 78.3% of the variance in manufacturing costs and production efficiency. Optimization of the assembly line had the most significant impact at 47.7%, followed by product design at 21.6%. However, the lack of employee training hinders the effective use of advanced design tools. While R&D and product innovation have a positive effect, their significance in influencing operational results is still limited. The implications of this research emphasize the importance of assembly line management in improving efficiency, reducing costs, and accelerating production time. It also provides valuable insights for the manufacturing sector in general, even though the research focuses on one company. Further research is recommended to explore additional factors that influence operational performance.