How well did the new Sumitomo Electric project ranking method predict performance?

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Abstract:

The development and implementation of a new R&D project scoring method (NS-method) within Sumitomo Electric Industries was introduced in a previous report. This paper evaluates the NS-method's effectiveness by comparing the information generated by application to 146 projects in 1997 with the project achievements in 2000. The test results revealed that the NS-method's evaluation scores were correlated to the performance indicators such as the gross profit and R&D productivity. It also showed that, when projects are classified into three groups (i.e., Top, Middle, Bottom) according to the forecast data generated by the NS-method, the projects in the Top category had higher actual productivity ratios and success rates than those in the Bottom category.

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/1467-9310.00302

Affiliations: R&D Planning Group, Sumitomo Electric Industries, Ltd., Shimaya, Osaka, Japan

Publication date: June 1, 2003

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